1.Short title; table of contents
(a)This Act may be cited as the
Dodd-Frank Wall Street Reform and
Consumer Protection Act
.
(b)The table of contents for this Act is as
follows:
Sec. 1. Short title;
table of contents.
Sec. 2.
Definitions.
Sec. 3.
Severability.
Sec. 4. Effective
date.
Sec. 5. Budgetary
effects.
Sec. 6. Antitrust savings
clause.
TITLE I—Financial Stability
Sec. 101. Short title.
Sec. 102. Definitions.
Subtitle A—Financial Stability Oversight
Council
Sec. 111. Financial Stability Oversight
Council established.
Sec. 112. Council authority.
Sec. 113. Authority to require supervision
and regulation of certain nonbank financial companies.
Sec. 114. Registration of nonbank
financial companies supervised by the Board of Governors.
Sec. 115. Enhanced supervision and
prudential standards for nonbank financial companies supervised by the Board of
Governors and certain bank holding companies.
Sec. 116. Reports.
Sec. 117. Treatment of certain companies
that cease to be bank holding companies.
Sec. 118. Council funding.
Sec. 119. Resolution of supervisory
jurisdictional disputes among member agencies.
Sec. 120. Additional standards applicable
to activities or practices for financial stability purposes.
Sec. 121. Mitigation of risks to financial
stability.
Sec. 122. GAO Audit of
Council.
Sec. 123. Study of the effects
of size and complexity of financial institutions on capital market efficiency
and economic growth.
Subtitle B—Office of Financial
Research
Sec. 151. Definitions.
Sec. 152. Office of Financial Research
established.
Sec. 153. Purpose and duties of the
Office.
Sec. 154. Organizational structure;
responsibilities of primary programmatic units.
Sec. 155. Funding.
Sec. 156. Transition
oversight.
Subtitle C—Additional Board of Governors
authority for certain nonbank financial companies and bank holding
companies
Sec. 161. Reports by and examinations of
nonbank financial companies by the Board of Governors.
Sec. 162. Enforcement.
Sec. 163. Acquisitions.
Sec. 164. Prohibition against management
interlocks between certain financial companies.
Sec. 165. Enhanced supervision and
prudential standards for nonbank financial companies supervised by the Board of
Governors and certain bank holding companies.
Sec. 166. Early remediation
requirements.
Sec. 167. Affiliations.
Sec. 168. Regulations.
Sec. 169. Avoiding
duplication.
Sec. 170. Safe harbor.
Sec. 171. Leverage and risk-based capital
requirements.
Sec. 172. Examination and enforcement
actions for insurance and orderly liquidation purposes.
Sec. 173. Access to United States
financial market by foreign institutions.
Sec. 174. Studies and reports on holding
company capital requirements.
Sec. 175. International policy
coordination.
Sec. 176. Rule of
construction.
TITLE II—Orderly liquidation
authority
Sec. 201. Definitions.
Sec. 202. Judicial review.
Sec. 203. Systemic risk
determination.
Sec. 204. Orderly liquidation of covered
financial companies.
Sec. 205. Orderly liquidation of covered
brokers and dealers.
Sec. 206. Mandatory terms and conditions
for all orderly liquidation actions.
Sec. 207. Directors not liable for
acquiescing in appointment of receiver.
Sec. 208. Dismissal and exclusion of other
actions.
Sec. 209. Rulemaking; non-conflicting
law.
Sec. 210. Powers and duties of the
Corporation.
Sec. 211. Miscellaneous
provisions.
Sec. 212. Prohibition of circumvention and
prevention of conflicts of interest.
Sec. 213. Ban on certain activities by
senior executives and directors.
Sec. 214. Prohibition on taxpayer
funding.
Sec. 215. Study on secured creditor
haircuts.
Sec. 216. Study on bankruptcy
process for financial and nonbank financial institutions
Sec. 217. Study on
international coordination relating to bankruptcy process for nonbank financial
institutions
TITLE III—Transfer of powers to the
Comptroller of the Currency, the Corporation, and the Board of
Governors
Sec. 300. Short title.
Sec. 301. Purposes.
Sec. 302. Definition.
Subtitle A—Transfer of powers and
duties
Sec. 311. Transfer date.
Sec. 312. Powers and duties
transferred.
Sec. 313. Abolishment.
Sec. 314. Amendments to the Revised
Statutes.
Sec. 315. Federal information
policy.
Sec. 316. Savings provisions.
Sec. 317. References in Federal law to
Federal banking agencies.
Sec. 318. Funding.
Sec. 319. Contracting and leasing
authority.
Subtitle B—Transitional
provisions
Sec. 321. Interim use of funds, personnel,
and property of the Office of Thrift Supervision.
Sec. 322. Transfer of
employees.
Sec. 323. Property
transferred.
Sec. 324. Funds transferred.
Sec. 325. Disposition of
affairs.
Sec. 326. Continuation of
services.
Sec. 327. Implementation plan and
reports.
Subtitle C—Federal Deposit Insurance
Corporation
Sec. 331. Deposit insurance
reforms.
Sec. 332. Elimination of procyclical
assessments.
Sec. 333. Enhanced access to information
for deposit insurance purposes.
Sec. 334. Transition reserve ratio
requirements to reflect new assessment base.
Sec. 335. Permanent increase in deposit
and share insurance.
Sec. 336. Management of the Federal
Deposit Insurance Corporation.
Subtitle D—Other matters
Sec. 341. Branching.
Sec. 342. Office of Minority and Women
Inclusion.
Sec. 343. Insurance of transaction
accounts.
Subtitle E—Technical and conforming
amendments
Sec. 351. Effective date.
Sec. 352. Balanced Budget and Emergency
Deficit Control Act of 1985.
Sec. 353. Bank Enterprise Act of
1991.
Sec. 354. Bank Holding Company Act of
1956.
Sec. 355. Bank Holding Company Act
Amendments of 1970.
Sec. 356. Bank Protection Act of
1968.
Sec. 357. Bank Service Company
Act.
Sec. 358. Community Reinvestment Act of
1977.
Sec. 359. Crime Control Act of
1990.
Sec. 360. Depository Institution
Management Interlocks Act.
Sec. 361. Emergency Homeowners' Relief
Act.
Sec. 362. Federal Credit Union
Act.
Sec. 363. Federal Deposit Insurance
Act.
Sec. 364. Federal Home Loan Bank
Act.
Sec. 365. Federal Housing Enterprises
Financial Safety and Soundness Act of 1992.
Sec. 366. Federal Reserve Act.
Sec. 367. Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
Sec. 368. Flood Disaster Protection Act of
1973.
Sec. 369. Home Owners' Loan
Act.
Sec. 370. Housing Act of 1948.
Sec. 371. Housing and Community
Development Act of 1992.
Sec. 372. Housing and Urban-Rural Recovery
Act of 1983.
Sec. 373. National Housing
Act.
Sec. 374. Neighborhood Reinvestment
Corporation Act.
Sec. 375. Public Law 93–100.
Sec. 376. Securities Exchange Act of
1934.
Sec. 377. Title 18, United States
Code.
Sec. 378. Title 31, United States
Code.
TITLE IV—Regulation of advisers to hedge
funds and others
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Elimination of private adviser
exemption; limited exemption for foreign private advisers; limited intrastate
exemption.
Sec. 404. Collection of systemic risk
data; reports; examinations; disclosures.
Sec. 405. Disclosure provision
amendment.
Sec. 406. Clarification of rulemaking
authority.
Sec. 407. Exemption of venture capital
fund advisers.
Sec. 408. Exemption of and record keeping
by private equity fund advisers.
Sec. 409. Family offices.
Sec. 410. State and Federal
responsibilities; asset threshold for Federal registration of investment
advisers.
Sec. 411. Custody of client
assets.
Sec. 412. Adjusting the accredited
investor standard.
Sec. 413. GAO study and report on
accredited investors.
Sec. 414. GAO study on self-regulatory
organization for private funds.
Sec. 415. Commission study and report on
short selling.
Sec. 416. Transition period.
TITLE V—Insurance
Subtitle A—Office of National
Insurance
Sec. 501. Short title.
Sec. 502. Federal Insurance
Office.
Subtitle B—State-Based Insurance
Reform
Sec. 511. Short title.
Sec. 512. Effective date.
PART I—Nonadmitted insurance
Sec. 521. Reporting, payment, and
allocation of premium taxes.
Sec. 522. Regulation of nonadmitted
insurance by insured’s home State.
Sec. 523. Participation in national
producer database.
Sec. 524. Uniform standards for surplus
lines eligibility.
Sec. 525. Streamlined application for
commercial purchasers.
Sec. 526. GAO study of nonadmitted
insurance market.
Sec. 527. Definitions.
PART II—Reinsurance
Sec. 531. Regulation of credit for
reinsurance and reinsurance agreements.
Sec. 532. Regulation of reinsurer
solvency.
Sec. 533. Definitions.
PART III—Rule of construction
Sec. 541. Rule of
construction.
Sec. 542. Severability.
TITLE VI—Improvements to regulation of bank
and savings association holding companies and depository
institutions
Sec. 601. Short title.
Sec. 602. Definition.
Sec. 603. Moratorium and study on
treatment of credit card banks, industrial loan companies, and certain other
companies under the Bank Holding Company Act of 1956.
Sec. 604. Reports and examinations of
holding companies; regulation of functionally regulated
subsidiaries.
Sec. 605. Assuring consistent oversight of
permissible activities of depository institution subsidiaries of holding
companies.
Sec. 606. Requirements for financial
holding companies to remain well capitalized and well managed.
Sec. 607. Standards for interstate
acquisitions.
Sec. 608. Enhancing existing restrictions
on bank transactions with affiliates.
Sec. 609. Eliminating exceptions for
transactions with financial subsidiaries.
Sec. 610. Lending limits applicable to
credit exposure on derivative transactions, repurchase agreements, reverse
repurchase agreements, and securities lending and borrowing
transactions.
Sec. 611. Consistent treatment of
derivative transactions in lending limits.
Sec. 612. Restriction on conversions of
troubled banks.
Sec. 613. De novo branching into
States.
Sec. 614. Lending limits to
insiders.
Sec. 615. Limitations on purchases of
assets from insiders.
Sec. 616. Regulations regarding capital
levels.
Sec. 617. Elimination of elective
investment bank holding company framework.
Sec. 618. Securities holding
companies.
Sec. 619. Prohibitions on proprietary
trading and certain relationships with hedge funds and private equity
funds.
Sec. 620. Study of bank investment
activities.
Sec. 621. Conflicts of
interest.
Sec. 622. Concentration limits on large
financial firms.
Sec. 623. Interstate merger
transactions.
Sec. 624. Qualified thrift
lenders.
Sec. 625. Treatment of dividends by
certain mutual holding companies.
Sec. 626. Intermediate holding
companies.
Sec. 627. Interest-bearing transaction
accounts authorized.
Sec. 628. Credit card bank small business
lending.
TITLE VII—Wall Street Transparency and
Accountability
Sec. 701. Short title.
Subtitle A—Regulation of Over-the-Counter
Swaps Markets
PART I—Regulatory authority
Sec. 711. Definitions.
Sec. 712. Review of regulatory
authority.
Sec. 713. Portfolio margining conforming
changes.
Sec. 714. Abusive swaps.
Sec. 715. Authority to prohibit
participation in swap activities.
Sec. 716. Prohibition against Federal
Government bailouts of swaps entities.
Sec. 717. New product approval CFTC—SEC
process.
Sec. 718. Determining status of novel
derivative products.
Sec. 719. Studies.
Sec. 720. Memorandum.
PART II—Regulation of Swap
Markets
Sec. 721. Definitions.
Sec. 722. Jurisdiction.
Sec. 723. Clearing.
Sec. 724. Swaps; segregation and
bankruptcy treatment.
Sec. 725. Derivatives clearing
organizations.
Sec. 726. Rulemaking on conflict of
interest.
Sec. 727. Public reporting of swap
transaction data.
Sec. 728. Swap data
repositories.
Sec. 729. Reporting and
recordkeeping.
Sec. 730. Large swap trader
reporting.
Sec. 731. Registration and regulation of
swap dealers and major swap participants.
Sec. 732. Conflicts of
interest.
Sec. 733. Swap execution
facilities.
Sec. 734. Derivatives transaction
execution facilities and exempt boards of trade.
Sec. 735. Designated contract
markets.
Sec. 736. Margin.
Sec. 737. Position limits.
Sec. 738. Foreign boards of
trade.
Sec. 739. Legal certainty for
swaps.
Sec. 740. Multilateral clearing
organizations.
Sec. 741. Enforcement.
Sec. 742. Retail commodity
transactions.
Sec. 743. Other authority.
Sec. 744. Restitution
remedies.
Sec. 745. Enhanced compliance by
registered entities.
Sec. 746. Insider trading.
Sec. 747. Antidisruptive practices
authority.
Sec. 748. Commodity whistleblower
incentives and protection.
Sec. 749. Conforming
amendments.
Sec. 750. Study on oversight of carbon
markets.
Sec. 751. Energy and environmental markets
advisory committee.
Sec. 752. International
harmonization.
Sec. 753. Anti-manipulation
authority.
Sec. 754. Effective date.
Subtitle B—Regulation of Security-Based
Swap Markets
Sec. 761. Definitions under the Securities
Exchange Act of 1934.
Sec. 762. Repeal of prohibition on
regulation of security-based swap agreements.
Sec. 763. Amendments to the Securities
Exchange Act of 1934.
Sec. 764. Registration and regulation of
security-based swap dealers and major security-based swap
participants.
Sec. 765. Rulemaking on conflict of
interest.
Sec. 766. Reporting and
recordkeeping.
Sec. 767. State gaming and bucket shop
laws.
Sec. 768. Amendments to the Securities Act
of 1933; treatment of security-based swaps.
Sec. 769. Definitions under the Investment
Company Act of 1940.
Sec. 770. Definitions under the Investment
Advisers Act of 1940.
Sec. 771. Other authority.
Sec. 772. Jurisdiction.
Sec. 773. Civil penalties.
Sec. 774. Effective date.
TITLE VIII—Payment, clearing, and settlement
supervision
Sec. 801. Short title.
Sec. 802. Findings and
purposes.
Sec. 803. Definitions.
Sec. 804. Designation of systemic
importance.
Sec. 805. Standards for systemically
important financial market utilities and payment, clearing, or settlement
activities.
Sec. 806. Operations of designated
financial market utilities.
Sec. 807. Examination of and enforcement
actions against designated financial market utilities.
Sec. 808. Examination of and enforcement
actions against financial institutions subject to standards for designated
activities.
Sec. 809. Requests for information,
reports, or records.
Sec. 810. Rulemaking.
Sec. 811. Other authority.
Sec. 812. Consultation.
Sec. 813. Common framework for designated
clearing entity risk management.
Sec. 814. Effective date.
Title IX—Investor protections and
improvements to the regulation of securities
Sec. 901. Short title.
Subtitle A—Increasing investor
protection
Sec. 911. Investor Advisory Committee
established.
Sec. 912. Clarification of authority of
the Commission to engage in investor testing.
Sec. 913. Study and rulemaking regarding
obligations of brokers, dealers, and investment advisers.
Sec. 914. Study on enhancing investment
adviser examinations.
Sec. 915. Office of the Investor
Advocate.
Sec. 916. Streamlining of filing
procedures for self-regulatory organizations.
Sec. 917. Study regarding financial
literacy among investors.
Sec. 918. Study regarding mutual fund
advertising.
Sec. 919. Clarification of Commission
authority to require investor disclosures before purchase of investment
products and services.
Sec. 919A. Study on conflicts of
interest.
Sec. 919B. Study on improved investor
access to information on investment advisers and broker-dealers.
Sec. 919C. Study on financial planners and
the use of financial designations.
Sec. 919D. Ombudsman.
Subtitle B—Increasing regulatory
enforcement and remedies
Sec. 921. Authority to restrict mandatory
pre-dispute arbitration.
Sec. 922. Whistleblower
protection.
Sec. 923. Conforming amendments for
whistleblower protection.
Sec. 924. Implementation and transition
provisions for whistleblower protection.
Sec. 925. Collateral bars.
Sec. 926. Disqualifying felons and other
bad actors
from Regulation D offerings.
Sec. 927. Equal treatment of
self-regulatory organization rules.
Sec. 928. Clarification that section 205
of the Investment Advisers Act of 1940 does not apply to State-registered
advisers.
Sec. 929. Unlawful margin
lending.
Sec. 929A. Protection for employees of
subsidiaries and affiliates of publicly traded companies.
Sec. 929B. Fair Fund
amendments.
Sec. 929C. Increasing the borrowing limit
on Treasury loans.
Sec. 929D. Lost and stolen
securities.
Sec. 929E. Nationwide service of
subpoenas.
Sec. 929F. Formerly associated
persons.
Sec. 929G. Streamlined hiring authority
for market specialists.
Sec. 929H. SIPC Reforms.
Sec. 929I. Protecting confidentiality of
materials submitted to the Commission.
Sec. 929J. Expansion of audit information
to be produced and exchanged.
Sec. 929K. Sharing privileged information
with other authorities.
Sec. 929L. Enhanced application of
antifraud provisions.
Sec. 929M. Aiding and abetting authority
under the Securities Act and the Investment Company Act.
Sec. 929N. Authority to impose penalties
for aiding and abetting violations of the Investment Advisers Act.
Sec. 929O. Aiding and abetting standard of
knowledge satisfied by recklessness.
Sec. 929P. Strengthening enforcement by
the Commission.
Sec. 929Q. Revision to recordkeeping
rule.
Sec. 929R. Beneficial ownership and
short-swing profit reporting.
Sec. 929S. Fingerprinting.
Sec. 929T. Equal treatment of
self-regulatory organization rules.
Sec. 929U. Deadline for completing
examinations, inspections and enforcement actions.
Sec. 929V. Security Investor Protection
Act amendments.
Sec. 929W. Notice to missing security
holders.
Sec. 929X. Short sale reforms.
Sec. 929Y. Study on extraterritorial
private rights of action.
Sec. 929Z. GAO study on securities
litigation.
Subtitle C—Improvements to the Regulation
of Credit Rating Agencies
Sec. 931. Findings.
Sec. 932. Enhanced regulation,
accountability, and transparency of nationally recognized statistical rating
organizations.
Sec. 933. State of mind in private
actions.
Sec. 934. Referring tips to law
enforcement or regulatory authorities.
Sec. 935. Consideration of information
from sources other than the issuer in rating decisions.
Sec. 936. Qualification standards for
credit rating analysts.
Sec. 937. Timing of
regulations.
Sec. 938. Universal ratings
symbols.
Sec. 939. Removal of statutory references
to credit ratings.
Sec. 939A. Review of reliance on
ratings.
Sec. 939B. Elimination of exemption from
fair disclosure rule.
Sec. 939C. Securities and Exchange
Commission study on strengthening credit rating agency
independence.
Sec. 939D. Government Accountability
Office study on alternative business models.
Sec. 939E. Government Accountability
Office study on the creation of an independent professional analyst
organization.
Sec. 939F. Study and rulemaking on
assigned credit ratings.
Sec. 939G. Effect of Rule
436(g).
Sec. 939H. Sense of Congress.
Subtitle D—Improvements to the
Asset-Backed Securitization Process
Sec. 941. Regulation of credit risk
retention.
Sec. 942. Disclosures and reporting for
asset-backed securities.
Sec. 943. Representations and warranties
in asset-backed offerings.
Sec. 944. Exempted transactions under the
Securities Act of 1933.
Sec. 945. Due diligence analysis and
disclosure in asset-backed securities issues.
Sec. 946. Study on the macroeconomic
effects of risk retention requirements.
Subtitle E—Accountability and Executive
Compensation
Sec. 951. Shareholder vote on executive
compensation disclosures.
Sec. 952. Compensation committee
independence.
Sec. 953. Executive compensation
disclosures.
Sec. 954. Recovery of erroneously awarded
compensation.
Sec. 955. Disclosure regarding employee
and director hedging.
Sec. 956. Enhanced compensation structure
reporting.
Sec. 957. Voting by brokers.
Subtitle F—Improvements to the Management
of the Securities and Exchange Commission
Sec. 961. Report and certification of
internal supervisory controls.
Sec. 962. Triennial report on personnel
management.
Sec. 963. Annual financial controls
audit.
Sec. 964. Report on oversight of national
securities associations.
Sec. 965. Compliance
examiners.
Sec. 966. Suggestion program for employees
of the Commission.
Sec. 967. Commission organizational study
and reform.
Sec. 968. Study on SEC revolving
door.
Subtitle G—Strengthening Corporate
Governance
Sec. 971. Proxy access.
Sec. 972. Disclosures regarding chairman
and CEO structures.
Subtitle H—Municipal
Securities
Sec. 975. Regulation of municipal
securities and changes to the board of the MSRB.
Sec. 976. Government Accountability Office
study of increased disclosure to investors.
Sec. 977. Government Accountability Office
study on the municipal securities markets.
Sec. 978. Funding for Governmental
Accounting Standards Board.
Sec. 979. Commission Office of Municipal
Securities.
Subtitle I—Public Company Accounting
Oversight Board, portfolio margining, and other matters
Sec. 981. Authority to share certain
information with foreign authorities.
Sec. 982. Oversight of brokers and
dealers.
Sec. 983. Portfolio margining.
Sec. 984. Loan or borrowing of
securities.
Sec. 985. Technical corrections to Federal
securities laws.
Sec. 986. Conforming amendments relating
to repeal of the Public Utility Holding Company Act of 1935.
Sec. 987. Amendment to definition of
material loss and nonmaterial losses to the Deposit Insurance Fund for purposes
of Inspector General reviews.
Sec. 988. Amendment to definition of
material loss and nonmaterial losses to the National Credit Union Share
Insurance Fund for purposes of Inspector General reviews.
Sec. 989. Government Accountability Office
study on proprietary trading.
Sec. 989A. Senior investor
protections.
Sec. 989B. Designated Federal entity
inspectors general independence.
Sec. 989C. Strengthening Inspector General
accountability.
Sec. 989D. Removal of Inspectors General
of designated Federal entities.
Sec. 989E. Additional oversight of
financial regulatory system.
Sec. 989F. GAO study of person to person
lending.
Sec. 989G. Exemption for nonaccelerated
filers.
Sec. 989H. Corrective responses by heads
of certain establishments to deficiencies identified by Inspectors
General.
Sec. 989I. GAO study regarding exemption
for smaller issuers.
Sec. 989J. Further promoting the adoption
of the NAIC Model Regulations that enhance protection of seniors and other
consumers.
Subtitle J—Securities and Exchange
Commission Match Funding
Sec. 991. Securities and Exchange
Commission match funding.
TITLE X—Bureau of Consumer Financial
Protection
Sec. 1001. Short title.
Sec. 1002. Definitions.
Subtitle A—Bureau of Consumer Financial
Protection
Sec. 1011. Establishment of the Bureau of
Consumer Financial Protection.
Sec. 1012. Executive and administrative
powers.
Sec. 1013. Administration.
Sec. 1014. Consumer Advisory
Board.
Sec. 1015. Coordination.
Sec. 1016. Appearances before and reports
to Congress.
Sec. 1017. Funding; penalties and
fines.
Sec. 1018. Effective date.
Subtitle B—General Powers of the
Bureau
Sec. 1021. Purpose, objectives, and
functions.
Sec. 1022. Rulemaking
authority.
Sec. 1023. Review of Bureau
regulations.
Sec. 1024. Supervision of nondepository
covered persons.
Sec. 1025. Supervision of very large
banks, savings associations, and credit unions.
Sec. 1026. Other banks, savings
associations, and credit unions.
Sec. 1027. Limitations on authorities of
the Bureau; preservation of authorities.
Sec. 1028. Authority to restrict mandatory
pre-dispute arbitration.
Sec. 1029. Exclusion for auto
dealers.
Sec. 1029A. Effective date.
Subtitle C—Specific Bureau
Authorities
Sec. 1031. Prohibiting unfair, deceptive,
or abusive acts or practices.
Sec. 1032. Disclosures.
Sec. 1033. Consumer rights to access
information.
Sec. 1034. Response to consumer complaints
and inquiries.
Sec. 1035. Private education loan
ombudsman.
Sec. 1036. Prohibited acts.
Sec. 1037. Effective date.
Subtitle D—Preservation of State
law
Sec. 1041. Relation to State
law.
Sec. 1042. Preservation of enforcement
powers of States.
Sec. 1043. Preservation of existing
contracts.
Sec. 1044. State law preemption standards
for national banks and subsidiaries clarified.
Sec. 1045. Clarification of law applicable
to nondepository institution subsidiaries.
Sec. 1046. State law preemption standards
for Federal savings associations and subsidiaries clarified.
Sec. 1047. Visitorial standards for
national banks and savings associations.
Sec. 1048. Effective date.
Subtitle E—Enforcement Powers
Sec. 1051. Definitions.
Sec. 1052. Investigations and
administrative discovery.
Sec. 1053. Hearings and adjudication
proceedings.
Sec. 1054. Litigation
authority.
Sec. 1055. Relief available.
Sec. 1056. Referrals for criminal
proceedings.
Sec. 1057. Employee
protection.
Sec. 1058. Effective date.
Subtitle F—Transfer of Functions and
Personnel; Transitional Provisions
Sec. 1061. Transfer of consumer financial
protection functions.
Sec. 1062. Designated transfer
date.
Sec. 1063. Savings provisions.
Sec. 1064. Transfer of certain
personnel.
Sec. 1065. Incidental
transfers.
Sec. 1066. Interim authority of the
Secretary.
Sec. 1067. Transition
oversight.
Subtitle G—Regulatory
Improvements
Sec. 1071. Small business data
collection.
Sec. 1072. Assistance for economically
vulnerable individuals and families.
Sec. 1073. Remittance
transfers.
Sec. 1074. Department of the Treasury
study on ending the conservatorship of Fannie Mae, Freddie Mac, and reforming
the housing finance system.
Sec. 1075. Reasonable fees and rules for
payment card transactions.
Sec. 1076. Reverse mortgage study and
regulations.
Sec. 1077. Report on private education
loans and private educational lenders.
Sec. 1078. Study and report on credit
scores.
Sec. 1079. Review, report, and program
with respect to exchange facilitators.
Sec. 1079A. Financial fraud
provisions.
Subtitle H—Conforming
Amendments
Sec. 1081. Amendments to the Inspector
General Act.
Sec. 1082. Amendments to the Privacy Act
of 1974.
Sec. 1083. Amendments to the Alternative
Mortgage Transaction Parity Act of 1982.
Sec. 1084. Amendments to the Electronic
Fund Transfer Act.
Sec. 1085. Amendments to the Equal Credit
Opportunity Act.
Sec. 1086. Amendments to the Expedited
Funds Availability Act.
Sec. 1087. Amendments to the Fair Credit
Billing Act.
Sec. 1088. Amendments to the Fair Credit
Reporting Act and the Fair and Accurate Credit Transactions Act of
2003.
Sec. 1089. Amendments to the Fair Debt
Collection Practices Act.
Sec. 1090. Amendments to the Federal
Deposit Insurance Act.
Sec. 1091. Amendment to Federal Financial
Institutions Examination Council Act of 1978.
Sec. 1092. Amendments to the Federal Trade
Commission Act.
Sec. 1093. Amendments to the
Gramm-Leach-Bliley Act.
Sec. 1094. Amendments to the Home Mortgage
Disclosure Act of 1975.
Sec. 1095. Amendments to the Homeowners
Protection Act of 1998.
Sec. 1096. Amendments to the Home
Ownership and Equity Protection Act of 1994.
Sec. 1097. Amendments to the Omnibus
Appropriations Act, 2009.
Sec. 1098. Amendments to the Real Estate
Settlement Procedures Act of 1974.
Sec. 1098A. Amendments to the Interstate
Land Sales Full Disclosure Act.
Sec. 1099. Amendments to the Right to
Financial Privacy Act of 1978.
Sec. 1100. Amendments to the Secure and
Fair Enforcement for Mortgage Licensing Act of 2008.
Sec. 1100A. Amendments to the Truth in
Lending Act.
Sec. 1100B. Amendments to the Truth in
Savings Act.
Sec. 1100C. Amendments to the
Telemarketing and Consumer Fraud and Abuse Prevention Act.
Sec. 1100D. Amendments to the Paperwork
Reduction Act.
Sec. 1100E. Adjustments for inflation in
the Truth in Lending Act.
Sec. 1100F. Use of consumer
reports.
Sec. 1100G. Small business fairness and
regulatory transparency.
Sec. 1100H. Effective date.
TITLE XI—Federal Reserve System
provisions
Sec. 1101. Federal Reserve Act amendments
on emergency lending authority.
Sec. 1102. Reviews of special Federal
reserve credit facilities.
Sec. 1103. Public access to
information.
Sec. 1104. Liquidity event
determination.
Sec. 1105. Emergency financial
stabilization.
Sec. 1106. Additional related
amendments.
Sec. 1107. Federal Reserve Act amendments
on Federal reserve bank governance.
Sec. 1108. Federal Reserve Act amendments
on supervision and regulation policy.
Sec. 1109. GAO audit of the Federal
Reserve facilities; publication of Board actions.
TITLE XII—Improving access to mainstream
financial institutions
Sec. 1201. Short title.
Sec. 1202. Purpose.
Sec. 1203. Definitions.
Sec. 1204. Expanded access to mainstream
financial institutions.
Sec. 1205. Low-cost alternatives to payday
loans.
Sec. 1206. Grants to establish loan-loss
reserve funds.
Sec. 1207. Procedural
provisions.
Sec. 1208. Authorization of
appropriations.
Sec. 1209. Regulations.
Sec. 1210. Evaluation and reports to
Congress.
TITLE XIII—Pay It Back Act
Sec. 1301. Short title.
Sec. 1302. Amendment to reduce TARP
authorization.
Sec. 1303. Report.
Sec. 1304. Amendments to Housing and
Economic Recovery Act of 2008.
Sec. 1305. Federal Housing Finance Agency
report.
Sec. 1306. Repayment of unobligated ARRA
funds.
TITLE XIV—Mortgage Reform and Anti-Predatory
Lending Act
Sec. 1400. Short title; designation as
enumerated consumer law.
Subtitle A—Residential Mortgage Loan
Origination Standards
Sec. 1401. Definitions.
Sec. 1402. Residential mortgage loan
origination.
Sec. 1403. Prohibition on steering
incentives.
Sec. 1404. Liability.
Sec. 1405. Regulations.
Sec. 1406. Study of shared appreciation
mortgages.
Subtitle B—Minimum Standards For
Mortgages
Sec. 1411. Ability to repay.
Sec. 1412. Safe harbor and rebuttable
presumption.
Sec. 1413. Defense to
foreclosure.
Sec. 1414. Additional standards and
requirements.
Sec. 1415. Rule of
construction.
Sec. 1416. Amendments to civil liability
provisions.
Sec. 1417. Lender rights in the context of
borrower deception.
Sec. 1418. Six-month notice required
before reset of hybrid adjustable rate mortgages.
Sec. 1419. Required
disclosures.
Sec. 1420. Disclosures required in monthly
statements for residential mortgage loans.
Sec. 1421. Report by the GAO.
Sec. 1422. State attorney general
enforcement authority.
Subtitle C—High-Cost
Mortgages
Sec. 1431. Definitions relating to
high-cost mortgages.
Sec. 1432. Amendments to existing
requirements for certain mortgages.
Sec. 1433. Additional requirements for
certain mortgages.
Subtitle D—Office of Housing
Counseling
Sec. 1441. Short title.
Sec. 1442. Establishment of Office of
Housing Counseling.
Sec. 1443. Counseling
procedures.
Sec. 1444. Grants for housing counseling
assistance.
Sec. 1445. Requirements to use
HUD-certified counselors under HUD programs.
Sec. 1446. Study of defaults and
foreclosures.
Sec. 1447. Default and foreclosure
database.
Sec. 1448. Definitions for
counseling-related programs.
Sec. 1449. Accountability and transparency
for grant recipients.
Sec. 1450. Updating and simplification of
mortgage information booklet.
Sec. 1451. Home inspection
counseling.
Sec. 1452. Warnings to homeowners of
foreclosure rescue scams.
Subtitle E—Mortgage Servicing
Sec. 1461. Escrow and impound accounts
relating to certain consumer credit transactions.
Sec. 1462. Disclosure notice required for
consumers who waive escrow services.
Sec. 1463. Real Estate Settlement
Procedures Act of 1974 amendments.
Sec. 1464. Truth in Lending Act
amendments.
Sec. 1465. Escrows included in repayment
analysis.
Subtitle F—Appraisal
Activities
Sec. 1471. Property appraisal
requirements.
Sec. 1472. Appraisal independence
requirements.
Sec. 1473. Amendments relating to
Appraisal Subcommittee of FFIEC, Appraiser Independence Monitoring, Approved
Appraiser Education, Appraisal Management Companies, Appraiser Complaint
Hotline, Automated Valuation Models, and Broker Price Opinions.
Sec. 1474. Equal Credit Opportunity Act
amendment.
Sec. 1475. Real Estate Settlement
Procedures Act of 1974 amendment relating to certain appraisal
fees.
Sec. 1476. GAO study on the effectiveness
and impact of various appraisal methods, valuation models and distributions
channels, and on the Home Valuation Code of conduct and the Appraisal
Subcommittee.
Subtitle G—Mortgage resolution and
modification
Sec. 1481. Multifamily mortgage resolution
program.
Sec. 1482. Home Affordable Modification
Program guidelines.
Sec. 1483. Public availability of
information of Making Home Affordable Program.
Sec. 1484. Protecting tenants at
foreclosure extension and clarification.
Subtitle H—Miscellaneous
provisions
Sec. 1491. Sense of Congress regarding the
importance of government-sponsored enterprises reform to enhance the
protection, limitation, and regulation of the terms of residential mortgage
credit.
Sec. 1492. GAO study report on government
efforts to combat mortgage foreclosure rescue scams and loan modification
fraud.
Sec. 1493. Reporting of mortgage data by
State.
Sec. 1494. Study of effect of drywall
presence on foreclosures.
Sec. 1495. Definition.
Sec. 1496. Emergency mortgage
relief.
Sec. 1497. Additional assistance for
Neighborhood Stabilization Program.
Sec. 1498. Legal assistance for
foreclosure-related issues.
TITLE XV—Miscellaneous
Provisions
Sec. 1501. Restrictions on use of United
States funds for foreign governments; protection of American
taxpayers.
Sec. 1502. Conflict minerals.
Sec. 1503. Reporting requirements
regarding coal or other mine safety.
Sec. 1504. Disclosure of payments by
resource extraction issuers.
Sec. 1505. Study by the Comptroller
General.
Sec. 1506. Study on core deposits and
brokered deposits.
TITLE XVI—Section 1256 contracts
Sec. 1601. Certain swaps, etc., not
treated as section 1256 contracts.
2.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)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
agencyOn 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)The term Board of Governors
means the Board of Governors of the Federal Reserve System.
(4)The term Bureau means the
Bureau of Consumer Financial Protection established under title X.
(5)The term Commission means the
Securities and Exchange Commission, except in the context of the Commodity
Futures Trading Commission.
(6)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)The term Corporation means the
Federal Deposit Insurance Corporation.
(8)The term Council
means the
Financial Stability Oversight Council established under title I.
(9)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)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
subsidiaryThe 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
agencyThe 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)The term prudential standards
means enhanced supervision and regulatory standards developed by the Board of
Governors under section 165.
(14)The term Secretary means the
Secretary of the Treasury.
(15)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)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)The term transfer date
means
the date established under section 311.
(18)Other incorporated definitions
(A)Federal Deposit insurance actThe 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)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)).
3.If any provision of this Act, an amendment
made by this Act, or the application of such provision or amendment to any
person or circumstance is held to be unconstitutional, the remainder of this
Act, the amendments made by this Act, and the application of the provisions of
such to any person or circumstance shall not be affected thereby.
4.Except as otherwise
specifically provided in this Act or the amendments made by this Act, this Act
and such amendments shall take effect 1 day after the date of enactment of this
Act.
5.The budgetary effects
of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act
of 2010, shall be determined by reference to the latest statement titled
Budgetary Effects of PAYGO Legislation
for this Act, jointly
submitted for printing in the Congressional Record by the Chairmen of the House
and Senate Budget Committees, provided that such statement has been submitted
prior to the vote on passage in the House acting first on this conference
report or amendment between the Houses.
6.Nothing in this Act, or
any amendment made by this Act, shall be construed to modify, impair, or
supersede the operation of any of the antitrust laws, unless otherwise
specified. For purposes of this section, the term antitrust laws
has the same meaning as in subsection (a) of the first section of the Clayton
Act, except that such term includes section 5 of the Federal Trade Commission
Act, to the extent that such section 5 applies to unfair methods of
competition.
<enum>I</enum><header>Financial
Stability</header>
<section id="HE660FD9A71454E2DB908A2DC882DD4F0"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Financial Stability Act of 2010</quote>.</text>
</section><section id="HBBEBE0853EED43DD8458590613F401F7"><enum>102.</enum><header>Definitions</header>
<subsection id="HD73980E24D7744568550C646A8E7BAD0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
title, unless the context otherwise requires, the following definitions shall
apply:</text>
<paragraph commented="no" id="HF7304BE0C4F84C6C8F35447DF2A4BD2C"><enum>(1)</enum><header>Bank holding
company</header><text>The term <term>bank holding company</term> has the same
meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.
1841). A foreign bank or company that is treated as a bank holding company for
purposes of the Bank Holding Company Act of 1956, pursuant to section 8(a) of
the International Banking Act of 1978 (12 U.S.C. 3106(a)), shall be treated as
a bank holding company for purposes of this title.</text>
</paragraph><paragraph commented="no" id="H7511EB7D23A149F4A7BB08B9D20D9D73"><enum>(2)</enum><header>Chairperson</header><text>The
term <term>Chairperson</term> means the Chairperson of the Council.</text>
</paragraph><paragraph commented="no" id="H7D0F523A846043D6AEE4BA9AE7D4F241"><enum>(3)</enum><header>Member
agency</header><text>The term <term>member agency</term> means an agency
represented by a voting member of the Council.</text>
</paragraph><paragraph commented="no" id="H9E0EF215F917450186E5B19D8220AE9D"><enum>(4)</enum><header>Nonbank
financial company definitions</header>
<subparagraph id="H02532CD10D964A5EBD6447D764903A73"><enum>(A)</enum><header>Foreign nonbank
financial company</header><text>The term <term>foreign nonbank financial
company</term> means a company (other than a company that is, or is treated in
the United States as, a bank holding company) that is—</text>
<clause id="HADACF81AAAF04292AA8ACD38638BBBB8"><enum>(i)</enum><text>incorporated or
organized in a country other than the United States; and</text>
</clause><clause id="H9167C9D8E79248D9B531C923F956FF11"><enum>(ii)</enum><text>predominantly
engaged in, including through a branch in the United States, financial
activities, as defined in paragraph (6).</text>
</clause></subparagraph><subparagraph id="H7DDF97AE2B8B48DAB26C37BFC9B6E598"><enum>(B)</enum><header>U.S. nonbank
financial company</header><text>The term <term>U.S. nonbank financial
company</term> means a company (other than a bank holding company, a Farm
Credit System institution chartered and subject to the provisions of the Farm
Credit Act of 1971 (12 U.S.C. 2001 et seq.), or a national securities exchange
(or parent thereof), clearing agency (or parent thereof, unless the parent is a
bank holding company), security-based swap execution facility, or
security-based swap data repository registered with the Commission, or a board
of trade designated as a contract market (or parent thereof), or a derivatives
clearing organization (or parent thereof, unless the parent is a bank holding
company), swap execution facility or a swap data repository registered with the
Commodity Futures Trading Commission), that is—</text>
<clause id="H9009342D4A444FB2BC48FA09AEA9BFB2"><enum>(i)</enum><text>incorporated or
organized under the laws of the United States or any State; and</text>
</clause><clause id="H75C5F24C00CD4FD9990EFDC05F310D9A"><enum>(ii)</enum><text>predominantly
engaged in financial activities, as defined in paragraph (6).</text>
</clause></subparagraph><subparagraph commented="no" id="HD7D28CDBED34466980169B1DAFDD1FCE"><enum>(C)</enum><header>Nonbank
Financial company</header><text>The term <term>nonbank financial company</term>
means a U.S. nonbank financial company and a foreign nonbank financial
company.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2B2AB99AD1CE4DEA8FE0FD6DBFD6A420"><enum>(D)</enum><header display-inline="yes-display-inline">Nonbank financial company supervised by the
Board of Governors</header><text display-inline="yes-display-inline">The term
<term>nonbank financial company supervised by the Board of Governors</term>
means a nonbank financial company that the Council has determined under section
113 shall be supervised by the Board of Governors.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA56E12864A374CF89584468C86A92764"><enum>(5)</enum><header>Office of
Financial Research</header><text>The term <quote>Office of Financial
Research</quote> means the office established under section 152.</text>
</paragraph><paragraph id="HCEFD7B1F3DF048528FD0DA5B215B4851"><enum>(6)</enum><header>Predominantly
engaged</header><text>A company is <term>predominantly engaged in financial
activities</term> if—</text>
<subparagraph id="H1C2E05319AC94A8689ED7052824F0771"><enum>(A)</enum><text>the annual gross
revenues derived by the company and all of its subsidiaries from activities
that are financial in nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956) and, if applicable, from the ownership or control of one
or more insured depository institutions, represents 85 percent or more of the
consolidated annual gross revenues of the company; or</text>
</subparagraph><subparagraph id="H888CAD07E39D47EC8AC349BF44ABAA5D"><enum>(B)</enum><text>the consolidated
assets of the company and all of its subsidiaries related to activities that
are financial in nature (as defined in section 4(k) of the Bank Holding Company
Act of 1956) and, if applicable, related to the ownership or control of one or
more insured depository institutions, represents 85 percent or more of the
consolidated assets of the company.</text>
</subparagraph></paragraph><paragraph commented="no" id="HF223E16280F04950B9781BF76A524E23"><enum>(7)</enum><header>Significant
institutions</header><text>The terms <term>significant nonbank financial
company</term> and <term>significant bank holding company</term> have the
meanings given those terms by rule of the Board of Governors, but in no
instance shall the term <term>significant nonbank financial company</term>
include those entities that are excluded under paragraph (4)(B).</text>
</paragraph></subsection><subsection id="H2BBF18BA9704436EAE7DBB454448201E"><enum>(b)</enum><header>Definitional
criteria</header><text display-inline="yes-display-inline">The Board of
Governors shall establish, by regulation, the requirements for determining if a
company is predominantly engaged in financial activities, as defined in
subsection (a)(6).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF8C2C6D4BD264AC1A16BDFDBD860CAB8"><enum>(c)</enum><header display-inline="yes-display-inline">Foreign nonbank financial
companies</header><text display-inline="yes-display-inline">For purposes of the
application of subtitles A and C (other than section 113(b)) with respect to a
foreign nonbank financial company, references in this title to
<quote>company</quote> or <quote>subsidiary</quote> include only the United
States activities and subsidiaries of such foreign company, except as otherwise
provided.</text>
</subsection></section><subtitle id="H3EA94444F7284D8EB9EC4D863F4012B4"><enum>A</enum><header>Financial
Stability Oversight Council</header>
<section id="HA4D41633EFEF44718CB9F30A31879E96"><enum>111.</enum><header>Financial
Stability Oversight Council established</header>
<subsection id="HDD49BFDB79B84B8BBAC789C943763DD8"><enum>(a)</enum><header>Establishment</header><text>Effective
on the date of enactment of this Act, there is established the Financial
Stability Oversight Council.</text>
</subsection><subsection id="H55D36611344A423F8FC04BB42E4BBE2E"><enum>(b)</enum><header>Membership</header><text>The
Council shall consist of the following members:</text>
<paragraph id="H97AACCDFB22E4779897E244A20F21B04"><enum>(1)</enum><header>Voting
members</header><text>The voting members, who shall each have 1 vote on the
Council shall be—</text>
<subparagraph id="H744C179826FC4929B54131FA9126BE09"><enum>(A)</enum><text>the Secretary of
the Treasury, who shall serve as Chairperson of the Council;</text>
</subparagraph><subparagraph id="H4A5933FC699C499391F8F51FC71F6D7B"><enum>(B)</enum><text>the Chairman of
the Board of Governors;</text>
</subparagraph><subparagraph id="HD096EBAE51774FD6AE0BA9A355C2BF8B"><enum>(C)</enum><text>the Comptroller of
the Currency;</text>
</subparagraph><subparagraph commented="no" id="HFC67EEFBF96948ED8F41B2C3CC3024FD"><enum>(D)</enum><text>the Director of
the Bureau;</text>
</subparagraph><subparagraph id="H892FF8B00FCE4C21B420F0D13D6E17CE"><enum>(E)</enum><text>the Chairman of
the Commission;</text>
</subparagraph><subparagraph id="H8B84D4D2B2434BD39D12D8E599429643"><enum>(F)</enum><text>the Chairperson of
the Corporation;</text>
</subparagraph><subparagraph id="HE0BE492E80464CE6BFB6C7FE18CF0AB0"><enum>(G)</enum><text>the Chairperson of
the Commodity Futures Trading Commission;</text>
</subparagraph><subparagraph id="H42BE4BA3813F4A2C848A4958F28A1DA5"><enum>(H)</enum><text>the Director of
the Federal Housing Finance Agency;</text>
</subparagraph><subparagraph id="H6BBA638009734F9199E5EBBBDE0495EA"><enum>(I)</enum><text>the Chairman of
the National Credit Union Administration Board; and</text>
</subparagraph><subparagraph id="HC2EB9414264E41AAAB1030B5693C1D55"><enum>(J)</enum><text>an independent
member appointed by the President, by and with the advice and consent of the
Senate, having insurance expertise.</text>
</subparagraph></paragraph><paragraph id="H73F108310B314FE2A63CF20CE92F2A4C"><enum>(2)</enum><header>Nonvoting
members</header><text>The nonvoting members, who shall serve in an advisory
capacity as a nonvoting member of the Council, shall be—</text>
<subparagraph id="HEF075CBB2B7148129BC031DA686E9B97"><enum>(A)</enum><text>the Director of
the Office of Financial Research;</text>
</subparagraph><subparagraph id="HC753ADCEFABD43029D995EEE288EE99B"><enum>(B)</enum><text>the Director of
the Federal Insurance Office;</text>
</subparagraph><subparagraph id="H366832C729CF4EEB9CD96A25F111C676"><enum>(C)</enum><text>a State insurance
commissioner, to be designated by a selection process determined by the State
insurance commissioners;</text>
</subparagraph><subparagraph id="HD0801059ACC049F3BDA94E49E0AF8A2E"><enum>(D)</enum><text>a State banking
supervisor, to be designated by a selection process determined by the State
banking supervisors; and</text>
</subparagraph><subparagraph id="H282914A1F71440C4903BAC56DC168E7E"><enum>(E)</enum><text>a State securities
commissioner (or an officer performing like functions), to be designated by a
selection process determined by such State securities commissioners.</text>
</subparagraph></paragraph><paragraph id="H5CE7974F64A845BF9A277D15F1D5FAC8"><enum>(3)</enum><header>Nonvoting member
participation</header><text>The nonvoting members of the Council shall not be
excluded from any of the proceedings, meetings, discussions, or deliberations
of the Council, except that the Chairperson may, upon an affirmative vote of
the member agencies, exclude the nonvoting members from any of the proceedings,
meetings, discussions, or deliberations of the Council when necessary to
safeguard and promote the free exchange of confidential supervisory
information.</text>
</paragraph></subsection><subsection commented="no" id="HFCA1AAFE50B74FB0B72E7B1313775D8D"><enum>(c)</enum><header>Terms;
vacancy</header>
<paragraph commented="no" id="H4CC387682F9F49C79731A2991B774F92"><enum>(1)</enum><header>Terms</header><text>The
independent member of the Council shall serve for a term of 6 years, and each
nonvoting member described in subparagraphs (C), (D), and (E) of subsection
(b)(2) shall serve for a term of 2 years.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H84D76384EC1A4D34AD4B9C0CBAEFFD8D"><enum>(2)</enum><header display-inline="yes-display-inline">Vacancy</header><text>Any vacancy on the
Council shall be filled in the manner in which the original appointment was
made.</text>
</paragraph><paragraph id="HF851653BA79E443B8DB22EF79B389A68"><enum>(3)</enum><header>Acting officials
may serve</header><text>In the event of a vacancy in the office of the head of
a member agency or department, and pending the appointment of a successor, or
during the absence or disability of the head of a member agency or department,
the acting head of the member agency or department shall serve as a member of
the Council in the place of that agency or department head.</text>
</paragraph></subsection><subsection id="H6345F6B5C029413386F6DBF1B13282D2"><enum>(d)</enum><header>Technical and
professional advisory committees</header><text display-inline="yes-display-inline">The Council may appoint such special
advisory, technical, or professional committees as may be useful in carrying
out the functions of the Council, including an advisory committee consisting of
State regulators, and the members of such committees may be members of the
Council, or other persons, or both.</text>
</subsection><subsection commented="no" id="HE9B799A92694481D9815F341542E75BF"><enum>(e)</enum><header>Meetings</header>
<paragraph commented="no" id="HC864B494A6E84E478A2A3CB9EB40B45F"><enum>(1)</enum><header>Timing</header><text display-inline="yes-display-inline">The Council shall meet at the call of the
Chairperson or a majority of the members then serving, but not less frequently
than quarterly.</text>
</paragraph><paragraph id="H545280982E3D4B5CB5B1A214AD79C40F"><enum>(2)</enum><header>Rules for
conducting business</header><text>The Council shall adopt such rules as may be
necessary for the conduct of the business of the Council. Such rules shall be
rules of agency organization, procedure, or practice for purposes of section
553 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="HEDAA587F7F4445E18E3976EB9BD14641"><enum>(f)</enum><header>Voting</header><text>Unless
otherwise specified, the Council shall make all decisions that it is authorized
or required to make by a majority vote of the voting members then
serving.</text>
</subsection><subsection commented="no" id="H2797C551E1164528A8D852BCF102F9AC"><enum>(g)</enum><header>Nonapplicability
of FACA</header><text display-inline="yes-display-inline">The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council, or to any special
advisory, technical, or professional committee appointed by the Council, except
that, if an advisory, technical, or professional committee has one or more
members who are not employees of or affiliated with the United States
Government, the Council shall publish a list of the names of the members of
such committee.</text>
</subsection><subsection commented="no" id="H98824BE6DDC74FEF8BA6CFBE98CE056F"><enum>(h)</enum><header>Assistance from
Federal agencies</header><text display-inline="yes-display-inline">Any
department or agency of the United States may provide to the Council and any
special advisory, technical, or professional committee appointed by the
Council, such services, funds, facilities, staff, and other support services as
the Council may determine advisable.</text>
</subsection><subsection id="HC8C30EC7648A45E18115F7C8E6C20049"><enum>(i)</enum><header>Compensation of
members</header>
<paragraph id="H689101800CE04BAFA7E5D5C755905431"><enum>(1)</enum><header>Federal employee
members</header><text>All members of the Council who are officers or employees
of the United States shall serve without compensation in addition to that
received for their services as officers or employees of the United
States.</text>
</paragraph><paragraph id="HDD7685B9187743349BE8E7D92D90B4F8"><enum>(2)</enum><header>Compensation for
non-Federal member</header><text display-inline="yes-display-inline">Section
5314 of title 5, United States Code, is amended by adding at the end the
following:</text>
<list level="paragraph">
<list-item><quote>Independent Member of the Financial Stability
Oversight Council (1).</quote>.</list-item></list>
</paragraph></subsection><subsection commented="no" id="H9068C29306044FB5BFAFCAF0B590F5D8"><enum>(j)</enum><header>Detail of
Government employees</header><text>Any employee of the Federal Government may
be detailed to the Council without reimbursement, and such detail shall be
without interruption or loss of civil service status or privilege. An employee
of the Federal Government detailed to the Council shall report to and be
subject to oversight by the Council during the assignment to the Council, and
shall be compensated by the department or agency from which the employee was
detailed.</text>
</subsection></section><section id="H8310E89319C147F5A181717D15E36F3C"><enum>112.</enum><header>Council
authority</header>
<subsection commented="no" id="HDD4DDC528C9A4A21B1D749D8411BAB8F"><enum>(a)</enum><header>Purposes and
duties of the Council</header>
<paragraph id="H668ACEF6E5DA48A4A6A2D188D09E2C92"><enum>(1)</enum><header>In
general</header><text>The purposes of the Council are—</text>
<subparagraph id="H13258347DDE24C5AA8AD06358A892183"><enum>(A)</enum><text>to identify risks
to the financial stability of the United States that could arise from the
material financial distress or failure, or ongoing activities, of large,
interconnected bank holding companies or nonbank financial companies, or that
could arise outside the financial services marketplace;</text>
</subparagraph><subparagraph id="HCF688B9E0C53442A9477C3B001F6A805"><enum>(B)</enum><text>to promote market
discipline, by eliminating expectations on the part of shareholders, creditors,
and counterparties of such companies that the Government will shield them from
losses in the event of failure; and</text>
</subparagraph><subparagraph id="HFE851CB60DD94981BD7B2373BC0E4236"><enum>(C)</enum><text>to respond to
emerging threats to the stability of the United States financial system.</text>
</subparagraph></paragraph><paragraph id="H4E254B3654CD447B84A64DB0859C8C42"><enum>(2)</enum><header>Duties</header><text>The
Council shall, in accordance with this title—</text>
<subparagraph id="HCEF952D8CBB04FDB93FAD40184B947A1"><enum>(A)</enum><text>collect
information from member agencies, other Federal and State financial regulatory
agencies, the Federal Insurance Office and, if necessary to assess risks to the
United States financial system, direct the Office of Financial Research to
collect information from bank holding companies and nonbank financial
companies;</text>
</subparagraph><subparagraph commented="no" id="HF7752A1D42C04043AC5FC93D688CCA9F"><enum>(B)</enum><text>provide direction
to, and request data and analyses from, the Office of Financial Research to
support the work of the Council;</text>
</subparagraph><subparagraph id="H32FC44F4DA7942B1ADDDF591696DCCDD"><enum>(C)</enum><text>monitor the
financial services marketplace in order to identify potential threats to the
financial stability of the United States;</text>
</subparagraph><subparagraph id="H7C8A4044AC494FC7BE6934EF650B373E"><enum>(D)</enum><text>to monitor
domestic and international financial regulatory proposals and developments,
including insurance and accounting issues, and to advise Congress and make
recommendations in such areas that will enhance the integrity, efficiency,
competitiveness, and stability of the U.S. financial markets;</text>
</subparagraph><subparagraph id="HA1F5FFBB4BCC446BBD07E04067FCFC08"><enum>(E)</enum><text>facilitate
information sharing and coordination among the member agencies and other
Federal and State agencies regarding domestic financial services policy
development, rulemaking, examinations, reporting requirements, and enforcement
actions;</text>
</subparagraph><subparagraph commented="no" id="H616F3FEB92394F40B6B1EA5C762C1015"><enum>(F)</enum><text>recommend to the
member agencies general supervisory priorities and principles reflecting the
outcome of discussions among the member agencies;</text>
</subparagraph><subparagraph id="H530D2A048CC349D39E971A93B5771754"><enum>(G)</enum><text>identify gaps in
regulation that could pose risks to the financial stability of the United
States;</text>
</subparagraph><subparagraph id="H1631652EC0F248789ECE995AEF0EED4C"><enum>(H)</enum><text>require
supervision by the Board of Governors for nonbank financial companies that may
pose risks to the financial stability of the United States in the event of
their material financial distress or failure, or because of their activities
pursuant to section 113;</text>
</subparagraph><subparagraph id="H0BFEE8262BCE4E25A05D5E3E6DBC0A43"><enum>(I)</enum><text>make
recommendations to the Board of Governors concerning the establishment of
heightened prudential standards for risk-based capital, leverage, liquidity,
contingent capital, resolution plans and credit exposure reports, concentration
limits, enhanced public disclosures, and overall risk management for nonbank
financial companies and large, interconnected bank holding companies supervised
by the Board of Governors;</text>
</subparagraph><subparagraph id="HFBC0EB1A9D1646D6856C9CCF9702EEE4"><enum>(J)</enum><text>identify
systemically important financial market utilities and payment, clearing, and
settlement activities (as that term is defined in title VIII);</text>
</subparagraph><subparagraph id="HB2DC2E79EAA9490698F9CD5EC68DBBB1"><enum>(K)</enum><text>make
recommendations to primary financial regulatory agencies to apply new or
heightened standards and safeguards for financial activities or practices that
could create or increase risks of significant liquidity, credit, or other
problems spreading among bank holding companies, nonbank financial companies,
and United States financial markets;</text>
</subparagraph><subparagraph id="H2B350E11959648E19D3857C31CC13348"><enum>(L)</enum><text>review and, as
appropriate, may submit comments to the Commission and any standard-setting
body with respect to an existing or proposed accounting principle, standard, or
procedure;</text>
</subparagraph><subparagraph id="H94CCF73D193E494792F4C32636DC3077"><enum>(M)</enum><text>provide a forum
for—</text>
<clause id="H3D5A7AC25969425E911538CDF6C37F32"><enum>(i)</enum><text>discussion and
analysis of emerging market developments and financial regulatory issues;
and</text>
</clause><clause id="HF37CBE4612FE4BDBAA7EF3679AEE33E9"><enum>(ii)</enum><text>resolution of
jurisdictional disputes among the members of the Council; and</text>
</clause></subparagraph><subparagraph id="H43A3C47605A842DE9FB8AB3888E08BCA"><enum>(N)</enum><text>annually report to
and testify before Congress on—</text>
<clause id="H4B5FCEF0D6134295B5E0D89D4CCEC70C"><enum>(i)</enum><text>the
activities of the Council;</text>
</clause><clause id="HACC587744D8A480EA79563761AB5E3CB"><enum>(ii)</enum><text>significant
financial market and regulatory developments, including insurance and
accounting regulations and standards, along with an assessment of those
developments on the stability of the financial system;</text>
</clause><clause id="H4A5DE8DA3C9F49F183188AEE3D1B6A4F"><enum>(iii)</enum><text>potential
emerging threats to the financial stability of the United States;</text>
</clause><clause id="HCD3D06700AB142CF88F4AFA8A3D0956F"><enum>(iv)</enum><text>all
determinations made under section 113 or title VIII, and the basis for such
determinations;</text>
</clause><clause id="H559357CAED584B97B0B14E9C287D9B9F"><enum>(v)</enum><text>all
recommendations made under section 119 and the result of such recommendations;
and</text>
</clause><clause id="H657132E811F44CC792E2ECDA2A7A6485"><enum>(vi)</enum><text>recommendations—</text>
<subclause id="HE92B1DBFF4A54305ABFA06E8F2B42875"><enum>(I)</enum><text>to enhance the
integrity, efficiency, competitiveness, and stability of United States
financial markets;</text>
</subclause><subclause id="H54BB4AAAD9804C5BBAA3B32FCC264127"><enum>(II)</enum><text>to promote market
discipline; and</text>
</subclause><subclause id="HF1C6598985A5440094C894786BDAA562"><enum>(III)</enum><text>to maintain
investor confidence.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H9753C871851B42779E71BE972764E739"><enum>(b)</enum><header>Statements by
voting members of the council</header><text>At the time at which each report is
submitted under subsection (a), each voting member of the Council shall—</text>
<paragraph id="HC3F85398F44142E38D4EDB999A9EF7CF"><enum>(1)</enum><text>if such member
believes that the Council, the Government, and the private sector are taking
all reasonable steps to ensure financial stability and to mitigate systemic
risk that would negatively affect the economy, submit a signed statement to
Congress stating such belief; or</text>
</paragraph><paragraph id="H93CBA50415344253935FFC1081DB513E"><enum>(2)</enum><text>if such member
does not believe that all reasonable steps described under paragraph (1) are
being taken, submit a signed statement to Congress stating what actions such
member believes need to be taken in order to ensure that all reasonable steps
described under paragraph (1) are taken.</text>
</paragraph></subsection><subsection id="H36C7D566006D49BE855966D8EC150332"><enum>(c)</enum><header>Testimony by the
chairperson</header><text>The Chairperson shall appear before the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate at an annual hearing, after
the report is submitted under subsection (a)—</text>
<paragraph id="H5557CADCB86D4AB684C990B3689B588D"><enum>(1)</enum><text>to discuss the
efforts, activities, objectives, and plans of the Council; and</text>
</paragraph><paragraph id="HD377F85DB5F1452496B63E5DC7EA189B"><enum>(2)</enum><text>to discuss and
answer questions concerning such report.</text>
</paragraph></subsection><subsection id="H315AB01D75F64A60B4C146DD3CC3A01F"><enum>(d)</enum><header>Authority To
obtain information</header>
<paragraph id="HF4B2A3DEE6C5475E892027CC1042BC12"><enum>(1)</enum><header>In
general</header><text>The Council may receive, and may request the submission
of, any data or information from the Office of Financial Research, member
agencies, and the Federal Insurance Office, as necessary—</text>
<subparagraph id="H6165412A5DA54DE8A5A20EB7FEDAD23A"><enum>(A)</enum><text>to monitor the
financial services marketplace to identify potential risks to the financial
stability of the United States; or</text>
</subparagraph><subparagraph id="H27E9FDD2CEC746FABAD0B27C6BED589D"><enum>(B)</enum><text>to otherwise carry
out any of the provisions of this title.</text>
</subparagraph></paragraph><paragraph id="H9873AC98A78D45B4B1B1FF5FA4F51191"><enum>(2)</enum><header>Submissions by
the office and member agencies</header><text>Notwithstanding any other
provision of law, the Office of Financial Research, any member agency, and the
Federal Insurance Office, are authorized to submit information to the
Council.</text>
</paragraph><paragraph id="H1C94508AB6734E2FA658A2ABB6601A37"><enum>(3)</enum><header>Financial data
collection</header>
<subparagraph id="HA29E120E6A9C46E89E790291EC77CE11"><enum>(A)</enum><header>In
general</header><text>The Council, acting through the Office of Financial
Research, may require the submission of periodic and other reports from any
nonbank financial company or bank holding company for the purpose of assessing
the extent to which a financial activity or financial market in which the
nonbank financial company or bank holding company participates, or the nonbank
financial company or bank holding company itself, poses a threat to the
financial stability of the United States.</text>
</subparagraph><subparagraph id="H860FCE749CEE434FADBFEE613B3D47D4"><enum>(B)</enum><header>Mitigation of
report burden</header><text>Before requiring the submission of reports from any
nonbank financial company or bank holding company that is regulated by a member
agency or any primary financial regulatory agency, the Council, acting through
the Office of Financial Research, shall coordinate with such agencies and
shall, whenever possible, rely on information available from the Office of
Financial Research or such agencies.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H033CA2E5DB1747D1BD4CDB9CAF81E035"><enum>(C)</enum><header display-inline="yes-display-inline">Mitigation in case of foreign financial
companies</header><text display-inline="yes-display-inline">Before requiring
the submission of reports from a company that is a foreign nonbank financial
company or foreign-based bank holding company, the Council shall, acting
through the Office of Financial Research, to the extent appropriate, consult
with the appropriate foreign regulator of such company and, whenever possible,
rely on information already being collected by such foreign regulator, with
English translation.</text>
</subparagraph></paragraph><paragraph id="HD2008C75136D4D249700647867E023E2"><enum>(4)</enum><header>Back-up
examination by the Board of Governors</header><text>If the Council is unable to
determine whether the financial activities of a U.S. nonbank financial company
pose a threat to the financial stability of the United States, based on
information or reports obtained under paragraphs (1) and (3), discussions with
management, and publicly available information, the Council may request the
Board of Governors, and the Board of Governors is authorized, to conduct an
examination of the U.S. nonbank financial company for the sole purpose of
determining whether the nonbank financial company should be supervised by the
Board of Governors for purposes of this title.</text>
</paragraph><paragraph id="H0433CDDD8CBB415D9C780994E301CB61"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="H9414269EF3F94FDA892F31BC8A86D3E6"><enum>(A)</enum><header>In
general</header><text>The Council, the Office of Financial Research, and the
other member agencies shall maintain the confidentiality of any data,
information, and reports submitted under this title.</text>
</subparagraph><subparagraph id="H4A415CA912FD4BE4B06746E01AB9BF76"><enum>(B)</enum><header>Retention of
privilege</header><text>The submission of any nonpublicly available data or
information under this subsection and subtitle B shall not constitute a waiver
of, or otherwise affect, any privilege arising under Federal or State law
(including the rules of any Federal or State court) to which the data or
information is otherwise subject.</text>
</subparagraph><subparagraph id="H78C5BA7A8A274D3998033AF1C1FA725B"><enum>(C)</enum><header>Freedom of
information Act</header><text>Section 552 of title 5, United States Code,
including the exceptions thereunder, shall apply to any data or information
submitted under this subsection and subtitle B.</text>
</subparagraph></paragraph></subsection></section><section id="H9558E3387BC4450B88B07927C7FE6EAD"><enum>113.</enum><header>Authority to
require supervision and regulation of certain nonbank financial
companies</header>
<subsection id="H7E4448CC762B4FEE90454C3E84CCD8BC"><enum>(a)</enum><header>U.S. Nonbank
Financial companies supervised by the Board of Governors</header>
<paragraph id="HAA0893AA8F7C443982FCBD223224BC7E"><enum>(1)</enum><header>Determination</header><text>The
Council, on a nondelegable basis and by a vote of not fewer than
<fraction>2/3</fraction> of the voting members then serving, including an
affirmative vote by the Chairperson, may determine that a U.S. nonbank
financial company shall be supervised by the Board of Governors and shall be
subject to prudential standards, in accordance with this title, if the Council
determines that material financial distress at the U.S. nonbank financial
company, or the nature, scope, size, scale, concentration, interconnectedness,
or mix of the activities of the U.S. nonbank financial company, could pose a
threat to the financial stability of the United States.</text>
</paragraph><paragraph id="H9765637A939C49A89C2ECCF47B7FABB9"><enum>(2)</enum><header>Considerations</header><text>In
making a determination under paragraph (1), the Council shall consider—</text>
<subparagraph id="H695420A5F2DA417094681AADA237763C"><enum>(A)</enum><text>the extent of the
leverage of the company;</text>
</subparagraph><subparagraph id="H6D095BDB6B3E49789D54C68E83139061"><enum>(B)</enum><text>the extent and
nature of the off-balance-sheet exposures of the company;</text>
</subparagraph><subparagraph id="HA878C85CFC2845C19E9EF63E8E65C0F1"><enum>(C)</enum><text>the extent and
nature of the transactions and relationships of the company with other
significant nonbank financial companies and significant bank holding
companies;</text>
</subparagraph><subparagraph id="HC1A3DEC2487A46CDBC2FD1AF4017558A"><enum>(D)</enum><text>the importance of
the company as a source of credit for households, businesses, and State and
local governments and as a source of liquidity for the United States financial
system;</text>
</subparagraph><subparagraph id="H14588DB5792D47C494BCEFADA4DC8733"><enum>(E)</enum><text>the importance of
the company as a source of credit for low-income, minority, or underserved
communities, and the impact that the failure of such company would have on the
availability of credit in such communities;</text>
</subparagraph><subparagraph id="H62A88331865E413EB907630A903448F6"><enum>(F)</enum><text>the extent to
which assets are managed rather than owned by the company, and the extent to
which ownership of assets under management is diffuse;</text>
</subparagraph><subparagraph id="H8A613D7ABC814FC8A496AEF812C50FC1"><enum>(G)</enum><text>the nature, scope,
size, scale, concentration, interconnectedness, and mix of the activities of
the company;</text>
</subparagraph><subparagraph id="HEA2FAE71AB3A48C28561AA4337BEE02F"><enum>(H)</enum><text>the degree to
which the company is already regulated by 1 or more primary financial
regulatory agencies;</text>
</subparagraph><subparagraph id="H7D887DD452044391B633442157FAE63B"><enum>(I)</enum><text>the amount and
nature of the financial assets of the company;</text>
</subparagraph><subparagraph id="HEF82F4A13A5D49A2839990A6476012FB"><enum>(J)</enum><text>the amount and
types of the liabilities of the company, including the degree of reliance on
short-term funding; and</text>
</subparagraph><subparagraph id="H5C6F517B626C4131A81857C584FA1C17"><enum>(K)</enum><text>any other
risk-related factors that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H3FCDA7CCB98A4613B4A6BC7F43192560"><enum>(b)</enum><header>Foreign Nonbank
Financial companies supervised by the Board of Governors</header>
<paragraph commented="no" id="HF44AEAF7AB384B78910D151F50DEE264"><enum>(1)</enum><header>Determination</header><text>The
Council, on a nondelegable basis and by a vote of not fewer than
<fraction>2/3</fraction> of the voting members then serving, including an
affirmative vote by the Chairperson, may determine that a foreign nonbank
financial company shall be supervised by the Board of Governors and shall be
subject to prudential standards, in accordance with this title, if the Council
determines that material financial distress at the foreign nonbank financial
company, or the nature, scope, size, scale, concentration, interconnectedness,
or mix of the activities of the foreign nonbank financial company, could pose a
threat to the financial stability of the United States.</text>
</paragraph><paragraph commented="no" id="HD019825432F640ABB9D9546AB278BE18"><enum>(2)</enum><header>Considerations</header><text>In
making a determination under paragraph (1), the Council shall consider—</text>
<subparagraph commented="no" id="H9C90E4D1AEFB40C99115DDE7ECF6E304"><enum>(A)</enum><text>the extent of the
leverage of the company;</text>
</subparagraph><subparagraph commented="no" id="HCB21B9507BAE48A88DF8D11C089388ED"><enum>(B)</enum><text>the extent and
nature of the United States related off-balance-sheet exposures of the
company;</text>
</subparagraph><subparagraph commented="no" id="H996512F85FE14011A19B4CD56E6AA186"><enum>(C)</enum><text>the extent and
nature of the transactions and relationships of the company with other
significant nonbank financial companies and significant bank holding
companies;</text>
</subparagraph><subparagraph commented="no" id="H507D17A6B23B47808B4F87C3B4D27CC8"><enum>(D)</enum><text>the importance of
the company as a source of credit for United States households, businesses, and
State and local governments and as a source of liquidity for the United States
financial system;</text>
</subparagraph><subparagraph commented="no" id="H92BF6417EC284A8281830E6E4F5F9936"><enum>(E)</enum><text>the importance of
the company as a source of credit for low-income, minority, or underserved
communities in the United States, and the impact that the failure of such
company would have on the availability of credit in such communities;</text>
</subparagraph><subparagraph commented="no" id="H6FD187E2709646C2BFF2DD382A98777E"><enum>(F)</enum><text>the extent to
which assets are managed rather than owned by the company and the extent to
which ownership of assets under management is diffuse;</text>
</subparagraph><subparagraph commented="no" id="H157095104681469DA9E7D7E597218324"><enum>(G)</enum><text>the nature, scope,
size, scale, concentration, interconnectedness, and mix of the activities of
the company;</text>
</subparagraph><subparagraph commented="no" id="HEA69785CFB1E4075AD57532F6DD0A113"><enum>(H)</enum><text>the extent to
which the company is subject to prudential standards on a consolidated basis in
its home country that are administered and enforced by a comparable foreign
supervisory authority;</text>
</subparagraph><subparagraph commented="no" id="H94F6E5E7ABFB44028940887C608CE145"><enum>(I)</enum><text>the amount and
nature of the United States financial assets of the company;</text>
</subparagraph><subparagraph commented="no" id="HC05C21D44C40416AA6E6264BFD8D37AD"><enum>(J)</enum><text>the amount and
nature of the liabilities of the company used to fund activities and operations
in the United States, including the degree of reliance on short-term funding;
and</text>
</subparagraph><subparagraph commented="no" id="HD9774B99DE3A425CAEC1FB8A2C98876E"><enum>(K)</enum><text>any other
risk-related factors that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H8058BC21A2724025B7EA208B9522B7C0"><enum>(c)</enum><header>Antievasion</header>
<paragraph id="H69DDFF9C5BBA421CAFDEEE0E97BB2746"><enum>(1)</enum><header>Determinations</header><text>In
order to avoid evasion of this title, the Council, on its own initiative or at
the request of the Board of Governors, may determine, on a nondelegable basis
and by a vote of not fewer than <fraction>2/3</fraction> of the voting members
then serving, including an affirmative vote by the Chairperson, that—</text>
<subparagraph id="HBB88013EA37A4232A5A9917BA314DA85"><enum>(A)</enum><text>material financial
distress related to, or the nature, scope, size, scale, concentration,
interconnectedness, or mix of, the financial activities conducted directly or
indirectly by a company incorporated or organized under the laws of the United
States or any State or the financial activities in the United States of a
company incorporated or organized in a country other than the United States
would pose a threat to the financial stability of the United States, based on
consideration of the factors in subsection (a)(2) or (b)(2), as
applicable;</text>
</subparagraph><subparagraph id="H2F873F588137414886EF6E6C54A0CD80"><enum>(B)</enum><text>the company is
organized or operates in such a manner as to evade the application of this
title; and</text>
</subparagraph><subparagraph id="HE4EF4ACEF6DF4A1195C60297BF07D4F7"><enum>(C)</enum><text>such financial
activities of the company shall be supervised by the Board of Governors and
subject to prudential standards in accordance with this title, consistent with
paragraph (3).</text>
</subparagraph></paragraph><paragraph id="H29604A1E14F44F79899950C1376555CA"><enum>(2)</enum><header>Report</header><text>Upon
making a determination under paragraph (1), the Council shall submit a report
to the appropriate committees of Congress detailing the reasons for making such
determination.</text>
</paragraph><paragraph id="H1D3B991320C140D98C657D6B0D6C4EEF"><enum>(3)</enum><header>Consolidated
supervision of only financial activities; establishment of an intermediate
holding company</header>
<subparagraph id="HAC991EF680D14D1AB33E8214A21EFB95"><enum>(A)</enum><header>Establishment of
an Intermediate holding company</header><text>Upon a determination under
paragraph (1), the company that is the subject of the determination may
establish an intermediate holding company in which the financial activities of
such company and its subsidiaries shall be conducted (other than the activities
described in section 167(b)(2)) in compliance with any regulations or guidance
provided by the Board of Governors. Such intermediate holding company shall be
subject to the supervision of the Board of Governors and to prudential
standards under this title as if the intermediate holding company were a
nonbank financial company supervised by the Board of Governors.</text>
</subparagraph><subparagraph id="H44ADE2E297E3464B912DD4BFB29A155D"><enum>(B)</enum><header>Action of the
Board of Governors</header><text>To facilitate the supervision of the financial
activities subject to the determination in paragraph (1), the Board of
Governors may require a company to establish an intermediate holding company,
as provided for in section 167, which would be subject to the supervision of
the Board of Governors and to prudential standards under this title, as if the
intermediate holding company were a nonbank financial company supervised by the
Board of Governors.</text>
</subparagraph></paragraph><paragraph id="H64B5EE76CBA04619ACE357B8A08C1B58"><enum>(4)</enum><header>Notice and
opportunity for hearing and final determination; judicial
review</header><text>Subsections (d) through (h) shall apply to determinations
made by the Council pursuant to paragraph (1) in the same manner as such
subsections apply to nonbank financial companies.</text>
</paragraph><paragraph id="HF3EAFF01E4704356B28859918BAFAB5C"><enum>(5)</enum><header>Covered
financial activities</header><text>For purposes of this subsection, the term
<term>financial activities</term>—</text>
<subparagraph id="H6F816A7A896C4225857B8D4B60509E4F"><enum>(A)</enum><text>means activities
that are financial in nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956);</text>
</subparagraph><subparagraph id="HB7157B8D85434921BC635972320B4BC3"><enum>(B)</enum><text>includes the
ownership or control of one or more insured depository institutions; and</text>
</subparagraph><subparagraph id="H97AD812DCF74455D88A4CD6476EDBB15"><enum>(C)</enum><text>does not include
internal financial activities conducted for the company or any affiliate
thereof, including internal treasury, investment, and employee benefit
functions.</text>
</subparagraph></paragraph><paragraph id="H92A2124DBF6B4A9A82C7B39884E539B0"><enum>(6)</enum><header>Only financial
activities subject to prudential supervision</header><text>Nonfinancial
activities of the company shall not be subject to supervision by the Board of
Governors and prudential standards of the Board. For purposes of this Act, the
financial activities that are the subject of the determination in paragraph (1)
shall be subject to the same requirements as a nonbank financial company
supervised by the Board of Governors. Nothing in this paragraph shall prohibit
or limit the authority of the Board of Governors to apply prudential standards
under this title to the financial activities that are subject to the
determination in paragraph (1).</text>
</paragraph></subsection><subsection id="HF78198060DF245C79E5E71AC18800F24"><enum>(d)</enum><header>Reevaluation and
rescission</header><text>The Council shall—</text>
<paragraph id="H96A1E89E0E7E44FFBB0A4875C5BC3C8B"><enum>(1)</enum><text>not less
frequently than annually, reevaluate each determination made under subsections
(a) and (b) with respect to such nonbank financial company supervised by the
Board of Governors; and</text>
</paragraph><paragraph id="H0F22FE8E5332432DAA5E2DA0FFEEEDD3"><enum>(2)</enum><text>rescind any such
determination, if the Council, by a vote of not fewer than
<fraction>2/3</fraction> of the voting members then serving, including an
affirmative vote by the Chairperson, determines that the nonbank financial
company no longer meets the standards under subsection (a) or (b), as
applicable.</text>
</paragraph></subsection><subsection id="H7FD217F00D1344A1A4A253A7215DFFB1"><enum>(e)</enum><header>Notice and
opportunity for hearing and final determination</header>
<paragraph id="H139C33C432AB4F74B72EFAB240EFC4F9"><enum>(1)</enum><header>In
general</header><text>The Council shall provide to a nonbank financial company
written notice of a proposed determination of the Council, including an
explanation of the basis of the proposed determination of the Council, that a
nonbank financial company shall be supervised by the Board of Governors and
shall be subject to prudential standards in accordance with this title.</text>
</paragraph><paragraph id="HC0FF3744A1BA48B09C87DB2146F3E9F0"><enum>(2)</enum><header>Hearing</header><text>Not
later than 30 days after the date of receipt of any notice of a proposed
determination under paragraph (1), the nonbank financial company may request,
in writing, an opportunity for a written or oral hearing before the Council to
contest the proposed determination. Upon receipt of a timely request, the
Council shall fix a time (not later than 30 days after the date of receipt of
the request) and place at which such company may appear, personally or through
counsel, to submit written materials (or, at the sole discretion of the
Council, oral testimony and oral argument).</text>
</paragraph><paragraph id="H8829F2039EEE418EB3E60B000B38F0CC"><enum>(3)</enum><header>Final
determination</header><text>Not later than 60 days after the date of a hearing
under paragraph (2), the Council shall notify the nonbank financial company of
the final determination of the Council, which shall contain a statement of the
basis for the decision of the Council.</text>
</paragraph><paragraph id="HA5E6C7603DAC48D8B52DD992973B1EDA"><enum>(4)</enum><header>No hearing
requested</header><text>If a nonbank financial company does not make a timely
request for a hearing, the Council shall notify the nonbank financial company,
in writing, of the final determination of the Council under subsection (a) or
(b), as applicable, not later than 10 days after the date by which the company
may request a hearing under paragraph (2).</text>
</paragraph></subsection><subsection id="H6C8686A988B049F49CFE4E8D496F4651"><enum>(f)</enum><header>Emergency
exception</header>
<paragraph id="HDDA97830537249D4A79564BAC821C9A0"><enum>(1)</enum><header>In
general</header><text>The Council may waive or modify the requirements of
subsection (e) with respect to a nonbank financial company, if the Council
determines, by a vote of not fewer than <fraction>2/3</fraction> of the voting
members then serving, including an affirmative vote by the Chairperson, that
such waiver or modification is necessary or appropriate to prevent or mitigate
threats posed by the nonbank financial company to the financial stability of
the United States.</text>
</paragraph><paragraph id="H114D82BAEEA5433EB5E5EB9BF8280C60"><enum>(2)</enum><header>Notice</header><text>The
Council shall provide notice of a waiver or modification under this subsection
to the nonbank financial company concerned as soon as practicable, but not
later than 24 hours after the waiver or modification is granted.</text>
</paragraph><paragraph id="H2B94D344611941C783E5A0190AC2206E"><enum>(3)</enum><header>International
coordination</header><text>In making a determination under paragraph (1), the
Council shall consult with the appropriate home country supervisor, if any, of
the foreign nonbank financial company that is being considered for such a
determination.</text>
</paragraph><paragraph id="HC456C09337AF45D49B4C3E6D192A0E72"><enum>(4)</enum><header>Opportunity for
hearing</header><text>The Council shall allow a nonbank financial company to
request, in writing, an opportunity for a written or oral hearing before the
Council to contest a waiver or modification under this subsection, not later
than 10 days after the date of receipt of notice of the waiver or modification
by the company. Upon receipt of a timely request, the Council shall fix a time
(not later than 15 days after the date of receipt of the request) and place at
which the nonbank financial company may appear, personally or through counsel,
to submit written materials (or, at the sole discretion of the Council, oral
testimony and oral argument).</text>
</paragraph><paragraph id="H1A1D785F42ED42A58F2F86AA1CAD6061"><enum>(5)</enum><header>Notice of final
determination</header><text>Not later than 30 days after the date of any
hearing under paragraph (4), the Council shall notify the subject nonbank
financial company of the final determination of the Council under this
subsection, which shall contain a statement of the basis for the decision of
the Council.</text>
</paragraph></subsection><subsection id="HF428C03B35214B7B94CA1B35AB8CE854"><enum>(g)</enum><header>Consultation</header><text>The
Council shall consult with the primary financial regulatory agency, if any, for
each nonbank financial company or subsidiary of a nonbank financial company
that is being considered for supervision by the Board of Governors under this
section before the Council makes any final determination with respect to such
nonbank financial company under subsection (a), (b), or (c).</text>
</subsection><subsection id="H12D2BE6930634D78A4BDF5EE822CF9FE"><enum>(h)</enum><header>Judicial
review</header><text>If the Council makes a final determination under this
section with respect to a nonbank financial company, such nonbank financial
company may, not later than 30 days after the date of receipt of the notice of
final determination under subsection (d)(2), (e)(3), or (f)(5), bring an action
in the United States district court for the judicial district in which the home
office of such nonbank financial company is located, or in the United States
District Court for the District of Columbia, for an order requiring that the
final determination be rescinded, and the court shall, upon review, dismiss
such action or direct the final determination to be rescinded. Review of such
an action shall be limited to whether the final determination made under this
section was arbitrary and capricious.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4D0795B1EDF047B694F978019F392EFD"><enum>(i)</enum><header display-inline="yes-display-inline">International coordination</header><text display-inline="yes-display-inline">In exercising its duties under this title
with respect to foreign nonbank financial companies, foreign-based bank holding
companies, and cross-border activities and markets, the Council shall consult
with appropriate foreign regulatory authorities, to the extent
appropriate.</text>
</subsection></section><section id="H0BEB04BC81DA48FEA89228FE926069CA"><enum>114.</enum><header>Registration of
nonbank financial companies supervised by the Board of Governors</header><text display-inline="no-display-inline">Not later than 180 days after the date of a
final Council determination under section 113 that a nonbank financial company
is to be supervised by the Board of Governors, such company shall register with
the Board of Governors, on forms prescribed by the Board of Governors, which
shall include such information as the Board of Governors, in consultation with
the Council, may deem necessary or appropriate to carry out this title.</text>
</section><section commented="no" id="HA04E8F30F16C4797B31082D5D2FE6232"><enum>115.</enum><header>Enhanced
supervision and prudential standards for nonbank financial companies supervised
by the Board of Governors and certain bank holding companies</header>
<subsection id="H1FDD553DEC284340AC9500BA0F543ACD"><enum>(a)</enum><header>In
general</header>
<paragraph id="H901328A9484E478981F4188EEB2210BF"><enum>(1)</enum><header>Purpose</header><text>In
order to prevent or mitigate risks to the financial stability of the United
States that could arise from the material financial distress, failure, or
ongoing activities of large, interconnected financial institutions, the Council
may make recommendations to the Board of Governors concerning the establishment
and refinement of prudential standards and reporting and disclosure
requirements applicable to nonbank financial companies supervised by the Board
of Governors and large, interconnected bank holding companies, that—</text>
<subparagraph id="H7A946CD415B44CE292D6C133F93994BC"><enum>(A)</enum><text>are more stringent
than those applicable to other nonbank financial companies and bank holding
companies that do not present similar risks to the financial stability of the
United States; and</text>
</subparagraph><subparagraph id="H18871B88F36741BC80816101C421F346"><enum>(B)</enum><text>increase in
stringency, based on the considerations identified in subsection (b)(3).</text>
</subparagraph></paragraph><paragraph id="HFEDF2B0B728C468990A80F9633C89EE0"><enum>(2)</enum><header>Recommended
application of required standards</header><text>In making recommendations under
this section, the Council may—</text>
<subparagraph id="H33CFFC8864CF45D4BA752AE605BF7F77"><enum>(A)</enum><text>differentiate
among companies that are subject to heightened standards on an individual basis
or by category, taking into consideration their capital structure, riskiness,
complexity, financial activities (including the financial activities of their
subsidiaries), size, and any other risk-related factors that the Council deems
appropriate; or</text>
</subparagraph><subparagraph id="HE435631ACD82487689361B95020EAB07"><enum>(B)</enum><text>recommend an asset
threshold that is higher than $50,000,000,000 for the application of any
standard described in subsections (c) through (g).</text>
</subparagraph></paragraph></subsection><subsection id="HEF0EC54D2C7242268EB05F66552D0901"><enum>(b)</enum><header>Development of
prudential standards</header>
<paragraph id="H2292B42C44214CE49D30F1FA402D4FC7"><enum>(1)</enum><header>In
general</header><text>The recommendations of the Council under subsection (a)
may include—</text>
<subparagraph id="H7C63202120454686A9FE1A7F142CA449"><enum>(A)</enum><text>risk-based capital
requirements;</text>
</subparagraph><subparagraph id="H0E678CE8D0BE47AD8B5F755495508590"><enum>(B)</enum><text>leverage
limits;</text>
</subparagraph><subparagraph id="H9CA13F120C2D426CB6712EEE11981EE7"><enum>(C)</enum><text>liquidity
requirements;</text>
</subparagraph><subparagraph id="HE4C6396379FE4DC7B80E5A1FBCD3FC94"><enum>(D)</enum><text>resolution plan
and credit exposure report requirements;</text>
</subparagraph><subparagraph id="HB81DDC2C4B4A498797CD4417C5583F8D"><enum>(E)</enum><text>concentration
limits;</text>
</subparagraph><subparagraph id="H132D97187717437F845F4CD04A6AD6FB"><enum>(F)</enum><text>a contingent
capital requirement;</text>
</subparagraph><subparagraph id="H24B6064F9D924B049FCC43B6EE390F72"><enum>(G)</enum><text>enhanced public
disclosures;</text>
</subparagraph><subparagraph id="H2666AC65B3CE4F2294B75D1BEB635F04"><enum>(H)</enum><text>short-term debt
limits; and</text>
</subparagraph><subparagraph id="H14C0148A52A4420EB26826130B067632"><enum>(I)</enum><text>overall risk
management requirements.</text>
</subparagraph></paragraph><paragraph id="HC4658C0296374CC8A7C223CCB50FB0F0"><enum>(2)</enum><header>Prudential
standards for foreign financial companies</header><text>In making
recommendations concerning the standards set forth in paragraph (1) that would
apply to foreign nonbank financial companies supervised by the Board of
Governors or foreign-based bank holding companies, the Council shall—</text>
<subparagraph id="H6BDFD50E7A31428283F20186A8D7D1E2"><enum>(A)</enum><text>give due regard to
the principle of national treatment and equality of competitive opportunity;
and</text>
</subparagraph><subparagraph id="HF3D00456AB694CDF8F81A233FC1CE322"><enum>(B)</enum><text>take into account
the extent to which the foreign nonbank financial company or foreign-based bank
holding company is subject on a consolidated basis to home country standards
that are comparable to those applied to financial companies in the United
States.</text>
</subparagraph></paragraph><paragraph id="H73BFCD1B8AD446BA8668FCB125936DD1"><enum>(3)</enum><header>Considerations</header><text>In
making recommendations concerning prudential standards under paragraph (1), the
Council shall—</text>
<subparagraph id="HA27ED9B3245246C68306A812C631AB0B"><enum>(A)</enum><text>take into account
differences among nonbank financial companies supervised by the Board of
Governors and bank holding companies described in subsection (a), based
on—</text>
<clause id="H0A1A00CC7A2F4F80B3A5F83CFA312105"><enum>(i)</enum><text>the
factors described in subsections (a) and (b) of section 113;</text>
</clause><clause id="H942565C33D374F37A2CB984BCD8EE98B"><enum>(ii)</enum><text>whether the
company owns an insured depository institution;</text>
</clause><clause id="HCA4A07BFEBC54FBD8D1D28B245DBDE9D"><enum>(iii)</enum><text>nonfinancial
activities and affiliations of the company; and</text>
</clause><clause id="H5974B9474680443ABEEC20E14199BBE1"><enum>(iv)</enum><text>any
other factors that the Council determines appropriate;</text>
</clause></subparagraph><subparagraph id="HBC827E705B6F49EC9C7CB0D10F20A292"><enum>(B)</enum><text>to the extent
possible, ensure that small changes in the factors listed in subsections (a)
and (b) of section 113 would not result in sharp, discontinuous changes in the
prudential standards established under section 165; and</text>
</subparagraph><subparagraph id="H3368DEC7CC304AA1ABA3A58144167CBC"><enum>(C)</enum><text>adapt its
recommendations as appropriate in light of any predominant line of business of
such company, including assets under management or other activities for which
particular standards may not be appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H0F609407DC3145CEA907ADA0AFF82C81"><enum>(c)</enum><header>Contingent
capital</header>
<paragraph id="HC5887388E20E4FEBB815221D5C912B92"><enum>(1)</enum><header>Study
required</header><text>The Council shall conduct a study of the feasibility,
benefits, costs, and structure of a contingent capital requirement for nonbank
financial companies supervised by the Board of Governors and bank holding
companies described in subsection (a), which study shall include—</text>
<subparagraph id="H91AD8CFF037B45EBB9380C1CCB31A50E"><enum>(A)</enum><text>an evaluation of
the degree to which such requirement would enhance the safety and soundness of
companies subject to the requirement, promote the financial stability of the
United States, and reduce risks to United States taxpayers;</text>
</subparagraph><subparagraph id="HCD952333FEEE4AEB90CAEB347F7082F5"><enum>(B)</enum><text>an evaluation of
the characteristics and amounts of contingent capital that should be
required;</text>
</subparagraph><subparagraph id="HCF377D06EC8F4E77B828875785BECB81"><enum>(C)</enum><text>an analysis of
potential prudential standards that should be used to determine whether the
contingent capital of a company would be converted to equity in times of
financial stress;</text>
</subparagraph><subparagraph id="HE2F9AB2F9F93452A9B175588AA7ADB94"><enum>(D)</enum><text>an evaluation of
the costs to companies, the effects on the structure and operation of credit
and other financial markets, and other economic effects of requiring contingent
capital;</text>
</subparagraph><subparagraph id="HC792941051254E0FA98003A814B98947"><enum>(E)</enum><text>an evaluation of
the effects of such requirement on the international competitiveness of
companies subject to the requirement and the prospects for international
coordination in establishing such requirement; and</text>
</subparagraph><subparagraph id="HE3410FCA77954492B20ACC0A19BE3745"><enum>(F)</enum><text>recommendations
for implementing regulations.</text>
</subparagraph></paragraph><paragraph id="H824EA38F1B6443819D7F4A53E2A170D3"><enum>(2)</enum><header>Report</header><text>The
Council shall submit a report to Congress regarding the study required by
paragraph (1) not later than 2 years after the date of enactment of this
Act.</text>
</paragraph><paragraph id="H5F9C482B18A649439615B41576FA9C88"><enum>(3)</enum><header>Recommendations</header>
<subparagraph id="H984C9C2D80E541CEB0345D5AB177AFA2"><enum>(A)</enum><header>In
general</header><text>Subsequent to submitting a report to Congress under
paragraph (2), the Council may make recommendations to the Board of Governors
to require any nonbank financial company supervised by the Board of Governors
and any bank holding company described in subsection (a) to maintain a minimum
amount of contingent capital that is convertible to equity in times of
financial stress.</text>
</subparagraph><subparagraph id="H2D59F9D1492A462F8AEE4EDA96BF6DB4"><enum>(B)</enum><header>Factors to
consider</header><text>In making recommendations under this subsection, the
Council shall consider—</text>
<clause id="H7370E2A5D67A475D9099CCA45443C629"><enum>(i)</enum><text>an
appropriate transition period for implementation of a conversion under this
subsection;</text>
</clause><clause id="H3ECED5B2C2BB425BBCD6ECBF8FB7F6EA"><enum>(ii)</enum><text>the
factors described in subsection (b)(3);</text>
</clause><clause id="H40D7AD04973C46979C82954680526853"><enum>(iii)</enum><text>capital
requirements applicable to a nonbank financial company supervised by the Board
of Governors or a bank holding company described in subsection (a), and
subsidiaries thereof;</text>
</clause><clause id="HD9C777F0E8824155A72947772024F35D"><enum>(iv)</enum><text>results of the
study required by paragraph (1); and</text>
</clause><clause id="H21B0DA4950A048478C0C00D851008B00"><enum>(v)</enum><text>any
other factor that the Council deems appropriate.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H1CC4D4D7A8B54FEEA642EFC221536198"><enum>(d)</enum><header>Resolution plan
and credit exposure reports</header>
<paragraph id="HABBB3B5C5C85498B8858C69359D19FCF"><enum>(1)</enum><header>Resolution
plan</header><text>The Council may make recommendations to the Board of
Governors concerning the requirement that each nonbank financial company
supervised by the Board of Governors and each bank holding company described in
subsection (a) report periodically to the Council, the Board of Governors, and
the Corporation, the plan of such company for rapid and orderly resolution in
the event of material financial distress or failure.</text>
</paragraph><paragraph id="H53D8D8DFF2534B06B2017A885912AB65"><enum>(2)</enum><header>Credit exposure
report</header><text>The Council may make recommendations to the Board of
Governors concerning the advisability of requiring each nonbank financial
company supervised by the Board of Governors and bank holding company described
in subsection (a) to report periodically to the Council, the Board of
Governors, and the Corporation on—</text>
<subparagraph id="H866004FF5E944C0D9B1677BC3093FCB8"><enum>(A)</enum><text>the nature and
extent to which the company has credit exposure to other significant nonbank
financial companies and significant bank holding companies; and</text>
</subparagraph><subparagraph id="HA7407056556044DE8C5E2B6386AC5898"><enum>(B)</enum><text>the nature and
extent to which other such significant nonbank financial companies and
significant bank holding companies have credit exposure to that company.</text>
</subparagraph></paragraph></subsection><subsection id="HF4705B7D448C40CC80CF177791195C72"><enum>(e)</enum><header>Concentration
limits</header><text>In order to limit the risks that the failure of any
individual company could pose to nonbank financial companies supervised by the
Board of Governors or bank holding companies described in subsection (a), the
Council may make recommendations to the Board of Governors to prescribe
standards to limit such risks, as set forth in section 165.</text>
</subsection><subsection id="HD7F5BD0C6DF747CBB9859BC894B7F19B"><enum>(f)</enum><header>Enhanced public
disclosures</header><text>The Council may make recommendations to the Board of
Governors to require periodic public disclosures by bank holding companies
described in subsection (a) and by nonbank financial companies supervised by
the Board of Governors, in order to support market evaluation of the risk
profile, capital adequacy, and risk management capabilities thereof.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3E5533ED29DB4A87BD5AB6975CA017E0"><enum>(g)</enum><header display-inline="yes-display-inline">Short-term debt limits</header><text display-inline="yes-display-inline">The Council may make recommendations to the
Board of Governors to require short-term debt limits to mitigate the risks that
an over-accumulation of such debt could pose to bank holding companies
described in subsection (a), nonbank financial companies supervised by the
Board of Governors, or the financial system.</text>
</subsection></section><section id="H808F101AC7CA4168B15869819CB647A5"><enum>116.</enum><header>Reports</header>
<subsection id="H052B70160C4148419FFABCC324D736FC"><enum>(a)</enum><header>In
general</header><text>Subject to subsection (b), the Council, acting through
the Office of Financial Research, may require a bank holding company with total
consolidated assets of $50,000,000,000 or greater or a nonbank financial
company supervised by the Board of Governors, and any subsidiary thereof, to
submit certified reports to keep the Council informed as to—</text>
<paragraph id="H7765871EAF284DDD9F81C9E9316E0AED"><enum>(1)</enum><text>the financial
condition of the company;</text>
</paragraph><paragraph id="H093DD2DB9A504405A4EBBBBBB8460172"><enum>(2)</enum><text>systems for
monitoring and controlling financial, operating, and other risks;</text>
</paragraph><paragraph id="H404D75006E0A4723AB9296F47B9420D8"><enum>(3)</enum><text>transactions with
any subsidiary that is a depository institution; and</text>
</paragraph><paragraph id="HC8730C28A73842BCABFD7E523F3358AE"><enum>(4)</enum><text>the extent to
which the activities and operations of the company and any subsidiary thereof,
could, under adverse circumstances, have the potential to disrupt financial
markets or affect the overall financial stability of the United States.</text>
</paragraph></subsection><subsection id="HF58032D1871E47349685523228D77191"><enum>(b)</enum><header>Use of existing
reports</header>
<paragraph id="H4756BAF12FEA44A9867C86871C89A989"><enum>(1)</enum><header>In
general</header><text>For purposes of compliance with subsection (a), the
Council, acting through the Office of Financial Research, shall, to the fullest
extent possible, use—</text>
<subparagraph id="H1946F2498A164386858A39258DADF61C"><enum>(A)</enum><text>reports that a
bank holding company, nonbank financial company supervised by the Board of
Governors, or any functionally regulated subsidiary of such company has been
required to provide to other Federal or State regulatory agencies or to a
relevant foreign supervisory authority;</text>
</subparagraph><subparagraph id="HAA07B7D8C15740EC918A7E530AEF1FB2"><enum>(B)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subparagraph><subparagraph id="H118CF0348E394EEABF080ADF2A2ECBC4"><enum>(C)</enum><text>externally audited
financial statements.</text>
</subparagraph></paragraph><paragraph id="H884D5BBEF100470AB1D0ECD041CDB1E1"><enum>(2)</enum><header>Availability</header><text>Each
bank holding company described in subsection (a) and nonbank financial company
supervised by the Board of Governors, and any subsidiary thereof, shall provide
to the Council, at the request of the Council, copies of all reports referred
to in paragraph (1).</text>
</paragraph><paragraph id="HE0FEC3AA271646639A95E4537730D344"><enum>(3)</enum><header>Confidentiality</header><text>The
Council shall maintain the confidentiality of the reports obtained under
subsection (a) and paragraph (1)(A) of this subsection.</text>
</paragraph></subsection></section><section id="H748A18EDF5BA48F1BC187FF3B24705C6"><enum>117.</enum><header>Treatment of
certain companies that cease to be bank holding companies</header>
<subsection id="H06824DD315894CCDAEDF37C0BB769E34"><enum>(a)</enum><header>Applicability</header><text>This
section shall apply to—</text>
<paragraph id="HBD17F806B1DD4599A5349C07F683D48D"><enum>(1)</enum><text>any entity
that—</text>
<subparagraph id="HE641395B8EA8494792CDE72BEDFC3971"><enum>(A)</enum><text>was a bank holding
company having total consolidated assets equal to or greater than
$50,000,000,000 as of January 1, 2010; and</text>
</subparagraph><subparagraph id="H671B58CEA8944D80A7D73A306D80E340"><enum>(B)</enum><text>received financial
assistance under or participated in the Capital Purchase Program established
under the Troubled Asset Relief Program authorized by the Emergency Economic
Stabilization Act of 2008; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0D34CF075DB54BF5BD867A2D249F052E"><enum>(2)</enum><text display-inline="yes-display-inline">any successor entity (as defined by the
Board of Governors, in consultation with the Council) to an entity described in
paragraph (1).</text>
</paragraph></subsection><subsection id="H7C98C69AD87A42128BD36D1EBC0520BA"><enum>(b)</enum><header>Treatment</header><text>If
an entity described in subsection (a) ceases to be a bank holding company at
any time after January 1, 2010, then such entity shall be treated as a nonbank
financial company supervised by the Board of Governors, as if the Council had
made a determination under section 113 with respect to that entity.</text>
</subsection><subsection id="H390D5DA4AFC54889A11720E8BD705785"><enum>(c)</enum><header>Appeal</header>
<paragraph id="H13E08BCDCCC649D9BA71E30831ECB9B3"><enum>(1)</enum><header>Request for
hearing</header><text>An entity may request, in writing, an opportunity for a
written or oral hearing before the Council to appeal its treatment as a nonbank
financial company supervised by the Board of Governors in accordance with this
section. Upon receipt of the request, the Council shall fix a time (not later
than 30 days after the date of receipt of the request) and place at which such
entity may appear, personally or through counsel, to submit written materials
(or, at the sole discretion of the Council, oral testimony and oral
argument).</text>
</paragraph><paragraph id="H7896373AE80944AF96A029A0FBF64CAF"><enum>(2)</enum><header>Decision</header>
<subparagraph id="HDE1C8FC059AC4F8CBA7D91D6697E011B"><enum>(A)</enum><header>Proposed
decision</header><text>A Council decision to grant an appeal under this
subsection shall be made by a vote of not fewer than <fraction>2/3</fraction>
of the voting members then serving, including an affirmative vote by the
Chairperson. Not later than 60 days after the date of a hearing under paragraph
(1), the Council shall submit a report to, and may testify before, the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the proposed
decision of the Council regarding an appeal under paragraph (1), which report
shall include a statement of the basis for the proposed decision of the
Council.</text>
</subparagraph><subparagraph id="H75D5DE22A08B4924B0765B3510C36DFC"><enum>(B)</enum><header>Notice of final
decision</header><text>The Council shall notify the subject entity of the final
decision of the Council regarding an appeal under paragraph (1), which notice
shall contain a statement of the basis for the final decision of the Council,
not later than 60 days after the later of—</text>
<clause id="HA3D8BE5CC90B4F11B4D7238C4D6ED041"><enum>(i)</enum><text>the
date of the submission of the report under subparagraph (A); or</text>
</clause><clause id="H4F00487A674F4E85AA1C644CD3EE7A8F"><enum>(ii)</enum><text>if,
not later than 1 year after the date of submission of the report under
subparagraph (A), the Committee on Banking, Housing, and Urban Affairs of the
Senate or the Committee on Financial Services of the House of Representatives
holds one or more hearings regarding such report, the date of the last such
hearing.</text>
</clause></subparagraph><subparagraph id="H30275184D0624009BD2809662676C6D8"><enum>(C)</enum><header>Considerations</header><text>In
making a decision regarding an appeal under paragraph (1), the Council shall
consider whether the company meets the standards under section 113(a) or
113(b), as applicable, and the definition of the term <quote>nonbank financial
company</quote> under section 102. The decision of the Council shall be final,
subject to the review under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="H4964518B6D364FD58F647460427E2684"><enum>(3)</enum><header>Review</header><text>If
the Council denies an appeal under this subsection, the Council shall, not less
frequently than annually, review and reevaluate the decision.</text>
</paragraph></subsection></section><section id="H3E7A07A19DBB487CBA060E444AC95165"><enum>118.</enum><header>Council
funding</header><text display-inline="no-display-inline">Any expenses of the
Council shall be treated as expenses of, and paid by, the Office of Financial
Research.</text>
</section><section commented="no" id="H14E2A2033005448DA2B42B161B3CEBD8"><enum>119.</enum><header>Resolution of
supervisory jurisdictional disputes among member agencies</header>
<subsection commented="no" id="H16D038749B264FDFA2903F2CFD549E3C"><enum>(a)</enum><header>Request for
council recommendation</header><text>The Council shall seek to resolve a
dispute among 2 or more member agencies, if—</text>
<paragraph commented="no" id="H2FAA5411C8884055BF1382BF91267F69"><enum>(1)</enum><text>a member agency
has a dispute with another member agency about the respective jurisdiction over
a particular bank holding company, nonbank financial company, or financial
activity or product (excluding matters for which another dispute mechanism
specifically has been provided under title X);</text>
</paragraph><paragraph commented="no" id="HA9F0718EF69C44CD9695840DE4BD6FB6"><enum>(2)</enum><text>the Council
determines that the disputing agencies cannot, after a demonstrated good faith
effort, resolve the dispute without the intervention of the Council; and</text>
</paragraph><paragraph commented="no" id="H74DD6C90E0304B69980FC1F72F54CB92"><enum>(3)</enum><text>any of the member
agencies involved in the dispute—</text>
<subparagraph commented="no" id="H357E6BF6277A4F7E8880C3AB1DC11302"><enum>(A)</enum><text>provides all other
disputants prior notice of the intent to request dispute resolution by the
Council; and</text>
</subparagraph><subparagraph commented="no" id="HB08D668E4A824CD2A8B1D4A74B07E0B8"><enum>(B)</enum><text>requests in
writing, not earlier than 14 days after providing the notice described in
subparagraph (A), that the Council seek to resolve the dispute.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H63A05C2D4F5C4041B81E7A0B7B859D56"><enum>(b)</enum><header>Council
recommendation</header><text>The Council shall seek to resolve each dispute
described in subsection (a)—</text>
<paragraph commented="no" id="HF4B47BF088BF4362ACFF0C7537971CCD"><enum>(1)</enum><text>within a
reasonable time after receiving the dispute resolution request;</text>
</paragraph><paragraph commented="no" id="HAB3D209BC1304846A40EF516D483E5D1"><enum>(2)</enum><text>after
consideration of relevant information provided by each agency party to the
dispute; and</text>
</paragraph><paragraph id="H30D019643D0344B89F2231F4AB30DBCF"><enum>(3)</enum><text>by agreeing with 1
of the disputants regarding the entirety of the matter, or by determining a
compromise position.</text>
</paragraph></subsection><subsection commented="no" id="HB34583A2A5314DC99540315B579CDBC2"><enum>(c)</enum><header>Form of
recommendation</header><text>Any Council recommendation under this section
shall—</text>
<paragraph commented="no" id="H030E8D4734BD458F8D531A0B8DAAB7E8"><enum>(1)</enum><text>be in
writing;</text>
</paragraph><paragraph commented="no" id="H6B8A7D368AA347B09D7934AA0A9901FC"><enum>(2)</enum><text>include an
explanation of the reasons therefor; and</text>
</paragraph><paragraph id="HCC51AC122E394D6BA9789E5F6A73F346"><enum>(3)</enum><text>be approved by the
affirmative vote of <fraction>2/3</fraction> of the voting members of the
Council then serving.</text>
</paragraph></subsection><subsection id="HD4567BED6D844BEBB650E2543626D77E"><enum>(d)</enum><header>Nonbinding
effect</header><text>Any recommendation made by the Council under subsection
(c) shall not be binding on the Federal agencies that are parties to the
dispute.</text>
</subsection></section><section id="H7081376F63D742489518EE6EC6747FD2"><enum>120.</enum><header>Additional
standards applicable to activities or practices for financial stability
purposes</header>
<subsection id="H3BE328CBD9D848298C3E46D2FB6E7399"><enum>(a)</enum><header>In
general</header><text>The Council may provide for more stringent regulation of
a financial activity by issuing recommendations to the primary financial
regulatory agencies to apply new or heightened standards and safeguards,
including standards enumerated in section 115, for a financial activity or
practice conducted by bank holding companies or nonbank financial companies
under their respective jurisdictions, if the Council determines that the
conduct, scope, nature, size, scale, concentration, or interconnectedness of
such activity or practice could create or increase the risk of significant
liquidity, credit, or other problems spreading among bank holding companies and
nonbank financial companies, financial markets of the United States, or
low-income, minority, or underserved communities.</text>
</subsection><subsection id="HB575E535313B434FA078C9B0919B87D8"><enum>(b)</enum><header>Procedure for
recommendations to regulators</header>
<paragraph id="H3A1F21CE146E482AB2CB216BBFBD9A08"><enum>(1)</enum><header>Notice and
opportunity for comment</header><text>The Council shall consult with the
primary financial regulatory agencies and provide notice to the public and
opportunity for comment for any proposed recommendation that the primary
financial regulatory agencies apply new or heightened standards and safeguards
for a financial activity or practice.</text>
</paragraph><paragraph id="H0F6BDD361A3C4200A448078CDEAD00F0"><enum>(2)</enum><header>Criteria</header><text>The
new or heightened standards and safeguards for a financial activity or practice
recommended under paragraph (1)—</text>
<subparagraph id="H5EC08A3956CD4001908AC8A666C871BA"><enum>(A)</enum><text>shall take costs
to long-term economic growth into account; and</text>
</subparagraph><subparagraph id="H4F290B07E8BE497380B3BA69307DB944"><enum>(B)</enum><text>may include
prescribing the conduct of the activity or practice in specific ways (such as
by limiting its scope, or applying particular capital or risk management
requirements to the conduct of the activity) or prohibiting the activity or
practice.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HF97AA9B0CCC2470F945101F85C9A6D54"><enum>(c)</enum><header>Implementation
of recommended standards</header>
<paragraph commented="no" id="HEA446CC788B443E993A68BC01DAAE878"><enum>(1)</enum><header>Role of primary
financial regulatory agency</header>
<subparagraph commented="no" id="H51C47BD5AD57441487B78DB970157090"><enum>(A)</enum><header>In
general</header><text>Each primary financial regulatory agency may impose,
require reports regarding, examine for compliance with, and enforce standards
in accordance with this section with respect to those entities for which it is
the primary financial regulatory agency.</text>
</subparagraph><subparagraph commented="no" id="HD14CAEBD1B584AEB89B5655B4ADAEBBA"><enum>(B)</enum><header>Rule of
construction</header><text>The authority under this paragraph is in addition
to, and does not limit, any other authority of a primary financial regulatory
agency. Compliance by an entity with actions taken by a primary financial
regulatory agency under this section shall be enforceable in accordance with
the statutes governing the respective jurisdiction of the primary financial
regulatory agency over the entity, as if the agency action were taken under
those statutes.</text>
</subparagraph></paragraph><paragraph commented="no" id="H04B74E9654CC437D8E2ECE87D5453765"><enum>(2)</enum><header>Imposition of
standards</header><text>The primary financial regulatory agency shall impose
the standards recommended by the Council in accordance with subsection (a), or
similar standards that the Council deems acceptable, or shall explain in
writing to the Council, not later than 90 days after the date on which the
Council issues the recommendation, why the agency has determined not to follow
the recommendation of the Council.</text>
</paragraph></subsection><subsection id="HF75DDFA0FE7445D99EE70752AAD353E6"><enum>(d)</enum><header>Report to
Congress</header><text>The Council shall report to Congress on—</text>
<paragraph id="H837D2309B5754CD4863A2AF16BFEBB8A"><enum>(1)</enum><text>any
recommendations issued by the Council under this section;</text>
</paragraph><paragraph id="H9C86C49487C34AC09E457ECAAAAF6A0E"><enum>(2)</enum><text>the implementation
of, or failure to implement, such recommendation on the part of a primary
financial regulatory agency; and</text>
</paragraph><paragraph id="H31805CD07DB24C2F9B64E407EDB7420D"><enum>(3)</enum><text>in any case in
which no primary financial regulatory agency exists for the nonbank financial
company conducting financial activities or practices referred to in subsection
(a), recommendations for legislation that would prevent such activities or
practices from threatening the stability of the financial system of the United
States.</text>
</paragraph></subsection><subsection id="HA0095C3E5B3540EC9529F8FAE9798452"><enum>(e)</enum><header>Effect of
rescission of identification</header>
<paragraph commented="no" id="HB28CA3BF99034FE3AC1719B34D0E042C"><enum>(1)</enum><header>Notice</header><text>The
Council may recommend to the relevant primary financial regulatory agency that
a financial activity or practice no longer requires any standards or safeguards
implemented under this section.</text>
</paragraph><paragraph commented="no" id="H63AA9982D2394CECA5F80B6B9B68667B"><enum>(2)</enum><header>Determination of
primary financial regulatory agency to continue</header>
<subparagraph commented="no" id="H1904D86A5958495A8E4952716A6B929C"><enum>(A)</enum><header>In
general</header><text>Upon receipt of a recommendation under paragraph (1), a
primary financial regulatory agency that has imposed standards under this
section shall determine whether such standards should remain in effect.</text>
</subparagraph><subparagraph commented="no" id="H3B4F7E88BDF6445FB591F0BFD7564CF6"><enum>(B)</enum><header>Appeal
process</header><text>Each primary financial regulatory agency that has imposed
standards under this section shall promulgate regulations to establish a
procedure under which entities under its jurisdiction may appeal a
determination by such agency under this paragraph that standards imposed under
this section should remain in effect.</text>
</subparagraph></paragraph></subsection></section><section id="H219EE388903D45FBB6ABD30FA8F674FA"><enum>121.</enum><header>Mitigation of
risks to financial stability</header>
<subsection id="H8C490897D2E7438A9C81893EDF040DBD"><enum>(a)</enum><header>Mitigatory
actions</header><text>If the Board of Governors determines that a bank holding
company with total consolidated assets of $50,000,000,000 or more, or a nonbank
financial company supervised by the Board of Governors, poses a grave threat to
the financial stability of the United States, the Board of Governors, upon an
affirmative vote of not fewer than <fraction>2/3</fraction> of the voting
members of the Council then serving, shall—</text>
<paragraph id="HD783E354B20242F3991E9AAA6F0B1B6B"><enum>(1)</enum><text>limit the ability
of the company to merge with, acquire, consolidate with, or otherwise become
affiliated with another company;</text>
</paragraph><paragraph id="HD7934F0F0EA44F3A939510A843F87D54"><enum>(2)</enum><text>restrict the
ability of the company to offer a financial product or products;</text>
</paragraph><paragraph id="HD2FFAA2CEB794F409BD639162D081FF9"><enum>(3)</enum><text>require the
company to terminate one or more activities;</text>
</paragraph><paragraph id="H59931296E2904E1690B3B87962A0686C"><enum>(4)</enum><text>impose conditions
on the manner in which the company conducts 1 or more activities; or</text>
</paragraph><paragraph id="HB49E05CE7FE14894A33D1133C5FCAA2F"><enum>(5)</enum><text>if the Board of
Governors determines that the actions described in paragraphs (1) through (4)
are inadequate to mitigate a threat to the financial stability of the United
States in its recommendation, require the company to sell or otherwise transfer
assets or off-balance-sheet items to unaffiliated entities.</text>
</paragraph></subsection><subsection id="H0FB170A1E9E74BD490522A82150912CB"><enum>(b)</enum><header>Notice and
hearing</header>
<paragraph id="H025443A41004459EA77692FA9E84E4BA"><enum>(1)</enum><header>In
general</header><text>The Board of Governors, in consultation with the Council,
shall provide to a company described in subsection (a) written notice that such
company is being considered for mitigatory action pursuant to this section,
including an explanation of the basis for, and description of, the proposed
mitigatory action.</text>
</paragraph><paragraph id="H277B9BB7D1D34941AE4630E324E80678"><enum>(2)</enum><header>Hearing</header><text>Not
later than 30 days after the date of receipt of notice under paragraph (1), the
company may request, in writing, an opportunity for a written or oral hearing
before the Board of Governors to contest the proposed mitigatory action. Upon
receipt of a timely request, the Board of Governors shall fix a time (not later
than 30 days after the date of receipt of the request) and place at which such
company may appear, personally or through counsel, to submit written materials
(or, at the discretion of the Board of Governors, in consultation with the
Council, oral testimony and oral argument).</text>
</paragraph><paragraph id="H7AC5C642D9DF45D39ACE1C982CAFFD58"><enum>(3)</enum><header>Decision</header><text>Not
later than 60 days after the date of a hearing under paragraph (2), or not
later than 60 days after the provision of a notice under paragraph (1) if no
hearing was held, the Board of Governors shall notify the company of the final
decision of the Board of Governors, including the results of the vote of the
Council, as described in subsection (a).</text>
</paragraph></subsection><subsection id="H7A074A054D16476FB850DF2336751DBC"><enum>(c)</enum><header>Factors for
consideration</header><text>The Board of Governors and the Council shall take
into consideration the factors set forth in subsection (a) or (b) of section
113, as applicable, in making any determination under subsection (a).</text>
</subsection><subsection id="H2A4E815FA1044E0B92EBCADEEF943631"><enum>(d)</enum><header>Application to
foreign financial companies</header><text>The Board of Governors may prescribe
regulations regarding the application of this section to foreign nonbank
financial companies supervised by the Board of Governors and foreign-based bank
holding companies—</text>
<paragraph id="HEEAA9BAC3DAE47A3BF5C1F56B7FDCD96"><enum>(1)</enum><text>giving due regard
to the principle of national treatment and equality of competitive opportunity;
and</text>
</paragraph><paragraph id="H23806D891D1348ACB8CAB35566EF9B5B"><enum>(2)</enum><text>taking into
account the extent to which the foreign nonbank financial company or
foreign-based bank holding company is subject on a consolidated basis to home
country standards that are comparable to those applied to financial companies
in the United States.</text>
</paragraph></subsection></section><section id="H22FCAFE75FF64F51A0F864CB217A4E04"><enum>122.</enum><header>GAO Audit of
Council</header>
<subsection id="H2F1C08B1CD16495E808D53C94158FFD6"><enum>(a)</enum><header>Authority To
audit</header><text>The Comptroller General of the United States may audit the
activities of—</text>
<paragraph id="H3ADBE99B87F9446785ECCD5AB163EFFC"><enum>(1)</enum><text>the Council;
and</text>
</paragraph><paragraph id="H141410800C5E494480B9ED996723FB28"><enum>(2)</enum><text>any person or
entity acting on behalf of or under the authority of the Council, to the extent
that such activities relate to work for the Council by such person or
entity.</text>
</paragraph></subsection><subsection id="HE8555365319C4A4EA8B00FFEBC2BFEFB"><enum>(b)</enum><header>Access to
information</header>
<paragraph id="H9B41804C6E0F4B6CBADA6727522336B7"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Comptroller General shall, upon request and at such reasonable time and in such
reasonable form as the Comptroller General may request, have access to—</text>
<subparagraph id="HBA7ECFE095BF40F6A96B453E8F4FFE0E"><enum>(A)</enum><text>any records or
other information under the control of or used by the Council;</text>
</subparagraph><subparagraph id="H5999915725B94C0EB6D1A895FA009AC2"><enum>(B)</enum><text>any records or
other information under the control of a person or entity acting on behalf of
or under the authority of the Council, to the extent that such records or other
information is relevant to an audit under subsection (a); and</text>
</subparagraph><subparagraph id="H823CFED46EE3463BB8692007EEC75DC3"><enum>(C)</enum><text>the officers,
directors, employees, financial advisors, staff, working groups, and agents and
representatives of the Council (as related to the activities on behalf of the
Council of such agent or representative), at such reasonable times as the
Comptroller General may request.</text>
</subparagraph></paragraph><paragraph id="HE2852389B41E449F97563CE975B7C9A2"><enum>(2)</enum><header>Copies</header><text>The
Comptroller General may make and retain copies of such books, accounts, and
other records, access to which is granted under this section, as the
Comptroller General considers appropriate.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC21035ACA19E465F99AE3C29844E0C00" section-type="subsequent-section"><enum>123.</enum><header>Study of the effects
of size and complexity of financial institutions on capital market efficiency
and economic growth</header>
<subsection id="HEE4BE69E026C49ADB56B6FAF7F94420B"><enum>(a)</enum><header>Study
required</header>
<paragraph id="H7693DA3DF11D4EF08388330FB538053C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Chairperson of
the Council shall carry out a study of the economic impact of possible
financial services regulatory limitations intended to reduce systemic risk.
Such study shall estimate the benefits and costs on the efficiency of capital
markets, on the financial sector, and on national economic growth, of—</text>
<subparagraph id="HB16978BC3F8645FEACCB9C876833D4E3"><enum>(A)</enum><text>explicit or
implicit limits on the maximum size of banks, bank holding companies, and other
large financial institutions;</text>
</subparagraph><subparagraph id="H02E18019BD324C728219362658C4D696"><enum>(B)</enum><text>limits on the
organizational complexity and diversification of large financial
institutions;</text>
</subparagraph><subparagraph id="H2A1A8E7B0E8D4D7B884667A45828C69F"><enum>(C)</enum><text>requirements for
operational separation between business units of large financial institutions
in order to expedite resolution in case of failure;</text>
</subparagraph><subparagraph id="HE481852E1DB1498B957112AA6076F42B"><enum>(D)</enum><text>limits on risk
transfer between business units of large financial institutions;</text>
</subparagraph><subparagraph id="H099FED1A56D040BFA8B6140B0B876827"><enum>(E)</enum><text>requirements to
carry contingent capital or similar mechanisms;</text>
</subparagraph><subparagraph id="H044FE0847173497B9147B9350CA42EEB"><enum>(F)</enum><text>limits on
commingling of commercial and financial activities by large financial
institutions;</text>
</subparagraph><subparagraph id="HF729C85DB32445428AF2C3EB2C567EA3"><enum>(G)</enum><text>segregation
requirements between traditional financial activities and trading or other
high-risk operations in large financial institutions; and</text>
</subparagraph><subparagraph id="H476D1EA61DE3483B88752B84E58A30E8"><enum>(H)</enum><text>other limitations
on the activities or structure of large financial institutions that may be
useful to limit systemic risk.</text>
</subparagraph></paragraph><paragraph id="HD49A57991C69466BB2BECEDDF39AA546"><enum>(2)</enum><header>Recommendations</header><text>The
study required by this section shall include recommendations for the optimal
structure of any limits considered in subparagraphs (A) through (E), in order
to maximize their effectiveness and minimize their economic impact.</text>
</paragraph></subsection><subsection id="H6AE95DADA34A424B9C552E24EFA65A88"><enum>(b)</enum><header>Report</header><text>Not
later than the end of the 180-day period beginning on the date of enactment of
this title, and not later than every 5 years thereafter, the Chairperson shall
issue a report to the Congress containing any findings and determinations made
in carrying out the study required under subsection (a).</text>
</subsection></section></subtitle><subtitle id="H1B571FE1186845838D877A8B01D05796"><enum>B</enum><header>Office of
Financial Research</header>
<section id="HAED748DB02C249EB9E8CB68582AFEA1A"><enum>151.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle—</text>
<paragraph id="H599B692C3E184D6999CE2FD72D8050AB"><enum>(1)</enum><text>the terms
<term>Office</term> and <term>Director</term> mean the Office of Financial
Research established under this subtitle and the Director thereof,
respectively;</text>
</paragraph><paragraph id="HD5F7D95105ED471BBB0070718FDBD3D2"><enum>(2)</enum><text>the term
<term>financial company</term> has the same meaning as in title II, and
includes an insured depository institution and an insurance company;</text>
</paragraph><paragraph id="H33818CC9848C433A9C9DC16AF9DFABF2"><enum>(3)</enum><text>the term
<term>Data Center</term> means the data center established under section
154;</text>
</paragraph><paragraph id="HF0F8120EB77147708894B740FC5423E7"><enum>(4)</enum><text>the term
<term>Research and Analysis Center</term> means the research and analysis
center established under section 154;</text>
</paragraph><paragraph id="HB42969D729034F0EB517326563A89773"><enum>(5)</enum><text>the term
<term>financial transaction data</term> means the structure and legal
description of a financial contract, with sufficient detail to describe the
rights and obligations between counterparties and make possible an independent
valuation;</text>
</paragraph><paragraph id="HDA9A423D7B9E4C269AE39CCD4D5E0A28"><enum>(6)</enum><text>the term
<term>position data</term>—</text>
<subparagraph id="H89FE43279F6042D288D860B033ABBB03"><enum>(A)</enum><text>means data on
financial assets or liabilities held on the balance sheet of a financial
company, where positions are created or changed by the execution of a financial
transaction; and</text>
</subparagraph><subparagraph id="H6F51D0B106244EFB97075858A9EDE0DA"><enum>(B)</enum><text>includes
information that identifies counterparties, the valuation by the financial
company of the position, and information that makes possible an independent
valuation of the position;</text>
</subparagraph></paragraph><paragraph id="H614B9395A2C546F7958665F0B2613BAF"><enum>(7)</enum><text>the term
<term>financial contract</term> means a legally binding agreement between 2 or
more counterparties, describing rights and obligations relating to the future
delivery of items of intrinsic or extrinsic value among the counterparties;
and</text>
</paragraph><paragraph id="H9ED08D5EC7A842F6AA8863A899FD4FEF"><enum>(8)</enum><text>the term
<term>financial instrument</term> means a financial contract in which the terms
and conditions are publicly available, and the roles of one or more of the
counterparties are assignable without the consent of any of the other
counterparties (including common stock of a publicly traded company, government
bonds, or exchange traded futures and options contracts).</text>
</paragraph></section><section id="H191CB3328D41493DB97DA47ACB082F8A"><enum>152.</enum><header>Office of
Financial Research established</header>
<subsection id="H82C9A297B134416FA530485DB645CB77"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Department of the Treasury the Office of Financial
Research.</text>
</subsection><subsection id="H5BF06A04A1AA40288B0605132368B992"><enum>(b)</enum><header>Director</header>
<paragraph id="H9C47EC81026D41059CE148547E2F5372"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H3B4C6448A2C74E6F8AAE2A8CBD0F21AE"><enum>(2)</enum><header>Term of
service</header><text>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.</text>
</paragraph><paragraph id="H24E42D01ABFA4052B85AC65258F74CF9"><enum>(3)</enum><header>Executive
level</header><text>The Director shall be compensated at Level III of the
Executive Schedule.</text>
</paragraph><paragraph id="H1743A2AF740E4CF49041AD8FCCA782C0"><enum>(4)</enum><header>Prohibition on
dual service</header><text>The individual serving in the position of Director
may not, during such service, also serve as the head of any financial
regulatory agency.</text>
</paragraph><paragraph id="HB305CCD02BB24BE983170A9DA4D18DDC"><enum>(5)</enum><header>Responsibilities,
duties, and authority</header><text>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.</text>
</paragraph></subsection><subsection id="HE6600DB3D7B944C390AD6C8E4D265DBA"><enum>(c)</enum><header>Budget</header><text>The
Director, in consultation with the Chairperson, shall establish the annual
budget of the Office.</text>
</subsection><subsection id="HD8D101A73BDF4158A39E20F169E43546"><enum>(d)</enum><header>Office
Personnel</header>
<paragraph id="H95B1C9ABFDD34190887DA1B6627DEF31"><enum>(1)</enum><header>In
general</header><text>The Director, in consultation with the Chairperson, may
fix the number of, and appoint and direct, all employees of the Office.</text>
</paragraph><paragraph id="H2FE6C74E96D942BA8A757EA24904B9C4"><enum>(2)</enum><header>Compensation</header><text>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.</text>
</paragraph><paragraph commented="no" id="H8DD7DC3E89884C8F99FDB2F6121CFC2F"><enum>(3)</enum><header>Comparability</header><text>Section
1206(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1833b(a)) is amended—</text>
<subparagraph commented="no" id="HCC0485A560EF4B1B83864873DF7C2139"><enum>(A)</enum><text>by striking
<quote>Finance Board,</quote> and inserting <quote>Finance Board, the Office of
Financial Research, and the Bureau of Consumer Financial Protection</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="HC0E6E4BC7B9D4A769EB9C9AC2A5F0990"><enum>(B)</enum><text>by striking
<quote>and the Office of Thrift Supervision,</quote>.</text>
</subparagraph></paragraph><paragraph id="HE2B4078C869F4AB38923BC87CB483757"><enum>(4)</enum><header>Senior
executives</header><text>Section 3132(a)(1)(D) of title 5, United States Code,
is amended by striking <quote>and the National Credit Union
Administration;</quote> and inserting <quote>the National Credit Union
Administration, the Bureau of Consumer Financial Protection, and the Office of
Financial Research;</quote>.</text>
</paragraph></subsection><subsection id="H91F0AE7EC54F44B7B7BD877B9162C7D7"><enum>(e)</enum><header>Assistance from
Federal agencies</header><text>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.</text>
</subsection><subsection id="H8AD7194A8B0147B7B7B5EB5DC0D50F2F"><enum>(f)</enum><header>Procurement of
temporary and intermittent services</header><text>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.</text>
</subsection><subsection id="H4918B86DACB64FD9BFD6D7B836993793"><enum>(g)</enum><header>Post-employment
prohibitions</header><text>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.</text>
</subsection><subsection commented="no" id="H68522D3D15834BABAE871ED35E8310E2"><enum>(h)</enum><header>Technical and
professional advisory committees</header><text>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.</text>
</subsection><subsection id="H7482A10DA11D4712A7CF0475B44174EA"><enum>(i)</enum><header>Fellowship
Program</header><text>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.</text>
</subsection><subsection id="HC90EF105BE9F4F4BAE6CD329D025287C"><enum>(j)</enum><header>Executive
schedule compensation</header><text>Section 5314 of title 5, United States
Code, is amended by adding at the end the following new item:</text>
<paragraph id="H5F57F469D6204D488D31C5E85292032D"><enum></enum><text><quote>Director
of the Office of Financial Research.</quote>.</text>
</paragraph></subsection></section><section id="H5B0667FB37B44735BC68FC3847499F46"><enum>153.</enum><header>Purpose and
duties of the Office</header>
<subsection id="H9AAE0A9162DA4B158598FAF49837BABC"><enum>(a)</enum><header>Purpose and
duties</header><text>The purpose of the Office is to support the Council in
fulfilling the purposes and duties of the Council, as set forth in subtitle A,
and to support member agencies, by—</text>
<paragraph id="H401BAEC958F5499BBF17CB53725FF61A"><enum>(1)</enum><text>collecting data on
behalf of the Council, and providing such data to the Council and member
agencies;</text>
</paragraph><paragraph id="HF48F3CC4190D46D0AA103F22A452FACA"><enum>(2)</enum><text>standardizing the
types and formats of data reported and collected;</text>
</paragraph><paragraph id="H79E6D3D22B9E4F9CAC55CB18A206F540"><enum>(3)</enum><text>performing applied
research and essential long-term research;</text>
</paragraph><paragraph id="H8DB63060F47F41CABCABAA5864B662B9"><enum>(4)</enum><text>developing tools
for risk measurement and monitoring;</text>
</paragraph><paragraph id="H31B6C0EB80B4470F995D6C0AC14D6169"><enum>(5)</enum><text>performing other
related services;</text>
</paragraph><paragraph id="H863C3EE6058745AF83510C1168AE9DA5"><enum>(6)</enum><text>making the results
of the activities of the Office available to financial regulatory agencies;
and</text>
</paragraph><paragraph id="H44F2C749EA824DF993920D1D4D8B5B8C"><enum>(7)</enum><text>assisting such
member agencies in determining the types and formats of data authorized by this
Act to be collected by such member agencies.</text>
</paragraph></subsection><subsection id="H7421DCA51B2A41869613C5C16213C07A"><enum>(b)</enum><header>Administrative
authority</header><text>The Office may—</text>
<paragraph id="HAB1CC39848DE45718508E2F71A19730B"><enum>(1)</enum><text>share data and
information, including software developed by the Office, with the Council,
member agencies, and the Bureau of Economic Analysis, which shared data,
information, and software—</text>
<subparagraph id="H9BA4734569CC44C6A5CF995D11E53CF9"><enum>(A)</enum><text>shall be
maintained with at least the same level of security as is used by the Office;
and</text>
</subparagraph><subparagraph id="H677F4E717FB9492F971F4414B9262B81"><enum>(B)</enum><text>may not be shared
with any individual or entity without the permission of the Council;</text>
</subparagraph></paragraph><paragraph id="H76C6F54C2DC04C198F09284E828E5113"><enum>(2)</enum><text>sponsor and
conduct research projects; and</text>
</paragraph><paragraph id="HDC5004E777B04E81BE036633A1149913"><enum>(3)</enum><text>assist, on a
reimbursable basis, with financial analyses undertaken at the request of other
Federal agencies that are not member agencies.</text>
</paragraph></subsection><subsection id="HA2EBC82DCD654D2C9BA1367B2E5B0683"><enum>(c)</enum><header>Rulemaking
authority</header>
<paragraph id="H29711ACE05C1406790E4AA04A69F4958"><enum>(1)</enum><header>Scope</header><text>The
Office, in consultation with the Chairperson, shall issue rules, regulations,
and orders only to the extent necessary to carry out the purposes and duties
described in paragraphs (1), (2), and (7) of subsection (a).</text>
</paragraph><paragraph id="HBF6C0135A6A14B9E99F7252F7A41279F"><enum>(2)</enum><header>Standardization</header><text>Member
agencies, in consultation with the Office, shall implement regulations
promulgated by the Office under paragraph (1) to standardize the types and
formats of data reported and collected on behalf of the Council, as described
in subsection (a)(2). If a member agency fails to implement such regulations
prior to the expiration of the 3-year period following the date of publication
of final regulations, the Office, in consultation with the Chairperson, may
implement such regulations with respect to the financial entities under the
jurisdiction of the member agency. This paragraph shall not supersede or
interfere with the independent authority of a member agency under other law to
collect data, in such format and manner as the member agency requires.</text>
</paragraph></subsection><subsection id="HF44DA372DE264AEE9FC8BF51A7FB23CE"><enum>(d)</enum><header>Testimony</header>
<paragraph id="HA4CA3C9B37BF4E3BA90B93F544BB5679"><enum>(1)</enum><header>In
general</header><text>The Director of the Office shall report to and testify
before the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives annually on
the activities of the Office, including the work of the Data Center and the
Research and Analysis Center, and the assessment of the Office of significant
financial market developments and potential emerging threats to the financial
stability of the United States.</text>
</paragraph><paragraph id="HC088A6BD31A24925A8DF40CDE8DA4F4A"><enum>(2)</enum><header>No prior
review</header><text>No officer or agency of the United States shall have any
authority to require the Director to submit the testimony required under
paragraph (1) or other congressional testimony to any officer or agency of the
United States for approval, comment, or review prior to the submission of such
testimony. Any such testimony to Congress shall include a statement that the
views expressed therein are those of the Director and do not necessarily
represent the views of the President.</text>
</paragraph></subsection><subsection commented="no" id="HC1E5647E50E447668049DD6588E66210"><enum>(e)</enum><header>Additional
reports</header><text>The Director may provide additional reports to Congress
concerning the financial stability of the United States. The Director shall
notify the Council of any such additional reports provided to Congress.</text>
</subsection><subsection commented="no" id="H40F72D7934F84173BBFC4129A462D68D"><enum>(f)</enum><header>Subpoena</header>
<paragraph commented="no" id="HB233F87B85A84FC680DE5DAD95F451F0"><enum>(1)</enum><header>In
general</header><text>The Director may require from a financial company, by
subpoena, the production of the data requested under subsection (a)(1) and
section 154(b)(1), but only upon a written finding by the Director that—</text>
<subparagraph commented="no" id="HE92ADF1BBD384262A684D3C21C02D700"><enum>(A)</enum><text>such data is
required to carry out the functions described under this subtitle; and</text>
</subparagraph><subparagraph commented="no" id="H9B18D856EEFE41C2B7CA2CE3678848BA"><enum>(B)</enum><text>the Office has
coordinated with the relevant primary financial regulatory agency, as required
under section 154(b)(1)(B)(ii).</text>
</subparagraph></paragraph><paragraph commented="no" id="HD0AA9EBF603F4DE892074E5CFE3E5FF5"><enum>(2)</enum><header>Format</header><text>Subpoenas
under paragraph (1) shall bear the signature of the Director, and shall be
served by any person or class of persons designated by the Director for that
purpose.</text>
</paragraph><paragraph commented="no" id="H77BBBDF74FA94D3F89D435A6ABA910E1"><enum>(3)</enum><header>Enforcement</header><text>In
the case of contumacy or failure to obey a subpoena, the subpoena shall be
enforceable by order of any appropriate district court of the United States.
Any failure to obey the order of the court may be punished by the court as a
contempt of court.</text>
</paragraph></subsection></section><section id="H8ECF180B3CCB4059BD316DD7A1711102"><enum>154.</enum><header>Organizational
structure; responsibilities of primary programmatic units</header>
<subsection id="HEAECFA8877014E23B0BBC8CE577BF366"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There are established
within the Office, to carry out the programmatic responsibilities of the
Office—</text>
<paragraph id="HE8A505DAF4984C09BF0190DA2BC5FE78"><enum>(1)</enum><text>the Data Center;
and</text>
</paragraph><paragraph id="HA7C78529C0CB4C1D92492D9323258C47"><enum>(2)</enum><text>the Research and
Analysis Center.</text>
</paragraph></subsection><subsection id="H7A5398E1F36C4597ADBA366EBD91FBE3"><enum>(b)</enum><header>Data
Center</header>
<paragraph id="HC7E4B0B80086442DB1AAD5EB85C960EA"><enum>(1)</enum><header>General
duties</header>
<subparagraph id="H6850C3A5286F43AB81FC86CAC01EB4AF"><enum>(A)</enum><header>Data
collection</header><text>The Data Center, on behalf of the Council, shall
collect, validate, and maintain all data necessary to carry out the duties of
the Data Center, as described in this subtitle. The data assembled shall be
obtained from member agencies, commercial data providers, publicly available
data sources, and financial entities under subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="HE27F37E212F04F2FB9E22AEF39A3E670"><enum>(B)</enum><header>Authority</header>
<clause commented="no" id="H0544260AB61946439774377F7F6818AF"><enum>(i)</enum><header>In
general</header><text>The Office may, as determined by the Council or by the
Director in consultation with the Council, require the submission of periodic
and other reports from any financial company for the purpose of assessing the
extent to which a financial activity or financial market in which the financial
company participates, or the financial company itself, poses a threat to the
financial stability of the United States.</text>
</clause><clause commented="no" id="H0FCDEA1884054D17B040CF7E999F80DF"><enum>(ii)</enum><header>Mitigation of
report burden</header><text>Before requiring the submission of a report from
any financial company that is regulated by a member agency, any primary
financial regulatory agency, a foreign supervisory authority, or the Office
shall coordinate with such agencies or authority, and shall, whenever possible,
rely on information available from such agencies or authority.</text>
</clause><clause id="H4BAEB79BA07A4AB3A4191CF9E729C7FC"><enum>(iii)</enum><header>Collection of
financial transaction and position data</header><text>The Office shall collect,
on a schedule determined by the Director, in consultation with the Council,
financial transaction data and position data from financial companies.</text>
</clause></subparagraph><subparagraph id="H075F46B6918B402E960A89C317CEF94D"><enum>(C)</enum><header>Rulemaking</header><text>The
Office shall promulgate regulations pursuant to subsections (a)(1), (a)(2),
(a)(7), and (c)(1) of section 153 regarding the type and scope of the data to
be collected by the Data Center under this paragraph.</text>
</subparagraph></paragraph><paragraph id="H8B173F6DE7324E80BFC78B38C2D1547B"><enum>(2)</enum><header>Responsibilities</header>
<subparagraph id="H78D513F3CC7A4ED295793FE153792BD9"><enum>(A)</enum><header>Publication</header><text>The
Data Center shall prepare and publish, in a manner that is easily accessible to
the public—</text>
<clause id="H7F0D50CF8F644CC3BA409B119C5711C5"><enum>(i)</enum><text>a
financial company reference database;</text>
</clause><clause id="H340958831494414FB18B032B3F06C008"><enum>(ii)</enum><text>a
financial instrument reference database; and</text>
</clause><clause id="H449C792BF3C94236BDDE5433D6F02EE8"><enum>(iii)</enum><text>formats and
standards for Office data, including standards for reporting financial
transaction and position data to the Office.</text>
</clause></subparagraph><subparagraph id="H3964009989FB4C678093773E6CC4ABB4"><enum>(B)</enum><header>Confidentiality</header><text>The
Data Center shall not publish any confidential data under subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="H158D29182BC048928C934DD146B2A218"><enum>(3)</enum><header>Information
security</header><text>The Director shall ensure that data collected and
maintained by the Data Center are kept secure and protected against
unauthorized disclosure.</text>
</paragraph><paragraph id="HFDC40CB67A5148B0A0C8C44478098D7B"><enum>(4)</enum><header>Catalog of
financial entities and instruments</header><text>The Data Center shall maintain
a catalog of the financial entities and instruments reported to the
Office.</text>
</paragraph><paragraph id="HBA29F38FB6FC4875BE07700CF1B5A5C0"><enum>(5)</enum><header>Availability to
the council and member agencies</header><text>The Data Center shall make data
collected and maintained by the Data Center available to the Council and member
agencies, as necessary to support their regulatory responsibilities.</text>
</paragraph><paragraph id="H2D1CBF0585C64D778507B5AD03B6CDD5"><enum>(6)</enum><header>Other
authority</header><text>The Office shall, after consultation with the member
agencies, provide certain data to financial industry participants and to the
general public to increase market transparency and facilitate research on the
financial system, to the extent that intellectual property rights are not
violated, business confidential information is properly protected, and the
sharing of such information poses no significant threats to the financial
system of the United States.</text>
</paragraph></subsection><subsection id="HDFD681F674F04B7590515576798C6FBF"><enum>(c)</enum><header>Research and
analysis center</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCC4C992C5F064182A86E9FF211B6AACE"><enum>(1)</enum><header display-inline="yes-display-inline">General duties</header><text>The Research
and Analysis Center, on behalf of the Council, shall develop and maintain
independent analytical capabilities and computing resources—</text>
<subparagraph id="HA0A499A020774CC29FB89F5CDD44C1FE"><enum>(A)</enum><text>to develop and
maintain metrics and reporting systems for risks to the financial stability of
the United States;</text>
</subparagraph><subparagraph id="HDDB5E008E77F4F058421BBE51CF6D5E6"><enum>(B)</enum><text>to monitor,
investigate, and report on changes in systemwide risk levels and patterns to
the Council and Congress;</text>
</subparagraph><subparagraph id="H5117EC63092C46279B1A343166E39B84"><enum>(C)</enum><text>to conduct,
coordinate, and sponsor research to support and improve regulation of financial
entities and markets;</text>
</subparagraph><subparagraph id="HDBC6564885AC4D2A88DCAE7FB8668F38"><enum>(D)</enum><text>to evaluate and
report on stress tests or other stability-related evaluations of financial
entities overseen by the member agencies;</text>
</subparagraph><subparagraph id="HAC85D2F7525441F4AB4AE461909DDE91"><enum>(E)</enum><text>to maintain
expertise in such areas as may be necessary to support specific requests for
advice and assistance from financial regulators;</text>
</subparagraph><subparagraph id="H3A0A3C371E684B52A324D59621261297"><enum>(F)</enum><text>to investigate
disruptions and failures in the financial markets, report findings, and make
recommendations to the Council based on those findings;</text>
</subparagraph><subparagraph id="H7D3342E71E65493D97BB71CFAD14B40D"><enum>(G)</enum><text>to conduct studies
and provide advice on the impact of policies related to systemic risk;
and</text>
</subparagraph><subparagraph id="HB6A866C69CF94F73B9CA5C6D4F6D084C"><enum>(H)</enum><text>to promote best
practices for financial risk management.</text>
</subparagraph></paragraph></subsection><subsection id="HDC34D80408684C7682270A8055E9675B"><enum>(d)</enum><header>Reporting
responsibilities</header>
<paragraph id="H27A50440C48C488BABBA6F44C6F609D2"><enum>(1)</enum><header>Required
reports</header><text>Not later than 2 years after the date of enactment of
this Act, and not later than 120 days after the end of each fiscal year
thereafter, the Office shall prepare and submit a report to Congress.</text>
</paragraph><paragraph id="H2C9D839F85A44303B5FFF61F65A3CA66"><enum>(2)</enum><header>Content</header><text>Each
report required by this subsection shall assess the state of the United States
financial system, including—</text>
<subparagraph id="H3FC18D1C9CB0487CB14A0CD27A4B45A5"><enum>(A)</enum><text>an analysis of any
threats to the financial stability of the United States;</text>
</subparagraph><subparagraph id="H85DCDB3BA20E4E1AB8DA741F8FBBB490"><enum>(B)</enum><text>the status of the
efforts of the Office in meeting the mission of the Office; and</text>
</subparagraph><subparagraph id="H82C7DDD5316A437B8D3E004931D49472"><enum>(C)</enum><text>key findings from
the research and analysis of the financial system by the Office.</text>
</subparagraph></paragraph></subsection></section><section id="HB9216C9FD65C4B519F33A754504B4644"><enum>155.</enum><header>Funding</header>
<subsection id="HE2397CBA2E1F445B8D3672FE083DA8BC"><enum>(a)</enum><header>Financial
research fund</header>
<paragraph id="H61A20E873C0A421A8B97B65F5FAA94F8"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a separate fund to be known as the <quote>Financial Research
Fund</quote>.</text>
</paragraph><paragraph id="HAF20A090718D47FCACC7C9E5C7876E86"><enum>(2)</enum><header>Fund
receipts</header><text>All amounts provided to the Office under subsection (c),
and all assessments that the Office receives under subsection (d) shall be
deposited into the Financial Research Fund.</text>
</paragraph><paragraph id="H8D05A9C67E7644B58765667752BD44F3"><enum>(3)</enum><header>Investments
authorized</header>
<subparagraph id="H8675A471F8004E4AA06A64337C92075D"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Director may request the Secretary to invest
the portion of the Financial Research Fund that is not, in the judgment of the
Director, required to meet the needs of the Office.</text>
</subparagraph><subparagraph id="H137C303B5E034D669854CC5A252B9C9A"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary in
obligations of the United States or obligations that are guaranteed as to
principal and interest by the United States, with maturities suitable to the
needs of the Financial Research Fund, as determined by the Director.</text>
</subparagraph></paragraph><paragraph id="HCF813C610FB344719C907C7EB6F73C8A"><enum>(4)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Financial Research Fund shall be
credited to and form a part of the Financial Research Fund.</text>
</paragraph></subsection><subsection id="HBF228FF4C1654DB685A970BE07239BB3"><enum>(b)</enum><header>Use of
funds</header>
<paragraph id="HD4084BD62DEF461185606FBA9AB8E41C"><enum>(1)</enum><header>In
general</header><text>Funds obtained by, transferred to, or credited to the
Financial Research Fund shall be immediately available to the Office, and shall
remain available until expended, to pay the expenses of the Office in carrying
out the duties and responsibilities of the Office.</text>
</paragraph><paragraph id="H618092927FC945AFAC1D781C79FD18E4"><enum>(2)</enum><header>Fees,
assessments, and other funds not government funds</header><text>Funds obtained
by, transferred to, or credited to the Financial Research Fund shall not be
construed to be Government funds or appropriated moneys.</text>
</paragraph><paragraph id="H28AF7284767B4C9EB4BB6D0436B37AD6"><enum>(3)</enum><header>Amounts not
subject to apportionment</header><text>Notwithstanding any other provision of
law, amounts in the Financial Research Fund shall not be subject to
apportionment for purposes of chapter 15 of title 31, United States Code, or
under any other authority, or for any other purpose.</text>
</paragraph></subsection><subsection id="HC3D9088CD6F04DFDBB7A996614E5EAAF"><enum>(c)</enum><header>Interim
funding</header><text>During the 2-year period following the date of enactment
of this Act, the Board of Governors shall provide to the Office an amount
sufficient to cover the expenses of the Office.</text>
</subsection><subsection id="HA5904C8202354F9596DDC3AD1D9C8C4E"><enum>(d)</enum><header>Permanent
self-funding</header><text>Beginning 2 years after the date of enactment of
this Act, the Secretary shall establish, by regulation, and with the approval
of the Council, an assessment schedule, including the assessment base and
rates, applicable to bank holding companies with total consolidated assets of
$50,000,000,000 or greater and nonbank financial companies supervised by the
Board of Governors, that takes into account differences among such companies,
based on the considerations for establishing the prudential standards under
section 115, to collect assessments equal to the total expenses of the
Office.</text>
</subsection></section><section id="HE785F89C9B614E38BC81F84BA20C93FA"><enum>156.</enum><header>Transition
oversight</header>
<subsection id="H05771465041944B1A8983C607A70E1A6"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to ensure that the Office—</text>
<paragraph id="H86C442A0C0CD4D6A814B565C26D30862"><enum>(1)</enum><text>has an orderly and
organized startup;</text>
</paragraph><paragraph id="HCA2DA2BC41E549D7B21F00811819E75B"><enum>(2)</enum><text>attracts and
retains a qualified workforce; and</text>
</paragraph><paragraph id="H63B708266FC140C3A93BD89C4E2DCC8E"><enum>(3)</enum><text>establishes
comprehensive employee training and benefits programs.</text>
</paragraph></subsection><subsection id="HECE2BD86C79A4479A4B2193EE76D2609"><enum>(b)</enum><header>Reporting
requirement</header>
<paragraph id="H69A23C8CD3D944A0BC953A1734E7343D"><enum>(1)</enum><header>In
general</header><text>The Office shall submit an annual report to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that includes the plans
described in paragraph (2).</text>
</paragraph><paragraph id="HBC84B421663E49EE9AF5F8CEB1F211DF"><enum>(2)</enum><header>Plans</header><text>The
plans described in this paragraph are as follows:</text>
<subparagraph id="H6C24E2FB962C4540BB288A81344E9D25"><enum>(A)</enum><header>Training and
workforce development plan</header><text>The Office shall submit a training and
workforce development plan that includes, to the extent practicable—</text>
<clause id="HF766A1F51B15405E9F0B59143C40ECF7"><enum>(i)</enum><text>identification of
skill and technical expertise needs and actions taken to meet those
requirements;</text>
</clause><clause id="H50D70DAE68AA42F5B9092D76A96D54FD"><enum>(ii)</enum><text>steps taken to
foster innovation and creativity;</text>
</clause><clause id="H3F673F7E7F36434AA63DEA1CEBF5E1B0"><enum>(iii)</enum><text>leadership
development and succession planning; and</text>
</clause><clause id="H68B415265446434F9824A6688D080462"><enum>(iv)</enum><text>effective use of
technology by employees.</text>
</clause></subparagraph><subparagraph id="H6338BB63A8B343D99984FFB25614219A"><enum>(B)</enum><header>Workplace
flexibility plan</header><text>The Office shall submit a workforce flexibility
plan that includes, to the extent practicable—</text>
<clause id="HE918617E84484C55BFCE6981323F17AA"><enum>(i)</enum><text>telework;</text>
</clause><clause id="H012888A5EC76493A93F666182B49F917"><enum>(ii)</enum><text>flexible work
schedules;</text>
</clause><clause id="H9A59742A7B2542B2924DC04EE54F431D"><enum>(iii)</enum><text>phased
retirement;</text>
</clause><clause id="H5D35E70BBA88487F91BF850C8F22700F"><enum>(iv)</enum><text>reemployed
annuitants;</text>
</clause><clause id="H6A83C38A10474DCE8DC8994323E271FC"><enum>(v)</enum><text>part-time
work;</text>
</clause><clause id="H02846402A571425E9C097869B0CF5E4A"><enum>(vi)</enum><text>job
sharing;</text>
</clause><clause id="H17816B21DB934D708C55CA0C4D3606C4"><enum>(vii)</enum><text>parental leave
benefits and childcare assistance;</text>
</clause><clause id="H0B0BF5727925461FAB6FD90EFD312719"><enum>(viii)</enum><text>domestic
partner benefits;</text>
</clause><clause id="HF4FEF2DB41F84756B0B6B0AA48F20A60"><enum>(ix)</enum><text>other workplace
flexibilities; or</text>
</clause><clause id="H333027D5723A43329053EBFED4CDC4BB"><enum>(x)</enum><text>any
combination of the items described in clauses (i) through (ix).</text>
</clause></subparagraph><subparagraph id="HF668C1AB3E084593A4458283DAAD84F9"><enum>(C)</enum><header>Recruitment and
retention plan</header><text>The Office shall submit a recruitment and
retention plan that includes, to the extent practicable, provisions relating
to—</text>
<clause id="HEE4951AA4C9F408B92AFE17CC3D2F87C"><enum>(i)</enum><text>the
steps necessary to target highly qualified applicant pools with diverse
backgrounds;</text>
</clause><clause id="H752000FD5ACB4402B9DC2AD8C26E34AE"><enum>(ii)</enum><text>streamlined
employment application processes;</text>
</clause><clause id="HD9DE352C304F4E5990720259237120C0"><enum>(iii)</enum><text>the provision of
timely notification of the status of employment applications to applicants;
and</text>
</clause><clause id="H4D4A8041455C4F80A36678714F04CD02"><enum>(iv)</enum><text>the
collection of information to measure indicators of hiring effectiveness.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H4615BAAA1A4D4333A1AC263274250F49"><enum>(c)</enum><header>Expiration</header><text>The
reporting requirement under subsection (b) shall terminate 5 years after the
date of enactment of this Act.</text>
</subsection><subsection id="H8A62BBB2F67045D3A65013E115185498"><enum>(d)</enum><header>Rule of
construction</header><text>Nothing in this section may be construed to
affect—</text>
<paragraph id="HFA009BD5EE214976BEAE4D2DC677A081"><enum>(1)</enum><text>a
collective bargaining agreement, as that term is defined in section 7103(a)(8)
of title 5, United States Code, that is in effect on the date of enactment of
this Act; or</text>
</paragraph><paragraph id="H922C726BF93D469F97DE3E2B0BEC10D3"><enum>(2)</enum><text>the rights of
employees under chapter 71 of title 5, United States Code.</text>
</paragraph></subsection></section></subtitle><subtitle id="HC4031EF2EC5448A6A9A846E0261FF45D"><enum>C</enum><header>Additional Board
of Governors authority for certain nonbank financial companies and bank holding
companies</header>
<section id="H801A3BC3415D45D3BE7BC367F41F9016"><enum>161.</enum><header>Reports by and
examinations of nonbank financial companies by the Board of Governors</header>
<subsection id="H41D1E86C85FE4F9D8B0691F03BB349A8"><enum>(a)</enum><header>Reports</header>
<paragraph id="H290881B4E2C14196B8046490151ADC06"><enum>(1)</enum><header>In
General</header><text>The Board of Governors may require each nonbank financial
company supervised by the Board of Governors, and any subsidiary thereof, to
submit reports under oath, to keep the Board of Governors informed as
to—</text>
<subparagraph id="H92C7416893F94CFAAC8BC2FD607249E5"><enum>(A)</enum><text>the financial
condition of the company or subsidiary, systems of the company or subsidiary
for monitoring and controlling financial, operating, and other risks, and the
extent to which the activities and operations of the company or subsidiary pose
a threat to the financial stability of the United States; and</text>
</subparagraph><subparagraph id="H085B3D234D3A40E48C45DEF9C6C8E8DF"><enum>(B)</enum><text>compliance by the
company or subsidiary with the requirements of this title.</text>
</subparagraph></paragraph><paragraph id="H3A3F7879DDC641FDB992C497D1054DD2"><enum>(2)</enum><header>Use of existing
reports and information</header><text>In carrying out subsection (a), the Board
of Governors shall, to the fullest extent possible, use—</text>
<subparagraph id="H4BE47DB449684FD0914F5AADC98921DD"><enum>(A)</enum><text>reports and
supervisory information that a nonbank financial company or subsidiary thereof
has been required to provide to other Federal or State regulatory
agencies;</text>
</subparagraph><subparagraph id="HB5E520D08C8C424AA8D9EFA57B8E82F0"><enum>(B)</enum><text>information
otherwise obtainable from Federal or State regulatory agencies;</text>
</subparagraph><subparagraph id="H966E756EA60D4524A8832EE54B162116"><enum>(C)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subparagraph><subparagraph id="HB93F5FAF50C54BFA8CB556BFDC5A6FF8"><enum>(D)</enum><text>externally audited
financial statements of such company or subsidiary.</text>
</subparagraph></paragraph><paragraph id="H2FA390493ECC4F2D8A7E9E9FDF637848"><enum>(3)</enum><header>Availability</header><text>Upon
the request of the Board of Governors, a nonbank financial company supervised
by the Board of Governors, or a subsidiary thereof, shall promptly provide to
the Board of Governors any information described in paragraph (2).</text>
</paragraph></subsection><subsection commented="no" id="HECE6B14512B745CA84B35D5567523735"><enum>(b)</enum><header>Examinations</header>
<paragraph commented="no" id="H96078E1CBC1F4FDCA4562AEB12062848"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Board of Governors may
examine any nonbank financial company supervised by the Board of Governors and
any subsidiary of such company, to inform the Board of Governors of—</text>
<subparagraph commented="no" id="H9A6CA2CAB47E4495819659B4E4475CAF"><enum>(A)</enum><text>the nature of the
operations and financial condition of the company and such subsidiary;</text>
</subparagraph><subparagraph commented="no" id="HD0FE3F4846EA47ADB1BC5F6B7E2B138A"><enum>(B)</enum><text>the financial,
operational, and other risks of the company or such subsidiary that may pose a
threat to the safety and soundness of such company or subsidiary or to the
financial stability of the United States;</text>
</subparagraph><subparagraph commented="no" id="HBE9895F463EB4C11B23FAEFE0987E661"><enum>(C)</enum><text>the systems for
monitoring and controlling such risks; and</text>
</subparagraph><subparagraph commented="no" id="H0680EF09E1F44A08A9C5BDF2E58F7C8C"><enum>(D)</enum><text>compliance by the
company or such subsidiary with the requirements of this title.</text>
</subparagraph></paragraph><paragraph commented="no" id="H8F7D38059C6B4043A1D64E8AC66A429F"><enum>(2)</enum><header>Use of
examination reports and information</header><text>For purposes of this
subsection, the Board of Governors shall, to the fullest extent possible, rely
on reports of examination of any subsidiary depository institution or
functionally regulated subsidiary made by the primary financial regulatory
agency for that subsidiary, and on information described in subsection
(a)(2).</text>
</paragraph></subsection><subsection id="HFA9C19A8F9B7482EB174BE4962831F48"><enum>(c)</enum><header>Coordination
with primary financial regulatory agency</header><text>The Board of Governors
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB052826972414211A402658FFB1B2352"><enum>(1)</enum><text display-inline="yes-display-inline">provide reasonable notice to, and consult
with, the primary financial regulatory agency for any subsidiary before
requiring a report or commencing an examination of such subsidiary under this
section; and</text>
</paragraph><paragraph id="HCA6F2BD7634D47A2994C95E5CB463AE1"><enum>(2)</enum><text>avoid duplication
of examination activities, reporting requirements, and requests for
information, to the fullest extent possible.</text>
</paragraph></subsection></section><section id="HD6AF49254B674A378914D71625B06B96"><enum>162.</enum><header>Enforcement</header>
<subsection id="H052DC94BD9C24E938BEE552F2E010E58"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b), a nonbank financial
company supervised by the Board of Governors and any subsidiaries of such
company (other than any depository institution subsidiary) shall be subject to
the provisions of subsections (b) through (n) of section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818), in the same manner and to the same
extent as if the company were a bank holding company, as provided in section
8(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)(3)).</text>
</subsection><subsection id="H6FC2C21214D04344B2AFB760BA8F5C82"><enum>(b)</enum><header>Enforcement
authority for functionally regulated subsidiaries</header>
<paragraph id="HA11C9ECDCC8D42B9A000A5DFFD464DF7"><enum>(1)</enum><header>Referral</header><text>If
the Board of Governors determines that a condition, practice, or activity of a
depository institution subsidiary or functionally regulated subsidiary of a
nonbank financial company supervised by the Board of Governors does not comply
with the regulations or orders prescribed by the Board of Governors under this
Act, or otherwise poses a threat to the financial stability of the United
States, the Board of Governors may recommend, in writing, to the primary
financial regulatory agency for the subsidiary that such agency initiate a
supervisory action or enforcement proceeding. The recommendation shall be
accompanied by a written explanation of the concerns giving rise to the
recommendation.</text>
</paragraph><paragraph id="H5C436F9EF28B403B9C4C6EF3FD56F398"><enum>(2)</enum><header>Back-up
authority of the Board of Governors</header><text>If, during the 60-day period
beginning on the date on which the primary financial regulatory agency receives
a recommendation under paragraph (1), the primary financial regulatory agency
does not take supervisory or enforcement action against a subsidiary that is
acceptable to the Board of Governors, the Board of Governors (upon a vote of
its members) may take the recommended supervisory or enforcement action, as if
the subsidiary were a bank holding company subject to supervision by the Board
of Governors.</text>
</paragraph></subsection></section><section commented="no" id="H262AFD1E70224B2885663D7226FFB7E1"><enum>163.</enum><header>Acquisitions</header>
<subsection commented="no" id="H0A2D9DE88B66482F910089C574DA5B4E"><enum>(a)</enum><header>Acquisitions of
banks; treatment as a bank holding company</header><text>For purposes of
section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842), a nonbank
financial company supervised by the Board of Governors shall be deemed to be,
and shall be treated as, a bank holding company.</text>
</subsection><subsection commented="no" id="HDAAAD8C185E54BEEA6B5BDC9591AEFF9"><enum>(b)</enum><header>Acquisition of
nonbank companies</header>
<paragraph commented="no" id="HF5374371E5B44434AB78037AF329E579"><enum>(1)</enum><header>Prior notice for
large acquisitions</header><text>Notwithstanding section 4(k)(6)(B) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)), a bank holding company
with total consolidated assets equal to or greater than $50,000,000,000 or a
nonbank financial company supervised by the Board of Governors shall not
acquire direct or indirect ownership or control of any voting shares of any
company (other than an insured depository institution) that is engaged in
activities described in section 4(k) of the Bank Holding Company Act of 1956
having total consolidated assets of $10,000,000,000 or more, without providing
written notice to the Board of Governors in advance of the transaction.</text>
</paragraph><paragraph commented="no" id="H3179F5588E314486AAE58C66F4AB2DE9"><enum>(2)</enum><header>Exemptions</header><text>The
prior notice requirement in paragraph (1) shall not apply with regard to the
acquisition of shares that would qualify for the exemptions in section 4(c) or
section 4(k)(4)(E) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)
and (k)(4)(E)).</text>
</paragraph><paragraph commented="no" id="H597CD65C0886417CB7686717061A93BB"><enum>(3)</enum><header>Notice
procedures</header><text>The notice procedures set forth in section 4(j)(1) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)(1)), without regard to
section 4(j)(3) of that Act, shall apply to an acquisition of any company
(other than an insured depository institution) by a bank holding company with
total consolidated assets equal to or greater than $50,000,000,000 or a nonbank
financial company supervised by the Board of Governors, as described in
paragraph (1), including any such company engaged in activities described in
section 4(k) of that Act.</text>
</paragraph><paragraph commented="no" id="HBC97EAC43DCC4214A2C04854FF4F6E73"><enum>(4)</enum><header>Standards for
review</header><text>In addition to the standards provided in section 4(j)(2)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(j)(2)), the Board of
Governors shall consider the extent to which the proposed acquisition would
result in greater or more concentrated risks to global or United States
financial stability or the United States economy.</text>
</paragraph><paragraph commented="no" id="H1916370991DF4DD89E4ECAA6CAAE1345"><enum>(5)</enum><header>Hart-Scott-Rodino
filing requirement</header><text>Solely for purposes of section 7A(c)(8) of the
Clayton Act (15 U.S.C. 18a(c)(8)), the transactions subject to the requirements
of paragraph (1) shall be treated as if Board of Governors approval is not
required.</text>
</paragraph></subsection></section><section commented="no" id="H17D519DCA2AF4E67B2A988F74EBFFD9F"><enum>164.</enum><header>Prohibition
against management interlocks between certain financial companies</header><text display-inline="no-display-inline">A nonbank financial company supervised by
the Board of Governors shall be treated as a bank holding company for purposes
of the Depository Institutions Management Interlocks Act (12 U.S.C. 3201 et
seq.), except that the Board of Governors shall not exercise the authority
provided in section 7 of that Act (12 U.S.C. 3207) to permit service by a
management official of a nonbank financial company supervised by the Board of
Governors as a management official of any bank holding company with total
consolidated assets equal to or greater than $50,000,000,000, or other
nonaffiliated nonbank financial company supervised by the Board of Governors
(other than to provide a temporary exemption for interlocks resulting from a
merger, acquisition, or consolidation).</text>
</section><section commented="no" id="HAAF8CE7AAEA44CE0A1247D4DC080E3D4"><enum>165.</enum><header>Enhanced
supervision and prudential standards for nonbank financial companies supervised
by the Board of Governors and certain bank holding companies</header>
<subsection commented="no" id="HEF9869BEE04D4F7B9F0F15C083170C6E"><enum>(a)</enum><header>In
general</header>
<paragraph id="HC0912288963741309CDE4CBBF53E54F3"><enum>(1)</enum><header>Purpose</header><text>In
order to prevent or mitigate risks to the financial stability of the United
States that could arise from the material financial distress or failure, or
ongoing activities, of large, interconnected financial institutions, the Board
of Governors shall, on its own or pursuant to recommendations by the Council
under section 115, establish prudential standards for nonbank financial
companies supervised by the Board of Governors and bank holding companies with
total consolidated assets equal to or greater than $50,000,000,000 that—</text>
<subparagraph id="H5C03BFC0B5A14C4381D33F1FB0426C1A"><enum>(A)</enum><text>are more stringent
than the standards and requirements applicable to nonbank financial companies
and bank holding companies that do not present similar risks to the financial
stability of the United States; and</text>
</subparagraph><subparagraph id="HFF1CAB2065D64190A92F99778D64B595"><enum>(B)</enum><text>increase in
stringency, based on the considerations identified in subsection (b)(3).</text>
</subparagraph></paragraph><paragraph id="H802456D054034949A9D0830EB9D01EFC"><enum>(2)</enum><header>Tailored
application</header>
<subparagraph id="HCDD854BF3352420996AF5EB68DCD4B50"><enum>(A)</enum><header>In
general</header><text>In prescribing more stringent prudential standards under
this section, the Board of Governors may, on its own or pursuant to a
recommendation by the Council in accordance with section 115, differentiate
among companies on an individual basis or by category, taking into
consideration their capital structure, riskiness, complexity, financial
activities (including the financial activities of their subsidiaries), size,
and any other risk-related factors that the Board of Governors deems
appropriate.</text>
</subparagraph><subparagraph id="H2BA7CC08CCF244FD93D0173980341132"><enum>(B)</enum><header>Adjustment of
threshold for application of certain standards</header><text>The Board of
Governors may, pursuant to a recommendation by the Council in accordance with
section 115, establish an asset threshold above $50,000,000,000 for the
application of any standard established under subsections (c) through
(g).</text>
</subparagraph></paragraph></subsection><subsection id="H5DF567C36F7A4D83990B974514FD100F"><enum>(b)</enum><header>Development of
prudential standards</header>
<paragraph id="H59824FC127454A1BBD704E554CCDD0EE"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H80EBB67D8DC14E519283D138370C3EB0"><enum>(A)</enum><header>Required
standards</header><text>The Board of Governors shall establish prudential
standards for nonbank financial companies supervised by the Board of Governors
and bank holding companies described in subsection (a), that shall
include—</text>
<clause id="HD41A9C09F912440C99B7CDFD731BF6E8"><enum>(i)</enum><text>risk-based capital
requirements and leverage limits, unless the Board of Governors, in
consultation with the Council, determines that such requirements are not
appropriate for a company subject to more stringent prudential standards
because of the activities of such company (such as investment company
activities or assets under management) or structure, in which case, the Board
of Governors shall apply other standards that result in similarly stringent
risk controls;</text>
</clause><clause id="HC0C1D96CBA76489BA3F6C113FC2434C3"><enum>(ii)</enum><text>liquidity
requirements;</text>
</clause><clause id="H404C12CBD705447BAE2C7AB187FE75CD"><enum>(iii)</enum><text>overall risk
management requirements;</text>
</clause><clause id="H1D2FC5CA99814908B6DE379D3FAE7F31"><enum>(iv)</enum><text>resolution plan
and credit exposure report requirements; and</text>
</clause><clause id="H2047FC541E1D483996ED86A3AF65A2E7"><enum>(v)</enum><text>concentration
limits.</text>
</clause></subparagraph><subparagraph id="H01D1A5642E3543FE95F691AD9042D276"><enum>(B)</enum><header>Additional
standards authorized</header><text>The Board of Governors may establish
additional prudential standards for nonbank financial companies supervised by
the Board of Governors and bank holding companies described in subsection (a),
that include—</text>
<clause id="HDD3B5FE2B23A461B807CBAB33FA2915E"><enum>(i)</enum><text>a
contingent capital requirement;</text>
</clause><clause id="HA1D3751B53664DAEB7761C2A3FC2CB15"><enum>(ii)</enum><text>enhanced public
disclosures;</text>
</clause><clause id="H10147E052DE9461683256AD78526E310"><enum>(iii)</enum><text>short-term debt
limits; and</text>
</clause><clause id="HF57DC5E1747141D6A35BB449DCE29335"><enum>(iv)</enum><text>such other
prudential standards as the Board or Governors, on its own or pursuant to a
recommendation made by the Council in accordance with section 115, determines
are appropriate.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFEB737031CB474BB4BA5F0EC2856566"><enum>(2)</enum><header display-inline="yes-display-inline">Standards for foreign financial
companies</header><text display-inline="yes-display-inline">In applying the
standards set forth in paragraph (1) to any foreign nonbank financial company
supervised by the Board of Governors or foreign-based bank holding company, the
Board of Governors shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DBAB0A156724607BDB659244A0F1F0C"><enum>(A)</enum><text display-inline="yes-display-inline">give due regard to the principle of
national treatment and equality of competitive opportunity; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFCF0945DA4204552BF72A5A0922A8EA1"><enum>(B)</enum><text display-inline="yes-display-inline">take into account the extent to which the
foreign financial company is subject on a consolidated basis to home country
standards that are comparable to those applied to financial companies in the
United States.</text>
</subparagraph></paragraph><paragraph id="H1EC1BB19108E4C6D8F240095169A5578"><enum>(3)</enum><header>Considerations</header><text>In
prescribing prudential standards under paragraph (1), the Board of Governors
shall—</text>
<subparagraph id="H08B343B16E924379A53235399F0CDF19"><enum>(A)</enum><text>take into account
differences among nonbank financial companies supervised by the Board of
Governors and bank holding companies described in subsection (a), based
on—</text>
<clause id="H751F989541734AECB460DCCDC2C10041"><enum>(i)</enum><text>the
factors described in subsections (a) and (b) of section 113;</text>
</clause><clause id="HD3FACC384F814E00AF1BCE09A134EC22"><enum>(ii)</enum><text>whether the
company owns an insured depository institution;</text>
</clause><clause id="H5DE9CAA76675413DBFF5B2E5FC18EB2A"><enum>(iii)</enum><text>nonfinancial
activities and affiliations of the company; and</text>
</clause><clause id="H451122EA88CB4F60819303CD30D41DA2"><enum>(iv)</enum><text>any
other risk-related factors that the Board of Governors determines
appropriate;</text>
</clause></subparagraph><subparagraph id="H40184B3822B747418959034682831A1E"><enum>(B)</enum><text>to the extent
possible, ensure that small changes in the factors listed in subsections (a)
and (b) of section 113 would not result in sharp, discontinuous changes in the
prudential standards established under paragraph (1) of this subsection;</text>
</subparagraph><subparagraph id="HF833A2ED46BB4AA78C82C92885CCA38D"><enum>(C)</enum><text>take into account
any recommendations of the Council under section 115; and</text>
</subparagraph><subparagraph id="H3CAB53806FF7445CA2BD1395F92C3717"><enum>(D)</enum><text>adapt the required
standards as appropriate in light of any predominant line of business of such
company, including assets under management or other activities for which
particular standards may not be appropriate.</text>
</subparagraph></paragraph><paragraph id="HE3F45412C78B4F0CA72BF3A5C2B3B2F2"><enum>(4)</enum><header>Consultation</header><text>Before
imposing prudential standards or any other requirements pursuant to this
section, including notices of deficiencies in resolution plans and more
stringent requirements or divestiture orders resulting from such notices, that
are likely to have a significant impact on a functionally regulated subsidiary
or depository institution subsidiary of a nonbank financial company supervised
by the Board of Governors or a bank holding company described in subsection
(a), the Board of Governors shall consult with each Council member that
primarily supervises any such subsidiary with respect to any such standard or
requirement.</text>
</paragraph><paragraph id="H9958EBFD547F4818B3B98A1120DD6345"><enum>(5)</enum><header>Report</header><text>The
Board of Governors shall submit an annual report to Congress regarding the
implementation of the prudential standards required pursuant to paragraph (1),
including the use of such standards to mitigate risks to the financial
stability of the United States.</text>
</paragraph></subsection><subsection id="H0AB118AEBB4D44E9A7C61BE17952F65A"><enum>(c)</enum><header>Contingent
capital</header>
<paragraph id="H530A4778B83F4546B97E2D169263EAF0"><enum>(1)</enum><header>In
general</header><text>Subsequent to submission by the Council of a report to
Congress under section 115(c), the Board of Governors may issue regulations
that require each nonbank financial company supervised by the Board of
Governors and bank holding companies described in subsection (a) to maintain a
minimum amount of contingent capital that is convertible to equity in times of
financial stress.</text>
</paragraph><paragraph id="H387DDA445298411086BD29FE36DBACB7"><enum>(2)</enum><header>Factors to
consider</header><text>In issuing regulations under this subsection, the Board
of Governors shall consider—</text>
<subparagraph id="HF999AA7B06F3431D9C4D876A2451AB4B"><enum>(A)</enum><text>the results of the
study undertaken by the Council, and any recommendations of the Council, under
section 115(c);</text>
</subparagraph><subparagraph id="HF7084121248942DD9A6F4D44A3561DB1"><enum>(B)</enum><text>an appropriate
transition period for implementation of contingent capital under this
subsection;</text>
</subparagraph><subparagraph id="HC0B3B4B6E7074C2E8D29810DFA360435"><enum>(C)</enum><text>the factors
described in subsection (b)(3)(A);</text>
</subparagraph><subparagraph id="H6FA98D4F17654685A8BD633357D0CBA0"><enum>(D)</enum><text>capital
requirements applicable to the nonbank financial company supervised by the
Board of Governors or a bank holding company described in subsection (a), and
subsidiaries thereof; and</text>
</subparagraph><subparagraph id="H2AE0AE16BA7248A698EE077A72B830F6"><enum>(E)</enum><text>any other factor
that the Board of Governors deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H642B781C73304415A90058B918DFD191"><enum>(d)</enum><header>Resolution plan
and credit exposure reports</header>
<paragraph id="H5BFEE57842DF41F88622E97D8A66E959"><enum>(1)</enum><header>Resolution
plan</header><text>The Board of Governors shall require each nonbank financial
company supervised by the Board of Governors and bank holding companies
described in subsection (a) to report periodically to the Board of Governors,
the Council, and the Corporation the plan of such company for rapid and orderly
resolution in the event of material financial distress or failure, which shall
include—</text>
<subparagraph id="HC6D1B24274E24644A2E8604CACF1A6ED"><enum>(A)</enum><text>information
regarding the manner and extent to which any insured depository institution
affiliated with the company is adequately protected from risks arising from the
activities of any nonbank subsidiaries of the company;</text>
</subparagraph><subparagraph id="H2416A3EA91634643B88A1F4D20DD0822"><enum>(B)</enum><text>full descriptions
of the ownership structure, assets, liabilities, and contractual obligations of
the company;</text>
</subparagraph><subparagraph id="H29208513E5D5431BA239BB6EAD3959CE"><enum>(C)</enum><text>identification of
the cross-guarantees tied to different securities, identification of major
counterparties, and a process for determining to whom the collateral of the
company is pledged; and</text>
</subparagraph><subparagraph id="HECCB216F2E934DC5A0E3560C5F02079B"><enum>(D)</enum><text>any other
information that the Board of Governors and the Corporation jointly require by
rule or order.</text>
</subparagraph></paragraph><paragraph id="HE1DBF44E0D1747FAA6D22C597D743683"><enum>(2)</enum><header>Credit exposure
report</header><text>The Board of Governors shall require each nonbank
financial company supervised by the Board of Governors and bank holding
companies described in subsection (a) to report periodically to the Board of
Governors, the Council, and the Corporation on—</text>
<subparagraph id="HB01DA7B682F444A595079DF6540D180E"><enum>(A)</enum><text>the nature and
extent to which the company has credit exposure to other significant nonbank
financial companies and significant bank holding companies; and</text>
</subparagraph><subparagraph id="HC046C13ACDE94F10A5FEEA2CACAE5019"><enum>(B)</enum><text>the nature and
extent to which other significant nonbank financial companies and significant
bank holding companies have credit exposure to that company.</text>
</subparagraph></paragraph><paragraph id="H58BEB2BCEA2D46B8878E69B596817DAC"><enum>(3)</enum><header>Review</header><text>The
Board of Governors and the Corporation shall review the information provided in
accordance with this subsection by each nonbank financial company supervised by
the Board of Governors and bank holding company described in subsection
(a).</text>
</paragraph><paragraph id="HF085B0C665F643C1BA900FF1300E04C9"><enum>(4)</enum><header>Notice of
deficiencies</header><text>If the Board of Governors and the Corporation
jointly determine, based on their review under paragraph (3), that the
resolution plan of a nonbank financial company supervised by the Board of
Governors or a bank holding company described in subsection (a) is not credible
or would not facilitate an orderly resolution of the company under title 11,
United States Code—</text>
<subparagraph id="HF787B4C3B4604256A8F6BA4B74083C02"><enum>(A)</enum><text>the Board of
Governors and the Corporation shall notify the company of the deficiencies in
the resolution plan; and</text>
</subparagraph><subparagraph id="H8CF341B8685D48888A864BB52D84B5A8"><enum>(B)</enum><text>the company shall
resubmit the resolution plan within a timeframe determined by the Board of
Governors and the Corporation, with revisions demonstrating that the plan is
credible and would result in an orderly resolution under title 11, United
States Code, including any proposed changes in business operations and
corporate structure to facilitate implementation of the plan.</text>
</subparagraph></paragraph><paragraph id="H0B5E5706C8F14B03803B7D96EA01245E"><enum>(5)</enum><header>Failure to
resubmit credible plan</header>
<subparagraph id="H83BD8EEE1F914B11AC8864AC998FBC6C"><enum>(A)</enum><header>In
general</header><text>If a nonbank financial company supervised by the Board of
Governors or a bank holding company described in subsection (a) fails to timely
resubmit the resolution plan as required under paragraph (4), with such
revisions as are required under subparagraph (B), the Board of Governors and
the Corporation may jointly impose more stringent capital, leverage, or
liquidity requirements, or restrictions on the growth, activities, or
operations of the company, or any subsidiary thereof, until such time as the
company resubmits a plan that remedies the deficiencies.</text>
</subparagraph><subparagraph id="HF5FD47F598544370B0471241917B94C6"><enum>(B)</enum><header>Divestiture</header><text>The
Board of Governors and the Corporation, in consultation with the Council, may
jointly direct a nonbank financial company supervised by the Board of Governors
or a bank holding company described in subsection (a), by order, to divest
certain assets or operations identified by the Board of Governors and the
Corporation, to facilitate an orderly resolution of such company under title
11, United States Code, in the event of the failure of such company, in any
case in which—</text>
<clause id="H414E87AA9F20406ABBA8D30438A7C6A7"><enum>(i)</enum><text>the
Board of Governors and the Corporation have jointly imposed more stringent
requirements on the company pursuant to subparagraph (A); and</text>
</clause><clause id="HEDDA395DF81E43AFB0ECBDBECA879B7A"><enum>(ii)</enum><text>the
company has failed, within the 2-year period beginning on the date of the
imposition of such requirements under subparagraph (A), to resubmit the
resolution plan with such revisions as were required under paragraph
(4)(B).</text>
</clause></subparagraph></paragraph><paragraph id="H6D6BE9E15CBE441386411B5E5216C2AA"><enum>(6)</enum><header>No limiting
effect</header><text>A resolution plan submitted in accordance with this
subsection shall not be binding on a bankruptcy court, a receiver appointed
under title II, or any other authority that is authorized or required to
resolve the nonbank financial company supervised by the Board, any bank holding
company, or any subsidiary or affiliate of the foregoing.</text>
</paragraph><paragraph id="H31BC30FF16604851A9FE3EE1EC0A4059"><enum>(7)</enum><header>No private right
of action</header><text>No private right of action may be based on any
resolution plan submitted in accordance with this subsection.</text>
</paragraph><paragraph id="HDC672B0ED2C54902BFBAC05966784AC0"><enum>(8)</enum><header>Rules</header><text>Not
later than 18 months after the date of enactment of this Act, the Board of
Governors and the Corporation shall jointly issue final rules implementing this
subsection.</text>
</paragraph></subsection><subsection id="H9E9DA67C2B4F46FA8754CD7B5DE303AE"><enum>(e)</enum><header>Concentration
limits</header>
<paragraph id="H470AE58C6C8A4788ADC2C6F0A06F02A6"><enum>(1)</enum><header>Standards</header><text>In
order to limit the risks that the failure of any individual company could pose
to a nonbank financial company supervised by the Board of Governors or a bank
holding company described in subsection (a), the Board of Governors, by
regulation, shall prescribe standards that limit such risks.</text>
</paragraph><paragraph id="H542533FB06B348AA9DE1975AF35319CF"><enum>(2)</enum><header>Limitation on
credit exposure</header><text>The regulations prescribed by the Board of
Governors under paragraph (1) shall prohibit each nonbank financial company
supervised by the Board of Governors and bank holding company described in
subsection (a) from having credit exposure to any unaffiliated company that
exceeds 25 percent of the capital stock and surplus (or such lower amount as
the Board of Governors may determine by regulation to be necessary to mitigate
risks to the financial stability of the United States) of the company.</text>
</paragraph><paragraph id="HDEB4EB6A51144B1692851DA9FF2284CC"><enum>(3)</enum><header>Credit
exposure</header><text>For purposes of paragraph (2), <term>credit
exposure</term> to a company means—</text>
<subparagraph id="H5C1290F7FB0A4BDE954181F792841664"><enum>(A)</enum><text>all extensions of
credit to the company, including loans, deposits, and lines of credit;</text>
</subparagraph><subparagraph id="H3BBFDCD6BEB44C89B114FF6271DA06F9"><enum>(B)</enum><text>all repurchase
agreements and reverse repurchase agreements with the company, and all
securities borrowing and lending transactions with the company, to the extent
that such transactions create credit exposure for the nonbank financial company
supervised by the Board of Governors or a bank holding company described in
subsection (a);</text>
</subparagraph><subparagraph id="HFED3C517F45D4742920F7CFF96E6FA08"><enum>(C)</enum><text>all guarantees,
acceptances, or letters of credit (including endorsement or standby letters of
credit) issued on behalf of the company;</text>
</subparagraph><subparagraph id="H736B37A95EC14F76AD600F9E8CF23CC2"><enum>(D)</enum><text>all purchases of
or investment in securities issued by the company;</text>
</subparagraph><subparagraph id="H568F264CD3AF485AA74431AEEDE3AFFA"><enum>(E)</enum><text>counterparty
credit exposure to the company in connection with a derivative transaction
between the nonbank financial company supervised by the Board of Governors or a
bank holding company described in subsection (a) and the company; and</text>
</subparagraph><subparagraph id="HDA3B383A9DD44C8386490C8A0775C6A0"><enum>(F)</enum><text>any other similar
transactions that the Board of Governors, by regulation, determines to be a
credit exposure for purposes of this section.</text>
</subparagraph></paragraph><paragraph id="HB602665BCB924F43BBABE328D1AF4ABE"><enum>(4)</enum><header>Attribution
rule</header><text>For purposes of this subsection, any transaction by a
nonbank financial company supervised by the Board of Governors or a bank
holding company described in subsection (a) with any person is a transaction
with a company, to the extent that the proceeds of the transaction are used for
the benefit of, or transferred to, that company.</text>
</paragraph><paragraph id="H7D394185186D44EDB605509F3EA27C80"><enum>(5)</enum><header>Rulemaking</header><text>The
Board of Governors may issue such regulations and orders, including definitions
consistent with this section, as may be necessary to administer and carry out
this subsection.</text>
</paragraph><paragraph id="H4E33CCFA46FE4BC7AD2878BC26895B79"><enum>(6)</enum><header>Exemptions</header><text>This
subsection shall not apply to any Federal home loan bank. The Board of
Governors may, by regulation or order, exempt transactions, in whole or in
part, from the definition of the term <quote>credit exposure</quote> for
purposes of this subsection, if the Board of Governors finds that the exemption
is in the public interest and is consistent with the purpose of this
subsection.</text>
</paragraph><paragraph id="H6888D9BA1EC344E597FA801AF755F867"><enum>(7)</enum><header>Transition
period</header>
<subparagraph id="H8670F9ADEE3D49BEA0C3927C30A4FC8B"><enum>(A)</enum><header>In
general</header><text>This subsection and any regulations and orders of the
Board of Governors under this subsection shall not be effective until 3 years
after the date of enactment of this Act.</text>
</subparagraph><subparagraph id="H6321AE247A78453F9D9FD6AD3824751B"><enum>(B)</enum><header>Extension
authorized</header><text>The Board of Governors may extend the period specified
in subparagraph (A) for not longer than an additional 2 years.</text>
</subparagraph></paragraph></subsection><subsection id="H07DD4D90A559462E83F32FF16CB0A1A0"><enum>(f)</enum><header>Enhanced public
disclosures</header><text>The Board of Governors may prescribe, by regulation,
periodic public disclosures by nonbank financial companies supervised by the
Board of Governors and bank holding companies described in subsection (a) in
order to support market evaluation of the risk profile, capital adequacy, and
risk management capabilities thereof.</text>
</subsection><subsection id="HC7BED8782207411DA48956D0EB0BEC4A"><enum>(g)</enum><header>Short-term debt
limits</header>
<paragraph id="HA51D9E1F7DEB4DC893620299DB84E97A"><enum>(1)</enum><header>In
general</header><text>In order to mitigate the risks that an over-accumulation
of short-term debt could pose to financial companies and to the stability of
the United States financial system, the Board of Governors may, by regulation,
prescribe a limit on the amount of short-term debt, including off-balance sheet
exposures, that may be accumulated by any bank holding company described in
subsection (a) and any nonbank financial company supervised by the Board of
Governors.</text>
</paragraph><paragraph id="H297EF7B09B034F2FB57550F94381F5D0"><enum>(2)</enum><header>Basis of
limit</header><text>Any limit prescribed under paragraph (1) shall be based on
the short-term debt of the company described in paragraph (1) as a percentage
of capital stock and surplus of the company or on such other measure as the
Board of Governors considers appropriate.</text>
</paragraph><paragraph id="HC6727B60601D4C8CAC63878CDC183034"><enum>(3)</enum><header>Short-term debt
defined</header><text>For purposes of this subsection, the term
<quote>short-term debt</quote> means such liabilities with short-dated maturity
that the Board of Governors identifies, by regulation, except that such term
does not include insured deposits.</text>
</paragraph><paragraph id="HD61A30FA6CC5473291311C2518E08CDC"><enum>(4)</enum><header>Rulemaking
authority</header><text>In addition to prescribing regulations under paragraphs
(1) and (3), the Board of Governors may prescribe such regulations, including
definitions consistent with this subsection, and issue such orders, as may be
necessary to carry out this subsection.</text>
</paragraph><paragraph id="H80DCC325D9ED4787ACDD1ADC5BFCCFBE"><enum>(5)</enum><header>Authority to
issue exemptions and adjustments</header><text>Notwithstanding the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.), the Board of Governors may, if it
determines such action is necessary to ensure appropriate heightened prudential
supervision, with respect to a company described in paragraph (1) that does not
control an insured depository institution, issue to such company an exemption
from or adjustment to the limit prescribed under paragraph (1).</text>
</paragraph></subsection><subsection id="H7B2F6810C4304D99ADE5CD439FFB7438"><enum>(h)</enum><header>Risk
committee</header>
<paragraph id="H2A4463BA82304BD095A05B10940293EB"><enum>(1)</enum><header>Nonbank
financial companies supervised by the Board of Governors</header><text>The
Board of Governors shall require each nonbank financial company supervised by
the Board of Governors that is a publicly traded company to establish a risk
committee, as set forth in paragraph (3), not later than 1 year after the date
of receipt of a notice of final determination under section 113(e)(3) with
respect to such nonbank financial company supervised by the Board of
Governors.</text>
</paragraph><paragraph commented="no" id="HB3F9286B2DAF471ABAEF1048D8E37FBE"><enum>(2)</enum><header>Certain bank
holding companies</header>
<subparagraph commented="no" id="HCF155A33D2BE40889815275A65FDF9F5"><enum>(A)</enum><header>Mandatory
regulations</header><text>The Board of Governors shall issue regulations
requiring each bank holding company that is a publicly traded company and that
has total consolidated assets of not less than $10,000,000,000 to establish a
risk committee, as set forth in paragraph (3).</text>
</subparagraph><subparagraph commented="no" id="H6CCE54D717AC445BBCC2921B85883AEC"><enum>(B)</enum><header>Permissive
regulations</header><text>The Board of Governors may require each bank holding
company that is a publicly traded company and that has total consolidated
assets of less than $10,000,000,000 to establish a risk committee, as set forth
in paragraph (3), as determined necessary or appropriate by the Board of
Governors to promote sound risk management practices.</text>
</subparagraph></paragraph><paragraph id="H74081B08CA0440079F98258CD4BBFF6C"><enum>(3)</enum><header>Risk
committee</header><text>A risk committee required by this subsection
shall—</text>
<subparagraph id="HFB871BFF20404437B0B934099A85BBD6"><enum>(A)</enum><text>be responsible for
the oversight of the enterprise-wide risk management practices of the nonbank
financial company supervised by the Board of Governors or bank holding company
described in subsection (a), as applicable;</text>
</subparagraph><subparagraph id="H43FF245194A44D599A823758923026E1"><enum>(B)</enum><text>include such
number of independent directors as the Board of Governors may determine
appropriate, based on the nature of operations, size of assets, and other
appropriate criteria related to the nonbank financial company supervised by the
Board of Governors or a bank holding company described in subsection (a), as
applicable; and</text>
</subparagraph><subparagraph id="HB2C6D5F04381467B8479CE3046C3C989"><enum>(C)</enum><text>include at least 1
risk management expert having experience in identifying, assessing, and
managing risk exposures of large, complex firms.</text>
</subparagraph></paragraph><paragraph id="HD46FFE08C1B64F58BA2905DF30825276"><enum>(4)</enum><header>Rulemaking</header><text>The
Board of Governors shall issue final rules to carry out this subsection, not
later than 1 year after the transfer date, to take effect not later than 15
months after the transfer date.</text>
</paragraph></subsection><subsection id="HDAC68684859A4E6AAD63DDFB0CF48C01"><enum>(i)</enum><header>Stress
tests</header>
<paragraph id="H385F23D4DF464D40A17A03989C09DEE6"><enum>(1)</enum><header>By the board of
governors</header>
<subparagraph id="H81FA091B6C3A49A78818B5DBF677ACC4"><enum>(A)</enum><header>Annual tests
required</header><text>The Board of Governors, in coordination with the
appropriate primary financial regulatory agencies and the Federal Insurance
Office, shall conduct annual analyses in which nonbank financial companies
supervised by the Board of Governors and bank holding companies described in
subsection (a) are subject to evaluation of whether such companies have the
capital, on a total consolidated basis, necessary to absorb losses as a result
of adverse economic conditions.</text>
</subparagraph><subparagraph id="H62860F099EE14A1292CBC151FB7A218E"><enum>(B)</enum><header>Test parameters
and consequences</header><text>The Board of Governors—</text>
<clause id="H632019F1195643FF87BD554CEF246685"><enum>(i)</enum><text>shall provide for
at least 3 different sets of conditions under which the evaluation required by
this subsection shall be conducted, including baseline, adverse, and severely
adverse;</text>
</clause><clause id="HA546937862D74E1294705DDE062B3A08"><enum>(ii)</enum><text>may
require the tests described in subparagraph (A) at bank holding companies and
nonbank financial companies, in addition to those for which annual tests are
required under subparagraph (A);</text>
</clause><clause id="H8FC52E8E12DC4A19B6FC8AC6E5DC7DCB"><enum>(iii)</enum><text>may develop and
apply such other analytic techniques as are necessary to identify, measure, and
monitor risks to the financial stability of the United States;</text>
</clause><clause id="H025B3498779A4EF8A0AEDA5EFA1330F9"><enum>(iv)</enum><text>shall require the
companies described in subparagraph (A) to update their resolution plans
required under subsection (d)(1), as the Board of Governors determines
appropriate, based on the results of the analyses; and</text>
</clause><clause id="HBE3E030994764F98BE9E78E3A681E666"><enum>(v)</enum><text>shall publish a
summary of the results of the tests required under subparagraph (A) or clause
(ii) of this subparagraph.</text>
</clause></subparagraph></paragraph><paragraph id="H5A0B58B76D0C4403931554D815DF8CA1"><enum>(2)</enum><header>By the
company</header>
<subparagraph id="H27D3F0D5B9CD41CBBC85FFA6E6227B09"><enum>(A)</enum><header>Requirement</header><text>A
nonbank financial company supervised by the Board of Governors and a bank
holding company described in subsection (a) shall conduct semiannual stress
tests. All other financial companies that have total consolidated assets of
more than $10,000,000,000 and are regulated by a primary Federal financial
regulatory agency shall conduct annual stress tests. The tests required under
this subparagraph shall be conducted in accordance with the regulations
prescribed under subparagraph (C).</text>
</subparagraph><subparagraph id="HD2866C6AFBC64D3493F2B87CE4B32D67"><enum>(B)</enum><header>Report</header><text>A
company required to conduct stress tests under subparagraph (A) shall submit a
report to the Board of Governors and to its primary financial regulatory agency
at such time, in such form, and containing such information as the primary
financial regulatory agency shall require.</text>
</subparagraph><subparagraph id="H179EF901A40D40E9B76F1B9251C6A68E"><enum>(C)</enum><header>Regulations</header><text>Each
Federal primary financial regulatory agency, in coordination with the Board of
Governors and the Federal Insurance Office, shall issue consistent and
comparable regulations to implement this paragraph that shall—</text>
<clause id="HEFDB388A35F44ED4B9E50E0798D231CE"><enum>(i)</enum><text>define the term
<quote>stress test</quote> for purposes of this paragraph;</text>
</clause><clause id="H5034B42DA0E349B28EAB497CEFBA577D"><enum>(ii)</enum><text>establish
methodologies for the conduct of stress tests required by this paragraph that
shall provide for at least 3 different sets of conditions, including baseline,
adverse, and severely adverse;</text>
</clause><clause id="HCDB1834BEA2D425083A41E940930A6BC"><enum>(iii)</enum><text>establish the
form and content of the report required by subparagraph (B); and</text>
</clause><clause id="H6EAED4FB0DFD400DA0647B43B14B8DEF"><enum>(iv)</enum><text>require companies
subject to this paragraph to publish a summary of the results of the required
stress tests.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H64518F2CD87F45149B646DD5E3B447F2"><enum>(j)</enum><header>Leverage
limitation</header>
<paragraph id="H1F1AE04967374F1BB8C69601D089ABE5"><enum>(1)</enum><header>Requirement</header><text>The
Board of Governors shall require a bank holding company with total consolidated
assets equal to or greater than $50,000,000,000 or a nonbank financial company
supervised by the Board of Governors to maintain a debt to equity ratio of no
more than 15 to 1, upon a determination by the Council that such company poses
a grave threat to the financial stability of the United States and that the
imposition of such requirement is necessary to mitigate the risk that such
company poses to the financial stability of the United States. Nothing in this
paragraph shall apply to a Federal home loan bank.</text>
</paragraph><paragraph id="HCA1BAB08B70E497CBF2AB6D4DB1EDE3E"><enum>(2)</enum><header>Considerations</header><text>In
making a determination under this subsection, the Council shall consider the
factors described in subsections (a) and (b) of section 113 and any other
risk-related factors that the Council deems appropriate.</text>
</paragraph><paragraph id="H9AA007A29F3A4A6DA2AD94AB4E421E58"><enum>(3)</enum><header>Regulations</header><text>The
Board of Governors shall promulgate regulations to establish procedures and
timelines for complying with the requirements of this subsection.</text>
</paragraph></subsection><subsection id="H446723D3620C4554AC5F3885DC356B3E"><enum>(k)</enum><header>Inclusion of
off-balance-sheet activities in computing capital requirements</header>
<paragraph id="H061AE72B5ECC495AA3B65BDA22A8C6B6"><enum>(1)</enum><header>In
general</header><text>In the case of any bank holding company described in
subsection (a) or nonbank financial company supervised by the Board of
Governors, the computation of capital for purposes of meeting capital
requirements shall take into account any off-balance-sheet activities of the
company.</text>
</paragraph><paragraph id="H4059D5B885404509B7C684914FFB92EC"><enum>(2)</enum><header>Exemptions</header><text>If
the Board of Governors determines that an exemption from the requirement under
paragraph (1) is appropriate, the Board of Governors may exempt a company, or
any transaction or transactions engaged in by such company, from the
requirements of paragraph (1).</text>
</paragraph><paragraph id="HCB7A69DE2A564854B70B9D9F034B8715"><enum>(3)</enum><header>Off-balance-sheet
activities defined</header><text>For purposes of this subsection, the term
<term>off-balance-sheet activities</term> means an existing liability of a
company that is not currently a balance sheet liability, but may become one
upon the happening of some future event, including the following transactions,
to the extent that they may create a liability:</text>
<subparagraph id="HC1B07997C15549D1B6CF04E418B5A2BF"><enum>(A)</enum><text>Direct credit
substitutes in which a bank substitutes its own credit for a third party,
including standby letters of credit.</text>
</subparagraph><subparagraph id="HE7503209399E4E5B9671B22BE5591037"><enum>(B)</enum><text>Irrevocable
letters of credit that guarantee repayment of commercial paper or tax-exempt
securities.</text>
</subparagraph><subparagraph id="HFD7F6CA7CCE04CCD8492960DCCAD9CFF"><enum>(C)</enum><text>Risk
participations in bankers’ acceptances.</text>
</subparagraph><subparagraph id="H0524D2482ADF4026B8260ADB6744A752"><enum>(D)</enum><text>Sale and
repurchase agreements.</text>
</subparagraph><subparagraph id="H83B16CE1D5E24B2F9B67A8B49D2DD212"><enum>(E)</enum><text>Asset sales with
recourse against the seller.</text>
</subparagraph><subparagraph id="HA208547C9BE34316A8B8187F0EBE4785"><enum>(F)</enum><text>Interest rate
swaps.</text>
</subparagraph><subparagraph id="HB55598FDE43C4CAD90B7679AC3C66435"><enum>(G)</enum><text>Credit
swaps.</text>
</subparagraph><subparagraph id="HCDF3246968AC4F25809AA2CF99125FEB"><enum>(H)</enum><text>Commodities
contracts.</text>
</subparagraph><subparagraph id="H7EC99730277F4419B3E105C4C630B0B4"><enum>(I)</enum><text>Forward
contracts.</text>
</subparagraph><subparagraph id="HA653D2542EB54D57937970208FEB2251"><enum>(J)</enum><text>Securities
contracts.</text>
</subparagraph><subparagraph id="HFF63AA851065497188DD79FCD0A97400"><enum>(K)</enum><text>Such other
activities or transactions as the Board of Governors may, by rule,
define.</text>
</subparagraph></paragraph></subsection></section><section id="HDC86E3CEE6A2474E9E0903EC729AF1C4"><enum>166.</enum><header>Early
remediation requirements</header>
<subsection id="H606045FC6A1246C599B66469BA9172C9"><enum>(a)</enum><header>In
general</header><text>The Board of Governors, in consultation with the Council
and the Corporation, shall prescribe regulations establishing requirements to
provide for the early remediation of financial distress of a nonbank financial
company supervised by the Board of Governors or a bank holding company
described in section 165(a), except that nothing in this subsection authorizes
the provision of financial assistance from the Federal Government.</text>
</subsection><subsection id="H99106E8B1F66487E9CE8B3B39B2EE9AC"><enum>(b)</enum><header>Purpose of the
early remediation requirements</header><text>The purpose of the early
remediation requirements under subsection (a) shall be to establish a series of
specific remedial actions to be taken by a nonbank financial company supervised
by the Board of Governors or a bank holding company described in section 165(a)
that is experiencing increasing financial distress, in order to minimize the
probability that the company will become insolvent and the potential harm of
such insolvency to the financial stability of the United States.</text>
</subsection><subsection id="H0366F4BA61864AA8BD80166F277673B2"><enum>(c)</enum><header>Remediation
requirements</header><text>The regulations prescribed by the Board of Governors
under subsection (a) shall—</text>
<paragraph id="H71850C13B3ED47D5998595259373A087"><enum>(1)</enum><text>define measures of
the financial condition of the company, including regulatory capital, liquidity
measures, and other forward-looking indicators; and</text>
</paragraph><paragraph id="HA39CC86C62FE440CA675CFE3B63F5DDB"><enum>(2)</enum><text>establish
requirements that increase in stringency as the financial condition of the
company declines, including—</text>
<subparagraph id="HDEFA957A3BE74F4E9531632ABC86A862"><enum>(A)</enum><text>requirements in
the initial stages of financial decline, including limits on capital
distributions, acquisitions, and asset growth; and</text>
</subparagraph><subparagraph id="H89803205911A416EB0C700B53AB13D83"><enum>(B)</enum><text>requirements at
later stages of financial decline, including a capital restoration plan and
capital-raising requirements, limits on transactions with affiliates,
management changes, and asset sales.</text>
</subparagraph></paragraph></subsection></section><section id="H35C8C0B7E6FC4943B7EF0067FDEF3DAA"><enum>167.</enum><header>Affiliations</header>
<subsection id="H230A6023DA414E93A6AE888DE8D2F5F3"><enum>(a)</enum><header>Affiliations</header><text>Nothing
in this subtitle shall be construed to require a nonbank financial company
supervised by the Board of Governors, or a company that controls a nonbank
financial company supervised by the Board of Governors, to conform the
activities thereof to the requirements of section 4 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843).</text>
</subsection><subsection id="HEA57FC8EC7FA450F9CE991C39E9E9CD9"><enum>(b)</enum><header>Requirement</header>
<paragraph id="H7F66955AA47F43A6912696A62DEE6329"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H3A69C175FBEA41D3A281992F539D3FBD"><enum>(A)</enum><header>Board
authority</header><text>If a nonbank financial company supervised by the Board
of Governors conducts activities other than those that are determined to be
financial in nature or incidental thereto under section 4(k) of the Bank
Holding Company Act of 1956, the Board of Governors may require such company to
establish and conduct all or a portion of such activities that are determined
to be financial in nature or incidental thereto in or through an intermediate
holding company established pursuant to regulation of the Board of Governors,
not later than 90 days (or such longer period as the Board of Governors may
deem appropriate) after the date on which the nonbank financial company
supervised by the Board of Governors is notified of the determination of the
Board of Governors under this section.</text>
</subparagraph><subparagraph id="HF61B79DE678F45909275C4237792200E"><enum>(B)</enum><header>Necessary
actions</header><text>Notwithstanding subparagraph (A), the Board of Governors
shall require a nonbank financial company supervised by the Board of Governors
to establish an intermediate holding company if the Board of Governors makes a
determination that the establishment of such intermediate holding company is
necessary to—</text>
<clause id="HD13F09043F484D90906120EA74650513"><enum>(i)</enum><text>appropriately
supervise activities that are determined to be financial in nature or
incidental thereto; or</text>
</clause><clause id="HB860BBF6DEA94802AE7F60B3F1820BB7"><enum>(ii)</enum><text>to
ensure that supervision by the Board of Governors does not extend to the
commercial activities of such nonbank financial company.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB8115185B2A44AE9A762D3E9921A8EB"><enum>(2)</enum><header display-inline="yes-display-inline">Internal financial activities</header><text display-inline="yes-display-inline">For purposes of this subsection, activities
that are determined to be financial in nature or incidental thereto under
section 4(k) of the Bank Holding Company Act of 1956, as described in paragraph
(1), shall not include internal financial activities, including internal
treasury, investment, and employee benefit functions. With respect to any
internal financial activity engaged in for the company or an affiliate and a
non-affiliate of such company during the year prior to the date of enactment of
this Act, such company (or an affiliate that is not an intermediate holding
company or subsidiary of an intermediate holding company) may continue to
engage in such activity, as long as not less than 2⁄3 of the assets or 2⁄3 of
the revenues generated from the activity are from or attributable to such
company or an affiliate, subject to review by the Board of Governors, to
determine whether engaging in such activity presents undue risk to such company
or to the financial stability of the United States.</text>
</paragraph><paragraph id="HEB116831873B4CACBC7A02B331B37092"><enum>(3)</enum><header>Source of
strength</header><text>A company that directly or indirectly controls an
intermediate holding company established under this section shall serve as a
source of strength to its subsidiary intermediate holding company.</text>
</paragraph><paragraph id="H4FC6E5F02F4D402D9143811DC1A7EDF3"><enum>(4)</enum><header>Parent company
reports</header><text>The Board of Governors may, from time to time, require
reports under oath from a company that controls an intermediate holding
company, and from the appropriate officers or directors of such company, solely
for purposes of ensuring compliance with the provisions of this section,
including assessing the ability of the company to serve as a source of strength
to its subsidiary intermediate holding company pursuant to paragraph (3) and
enforcing such compliance.</text>
</paragraph><paragraph id="HBBE578DA958D40D8ADDA263D4D064FFD"><enum>(5)</enum><header>Limited parent
company enforcement</header>
<subparagraph id="HF8FF37EEA51F4DDA9A4AD44C9868D386"><enum>(A)</enum><header>In
general</header><text>In addition to any other authority of the Board of
Governors, the Board of Governors may enforce compliance with the provisions of
this subsection that are applicable to any company described in paragraph (1)
that controls an intermediate holding company under section 8 of the Federal
Deposit Insurance Act, and such company shall be subject to such section
(solely for such purposes) in the same manner and to the same extent as if such
company were a bank holding company.</text>
</subparagraph><subparagraph id="H9375753DB1C84E57A2B308B1A43DCB84"><enum>(B)</enum><header>Application of
other Act</header><text>Any violation of this subsection by any company that
controls an intermediate holding company may also be treated as a violation of
the Federal Deposit Insurance Act for purposes of subparagraph (A).</text>
</subparagraph><subparagraph id="H2FDB35D9B2F7437C807D637CEF3A7206"><enum>(C)</enum><header>No effect on
other authority</header><text>No provision of this paragraph shall be construed
as limiting any authority of the Board of Governors or any other Federal agency
under any other provision of law.</text>
</subparagraph></paragraph></subsection><subsection id="H84C419F6A098497791C81F1E5917ADD2"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Board of Governors—</text>
<paragraph id="H6D823EF85F5E410BB3213076070F9706"><enum>(1)</enum><text>shall promulgate
regulations to establish the criteria for determining whether to require a
nonbank financial company supervised by the Board of Governors to establish an
intermediate holding company under subsection (b); and</text>
</paragraph><paragraph id="H7B799020AF0E487F97FCF6111EAE4EE9"><enum>(2)</enum><text>may promulgate
regulations to establish any restrictions or limitations on transactions
between an intermediate holding company or a nonbank financial company
supervised by the Board of Governors and its affiliates, as necessary to
prevent unsafe and unsound practices in connection with transactions between
such company, or any subsidiary thereof, and its parent company or affiliates
that are not subsidiaries of such company, except that such regulations shall
not restrict or limit any transaction in connection with the bona fide
acquisition or lease by an unaffiliated person of assets, goods, or
services.</text>
</paragraph></subsection></section><section commented="no" id="HA2CCBD8E1E1C471EA5EA19755207E6C7"><enum>168.</enum><header>Regulations</header><text display-inline="no-display-inline">The Board of Governors shall have authority
to issue regulations to implement subtitles A and C and the amendments made
thereunder. Except as otherwise specified in subtitle A or C, not later than 18
months after the effective date of this Act, the Board of Governors shall issue
final regulations to implement subtitles A and C, and the amendments made
thereunder.</text>
</section><section commented="no" id="H7D897421E8654AEE991F2DFA29D9085A"><enum>169.</enum><header>Avoiding
duplication</header><text display-inline="no-display-inline">The Board of
Governors shall take any action that the Board of Governors deems appropriate
to avoid imposing requirements under this subtitle that are duplicative of
requirements applicable to bank holding companies and nonbank financial
companies under other provisions of law.</text>
</section><section commented="no" id="H60593B64AF7642C898C0A229138F15D6"><enum>170.</enum><header>Safe
harbor</header>
<subsection id="HC10D9DEB20204747A8C3E21B1055F676"><enum>(a)</enum><header>Regulations</header><text>The
Board of Governors shall promulgate regulations on behalf of, and in
consultation with, the Council setting forth the criteria for exempting certain
types or classes of U.S. nonbank financial companies or foreign nonbank
financial companies from supervision by the Board of Governors.</text>
</subsection><subsection id="HE81C19C767E9405BBBDC9C08DA9B453A"><enum>(b)</enum><header>Considerations</header><text>In
developing the criteria under subsection (a), the Board of Governors shall take
into account the factors for consideration described in subsections (a) and (b)
of section 113 in determining whether a U.S. nonbank financial company or
foreign nonbank financial company shall be supervised by the Board of
Governors.</text>
</subsection><subsection commented="no" id="H83010FDE535B482F8048D02C8890401C"><enum>(c)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to
require supervision by the Board of Governors of a U.S. nonbank financial
company or foreign nonbank financial company, if such company does not meet the
criteria for exemption established under subsection (a).</text>
</subsection><subsection id="HA512597071F94523A1EA8614C0915A64"><enum>(d)</enum><header>Revisions</header>
<paragraph id="H4237E9F4B3824B5B90D3491D6DF1B9CE"><enum>(1)</enum><header>In
general</header><text>The Board of Governors shall, in consultation with the
Council, review the regulations promulgated under subsection (a), not less
frequently than every 5 years, and based upon the review, the Board of
Governors may revise such regulations on behalf of, and in consultation with,
the Council to update as necessary the criteria set forth in such
regulations.</text>
</paragraph><paragraph id="H9159BDE6B618424F9711CBDE8E5C021C"><enum>(2)</enum><header>Transition
period</header><text>No revisions under paragraph (1) shall take effect before
the end of the 2-year period after the date of publication of such revisions in
final form.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4D587EE122A443F4A475D81F0FA26A8C"><enum>(e)</enum><header>Report</header><text>The
Chairman of the Board of Governors and the Chairperson of the Council shall
submit a joint report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives not later than 30 days after the date of the issuance in final
form of regulations under subsection (a), or any subsequent revision to such
regulations under subsection (d), as applicable. Such report shall include, at
a minimum, the rationale for exemption and empirical evidence to support the
criteria for exemption.</text>
</subsection></section><section id="HDD7D4DC7A57F4CD28CE4508F6694FFDD"><enum>171.</enum><header>Leverage and
risk-based capital requirements</header>
<subsection id="H798DFB96E9584AC5857FC84D5A97FC49"><enum>(a)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H41F0EC8A79D84140B966D95AD5A7EAA5"><enum>(1)</enum><header>Generally
applicable leverage capital requirements</header><text>The term <term>generally
applicable leverage capital requirements</term> means—</text>
<subparagraph id="H61CC22F49ADF4F4089F96E0CA6C5DAD8"><enum>(A)</enum><text>the minimum ratios
of tier 1 capital to average total assets, as established by the appropriate
Federal banking agencies to apply to insured depository institutions under the
prompt corrective action regulations implementing section 38 of the Federal
Deposit Insurance Act, regardless of total consolidated asset size or foreign
financial exposure; and</text>
</subparagraph><subparagraph id="H746D8E3511D9474AA451A1051287C5DE"><enum>(B)</enum><text>includes the
regulatory capital components in the numerator of that capital requirement,
average total assets in the denominator of that capital requirement, and the
required ratio of the numerator to the denominator.</text>
</subparagraph></paragraph><paragraph id="H7F137CBE1B6141D4B6A835A41481B4A9"><enum>(2)</enum><header>Generally
applicable risk-based capital requirements</header><text>The term
<term>generally applicable risk-based capital requirements</term> means—</text>
<subparagraph id="HC569D2BAD12A40BC9023B8FDE3123872"><enum>(A)</enum><text>the risk-based
capital requirements, as established by the appropriate Federal banking
agencies to apply to insured depository institutions under the prompt
corrective action regulations implementing section 38 of the Federal Deposit
Insurance Act, regardless of total consolidated asset size or foreign financial
exposure; and</text>
</subparagraph><subparagraph id="H76C22F44AB6E49B6A0FB1BA20DC9E798"><enum>(B)</enum><text>includes the
regulatory capital components in the numerator of those capital requirements,
the risk-weighted assets in the denominator of those capital requirements, and
the required ratio of the numerator to the denominator.</text>
</subparagraph></paragraph><paragraph id="HAF38BF5A05944F60AEFB7D897B592A29"><enum>(3)</enum><header>Definition of
depository institution holding company</header><text>The term <term>depository
institution holding company</term> means a bank holding company or a savings
and loan holding company (as those terms are defined in section 3 of the
Federal Deposit Insurance Act) that is organized in the United States,
including any bank or savings and loan holding company that is owned or
controlled by a foreign organization, but does not include the foreign
organization.</text>
</paragraph></subsection><subsection id="HAB713AB29F984018B57EA97E262ED876"><enum>(b)</enum><header>Minimum capital
requirements</header>
<paragraph id="HF1F4B10653F241439836B2ACD0189287"><enum>(1)</enum><header>Minimum leverage
capital requirements</header><text>The appropriate Federal banking agencies
shall establish minimum leverage capital requirements on a consolidated basis
for insured depository institutions, depository institution holding companies,
and nonbank financial companies supervised by the Board of Governors. The
minimum leverage capital requirements established under this paragraph shall
not be less than the generally applicable leverage capital requirements, which
shall serve as a floor for any capital requirements that the agency may
require, nor quantitatively lower than the generally applicable leverage
capital requirements that were in effect for insured depository institutions as
of the date of enactment of this Act.</text>
</paragraph><paragraph id="HF322FC91C86043CF8360846A99117567"><enum>(2)</enum><header>Minimum
risk-based capital requirements</header><text>The appropriate Federal banking
agencies shall establish minimum risk-based capital requirements on a
consolidated basis for insured depository institutions, depository institution
holding companies, and nonbank financial companies supervised by the Board of
Governors. The minimum risk-based capital requirements established under this
paragraph shall not be less than the generally applicable risk-based capital
requirements, which shall serve as a floor for any capital requirements that
the agency may require, nor quantitatively lower than the generally applicable
risk-based capital requirements that were in effect for insured depository
institutions as of the date of enactment of this Act.</text>
</paragraph><paragraph id="HDE8807C233544D559EE6C9450061935D"><enum>(3)</enum><header>Investments in
financial subsidiaries</header><text>For purposes of this section, investments
in financial subsidiaries that insured depository institutions are required to
deduct from regulatory capital under section 5136A of the Revised Statutes of
the United States or section 46(a)(2) of the Federal Deposit Insurance Act need
not be deducted from regulatory capital by depository institution holding
companies or nonbank financial companies supervised by the Board of Governors,
unless such capital deduction is required by the Board of Governors or the
primary financial regulatory agency in the case of nonbank financial companies
supervised by the Board of Governors.</text>
</paragraph><paragraph id="H72C57DBB0D164F188FA03E577A3A4AB9"><enum>(4)</enum><header>Effective dates
and phase-in periods</header>
<subparagraph id="HD9817BCBB9DC456191CEDAED42ED2EDB"><enum>(A)</enum><header>Debt or equity
instruments on or after May 19, 2010</header><text>For debt or equity
instruments issued on or after May 19, 2010, by depository institution holding
companies or by nonbank financial companies supervised by the Board of
Governors, this section shall be deemed to have become effective as of May 19,
2010.</text>
</subparagraph><subparagraph id="HD8127DE4A3BD432D9A758E04BC5FBC0B"><enum>(B)</enum><header>Debt or equity
instruments issued before May 19, 2010</header><text>For debt or equity
instruments issued before May 19, 2010, by depository institution holding
companies or by nonbank financial companies supervised by the Board of
Governors, any regulatory capital deductions required under this section shall
be phased in incrementally over a period of 3 years, with the phase-in period
to begin on January 1, 2013, except as set forth in subparagraph (C).</text>
</subparagraph><subparagraph id="HB741EC3E82FB47D583409C417675DA11"><enum>(C)</enum><header>Debt or equity
instruments of smaller institutions</header><text>For debt or equity
instruments issued before May 19, 2010, by depository institution holding
companies with total consolidated assets of less than $15,000,000,000 as of
December 31, 2009, and by organizations that were mutual holding companies on
May 19, 2010, the capital deductions that would be required for other
institutions under this section are not required as a result of this
section.</text>
</subparagraph><subparagraph id="H06ABA2E44F03484D8A91C4E0237D26D4"><enum>(D)</enum><header>Depository
institution holding companies not previously supervised by the board of
governors</header><text>For any depository institution holding company that was
not supervised by the Board of Governors as of May 19, 2010, the requirements
of this section, except as set forth in subparagraphs (A) and (B), shall be
effective 5 years after the date of enactment of this Act</text>
</subparagraph><subparagraph id="H5BB96BD360804E8BA6DFB37535A5CF78"><enum>(E)</enum><header>Certain bank
holding company subsidiaries of foreign banking organizations</header><text>For
bank holding company subsidiaries of foreign banking organizations that have
relied on Supervision and Regulation Letter SR-01-1 issued by the Board of
Governors (as in effect on May 19, 2010), the requirements of this section,
except as set forth in subparagraph (A), shall be effective 5 years after the
date of enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="H2F6FB016163E4E43B1DDF6B5395FE8A4"><enum>(5)</enum><header>Exceptions</header><text>This
section shall not apply to—</text>
<subparagraph id="H713D0EF7EEFD4F5D91DD5C3E0000AB40"><enum>(A)</enum><text>debt or equity
instruments issued to the United States or any agency or instrumentality
thereof pursuant to the Emergency Economic Stabilization Act of 2008, and prior
to October 4, 2010;</text>
</subparagraph><subparagraph id="H5C69AD2303A54C37AB4520190746A65F"><enum>(B)</enum><text>any Federal home
loan bank; or</text>
</subparagraph><subparagraph id="HB933031F130540DB94D3A08F7CF08D0E"><enum>(C)</enum><text>any small bank
holding company that is subject to the Small Bank Holding Company Policy
Statement of the Board of Governors, as in effect on May 19, 2010.</text>
</subparagraph></paragraph><paragraph id="H65620309D41949C2AFD89752F02A6171"><enum>(6)</enum><header>Study and report
on small institution access to capital</header>
<subparagraph id="H7D4A187DDB344B64A4030B938001B031"><enum>(A)</enum><header>Study
required</header><text>The Comptroller General of the United States, after
consultation with the Federal banking agencies, shall conduct a study of access
to capital by smaller insured depository institutions.</text>
</subparagraph><subparagraph id="HE62FF09866124B978C3B75536C62362B"><enum>(B)</enum><header>Scope</header><text>For
purposes of this study required by subparagraph (A), the term <quote>smaller
insured depository institution</quote> means an insured depository institution
with total consolidated assets of $5,000,000,000 or less.</text>
</subparagraph><subparagraph id="H2120B769E6884CF992600D637D6B9071"><enum>(C)</enum><header>Report to
Congress</header><text>Not later than 18 months after the date of enactment of
this Act, the Comptroller General of the United States shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a report
summarizing the results of the study conducted under subparagraph (A), together
with any recommendations for legislative or regulatory action that would
enhance the access to capital of smaller insured depository institutions, in a
manner that is consistent with safe and sound banking operations.</text>
</subparagraph></paragraph><paragraph id="HC2800F18B22A43F0A02B9BD4967A4977"><enum>(7)</enum><header>Capital
requirements to address activities that pose risks to the financial
system</header>
<subparagraph id="H81DEEC06AE3D47EF904539D38F784643"><enum>(A)</enum><header>In
general</header><text>Subject to the recommendations of the Council, in
accordance with section 120, the Federal banking agencies shall develop capital
requirements applicable to insured depository institutions, depository
institution holding companies, and nonbank financial companies supervised by
the Board of Governors that address the risks that the activities of such
institutions pose, not only to the institution engaging in the activity, but to
other public and private stakeholders in the event of adverse performance,
disruption, or failure of the institution or the activity.</text>
</subparagraph><subparagraph id="HF91216ABF316410596AFA562FDB5C012"><enum>(B)</enum><header>Content</header><text>Such
rules shall address, at a minimum, the risks arising from—</text>
<clause id="HA549836369D943989416E4D147AB228B"><enum>(i)</enum><text>significant
volumes of activity in derivatives, securitized products purchased and sold,
financial guarantees purchased and sold, securities borrowing and lending, and
repurchase agreements and reverse repurchase agreements;</text>
</clause><clause id="HAF2E9C22FCEE4376A019B132DFA8DBC9"><enum>(ii)</enum><text>concentrations in
assets for which the values presented in financial reports are based on models
rather than historical cost or prices deriving from deep and liquid 2-way
markets; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDB4972A707AF49FFAF105CC38035E543"><enum>(iii)</enum><text>concentrations
in market share for any activity that would substantially disrupt financial
markets if the institution is forced to unexpectedly cease the activity.</text>
</clause></subparagraph></paragraph></subsection></section><section id="H04C71D0CDA1743A396DA12501C0DF260"><enum>172.</enum><header>Examination and
enforcement actions for insurance and orderly liquidation purposes</header>
<subsection id="HB1587CF47D2C42D88F3319CA6FC17CFC"><enum>(a)</enum><header>Examinations for
insurance and resolution purposes</header><text>Section 10(b)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended—</text>
<paragraph id="H76587109E80546DE8B6A0FB19BFBBB37"><enum>(1)</enum><text>by striking
<quote>In addition</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEDFAA7BD66084210B06EE4F0B5BC4E87" style="OLC">
<subparagraph id="H75AF6258450C4859BC5D7D1F52A29DD5"><enum>(A)</enum><header>In
general</header><text>In addition</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H47EDF22F8BC446B986B130401F017810"><enum>(2)</enum><text>by striking
<quote>whenever the board of directors determines</quote> and all that follows
through the period and inserting the following: “or nonbank financial company
supervised by the Board of Governors or a bank holding company described in
section 165(a) of the Financial Stability Act of 2010, whenever the Board of
Directors determines that a special examination of any such depository
institution is necessary to determine the condition of such depository
institution for insurance purposes, or of such nonbank financial company
supervised by the Board of Governors or bank holding company described in
section 165(a) of the Financial Stability Act of 2010, for the purpose of
implementing its authority to provide for orderly liquidation of any such
company under title II of that Act, provided that such authority may not be
used with respect to any such company that is in a generally sound
condition.</text>
<quoted-block display-inline="no-display-inline" id="H1AE1E08DED63487F99972C1A5E714834" style="OLC">
<subparagraph id="H88BBAEF114D542AABC55086915614DE7"><enum>(B)</enum><header>Limitation</header><text>Before
conducting a special examination of a nonbank financial company supervised by
the Board of Governors or a bank holding company described in section 165(a) of
the Financial Stability Act of 2010, the Corporation shall review any available
and acceptable resolution plan that the company has submitted in accordance
with section 165(d) of that Act, consistent with the nonbinding effect of such
plan, and available reports of examination, and shall coordinate to the maximum
extent practicable with the Board of Governors, in order to minimize
duplicative or conflicting
examinations.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE1EE86780A374F62A16FB3140F861B90"><enum>(b)</enum><header>Enforcement
authority</header><text>Section 8(t) of the Federal Deposit Insurance Act (12
U.S.C. 1818(t)) is amended—</text>
<paragraph id="HF0617754D35740468A94ED76E4979A60"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>, any depository institution holding company,</quote>
before <quote>or any institution-affiliated party</quote>;</text>
</paragraph><paragraph id="H3BD4976B537E42BCBEA3B58A532B33EC"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H370DB4DBE987439F8F6A33F8349D27AC"><enum>(A)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (B);</text>
</subparagraph><subparagraph id="HF66B4BAC3E29483B8086B303CE9CA728"><enum>(B)</enum><text>at the end of
subparagraph (C), by striking the period and inserting <quote>or</quote>;
and</text>
</subparagraph><subparagraph id="HEA2E75FCD91F4DDBA23B6EE733FB60F8"><enum>(C)</enum><text>by inserting at
the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HEAE21897A6DD486FAAED8E8B58A1F4AC" style="OLC">
<subparagraph id="H50D8B7F4B563473B8C989AD29F8D0A86"><enum>(D)</enum><text>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;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HB9CA68A4DA364E688C87D5CD4CCE385F"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H16A698C288FE4F93823993A528600234" style="OLC">
<paragraph id="HFF4FCE796B964912A4A7F8D3B9CF6E3B"><enum>(6)</enum><header>Powers and
duties with respect to depository institution holding
companies</header><text>For purposes of exercising the backup authority
provided in this subsection—</text>
<subparagraph id="H45B9CA99B9E94B55B30CA8234EDEA946"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H1EDA5A1ECFA14D1E8C0D7411389609C7"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC2A4866CCD484A76B1C7B0AD26EE76F1"><enum>(c)</enum><header>Rule of
construction</header><text>Nothing in this Act shall be construed to limit or
curtail the Corporation’s current authority to examine or bring enforcement
actions with respect to any insured depository institution or
institution-affiliated party.</text>
</subsection></section><section id="H468455CD132343F1A5925FCAAD2098BB"><enum>173.</enum><header>Access to
United States financial market by foreign institutions</header>
<subsection id="HFAF355F3A400469399EC985E51E8959C"><enum>(a)</enum><header>Establishment of
foreign bank offices in the United States</header><text>Section 7(d)(3) of the
International Banking Act of 1978 (12 U.S.C. 3105(d)(3)) is amended—</text>
<paragraph id="H0DF82D65179D4E68B30349406DAD45AE"><enum>(1)</enum><text>in subparagraph
(C), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HAB82CC6BE7604C168E1908CA0970D135"><enum>(2)</enum><text>in subparagraph
(D), by striking the period at the end of and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H02979FFC7D0D49B2B453AA9475D6928F"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HE1E7F7924FE8469FAD132AA3D32CCD47" style="OLC">
<subparagraph id="HB87F147F718D46BAA3EC987556D6A6A9"><enum>(E)</enum><text>for a foreign bank
that presents a risk to the stability of United States financial system,
whether the home country of the foreign bank has adopted, or is making
demonstrable progress toward adopting, an appropriate system of financial
regulation for the financial system of such home country to mitigate such
risk.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H72A5EB0E557441909A089748B840E7F2"><enum>(b)</enum><header>Termination of
foreign bank offices in the United States</header><text>Section 7(e)(1) of the
International Banking Act of 1978 (12 U.S.C. 3105(e)(1)) is amended—</text>
<paragraph id="H2A17FECD66CA4A1B99432FC57EAD351E"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H50173990023D47479B85604D17A018F9"><enum>(2)</enum><text>in subparagraph
(B), by striking the period at the end of and inserting <quote>; or</quote>;
and</text>
</paragraph><paragraph id="H3572EE13903E40E48FC6DCC1345394F8"><enum>(3)</enum><text>by inserting after
subparagraph (B), the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H770808D8974D46B99953180BF63DA6B2" style="OLC">
<subparagraph id="H0BEB077964FB4D74BCCDA92FA70847DF"><enum>(C)</enum><text>for a foreign bank
that presents a risk to the stability of the United States financial system,
the home country of the foreign bank has not adopted, or made demonstrable
progress toward adopting, an appropriate system of financial regulation to
mitigate such
risk.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H61657D05A2F44ED9864EB292FA128559"><enum>(c)</enum><header>Registration or
succession to a United States broker or dealer and termination of such
registration</header><text>Section 15 of the Securities Exchange Act of 1934
(15 U.S.C. 78o) is amended by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="HD32542710A00470F916C372706643FD0" style="OLC">
<subsection id="H57EC81F1C1C24A05ABB2EBF2A13D20E9"><enum>(k)</enum><header>Registration or
succession to a United States broker or dealer</header><text>In determining
whether to permit a foreign person or an affiliate of a foreign person to
register as a United States broker or dealer, or succeed to the registration of
a United States broker or dealer, the Commission may consider whether, for a
foreign person, or an affiliate of a foreign person that presents a risk to the
stability of the United States financial system, the home country of the
foreign person has adopted, or made demonstrable progress toward adopting, an
appropriate system of financial regulation to mitigate such risk.</text>
</subsection><subsection id="H59D15CA241964EC49242FCD67F2E926F"><enum>(l)</enum><header>Termination of a
United States broker or dealer</header><text>For a foreign person or an
affiliate of a foreign person that presents such a risk to the stability of the
United States financial system, the Commission may determine to terminate the
registration of such foreign person or an affiliate of such foreign person as a
broker or dealer in the United States, if the Commission determines that the
home country of the foreign person has not adopted, or made demonstrable
progress toward adopting, an appropriate system of financial regulation to
mitigate such
risk.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HB4AFC6899D2C44BF9A9C9406E9E20023"><enum>174.</enum><header>Studies and
reports on holding company capital requirements</header>
<subsection id="HA0CA3E79AA534A05830B11DC323B5F0A"><enum>(a)</enum><header>Study of hybrid
capital instruments</header><text display-inline="yes-display-inline">The
Comptroller General of the United States, in consultation with the Board of
Governors, the Comptroller of the Currency, and the Corporation, shall conduct
a study of the use of hybrid capital instruments as a component of Tier 1
capital for banking institutions and bank holding companies. The study shall
consider—</text>
<paragraph id="H591B897E62F244DAB9ADDD4DEAAE2E4A"><enum>(1)</enum><text>the current use of
hybrid capital instruments, such as trust preferred shares, as a component of
Tier 1 capital;</text>
</paragraph><paragraph id="H8DBB9ECAB94847E48FB9AC722772247B"><enum>(2)</enum><text>the differences
between the components of capital permitted for insured depository institutions
and those permitted for companies that control insured depository
institutions;</text>
</paragraph><paragraph id="H279B4F5CC1F149809481CBF396387F51"><enum>(3)</enum><text>the benefits and
risks of allowing such instruments to be used to comply with Tier 1 capital
requirements;</text>
</paragraph><paragraph id="H6F3994DA1B944CD784442C6D92FF45D8"><enum>(4)</enum><text>the economic
impact of prohibiting the use of such capital instruments for Tier 1;</text>
</paragraph><paragraph id="H3D37AED6756E46BB913D498E39E81858"><enum>(5)</enum><text>a
review of the consequences of disqualifying trust preferred instruments, and
whether it could lead to the failure or undercapitalization of existing banking
organizations;</text>
</paragraph><paragraph id="H7666E2DE4D9B4CC98C75867E29CBABF8"><enum>(6)</enum><text>the international
competitive implications prohibiting hybrid capital instruments for Tier
1;</text>
</paragraph><paragraph id="H5A79B8157920496B97C67B633F65C4A4"><enum>(7)</enum><text>the impact on the
cost and availability of credit in the United States from such a
prohibition;</text>
</paragraph><paragraph id="H22114BBFF4A34555B68AA05FB748CDAD"><enum>(8)</enum><text>the availability
of capital for financial institutions with less than $10,000,000,000 in total
assets; and</text>
</paragraph><paragraph id="H28AEB40E7F58426A9211E129C588F939"><enum>(9)</enum><text>any other relevant
factors relating to the safety and soundness of our financial system and
potential economic impact of such a prohibition.</text>
</paragraph></subsection><subsection id="HB5BD135AE60E4C749AEF93BD8CA04C5B"><enum>(b)</enum><header>Study of foreign
bank intermediate holding company capital requirements</header><text>The
Comptroller General of the United States, in consultation with the Secretary,
the Board of Governors, the Comptroller of the Currency, and the Corporation,
shall conduct a study of capital requirements applicable to United States
intermediate holding companies of foreign banks that are bank holding companies
or savings and loan holding companies. The study shall consider—</text>
<paragraph id="HF6F6F8EE843C4801A36FE92F95CB4271"><enum>(1)</enum><text>current Board of
Governors policy regarding the treatment of intermediate holding
companies;</text>
</paragraph><paragraph id="HED203C583E134BB1A3126C94AF1FB61D"><enum>(2)</enum><text>the principle of
national treatment and equality of competitive opportunity for foreign banks
operating in the United States;</text>
</paragraph><paragraph id="HCD3BF34A085E4C71BCA19A9FD2C41ABD"><enum>(3)</enum><text>the extent to
which foreign banks are subject on a consolidated basis to home country capital
standards comparable to United States capital standards;</text>
</paragraph><paragraph id="H663FD46E20394F47A86797AEB6018455"><enum>(4)</enum><text>potential effects
on United States banking organizations operating abroad of changes to United
States policy regarding intermediate holding companies;</text>
</paragraph><paragraph id="H36BAF238D061465EBFB48B4C1A9E441A"><enum>(5)</enum><text>the impact on the
cost and availability of credit in the United States from a change in United
States policy regarding intermediate holding companies; and</text>
</paragraph><paragraph id="HE0EA188911D54DB5891602FF9EDDCF66"><enum>(6)</enum><text>any other relevant
factors relating to the safety and soundness of our financial system and
potential economic impact of such a prohibition.</text>
</paragraph></subsection><subsection id="H517C1896B1A94B0D99878EE42CDA7BB2"><enum>(c)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Comptroller
General of the United States shall submit reports to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives summarizing the results of the studies
required under subsection (a). The reports shall include specific
recommendations for legislative or regulatory action regarding the treatment of
hybrid capital instruments, including trust preferred shares, and shall explain
the basis for such recommendations.</text>
</subsection></section><section id="H2E5D9172ABE0405C856B89A0E14B58FF"><enum>175.</enum><header>International
policy coordination</header>
<subsection id="H0538E62576124818B705DD969DEA20FB"><enum>(a)</enum><header>By the
President</header><text>The President, or a designee of the President, may
coordinate through all available international policy channels, similar
policies as those found in United States law relating to limiting the scope,
nature, size, scale, concentration, and interconnectedness of financial
companies, in order to protect financial stability and the global
economy.</text>
</subsection><subsection id="H5B1ED37769E04AB1B573D67965A083E9"><enum>(b)</enum><header>By the
Council</header><text>The Chairperson of the Council, in consultation with the
other members of the Council, shall regularly consult with the financial
regulatory entities and other appropriate organizations of foreign governments
or international organizations on matters relating to systemic risk to the
international financial system.</text>
</subsection><subsection id="H02C3F3E6950F4B8AB30D654A1EB8A85F"><enum>(c)</enum><header>By the Board of
Governors and the Secretary</header><text>The Board of Governors and the
Secretary shall consult with their foreign counterparts and through appropriate
multilateral organizations to encourage comprehensive and robust prudential
supervision and regulation for all highly leveraged and interconnected
financial companies.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9B30E13B611F445785140CACF9E82376" section-type="subsequent-section"><enum>176.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">No regulation or
standard imposed under this title may be construed in a manner that would
lessen the stringency of the requirements of any applicable primary financial
regulatory agency or any other Federal or State agency that are otherwise
applicable. This title, and the rules and regulations or orders prescribed
pursuant to this title, do not divest any such agency of any authority derived
from any other applicable law.</text>
</section></subtitle><enum>II</enum><header>Orderly
liquidation authority</header>
<section id="HA3571CE3B781447BBBCD57754ADC3D8B"><enum>201.</enum><header>Definitions</header>
<subsection id="H02B327293D7344878E3DCF029F8F9016"><enum>(a)</enum><header>In
general</header><text>In this title, the following definitions shall
apply:</text>
<paragraph id="H38E3FF93CFFB4F87AFE6FAFE72520BC3"><enum>(1)</enum><header>Administrative
expenses of the receiver</header><text>The term <term>administrative expenses
of the receiver</term> includes—</text>
<subparagraph id="H6BBB073413A940ACB802B2A85B0C1D6C"><enum>(A)</enum><text>the actual,
necessary costs and expenses incurred by the Corporation as receiver for a
covered financial company in liquidating a covered financial company;
and</text>
</subparagraph><subparagraph id="HF376F5776EF54ABF8115F764C043258E"><enum>(B)</enum><text>any obligations
that the Corporation as receiver for a covered financial company determines are
necessary and appropriate to facilitate the smooth and orderly liquidation of
the covered financial company.</text>
</subparagraph></paragraph><paragraph id="HE5E11601F8F845A9B52C82EA6C327E5B"><enum>(2)</enum><header>Bankruptcy
code</header><text>The term <term>Bankruptcy Code</term> means title 11, United
States Code.</text>
</paragraph><paragraph id="H91FD1CC8B89741B2A8147213D63BEE76"><enum>(3)</enum><header>Bridge financial
company</header><text>The term <term>bridge financial company</term> means a
new financial company organized by the Corporation in accordance with section
210(h) for the purpose of resolving a covered financial company.</text>
</paragraph><paragraph id="H5C156929852D4057B9835928A4D31794"><enum>(4)</enum><header>Claim</header><text>The
term <term>claim</term> means any right to payment, whether or not such right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or
unsecured.</text>
</paragraph><paragraph commented="no" id="H70E8FB726A6D429C81EEE06B40DC441F"><enum>(5)</enum><header>Company</header><text>The
term <term>company</term> has the same meaning as in section 2(b) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(b)), except that such term includes
any company described in paragraph (11), the majority of the securities of
which are owned by the United States or any State.</text>
</paragraph><paragraph id="H538F352B9AF34D3591A74B48028A94C9"><enum>(6)</enum><header>Court</header><text>The
term <term>Court</term> means the United States District Court for the District
of Columbia, unless the context otherwise requires.</text>
</paragraph><paragraph commented="no" id="H7531A35D98A5445EBB675548F2CF88EB"><enum>(7)</enum><header>Covered broker
or dealer</header><text>The term <quote>covered broker or dealer</quote> means
a covered financial company that is a broker or dealer that—</text>
<subparagraph commented="no" id="H4178954129BF4D119149F5AD58F8A1A7"><enum>(A)</enum><text>is registered with
the Commission under section 15(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b)); and</text>
</subparagraph><subparagraph commented="no" id="H466F2D64367B4B8E9877B29EEF43B2F5"><enum>(B)</enum><text>is a member of
SIPC.</text>
</subparagraph></paragraph><paragraph id="HF890BB4DEB5A43E4B96079F98554078F"><enum>(8)</enum><header>Covered
financial company</header><text>The term <term>covered financial
company</term>—</text>
<subparagraph id="H3430F89036144BFCAB34F50D6206B934"><enum>(A)</enum><text>means a financial
company for which a determination has been made under section 203(b);
and</text>
</subparagraph><subparagraph id="H8617C09BD4FD4718B328BD52BCBDE4BC"><enum>(B)</enum><text>does not include
an insured depository institution.</text>
</subparagraph></paragraph><paragraph id="H29C264FD55B24211B09037B663338967"><enum>(9)</enum><header>Covered
subsidiary</header><text>The term <term>covered subsidiary</term> means a
subsidiary of a covered financial company, other than—</text>
<subparagraph id="H8E985ACE07C1402BA1165D7B5EFCCF73"><enum>(A)</enum><text>an insured
depository institution;</text>
</subparagraph><subparagraph commented="no" id="HC26E40BEEE464D99B13C5F69F152007D"><enum>(B)</enum><text>an insurance
company; or</text>
</subparagraph><subparagraph id="H68C94F2ACEB0423EB0FB366D080DFB40"><enum>(C)</enum><text>a covered broker
or dealer.</text>
</subparagraph></paragraph><paragraph id="H9EE9C447A6974B35B79CBE90341BD4A5"><enum>(10)</enum><header>Definitions
relating to covered brokers and dealers</header><text>The terms
<term>customer</term>, <term>customer name securities</term>, <term>customer
property</term>, and <term>net equity</term> in the context of a covered broker
or dealer, have the same meanings as in section 16 of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78lll).</text>
</paragraph><paragraph id="H1422F0C4193B49548D8CE977B6DA856F"><enum>(11)</enum><header>Financial
company</header><text>The term <term>financial company</term> means any company
that—</text>
<subparagraph id="H37F81C8179E2479E9422C7EA47F0237D"><enum>(A)</enum><text>is incorporated or
organized under any provision of Federal law or the laws of any State;</text>
</subparagraph><subparagraph id="H2F4E217F68D448C0B52BF46B0324BAE9"><enum>(B)</enum><text>is—</text>
<clause id="H2F6BB67093A849BFB6F8048D06E220FC"><enum>(i)</enum><text>a
bank holding company, as defined in section 2(a) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(a));</text>
</clause><clause id="H3868A78E01234E3E8406071BC1B4DE0B"><enum>(ii)</enum><text>a
nonbank financial company supervised by the Board of Governors;</text>
</clause><clause id="HB696AB2A037042FB97EEAEA4A5066B3D"><enum>(iii)</enum><text>any company that
is predominantly engaged in activities that the Board of Governors has
determined are financial in nature or incidental thereto for purposes of
section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) other
than a company described in clause (i) or (ii); or</text>
</clause><clause id="HB5C547F58E9B4E4B8152A8497DB9F067"><enum>(iv)</enum><text>any
subsidiary of any company described in any of clauses (i) through (iii) that is
predominantly engaged in activities that the Board of Governors has determined
are financial in nature or incidental thereto for purposes of section 4(k) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) (other than a
subsidiary that is an insured depository institution or an insurance company);
and</text>
</clause></subparagraph><subparagraph id="H37E0ADCB3F5148E5BE67A48CBA2992AD"><enum>(C)</enum><text>is not a Farm
Credit System institution chartered under and subject to the provisions of the
Farm Credit Act of 1971, as amended (12 U.S.C. 2001 et seq.), a governmental
entity, or a regulated entity, as defined under section 1303(20) of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4502(20)).</text>
</subparagraph></paragraph><paragraph id="HD3B5CC3A80EE4BA685DCE422C495DDB1"><enum>(12)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Orderly Liquidation Fund established under
section 210(n).</text>
</paragraph><paragraph id="H63677473F0C542A6A3CF37F719548136"><enum>(13)</enum><header>Insurance
company</header><text>The term <term>insurance company</term> means any entity
that is—</text>
<subparagraph id="H8B531040A0A54CD7B8D9D7CDBA60E127"><enum>(A)</enum><text>engaged in the
business of insurance;</text>
</subparagraph><subparagraph id="H5F9A23969E23491195939736B3EC65D2"><enum>(B)</enum><text>subject to
regulation by a State insurance regulator; and</text>
</subparagraph><subparagraph commented="no" id="H54ED1AEB4A5540D198B703CE478F7820"><enum>(C)</enum><text>covered by a State
law that is designed to specifically deal with the rehabilitation, liquidation,
or insolvency of an insurance company.</text>
</subparagraph></paragraph><paragraph id="H9F5DC0A253134439886920AF4188C0B4"><enum>(14)</enum><header>Nonbank
financial company</header><text>The term <term>nonbank financial company</term>
has the same meaning as in section 102(a)(4)(C).</text>
</paragraph><paragraph id="H2B6ABCB91BB04D7A9D418618000F6C2A"><enum>(15)</enum><header>Nonbank
financial company supervised by the board of governors</header><text>The term
<term>nonbank financial company supervised by the Board of Governors</term> has
the same meaning as in section 102(a)(4)(D).</text>
</paragraph><paragraph id="H32E04D2D0AB74D68A54A95DC6AC68CE8"><enum>(16)</enum><header>SIPC</header><text>The
term <term>SIPC</term> means the Securities Investor Protection
Corporation.</text>
</paragraph></subsection><subsection commented="no" id="H3466E29A0D044C299A8E62E88030E0E4"><enum>(b)</enum><header>Definitional
criteria</header><text>For purpose of the definition of the term
<term>financial company</term> under subsection (a)(11), no company shall be
deemed to be predominantly engaged in activities that the Board of Governors
has determined are financial in nature or incidental thereto for purposes of
section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)), if
the consolidated revenues of such company from such activities constitute less
than 85 percent of the total consolidated revenues of such company, as the
Corporation, in consultation with the Secretary, shall establish by regulation.
In determining whether a company is a financial company under this title, the
consolidated revenues derived from the ownership or control of a depository
institution shall be included.</text>
</subsection></section><section id="H9AFC58FD41A74E35A15CBC7FDDFB95F3"><enum>202.</enum><header>Judicial
review</header>
<subsection id="HEEC8F018B2414DA4BD2C5297E14B780C"><enum>(a)</enum><header>Commencement of
orderly liquidation</header>
<paragraph id="H65EECE79C4CC42A9BB423A642FF4D2EB"><enum>(1)</enum><header>Petition to
district court</header>
<subparagraph id="H5BBA561418B844BABA25ECDE91FDC1FB"><enum>(A)</enum><header>District court
review</header>
<clause id="HBEB8A665B51945E59068461F5279A5A6"><enum>(i)</enum><header>Petition to
district court</header><text>Subsequent to a determination by the Secretary
under section 203 that a financial company satisfies the criteria in section
203(b), the Secretary shall notify the Corporation and the covered financial
company. If the board of directors (or body performing similar functions) of
the covered financial company acquiesces or consents to the appointment of the
Corporation as receiver, the Secretary shall appoint the Corporation as
receiver. If the board of directors (or body performing similar functions) of
the covered financial company does not acquiesce or consent to the appointment
of the Corporation as receiver, the Secretary shall petition the United States
District Court for the District of Columbia for an order authorizing the
Secretary to appoint the Corporation as receiver.</text>
</clause><clause id="H3DB3AEF3C33242D7A5D471D57C67B281"><enum>(ii)</enum><header>Form and
content of order</header><text>The Secretary shall present all relevant
findings and the recommendation made pursuant to section 203(a) to the Court.
The petition shall be filed under seal.</text>
</clause><clause id="HAB9083C32519481C85E2ED9E583B0DB7"><enum>(iii)</enum><header>Determination</header><text>On
a strictly confidential basis, and without any prior public disclosure, the
Court, after notice to the covered financial company and a hearing in which the
covered financial company may oppose the petition, shall determine whether the
determination of the Secretary that the covered financial company is in default
or in danger of default and satisfies the definition of a financial company
under section 201(a)(11) is arbitrary and capricious.</text>
</clause><clause id="H81695D6E841C4B3FBE969F07DCE4B786"><enum>(iv)</enum><header>Issuance of
order</header><text>If the Court determines that the determination of the
Secretary that the covered financial company is in default or in danger of
default and satisfies the definition of a financial company under section
201(a)(11)—</text>
<subclause id="H2563F1E7FC8F491C8E6E2E3735DB71FC"><enum>(I)</enum><text>is not arbitrary
and capricious, the Court shall issue an order immediately authorizing the
Secretary to appoint the Corporation as receiver of the covered financial
company; or</text>
</subclause><subclause id="HC0478617D3F24DFA8081CE60698D90D9"><enum>(II)</enum><text>is arbitrary and
capricious, the Court shall immediately provide to the Secretary a written
statement of each reason supporting its determination, and afford the Secretary
an immediate opportunity to amend and refile the petition under clause
(i).</text>
</subclause></clause><clause commented="no" id="HE87F85FB8FCF46ADAFEDAE9AB64E317E"><enum>(v)</enum><header>Petition granted
by operation of law</header><text>If the Court does not make a determination
within 24 hours of receipt of the petition—</text>
<subclause commented="no" id="HC9CFC2DCD4C74175BF285D069C72B8FB"><enum>(I)</enum><text>the petition shall
be granted by operation of law;</text>
</subclause><subclause commented="no" id="H16D93D884D9D46FC81F993C54227AC02"><enum>(II)</enum><text>the Secretary
shall appoint the Corporation as receiver; and</text>
</subclause><subclause commented="no" id="HA2DF37DFE8A84CC192FF26B96F1E3959"><enum>(III)</enum><text>liquidation
under this title shall automatically and without further notice or action be
commenced and the Corporation may immediately take all actions authorized under
this title.</text>
</subclause></clause></subparagraph><subparagraph id="HCBA3CE506E514A25A3D533826BC9A73B"><enum>(B)</enum><header>Effect of
determination</header><text>The determination of the Court under subparagraph
(A) shall be final, and shall be subject to appeal only in accordance with
paragraph (2). The decision shall not be subject to any stay or injunction
pending appeal. Upon conclusion of its proceedings under subparagraph (A), the
Court shall provide immediately for the record a written statement of each
reason supporting the decision of the Court, and shall provide copies thereof
to the Secretary and the covered financial company.</text>
</subparagraph><subparagraph id="H9BDF939940C24CE39FF2DFC30FC780B8"><enum>(C)</enum><header>Criminal
penalties</header><text>A person who recklessly discloses a determination of
the Secretary under section 203(b) or a petition of the Secretary under
subparagraph (A), or the pendency of court proceedings as provided for under
subparagraph (A), shall be fined not more than $250,000, or imprisoned for not
more than 5 years, or both.</text>
</subparagraph></paragraph><paragraph id="H7AC086729EBB499884BF898FC284D407"><enum>(2)</enum><header>Appeal of
decisions of the district court</header>
<subparagraph id="HF5EEF91BC4F744A3A05FA61CFDC910A6"><enum>(A)</enum><header>Appeal to court
of appeals</header>
<clause id="H30E008F01C824790ADAD56DCCF481687"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), the United States Court of
Appeals for the District of Columbia Circuit shall have jurisdiction of an
appeal of a final decision of the Court filed by the Secretary or a covered
financial company, through its board of directors, notwithstanding section
210(a)(1)(A)(i), not later than 30 days after the date on which the decision of
the Court is rendered or deemed rendered under this subsection.</text>
</clause><clause id="H7050175F692E4B0F9026F827C1CFCE6B"><enum>(ii)</enum><header>Condition of
jurisdiction</header><text>The Court of Appeals shall have jurisdiction of an
appeal by a covered financial company only if the covered financial company did
not acquiesce or consent to the appointment of a receiver by the Secretary
under paragraph (1)(A).</text>
</clause><clause id="HAB5D7E2B9EFF43EBAB600777828FEB8B"><enum>(iii)</enum><header>Expedition</header><text>The
Court of Appeals shall consider any appeal under this subparagraph on an
expedited basis.</text>
</clause><clause id="H6C7198FD54C242709FCF91D3C0B40912"><enum>(iv)</enum><header>Scope of
review</header><text>For an appeal taken under this subparagraph, review shall
be limited to whether the determination of the Secretary that a covered
financial company is in default or in danger of default and satisfies the
definition of a financial company under section 201(a)(11) is arbitrary and
capricious.</text>
</clause></subparagraph><subparagraph id="H4796EE40F8C047F592A799B3E72E96CF"><enum>(B)</enum><header>Appeal to the
supreme court</header>
<clause id="HE2BFEAC728CA463DB6E54047EC6856C9"><enum>(i)</enum><header>In
general</header><text>A petition for a writ of certiorari to review a decision
of the Court of Appeals under subparagraph (A) may be filed by the Secretary or
the covered financial company, through its board of directors, notwithstanding
section 210(a)(1)(A)(i), with the Supreme Court of the United States, not later
than 30 days after the date of the final decision of the Court of Appeals, and
the Supreme Court shall have discretionary jurisdiction to review such
decision.</text>
</clause><clause id="H2F940D7C3E8243F680E6F644CB43EA66"><enum>(ii)</enum><header>Written
statement</header><text>In the event of a petition under clause (i), the Court
of Appeals shall immediately provide for the record a written statement of each
reason for its decision.</text>
</clause><clause id="H0F618F0123BF449DBC8B6B29742B26B0"><enum>(iii)</enum><header>Expedition</header><text>The
Supreme Court shall consider any petition under this subparagraph on an
expedited basis.</text>
</clause><clause id="H71CD9BE588E349F0AE1356F2DD2AD5ED"><enum>(iv)</enum><header>Scope of
review</header><text>Review by the Supreme Court under this subparagraph shall
be limited to whether the determination of the Secretary that the covered
financial company is in default or in danger of default and satisfies the
definition of a financial company under section 201(a)(11) is arbitrary and
capricious.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H1B06FA95E8CA4F9288A6995D456343C3"><enum>(b)</enum><header>Establishment
and transmittal of rules and procedures</header>
<paragraph id="H06F3EF8DB2F0430E864304B87D186C0C"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the date of enactment of
this Act, the Court shall establish such rules and procedures as may be
necessary to ensure the orderly conduct of proceedings, including rules and
procedures to ensure that the 24-hour deadline is met and that the Secretary
shall have an ongoing opportunity to amend and refile petitions under
subsection (a)(1).</text>
</paragraph><paragraph id="H66808BACC5AA483A9C5B7F3A6D62E529"><enum>(2)</enum><header>Publication of
rules</header><text>The rules and procedures established under paragraph (1),
and any modifications of such rules and procedures, shall be recorded and shall
be transmitted to—</text>
<subparagraph id="H679CFD4AF50049709A107C24E24EE880"><enum>(A)</enum><text>the Committee on
the Judiciary of the Senate;</text>
</subparagraph><subparagraph id="HD96C2DAA4A2D419A81C1E9B5DD94A955"><enum>(B)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate;</text>
</subparagraph><subparagraph id="H59EDA26551ED4F9693B7A4530652515B"><enum>(C)</enum><text>the Committee on
the Judiciary of the House of Representatives; and</text>
</subparagraph><subparagraph id="H2A42D8E3523E4B378E5BF4DDDA4D9CA5"><enum>(D)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph></subsection><subsection id="HA3237B59946546949A0EA664ABF9F239"><enum>(c)</enum><header>Provisions
applicable to financial companies</header>
<paragraph id="HECC0BE79A5284E0CB4B62F55F02D8B20"><enum>(1)</enum><header>Bankruptcy
code</header><text>Except as provided in this subsection, the provisions of the
Bankruptcy Code and rules issued thereunder or otherwise applicable insolvency
law, and not the provisions of this title, shall apply to financial companies
that are not covered financial companies for which the Corporation has been
appointed as receiver.</text>
</paragraph><paragraph id="H45803CF5AF624FE18B7D73E21A3CB3EB"><enum>(2)</enum><header>This
title</header><text>The provisions of this title shall exclusively apply to and
govern all matters relating to covered financial companies for which the
Corporation is appointed as receiver, and no provisions of the Bankruptcy Code
or the rules issued thereunder shall apply in such cases, except as expressly
provided in this title.</text>
</paragraph></subsection><subsection id="H0FBFEAC20251415AB9512D161542ACD5"><enum>(d)</enum><header>Time limit on
receivership authority</header>
<paragraph id="H50CE10BC60844ADD8734A9DB7CC6610B"><enum>(1)</enum><header>Baseline
period</header><text>Any appointment of the Corporation as receiver under this
section shall terminate at the end of the 3-year period beginning on the date
on which such appointment is made.</text>
</paragraph><paragraph id="H49AFAE4622DC472C988B10D5135ABAE5"><enum>(2)</enum><header>Extension of
time limit</header><text>The time limit established in paragraph (1) may be
extended by the Corporation for up to 1 additional year, if the Chairperson of
the Corporation determines and certifies in writing to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that continuation of the
receivership is necessary—</text>
<subparagraph id="H1AD80C1F490B4C84AD1ED21AC25CCDCD"><enum>(A)</enum><text>to—</text>
<clause id="H3C0FDE753FB1462EA1000AF50806BECF"><enum>(i)</enum><text>maximize the net
present value return from the sale or other disposition of the assets of the
covered financial company; or</text>
</clause><clause id="H78B08F2DE66A4D87BE97A3A9FC2614FE"><enum>(ii)</enum><text>minimize the
amount of loss realized upon the sale or other disposition of the assets of the
covered financial company; and</text>
</clause></subparagraph><subparagraph id="HC926793A765D42AFA7B9017B9C0126F3"><enum>(B)</enum><text>to protect the
stability of the financial system of the United States.</text>
</subparagraph></paragraph><paragraph id="H7767CF52665B4DFFB4BE4560701C2DCD"><enum>(3)</enum><header>Second extension
of time limit</header>
<subparagraph id="H2DEA38B2060742B4956B40828EA7DD66"><enum>(A)</enum><header>In
general</header><text>The time limit under this subsection, as extended under
paragraph (2), may be extended for up to 1 additional year, if the Chairperson
of the Corporation, with the concurrence of the Secretary, submits the
certifications described in paragraph (2).</text>
</subparagraph><subparagraph id="H89C0CC25FF0149C890D0C095A68A9385"><enum>(B)</enum><header>Additional
report required</header><text>Not later than 30 days after the date of
commencement of the extension under subparagraph (A), the Corporation shall
submit a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
describing the need for the extension and the specific plan of the Corporation
to conclude the receivership before the end of the second extension.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC37384DBA40A4C33B7B2160FF76299A7"><enum>(4)</enum><header>Ongoing
litigation</header><text>The time limit under this subsection, as extended
under paragraph (3), may be further extended solely for the purpose of
completing ongoing litigation in which the Corporation as receiver is a party,
provided that the appointment of the Corporation as receiver shall terminate
not later than 90 days after the date of completion of such litigation,
if—</text>
<subparagraph commented="no" id="HC7DB0DC7579443FFB14B6C2BCC22CF99"><enum>(A)</enum><text>the Council
determines that the Corporation used its best efforts to conclude the
receivership in accordance with its plan before the end of the time limit
described in paragraph (3);</text>
</subparagraph><subparagraph commented="no" id="HEB1CEE786C7941BD81FA933924CF4A44"><enum>(B)</enum><text>the Council
determines that the completion of longer-term responsibilities in the form of
ongoing litigation justifies the need for an extension; and</text>
</subparagraph><subparagraph commented="no" id="H2D2D14B489464A80B0EA928020170A44"><enum>(C)</enum><text>the Corporation
submits a report approved by the Council not later than 30 days after the date
of the determinations by the Council under subparagraphs (A) and (B) to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives,
describing—</text>
<clause commented="no" id="H2F514AB368A5442C9D2D3CBE3D13848E"><enum>(i)</enum><text>the ongoing
litigation justifying the need for an extension; and</text>
</clause><clause commented="no" id="HC457472497374EA9880294D8F3882A9C"><enum>(ii)</enum><text>the specific plan
of the Corporation to complete the litigation and conclude the
receivership.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F322A4A828042AE8D09906EC63739D8"><enum>(5)</enum><header>Regulations</header><text>The
Corporation may issue regulations governing the termination of receiverships
under this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF0073B0FF830444D921BF5146C15424B"><enum>(6)</enum><header>No
liability</header><text>The Corporation and the Deposit Insurance Fund shall
not be liable for unresolved claims arising from the receivership after the
termination of the receivership.</text>
</paragraph></subsection><subsection id="H1BF99D7BAB6E4368988D18F35F620A4D"><enum>(e)</enum><header>Study of
bankruptcy and orderly liquidation process for financial companies</header>
<paragraph id="H364CF65EA7824FE3A38072B1BAB9383C"><enum>(1)</enum><header>Study</header>
<subparagraph id="HEE159642B70B449182C3B14CDDD513B1"><enum>(A)</enum><header>In
general</header><text>The Administrative Office of the United States Courts and
the Comptroller General of the United States shall each monitor the activities
of the Court, and each such Office shall conduct separate studies regarding the
bankruptcy and orderly liquidation process for financial companies under the
Bankruptcy Code.</text>
</subparagraph><subparagraph id="HB14ADBEB568447809E5092213FC01EC6"><enum>(B)</enum><header>Issues to be
studied</header><text>In conducting the study under subparagraph (A), the
Administrative Office of the United States Courts and the Comptroller General
of the United States each shall evaluate—</text>
<clause id="H3307D6051DE0475E9DD272355EB7BCD6"><enum>(i)</enum><text>the
effectiveness of chapter 7 or chapter 11 of the Bankruptcy Code in facilitating
the orderly liquidation or reorganization of financial companies;</text>
</clause><clause id="H8DCC7A335E7A4C2ABFD009CCC2AF01A0"><enum>(ii)</enum><text>ways to maximize
the efficiency and effectiveness of the Court; and</text>
</clause><clause id="HFAB9F6DD0108482EB92FE8326ED71170"><enum>(iii)</enum><text>ways to make the
orderly liquidation process under the Bankruptcy Code for financial companies
more effective.</text>
</clause></subparagraph></paragraph><paragraph id="H28C093B43746440AAB31656EA4DB8BC3"><enum>(2)</enum><header>Reports</header><text>Not
later than 1 year after the date of enactment of this Act, in each successive
year until the third year, and every fifth year after that date of enactment,
the Administrative Office of the United States Courts and the Comptroller
General of the United States shall submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on the Judiciary of the Senate and the
Committee on Financial Services and the Committee on the Judiciary of the House
of Representatives separate reports summarizing the results of the studies
conducted under paragraph (1).</text>
</paragraph></subsection><subsection id="H8DA1697A4A0F4FFF808977E181E4815E"><enum>(f)</enum><header>Study of
international coordination relating to bankruptcy process for financial
companies</header>
<paragraph id="H4962BC1B52F3428C9C0EC93B27FF7788"><enum>(1)</enum><header>Study</header>
<subparagraph id="HBC6E970C9FD041BA84D342AC6FF0F7D9"><enum>(A)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study regarding international coordination relating to the orderly
liquidation of financial companies under the Bankruptcy Code.</text>
</subparagraph><subparagraph id="H84C1E1BE329A4AECBA52178C85042BE3"><enum>(B)</enum><header>Issues to be
studied</header><text>In conducting the study under subparagraph (A), the
Comptroller General of the United States shall evaluate, with respect to the
bankruptcy process for financial companies—</text>
<clause id="HB24BE54D2FEC4F1F87DD27BA689B871A"><enum>(i)</enum><text>the
extent to which international coordination currently exists;</text>
</clause><clause id="HBF0B5BDC88E14B7C8FB94323AF204BE5"><enum>(ii)</enum><text>current
mechanisms and structures for facilitating international cooperation;</text>
</clause><clause id="HA8366320CC894F5081B12D15EB5DF9F8"><enum>(iii)</enum><text>barriers to
effective international coordination; and</text>
</clause><clause id="HB5CB4E4D12344B82978919BFD322E9FB"><enum>(iv)</enum><text>ways to increase
and make more effective international coordination.</text>
</clause></subparagraph></paragraph><paragraph id="H2B37F13784FA4D06BEED07DB4E7391CF"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General of the United States shall submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on the Judiciary of the Senate and the
Committee on Financial Services and the Committee on the Judiciary of the House
of Representatives and the Secretary a report summarizing the results of the
study conducted under paragraph (1).</text>
</paragraph></subsection><subsection id="H7539878804A44DDA8DC25B119D4583BC"><enum>(g)</enum><header>Study of prompt
corrective action implementation by the appropriate Federal agencies</header>
<paragraph id="H3BDA6CC87C4448A9B158ACA43012FD76"><enum>(1)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study regarding the
implementation of prompt corrective action by the appropriate Federal banking
agencies.</text>
</paragraph><paragraph id="HC8D8CFD4C28C4146BA89DEFF15DC615B"><enum>(2)</enum><header>Issues to be
studied</header><text>In conducting the study under paragraph (1), the
Comptroller General shall evaluate—</text>
<subparagraph id="H78FE0413462749B9AA6A956DFDDBEB27"><enum>(A)</enum><text>the effectiveness
of implementation of prompt corrective action by the appropriate Federal
banking agencies and the resolution of insured depository institutions by the
Corporation; and</text>
</subparagraph><subparagraph id="HA88FFFC0663943ED9FE059B43BF54EBB"><enum>(B)</enum><text>ways to make
prompt corrective action a more effective tool to resolve the insured
depository institutions at the least possible long-term cost to the Deposit
Insurance Fund.</text>
</subparagraph></paragraph><paragraph id="H7FA9069709AD4FCAAC47169899B67F9A"><enum>(3)</enum><header>Report to
council</header><text>Not later than 1 year after the date of enactment of this
Act, the Comptroller General shall submit a report to the Council on the
results of the study conducted under this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB8C4973F13D485AB8F62C5D4964A4CD"><enum>(4)</enum><header>Council report
of action</header><text>Not later than 6 months after the date of receipt of
the report from the Comptroller General under paragraph (3), the Council shall
submit a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
on actions taken in response to the report, including any recommendations made
to the Federal primary financial regulatory agencies under section 120.</text>
</paragraph></subsection></section><section id="H8E5A3A43FF98478FA588907BD3E314D0"><enum>203.</enum><header>Systemic risk
determination</header>
<subsection id="H2D8BEB71EB4840BBBAFA9D26D7456C4C"><enum>(a)</enum><header>Written
recommendation and determination</header>
<paragraph id="HAF7AC1AEE7454C359A78D26EC14BB8F6"><enum>(1)</enum><header>Vote
required</header>
<subparagraph id="H1055957D12F34122A5D7CCA8A9BEED92"><enum>(A)</enum><header>In
general</header><text>On their own initiative, or at the request of the
Secretary, the Corporation and the Board of Governors shall consider whether to
make a written recommendation described in paragraph (2) with respect to
whether the Secretary should appoint the Corporation as receiver for a
financial company. Such recommendation shall be made upon a vote of not fewer
than <fraction>2/3</fraction> of the members of the Board of Governors then
serving and <fraction>2/3</fraction> of the members of the board of directors
of the Corporation then serving.</text>
</subparagraph><subparagraph id="HC56EF93483E9449CAC1C570BDDF01441"><enum>(B)</enum><header>Cases involving
brokers or dealers</header><text>In the case of a broker or dealer, or in which
the largest United States subsidiary (as measured by total assets as of the end
of the previous calendar quarter) of a financial company is a broker or dealer,
the Commission and the Board of Governors, at the request of the Secretary, or
on their own initiative, shall consider whether to make the written
recommendation described in paragraph (2) with respect to the financial
company. Subject to the requirements in paragraph (2), such recommendation
shall be made upon a vote of not fewer than <fraction>2/3</fraction> of the
members of the Board of Governors then serving and <fraction>2/3</fraction> of
the members of the Commission then serving, and in consultation with the
Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDD1B01BDA09C4C1A8BDA1859E7910575"><enum>(C)</enum><header display-inline="yes-display-inline">Cases involving insurance
companies</header><text display-inline="yes-display-inline">In the case of an
insurance company, or in which the largest United States subsidiary (as
measured by total assets as of the end of the previous calendar quarter) of a
financial company is an insurance company, the Director of the Federal
Insurance Office and the Board of Governors, at the request of the Secretary or
on their own initiative, shall consider whether to make the written
recommendation described in paragraph (2) with respect to the financial
company. Subject to the requirements in paragraph (2), such recommendation
shall be made upon a vote of not fewer than <fraction>2/3</fraction> of the
Board of Governors then serving and the affirmative approval of the Director of
the Federal Insurance Office, and in consultation with the Corporation.</text>
</subparagraph></paragraph><paragraph id="HA09D418BA47446D4ADA782B12925684E"><enum>(2)</enum><header>Recommendation
required</header><text>Any written recommendation pursuant to paragraph (1)
shall contain—</text>
<subparagraph id="HA2CC8E05BC634AE09FA78A378C98B2A4"><enum>(A)</enum><text>an evaluation of
whether the financial company is in default or in danger of default;</text>
</subparagraph><subparagraph id="H618781D1D5A848EBA11D2B6B44A37443"><enum>(B)</enum><text>a description of
the effect that the default of the financial company would have on financial
stability in the United States;</text>
</subparagraph><subparagraph id="HB5ED447BDE7849B38ED0CB8C7E36A36A"><enum>(C)</enum><text>a description of
the effect that the default of the financial company would have on economic
conditions or financial stability for low income, minority, or underserved
communities;</text>
</subparagraph><subparagraph id="H77C8368DE1714B10946E79D6F1A11A02"><enum>(D)</enum><text>a recommendation
regarding the nature and the extent of actions to be taken under this title
regarding the financial company;</text>
</subparagraph><subparagraph id="HDAAF88ABC62944DE825EEE99A07AA668"><enum>(E)</enum><text>an evaluation of
the likelihood of a private sector alternative to prevent the default of the
financial company;</text>
</subparagraph><subparagraph id="H4BA0FB1EA65649A7A17B9BA093CE9D1B"><enum>(F)</enum><text>an evaluation of
why a case under the Bankruptcy Code is not appropriate for the financial
company;</text>
</subparagraph><subparagraph id="H58391682A7AB4084A71B8A869EB0ED80"><enum>(G)</enum><text>an evaluation of
the effects on creditors, counterparties, and shareholders of the financial
company and other market participants; and</text>
</subparagraph><subparagraph id="HAF81FD46C3E3406A825404D78903D6A3"><enum>(H)</enum><text>an evaluation of
whether the company satisfies the definition of a financial company under
section 201.</text>
</subparagraph></paragraph></subsection><subsection id="HF577C8594A7D43F3B2717866FD5BC596"><enum>(b)</enum><header>Determination by
the Secretary</header><text>Notwithstanding any other provision of Federal or
State law, the Secretary shall take action in accordance with section
202(a)(1)(A), if, upon the written recommendation under subsection (a), the
Secretary (in consultation with the President) determines that—</text>
<paragraph id="H7930BE999D5446588E74646B7E8377C8"><enum>(1)</enum><text>the financial
company is in default or in danger of default;</text>
</paragraph><paragraph id="HE5078B3AD2AA4E13A678798656572C28"><enum>(2)</enum><text>the failure of the
financial company and its resolution under otherwise applicable Federal or
State law would have serious adverse effects on financial stability in the
United States;</text>
</paragraph><paragraph id="H4D77991EB76340BEBEA7514018D20C5A"><enum>(3)</enum><text>no viable private
sector alternative is available to prevent the default of the financial
company;</text>
</paragraph><paragraph id="HE2891A009DFD4988ADB44447F305AD63"><enum>(4)</enum><text>any effect on the
claims or interests of creditors, counterparties, and shareholders of the
financial company and other market participants as a result of actions to be
taken under this title is appropriate, given the impact that any action taken
under this title would have on financial stability in the United States;</text>
</paragraph><paragraph id="H6507FE5CAB8F46C6A33457DEE4D6776D"><enum>(5)</enum><text>any action under
section 204 would avoid or mitigate such adverse effects, taking into
consideration the effectiveness of the action in mitigating potential adverse
effects on the financial system, the cost to the general fund of the Treasury,
and the potential to increase excessive risk taking on the part of creditors,
counterparties, and shareholders in the financial company;</text>
</paragraph><paragraph commented="no" id="H989128DA71524930BA253870CF0156C3"><enum>(6)</enum><text>a Federal
regulatory agency has ordered the financial company to convert all of its
convertible debt instruments that are subject to the regulatory order;
and</text>
</paragraph><paragraph id="H64EFEB988B0F4D8590507801DA7C1007"><enum>(7)</enum><text>the company
satisfies the definition of a financial company under section 201.</text>
</paragraph></subsection><subsection id="HE6C24869327242D88DE7FC7995537DC9"><enum>(c)</enum><header>Documentation
and review</header>
<paragraph id="HDF373AD3CFFB4A2781A1D230CF0BB49D"><enum>(1)</enum><header>In
general</header><text>The Secretary shall—</text>
<subparagraph id="HCC40A72713844BC591DEFB187FC03EB0"><enum>(A)</enum><text>document any
determination under subsection (b);</text>
</subparagraph><subparagraph id="H97DC9455D80A4B10BDDF460DD5CB6C37"><enum>(B)</enum><text>retain the
documentation for review under paragraph (2); and</text>
</subparagraph><subparagraph id="H3B0551A39E4E49ECB7046579CCFED0DB"><enum>(C)</enum><text>notify the covered
financial company and the Corporation of such determination.</text>
</subparagraph></paragraph><paragraph id="H7E428E311EC34CB9B223E2696E571D03"><enum>(2)</enum><header>Report to
congress</header><text>Not later than 24 hours after the date of appointment of
the Corporation as receiver for a covered financial company, the Secretary
shall provide written notice of the recommendations and determinations reached
in accordance with subsections (a) and (b) to the Majority Leader and the
Minority Leader of the Senate and the Speaker and the Minority Leader of the
House of Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Committee on Financial Services of the House of
Representatives, which shall consist of a summary of the basis for the
determination, including, to the extent available at the time of the
determination—</text>
<subparagraph id="H8F6A8BBD991A490484509821C6E8FBEC"><enum>(A)</enum><text>the size and
financial condition of the covered financial company;</text>
</subparagraph><subparagraph id="H111E9630E0304EDBAA154294FF931253"><enum>(B)</enum><text>the sources of
capital and credit support that were available to the covered financial
company;</text>
</subparagraph><subparagraph id="H20A282C359EF4451AF52021B1BEE3EC3"><enum>(C)</enum><text>the operations of
the covered financial company that could have had a significant impact on
financial stability, markets, or both;</text>
</subparagraph><subparagraph id="HA99482DCAF6D4DF3904E8BE1D892711F"><enum>(D)</enum><text>identification of
the banks and financial companies which may be able to provide the services
offered by the covered financial company;</text>
</subparagraph><subparagraph id="H1EB113EF73FE4DCEAECDC9FBE09C7C41"><enum>(E)</enum><text>any potential
international ramifications of resolution of the covered financial company
under other applicable insolvency law;</text>
</subparagraph><subparagraph id="HF5AD21B5A0C54C2FA6DFCFDB1A8D6F83"><enum>(F)</enum><text>an estimate of the
potential effect of the resolution of the covered financial company under other
applicable insolvency law on the financial stability of the United
States;</text>
</subparagraph><subparagraph id="H167CED8D4D5F4AC38B70FAD616F403F6"><enum>(G)</enum><text>the potential
effect of the appointment of a receiver by the Secretary on consumers;</text>
</subparagraph><subparagraph id="HD1AE2BE546EA4B41AE4A35A8BB932E43"><enum>(H)</enum><text>the potential
effect of the appointment of a receiver by the Secretary on the financial
system, financial markets, and banks and other financial companies; and</text>
</subparagraph><subparagraph id="H76361D2FF25E4C2BA68090E092D3CFB3"><enum>(I)</enum><text>whether resolution
of the covered financial company under other applicable insolvency law would
cause banks or other financial companies to experience severe liquidity
distress.</text>
</subparagraph></paragraph><paragraph id="H0AA4DD46B09A40B6B8EEAFEC32F80C81"><enum>(3)</enum><header>Reports to
Congress and the public</header>
<subparagraph id="H355F3441E7A446A28A27D8B0F5D35058"><enum>(A)</enum><header>In
general</header><text>Not later than 60 days after the date of appointment of
the Corporation as receiver for a covered financial company, the Corporation
shall file a report with the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives—</text>
<clause id="H107C30F45B4D4E2ABDC4B1558464B1F9"><enum>(i)</enum><text>setting forth
information on the financial condition of the covered financial company as of
the date of the appointment, including a description of its assets and
liabilities;</text>
</clause><clause id="H20A8126BDE6F4C848EFC31C816569A6C"><enum>(ii)</enum><text>describing the
plan of, and actions taken by, the Corporation to wind down the covered
financial company;</text>
</clause><clause id="H716E824CF1E14CEC9DCAC8109CF2856F"><enum>(iii)</enum><text>explaining each
instance in which the Corporation waived any applicable requirements of part
366 of title 12, Code of Federal Regulations (or any successor thereto) with
respect to conflicts of interest by any person in the private sector who was
retained to provide services to the Corporation in connection with such
receivership;</text>
</clause><clause id="H5DDCCA61A3344DACBB656DF740CC99CA"><enum>(iv)</enum><text>describing the
reasons for the provision of any funding to the receivership out of the
Fund;</text>
</clause><clause id="H57B199846A4F43AC80E2805B9086463A"><enum>(v)</enum><text>setting forth the
expected costs of the orderly liquidation of the covered financial
company;</text>
</clause><clause id="H4CB81BDDD27C4B9390246E67E0EB7DC8"><enum>(vi)</enum><text>setting forth the
identity of any claimant that is treated in a manner different from other
similarly situated claimants under subsection (b)(4), (d)(4), or (h)(5)(E), the
amount of any additional payment to such claimant under subsection (d)(4), and
the reason for any such action; and</text>
</clause><clause id="H8327A7DAAC894F98810FFD212760B968"><enum>(vii)</enum><text>which report the
Corporation shall publish on an online website maintained by the Corporation,
subject to maintaining appropriate confidentiality.</text>
</clause></subparagraph><subparagraph id="H6BF16FDF50794B12931BAB95BFC1946A"><enum>(B)</enum><header>Amendments</header><text>The
Corporation shall, on a timely basis, not less frequently than quarterly, amend
or revise and resubmit the reports prepared under this paragraph, as
necessary.</text>
</subparagraph><subparagraph id="H5D840FA1854A4C4FBEC374CB749498A9"><enum>(C)</enum><header>Congressional
testimony</header><text>The Corporation and the primary financial regulatory
agency, if any, of the financial company for which the Corporation was
appointed receiver under this title shall appear before Congress, if requested,
not later than 30 days after the date on which the Corporation first files the
reports required under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H7B030546A64A4AE3B8E5D60678147FFC"><enum>(4)</enum><header>Default or in
danger of default</header><text>For purposes of this title, a financial company
shall be considered to be in default or in danger of default if, as determined
in accordance with subsection (b)—</text>
<subparagraph id="H227FB5AA65F1401EA52134B6BED6EA3C"><enum>(A)</enum><text>a case has been,
or likely will promptly be, commenced with respect to the financial company
under the Bankruptcy Code;</text>
</subparagraph><subparagraph id="H3F87145DE0314EE8A0E374ACCC8C0055"><enum>(B)</enum><text>the financial
company 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
company to avoid such depletion;</text>
</subparagraph><subparagraph id="HC8374245DE1A4127B5EADF1568DDF4B4"><enum>(C)</enum><text>the assets of the
financial company are, or are likely to be, less than its obligations to
creditors and others; or</text>
</subparagraph><subparagraph id="HBA2DB4C080CF4B609D36B49B65E948A9"><enum>(D)</enum><text>the financial
company is, or is likely to be, unable to pay its obligations (other than those
subject to a bona fide dispute) in the normal course of business.</text>
</subparagraph></paragraph><paragraph id="H723BC57C576F4920A41C01F25D9C9B77"><enum>(5)</enum><header>GAO
review</header><text>The Comptroller General of the United States shall review
and report to Congress on any determination under subsection (b), that results
in the appointment of the Corporation as receiver, including—</text>
<subparagraph id="H24BD16F724F447298E9CDAF6E7F84377"><enum>(A)</enum><text>the basis for the
determination;</text>
</subparagraph><subparagraph id="H783D594E494B48809E06AA923D12C530"><enum>(B)</enum><text>the purpose for
which any action was taken pursuant thereto;</text>
</subparagraph><subparagraph id="H7FBB0028253B41F392BBB615743504A1"><enum>(C)</enum><text>the likely effect
of the determination and such action on the incentives and conduct of financial
companies and their creditors, counterparties, and shareholders; and</text>
</subparagraph><subparagraph id="HD4206B429D3C46A19F6354F1508C6BBF"><enum>(D)</enum><text>the likely
disruptive effect of the determination and such action on the reasonable
expectations of creditors, counterparties, and shareholders, taking into
account the impact any action under this title would have on financial
stability in the United States, including whether the rights of such parties
will be disrupted.</text>
</subparagraph></paragraph></subsection><subsection id="H64C74CEF95F24668AAC209E86820C708"><enum>(d)</enum><header>Corporation
policies and procedures</header><text>As soon as is practicable after the date
of enactment of this Act, the Corporation shall establish policies and
procedures that are acceptable to the Secretary governing the use of funds
available to the Corporation to carry out this title, including the terms and
conditions for the provision and use of funds under sections 204(d),
210(h)(2)(G)(iv), and 210(h)(9).</text>
</subsection><subsection id="H9EF220449D114C1AA7BF739462947477"><enum>(e)</enum><header>Treatment of
insurance companies and insurance company subsidiaries</header>
<paragraph id="H11937DED0D7D49709AD820F237EEA65A"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsection (b), if an insurance company
is a covered financial company or a subsidiary or affiliate of a covered
financial company, the liquidation or rehabilitation of such insurance company,
and any subsidiary or affiliate of such company that is not excepted under
paragraph (2), shall be conducted as provided under applicable State
law.</text>
</paragraph><paragraph id="HA19BF744306F4A5F9D418AD4E817D532"><enum>(2)</enum><header>Exception for
subsidiaries and affiliates</header><text>The requirement of paragraph (1)
shall not apply with respect to any subsidiary or affiliate of an insurance
company that is not itself an insurance company.</text>
</paragraph><paragraph id="H59BA4A640E774C66B7A6D47C0977877F"><enum>(3)</enum><header>Backup
authority</header><text>Notwithstanding paragraph (1), with respect to a
covered financial company described in paragraph (1), if, after the end of the
60-day period beginning on the date on which a determination is made under
section 202(a) with respect to such company, the appropriate regulatory agency
has not filed the appropriate judicial action in the appropriate State court to
place such company into orderly liquidation under the laws and requirements of
the State, the Corporation shall have the authority to stand in the place of
the appropriate regulatory agency and file the appropriate judicial action in
the appropriate State court to place such company into orderly liquidation
under the laws and requirements of the State.</text>
</paragraph></subsection></section><section id="HCA281EB682FC4019AB862F8E67BFDEA1"><enum>204.</enum><header>Orderly
liquidation of covered financial companies</header>
<subsection id="HBB9D9E2ABFB84243B361D5391050F363"><enum>(a)</enum><header>Purpose of
orderly liquidation authority</header><text>It is the purpose of this title to
provide the necessary authority to liquidate failing financial companies that
pose a significant risk to the financial stability of the United States in a
manner that mitigates such risk and minimizes moral hazard. The authority
provided in this title shall be exercised in the manner that best fulfills such
purpose, so that—</text>
<paragraph id="HFF4821B8BBBB4FF8ACBA7E33FC01C5CF"><enum>(1)</enum><text>creditors and
shareholders will bear the losses of the financial company;</text>
</paragraph><paragraph id="H4753FCC8585B4DFABDEC1CD95EED7AAC"><enum>(2)</enum><text>management
responsible for the condition of the financial company will not be retained;
and</text>
</paragraph><paragraph id="H62012EC52ACC45C7B81BC481D666D28C"><enum>(3)</enum><text>the Corporation
and other appropriate agencies will take all steps necessary and appropriate to
assure that all parties, including management, directors, and third parties,
having responsibility for the condition of the financial company bear losses
consistent with their responsibility, including actions for damages,
restitution, and recoupment of compensation and other gains not compatible with
such responsibility.</text>
</paragraph></subsection><subsection id="HCA127EACE344455CAE51C279CBCE9F62"><enum>(b)</enum><header>Corporation as
receiver</header><text>Upon the appointment of the Corporation under section
202, the Corporation shall act as the receiver for the covered financial
company, with all of the rights and obligations set forth in this title.</text>
</subsection><subsection id="HF4754AE3844D4972835EF2C975AC62C8"><enum>(c)</enum><header>Consultation</header><text>The
Corporation, as receiver—</text>
<paragraph id="H146DAC60001A4AF7B6F84F21F32DADD9"><enum>(1)</enum><text>shall consult with
the primary financial regulatory agency or agencies of the covered financial
company and its covered subsidiaries for purposes of ensuring an orderly
liquidation of the covered financial company;</text>
</paragraph><paragraph id="H1DE79EEECE4F44C189804123EA2357FD"><enum>(2)</enum><text>may consult with,
or under subsection (a)(1)(B)(v) or (a)(1)(L) of section 210, acquire the
services of, any outside experts, as appropriate to inform and aid the
Corporation in the orderly liquidation process;</text>
</paragraph><paragraph id="H4F6A839E74564BDBA9DF86CF000CCF54"><enum>(3)</enum><text>shall consult with
the primary financial regulatory agency or agencies of any subsidiaries of the
covered financial company that are not covered subsidiaries, and coordinate
with such regulators regarding the treatment of such solvent subsidiaries and
the separate resolution of any such insolvent subsidiaries under other
governmental authority, as appropriate; and</text>
</paragraph><paragraph id="H0F30632494884BF98E70876B2B091824"><enum>(4)</enum><text>shall consult with
the Commission and the Securities Investor Protection Corporation in the case
of any covered financial company for which the Corporation has been appointed
as receiver that is a broker or dealer registered with the Commission under
section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) and is
a member of the Securities Investor Protection Corporation, for the purpose of
determining whether to transfer to a bridge financial company organized by the
Corporation as receiver, without consent of any customer, customer accounts of
the covered financial company.</text>
</paragraph></subsection><subsection id="H78B43596A0F14B88AF0C697608423BC9"><enum>(d)</enum><header>Funding for
orderly liquidation</header><text>Upon its appointment as receiver for a
covered financial company, and thereafter as the Corporation may, in its
discretion, determine to be necessary or appropriate, the Corporation may make
available to the receivership, subject to the conditions set forth in section
206 and subject to the plan described in section 210(n)(9), funds for the
orderly liquidation of the covered financial company. All funds provided by the
Corporation under this subsection shall have a priority of claims under
subparagraph (A) or (B) of section 210(b)(1), as applicable, including funds
used for—</text>
<paragraph id="HEC4B23B73E4546D99F97381B7E8404DE"><enum>(1)</enum><text>making loans to,
or purchasing any debt obligation of, the covered financial company or any
covered subsidiary;</text>
</paragraph><paragraph id="HA10937EADA884980A41DF1945B3E2810"><enum>(2)</enum><text>purchasing or
guaranteeing against loss the assets of the covered financial company or any
covered subsidiary, directly or through an entity established by the
Corporation for such purpose;</text>
</paragraph><paragraph id="H366954CD75D74DFEAAD04DB50A622265"><enum>(3)</enum><text>assuming or
guaranteeing the obligations of the covered financial company or any covered
subsidiary to 1 or more third parties;</text>
</paragraph><paragraph id="HC001C19F4F2E4CDC9CC2EDCA57DA2BE2"><enum>(4)</enum><text>taking a lien on
any or all assets of the covered financial company or any covered subsidiary,
including a first priority lien on all unencumbered assets of the covered
financial company or any covered subsidiary to secure repayment of any
transactions conducted under this subsection;</text>
</paragraph><paragraph id="HC2F823E6FE2042B0AED4135C712705D9"><enum>(5)</enum><text>selling or
transferring all, or any part, of such acquired assets, liabilities, or
obligations of the covered financial company or any covered subsidiary;
and</text>
</paragraph><paragraph id="H48B45DBC321E438A88063551ADE53CD1"><enum>(6)</enum><text>making payments
pursuant to subsections (b)(4), (d)(4), and (h)(5)(E) of section 210.</text>
</paragraph></subsection></section><section id="H6B4843779027495F8448FE06F2824D54"><enum>205.</enum><header>Orderly
liquidation of covered brokers and dealers</header>
<subsection id="H5AF252B823E2406094CF484F918BDA83"><enum>(a)</enum><header>Appointment of
SIPC as trustee</header>
<paragraph id="HED7DD560DD1E46D3B353553BFD8F0977"><enum>(1)</enum><header>Appointment</header><text>Upon
the appointment of the Corporation as receiver for any covered broker or
dealer, the Corporation shall appoint, without any need for court approval, the
Securities Investor Protection Corporation to act as trustee for the
liquidation under the Securities Investor Protection Act of 1970 (15 U.S.C.
78aaa et seq.) of the covered broker or dealer.</text>
</paragraph><paragraph id="HF9A06D049DC148989AEA3C41518B78DF"><enum>(2)</enum><header>Actions by
SIPC</header>
<subparagraph id="H5A66F28009E94425BFB2678857171FA8"><enum>(A)</enum><header>Filing</header><text>Upon
appointment of SIPC under paragraph (1), SIPC shall promptly file with any
Federal district court of competent jurisdiction specified in section 21 or 27
of the Securities Exchange Act of 1934 (15 U.S.C. 78u, 78aa), an application
for a protective decree under the Securities Investor Protection Act of 1970
(15 U.S.C. 78aaa et seq.) as to the covered broker or dealer. The Federal
district court shall accept and approve the filing, including outside of normal
business hours, and shall immediately issue the protective decree as to the
covered broker or dealer.</text>
</subparagraph><subparagraph id="HA3ED33FA9BA240BAB47FAD86742F9B95"><enum>(B)</enum><header>Administration
by SIPC</header><text>Following entry of the protective decree, and except as
otherwise provided in this section, the determination of claims and the
liquidation of assets retained in the receivership of the covered broker or
dealer and not transferred to the bridge financial company shall be
administered under the Securities Investor Protection Act of 1970 (15 U.S.C.
78aaa et seq.) by SIPC, as trustee for the covered broker or dealer.</text>
</subparagraph><subparagraph id="H5A100B1DE01348078676CC682A3B7332"><enum>(C)</enum><header>Definition of
filing date</header><text>For purposes of the liquidation proceeding, the term
<term>filing date</term> means the date on which the Corporation is appointed
as receiver of the covered broker or dealer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H95D2BC81C44A4ED189EE9A86B8CF4065"><enum>(D)</enum><header>Determination of
claims</header><text>As trustee for the covered broker or dealer, SIPC shall
determine and satisfy, consistent with this title and with the Securities
Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), all claims against
the covered broker or dealer arising on or before the filing date.</text>
</subparagraph></paragraph></subsection><subsection id="H3028FBBC7D0E476FBC75F24F9398205E"><enum>(b)</enum><header>Powers and
duties of SIPC</header>
<paragraph id="HE3A3A723F5BC43BE87BAF921F3D0BFC3"><enum>(1)</enum><header>In
general</header><text>Except as provided in this section, upon its appointment
as trustee for the liquidation of a covered broker or dealer, SIPC shall have
all of the powers and duties provided by the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa et seq.), including, without limitation, all rights of
action against third parties, and shall conduct such liquidation in accordance
with the terms of the Securities Investor Protection Act of 1970 (15 U.S.C.
78aaa et seq.), except that SIPC shall have no powers or duties with respect to
assets and liabilities transferred by the Corporation from the covered broker
or dealer to any bridge financial company established in accordance with this
title.</text>
</paragraph><paragraph id="H505475BE953540E78A31EAA14C2A4CA6"><enum>(2)</enum><header>Limitation of
powers</header><text>The exercise by SIPC of powers and functions as trustee
under subsection (a) shall not impair or impede the exercise of the powers and
duties of the Corporation with regard to—</text>
<subparagraph id="H9D58247662FE4DC68F4D275AAE3605E8"><enum>(A)</enum><text>any action, except
as otherwise provided in this title—</text>
<clause id="H18CF3EB213894BF486B68BBC0D8C1FD2"><enum>(i)</enum><text>to
make funds available under section 204(d);</text>
</clause><clause id="H16D7145A1D4D49D18A37C5E119C3E3D1"><enum>(ii)</enum><text>to
organize, establish, operate, or terminate any bridge financial company;</text>
</clause><clause id="H7CDF824E9ACB41529091A87521464EB9"><enum>(iii)</enum><text>to
transfer assets and liabilities;</text>
</clause><clause id="H71AD3F1030DA4F419FC051BB05DB7BF4"><enum>(iv)</enum><text>to
enforce or repudiate contracts; or</text>
</clause><clause id="H3BD7EAA8EE7449839D0B5600735B5279"><enum>(v)</enum><text>to
take any other action relating to such bridge financial company under section
210; or</text>
</clause></subparagraph><subparagraph id="HEA5EA9E9ECB74413A1D8B284CE46103E"><enum>(B)</enum><text>determining claims
under subsection (e).</text>
</subparagraph></paragraph><paragraph id="HF2E96ADBB6014D48AD50E2F6E8679101"><enum>(3)</enum><header>Protective
decree</header><text>SIPC and the Corporation, in consultation with the
Commission, shall jointly determine the terms of the protective decree to be
filed by SIPC with any court of competent jurisdiction under section 21 or 27
of the Securities Exchange Act of 1934 (15 U.S.C. 78u, 78aa), as required by
subsection (a).</text>
</paragraph><paragraph id="HE4EDB51CCE1B4964B46675A80FC813FC"><enum>(4)</enum><header>Qualified
financial contracts</header><text>Notwithstanding any provision of the
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) to the
contrary (including section 5(b)(2)(C) of that Act (15 U.S.C. 78eee(b)(2)(C))),
the rights and obligations of any party to a qualified financial contract (as
that term is defined in section 210(c)(8)) to which a covered broker or dealer
for which the Corporation has been appointed receiver is a party shall be
governed exclusively by section 210, including the limitations and restrictions
contained in section 210(c)(10)(B).</text>
</paragraph></subsection><subsection id="HA945D975318C497C943F49FBFA043F9E"><enum>(c)</enum><header>Limitation on
court action</header><text>Except as otherwise provided in this title, no court
may take any action, including any action pursuant to the Securities Investor
Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or the Bankruptcy Code, to
restrain or affect the exercise of powers or functions of the Corporation as
receiver for a covered broker or dealer and any claims against the Corporation
as such receiver shall be determined in accordance with subsection (e) and such
claims shall be limited to money damages.</text>
</subsection><subsection id="H10F73D9E23484226A8CB74AC355921D6"><enum>(d)</enum><header>Actions by
corporation as receiver</header>
<paragraph id="H86032D5D18D745C398405033507CFC60"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this title, no
action taken by the Corporation as receiver with respect to a covered broker or
dealer shall—</text>
<subparagraph id="H43313D19D9BA4B8093796A47FF800E9E"><enum>(A)</enum><text>adversely affect
the rights of a customer to customer property or customer name
securities;</text>
</subparagraph><subparagraph id="H9448B69993AC4A968F66E4C645971310"><enum>(B)</enum><text>diminish the
amount or timely payment of net equity claims of customers; or</text>
</subparagraph><subparagraph id="H986C11E5AEA3454D8355A1EB65D2B290"><enum>(C)</enum><text>otherwise impair
the recoveries provided to a customer under the Securities Investor Protection
Act of 1970 (15 U.S.C. 78aaa et seq.).</text>
</subparagraph></paragraph><paragraph id="H9C73E4A013F24BFBA7340B1D3458E3F4"><enum>(2)</enum><header>Net
proceeds</header><text>The net proceeds from any transfer, sale, or disposition
of assets of the covered broker or dealer, or proceeds thereof by the
Corporation as receiver for the covered broker or dealer shall be for the
benefit of the estate of the covered broker or dealer, as provided in this
title.</text>
</paragraph></subsection><subsection id="H2E10C8C8D87F4124ACC07CEE8F7C30EF"><enum>(e)</enum><header>Claims against
the corporation as receiver</header><text>Any claim against the Corporation as
receiver for a covered broker or dealer for assets transferred to a bridge
financial company established with respect to such covered broker or
dealer—</text>
<paragraph id="H8A22CB6E471543378F2EA511D199DD92"><enum>(1)</enum><text>shall be
determined in accordance with section 210(a)(2); and</text>
</paragraph><paragraph id="HF0D5368FA2C84D98A25CDB6113621BB8"><enum>(2)</enum><text>may be reviewed by
the appropriate district or territorial court of the United States in
accordance with section 210(a)(5).</text>
</paragraph></subsection><subsection id="H19B2EAA28F4A4B368A09A106C2359BCB"><enum>(f)</enum><header>Satisfaction of
customer claims</header>
<paragraph id="HF9AC0116C5D748B28AF6CA2DDB0CFAFA"><enum>(1)</enum><header>Obligations to
customers</header><text>Notwithstanding any other provision of this title, all
obligations of a covered broker or dealer or of any bridge financial company
established with respect to such covered broker or dealer to a customer
relating to, or net equity claims based upon, customer property or customer
name securities shall be promptly discharged by SIPC, the Corporation, or the
bridge financial company, as applicable, by the delivery of securities or the
making of payments to or for the account of such customer, in a manner and in
an amount at least as beneficial to the customer as would have been the case
had the actual proceeds realized from the liquidation of the covered broker or
dealer under this title been distributed in a proceeding under the Securities
Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) without the
appointment of the Corporation as receiver and without any transfer of assets
or liabilities to a bridge financial company, and with a filing date as of the
date on which the Corporation is appointed as receiver.</text>
</paragraph><paragraph id="H67EE86EA2E5C46698CF1B426C9253A77"><enum>(2)</enum><header>Satisfaction of
claims by SIPC</header><text>SIPC, as trustee for a covered broker or dealer,
shall satisfy customer claims in the manner and amount provided under the
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), as if the
appointment of the Corporation as receiver had not occurred, and with a filing
date as of the date on which the Corporation is appointed as receiver. The
Corporation shall satisfy customer claims, to the extent that a customer would
have received more securities or cash with respect to the allocation of
customer property had the covered financial company been subject to a
proceeding under the Securities Investor Protection Act (15 U.S.C. 78aaa et
seq.) without the appointment of the Corporation as receiver, and with a filing
date as of the date on which the Corporation is appointed as receiver.</text>
</paragraph></subsection><subsection commented="no" id="HEA80FE88A91E4AC4AA69308CBDBC50EA"><enum>(g)</enum><header>Priorities</header>
<paragraph id="H7A83C7F935174FEBB7BDB36401EBECDA"><enum>(1)</enum><header>Customer
property</header><text>As trustee for a covered broker or dealer, SIPC shall
allocate customer property and deliver customer name securities in accordance
with section 8(c) of the Securities Investor Protection Act of 1970 (15 U.S.C.
78fff–2(c)).</text>
</paragraph><paragraph id="HD8DE6EA2AADB492FA34A0E163B2B715E"><enum>(2)</enum><header>Other
claims</header><text>All claims other than those described in paragraph (1)
(including any unpaid claim by a customer for the allowed net equity claim of
such customer from customer property) shall be paid in accordance with the
priorities in section 210(b).</text>
</paragraph></subsection><subsection id="H7EC5C1B4845648B786CD30B092C9E263"><enum>(h)</enum><header>Rulemaking</header><text>The
Commission and the Corporation, after consultation with SIPC, shall jointly
issue rules to implement this section.</text>
</subsection></section><section id="H2B17169DCEE541B3ADF0E630C259A18E"><enum>206.</enum><header>Mandatory terms
and conditions for all orderly liquidation actions</header><text display-inline="no-display-inline">In
taking action under this title, the Corporation shall—</text>
<paragraph id="H7EEFD55800A84FCC8CA06E7565E75B74"><enum>(1)</enum><text>determine that
such action is necessary for purposes of the financial stability of the United
States, and not for the purpose of preserving the covered financial
company;</text>
</paragraph><paragraph id="HD78752E3933C4A2D9DF8824B7934FC11"><enum>(2)</enum><text>ensure that the
shareholders of a covered financial company do not receive payment until after
all other claims and the Fund are fully paid;</text>
</paragraph><paragraph id="HC10697F511A8408EB374A7D522822868"><enum>(3)</enum><text>ensure that
unsecured creditors bear losses in accordance with the priority of claim
provisions in section 210;</text>
</paragraph><paragraph id="H5C2DE8A0ED8B416B90C351E8189078A4"><enum>(4)</enum><text>ensure that
management responsible for the failed condition of the covered financial
company is removed (if such management has not already been removed at the time
at which the Corporation is appointed receiver);</text>
</paragraph><paragraph id="H5ADA8AC87E764D66A3B466BCF1E154E3"><enum>(5)</enum><text>ensure that the
members of the board of directors (or body performing similar functions)
responsible for the failed condition of the covered financial company are
removed, if such members have not already been removed at the time the
Corporation is appointed as receiver; and</text>
</paragraph><paragraph id="H1F86EF82F5E2458E906B1492BE40ACBE"><enum>(6)</enum><text>not take an equity
interest in or become a shareholder of any covered financial company or any
covered subsidiary.</text>
</paragraph></section><section id="H9C14227B0F7D4CF3A91E814A122194F9"><enum>207.</enum><header>Directors not
liable for acquiescing in appointment of receiver</header><text display-inline="no-display-inline">The members of the board of directors (or
body performing similar functions) of a covered financial company shall not be
liable to the shareholders or creditors thereof for acquiescing in or
consenting in good faith to the appointment of the Corporation as receiver for
the covered financial company under section 203.</text>
</section><section id="HEC365ED3106349E5A125F9121F9348F4"><enum>208.</enum><header>Dismissal and
exclusion of other actions</header>
<subsection id="H93789DACC38740C1BAAF8CEECA42858E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Effective as of the
date of the appointment of the Corporation as receiver for the covered
financial company under section 202 or the appointment of SIPC as trustee for a
covered broker or dealer under section 205, as applicable, any case or
proceeding commenced with respect to the covered financial company under the
Bankruptcy Code or the Securities Investor Protection Act of 1970 (15 U.S.C.
78aaa et seq.) shall be dismissed, upon notice to the bankruptcy court (with
respect to a case commenced under the Bankruptcy Code), and upon notice to SIPC
(with respect to a covered broker or dealer) and no such case or proceeding may
be commenced with respect to a covered financial company at any time while the
orderly liquidation is pending.</text>
</subsection><subsection id="HEB9CE7535E264E48BFA0D9A27FADEEEC"><enum>(b)</enum><header>Revesting of
assets</header><text display-inline="yes-display-inline">Effective as of the
date of appointment of the Corporation as receiver, the assets of a covered
financial company shall, to the extent they have vested in any entity other
than the covered financial company as a result of any case or proceeding
commenced with respect to the covered financial company under the Bankruptcy
Code, the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.),
or any similar provision of State liquidation or insolvency law applicable to
the covered financial company, revest in the covered financial company.</text>
</subsection><subsection id="H87ECD98A110F4BA68CC46EDE7C81110A"><enum>(c)</enum><header>Limitation</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b),
any order entered or other relief granted by a bankruptcy court prior to the
date of appointment of the Corporation as receiver shall continue with the same
validity as if an orderly liquidation had not been commenced.</text>
</subsection></section><section id="H876097C76CFA406D96B1F10111AA9D92"><enum>209.</enum><header>Rulemaking;
non-conflicting law</header><text display-inline="no-display-inline">The
Corporation shall, in consultation with the Council, prescribe such rules or
regulations as the Corporation considers necessary or appropriate to implement
this title, including rules and regulations with respect to the rights,
interests, and priorities of creditors, counterparties, security entitlement
holders, or other persons with respect to any covered financial company or any
assets or other property of or held by such covered financial company, and
address the potential for conflicts of interest between or among individual
receiverships established under this title or under the Federal Deposit
Insurance Act. To the extent possible, the Corporation shall seek to harmonize
applicable rules and regulations promulgated under this section with the
insolvency laws that would otherwise apply to a covered financial
company.</text>
</section><section id="H3F277E3838604DF797E82E9CB36E3A79"><enum>210.</enum><header>Powers and
duties of the Corporation</header>
<subsection id="HD5E1A9AB49444B73B50D21600A6F4D74"><enum>(a)</enum><header>Powers and
authorities</header>
<paragraph id="H164F317D6EC04E779EACDFFA7062FD41"><enum>(1)</enum><header>General
powers</header>
<subparagraph id="HACA3C212D98C49EB808A1D27CB0BBEFE"><enum>(A)</enum><header>Successor to
covered financial company</header><text>The Corporation shall, upon appointment
as receiver for a covered financial company under this title, succeed
to—</text>
<clause id="HC3C2DD053ACC49D789F0061AA68484E6"><enum>(i)</enum><text>all
rights, titles, powers, and privileges of the covered financial company and its
assets, and of any stockholder, member, officer, or director of such company;
and</text>
</clause><clause id="H646D291785634BCABDBCFBBAF088EF38"><enum>(ii)</enum><text>title to the
books, records, and assets of any previous receiver or other legal custodian of
such covered financial company.</text>
</clause></subparagraph><subparagraph id="H47B5FBB857D54AA79FAFACE0D1D26550"><enum>(B)</enum><header>Operation of the
covered financial company during the period of orderly
liquidation</header><text>The Corporation, as receiver for a covered financial
company, may—</text>
<clause id="H7D8E84F5FBC440219334161AF9B4295D"><enum>(i)</enum><text>take
over the assets of and operate the covered financial company with all of the
powers of the members or shareholders, the directors, and the officers of the
covered financial company, and conduct all business of the covered financial
company;</text>
</clause><clause id="H6BF995DDDC564738B603F8D0713D4940"><enum>(ii)</enum><text>collect all
obligations and money owed to the covered financial company;</text>
</clause><clause id="HB5A711E396BA4A3BB06F3147F2FE1A51"><enum>(iii)</enum><text>perform all
functions of the covered financial company, in the name of the covered
financial company;</text>
</clause><clause id="HA04F4D4037F04EE88AA0A5ACC2344F1D"><enum>(iv)</enum><text>manage the assets
and property of the covered financial company, consistent with maximization of
the value of the assets in the context of the orderly liquidation; and</text>
</clause><clause id="HDC2E0DFC0E0C42E6B2F7DD00EF96FBA7"><enum>(v)</enum><text>provide by
contract for assistance in fulfilling any function, activity, action, or duty
of the Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="H506D0AEC99A6483E9B6682BFF89AEEFB"><enum>(C)</enum><header>Functions of
covered financial company officers, directors, and
shareholders</header><text>The Corporation may provide for the exercise of any
function by any member or stockholder, director, or officer of any covered
financial company for which the Corporation has been appointed as receiver
under this title.</text>
</subparagraph><subparagraph id="H320BA8A48E804363BBC0FBD172890E3C"><enum>(D)</enum><header>Additional
powers as receiver</header><text>The Corporation shall, as receiver for a
covered financial company, and subject to all legally enforceable and perfected
security interests and all legally enforceable security entitlements in respect
of assets held by the covered financial company, liquidate, and wind-up the
affairs of a covered financial company, including taking steps to realize upon
the assets of the covered financial company, in such manner as the Corporation
deems appropriate, including through the sale of assets, the transfer of assets
to a bridge financial company established under subsection (h), or the exercise
of any other rights or privileges granted to the receiver under this
section.</text>
</subparagraph><subparagraph id="H4BB4012008E84098BFEDBC5284316322"><enum>(E)</enum><header>Additional
powers with respect to failing subsidiaries of a covered financial
company</header>
<clause id="H7D4AA8BDD51A4747951FF7AAF4824F20"><enum>(i)</enum><header>In
general</header><text>In any case in which a receiver is appointed for a
covered financial company under section 202, the Corporation may appoint itself
as receiver of any covered subsidiary of the covered financial company that is
organized under Federal law or the laws of any State, if the Corporation and
the Secretary jointly determine that—</text>
<subclause id="H93674AF721694CDD87A5BD2A38085730"><enum>(I)</enum><text>the covered
subsidiary is in default or in danger of default;</text>
</subclause><subclause id="H3C897DCB0C744948BE74805ADB183BF9"><enum>(II)</enum><text>such action would
avoid or mitigate serious adverse effects on the financial stability or
economic conditions of the United States; and</text>
</subclause><subclause id="HAF5683AE855049048AC723795E3D2097"><enum>(III)</enum><text>such action
would facilitate the orderly liquidation of the covered financial
company.</text>
</subclause></clause><clause id="H9393F270F3884D0FA2FA862D0A2A3794"><enum>(ii)</enum><header>Treatment as
covered financial company</header><text>If the Corporation is appointed as
receiver of a covered subsidiary of a covered financial company under clause
(i), the covered subsidiary shall thereafter be considered a covered financial
company under this title, and the Corporation shall thereafter have all the
powers and rights with respect to that covered subsidiary as it has with
respect to a covered financial company under this title.</text>
</clause></subparagraph><subparagraph id="H18A1230986E347D49B7C2932E3B366A1"><enum>(F)</enum><header>Organization of
bridge companies</header><text>The Corporation, as receiver for a covered
financial company, may organize a bridge financial company under subsection
(h).</text>
</subparagraph><subparagraph id="HC6F7A1A5371B4D9D8980E71C7913538C"><enum>(G)</enum><header>Merger; transfer
of assets and liabilities</header>
<clause id="HCD9F1ABB31A54C70BFDBE80E68D507CF"><enum>(i)</enum><header>In
general</header><text>Subject to clauses (ii) and (iii), the Corporation, as
receiver for a covered financial company, may—</text>
<subclause id="H93F6DFC095D04FBAB82C6FC26C405B44"><enum>(I)</enum><text>merge the covered
financial company with another company; or</text>
</subclause><subclause id="HA6CBD6802F3B45BE90B53058B4899BA5"><enum>(II)</enum><text>transfer any
asset or liability of the covered financial company (including any assets and
liabilities held by the covered financial company for security entitlement
holders, any customer property, or any assets and liabilities associated with
any trust or custody business) without obtaining any approval, assignment, or
consent with respect to such transfer.</text>
</subclause></clause><clause id="H5310173017404E2FAB1919BC038E21E6"><enum>(ii)</enum><header>Federal agency
approval; antitrust review</header><text>With respect to a transaction
described in clause (i)(I) that requires approval by a Federal agency—</text>
<subclause id="HF7B3A415FCC6427E9FB5C2F8CB0D1DDB"><enum>(I)</enum><text>the transaction
may not be consummated before the 5th calendar day after the date of approval
by the Federal agency responsible for such approval;</text>
</subclause><subclause id="H814192C34E3442E7B1A25302F8310D24"><enum>(II)</enum><text>if, in connection
with any such approval, a report on competitive factors is required, the
Federal agency responsible for such approval shall promptly notify the Attorney
General of the United States of the proposed transaction, and the Attorney
General shall provide the required report not later than 10 days after the date
of the request; and</text>
</subclause><subclause id="H1E9E2F74D9AE4CC1B30116FE70D8F387"><enum>(III)</enum><text>if notification
under section 7A of the Clayton Act is required with respect to such
transaction, then the required waiting period shall end on the 15th day after
the date on which the Attorney General and the Federal Trade Commission receive
such notification, unless the waiting period is terminated earlier under
subsection (b)(2) of such section 7A, or is extended pursuant to subsection
(e)(2) of such section 7A.</text>
</subclause></clause><clause id="HF7350EF05C5544789319FF8FF2D7825A"><enum>(iii)</enum><header>Setoff</header><text>Subject
to the other provisions of this title, any transferee of assets from a
receiver, including a bridge financial company, shall be subject to such claims
or rights as would prevail over the rights of such transferee in such assets
under applicable noninsolvency law.</text>
</clause></subparagraph><subparagraph id="HBB173B3B6D5D484D85682CBE77C82A4F"><enum>(H)</enum><header>Payment of valid
obligations</header><text>The Corporation, as receiver for a covered financial
company, shall, to the extent that funds are available, pay all valid
obligations of the covered financial company that are due and payable at the
time of the appointment of the Corporation as receiver, in accordance with the
prescriptions and limitations of this title.</text>
</subparagraph><subparagraph id="H001ED3D3BE654246BF9BADC43E9578CE"><enum>(I)</enum><header>Applicable
noninsolvency law</header><text>Except as may otherwise be provided in this
title, the applicable noninsolvency law shall be determined by the
noninsolvency choice of law rules otherwise applicable to the claims, rights,
titles, persons, or entities at issue.</text>
</subparagraph><subparagraph id="HF194D9F95CA541F6AF9470A1B61BDDF4"><enum>(J)</enum><header>Subpoena
authority</header>
<clause id="H85622A9C1A5A495D9196A7364ADAE154"><enum>(i)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, may, for purposes of carrying out any power, authority, or duty with
respect to the covered financial company (including determining any claim
against the covered financial company and determining and realizing upon any
asset of any person in the course of collecting money due the covered financial
company), exercise any power established under section 8(n) of the Federal
Deposit Insurance Act, as if the Corporation were the appropriate Federal
banking agency for the covered financial company, and the covered financial
company were an insured depository institution.</text>
</clause><clause id="H00D46260934240659129FD7ECEC12714"><enum>(ii)</enum><header>Rule of
construction</header><text>This subparagraph may not be construed as limiting
any rights that the Corporation, in any capacity, might otherwise have to
exercise any powers described in clause (i) or under any other provision of
law.</text>
</clause></subparagraph><subparagraph id="H16B944F513F0431F9734DB0E9F4D028B"><enum>(K)</enum><header>Incidental
powers</header><text>The Corporation, as receiver for a covered financial
company, may exercise all powers and authorities specifically granted to
receivers under this title, and such incidental powers as shall be necessary to
carry out such powers under this title.</text>
</subparagraph><subparagraph id="H433FF0EAD1C24FA3B8B8B93A6DB0B073"><enum>(L)</enum><header>Utilization of
private sector</header><text>In carrying out its responsibilities in the
management and disposition of assets from the covered financial company, the
Corporation, as receiver for a covered financial company, may utilize the
services of private persons, including real estate and loan portfolio asset
management, property management, auction marketing, legal, and brokerage
services, if such services are available in the private sector, and the
Corporation determines that utilization of such services is practicable,
efficient, and cost effective.</text>
</subparagraph><subparagraph id="HC6A91CC69ED44935AFDB31BEEE9EDAFA"><enum>(M)</enum><header>Shareholders and
creditors of covered financial company</header><text>Notwithstanding any other
provision of law, the Corporation, as receiver for a covered financial company,
shall succeed by operation of law to the rights, titles, powers, and privileges
described in subparagraph (A), and shall terminate all rights and claims that
the stockholders and creditors of the covered financial company may have
against the assets of the covered financial company or the Corporation arising
out of their status as stockholders or creditors, except for their right to
payment, resolution, or other satisfaction of their claims, as permitted under
this section. The Corporation shall ensure that shareholders and unsecured
creditors bear losses, consistent with the priority of claims provisions under
this section.</text>
</subparagraph><subparagraph id="H0AC954FCA7C84E378BF8AB72DBEF0AD7"><enum>(N)</enum><header>Coordination
with foreign financial authorities</header><text>The Corporation, as receiver
for a covered financial company, shall coordinate, to the maximum extent
possible, with the appropriate foreign financial authorities regarding the
orderly liquidation of any covered financial company that has assets or
operations in a country other than the United States.</text>
</subparagraph><subparagraph id="HA0D9B0F11BA34931A5106A93B1B246CA"><enum>(O)</enum><header>Restriction on
transfers</header>
<clause id="HE9F761F5F6874C7EA6359E2792129E93"><enum>(i)</enum><header>Selection of
accounts for transfer</header><text>If the Corporation establishes one or more
bridge financial companies with respect to a covered broker or dealer, the
Corporation shall transfer to one of such bridge financial companies, all
customer accounts of the covered broker or dealer, and all associated customer
name securities and customer property, unless the Corporation, after consulting
with the Commission and SIPC, determines that—</text>
<subclause id="HF19B780C08024390AF93CD1DE69F4AA0"><enum>(I)</enum><text>the customer
accounts, customer name securities, and customer property are likely to be
promptly transferred to another broker or dealer that is registered with the
Commission under section 15(b) of the Securities Exchange Act of 1934 (15
U.S.C. 73o(b)) and is a member of SIPC; or</text>
</subclause><subclause id="HCD4613C2032E477EB74682FF321A1507"><enum>(II)</enum><text>the transfer of
the accounts to a bridge financial company would materially interfere with the
ability of the Corporation to avoid or mitigate serious adverse effects on
financial stability or economic conditions in the United States.</text>
</subclause></clause><clause id="H8105AC0D4ED94BF4B4DE9D81A9A9A153"><enum>(ii)</enum><header>Transfer of
property</header><text>SIPC, as trustee for the liquidation of the covered
broker or dealer, and the Commission shall provide any and all reasonable
assistance necessary to complete such transfers by the Corporation.</text>
</clause><clause id="HDA51A8F2B1A64A8583525E263071DD1C"><enum>(iii)</enum><header>Customer
consent and court approval not required</header><text>Neither customer consent
nor court approval shall be required to transfer any customer accounts or
associated customer name securities or customer property to a bridge financial
company in accordance with this section.</text>
</clause><clause id="HFE0F264F1C014E56A506F0BAC208C6B1"><enum>(iv)</enum><header>Notification of
sipc and sharing of information</header><text>The Corporation shall identify to
SIPC the customer accounts and associated customer name securities and customer
property transferred to the bridge financial company. The Corporation and SIPC
shall cooperate in the sharing of any information necessary for each entity to
discharge its obligations under this title and under the Securities Investor
Protection Act of 1970 (15 U.S.C. 78aaa et seq.) including by providing access
to the books and records of the covered financial company and any bridge
financial company established in accordance with this title.</text>
</clause></subparagraph></paragraph><paragraph id="H4E74C238B03C40FC9F4623EB1A8A1898"><enum>(2)</enum><header>Determination of
claims</header>
<subparagraph id="HC799DEA740D24BF59CB1D49B6553498C"><enum>(A)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, shall report on claims, as set forth in section 203(c)(3). Subject to
paragraph (4) of this subsection, the Corporation, as receiver for a covered
financial company, shall determine claims in accordance with the requirements
of this subsection and regulations prescribed under section 209.</text>
</subparagraph><subparagraph id="H89504C19F86D42C5B0984C1CE398FE9D"><enum>(B)</enum><header>Notice
requirements</header><text>The Corporation, as receiver for a covered financial
company, in any case involving the liquidation or winding up of the affairs of
a covered financial company, shall—</text>
<clause id="H825052ADF99E4B0195AD15D92B7E9E99"><enum>(i)</enum><text>promptly publish a
notice to the creditors of the covered financial company to present their
claims, together with proof, to the receiver by a date specified in the notice,
which shall be not earlier than 90 days after the date of publication of such
notice; and</text>
</clause><clause id="H083AC6145C274869B82EA93CF8EC8D13"><enum>(ii)</enum><text>republish such
notice 1 month and 2 months, respectively, after the date of publication under
clause (i).</text>
</clause></subparagraph><subparagraph id="H92A34AE7A44B4716A4BA48EB836B1500"><enum>(C)</enum><header>Mailing
required</header><text>The Corporation as receiver shall mail a notice similar
to the notice published under clause (i) or (ii) of subparagraph (B), at the
time of such publication, to any creditor shown on the books and records of the
covered financial company—</text>
<clause id="HBC4A0933B1CE462FB658DFD7AECA9733"><enum>(i)</enum><text>at
the last address of the creditor appearing in such books;</text>
</clause><clause id="H178FCC2D61104527B8D5378C8BCA18C0"><enum>(ii)</enum><text>in
any claim filed by the claimant; or</text>
</clause><clause id="H20BF11221D3149058B5303B38F36C7F0"><enum>(iii)</enum><text>upon discovery
of the name and address of a claimant not appearing on the books and records of
the covered financial company, not later than 30 days after the date of the
discovery of such name and address.</text>
</clause></subparagraph></paragraph><paragraph id="H726C9BBC202E408281383820CF8B35ED"><enum>(3)</enum><header>Procedures for
resolution of claims</header>
<subparagraph id="H1BF2C65C193C432CBF4A8EF59D4F13F7"><enum>(A)</enum><header>Decision
period</header>
<clause id="H4A79063478B04B04AF41F26E0B80CEFB"><enum>(i)</enum><header>In
general</header><text>Prior to the 180th day after the date on which a claim
against a covered financial company is filed with the Corporation as receiver,
or such later date as may be agreed as provided in clause (ii), the Corporation
shall notify the claimant whether it allows or disallows the claim, in
accordance with subparagraphs (B), (C), and (D).</text>
</clause><clause id="H4F3AD1E858EE4BBB88EC741836C4F09E"><enum>(ii)</enum><header>Extension of
time</header><text>By written agreement executed not later than 180 days after
the date on which a claim against a covered financial company is filed with the
Corporation, the period described in clause (i) may be extended by written
agreement between the claimant and the Corporation. Failure to notify the
claimant of any disallowance within the time period set forth in clause (i), as
it may be extended by agreement under this clause, shall be deemed to be a
disallowance of such claim, and the claimant may file or continue an action in
court, as provided in paragraph (4).</text>
</clause><clause id="H309B3E51D93A49168414D3ACDC6C2516"><enum>(iii)</enum><header>Mailing of
notice sufficient</header><text>The requirements of clause (i) shall be deemed
to be satisfied if the notice of any decision with respect to any claim is
mailed to the last address of the claimant which appears—</text>
<subclause id="H84F4C5A827B348459245B9D182DCF9B3"><enum>(I)</enum><text>on the books,
records, or both of the covered financial company;</text>
</subclause><subclause id="H5353682EC0244EC18215E78EAA6678DB"><enum>(II)</enum><text>in the claim
filed by the claimant; or</text>
</subclause><subclause id="HA24D23A7538244E7B78DA7644227AB85"><enum>(III)</enum><text>in documents
submitted in proof of the claim.</text>
</subclause></clause><clause id="HA8DA04F03F3044E4A3D9EA19797156ED"><enum>(iv)</enum><header>Contents of
notice of disallowance</header><text>If the Corporation as receiver disallows
any claim filed under clause (i), the notice to the claimant shall
contain—</text>
<subclause id="H7665BFCC48254EC6976868DF241E5899"><enum>(I)</enum><text>a
statement of each reason for the disallowance; and</text>
</subclause><subclause id="HAA7C4CE4807349B3AC80B6711B4ED7FB"><enum>(II)</enum><text>the procedures
required to file or continue an action in court, as provided in paragraph
(4).</text>
</subclause></clause></subparagraph><subparagraph id="H2213E8B58E1C4C1785F133D2525ABE8A"><enum>(B)</enum><header>Allowance of
proven claim</header><text>The receiver shall allow any claim received by the
receiver on or before the date specified in the notice under paragraph
(2)(B)(i), which is proved to the satisfaction of the receiver.</text>
</subparagraph><subparagraph id="HDC3AD266717148C6A3EEEBBB0C8CD2B1"><enum>(C)</enum><header>Disallowance of
claims filed after end of filing period</header>
<clause id="HE0C1391BAF944406B4E70EE32DC81FCB"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), claims filed after the
date specified in the notice published under paragraph (2)(B)(i) shall be
disallowed, and such disallowance shall be final.</text>
</clause><clause id="H710797D88A4A4C6DAF36A2768E86E476"><enum>(ii)</enum><header>Certain
exceptions</header><text>Clause (i) shall not apply with respect to any claim
filed by a claimant after the date specified in the notice published under
paragraph (2)(B)(i), and such claim may be considered by the receiver under
subparagraph (B), if—</text>
<subclause id="HCF22CB32C1664622B2DBF6DF471F78D3"><enum>(I)</enum><text>the claimant did
not receive notice of the appointment of the receiver in time to file such
claim before such date; and</text>
</subclause><subclause id="HA66350D8433B40ACAA989812B095B647"><enum>(II)</enum><text>such claim is
filed in time to permit payment of such claim.</text>
</subclause></clause></subparagraph><subparagraph id="H32C9BAD59BD34D01A8DDBD445C115552"><enum>(D)</enum><header>Authority to
disallow claims</header>
<clause id="H7EB428FAFBFC4712BF0C0D1AFE86BA35"><enum>(i)</enum><header>In
general</header><text>The Corporation may disallow any portion of any claim by
a creditor or claim of a security, preference, setoff, or priority which is not
proved to the satisfaction of the Corporation.</text>
</clause><clause id="HC4A73EEA57FF4C33BF70527D25EFED4E"><enum>(ii)</enum><header>Payments to
undersecured creditors</header><text>In the case of a claim against a covered
financial company that is secured by any property or other asset of such
covered financial company, the receiver—</text>
<subclause id="HFA6B14AA537A444F988217FC0B6A71D5"><enum>(I)</enum><text>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; and</text>
</subclause><subclause id="HECC025D12C47435AAC7FB1039F040BA9"><enum>(II)</enum><text>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
covered financial company.</text>
</subclause></clause><clause id="HCAAEF97AF5A7421DB6FFF03873EBDF4F"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="H191EA9358B704FFC8E2B6B620786DF10"><enum>(I)</enum><text>any extension of
credit from any Federal reserve bank, or the Corporation, to any covered
financial company; or</text>
</subclause><subclause id="H0F2A214E57D24A2CBB6F7240FF15D1B4"><enum>(II)</enum><text>subject to clause
(ii), any legally enforceable and perfected security interest in the assets of
the covered financial company securing any such extension of credit.</text>
</subclause></clause></subparagraph><subparagraph id="H348FF61A15254B07BF455B6D121121A4"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="HC6F6033EF6B742A9AB57F6F218F01442"><enum>(i)</enum><header>Statute of
limitations tolled</header><text>For purposes of any applicable statute of
limitations, the filing of a claim with the receiver shall constitute a
commencement of an action.</text>
</clause><clause id="H1424748B40B04BCDB1820C492EE284FC"><enum>(ii)</enum><header>No prejudice to
other actions</header><text>Subject to paragraph (8), 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 date of appointment of the receiver for the
covered financial company.</text>
</clause></subparagraph></paragraph><paragraph id="H55B14A1AB69440F3A21AB217B5FA5333"><enum>(4)</enum><header>Judicial
determination of claims</header>
<subparagraph id="HE2428FEEA98941FF8EFD61395D03FF9B"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), a claimant may file suit on
a claim (or continue an action commenced before the date of appointment of the
Corporation as receiver) in the district or territorial court of the United
States for the district within which the principal place of business of the
covered financial company is located (and such court shall have jurisdiction to
hear such claim).</text>
</subparagraph><subparagraph id="H5B002D9B788B4E5EB0CE7A719A88250C"><enum>(B)</enum><header>Timing</header><text>A
claim under subparagraph (A) may be filed before the end of the 60-day period
beginning on the earlier of—</text>
<clause id="H0CE508E138DD452DA09D39C2B9C26C4A"><enum>(i)</enum><text>the
end of the period described in paragraph (3)(A)(i) (or, if extended by
agreement of the Corporation and the claimant, the period described in
paragraph (3)(A)(ii)) with respect to any claim against a covered financial
company for which the Corporation is receiver; or</text>
</clause><clause id="H785B8A0D30B84993B6607BF6DBACE86B"><enum>(ii)</enum><text>the
date of any notice of disallowance of such claim pursuant to paragraph
(3)(A)(i).</text>
</clause></subparagraph><subparagraph id="HD78A09E6D4814C52A6FDC51CBD0F7F7B"><enum>(C)</enum><header>Statute of
limitations</header><text>If any claimant fails to file suit on such claim (or
to continue an action on such claim commenced before the date of appointment of
the Corporation as receiver) prior to the end of the 60-day period described in
subparagraph (B), 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.</text>
</subparagraph></paragraph><paragraph id="H8F48E59AEBA34CE48C89C3B054080BB3"><enum>(5)</enum><header>Expedited
determination of claims</header>
<subparagraph id="HD23A259D48FA4C0AAB819E4F6E3B52AA"><enum>(A)</enum><header>Procedure
required</header><text>The Corporation shall establish a procedure for
expedited relief outside of the claims process established under paragraph (3),
for any claimant that alleges—</text>
<clause id="H3D8438D8FD3046BB8AD9F6F4DF3F6C85"><enum>(i)</enum><text>having a legally
valid and enforceable or perfected security interest in property of a covered
financial company or control of any legally valid and enforceable security
entitlement in respect of any asset held by the covered financial company for
which the Corporation has been appointed receiver; and</text>
</clause><clause id="H63F8F75C71274715B4A1E2C0A4EA0580"><enum>(ii)</enum><text>that irreparable
injury will occur if the claims procedure established under paragraph (3) is
followed.</text>
</clause></subparagraph><subparagraph id="HCFAFB91C474A476EB90EC9FD988844C4"><enum>(B)</enum><header>Determination
period</header><text>Prior to the end of the 90-day period beginning on the
date on which a claim is filed in accordance with the procedures established
pursuant to subparagraph (A), the Corporation shall—</text>
<clause id="HB7BA3075C7BC4ABB907FDBB88D5A51B4"><enum>(i)</enum><text>determine—</text>
<subclause id="H9E5CEB78A6624AD0A7DE53387C96906B"><enum>(I)</enum><text>whether to allow
or disallow such claim, or any portion thereof; or</text>
</subclause><subclause id="HF972DF304366424EBF0E1F6521FDD1CB"><enum>(II)</enum><text>whether such
claim should be determined pursuant to the procedures established pursuant to
paragraph (3);</text>
</subclause></clause><clause id="H14656D177DE24A188FB52B742E37D824"><enum>(ii)</enum><text>notify the
claimant of the determination; and</text>
</clause><clause id="HB1F93A5373FE4F7ABC7299F9BD164B98"><enum>(iii)</enum><text>if
the claim is disallowed, provide a statement of each reason for the
disallowance and the procedure for obtaining a judicial determination.</text>
</clause></subparagraph><subparagraph id="H5789CB08A06F4F21B60934E4586BA85D"><enum>(C)</enum><header>Period for
filing or renewing suit</header><text>Any claimant who files a request for
expedited relief shall be permitted to file suit (or continue a suit filed
before the date of appointment of the Corporation as receiver seeking a
determination of the rights of the claimant with respect to such security
interest (or such security entitlement) after the earlier of—</text>
<clause id="HD62A1A25A46F40608155D341F4EC1A44"><enum>(i)</enum><text>the
end of the 90-day period beginning on the date of the filing of a request for
expedited relief; or</text>
</clause><clause id="HF278E1326FE14235B07A68C04BBAF981"><enum>(ii)</enum><text>the
date on which the Corporation denies the claim or a portion thereof.</text>
</clause></subparagraph><subparagraph id="H515497A5C6964140B54BC30452225761"><enum>(D)</enum><header>Statute of
limitations</header><text>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 (C), 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.</text>
</subparagraph><subparagraph id="HE85EDDA87311463BAE57352CB7F8DE12"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="H8BA35CAC56EE40DDB4C2DDB72249447D"><enum>(i)</enum><header>Statute of
limitations tolled</header><text>For purposes of any applicable statute of
limitations, the filing of a claim with the receiver shall constitute a
commencement of an action.</text>
</clause><clause id="HD432BC6A9F394AA99BCF2FE6660B2A35"><enum>(ii)</enum><header>No prejudice to
other actions</header><text>Subject to paragraph (8), 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 Corporation as receiver
for the covered financial company.</text>
</clause></subparagraph></paragraph><paragraph id="HB0C6E7C2FEAF46BEB1DCA81BC7B1D7A4"><enum>(6)</enum><header>Agreements
against interest of the receiver</header><text>No agreement that tends to
diminish or defeat the interest of the Corporation as receiver in any asset
acquired by the receiver under this section shall be valid against the
receiver, unless such agreement—</text>
<subparagraph id="H0A56B376D1D44388BC89AB0FA81E2400"><enum>(A)</enum><text>is in
writing;</text>
</subparagraph><subparagraph id="H30E232719855446A97828A87783C2B7B"><enum>(B)</enum><text>was executed by an
authorized officer or representative of the covered financial company, or
confirmed in the ordinary course of business by the covered financial company;
and</text>
</subparagraph><subparagraph id="H9BA900933BA64CE28F22A2B66B7CFD51"><enum>(C)</enum><text>has been, since
the time of its execution, an official record of the company or the party
claiming under the agreement provides documentation, acceptable to the
receiver, of such agreement and its authorized execution or confirmation by the
covered financial company.</text>
</subparagraph></paragraph><paragraph id="H93F87791E4BE4EB39E00113358E3D80F"><enum>(7)</enum><header>Payment of
claims</header>
<subparagraph id="H7642D321253D472FA7B713684DC9F8EC"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the Corporation as receiver
may, in its discretion and to the extent that funds are available, pay creditor
claims, in such manner and amounts as are authorized under this section, which
are—</text>
<clause id="H51B926602AA24EE0AF6923F68B2329FC"><enum>(i)</enum><text>allowed by the
receiver;</text>
</clause><clause id="H833424252A2B457C8679C8C42598BF4F"><enum>(ii)</enum><text>approved by the
receiver pursuant to a final determination pursuant to paragraph (3) or (5), as
applicable; or</text>
</clause><clause id="H101D2CE71A1A4645BB65D1D976D15501"><enum>(iii)</enum><text>determined by
the final judgment of a court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="HF9F0853698574104B0CD945D78E89FD2"><enum>(B)</enum><header>Limitation</header><text>A
creditor shall, in no event, receive less than the amount that the creditor is
entitled to receive under paragraphs (2) and (3) of subsection (d), as
applicable.</text>
</subparagraph><subparagraph id="HBA75D94EB5CA420FAC149D1E863F1FF1"><enum>(C)</enum><header>Payment of
dividends on claims</header><text>The Corporation as receiver may, in its sole
discretion, and to the extent otherwise permitted by this section, pay
dividends on proven claims at any time, and no liability shall attach to the
Corporation as receiver, by reason of any such payment or for failure to pay
dividends to a claimant whose claim is not proved at the time of any such
payment.</text>
</subparagraph><subparagraph id="HB3915BF4E1B84482BEF634BE7D4FD4EE"><enum>(D)</enum><header>Rulemaking by
the corporation</header><text>The Corporation may prescribe such rules,
including definitions of terms, as the Corporation deems appropriate to
establish an interest rate for or to make payments of post-insolvency interest
to creditors holding proven claims against the receivership estate of a covered
financial company, except that no such interest shall be paid until the
Corporation as receiver has satisfied the principal amount of all creditor
claims.</text>
</subparagraph></paragraph><paragraph id="H91BBD3ACD5C34B14BB0F29E5E1872919"><enum>(8)</enum><header>Suspension of
legal actions</header>
<subparagraph id="HB14DD8F8A72C40CE969ED6D28300A4FD"><enum>(A)</enum><header>In
general</header><text>After the appointment of the Corporation as receiver for
a covered financial company, the Corporation may request a stay in any judicial
action or proceeding in which such covered financial company is or becomes a
party, for a period of not to exceed 90 days.</text>
</subparagraph><subparagraph id="H614BFD2789174743A5025B9701C94331"><enum>(B)</enum><header>Grant of stay by
all courts required</header><text>Upon receipt of a request by the Corporation
pursuant to subparagraph (A), the court shall grant such stay as to all
parties.</text>
</subparagraph></paragraph><paragraph id="HA51306F5A74041FDB16BEC56132400FA"><enum>(9)</enum><header>Additional
rights and duties</header>
<subparagraph id="HD8F5C3A395C04930B624FE25FE2A37A4"><enum>(A)</enum><header>Prior final
adjudication</header><text>The Corporation shall abide by any final,
non-appealable judgment of any court of competent jurisdiction that was
rendered before the appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph id="H94DE4CF9BB7E4FAD85045C3BE5CD25EA"><enum>(B)</enum><header>Rights and
remedies of receiver</header><text>In the event of any appealable judgment, the
Corporation as receiver shall—</text>
<clause id="H707B683636D24233B23863B244BB3383"><enum>(i)</enum><text>have
all the rights and remedies available to the covered financial company (before
the date of appointment of the Corporation as receiver under section 202) and
the Corporation, including removal to Federal court and all appellate rights;
and</text>
</clause><clause id="H839EBF139C7F45CFBE694477F9DEF5A4"><enum>(ii)</enum><text>not
be required to post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="H5EC39BC6BC644A219D21574C2F964D5C"><enum>(C)</enum><header>No attachment or
execution</header><text>No attachment or execution may be issued by any court
upon assets in the possession of the Corporation as receiver for a covered
financial company.</text>
</subparagraph><subparagraph id="HAEC33861FFDC4769A71C8CB52CA82C61"><enum>(D)</enum><header>Limitation on
judicial review</header><text>Except as otherwise provided in this title, no
court shall have jurisdiction over—</text>
<clause id="H47A9FEA4861645248B55BF8570C27D93"><enum>(i)</enum><text>any
claim or action for payment from, or any action seeking a determination of
rights with respect to, the assets of any covered financial company for which
the Corporation has been appointed receiver, including any assets which the
Corporation may acquire from itself as such receiver; or</text>
</clause><clause id="H97E9D051406446F69B207D502838C7AB"><enum>(ii)</enum><text>any
claim relating to any act or omission of such covered financial company or the
Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="HFA7BE184493F451D8E0B89C4B57703D4"><enum>(E)</enum><header>Disposition of
assets</header><text>In exercising any right, power, privilege, or authority as
receiver in connection with any covered financial company for which the
Corporation is acting as receiver under this section, the Corporation shall, to
the greatest extent practicable, conduct its operations in a manner
that—</text>
<clause id="HFB05559E09B5476EA734205AD6A6FE48"><enum>(i)</enum><text>maximizes the net
present value return from the sale or disposition of such assets;</text>
</clause><clause id="H8C5919A16897415C92E80017C9BBC2EE"><enum>(ii)</enum><text>minimizes the
amount of any loss realized in the resolution of cases;</text>
</clause><clause id="H73F668ED6E5046A38EE8CE115A3D3BEB"><enum>(iii)</enum><text>mitigates the
potential for serious adverse effects to the financial system;</text>
</clause><clause id="H12F79105F47D4F7994DBFCA242D5B9E3"><enum>(iv)</enum><text>ensures timely
and adequate competition and fair and consistent treatment of offerors;
and</text>
</clause><clause id="H7AA68DA11A1142B4A16F86868F2E251B"><enum>(v)</enum><text>prohibits
discrimination on the basis of race, sex, or ethnic group in the solicitation
and consideration of offers.</text>
</clause></subparagraph></paragraph><paragraph id="HBD00644177CE43A58BF8B4679673D533"><enum>(10)</enum><header>Statute of
limitations for actions brought by receiver</header>
<subparagraph id="HFA35C830844147A2B14674D76F70646B"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any provision of any contract, the
applicable statute of limitations with regard to any action brought by the
Corporation as receiver for a covered financial company shall be—</text>
<clause id="H14B278AF7EB241E59AFD8B95956E3079"><enum>(i)</enum><text>in
the case of any contract claim, the longer of—</text>
<subclause id="HF1E4FA5E875847319745FF3D0891702C"><enum>(I)</enum><text>the 6-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="H610FE90C512049C8B0CB22D9E739EED1"><enum>(II)</enum><text>the period
applicable under State law; and</text>
</subclause></clause><clause id="HEB83608A7F6340E4B18F5ABB1FED6E61"><enum>(ii)</enum><text>in
the case of any tort claim, the longer of—</text>
<subclause id="HBED82BAC94A64990AB7200A550FE1E46"><enum>(I)</enum><text>the 3-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="H301FC05F76214F96B6A6AFC9A27E3E8E"><enum>(II)</enum><text>the period
applicable under State law.</text>
</subclause></clause></subparagraph><subparagraph id="HD01003BC709642D1BF04D755EA5CD79C"><enum>(B)</enum><header>Date on which a
claim accrues</header><text>For purposes of subparagraph (A), the date on which
the statute of limitations begins to run on any claim described in subparagraph
(A) shall be the later of—</text>
<clause id="H3E2B67E442D3429595440F5FF19F6373"><enum>(i)</enum><text>the
date of the appointment of the Corporation as receiver under this title;
or</text>
</clause><clause id="H795A7EDC395F432793DD2FA70FC2DDE5"><enum>(ii)</enum><text>the
date on which the cause of action accrues.</text>
</clause></subparagraph><subparagraph id="HB44A76401C8D49DF994AD649875C0D32"><enum>(C)</enum><header>Revival of
expired State causes of action</header>
<clause id="H4EF637BEA4FC4D99A02320B14BAC4DAD"><enum>(i)</enum><header>In
general</header><text>In the case of any tort claim described in clause (ii)
for which the applicable statute of limitations under State law has expired not
more than 5 years before the date of appointment of the Corporation as receiver
for a covered financial company, the Corporation may bring an action as
receiver on such claim without regard to the expiration of the statute of
limitations.</text>
</clause><clause id="H66BC9DF65DB147BFADD46EEBA540CD1A"><enum>(ii)</enum><header>Claims
described</header><text>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 covered financial
company.</text>
</clause></subparagraph></paragraph><paragraph id="HAD3D70E81E6B417F971AB415D26CAF3D"><enum>(11)</enum><header>Avoidable
transfers</header>
<subparagraph id="H75D30ECAEDD14E27A0D7844F1253A522"><enum>(A)</enum><header>Fraudulent
transfers</header><text>The Corporation, as receiver for any covered financial
company, may avoid a transfer of any interest of the covered financial company
in property, or any obligation incurred by the covered financial company, that
was made or incurred at or within 2 years before the date on which the
Corporation was appointed receiver, if—</text>
<clause id="H10E5371EE7444C9BAE7CD51DD10295FD"><enum>(i)</enum><text>the
covered financial company voluntarily or involuntarily—</text>
<subclause id="H38F1C2DD2AEC4BCC8E36B1FDA1A58FE2"><enum>(I)</enum><text>made such transfer
or incurred such obligation with actual intent to hinder, delay, or defraud any
entity to which the covered financial company was or became, on or after the
date on which such transfer was made or such obligation was incurred, indebted;
or</text>
</subclause><subclause id="H35A2F83849B243769C70C40CF510FEC6"><enum>(II)</enum><text>received less
than a reasonably equivalent value in exchange for such transferor obligation;
and</text>
</subclause></clause><clause id="HFDB5B3751F244AC79E4AE9CAAFA68C67"><enum>(ii)</enum><text>the
covered financial company voluntarily or involuntarily—</text>
<subclause id="HF6BEA0ACE80C4726A7BD86A3FAD7DACA"><enum>(I)</enum><text>was insolvent on
the date that such transfer was made or such obligation was incurred, or became
insolvent as a result of such transfer or obligation;</text>
</subclause><subclause id="HB04BA07370F24D2D8BB22F5D171392C0"><enum>(II)</enum><text>was engaged in
business or a transaction, or was about to engage in business or a transaction,
for which any property remaining with the covered financial company was an
unreasonably small capital;</text>
</subclause><subclause id="H7355DAAAE5D745B8968BCAF6D08CD32E"><enum>(III)</enum><text>intended to
incur, or believed that the covered financial company would incur, debts that
would be beyond the ability of the covered financial company to pay as such
debts matured; or</text>
</subclause><subclause id="H7973815D2E694EAA992B9B6474016F76"><enum>(IV)</enum><text>made such
transfer to or for the benefit of an insider, or incurred such obligation to or
for the benefit of an insider, under an employment contract and not in the
ordinary course of business.</text>
</subclause></clause></subparagraph><subparagraph id="H89B63002BA3142F3A07E5D99E85E8430"><enum>(B)</enum><header>Preferential
transfers</header><text>The Corporation as receiver for any covered financial
company may avoid a transfer of an interest of the covered financial company in
property—</text>
<clause id="H69F92597AACB4FF29B2CF8023438355A"><enum>(i)</enum><text>to
or for the benefit of a creditor;</text>
</clause><clause id="H864FB18AD56D4FCD97FAC93F2543F221"><enum>(ii)</enum><text>for
or on account of an antecedent debt that was owed by the covered financial
company before the transfer was made;</text>
</clause><clause id="H044D9C04582445318F6771803695B3B6"><enum>(iii)</enum><text>that was made
while the covered financial company was insolvent;</text>
</clause><clause id="H3792125E00A8413692BC200C77C05804"><enum>(iv)</enum><text>that was
made—</text>
<subclause id="HC83F701B1A3C498BB04F9F902657822D"><enum>(I)</enum><text>90 days or less
before the date on which the Corporation was appointed receiver; or</text>
</subclause><subclause id="H108CD0E6D7D5448ABAA7A1BFFB50353B"><enum>(II)</enum><text>more than 90
days, but less than 1 year before the date on which the Corporation was
appointed receiver, if such creditor at the time of the transfer was an
insider; and</text>
</subclause></clause><clause id="H996580722E2E4A579241FB744D21B21C"><enum>(v)</enum><text>that
enables the creditor to receive more than the creditor would receive if—</text>
<subclause id="H0EFA286D590A469DBDCFF0C7D64CB8EF"><enum>(I)</enum><text>the covered
financial company had been liquidated under chapter 7 of the Bankruptcy
Code;</text>
</subclause><subclause id="H0DD4C74ECC034C048D0BF22D0472ED19"><enum>(II)</enum><text>the transfer had
not been made; and</text>
</subclause><subclause id="HD46B9F54FEB949F6ACDD6F02A2BD6660"><enum>(III)</enum><text>the creditor
received payment of such debt to the extent provided by the provisions of
chapter 7 of the Bankruptcy Code.</text>
</subclause></clause></subparagraph><subparagraph id="HEB9AA098D1464FA0A8D72A6FDEC3EA4C"><enum>(C)</enum><header>Post-receivership
transactions</header><text>The Corporation as receiver for any covered
financial company may avoid a transfer of property of the receivership that
occurred after the Corporation was appointed receiver that was not authorized
under this title by the Corporation as receiver.</text>
</subparagraph><subparagraph id="H8436E03B8DBD4197A0196481156621FE"><enum>(D)</enum><header>Right of
recovery</header><text>To the extent that a transfer is avoided under
subparagraph (A), (B), or (C), the Corporation may recover, for the benefit of
the covered financial company, the property transferred or, if a court so
orders, the value of such property (at the time of such transfer) from—</text>
<clause id="HB4164194DE3848D0BE604E1B9FB228BB"><enum>(i)</enum><text>the
initial transferee of such transfer or the person for whose benefit such
transfer was made; or</text>
</clause><clause id="H1D0CF0C32DBB4BE8803179CEFAA2E21F"><enum>(ii)</enum><text>any
immediate or mediate transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="H0D5467ACBAFC4CC8BD1EBEDE2C11FA8A"><enum>(E)</enum><header>Rights of
transferee or obligee</header><text>The Corporation may not recover under
subparagraph (D)(ii) from—</text>
<clause id="H9BB0C70971A747DF808CDD613B69A0D3"><enum>(i)</enum><text>any
transferee that takes for value, including in satisfaction of or to secure a
present or antecedent debt, in good faith, and without knowledge of the
voidability of the transfer avoided; or</text>
</clause><clause id="H060673EF601C4178ABA85FCA5E021B76"><enum>(ii)</enum><text>any
immediate or mediate good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="H4E735CCBB6D24B91B7A5DBBC2CFE1144"><enum>(F)</enum><header>Defenses</header><text>Subject
to the other provisions of this title—</text>
<clause id="HA0DD39C9C2234C73A963E97A1070A7CE"><enum>(i)</enum><text>a
transferee or obligee from which the Corporation seeks to recover a transfer or
to avoid an obligation under subparagraph (A), (B), (C), or (D) shall have the
same defenses available to a transferee or obligee from which a trustee seeks
to recover a transfer or avoid an obligation under sections 547, 548, and 549
of the Bankruptcy Code; and</text>
</clause><clause id="H29D22DAD506F4AA68A3C3D4A72EEBA5B"><enum>(ii)</enum><text>the
authority of the Corporation to recover a transfer or avoid an obligation shall
be subject to subsections (b) and (c) of section 546, section 547(c), and
section 548(c) of the Bankruptcy Code.</text>
</clause></subparagraph><subparagraph id="H267DAE8407294E6D92CD0C42542F5654"><enum>(G)</enum><header>Rights under
this section</header><text>The rights of the Corporation as receiver under this
section shall be superior to any rights of a trustee or any other party (other
than a Federal agency) under the Bankruptcy Code.</text>
</subparagraph><subparagraph id="H0891C4288D06455498A3DF73851C6D26"><enum>(H)</enum><header>Rules of
construction; definitions</header><text>For purposes of—</text>
<clause id="HB36F59C2B47B48BDBEC4F4D5D8D36669"><enum>(i)</enum><text>subparagraphs (A)
and (B)—</text>
<subclause id="H28A92DB0E379437EAD04E7F5C650AB1B"><enum>(I)</enum><text>the term
<term>insider</term> has the same meaning as in section 101(31) of the
Bankruptcy Code;</text>
</subclause><subclause id="HD23FC957EB7441CA9057E5AC142BE08B"><enum>(II)</enum><text>a transfer is
made when such transfer is so perfected that a bona fide purchaser from the
covered financial company against whom applicable law permits such transfer to
be perfected cannot acquire an interest in the property transferred that is
superior to the interest in such property of the transferee, but if such
transfer is not so perfected before the date on which the Corporation is
appointed as receiver for the covered financial company, such transfer is made
immediately before the date of such appointment; and</text>
</subclause><subclause id="H6753B523899A44C78747BEA5E2ACE7F6"><enum>(III)</enum><text>the term
<term>value</term> means property, or satisfaction or securing of a present or
antecedent debt of the covered financial company, but does not include an
unperformed promise to furnish support to the covered financial company;
and</text>
</subclause></clause><clause id="HFACA3507B705418EA3D41DB915BD3B82"><enum>(ii)</enum><text>subparagraph
(B)—</text>
<subclause id="H0B33F1965B5B41DD89497D5EC0D29C0A"><enum>(I)</enum><text>the covered
financial company is presumed to have been insolvent on and during the 90-day
period immediately preceding the date of appointment of the Corporation as
receiver; and</text>
</subclause><subclause id="H2E4BCB81924F4176B26F98DDE68A9A8F"><enum>(II)</enum><text>the term
<term>insolvent</term> has the same meaning as in section 101(32) of the
Bankruptcy Code.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HD521BBF35CDA4A8B97F9E3440E777AD3"><enum>(12)</enum><header>Setoff</header>
<subparagraph id="HF68F25B7462D42FBA1D9640DBC3500E9"><enum>(A)</enum><header>Generally</header><text>Except
as otherwise provided in this title, any right of a creditor to offset a mutual
debt owed by the creditor to any covered financial company that arose before
the Corporation was appointed as receiver for the covered financial company
against a claim of such creditor may be asserted if enforceable under
applicable noninsolvency law, except to the extent that—</text>
<clause id="HDEFBA5212EE44B999847B01EE968ED34"><enum>(i)</enum><text>the
claim of the creditor against the covered financial company is
disallowed;</text>
</clause><clause id="H4A247A94464D42309EB5140827FB5450"><enum>(ii)</enum><text>the
claim was transferred, by an entity other than the covered financial company,
to the creditor—</text>
<subclause id="H8E456BF863024E809677DE9B2208D851"><enum>(I)</enum><text>after the
Corporation was appointed as receiver of the covered financial company;
or</text>
</subclause><subclause id="HCCE9280AE0854086ABB9DA783534C635"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="HFF4EC9724D204A19B8D0BCE73C89FE3E"><enum>(aa)</enum><text>after the 90-day period
preceding the date on which the Corporation was appointed as receiver for the
covered financial company; and</text>
</item><item id="H1B04A937D2BE478DA11616902917DE49" indent="up1"><enum>(bb)</enum><text>while the covered financial company
was insolvent (except for a setoff in connection with a qualified financial
contract); or</text>
</item></subclause></clause><clause id="HF0F44A10F6224826B25A0F703A6F7155"><enum>(iii)</enum><text>the debt owed to
the covered financial company was incurred by the covered financial
company—</text>
<subclause id="HD90B545BB6644CFF8E60FE7ADC195357"><enum>(I)</enum><text>after the 90-day
period preceding the date on which the Corporation was appointed as receiver
for the covered financial company;</text>
</subclause><subclause id="HFA410A600CF24697A035524515B41B94"><enum>(II)</enum><text>while the covered
financial company was insolvent; and</text>
</subclause><subclause id="H90F9C39F45A24D3C9CDB3A702D2E6F4C"><enum>(III)</enum><text>for the purpose
of obtaining a right of setoff against the covered financial company (except
for a setoff in connection with a qualified financial contract).</text>
</subclause></clause></subparagraph><subparagraph id="H98E5B490F12A4406B5F5730806423FBE"><enum>(B)</enum><header>Insufficiency</header>
<clause id="H21AE7C85601348738D1AE91C715CA7EC"><enum>(i)</enum><header>In
general</header><text>Except with respect to a setoff in connection with a
qualified financial contract, if a creditor offsets a mutual debt owed to the
covered financial company against a claim of the covered financial company on
or within the 90-day period preceding the date on which the Corporation is
appointed as receiver for the covered financial company, the Corporation may
recover from the creditor the amount so offset, to the extent that any
insufficiency on the date of such setoff is less than the insufficiency on the
later of—</text>
<subclause id="H71671E6686FA47D9AEED02F1020AF6E5"><enum>(I)</enum><text>the date that is
90 days before the date on which the Corporation is appointed as receiver for
the covered financial company; or</text>
</subclause><subclause id="H9CFBB836F4A84CA5B073432C0B1DEE46"><enum>(II)</enum><text>the first day on
which there is an insufficiency during the 90-day period preceding the date on
which the Corporation is appointed as receiver for the covered financial
company.</text>
</subclause></clause><clause id="H2BE83CB38A75469CA4454B7CB34F3E79"><enum>(ii)</enum><header>Definition of
insufficiency</header><text>In this subparagraph, the term
<quote>insufficiency</quote> means the amount, if any, by which a claim against
the covered financial company exceeds a mutual debt owed to the covered
financial company by the holder of such claim.</text>
</clause></subparagraph><subparagraph id="HB95FF172AE5F407BAF631B4753528A2F"><enum>(C)</enum><header>Insolvency</header><text>The
term <term>insolvent</term> has the same meaning as in section 101(32) of the
Bankruptcy Code.</text>
</subparagraph><subparagraph id="H6DD1120BB2FA4977ACAF4249698CD0EA"><enum>(D)</enum><header>Presumption of
insolvency</header><text>For purposes of this paragraph, the covered financial
company is presumed to have been insolvent on and during the 90-day period
preceding the date of appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph id="H17F4F8B525E64D379E9A9C1C9CA909C8"><enum>(E)</enum><header>Limitation</header><text>Nothing
in this paragraph (12) shall be the basis for any right of setoff where no such
right exists under applicable noninsolvency law.</text>
</subparagraph><subparagraph id="HAB34E3F1978B48FF8EBF52BD6372AC0E"><enum>(F)</enum><header>Priority
claim</header><text>Except as otherwise provided in this title, the Corporation
as receiver for the covered financial company may sell or transfer any assets
free and clear of the setoff rights of any party, except that such party shall
be entitled to a claim, subordinate to the claims payable under subparagraphs
(A), (B), (C), and (D) of subsection (b)(1), but senior to all other unsecured
liabilities defined in subsection (b)(1)(E), in an amount equal to the value of
such setoff rights.</text>
</subparagraph></paragraph><paragraph id="H449DB932849440EFA8FB40E130FDB533"><enum>(13)</enum><header>Attachment of
assets and other injunctive relief</header><text>Subject to paragraph (14), any
court of competent jurisdiction may, at the request of the Corporation as
receiver for a covered financial company, 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 under the control of the
court and appointing a trustee to hold such assets.</text>
</paragraph><paragraph id="H1FE36C2F1AE9468795F3D8522848AE34"><enum>(14)</enum><header>Standards</header>
<subparagraph id="H36DBE18E5220492F9D4C3A3EE9555905"><enum>(A)</enum><header>Showing</header><text>Rule
65 of the Federal Rules of Civil Procedure shall apply with respect to any
proceeding under paragraph (13), without regard to the requirement that the
applicant show that the injury, loss, or damage is irreparable and
immediate.</text>
</subparagraph><subparagraph id="H7F50A18ABFF34BB4BC45743464CD58D5"><enum>(B)</enum><header>State
proceeding</header><text>If, in the case of any proceeding in a State court,
the court determines that rules of civil procedure available under the laws of
the State provide substantially similar protections of the right of the parties
to due process as provided under Rule 65 (as modified with respect to such
proceeding by subparagraph (A)), the relief sought by the Corporation pursuant
to paragraph (14) may be requested under the laws of such State.</text>
</subparagraph></paragraph><paragraph id="HA1C72774A5A849D38B2E5F1794EBE596"><enum>(15)</enum><header>Treatment of
claims arising from breach of contracts executed by the corporation as
receiver</header><text>Notwithstanding any other provision of this title, any
final and non-appealable judgment for monetary damages entered against the
Corporation as receiver for a covered financial company for the breach of an
agreement executed or approved by the Corporation after the date of its
appointment shall be paid as an administrative expense of the receiver. Nothing
in this paragraph shall be construed to limit the power of a receiver to
exercise any rights under contract or law, including to terminate, breach,
cancel, or otherwise discontinue such agreement.</text>
</paragraph><paragraph id="H760DCC169B774C31BFE20320F79CE442"><enum>(16)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="H98DA4D14B9DA4226BD11F66A4115B4A5"><enum>(A)</enum><header>In
general</header><text>The Corporation as receiver for a covered financial
company shall, consistent with the accounting and reporting practices and
procedures established by the Corporation, maintain a full accounting of each
receivership or other disposition of any covered financial company.</text>
</subparagraph><subparagraph id="H93E6B2FC3D0C42CDB54D241FB25886A5"><enum>(B)</enum><header>Annual
accounting or report</header><text>With respect to each receivership to which
the Corporation is appointed, the Corporation shall make an annual accounting
or report, as appropriate, available to the Secretary and the Comptroller
General of the United States.</text>
</subparagraph><subparagraph id="H73797CFA8F6E4D8BBFBA309AF2C17343"><enum>(C)</enum><header>Availability of
reports</header><text>Any report prepared pursuant to subparagraph (B) and
section 203(c)(3) shall be made available to the public by the
Corporation.</text>
</subparagraph><subparagraph id="HD15BF6FA0A364FEF89A9AA53ADBA6D18"><enum>(D)</enum><header>Recordkeeping
requirement</header>
<clause commented="no" id="HCA86BF8D9EDC460B97EEF775DAD837C6"><enum>(i)</enum><header>In
general</header><text>The Corporation shall prescribe such regulations and
establish such retention schedules as are necessary to maintain the documents
and records of the Corporation generated in exercising the authorities of this
title and the records of a covered financial company for which the Corporation
is appointed receiver, with due regard for—</text>
<subclause commented="no" id="H34F7D8D2BBD64CAF87887FAD7F6FA36F"><enum>(I)</enum><text>the avoidance of
duplicative record retention; and</text>
</subclause><subclause commented="no" id="HF5601B2AD36747428FCD23700DEEC488"><enum>(II)</enum><text>the expected
evidentiary needs of the Corporation as receiver for a covered financial
company and the public regarding the records of covered financial
companies.</text>
</subclause></clause><clause commented="no" id="H7540D279B9E24BC4A459D10CECA26E33"><enum>(ii)</enum><header>Retention of
records</header><text>Unless otherwise required by applicable Federal law or
court order, the Corporation may not, at any time, destroy any records that are
subject to clause (i).</text>
</clause><clause id="H89679EFEBB7C4DADB6EA54266E92B334"><enum>(iii)</enum><header>Records
defined</header><text>As used in this subparagraph, the terms
<term>records</term> and <term>records of a covered financial company</term>
mean any document, book, paper, map, photograph, microfiche, microfilm,
computer or electronically-created record generated or maintained by the
covered financial company in the course of and necessary to its transaction of
business.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H7E04C511C6994669A5A77928EB59787E"><enum>(b)</enum><header>Priority of
expenses and unsecured claims</header>
<paragraph id="H6ACAC02B05CE42708C0FC04FFC8DA740"><enum>(1)</enum><header>In
general</header><text>Unsecured claims against a covered financial company, or
the Corporation as receiver for such covered financial company under this
section, that are proven to the satisfaction of the receiver shall have
priority in the following order:</text>
<subparagraph id="H8840C69DF51D43D9A5986AD935EAA53B"><enum>(A)</enum><text>Administrative
expenses of the receiver.</text>
</subparagraph><subparagraph id="HA72996D97CEE4356A25A23EF916C18F8"><enum>(B)</enum><text>Any amounts owed
to the United States, unless the United States agrees or consents
otherwise.</text>
</subparagraph><subparagraph id="H13DDEC626D3945F7BDF39857075D7D50"><enum>(C)</enum><text>Wages, salaries,
or commissions, including vacation, severance, and sick leave pay earned by an
individual (other than an individual described in subparagraph (G)), but only
to the extent of $11,725 for each individual (as indexed for inflation, by
regulation of the Corporation) earned not later than 180 days before the date
of appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9B91AA71A8D436D8839FAECEB8EE7EA"><enum>(D)</enum><text>Contributions owed
to employee benefit plans arising from services rendered not later than 180
days before the date of appointment of the Corporation as receiver, to the
extent of the number of employees covered by each such plan, multiplied by
$11,725 (as indexed for inflation, by regulation of the Corporation), less the
aggregate amount paid to such employees under subparagraph (C), plus the
aggregate amount paid by the receivership on behalf of such employees to any
other employee benefit plan.</text>
</subparagraph><subparagraph id="HD50A7D8193FA4E51AD63B8A3286F34DE"><enum>(E)</enum><text>Any other general
or senior liability of the covered financial company (which is not a liability
described under subparagraph (F), (G), or (H)).</text>
</subparagraph><subparagraph id="H0D07B8765920499E9C464965CD5370D6"><enum>(F)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (G) or (H)).</text>
</subparagraph><subparagraph id="H34BD864BDD744AC8B82B8EA57C06234A"><enum>(G)</enum><text>Any wages,
salaries, or commissions, including vacation, severance, and sick leave pay
earned, owed to senior executives and directors of the covered financial
company.</text>
</subparagraph><subparagraph id="H734F1920FC51453E8746863C019D63AE"><enum>(H)</enum><text>Any obligation to
shareholders, members, general partners, limited partners, or other persons,
with interests in the equity of the covered financial company arising as a
result of their status as shareholders, members, general partners, limited
partners, or other persons with interests in the equity of the covered
financial company.</text>
</subparagraph></paragraph><paragraph id="H200AA97B97FE4C83A9A85EBE8C83C1DA"><enum>(2)</enum><header>Post-receivership
financing priority</header><text>In the event that the Corporation, as receiver
for a covered financial company, is unable to obtain unsecured credit for the
covered financial company from commercial sources, the Corporation as receiver
may obtain credit or incur debt on the part of the covered financial company,
which shall have priority over any or all administrative expenses of the
receiver under paragraph (1)(A).</text>
</paragraph><paragraph id="H8DFE0B07A2BE470290D40AA546F5B1C9"><enum>(3)</enum><header>Claims of the
United States</header><text>Unsecured claims of the United States shall, at a
minimum, have a higher priority than liabilities of the covered financial
company that count as regulatory capital.</text>
</paragraph><paragraph id="H736D24352B494DF8A252795EB08A105A"><enum>(4)</enum><header>Creditors
similarly situated</header><text>All claimants of a covered financial company
that are similarly situated under paragraph (1) shall be treated in a similar
manner, except that the Corporation may take any action (including making
payments, subject to subsection (o)(1)(D)(i)) that does not comply with this
subsection, if—</text>
<subparagraph id="H653CF1697EE1499BAF9F061E674FBDD6"><enum>(A)</enum><text>the Corporation
determines that such action is necessary—</text>
<clause id="H508073EEC53341BDBCEC37267879309F"><enum>(i)</enum><text>to
maximize the value of the assets of the covered financial company;</text>
</clause><clause id="H16F7D5196DBF4899AD10F5C1A0B10716"><enum>(ii)</enum><text>to
initiate and continue operations essential to implementation of the
receivership or any bridge financial company;</text>
</clause><clause id="H5214765F55B94B22B8DCF2EA702E1228"><enum>(iii)</enum><text>to
maximize the present value return from the sale or other disposition of the
assets of the covered financial company; or</text>
</clause><clause id="H0B67B00C700640B8B26165E57E6A69AD"><enum>(iv)</enum><text>to
minimize the amount of any loss realized upon the sale or other disposition of
the assets of the covered financial company; and</text>
</clause></subparagraph><subparagraph id="H1C944E4E80B2485BA0CDAFEFBCB1B401"><enum>(B)</enum><text>all claimants that
are similarly situated under paragraph (1) receive not less than the amount
provided in paragraphs (2) and (3) of subsection (d).</text>
</subparagraph></paragraph><paragraph id="HF6571E4D54E94376A8241D2409F38528"><enum>(5)</enum><header>Secured claims
unaffected</header><text>This section shall not affect secured claims or
security entitlements in respect of assets or property held by the covered
financial company, except to the extent that the security is insufficient to
satisfy the claim, and then only with regard to the difference between the
claim and the amount realized from the security.</text>
</paragraph><paragraph id="H1BF3ED11D2E94B15966BC326D205C5DA"><enum>(6)</enum><header>Priority of
expenses and unsecured claims in the orderly liquidation of sipc
member</header><text>Where the Corporation is appointed as receiver for a
covered broker or dealer, unsecured claims against such covered broker or
dealer, or the Corporation as receiver for such covered broker or dealer under
this section, that are proven to the satisfaction of the receiver under section
205(e), shall have the priority prescribed in paragraph (1), except
that—</text>
<subparagraph id="HBBAC76CB9E5040879059B5452D98A37D"><enum>(A)</enum><text>SIPC shall be
entitled to recover administrative expenses incurred in performing its
responsibilities under section 205 on an equal basis with the Corporation, in
accordance with paragraph (1)(A);</text>
</subparagraph><subparagraph id="H66379EC3AA7B493AA84288F9F4C806FA"><enum>(B)</enum><text>the Corporation
shall be entitled to recover any amounts paid to customers or to SIPC pursuant
to section 205(f), in accordance with paragraph (1)(B);</text>
</subparagraph><subparagraph id="H42FB02972FC941FAB1F0772042DD470D"><enum>(C)</enum><text>SIPC shall be
entitled to recover any amounts paid out of the SIPC Fund to meet its
obligations under section 205 and under the Securities Investor Protection Act
of 1970 (15 U.S.C. 78aaa et seq.), which claim shall be subordinate to the
claims payable under subparagraphs (A) and (B) of paragraph (1), but senior to
all other claims; and</text>
</subparagraph><subparagraph id="HE52053A6E58B4D8D95591A3AD77F9F4B"><enum>(D)</enum><text>the Corporation
may, after paying any proven claims to customers under section 205 and the
Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.), and as
provided above, pay dividends on other proven claims, in its discretion, and to
the extent that funds are available, in accordance with the priorities set
forth in paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="H6E3D88DDD4694666A724A633A726AEC6"><enum>(c)</enum><header>Provisions
relating to contracts entered into before appointment of receiver</header>
<paragraph id="H58B8439582FC4DF09A174ABAD5698747"><enum>(1)</enum><header>Authority to
repudiate contracts</header><text>In addition to any other rights that a
receiver may have, the Corporation as receiver for any covered financial
company may disaffirm or repudiate any contract or lease—</text>
<subparagraph id="HCDD2D3D5A5034A2F881F8427B54F5562"><enum>(A)</enum><text>to which the
covered financial company is a party;</text>
</subparagraph><subparagraph id="HD20EFEA6E5A8424B8E17B54DB6630017"><enum>(B)</enum><text>the performance of
which the Corporation as receiver, in the discretion of the Corporation,
determines to be burdensome; and</text>
</subparagraph><subparagraph id="H58A937DE308B4551ADDEDC83EC967710"><enum>(C)</enum><text>the disaffirmance
or repudiation of which the Corporation as receiver determines, in the
discretion of the Corporation, will promote the orderly administration of the
affairs of the covered financial company.</text>
</subparagraph></paragraph><paragraph id="H1AD2927100F74234B1C61887AFFDA480"><enum>(2)</enum><header>Timing of
repudiation</header><text>The Corporation, as receiver for any covered
financial company, shall determine whether or not to exercise the rights of
repudiation under this section within a reasonable period of time.</text>
</paragraph><paragraph id="HF096717BAD1140D2B17E14FB7B69C4A0"><enum>(3)</enum><header>Claims for
damages for repudiation</header>
<subparagraph id="HE9DA5587997B4A32A6276106867E3BA2"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraphs (4), (5), and (6) and in
subparagraphs (C), (D), and (E) of this paragraph, the liability of the
Corporation as receiver for a covered financial company for the disaffirmance
or repudiation of any contract pursuant to paragraph (1) shall be—</text>
<clause id="H6FA2B84C116C44AE8ACD3EFA444D7C99"><enum>(i)</enum><text>limited to actual
direct compensatory damages; and</text>
</clause><clause id="H7B060567B8DC499AA1CC3EE9CF62C0BA"><enum>(ii)</enum><text>determined as
of—</text>
<subclause id="H347159DCCBCD40A39D93B75731117031"><enum>(I)</enum><text>the date of the
appointment of the Corporation as receiver; or</text>
</subclause><subclause id="H4D7C4818E80F4562AF6FF70152AC99D8"><enum>(II)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="H0EE746B7ACED4E7BA7431B147F2F6D49"><enum>(B)</enum><header>No liability for
other damages</header><text>For purposes of subparagraph (A), the term
<quote>actual direct compensatory damages</quote> does not include—</text>
<clause id="H350ECBE018E04D03812448C18A1E9337"><enum>(i)</enum><text>punitive or
exemplary damages;</text>
</clause><clause id="H34DFC507BD474C0098BAB02F3E99AA03"><enum>(ii)</enum><text>damages for lost
profits or opportunity; or</text>
</clause><clause id="H1E8AD90A74344448B87A615333B59443"><enum>(iii)</enum><text>damages for pain
and suffering.</text>
</clause></subparagraph><subparagraph id="HF0CB7131792F4917AAA7C4C88390734E"><enum>(C)</enum><header>Measure of
damages for repudiation of qualified financial contracts</header><text>In the
case of any qualified financial contract or agreement to which paragraph (8)
applies, compensatory damages shall be—</text>
<clause id="H1A7D14C57A344DB5A5DDB424A3D297B2"><enum>(i)</enum><text>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</text>
</clause><clause id="HE9F79D9B453E4FF596589A0B65193320"><enum>(ii)</enum><text>paid in
accordance with this paragraph and subsection (d), except as otherwise
specifically provided in this subsection.</text>
</clause></subparagraph><subparagraph id="H1456099B936B4B09883CBA2FEA39ED80"><enum>(D)</enum><header>Measure of
damages for repudiation or disaffirmance of debt obligation</header><text>In
the case of any debt for borrowed money or evidenced by a security, actual
direct compensatory damages shall be no less than the amount lent plus accrued
interest plus any accreted original issue discount as of the date the
Corporation was appointed receiver of the covered financial company and, to the
extent that an allowed secured claim is secured by property the value of which
is greater than the amount of such claim and any accrued interest through the
date of repudiation or disaffirmance, such accrued interest pursuant to
paragraph (1).</text>
</subparagraph><subparagraph id="H0D9B71A8C2A54A3C88D137422F8B939A"><enum>(E)</enum><header>Measure of
damages for repudiation or disaffirmance of contingent
obligation</header><text>In the case of any contingent obligation of a covered
financial company consisting of any obligation under a guarantee, letter of
credit, loan commitment, or similar credit obligation, the Corporation may, by
rule or regulation, prescribe that actual direct compensatory damages shall be
no less than the estimated value of the claim as of the date the Corporation
was appointed receiver of the covered financial company, as such value is
measured based on the likelihood that such contingent claim would become fixed
and the probable magnitude thereof.</text>
</subparagraph></paragraph><paragraph id="HF8DC6A2D183347BE9E4EFD13742DB692"><enum>(4)</enum><header>Leases under
which the covered financial company is the lessee</header>
<subparagraph id="H34CB5436070E4B84B585F067B581F3E7"><enum>(A)</enum><header>In
general</header><text>If the Corporation as receiver disaffirms or repudiates a
lease under which the covered financial company is the lessee, the receiver
shall not be liable for any damages (other than damages determined pursuant to
subparagraph (B)) for the disaffirmance or repudiation of such lease.</text>
</subparagraph><subparagraph id="H6ED05094B3F74E9BAE98821B0A191420"><enum>(B)</enum><header>Payments of
rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease
to which subparagraph (A) would otherwise apply shall—</text>
<clause id="H6CE8B593A1504C2D916E88F647FB98A1"><enum>(i)</enum><text>be
entitled to the contractual rent accruing before the later of the date on
which—</text>
<subclause id="H6C08C1C4BAD4421D854700695C272464"><enum>(I)</enum><text>the notice of
disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="H02C3E64981D74A0292BD6FCA5DEC5B49"><enum>(II)</enum><text>the disaffirmance
or repudiation becomes effective, unless the lessor is in default or breach of
the terms of the lease;</text>
</subclause></clause><clause id="HEB42ED7EFE7C4E919514D1D3900714AF"><enum>(ii)</enum><text>have no claim for
damages under any acceleration clause or other penalty provision in the lease;
and</text>
</clause><clause id="H5DEA457124FB4E5290C41C193C86729E"><enum>(iii)</enum><text>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 paragraph
and subsection (d).</text>
</clause></subparagraph></paragraph><paragraph id="H7A5DA0CBAC3B49989CF345AA054AD1F6"><enum>(5)</enum><header>Leases under
which the covered financial company is the lessor</header>
<subparagraph id="HAC5B3D3300674F1E8859A5619EFA5340"><enum>(A)</enum><header>In
general</header><text>If the Corporation as receiver for a covered financial
company repudiates an unexpired written lease of real property of the covered
financial company under which the covered financial company is the lessor and
the lessee is not, as of the date of such repudiation, in default, the lessee
under such lease may either—</text>
<clause id="H64E8C7D3E553414496059A7AE15862CD"><enum>(i)</enum><text>treat the lease as
terminated by such repudiation; or</text>
</clause><clause id="H0F040E7006E247018BAFE2541232AF12"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H28654C96AF6B40DC8E53C66CFF7B9400"><enum>(B)</enum><header>Provisions
applicable to lessee remaining in possession</header><text>If any lessee under
a lease described in subparagraph (A) remains in possession of a leasehold
interest pursuant to clause (ii) of subparagraph (A)—</text>
<clause id="HB89C6DB84DD241C881D3CA65E8674A94"><enum>(i)</enum><text>the
lessee—</text>
<subclause id="HEF78FC01F1A043BEA267A87BA4EAF91F"><enum>(I)</enum><text>shall continue to
pay the contractual rent pursuant to the terms of the lease after the date of
the repudiation of such lease; and</text>
</subclause><subclause id="HA1AED4FFA90E49E497B88C9B61F2441A"><enum>(II)</enum><text>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 covered financial company under the lease after such
date; and</text>
</subclause></clause><clause id="H77C444E3DF714678A971C246FFB92670"><enum>(ii)</enum><text>the
Corporation as 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).</text>
</clause></subparagraph></paragraph><paragraph id="H7051CC09C74C4427A9E41AA2334D5D68"><enum>(6)</enum><header>Contracts for
the sale of real property</header>
<subparagraph id="HCB7A4DB12C5C4F698490F15E3CFBF7E0"><enum>(A)</enum><header>In
general</header><text>If the receiver repudiates any contract (which meets the
requirements of subsection (a)(6)) 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—</text>
<clause id="HECF42A3EC75D4858881E95001C2F4EFE"><enum>(i)</enum><text>treat the contract
as terminated by such repudiation; or</text>
</clause><clause id="HE3AE3BFC7044487A800D89A16CF25781"><enum>(ii)</enum><text>remain in
possession of such real property.</text>
</clause></subparagraph><subparagraph id="H0489D59619FE4FABA2FFDDE75B3EEAD9"><enum>(B)</enum><header>Provisions
applicable to purchaser remaining in possession</header><text>If any purchaser
of real property under any contract described in subparagraph (A) remains in
possession of such property pursuant to clause (ii) of subparagraph (A)—</text>
<clause id="HDDED7AD9429645199D6363F46D38E09F"><enum>(i)</enum><text>the
purchaser—</text>
<subclause id="H15B6740931434761B8342697638B7EC8"><enum>(I)</enum><text>shall continue to
make all payments due under the contract after the date of the repudiation of
the contract; and</text>
</subclause><subclause id="H6E00F3358B1C4DACA52051EDC381E36D"><enum>(II)</enum><text>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 covered financial
company under the contract; and</text>
</subclause></clause><clause id="H302EDF1DC44E43F1A49C3F9C99D4425F"><enum>(ii)</enum><text>the
Corporation as receiver shall—</text>
<subclause id="H7EDD483F0D3B4F989854E209563A123F"><enum>(I)</enum><text>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);</text>
</subclause><subclause id="H64C54FC01CF8451FA8B2B06E9C9D8BE1"><enum>(II)</enum><text>deliver title to
the purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="H1F3F8E352E5B4B019434454A7698897C"><enum>(III)</enum><text>have no
obligation under the contract other than the performance required under
subclause (II).</text>
</subclause></clause></subparagraph><subparagraph id="H011F52D58CD34CA99320E52A53E395A6"><enum>(C)</enum><header>Assignment and
sale allowed</header>
<clause id="H67CE4CCD3B3C43AC9ADA7501058D3B2D"><enum>(i)</enum><header>In
general</header><text>No provision of this paragraph shall be construed as
limiting the right of the Corporation as receiver to assign the contract
described in subparagraph (A) and sell the property, subject to the contract
and the provisions of this paragraph.</text>
</clause><clause id="H79A0C00F672844BB9D4D648647DF6F96"><enum>(ii)</enum><header>No liability
after assignment and sale</header><text>If an assignment and sale described in
clause (i) is consummated, the Corporation as 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.</text>
</clause></subparagraph></paragraph><paragraph id="HCF1E57C2BCF249539EE3FC03633A9D75"><enum>(7)</enum><header>Provisions
applicable to service contracts</header>
<subparagraph id="H8A6835464BF2492D9B66915C61D88C31"><enum>(A)</enum><header>Services
performed before appointment</header><text>In the case of any contract for
services between any person and any covered financial company for which the
Corporation has been appointed receiver, any claim of such person for services
performed before the date of appointment shall be—</text>
<clause id="H6D4E7A59D5F84435BB887B1719F9C4FF"><enum>(i)</enum><text>a
claim to be paid in accordance with subsections (a), (b), and (d); and</text>
</clause><clause id="HADAF9543D37F492191A1F20A326C2F32"><enum>(ii)</enum><text>deemed to have
arisen as of the date on which the receiver was appointed.</text>
</clause></subparagraph><subparagraph id="H06B9A080220741E996B838C63F8B5A87"><enum>(B)</enum><header>Services
performed after appointment and prior to repudiation</header><text>If, in the
case of any contract for services described in subparagraph (A), the
Corporation as receiver accepts performance by the other person before making
any determination to exercise the right of repudiation of such contract under
this section—</text>
<clause id="H8565A232D80B4840B6CE2835A996E82E"><enum>(i)</enum><text>the
other party shall be paid under the terms of the contract for the services
performed; and</text>
</clause><clause id="H755A631E982D45598A999A013637E79A"><enum>(ii)</enum><text>the
amount of such payment shall be treated as an administrative expense of the
receivership.</text>
</clause></subparagraph><subparagraph id="HB46CDE57993D4601B20C7448286CF477"><enum>(C)</enum><header>Acceptance of
performance no bar to subsequent repudiation</header><text>The acceptance by
the Corporation as receiver for services referred to in subparagraph (B) in
connection with a contract described in subparagraph (B) shall not affect the
right of the Corporation as receiver to repudiate such contract under this
section at any time after such performance.</text>
</subparagraph></paragraph><paragraph id="HFCF731180C1D4F44AD3DE6171A1CC7FE"><enum>(8)</enum><header>Certain
qualified financial contracts</header>
<subparagraph id="H03EF874D872F497EAA5A53492C16CCB5"><enum>(A)</enum><header>Rights of
parties to contracts</header><text>Subject to subsection (a)(8) and paragraphs
(9) and (10) of this subsection, and notwithstanding any other provision of
this section, any other provision of Federal law, or the law of any State, no
person shall be stayed or prohibited from exercising—</text>
<clause id="H3C9DC021507A4CB49835D728F9B17D8D"><enum>(i)</enum><text>any
right that such person has to cause the termination, liquidation, or
acceleration of any qualified financial contract with a covered financial
company which arises upon the date of appointment of the Corporation as
receiver for such covered financial company or at any time after such
appointment;</text>
</clause><clause id="HCF133F00BB53497D82BE8DB0EAAE998B"><enum>(ii)</enum><text>any
right under any security agreement or arrangement or other credit enhancement
related to one or more qualified financial contracts described in clause (i);
or</text>
</clause><clause id="HB0DB6969428945F6A78C3A1B53493E64"><enum>(iii)</enum><text>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 or
agreements described in clause (i), including any master agreement for such
contracts or agreements.</text>
</clause></subparagraph><subparagraph id="H172D30B4D65D4AF5A893881F9280A5B3"><enum>(B)</enum><header>Applicability of
other provisions</header><text>Subsection (a)(8) shall apply in the case of any
judicial action or proceeding brought against the Corporation as receiver
referred to in subparagraph (A), or the subject covered financial company, by
any party to a contract or agreement described in subparagraph (A)(i) with such
covered financial company.</text>
</subparagraph><subparagraph id="HA8A6F8CA260B4BBAADEC2A6C9345C845"><enum>(C)</enum><header>Certain
transfers not avoidable</header>
<clause id="HDC00A1986A244962A78A345BC4AA3A73"><enum>(i)</enum><header>In
general</header><text>Notwithstanding subsection (a)(11), (a)(12), or (c)(12),
section 5242 of the Revised Statutes of the United States, or any other
provision of Federal or State law relating to the avoidance of preferential or
fraudulent transfers, the Corporation, whether acting as the Corporation or as
receiver for a covered financial company, may not avoid any transfer of money
or other property in connection with any qualified financial contract with a
covered financial company.</text>
</clause><clause id="H3551C71979634E54B224236D018A7A49"><enum>(ii)</enum><header>Exception for
certain transfers</header><text>Clause (i) shall not apply to any transfer of
money or other property in connection with any qualified financial contract
with a covered financial company if the transferee had actual intent to hinder,
delay, or defraud such company, the creditors of such company, or the
Corporation as receiver appointed for such company.</text>
</clause></subparagraph><subparagraph id="HCCF9CFC3B603460BB8C29991C2BCB3B1"><enum>(D)</enum><header>Certain
contracts and agreements defined</header><text>For purposes of this subsection,
the following definitions shall apply:</text>
<clause id="HC5FBD7BCA01B4E5EBDBE3C79652E4812"><enum>(i)</enum><header>Qualified
financial contract</header><text>The term <term>qualified financial
contract</term> 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.</text>
</clause><clause id="H7F535337B6E54504AF8B80E94BE95D38"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="H9DE1985BFE59438681E1CF117BF0D219"><enum>(I)</enum><text>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
<quote>repurchase agreement</quote>, as defined in clause (v));</text>
</subclause><subclause id="H5BB184ECCD8148F3B82D2F3B359F70E9"><enum>(II)</enum><text>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;</text>
</subclause><subclause id="H0763898440D449EEB66F18E105850FCE"><enum>(III)</enum><text>means any option
entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="HD3BD2BAB6B174CF684A95F22E630B464"><enum>(IV)</enum><text>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 an 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)));</text>
</subclause><subclause id="H21B9875C89EC4DBD9F8088B555B2BEA0"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="H55282F1DCD6349F3B77F392EDBD7DEE6"><enum>(VI)</enum><text>means any
extension of credit for the clearance or settlement of securities
transactions;</text>
</subclause><subclause id="H0FA40F2D13C6408F8FF1EF2B0DF98CD2"><enum>(VII)</enum><text>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;</text>
</subclause><subclause id="H8D1FDF30582747BBBE8DEB1FC1D2D469"><enum>(VIII)</enum><text>means any other
agreement or transaction that is similar to any agreement or transaction
referred to in this clause;</text>
</subclause><subclause id="H4AF593A220F34BE0AC0802A949A463A1"><enum>(IX)</enum><text>means any
combination of the agreements or transactions referred to in this
clause;</text>
</subclause><subclause id="HC1932F5067024BC29FFD3C0F294E9D50"><enum>(X)</enum><text>means any option
to enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="HF7AD23176DC747B4B7390173AEC0771E"><enum>(XI)</enum><text>means a master
agreement that provides for an agreement or transaction referred to in any of
subclauses (I) through (X), other than subclause (II), 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
any of subclauses (I) through (X), other than subclause (II); and</text>
</subclause><subclause id="HD2A850A08B814899A2B0247332ADAF17"><enum>(XII)</enum><text>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.</text>
</subclause></clause><clause id="H2B1788CD54F94488AED1D3A4AFEC0B2B"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="H578DDD96A2214500A2F6E070DAE9E795"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="H37DF46B3A6F44257BF5B961EDCE00A09"><enum>(II)</enum><text>with respect to a
foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="H0CC5294CD2DC4DCA887CB1DB125D83C0"><enum>(III)</enum><text>with respect to
a leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="HB76DE4F62CED4BA6956702E6C84D38AC"><enum>(IV)</enum><text>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;</text>
</subclause><subclause id="HFBD47063B1754B72B8F12117D5BC1EC2"><enum>(V)</enum><text>with respect to a
commodity options dealer, a commodity option;</text>
</subclause><subclause id="HF6FB2006A8DE47D0A020B1017C832E10"><enum>(VI)</enum><text>any other
agreement or transaction that is similar to any agreement or transaction
referred to in this clause;</text>
</subclause><subclause id="H6354CDC7809547E8A47F5BF10FDB48CA"><enum>(VII)</enum><text>any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="HC618BA458402484A86428424C1CE14DD"><enum>(VIII)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="HE61B62B8B9EC49A1953FBFE57C8C1E5B"><enum>(IX)</enum><text>a master
agreement that provides for an agreement or transaction referred to in any of
subclauses (I) through (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 any of subclauses (I) through (VIII);
or</text>
</subclause><subclause id="HB87843C7F2454B959F18B939D9EBADE4"><enum>(X)</enum><text>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.</text>
</subclause></clause><clause id="HEA42669263F24DADA2D7967D180B06E3"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="H5FBFB9F4571A43039487293A8767E8F1"><enum>(I)</enum><text>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 that is
more than 2 days after the date on which the contract is entered into,
including a repurchase or reverse repurchase transaction (whether or not such
repurchase or reverse repurchase transaction is a <quote>repurchase
agreement</quote>, as defined in clause (v)), consignment, lease, swap, hedge
transaction, deposit, loan, option, allocated transaction, unallocated
transaction, or any other similar agreement;</text>
</subclause><subclause id="H90F8A53BF0834E99A3589210A40E3939"><enum>(II)</enum><text>any combination
of agreements or transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause id="H3861C63BA2514082875C3A009F559651"><enum>(III)</enum><text>any option to
enter into any agreement or transaction referred to in subclause (I) or
(II);</text>
</subclause><subclause id="H57125B60A9F8461DAFB04747D6749A72"><enum>(IV)</enum><text>a master
agreement that provides for an agreement or transaction referred to in
subclause (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</text>
</subclause><subclause id="HE95F12518B7D487DB1F630B7A21B810C"><enum>(V)</enum><text>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.</text>
</subclause></clause><clause id="HD4A01831F2EA4E71971D6E399604848D"><enum>(v)</enum><header>Repurchase
agreement</header><text>The term <term>repurchase agreement</term> (which
definition also applies to a reverse repurchase agreement)—</text>
<subclause id="HB397AADFC59147489EDCF1E33966D6D9"><enum>(I)</enum><text>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 section 3 of the Securities Exchange Act of 1934), mortgage loans,
interests in mortgage-related securities or mortgage loans, eligible bankers’
acceptances, qualified foreign government securities (which, for purposes of
this clause, 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 Board of Governors), 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;</text>
</subclause><subclause id="HBF4B43CC880749589EA8DC0A6EF663D3"><enum>(II)</enum><text>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;</text>
</subclause><subclause id="H61A4E781BEE94E9DBE86ABB8C88A61EC"><enum>(III)</enum><text>means any
combination of agreements or transactions referred to in subclauses (I) and
(IV);</text>
</subclause><subclause id="HB9AEDED4418746048B702527FD4F5504"><enum>(IV)</enum><text>means any option
to enter into any agreement or transaction referred to in subclause (I) or
(III);</text>
</subclause><subclause id="H1AECE2B089114486AD35FFCCE50BB17A"><enum>(V)</enum><text>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</text>
</subclause><subclause id="HFFC872E7BBFB4A2FA674F0303307E272"><enum>(VI)</enum><text>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.</text>
</subclause></clause><clause id="HAE4A47EB58604E5CA85182C4FD5364C5"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="HBD3B9486F59A4917A63A906454B78767"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="H391875071CF7416B84AFF6D4B6B2F3E4"><enum>(II)</enum><text>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;</text>
</subclause><subclause id="H6D83ECBABDC54FDAA0848D6FADAE9D9F"><enum>(III)</enum><text>any combination
of agreements or transactions referred to in this clause;</text>
</subclause><subclause id="H49AD132F89FE4C19AB9B03F42237B213"><enum>(IV)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="H9CBD7D1D6C5241BA95E78C51249D3528"><enum>(V)</enum><text>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</text>
</subclause><subclause id="H8A172C0D5D64416B925845C7ABC60C1A"><enum>(VI)</enum><text>any security
agreement or arrangement or other credit enhancement related to any agreement
or transaction referred to in any of subclauses (I) through (V), including any
guarantee or reimbursement obligation in connection with any agreement or
transaction referred to in any such clause.</text>
</subclause></clause><clause id="HBBA189B988C24525B16D3F0213757F27"><enum>(vii)</enum><header>Definitions
relating to default</header><text>When used in this paragraph and paragraphs
(9) and (10)—</text>
<subclause id="HB39688081A56452E989ECD85F2BA273B"><enum>(I)</enum><text>the term
<term>default</term> means, with respect to a covered financial company, any
adjudication or other official decision by any court of competent jurisdiction,
or other public authority pursuant to which the Corporation has been appointed
receiver; and</text>
</subclause><subclause id="H3677DBAB3B534E3F8BA59AD3C9985EC2"><enum>(II)</enum><text>the term <term>in
danger of default</term> means a covered financial company with respect to
which the Corporation or appropriate State authority has determined
that—</text>
<item id="HC52F38EF690F4E3D9F3693ACEB76F2EC"><enum>(aa)</enum><text>in
the opinion of the Corporation or such authority—</text>
<subitem id="H65B94E0CAACE4064A4203CFA7DF929AD"><enum>(AA)</enum><text>the covered
financial company is not likely to be able to pay its obligations in the normal
course of business; and</text>
</subitem><subitem id="H9E6DA96366CD4B5496737D9A12F90848"><enum>(BB)</enum><text>there is no
reasonable prospect that the covered financial company will be able to pay such
obligations without Federal assistance; or</text>
</subitem></item><item id="H099A342DBD8C4951B7BB8E16D4EFB97C"><enum>(bb)</enum><text>in
the opinion of the Corporation or such authority—</text>
<subitem id="H5233AD625D174B97B1C74FA249AD16B8"><enum>(AA)</enum><text>the covered
financial company has incurred or is likely to incur losses that will deplete
all or substantially all of its capital; and</text>
</subitem><subitem id="HF94EA28F1E7447F9B2DB46DDFC39D635"><enum>(BB)</enum><text>there is no
reasonable prospect that the capital will be replenished without Federal
assistance.</text>
</subitem></item></subclause></clause><clause id="H3098D7F24C26441F9550ECB29C97B809"><enum>(viii)</enum><header>Treatment of
master agreement as one agreement</header><text>Any master agreement for any
contract or agreement described in any of clauses (i) through (vi) (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 contact. 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.</text>
</clause><clause id="H72488C09FC61442E8728296E46631464"><enum>(ix)</enum><header>Transfer</header><text>The
term <term>transfer</term> 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 equity of redemption of the covered financial
company.</text>
</clause><clause id="HF3E98F3057EF4148BEE186AEFA6AF59C"><enum>(x)</enum><header>Person</header><text>The
term <term>person</term> includes any governmental entity in addition to any
entity included in the definition of such term in section 1, title 1, United
States Code.</text>
</clause></subparagraph><subparagraph id="HB5D200C79E714D04A796C10F9E9D59D2"><enum>(E)</enum><header>Clarification</header><text>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 or to disaffirm or repudiate any such contract in accordance
with this subsection.</text>
</subparagraph><subparagraph id="H49C28943913E464EB924AFC0EEDCC638"><enum>(F)</enum><header>Walkaway clauses
not effective</header>
<clause id="HFA3DECE358B047478452191044141BFD"><enum>(i)</enum><header>In
general</header><text>Notwithstanding the provisions of subparagraph (A) of
this paragraph 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 a covered financial company in
default.</text>
</clause><clause id="HCC36467735774BFDA1C8CAEDE293B88E"><enum>(ii)</enum><header>Limited
suspension of certain obligations</header><text>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 at which the Corporation is appointed
as receiver until the earlier of—</text>
<subclause id="H3FB285D299B74EBE84543BAE0C47FA9F"><enum>(I)</enum><text>the time at which
such party receives notice that such contract has been transferred pursuant to
paragraph (10)(A); or</text>
</subclause><subclause id="H521EE7CD84454CD8A685797F3B96882A"><enum>(II)</enum><text>5:00 p.m.
(eastern time) on the business day following the date of the appointment of the
Corporation as receiver.</text>
</subclause></clause><clause id="H36CD2AF8603A49AFA3483A11EA0DFABE"><enum>(iii)</enum><header>Walkaway
clause defined</header><text>For purposes of this subparagraph, the term
<term>walkaway clause</term> 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 the status of such party as a
nondefaulting party in connection with the insolvency of a covered financial
company that is a party to the contract or the appointment of or the exercise
of rights or powers by the Corporation as receiver for such covered financial
company, and not as a result of the exercise by a party of any right to offset,
setoff, or net obligations that exist under the contract, any other contract
between those parties, or applicable law.</text>
</clause></subparagraph><subparagraph id="H73BA1ED34B754172BF23476E85427ACF"><enum>(G)</enum><header>Certain
obligations to clearing organizations</header><text>In the event that the
Corporation has been appointed as receiver for a covered financial company
which is a party to any qualified financial contract cleared by or subject to
the rules of a clearing organization (as defined in paragraph (9)(D)), the
receiver shall use its best efforts to meet all margin, collateral, and
settlement obligations of the covered financial company that arise under
qualified financial contracts (other than any margin, collateral, or settlement
obligation that is not enforceable against the receiver under paragraph
(8)(F)(i) or paragraph (10)(B)), as required by the rules of the clearing
organization when due. Notwithstanding any other provision of this title, if
the receiver fails to satisfy any such margin, collateral, or settlement
obligations under the rules of the clearing organization, the clearing
organization shall have the immediate right to exercise, and shall not be
stayed from exercising, all of its rights and remedies under its rules and
applicable law with respect to any qualified financial contract of the covered
financial company, including, without limitation, the right to liquidate all
positions and collateral of such covered financial company under the company's
qualified financial contracts, and suspend or cease to act for such covered
financial company, all in accordance with the rules of the clearing
organization.</text>
</subparagraph><subparagraph commented="no" id="H6683BC0DE3DB47A5B8F68661643D1A15"><enum>(H)</enum><header>Recordkeeping</header>
<clause commented="no" id="H79BF53A097854B1BA988F378B354389D"><enum>(i)</enum><header>Joint
rulemaking</header><text>The Federal primary financial regulatory agencies
shall jointly prescribe regulations requiring that financial companies maintain
such records with respect to qualified financial contracts (including market
valuations) that the Federal primary financial regulatory agencies determine to
be necessary or appropriate in order to assist the Corporation as receiver for
a covered financial company in being able to exercise its rights and fulfill
its obligations under this paragraph or paragraph (9) or (10).</text>
</clause><clause commented="no" id="H9411821AC116407DAF153B5219BDCBB1"><enum>(ii)</enum><header>Time
frame</header><text>The Federal primary financial regulatory agencies shall
prescribe joint final or interim final regulations not later than 24 months
after the date of enactment of this Act.</text>
</clause><clause commented="no" id="H0ED099F74DFC417292C1415FBA15BAFE"><enum>(iii)</enum><header>Back-Up
rulemaking authority</header><text>If the Federal primary financial regulatory
agencies do not prescribe joint final or interim final regulations within the
time frame in clause (ii), the Chairperson of the Council shall prescribe, in
consultation with the Corporation, the regulations required by clause
(i).</text>
</clause><clause commented="no" id="HADCDE1FAAF17478EA676C2E19FC99028"><enum>(iv)</enum><header>Categorization
and tiering</header><text>The joint regulations prescribed under clause (i)
shall, as appropriate, differentiate among financial companies by taking into
consideration their size, risk, complexity, leverage, frequency and dollar
amount of qualified financial contracts, interconnectedness to the financial
system, and any other factors deemed appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="H84C06CBCCA574647BB505B1E89DBFF9A"><enum>(9)</enum><header>Transfer of
qualified financial contracts</header>
<subparagraph id="H7A645AFA3A104CBC98B81A6ED5C1774A"><enum>(A)</enum><header>In
general</header><text>In making any transfer of assets or liabilities of a
covered financial company in default, which includes any qualified financial
contract, the Corporation as receiver for such covered financial company shall
either—</text>
<clause id="HDD9BA7ABBEEF46059C7C46D7128A364B"><enum>(i)</enum><text>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—</text>
<subclause id="HBC3CBD3C04E24FA9A53DBE2E17D04839"><enum>(I)</enum><text>all qualified
financial contracts between any person or any affiliate of such person and the
covered financial company in default;</text>
</subclause><subclause id="HDECC71F0AA6448B3B7EACD86FF81A901"><enum>(II)</enum><text>all claims of
such person or any affiliate of such person against such covered financial
company 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 company);</text>
</subclause><subclause id="H0C9DD9DF09EB4D329506D291DAEB6ED5"><enum>(III)</enum><text>all claims of
such covered financial company against such person or any affiliate of such
person under any such contract; and</text>
</subclause><subclause id="H7E8448FD58BF4AB9899D994E61421BE4"><enum>(IV)</enum><text>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</text>
</subclause></clause><clause id="H9CFCBB86BF71450DB4BD9ADD15226E16"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="HE1CFE1499F9E4EF29751FABD381B7846"><enum>(B)</enum><header>Transfer to
foreign bank, financial institution, or branch or agency
thereof</header><text>In transferring any qualified financial contracts and
related claims and property under subparagraph (A)(i), the Corporation as
receiver for the covered financial company 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.</text>
</subparagraph><subparagraph id="H47AF6937B7DC4A8B9244B4D6E0931FC7"><enum>(C)</enum><header>Transfer of
contracts subject to the rules of a clearing organization</header><text>In the
event that the Corporation as receiver for a financial institution transfers
any qualified financial contract and related claims, property, or credit
enhancement 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.</text>
</subparagraph><subparagraph id="HDAA7F84483FF4BA19207B727BB46FEB6"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph—</text>
<clause id="H99AEB0797C244D1493BFA569FCFABF68"><enum>(i)</enum><text>the
term <term>financial institution</term> means a broker or dealer, a depository
institution, a futures commission merchant, a bridge financial company, or any
other institution determined by the Corporation, by regulation, to be a
financial institution; and</text>
</clause><clause id="H1ACCD534E89443ACB9E45800D4AF3115"><enum>(ii)</enum><text>the
term <term>clearing organization</term> has the same meaning as in section 402
of the Federal Deposit Insurance Corporation Improvement Act of 1991.</text>
</clause></subparagraph></paragraph><paragraph id="H9ED4170A755D4713B51448AF20E99372"><enum>(10)</enum><header>Notification of
transfer</header>
<subparagraph id="H7571FF18FC464810AB2258B2B6E23687"><enum>(A)</enum><header>In
general</header>
<clause id="H27EAF2D7A1F9448F9B179F58B7DA896A"><enum>(i)</enum><header>Notice</header><text>The
Corporation shall provide notice in accordance with clause (ii), if—</text>
<subclause id="HD5B0B8A5E27341EBB6A108D35E9C742A"><enum>(I)</enum><text>the Corporation as
receiver for a covered financial company in default or in danger of default
transfers any assets or liabilities of the covered financial company;
and</text>
</subclause><subclause id="HC2C1DE0A57254811A83B310A29CE4D66"><enum>(II)</enum><text>the transfer
includes any qualified financial contract.</text>
</subclause></clause><clause id="HA5E114C313A440CA9CB22ED05D989030"><enum>(ii)</enum><header>Timing</header><text>The
Corporation as receiver for a covered financial company shall notify any person
who is a party to any contract described in clause (i) of such transfer not
later than 5:00 p.m. (eastern time) on the business day following the date of
the appointment of the Corporation as receiver.</text>
</clause></subparagraph><subparagraph id="HF1A8722B74EA415A9420401FA595139B"><enum>(B)</enum><header>Certain rights
not enforceable</header>
<clause id="H2D8F54FB1B964AFCA99093A0AFDF6B9B"><enum>(i)</enum><header>Receivership</header><text>A
person who is a party to a qualified financial contract with a covered
financial company may not exercise any right that such person has to terminate,
liquidate, or net such contract under paragraph (8)(A) solely by reason of or
incidental to the appointment under this section of the Corporation as receiver
for the covered financial company (or the insolvency or financial condition of
the covered financial company for which the Corporation has been appointed as
receiver)—</text>
<subclause id="H83F1DB3736DF4BBF8FE90DB0E7EE0DAC"><enum>(I)</enum><text>until 5:00 p.m.
(eastern time) on the business day following the date of the appointment;
or</text>
</subclause><subclause id="H262C3771A8DC4CAE8A89E1EFDD31E921"><enum>(II)</enum><text>after the person
has received notice that the contract has been transferred pursuant to
paragraph (9)(A).</text>
</subclause></clause><clause id="H675D8F2AF2E846C4B51A6AA7C0B4CCD3"><enum>(ii)</enum><header>Notice</header><text>For
purposes of this paragraph, the Corporation as receiver for a covered financial
company shall be deemed to have notified a person who is a party to a qualified
financial contract with such covered financial company, if the Corporation has
taken steps reasonably calculated to provide notice to such person by the time
specified in subparagraph (A).</text>
</clause></subparagraph><subparagraph id="HB3F01D37C29E4CC6A20C8A1A19957638"><enum>(C)</enum><header>Treatment of
bridge financial company</header><text>For purposes of paragraph (9), a bridge
financial company 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.</text>
</subparagraph><subparagraph id="H849697517A5C452EB16A8EA0BAF01A33"><enum>(D)</enum><header>Business day
defined</header><text>For purposes of this paragraph, the term <term>business
day</term> 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.</text>
</subparagraph></paragraph><paragraph id="H9B3C97ECA48046B2BDE4A432CF1EA883"><enum>(11)</enum><header>Disaffirmance
or repudiation of qualified financial contracts</header><text>In exercising the
rights of disaffirmance or repudiation of the Corporation as receiver with
respect to any qualified financial contract to which a covered financial
company is a party, the Corporation shall either—</text>
<subparagraph id="HC33551E4FEDE46E4B6A3F3FBB6F21EFE"><enum>(A)</enum><text>disaffirm or
repudiate all qualified financial contracts between—</text>
<clause id="H39C8FC88C39D40D09FEB32EB034E943E"><enum>(i)</enum><text>any
person or any affiliate of such person; and</text>
</clause><clause id="HCABE50AB3C034E299C6FC0A407348EF6"><enum>(ii)</enum><text>the
covered financial company in default; or</text>
</clause></subparagraph><subparagraph id="HEBDED838FF294D198D33E192DD290101"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="HA191E604F71C4701A38FD9E2EFF3C0CE"><enum>(12)</enum><header>Certain
security and customer interests not avoidable</header><text>No provision of
this subsection shall be construed as permitting the avoidance of any—</text>
<subparagraph id="HE4A28FE8341B47AEA38E05238775ED0B"><enum>(A)</enum><text>legally
enforceable or perfected security interest in any of the assets of any covered
financial company, except in accordance with subsection (a)(11); or</text>
</subparagraph><subparagraph id="HD5FEE087C4AB438EB05CA4721CAAC988"><enum>(B)</enum><text>legally
enforceable interest in customer property, security entitlements in respect of
assets or property held by the covered financial company for any security
entitlement holder.</text>
</subparagraph></paragraph><paragraph id="HA031ADECC12E4C06ACE23F6B67D2C9FA"><enum>(13)</enum><header>Authority to
enforce contracts</header>
<subparagraph id="HB88B7D50BDED4167A71A2DB5ABE50B51"><enum>(A)</enum><header>In
general</header><text>The Corporation, as receiver for a covered financial
company, may enforce any contract, other than a liability insurance contract of
a director or officer, a financial institution bond entered into by the covered
financial company, notwithstanding any provision of the contract providing for
termination, default, acceleration, or exercise of rights upon, or solely by
reason of, insolvency, the appointment of or the exercise of rights or powers
by the Corporation as receiver, the filing of the petition pursuant to section
202(a)(1), or the issuance of the recommendations or determination, or any
actions or events occurring in connection therewith or as a result thereof,
pursuant to section 203.</text>
</subparagraph><subparagraph id="HA25ADFC598A34F31B6C930725092D60E"><enum>(B)</enum><header>Certain rights
not affected</header><text>No provision of this paragraph may be construed as
impairing or affecting any right of the Corporation as receiver to enforce or
recover under a liability insurance contract of a director or officer or
financial institution bond under other applicable law.</text>
</subparagraph><subparagraph id="HE8C980F17DEB4962BF38094E9FEF09E7"><enum>(C)</enum><header>Consent
requirement and ipso facto clauses</header>
<clause id="H2F0C138EDE074A83A6B25CD33AA594D8"><enum>(i)</enum><header>In
general</header><text>Except as otherwise provided by this section, no person
may exercise any right or power to terminate, accelerate, or declare a default
under any contract to which the covered financial company is a party (and no
provision in any such contract providing for such default, termination, or
acceleration shall be enforceable), or to obtain possession of or exercise
control over any property of the covered financial company or affect any
contractual rights of the covered financial company, without the consent of the
Corporation as receiver for the covered financial company during the 90 day
period beginning from the appointment of the Corporation as receiver.</text>
</clause><clause id="H66A75EDE411E45448B92B8D458B13890"><enum>(ii)</enum><header>Exceptions</header><text>No
provision of this subparagraph shall apply to a director or officer liability
insurance contract or a financial 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 Corporation as receiver
to fail to comply with otherwise enforceable provisions of such
contract.</text>
</clause></subparagraph><subparagraph id="HD37561E6914B4E148F1B52C98B2D4FE3"><enum>(D)</enum><header>Contracts to
extend credit</header><text>Notwithstanding any other provision in this title,
if the Corporation as receiver enforces any contract to extend credit to the
covered financial company or bridge financial company, any valid and
enforceable obligation to repay such debt shall be paid by the Corporation as
receiver, as an administrative expense of the receivership.</text>
</subparagraph></paragraph><paragraph id="H511739989A6D41199BCA8C52D3F9AA67"><enum>(14)</enum><header>Exception for
Federal reserve banks and corporation security interest</header><text>No
provision of this subsection shall apply with respect to—</text>
<subparagraph id="H18F381B64F8744539BE552702CD9DDFA"><enum>(A)</enum><text>any extension of
credit from any Federal reserve bank or the Corporation to any covered
financial company; or</text>
</subparagraph><subparagraph id="H6A38B946C68F4A05837AF9E12770046C"><enum>(B)</enum><text>any security
interest in the assets of the covered financial company securing any such
extension of credit.</text>
</subparagraph></paragraph><paragraph id="H315FEB78CAA745A99A2C83750E3B53C8"><enum>(15)</enum><header>Savings
clause</header><text>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.</text>
</paragraph><paragraph id="HEB720E6F32154F9695F33B5CD7A7D186"><enum>(16)</enum><header>Enforcement of
contracts guaranteed by the covered financial company</header>
<subparagraph id="H9C435E927C05494DBF59CF268EFAB591"><enum>(A)</enum><header>In
General</header><text>The Corporation, as receiver for a covered financial
company or as receiver for a subsidiary of a covered financial company
(including an insured depository institution) shall have the power to enforce
contracts of subsidiaries or affiliates of the covered financial company, the
obligations under which are guaranteed or otherwise supported by or linked to
the covered financial company, notwithstanding any contractual right to cause
the termination, liquidation, or acceleration of such contracts based solely on
the insolvency, financial condition, or receivership of the covered financial
company, if—</text>
<clause id="H5A10B686CBCF48B2B879FA1F31D1425C"><enum>(i)</enum><text>such
guaranty or other support and all related assets and liabilities are
transferred to and assumed by a bridge financial company or a third party
(other than a third party 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) within the same period of
time as the Corporation is entitled to transfer the qualified financial
contracts of such covered financial company; or</text>
</clause><clause id="HB8D03DC754884958B04497B7F95F2364"><enum>(ii)</enum><text>the
Corporation, as receiver, otherwise provides adequate protection with respect
to such obligations.</text>
</clause></subparagraph><subparagraph commented="no" id="H0A1B9DD1CA0D4F78B78ABBC8531137D5"><enum>(B)</enum><header>Rule of
construction</header><text>For purposes of this paragraph, a bridge financial
company shall not be considered to be a third party 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.</text>
</subparagraph></paragraph></subsection><subsection id="HB06D7A048D4E4531AC94A412D472A1C9"><enum>(d)</enum><header>Valuation of
claims in default</header>
<paragraph id="HE8C5EAC9BC1C4F38AC1148EAC3965540"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal law or the
law of any State, and regardless of the method utilized by the Corporation for
a covered financial company, including transactions authorized under subsection
(h), this subsection shall govern the rights of the creditors of any such
covered financial company.</text>
</paragraph><paragraph id="H0518F81A7A384EE3854ADED7FDCCE43C"><enum>(2)</enum><header>Maximum
liability</header><text>The maximum liability of the Corporation, acting as
receiver for a covered financial company or in any other capacity, to any
person having a claim against the Corporation as receiver or the covered
financial company for which the Corporation is appointed shall equal the amount
that such claimant would have received if—</text>
<subparagraph id="HF4F9E9467CCE493D8C6E9F2E1CBD7EA6"><enum>(A)</enum><text>the Corporation
had not been appointed receiver with respect to the covered financial company;
and</text>
</subparagraph><subparagraph id="H60346506FE4B4BBC950514E79355EFAF"><enum>(B)</enum><text>the covered
financial company had been liquidated under chapter 7 of the Bankruptcy Code,
or any similar provision of State insolvency law applicable to the covered
financial company.</text>
</subparagraph></paragraph><paragraph id="H1AC9490971E9467380BD68153CAA343E"><enum>(3)</enum><header>Special
provision for orderly liquidation by sipc</header><text>The maximum liability
of the Corporation, acting as receiver or in its corporate capacity for any
covered broker or dealer to any customer of such covered broker or dealer, with
respect to customer property of such customer, shall be—</text>
<subparagraph id="HBDDF53A61200440AB71D4ED10AB13709"><enum>(A)</enum><text>equal to the
amount that such customer would have received with respect to such customer
property in a case initiated by SIPC under the Securities Investor Protection
Act of 1970 (15 U.S.C. 78aaa et seq.); and</text>
</subparagraph><subparagraph id="H51AC91BD8C1B4D9FBDFDADFF1B4D7770"><enum>(B)</enum><text>determined as of
the close of business on the date on which the Corporation is appointed as
receiver.</text>
</subparagraph></paragraph><paragraph id="H20A2409B87A54EF68E7E7E46C03FBB86"><enum>(4)</enum><header>Additional
payments authorized</header>
<subparagraph id="HD02C28D07F9649A5B6A40120900DD914"><enum>(A)</enum><header>In
general</header><text>Subject to subsection (o)(1)(D)(i), the Corporation, with
the approval of the Secretary, may make additional payments or credit
additional amounts to or with respect to or for the account of any claimant or
category of claimants of the covered financial company, if the Corporation
determines that such payments or credits are necessary or appropriate to
minimize losses to the Corporation as receiver from the orderly liquidation of
the covered financial company under this section.</text>
</subparagraph><subparagraph id="H5C49BC81BD55493E8CEC2DCE06B6CE6B"><enum>(B)</enum><header>Limitations</header>
<clause id="H158B66055E2B4BDB9FA72637E14219F0"><enum>(i)</enum><header>Prohibition</header><text>The
Corporation shall not make any payments or credit amounts to any claimant or
category of claimants that would result in any claimant receiving more than the
face value amount of any claim that is proven to the satisfaction of the
Corporation.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1ADDF72197B649CC86332CEF774130F8"><enum>(ii)</enum><header>No
obligation</header><text>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 payment under subparagraph (A) or
credited any amount described in subparagraph (A) 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.</text>
</clause></subparagraph><subparagraph id="H0472A9BAE7534DDAAFEDF71EE2890DC6"><enum>(C)</enum><header>Manner of
payment</header><text>The Corporation may make payments or credit amounts under
subparagraph (A) directly to the claimants or may make such payments or credit
such amounts to a company other than a covered financial company or a bridge
financial company established with respect thereto in order to induce such
other company to accept liability for such claims.</text>
</subparagraph></paragraph></subsection><subsection id="HCB6755C23D8C4B6E8FBE08B85029BD3A"><enum>(e)</enum><header>Limitation on
court action</header><text>Except as provided in this title, no court may take
any action to restrain or affect the exercise of powers or functions of the
receiver hereunder, and any remedy against the Corporation or receiver shall be
limited to money damages determined in accordance with this title.</text>
</subsection><subsection id="H101B96A5146449A297E00A8C66B96EDF"><enum>(f)</enum><header>Liability of
directors and officers</header>
<paragraph id="H36988C22E0CD4535A7D15665069C019F"><enum>(1)</enum><header>In
general</header><text>A director or officer of a covered financial company may
be held personally liable for monetary damages in any civil action described in
paragraph (2) 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—</text>
<subparagraph id="H8C5A7C56BC424A87B70CF57698B743E1"><enum>(A)</enum><text>acting as receiver
for such covered financial company;</text>
</subparagraph><subparagraph id="HE0041642A7084639A6E1B1A1875FAE68"><enum>(B)</enum><text>acting based upon
a suit, claim, or cause of action purchased from, assigned by, or otherwise
conveyed by the Corporation as receiver; or</text>
</subparagraph><subparagraph id="H15C9AE7640D14EF2983F221F36877FF4"><enum>(C)</enum><text>acting based upon
a suit, claim, or cause of action purchased from, assigned by, or otherwise
conveyed in whole or in part by a covered financial company or its affiliate in
connection with assistance provided under this title.</text>
</subparagraph></paragraph><paragraph id="HD2A2FE0C9A9748629A3D96999183A164"><enum>(2)</enum><header>Actions
covered</header><text>Paragraph (1) shall apply with respect to actions 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.</text>
</paragraph><paragraph id="H77F03DCBAFD840D68CB1D10555CB76EF"><enum>(3)</enum><header>Savings
clause</header><text>Nothing in this subsection shall impair or affect any
right of the Corporation under other applicable law.</text>
</paragraph></subsection><subsection id="H4B31F3E41552499BA2ABD0A65175CF57"><enum>(g)</enum><header>Damages</header><text>In
any proceeding related to any claim against a director, officer, employee,
agent, attorney, accountant, or appraiser of a covered financial company, or
any other party employed by or providing services to a covered financial
company, recoverable damages determined to result from the improvident or
otherwise improper use or investment of any assets of the covered financial
company shall include principal losses and appropriate interest.</text>
</subsection><subsection id="HF9FD0C3B100C4F4C8C69EC1E4223A6CD"><enum>(h)</enum><header>Bridge financial
companies</header>
<paragraph id="H5BBAB7E79DA148809E2101D24A5829DD"><enum>(1)</enum><header>Organization</header>
<subparagraph id="HBF71A743E56A429493CA5D1103636AC2"><enum>(A)</enum><header>Purpose</header><text>The
Corporation, as receiver for one or more covered financial companies or in
anticipation of being appointed receiver for one or more covered financial
companies, may organize one or more bridge financial companies in accordance
with this subsection.</text>
</subparagraph><subparagraph id="H09BB9D6E5BDE4E6095DB19FC375CF492"><enum>(B)</enum><header>Authorities</header><text>Upon
the creation of a bridge financial company under subparagraph (A) with respect
to a covered financial company, such bridge financial company may—</text>
<clause id="HA790FCCD0914448080710725F3CF2670"><enum>(i)</enum><text>assume such
liabilities (including liabilities associated with any trust or custody
business, but excluding any liabilities that count as regulatory capital) of
such covered financial company as the Corporation may, in its discretion,
determine to be appropriate;</text>
</clause><clause id="H8ECB8532833C494DB9C5EF77F47EA67D"><enum>(ii)</enum><text>purchase such
assets (including assets associated with any trust or custody business) of such
covered financial company as the Corporation may, in its discretion, determine
to be appropriate; and</text>
</clause><clause id="H56279EC927AF40D6A05070066A5D72C8"><enum>(iii)</enum><text>perform any
other temporary function which the Corporation may, in its discretion,
prescribe in accordance with this section.</text>
</clause></subparagraph></paragraph><paragraph id="H43D68A20CDC6419C83DF517E0C25B74F"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="HE3A3326016D54EC78CC4662248B09A5E"><enum>(A)</enum><header>Establishment</header><text>Except
as provided in subparagraph (H), where the covered financial company is a
covered broker or dealer, the Corporation, as receiver for a covered financial
company, may grant a Federal charter to and approve articles of association for
one or more bridge financial company or companies, with respect to such covered
financial company which shall, by operation of law and immediately upon
issuance of its charter and approval of its articles of association, be
established and operate in accordance with, and subject to, such charter,
articles, and this section.</text>
</subparagraph><subparagraph id="H91965B058D2148CBB3A2A5C868FD4F72"><enum>(B)</enum><header>Management</header><text>Upon
its establishment, a bridge financial company shall be under the management of
a board of directors appointed by the Corporation.</text>
</subparagraph><subparagraph id="H52241B21AD904593B75D728FE1CC7EE8"><enum>(C)</enum><header>Articles of
association</header><text>The articles of association and organization
certificate of a bridge financial company shall have such terms as the
Corporation may provide, and shall be executed by such representatives as the
Corporation may designate.</text>
</subparagraph><subparagraph id="H04B24F97C19B4CEBBA69A93758213433"><enum>(D)</enum><header>Terms of
charter; rights and privileges</header><text>Subject to and in accordance with
the provisions of this subsection, the Corporation shall—</text>
<clause id="H7E98D78634CB45CAAC4EF3523035419C"><enum>(i)</enum><text>establish the
terms of the charter of a bridge financial company and the rights, powers,
authorities, and privileges of a bridge financial company granted by the
charter or as an incident thereto; and</text>
</clause><clause id="HA1FA5AE0C955455BBDC1A6541E8A8581"><enum>(ii)</enum><text>provide for, and
establish the terms and conditions governing, the management (including the
bylaws and the number of directors of the board of directors) and operations of
the bridge financial company.</text>
</clause></subparagraph><subparagraph id="HAC5766E0969442A6858FA6F11FB6337B"><enum>(E)</enum><header>Transfer of
rights and privileges of covered financial company</header>
<clause id="H91148EE39CD444A893B061A0EEE533B5"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, the Corporation may provide for a bridge financial company to succeed to
and assume any rights, powers, authorities, or privileges of the covered
financial company with respect to which the bridge financial company was
established and, upon such determination by the Corporation, the bridge
financial company shall immediately and by operation of law succeed to and
assume such rights, powers, authorities, and privileges.</text>
</clause><clause id="HD136846FE4894A99AB5B2C9B5FA5F66E"><enum>(ii)</enum><header>Effective
without approval</header><text>Any succession to or assumption by a bridge
financial company of rights, powers, authorities, or privileges of a covered
financial company under clause (i) or otherwise shall be effective without any
further approval under Federal or State law, assignment, or consent with
respect thereto.</text>
</clause></subparagraph><subparagraph id="HEACEE83068E9402FB864496F1A08BC67"><enum>(F)</enum><header>Corporate
governance and election and designation of body of law</header><text>To the
extent permitted by the Corporation and consistent with this section and any
rules, regulations, or directives issued by the Corporation under this section,
a bridge financial company may elect to follow the corporate governance
practices and procedures that are applicable to a corporation incorporated
under the general corporation law of the State of Delaware, or the State of
incorporation or organization of the covered financial company with respect to
which the bridge financial company was established, as such law may be amended
from time to time.</text>
</subparagraph><subparagraph id="HFD7B768821C64277B1085EF95250E117"><enum>(G)</enum><header>Capital</header>
<clause id="H9FD988E2F7644F90ADE1CC4B0BE602CD"><enum>(i)</enum><header>Capital not
required</header><text>Notwithstanding any other provision of Federal or State
law, a bridge financial company may, if permitted by the Corporation, operate
without any capital or surplus, or with such capital or surplus as the
Corporation may in its discretion determine to be appropriate.</text>
</clause><clause id="HB67B629E46BB4DE6A73D5444C74E5224"><enum>(ii)</enum><header>No contribution
by the corporation required</header><text>The Corporation is not required to
pay capital into a bridge financial company or to issue any capital stock on
behalf of a bridge financial company established under this subsection.</text>
</clause><clause id="HF0B19B8C738B45EA9CA6336ED082BDEF"><enum>(iii)</enum><header>Authority</header><text>If
the Corporation determines that such action is advisable, the Corporation may
cause capital stock or other securities of a bridge financial company
established with respect to a covered financial company to be issued and
offered for sale in such amounts and on such terms and conditions as the
Corporation may, in its discretion, determine.</text>
</clause><clause id="HB2AECCDA2D2044DC81909B450C9ACAD8"><enum>(iv)</enum><header>Operating funds
in lieu of capital and implementation plan</header><text>Upon the organization
of a bridge financial company, and thereafter as the Corporation may, in its
discretion, determine to be necessary or advisable, the Corporation may make
available to the bridge financial company, subject to the plan described in
subsection (n)(9), funds for the operation of the bridge financial company in
lieu of capital.</text>
</clause></subparagraph><subparagraph id="HC7E277FBBBB54978BEC797FCD786711C"><enum>(H)</enum><header>Bridge brokers
or dealers</header>
<clause id="HACBFE43B21934CA4A9750A6B61FDF294"><enum>(i)</enum><header>In
general</header><text>The Corporation, as receiver for a covered broker or
dealer, may approve articles of association for one or more bridge financial
companies with respect to such covered broker or dealer, which bridge financial
company or companies shall, by operation of law and immediately upon approval
of its articles of association—</text>
<subclause id="HC237ECFD87034ACEB8059F11D439767B"><enum>(I)</enum><text>be established and
deemed registered with the Commission under the Securities Exchange Act of 1934
and a member of SIPC;</text>
</subclause><subclause id="H51A67369E089405E87402BCDDCB65DB5"><enum>(II)</enum><text>operate in
accordance with such articles and this section; and</text>
</subclause><subclause id="H3917EA488C7C40D5890F55E94E21416A"><enum>(III)</enum><text>succeed to any
and all registrations and memberships of the covered financial company with or
in any self-regulatory organizations.</text>
</subclause></clause><clause id="HADD9F9DCAB944946827877F8A097F2AD"><enum>(ii)</enum><header>Other
requirements</header><text>Except as provided in clause (i), and
notwithstanding any other provision of this section, the bridge financial
company shall be subject to the Federal securities laws and all requirements
with respect to being a member of a self-regulatory organization, unless
exempted from any such requirements by the Commission, as is necessary or
appropriate in the public interest or for the protection of investors.</text>
</clause><clause id="H1A897FF921494BEF9C9DB6667A34818E"><enum>(iii)</enum><header>Treatment of
customers</header><text>Except as otherwise provided by this title, any
customer of the covered broker or dealer whose account is transferred to a
bridge financial company shall have all the rights, privileges, and protections
under section 205(f) and under the Securities Investor Protection Act of 1970
(15 U.S.C. 78aaa et seq.), that such customer would have had if the account
were not transferred from the covered financial company under this
subparagraph.</text>
</clause><clause id="H3C19EB62686B44779839FFC64A50CF15"><enum>(iv)</enum><header>Operation of
bridge brokers or dealers</header><text>Notwithstanding any other provision of
this title, the Corporation shall not operate any bridge financial company
created by the Corporation under this title with respect to a covered broker or
dealer in such a manner as to adversely affect the ability of customers to
promptly access their customer property in accordance with applicable
law.</text>
</clause></subparagraph></paragraph><paragraph id="H7BA3FC6FE1B141DAAA468B4CDA8B8E10"><enum>(3)</enum><header>Interests in and
assets and obligations of covered financial
company</header><text>Notwithstanding paragraph (1) or (2) or any other
provision of law—</text>
<subparagraph id="H1CC740A94F354D09942251B30CF3E29B"><enum>(A)</enum><text>a bridge financial
company shall assume, acquire, or succeed to the assets or liabilities of a
covered financial company (including the assets or liabilities associated with
any trust or custody business) only to the extent that such assets or
liabilities are transferred by the Corporation to the bridge financial company
in accordance with, and subject to the restrictions set forth in, paragraph
(1)(B); and</text>
</subparagraph><subparagraph id="HE7A0A30E7BD24007B323095F57BE8076"><enum>(B)</enum><text>a bridge financial
company shall not assume, acquire, or succeed to any obligation that a covered
financial company for which the Corporation has been appointed receiver may
have to any shareholder, member, general partner, limited partner, or other
person with an interest in the equity of the covered financial company that
arises as a result of the status of that person having an equity claim in the
covered financial company.</text>
</subparagraph></paragraph><paragraph id="HD13A4ED48E7C4C3CA159AC83EB14D831"><enum>(4)</enum><header>Bridge financial
company treated as being in default for certain purposes</header><text>A bridge
financial company shall be treated as a covered financial company in default at
such times and for such purposes as the Corporation may, in its discretion,
determine.</text>
</paragraph><paragraph id="HC2236A05B62248B99FA51E0A91267B69"><enum>(5)</enum><header>Transfer of
assets and liabilities</header>
<subparagraph id="H0772B940922C4BB7ABDDDCEF5DE400C7"><enum>(A)</enum><header>Authority of
corporation</header><text>The Corporation, as receiver for a covered financial
company, may transfer any assets and liabilities of a covered financial company
(including any assets or liabilities associated with any trust or custody
business) to one or more bridge financial companies, in accordance with and
subject to the restrictions of paragraph (1).</text>
</subparagraph><subparagraph id="H18C2DD53CD4C417180F253EEA43A023E"><enum>(B)</enum><header>Subsequent
transfers</header><text>At any time after the establishment of a bridge
financial company with respect to a covered financial company, the Corporation,
as receiver, may transfer any assets and liabilities of such covered financial
company as the Corporation may, in its discretion, determine to be appropriate
in accordance with and subject to the restrictions of paragraph (1).</text>
</subparagraph><subparagraph id="HED20FA21458648C0A55A9CA8CE540703"><enum>(C)</enum><header>Treatment of
trust or custody business</header><text>For purposes of this paragraph, the
trust or custody business, including fiduciary appointments, held by any
covered financial company is included among its assets and liabilities.</text>
</subparagraph><subparagraph id="H507C5EF4501545459BF9CDC048CBE19D"><enum>(D)</enum><header>Effective
without approval</header><text>The transfer of any assets or liabilities,
including those associated with any trust or custody business of a covered
financial company, to a bridge financial company shall be effective without any
further approval under Federal or State law, assignment, or consent with
respect thereto.</text>
</subparagraph><subparagraph id="H2D1BF38ECB5D417BA7CC6734BD8D6BDC"><enum>(E)</enum><header>Equitable
treatment of similarly situated creditors</header><text>The Corporation shall
treat all creditors of a covered financial company that are similarly situated
under subsection (b)(1), in a similar manner in exercising the authority of the
Corporation under this subsection to transfer any assets or liabilities of the
covered financial company to one or more bridge financial companies established
with respect to such covered financial company, except that the Corporation may
take any action (including making payments, subject to subsection (o)(1)(D)(i))
that does not comply with this subparagraph, if—</text>
<clause id="H917E321A1C494CB6BDC50CB219B894E5"><enum>(i)</enum><text>the
Corporation determines that such action is necessary—</text>
<subclause id="H1A5F2B1DE7C64C319271008B668599C7"><enum>(I)</enum><text>to maximize the
value of the assets of the covered financial company;</text>
</subclause><subclause id="HD1839189D2C6428B83AD3D56343D3DF5"><enum>(II)</enum><text>to maximize the
present value return from the sale or other disposition of the assets of the
covered financial company; or</text>
</subclause><subclause id="H3E12F01D78AE48E2B0B28C91A0DAADDE"><enum>(III)</enum><text>to minimize the
amount of any loss realized upon the sale or other disposition of the assets of
the covered financial company; and</text>
</subclause></clause><clause id="H94B2FD73639E4522A7F16C4E2C8356F8"><enum>(ii)</enum><text>all
creditors that are similarly situated under subsection (b)(1) receive not less
than the amount provided under paragraphs (2) and (3) of subsection (d).</text>
</clause></subparagraph><subparagraph id="HC4D85B9E574F40F281CFBAA45A922731"><enum>(F)</enum><header>Limitation on
transfer of liabilities</header><text>Notwithstanding any other provision of
law, the aggregate amount of liabilities of a covered financial company that
are transferred to, or assumed by, a bridge financial company from a covered
financial company may not exceed the aggregate amount of the assets of the
covered financial company that are transferred to, or purchased by, the bridge
financial company from the covered financial company.</text>
</subparagraph></paragraph><paragraph id="H53274C68517E470E85CF90DB8AF7518E"><enum>(6)</enum><header>Stay of judicial
action</header><text>Any judicial action to which a bridge financial company
becomes a party by virtue of its acquisition of any assets or assumption of any
liabilities of a covered financial company shall be stayed from further
proceedings for a period of not longer than 45 days (or such longer period as
may be agreed to upon the consent of all parties) at the request of the bridge
financial company.</text>
</paragraph><paragraph id="H3FFF524C57BB461680FF5C57C6001DE9"><enum>(7)</enum><header>Agreements
against interest of the bridge financial company</header><text>No agreement
that tends to diminish or defeat the interest of the bridge financial company
in any asset of a covered financial company acquired by the bridge financial
company shall be valid against the bridge financial company, unless such
agreement—</text>
<subparagraph id="H96A492F58DC543B6A5F98E7192D21ED6"><enum>(A)</enum><text>is in
writing;</text>
</subparagraph><subparagraph id="H2CE70E40301B4909B3881DFDF0EBED21"><enum>(B)</enum><text>was executed by an
authorized officer or representative of the covered financial company or
confirmed in the ordinary course of business by the covered financial company;
and</text>
</subparagraph><subparagraph id="H0480482AD64C47F6A94961C072ACE1F3"><enum>(C)</enum><text>has been on the
official record of the company, since the time of its execution, or with which,
the party claiming under the agreement provides documentation of such agreement
and its authorized execution or confirmation by the covered financial company
that is acceptable to the receiver.</text>
</subparagraph></paragraph><paragraph id="HC5613CB1DC2F45E4AAE4FEAB4A491B0D"><enum>(8)</enum><header>No Federal
status</header>
<subparagraph id="H40BC4772BF2840A7831A2ACFE0CFD1E0"><enum>(A)</enum><header>Agency
status</header><text>A bridge financial company is not an agency,
establishment, or instrumentality of the United States.</text>
</subparagraph><subparagraph id="H87374DFAB0764AF88F674C26C58373D4"><enum>(B)</enum><header>Employee
status</header><text>Representatives for purposes of paragraph (1)(B),
directors, officers, employees, or agents of a bridge financial company 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), director, officer, employee,
or agent of a bridge financial company shall not—</text>
<clause id="H0630DAA19E0946428FE7CC9637B7A4E7"><enum>(i)</enum><text>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</text>
</clause><clause id="HA748F440687043F58FA67EA7393BBAFD"><enum>(ii)</enum><text>receive any
salary or benefits for service in any such capacity with respect to a bridge
financial company in addition to such salary or benefits as are obtained
through employment with the Corporation or such Federal instrumentality.</text>
</clause></subparagraph></paragraph><paragraph id="H0FFE8B09BC214530BF64AC5BAEE2D4CF"><enum>(9)</enum><header>Funding
authorized</header><text>The Corporation may, subject to the plan described in
subsection (n)(9), provide funding to facilitate any transaction described in
subparagraph (A), (B), (C), or (D) of paragraph (13) with respect to any bridge
financial company, or facilitate the acquisition by a bridge financial company
of any assets, or the assumption of any liabilities, of a covered financial
company for which the Corporation has been appointed receiver.</text>
</paragraph><paragraph id="HB3E880CF1DAD42DA9D2E661B350A8ED1"><enum>(10)</enum><header>Exempt tax
status</header><text>Notwithstanding any other provision of Federal or State
law, a bridge financial company, 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.</text>
</paragraph><paragraph id="HB487EACDE6FA4453A83AF7A6BF29C44E"><enum>(11)</enum><header>Federal agency
approval; antitrust review</header><text>If a transaction involving the merger
or sale of a bridge financial company requires approval by a Federal agency,
the transaction may not be consummated before the 5th calendar day after the
date of approval by the Federal agency responsible for such approval with
respect thereto. If, in connection with any such approval a report on
competitive factors from the Attorney General is required, the Federal agency
responsible for such approval shall promptly notify the Attorney General of the
proposed transaction and the Attorney General shall provide the required report
within 10 days of the request. If a notification is required under section 7A
of the Clayton Act with respect to such transaction, the required waiting
period shall end on the 15th day after the date on which the Attorney General
and the Federal Trade Commission receive such notification, unless the waiting
period is terminated earlier under section 7A(b)(2) of the Clayton Act, or
extended under section 7A(e)(2) of that Act.</text>
</paragraph><paragraph id="HD613F1015E664707BAABE6CF42749EE2"><enum>(12)</enum><header>Duration of
bridge financial company</header><text>Subject to paragraphs (13) and (14), the
status of a bridge financial company as such shall terminate at the end of the
2-year period following the date on which it was granted a charter. The
Corporation may, in its discretion, extend the status of the bridge financial
company as such for no more than 3 additional 1-year periods.</text>
</paragraph><paragraph id="H78D3E44844044978AC27BBD1D0062C2C"><enum>(13)</enum><header>Termination of
bridge financial company status</header><text>The status of any bridge
financial company as such shall terminate upon the earliest of—</text>
<subparagraph id="H5CBEF8BA6C1C49CB8D8F555FFEC14132"><enum>(A)</enum><text>the date of the
merger or consolidation of the bridge financial company with a company that is
not a bridge financial company;</text>
</subparagraph><subparagraph id="HC4D3FE6B554148B6B29BF2C9DC52B59A"><enum>(B)</enum><text>at the election of
the Corporation, the sale of a majority of the capital stock of the bridge
financial company to a company other than the Corporation and other than
another bridge financial company;</text>
</subparagraph><subparagraph id="H2FF64B02172B4BF9A234B6F5818EF8AB"><enum>(C)</enum><text>the sale of 80
percent, or more, of the capital stock of the bridge financial company to a
person other than the Corporation and other than another bridge financial
company;</text>
</subparagraph><subparagraph id="H443A7648F1AD46389F052CFF58CE5930"><enum>(D)</enum><text>at the election of
the Corporation, either the assumption of all or substantially all of the
liabilities of the bridge financial company by a company that is not a bridge
financial company, or the acquisition of all or substantially all of the assets
of the bridge financial company by a company that is not a bridge financial
company, or other entity as permitted under applicable law; and</text>
</subparagraph><subparagraph id="HEBA841D5BEE149B087AB85E56A21A61B"><enum>(E)</enum><text>the expiration of
the period provided in paragraph (12), or the earlier dissolution of the bridge
financial company, as provided in paragraph (15).</text>
</subparagraph></paragraph><paragraph id="HF1A1B06323054D27A33FE5BD3B027226"><enum>(14)</enum><header>Effect of
termination events</header>
<subparagraph id="HB0AFD0D9561D43D98C5FE9709B005CDA"><enum>(A)</enum><header>Merger or
consolidation</header><text>A merger or consolidation, described in paragraph
(13)(A) shall be conducted in accordance with, and shall have the effect
provided in, the provisions of applicable law. For the purpose of effecting
such a merger or consolidation, the bridge financial company shall be treated
as a corporation organized under the laws of the State of Delaware (unless the
law of another State has been selected by the bridge financial company in
accordance with paragraph (2)(F)), and the Corporation shall be treated as the
sole shareholder thereof, notwithstanding any other provision of State or
Federal law.</text>
</subparagraph><subparagraph id="H79FADAFE498D49B5900BECCD166A6F1F"><enum>(B)</enum><header>Charter
conversion</header><text>Following the sale of a majority of the capital stock
of the bridge financial company, as provided in paragraph (13)(B), the
Corporation may amend the charter of the bridge financial company to reflect
the termination of the status of the bridge financial company as such,
whereupon the company shall have all of the rights, powers, and privileges
under its constituent documents and applicable Federal or State law. In
connection therewith, the Corporation may take such steps as may be necessary
or convenient to reincorporate the bridge financial company under the laws of a
State and, notwithstanding any provisions of Federal or State law, such
State-chartered corporation shall be deemed to succeed by operation of law to
such rights, titles, powers, and interests of the bridge financial company as
the Corporation may provide, with the same effect as if the bridge financial
company had merged with the State-chartered corporation under provisions of the
corporate laws of such State.</text>
</subparagraph><subparagraph id="H73D32C9609A74FFA8AE7F619E0D2C631"><enum>(C)</enum><header>Sale of
stock</header><text>Following the sale of 80 percent or more of the capital
stock of a bridge financial company, as provided in paragraph (13)(C), the
company shall have all of the rights, powers, and privileges under its
constituent documents and applicable Federal or State law. In connection
therewith, the Corporation may take such steps as may be necessary or
convenient to reincorporate the bridge financial company under the laws of a
State and, notwithstanding any provisions of Federal or State law, the
State-chartered corporation shall be deemed to succeed by operation of law to
such rights, titles, powers and interests of the bridge financial company as
the Corporation may provide, with the same effect as if the bridge financial
company had merged with the State-chartered corporation under provisions of the
corporate laws of such State.</text>
</subparagraph><subparagraph id="H5B2CC529696F4EEB9EBAC579EDA4BF92"><enum>(D)</enum><header>Assumption of
liabilities and sale of assets</header><text>Following the assumption of all or
substantially all of the liabilities of the bridge financial company, or the
sale of all or substantially all of the assets of the bridge financial company,
as provided in paragraph (13)(D), at the election of the Corporation, the
bridge financial company may retain its status as such for the period provided
in paragraph (12) or may be dissolved at the election of the
Corporation.</text>
</subparagraph><subparagraph id="H21AC28D077A94ECF9879F52189ECFE97"><enum>(E)</enum><header>Amendments to
charter</header><text>Following the consummation of a transaction described in
subparagraph (A), (B), (C), or (D) of paragraph (13), the charter of the
resulting company shall be amended to reflect the termination of bridge
financial company status, if appropriate.</text>
</subparagraph></paragraph><paragraph id="HE6AE15F3ADF8415EA9F250CADF17E658"><enum>(15)</enum><header>Dissolution of
bridge financial company</header>
<subparagraph id="H4202D550D6AE4006BFEB1101ECC39C1E"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, if the status of a bridge financial company as such has not previously
been terminated by the occurrence of an event specified in subparagraph (A),
(B), (C), or (D) of paragraph (13)—</text>
<clause id="H41E67BB487FF49CE95BFAD636C9B3AEE"><enum>(i)</enum><text>the
Corporation may, in its discretion, dissolve the bridge financial company in
accordance with this paragraph at any time; and</text>
</clause><clause id="H98A24D7851BE4C079DA5AD720AC0E038"><enum>(ii)</enum><text>the
Corporation shall promptly commence dissolution proceedings in accordance with
this paragraph upon the expiration of the 2-year period following the date on
which the bridge financial company was chartered, or any extension thereof, as
provided in paragraph (12).</text>
</clause></subparagraph><subparagraph id="HE393578565354118B0B440F9D4154510"><enum>(B)</enum><header>Procedures</header><text>The
Corporation shall remain the receiver for a bridge financial company for the
purpose of dissolving the bridge financial company. The Corporation as receiver
for a bridge financial company shall wind up the affairs of the bridge
financial company in conformity with the provisions of law relating to the
liquidation of covered financial companies under this title. With respect to
any such bridge financial company, the Corporation as 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 the
Corporation as receiver for a covered financial company under this title 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.</text>
</subparagraph></paragraph><paragraph id="HADB27D02CF514FA9A84EDD82045264C6"><enum>(16)</enum><header>Authority to
obtain credit</header>
<subparagraph id="H9CEBA667AD064FE9A1EE5680923A4448"><enum>(A)</enum><header>In
general</header><text>A bridge financial company may obtain unsecured credit
and issue unsecured debt.</text>
</subparagraph><subparagraph id="HCA6BB1E2B79044CE96C7A7147594D113"><enum>(B)</enum><header>Inability to
obtain credit</header><text>If a bridge financial company is unable to obtain
unsecured credit or issue unsecured debt, the Corporation may authorize the
obtaining of credit or the issuance of debt by the bridge financial
company—</text>
<clause id="HC7EAE7CECCBE495DBE0ED7A161226014"><enum>(i)</enum><text>with
priority over any or all of the obligations of the bridge financial
company;</text>
</clause><clause id="H4D0284D2BE624D32B6521893954883C9"><enum>(ii)</enum><text>secured by a lien
on property of the bridge financial company that is not otherwise subject to a
lien; or</text>
</clause><clause id="HC2DF9BC2BDFA4CECA93028748D57B12F"><enum>(iii)</enum><text>secured by a
junior lien on property of the bridge financial company that is subject to a
lien.</text>
</clause></subparagraph><subparagraph id="HA597721ED636499DB6F36E8706ACE244"><enum>(C)</enum><header>Limitations</header>
<clause id="HADCEE38CD40749B48AAB1120DC17CC66"><enum>(i)</enum><header>In
general</header><text>The Corporation, after notice and a hearing, may
authorize the obtaining of credit or the issuance of debt by a bridge financial
company that is secured by a senior or equal lien on property of the bridge
financial company that is subject to a lien, only if—</text>
<subclause id="H584D080B009B4143A30FEA660BD62EE1"><enum>(I)</enum><text>the bridge
financial company is unable to otherwise obtain such credit or issue such debt;
and</text>
</subclause><subclause id="H5F72C5BC7D214DDAAE6553C92A38D1D5"><enum>(II)</enum><text>there is adequate
protection of the interest of the holder of the lien on the property with
respect to which such senior or equal lien is proposed to be granted.</text>
</subclause></clause><clause id="H26400DCE79074544BFD276F95DEFF706"><enum>(ii)</enum><header>Hearing</header><text>The
hearing required pursuant to this subparagraph shall be before a court of the
United States, which shall have jurisdiction to conduct such hearing and to
authorize a bridge financial company to obtain secured credit under clause
(i).</text>
</clause></subparagraph><subparagraph id="H453485CBED75425BB98AB653F92F2B27"><enum>(D)</enum><header>Burden of
proof</header><text>In any hearing under this paragraph, the Corporation has
the burden of proof on the issue of adequate protection.</text>
</subparagraph><subparagraph id="H1AA13540FC7042D9919632518B1313C2"><enum>(E)</enum><header>Qualified
financial contracts</header><text>No credit or debt obtained or issued by a
bridge financial company may contain terms that impair the rights of a
counterparty to a qualified financial contract upon a default by the bridge
financial company, other than the priority of such counterparty’s unsecured
claim (after the exercise of rights) relative to the priority of the bridge
financial company’s obligations in respect of such credit or debt, unless such
counterparty consents in writing to any such impairment.</text>
</subparagraph></paragraph><paragraph id="H5AA6BE730455438E8949FA03EF112A01"><enum>(17)</enum><header>Effect on debts
and liens</header><text>The reversal or modification on appeal of an
authorization under this subsection to obtain credit or issue debt, or of a
grant under this section of a priority or a lien, does not affect the validity
of any debt so issued, or any priority or lien so granted, to an entity that
extended such credit in good faith, whether or not such entity knew of the
pendency of the appeal, unless such authorization and the issuance of such
debt, or the granting of such priority or lien, were stayed pending
appeal.</text>
</paragraph></subsection><subsection id="HA0CA0F91B0E04CC5B460E5D294908F03"><enum>(i)</enum><header>Sharing
records</header><text>If the Corporation has been appointed as receiver for a
covered financial company, other Federal regulators shall make all records
relating to the covered financial company available to the Corporation, which
may be used by the Corporation in any manner that the Corporation determines to
be appropriate.</text>
</subsection><subsection id="HA94D93FE9B064A6795BA5C1E5C2BC8F7"><enum>(j)</enum><header>Expedited
procedures for certain claims</header>
<paragraph id="H5A7A8A4FD3A940A7AD659E8E469109A4"><enum>(1)</enum><header>Time for filing
notice of appeal</header><text>The notice of appeal of any order, whether
interlocutory or final, entered in any case brought by the Corporation against
a director, officer, employee, agent, attorney, accountant, or appraiser of the
covered financial company, or any other person employed by or providing
services to a covered financial company, 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.</text>
</paragraph><paragraph id="H3A01F2BA277A4B979DC1F846A5C85FE5"><enum>(2)</enum><header>Scheduling</header><text>The
court shall expedite the consideration of any case brought by the Corporation
against a director, officer, employee, agent, attorney, accountant, or
appraiser of a covered financial company or any other person employed by or
providing services to a covered financial company. As far as practicable, the
court shall give such case priority on its docket.</text>
</paragraph><paragraph id="H1BBB4C96FA7243A8AF565F4370ED47D4"><enum>(3)</enum><header>Judicial
discretion</header><text>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.</text>
</paragraph></subsection><subsection id="H5827FA23126E42CD841FFAFCD4406E8E"><enum>(k)</enum><header>Foreign
investigations</header><text>The Corporation, as receiver for any covered
financial company, and for purposes of carrying out any power, authority, or
duty with respect to a covered financial company—</text>
<paragraph id="H4778B452885346EC8C6E91345F7CEA04"><enum>(1)</enum><text>may request the
assistance of any foreign financial authority and provide assistance to any
foreign financial authority in accordance with section 8(v) of the Federal
Deposit Insurance Act, as if the covered financial company were an insured
depository institution, the Corporation were the appropriate Federal banking
agency for the company, and any foreign financial authority were the foreign
banking authority; and</text>
</paragraph><paragraph id="H7A5547CAAE1C4A489C79F03EC5CFE711"><enum>(2)</enum><text>may maintain an
office to coordinate foreign investigations or investigations on behalf of
foreign financial authorities.</text>
</paragraph></subsection><subsection id="HE8237052889B445C8902AE32AD93D0AD"><enum>(l)</enum><header>Prohibition on
entering secrecy agreements and protective orders</header><text>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 receiver for a covered financial company.</text>
</subsection><subsection id="HBA707949E91D474D9203AAC663E7B8D4"><enum>(m)</enum><header>Liquidation of
certain covered financial companies or bridge financial companies</header>
<paragraph id="H0E57B6DA9BB44708BE909B2BB9162C66"><enum>(1)</enum><header>In
general</header><text>Except as specifically provided in this section, and
notwithstanding any other provision of law, the Corporation, in connection with
the liquidation of any covered financial company or bridge financial company
with respect to which the Corporation has been appointed as receiver,
shall—</text>
<subparagraph id="H8B0A49D2FA294672B439988739BE33E3"><enum>(A)</enum><text>in the case of any
covered financial company or bridge financial company that is a stockbroker,
but is not a member of the Securities Investor Protection Corporation, apply
the provisions of subchapter III of chapter 7 of the Bankruptcy Code, in
respect of the distribution to any customer of all customer name security and
customer property and member property, as if such covered financial company or
bridge financial company were a debtor for purposes of such subchapter;
or</text>
</subparagraph><subparagraph id="HE77F17C2C0594FC694B62BBB2ADAB6CF"><enum>(B)</enum><text>in the case of any
covered financial company or bridge financial company that is a commodity
broker, apply the provisions of subchapter IV of chapter 7 the Bankruptcy Code,
in respect of the distribution to any customer of all customer property and
member property, as if such covered financial company or bridge financial
company were a debtor for purposes of such subchapter.</text>
</subparagraph></paragraph><paragraph id="H207DD86F24D34697AFBC9C9EE99A7FBA"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="H9D354522EF24480D814C84FE14CAD302"><enum>(A)</enum><text>the terms
<term>customer</term>, <term>customer name security</term>, and <term>customer
property and member property</term> have the same meanings as in sections 741
and 761 of title 11, United States Code; and</text>
</subparagraph><subparagraph id="HE51B85703FF14D29AC92A111C67A17B6"><enum>(B)</enum><text>the terms
<term>commodity broker</term> and <term>stockbroker</term> have the same
meanings as in section 101 of the Bankruptcy Code.</text>
</subparagraph></paragraph></subsection><subsection id="HDF6E0A9CB72948E889895F4B4F54A725"><enum>(n)</enum><header>Orderly
liquidation fund</header>
<paragraph id="H1F49E3574B8B4748B3B2D81D0D84C3D6"><enum>(1)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a separate fund to be known
as the <quote>Orderly Liquidation Fund</quote>, which shall be available to the
Corporation to carry out the authorities contained in this title, for the cost
of actions authorized by this title, including the orderly liquidation of
covered financial companies, payment of administrative expenses, the payment of
principal and interest by the Corporation on obligations issued under paragraph
(5), and the exercise of the authorities of the Corporation under this
title.</text>
</paragraph><paragraph id="H0F84D82819124DE0B9059A6520768E43"><enum>(2)</enum><header>Proceeds</header><text>Amounts
received by the Corporation, including assessments received under subsection
(o), proceeds of obligations issued under paragraph (5), interest and other
earnings from investments, and repayments to the Corporation by covered
financial companies, shall be deposited into the Fund.</text>
</paragraph><paragraph id="HF6F820581968476DADF740DDBF2F29C8"><enum>(3)</enum><header>Management</header><text>The
Corporation shall manage the Fund in accordance with this subsection and the
policies and procedures established under section 203(d).</text>
</paragraph><paragraph id="H94E270402926487DBC8B277AC4D86088"><enum>(4)</enum><header>Investments</header><text>At
the request of the Corporation, the Secretary may invest such portion of
amounts held in the Fund that are not, in the judgment of the Corporation,
required to meet the current needs of the Corporation, in obligations of the
United States having suitable maturities, as determined by the Corporation. The
interest on and the proceeds from the sale or redemption of such obligations
shall be credited to the Fund.</text>
</paragraph><paragraph id="HF756D130C9104945AB6B9835E43D6A3C"><enum>(5)</enum><header>Authority to
issue obligations</header>
<subparagraph id="H9139AB35F60C40088D8B27F429430BA0"><enum>(A)</enum><header>Corporation
authorized to issue obligations</header><text>Upon appointment by the Secretary
of the Corporation as receiver for a covered financial company, the Corporation
is authorized to issue obligations to the Secretary.</text>
</subparagraph><subparagraph id="HDCA296DD484C49549BF2EF7E2CC97926"><enum>(B)</enum><header>Secretary
authorized to purchase obligations</header><text>The Secretary may, under such
terms and conditions as the Secretary may require, purchase or agree to
purchase any obligations issued under subparagraph (A), and for such purpose,
the Secretary is authorized to use as a public debt transaction the proceeds of
the sale of any securities issued under chapter 31 of title 31, United States
Code, and the purposes for which securities may be issued under chapter 31 of
title 31, United States Code, are extended to include such purchases.</text>
</subparagraph><subparagraph id="HEF73E32DDECD4758972A37CB4CCD4C66"><enum>(C)</enum><header>Interest
rate</header><text>Each purchase of obligations by the Secretary under this
paragraph shall be upon such terms and conditions as to yield a return at a
rate determined by the Secretary, taking into consideration the current average
yield on outstanding marketable obligations of the United States of comparable
maturity, plus an interest rate surcharge to be determined by the Secretary,
which shall be greater than the difference between—</text>
<clause id="H0F51DBCECC5B460D8DC87999B7C60A90"><enum>(i)</enum><text>the
current average rate on an index of corporate obligations of comparable
maturity; and</text>
</clause><clause id="H72A52877F1174443896C6F743C19117A"><enum>(ii)</enum><text>the
current average rate on outstanding marketable obligations of the United States
of comparable maturity.</text>
</clause></subparagraph><subparagraph id="HEFF3D809872542F1BF63435142948463"><enum>(D)</enum><header>Secretary
authorized to sell obligations</header><text>The Secretary may sell, upon such
terms and conditions as the Secretary shall determine, any of the obligations
acquired under this paragraph.</text>
</subparagraph><subparagraph id="HEBDAEDF786E74FCEB4968FC042AF0132"><enum>(E)</enum><header>Public debt
transactions</header><text>All purchases and sales by the Secretary of such
obligations under this paragraph shall be treated as public debt transactions
of the United States, and the proceeds from the sale of any obligations
acquired by the Secretary under this paragraph shall be deposited into the
Treasury of the United States as miscellaneous receipts.</text>
</subparagraph></paragraph><paragraph id="H9EDB123861864243B73D122F06ACC772"><enum>(6)</enum><header>Maximum
obligation limitation</header><text>The Corporation may not, in connection with
the orderly liquidation of a covered financial company, issue or incur any
obligation, if, after issuing or incurring the obligation, the aggregate amount
of such obligations outstanding under this subsection for each covered
financial company would exceed—</text>
<subparagraph id="H85BD7C983EF04420A36918E99D87A5D7"><enum>(A)</enum><text>an amount that is
equal to 10 percent of the total consolidated assets of the covered financial
company, based on the most recent financial statement available, during the
30-day period immediately following the date of appointment of the Corporation
as receiver (or a shorter time period if the Corporation has calculated the
amount described under subparagraph (B)); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F8CFB8A87F540FFA03A9A3ECDE4C838"><enum>(B)</enum><text>the amount that is
equal to 90 percent of the fair value of the total consolidated assets of each
covered financial company that are available for repayment, after the time
period described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="HBF15ADCDB6D743B8A5570AF79840A444"><enum>(7)</enum><header>Rulemaking</header><text>The
Corporation and the Secretary shall jointly, in consultation with the Council,
prescribe regulations governing the calculation of the maximum obligation
limitation defined in this paragraph.</text>
</paragraph><paragraph id="H908204895F47423DAA7B17CF605D8737"><enum>(8)</enum><header>Rule of
construction</header>
<subparagraph id="H2037A671899E4FD194722DFB5674C67E"><enum>(A)</enum><header>In
general</header><text>Nothing in this section shall be construed to affect the
authority of the Corporation under subsection (a) or (b) of section 14 or
section 15(c)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1824,
1825(c)(5)), the management of the Deposit Insurance Fund by the Corporation,
or the resolution of insured depository institutions, provided that—</text>
<clause id="HFF8EE25E0DA947A4AB5318A9A6095F11"><enum>(i)</enum><text>the
authorities of the Corporation contained in this title shall not be used to
assist the Deposit Insurance Fund or to assist any financial company under
applicable law other than this Act;</text>
</clause><clause id="HE986EBB9001B49C089D09F026ED89465"><enum>(ii)</enum><text>the
authorities of the Corporation relating to the Deposit Insurance Fund, or any
other responsibilities of the Corporation under applicable law other than this
title, shall not be used to assist a covered financial company pursuant to this
title; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBED49387CB2C4F2882C5AB427A6A5E74"><enum>(iii)</enum><text>the Deposit
Insurance Fund may not be used in any manner to otherwise circumvent the
purposes of this title.</text>
</clause></subparagraph><subparagraph id="H8F049F8CA8874EBC95BB948E89BEE7AC"><enum>(B)</enum><header>Valuation</header><text>For
purposes of determining the amount of obligations under this subsection—</text>
<clause id="H3A7ED056038E4DAABC21ECA90853956D"><enum>(i)</enum><text>the
Corporation shall include as an obligation any contingent liability of the
Corporation pursuant to this title; and</text>
</clause><clause id="HED409634337545A68CE693030A05BC57"><enum>(ii)</enum><text>the
Corporation shall value any contingent liability at its expected cost to the
Corporation.</text>
</clause></subparagraph></paragraph><paragraph id="H9E9BF1BE31594E69B48F3607563AE451"><enum>(9)</enum><header>Orderly
liquidation and repayment plans</header>
<subparagraph id="H1D30091A366A4634BC8734B18CEF0DE5"><enum>(A)</enum><header>Orderly
liquidation plan</header><text>Amounts in the Fund shall be available to the
Corporation with regard to a covered financial company for which the
Corporation is appointed receiver after the Corporation has developed an
orderly liquidation plan that is acceptable to the Secretary with regard to
such covered financial company, including the provision and use of funds,
including taking any actions specified under section 204(d) and subsection
(h)(2)(G)(iv) and (h)(9) of this section, and payments to third parties. The
orderly liquidation plan shall take into account actions to avoid or mitigate
potential adverse effects on low income, minority, or underserved communities
affected by the failure of the covered financial company, and shall provide for
coordination with the primary financial regulatory agencies, as appropriate, to
ensure that such actions are taken. The Corporation may, at any time, amend any
orderly liquidation plan approved by the Secretary with the concurrence of the
Secretary.</text>
</subparagraph><subparagraph id="HD5CC51096FA241CEB4A3BB5AD059EE0D"><enum>(B)</enum><header>Mandatory
repayment plan</header>
<clause id="H32BED48545654CB08A06652D935A8FFD"><enum>(i)</enum><header>In
general</header><text>No amount authorized under paragraph (6)(B) may be
provided by the Secretary to the Corporation under paragraph (5), unless an
agreement is in effect between the Secretary and the Corporation that—</text>
<subclause id="H3B0A8ACB2BC645438844D7B7C10A4C5B"><enum>(I)</enum><text>provides a
specific plan and schedule to achieve the repayment of the outstanding amount
of any borrowing under paragraph (5); and</text>
</subclause><subclause id="H0D3BF2CEC51A45418454F9D64D19E028"><enum>(II)</enum><text>demonstrates that
income to the Corporation from the liquidated assets of the covered financial
company and assessments under subsection (o) will be sufficient to amortize the
outstanding balance within the period established in the repayment schedule and
pay the interest accruing on such balance within the time provided in
subsection (o)(1)(B).</text>
</subclause></clause><clause id="H14A71D75A2EE41628D5CC1A53A0657BA"><enum>(ii)</enum><header>Consultation
with and report to Congress</header><text>The Secretary and the Corporation
shall—</text>
<subclause id="H8CB026ED69CD4E2CBCA8AA446447E07E"><enum>(I)</enum><text>consult with the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the terms of
any repayment schedule agreement; and</text>
</subclause><subclause id="HBF9F3DA2AFF84A229EE1F02C8F8A0ED0"><enum>(II)</enum><text>submit a copy of
the repayment schedule agreement to the Committees described in subclause (I)
before the end of the 30-day period beginning on the date on which any amount
is provided by the Secretary to the Corporation under paragraph (5).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HCFCCB67ED36A4E3A94243A6DDB0B4161"><enum>(10)</enum><header>Implementation
expenses</header>
<subparagraph id="HADAEAB895E344A21838E96F3BC0BBE2E"><enum>(A)</enum><header>In
general</header><text>Reasonable implementation expenses of the Corporation
incurred after the date of enactment of this Act shall be treated as expenses
of the Council.</text>
</subparagraph><subparagraph id="HDE466826BCF44D37B03F3BE0739112A3"><enum>(B)</enum><header>Requests for
reimbursement</header><text>The Corporation shall periodically submit a request
for reimbursement for implementation expenses to the Chairperson of the
Council, who shall arrange for prompt reimbursement to the Corporation of
reasonable implementation expenses.</text>
</subparagraph><subparagraph id="HEBDE3960B9A74762B0F83F3E96D5C627"><enum>(C)</enum><header>Definition</header><text>As
used in this paragraph, the term <term>implementation expenses</term>—</text>
<clause id="HA8CC8B2C4142472294D6B9B269DA663C"><enum>(i)</enum><text>means costs
incurred by the Corporation beginning on the date of enactment of this Act, as
part of its efforts to implement this title that do not relate to a particular
covered financial company; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4CFA9D41F5E1472AB94353ADE2168376"><enum>(ii)</enum><text>includes the
costs incurred in connection with the development of policies, procedures,
rules, and regulations and other planning activities of the Corporation
consistent with carrying out this title.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H90BD513C7C40463D80E1C660179F2FB0"><enum>(o)</enum><header>Assessments</header>
<paragraph id="H37B809BA2562443DA3EAD12383C63EC0"><enum>(1)</enum><header>Risk-based
assessments</header>
<subparagraph id="HE8C49A46A38D46BDB4C1582DA31DCDA8"><enum>(A)</enum><header>Eligible
financial companies defined</header><text>For purposes of this subsection, the
term <term>eligible financial company</term> means any bank holding company
with total consolidated assets equal to or greater than $50,000,000,000 and any
nonbank financial company supervised by the Board of Governors.</text>
</subparagraph><subparagraph id="HD68072708C9B4DA781BE1B6DC43B899D"><enum>(B)</enum><header>Assessments</header><text>The
Corporation shall charge one or more risk-based assessments in accordance with
the provisions of subparagraph (D), if such assessments are necessary to pay in
full the obligations issued by the Corporation to the Secretary under this
title within 60 months of the date of issuance of such obligations.</text>
</subparagraph><subparagraph id="HCB4CB9EB00CA4BF68C1FB7C57E7B9C82"><enum>(C)</enum><header>Extensions
authorized</header><text>The Corporation may, with the approval of the
Secretary, extend the time period under subparagraph (B), if the Corporation
determines that an extension is necessary to avoid a serious adverse effect on
the financial system of the United States.</text>
</subparagraph><subparagraph id="H7680CCE4952047F4BA5C6074F7333A93"><enum>(D)</enum><header>Application of
assessments</header><text>To meet the requirements of subparagraph (B), the
Corporation shall—</text>
<clause id="H77C8B2CEE4F54A7AA238779B9195AC3B"><enum>(i)</enum><text>impose
assessments, as soon as practicable, on any claimant that received additional
payments or amounts from the Corporation pursuant to subsection (b)(4), (d)(4),
or (h)(5)(E), except for payments or amounts necessary to initiate and continue
operations essential to implementation of the receivership or any bridge
financial company, to recover on a cumulative basis, the entire difference
between—</text>
<subclause id="H95EA399136FF4731B3E37559DF6D0ED3"><enum>(I)</enum><text>the aggregate
value the claimant received from the Corporation on a claim pursuant to this
title (including pursuant to subsection (b)(4), (d)(4), and (h)(5)(E)), as of
the date on which such value was received; and</text>
</subclause><subclause id="H59B086C1EA9A42C7B0426194CA5A0876"><enum>(II)</enum><text>the value the
claimant was entitled to receive from the Corporation on such claim solely from
the proceeds of the liquidation of the covered financial company under this
title; and</text>
</subclause></clause><clause id="H30E64BE536834B5699BCF568350E2CCC"><enum>(ii)</enum><text>if
the amounts to be recovered on a cumulative basis under clause (i) are
insufficient to meet the requirements of subparagraph (B), after taking into
account the considerations set forth in paragraph (4), impose assessments
on—</text>
<subclause id="H10D5AD80677349D1B00BBE060D1C3F78"><enum>(I)</enum><text>eligible financial
companies; and</text>
</subclause><subclause id="HD73D6898231C459AA721E6E0E6CFBF62"><enum>(II)</enum><text>financial
companies with total consolidated assets equal to or greater than
$50,000,000,000 that are not eligible financial companies.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB5F2714D50814FB697236B300F7BA875"><enum>(E)</enum><header>Provision of
financing</header><text>Payments or amounts necessary to initiate and continue
operations essential to implementation of the receivership or any bridge
financial company described in subparagraph (D)(i) shall not include the
provision of financing, as defined by rule of the Corporation, to third
parties.</text>
</subparagraph></paragraph><paragraph id="H8679D47BE6164862BDAECC89379AAFB7"><enum>(2)</enum><header>Graduated
assessment rate</header><text>The Corporation shall impose assessments on a
graduated basis, with financial companies having greater assets and risk being
assessed at a higher rate.</text>
</paragraph><paragraph id="H9C8747F2F8C44FDE99E7321DDBC423C4"><enum>(3)</enum><header>Notification and
payment</header><text>The Corporation shall notify each financial company of
that company's assessment under this subsection. Any financial company subject
to assessment under this subsection shall pay such assessment in accordance
with the regulations prescribed pursuant to paragraph (6).</text>
</paragraph><paragraph id="H1E34ED53C6344D4AB464708143FCE625"><enum>(4)</enum><header>Risk-based
assessment considerations</header><text>In imposing assessments under paragraph
(1)(D)(ii), the Corporation shall use a risk matrix. The Council shall make a
recommendation to the Corporation on the risk matrix to be used in imposing
such assessments, and the Corporation shall take into account any such
recommendation in the establishment of the risk matrix to be used to impose
such assessments. In recommending or establishing such risk matrix, the Council
and the Corporation, respectively, shall take into account—</text>
<subparagraph id="HD86D3F61E180496EB40BE0D3DA32D304"><enum>(A)</enum><text>economic
conditions generally affecting financial companies so as to allow assessments
to increase during more favorable economic conditions and to decrease during
less favorable economic conditions;</text>
</subparagraph><subparagraph id="HA5E2DA76B0BB4413A3FF8AB970EA1075"><enum>(B)</enum><text>any assessments
imposed on a financial company or an affiliate of a financial company
that—</text>
<clause id="H78035AB80DCC4F738FEE7168A58BAFB6"><enum>(i)</enum><text>is
an insured depository institution, assessed pursuant to section 7 or
13(c)(4)(G) of the Federal Deposit Insurance Act;</text>
</clause><clause id="H2925A46C00254AA9828875C703609DB9"><enum>(ii)</enum><text>is
a member of the Securities Investor Protection Corporation, assessed pursuant
to section 4 of the Securities Investor Protection Act of 1970 (15 U.S.C.
78ddd);</text>
</clause><clause id="H4B163CB64BA84E6FAE66DA49328B0D4D"><enum>(iii)</enum><text>is
an insured credit union, assessed pursuant to section 202(c)(1)(A)(i) of the
Federal Credit Union Act (12 U.S.C. 1782(c)(1)(A)(i)); or</text>
</clause><clause id="H3BEFE25651DD42DD8C3DA54E26B1B156"><enum>(iv)</enum><text>is
an insurance company, assessed pursuant to applicable State law to cover (or
reimburse payments made to cover) the costs of the rehabilitation, liquidation,
or other State insolvency proceeding with respect to 1 or more insurance
companies;</text>
</clause></subparagraph><subparagraph id="HD87729680EBD4A0EAE22026948758B26"><enum>(C)</enum><text>the risks
presented by the financial company to the financial system and the extent to
which the financial company has benefitted, or likely would benefit, from the
orderly liquidation of a financial company under this title, including—</text>
<clause id="H2FA4050DE87E4402805817CA00DE50CA"><enum>(i)</enum><text>the
amount, different categories, and concentrations of assets of the financial
company and its affiliates, including both on-balance sheet and off-balance
sheet assets;</text>
</clause><clause id="H249EB88A008C421C96E9A43FA8676A35"><enum>(ii)</enum><text>the
activities of the financial company and its affiliates;</text>
</clause><clause id="H415BA01730284934B97416E68C07332B"><enum>(iii)</enum><text>the relevant
market share of the financial company and its affiliates;</text>
</clause><clause id="H28797EFF37DA4CE586849CC168CD92C0"><enum>(iv)</enum><text>the
extent to which the financial company is leveraged;</text>
</clause><clause id="HC3441256E78C48DA8F44579D19DC9F4B"><enum>(v)</enum><text>the
potential exposure to sudden calls on liquidity precipitated by economic
distress;</text>
</clause><clause id="H21FD4882A62349B3BC1B3D3F97215FB3"><enum>(vi)</enum><text>the
amount, maturity, volatility, and stability of the company's financial
obligations to, and relationship with, other financial companies;</text>
</clause><clause id="HB8DC34F520D7481BA49E0292AADE256C"><enum>(vii)</enum><text>the amount,
maturity, volatility, and stability of the liabilities of the company,
including the degree of reliance on short-term funding, taking into
consideration existing systems for measuring a company’s risk-based
capital;</text>
</clause><clause id="HED0BD9CBC7DF43EFBD7419870B83A8E3"><enum>(viii)</enum><text>the stability
and variety of the company’s sources of funding;</text>
</clause><clause id="H09FF42281DE34D3EBB7C3101958ACCB3"><enum>(ix)</enum><text>the
company’s importance as a source of credit for households, businesses, and
State and local governments and as a source of liquidity for the financial
system;</text>
</clause><clause id="HE97A8680EED148BCA86878DA94DB1F67"><enum>(x)</enum><text>the
extent to which assets are simply managed and not owned by the financial
company and the extent to which ownership of assets under management is
diffuse; and</text>
</clause><clause id="H56032EFEDE394BD4A49EE4B84AE1C948"><enum>(xi)</enum><text>the
amount, different categories, and concentrations of liabilities, both insured
and uninsured, contingent and noncontingent, including both on-balance sheet
and off-balance sheet liabilities, of the financial company and its
affiliates;</text>
</clause></subparagraph><subparagraph id="HC30AC2504B004A5EBD0BCAFC4470EBC5"><enum>(D)</enum><text>any risks
presented by the financial company during the 10-year period immediately prior
to the appointment of the Corporation as receiver for the covered financial
company that contributed to the failure of the covered financial company;
and</text>
</subparagraph><subparagraph id="HEDDCD7EC0FFF492BA3CE19D593BD89DA"><enum>(E)</enum><text>such other
risk-related factors as the Corporation, or the Council, as applicable, may
determine to be appropriate.</text>
</subparagraph></paragraph><paragraph id="HFD2559BE988F45EAB8288DAD421E7D4C"><enum>(5)</enum><header>Collection of
information</header><text>The Corporation may impose on covered financial
companies such collection of information requirements as the Corporation deems
necessary to carry out this subsection after the appointment of the Corporation
as receiver under this title.</text>
</paragraph><paragraph id="H75B4F6F684714EFD9DB851997928650E"><enum>(6)</enum><header>Rulemaking</header>
<subparagraph id="H05E2EA0EAFA5446D8A4F75E307BE42C5"><enum>(A)</enum><header>In
general</header><text>The Corporation shall prescribe regulations to carry out
this subsection. The Corporation shall consult with the Secretary in the
development and finalization of such regulations.</text>
</subparagraph><subparagraph id="HF33335EB34964FC5BC199FB2C7E46E6F"><enum>(B)</enum><header>Equitable
treatment</header><text>The regulations prescribed under subparagraph (A) shall
take into account the differences in risks posed to the financial stability of
the United States by financial companies, the differences in the liability
structures of financial companies, and the different bases for other
assessments that such financial companies may be required to pay, to ensure
that assessed financial companies are treated equitably and that assessments
under this subsection reflect such differences.</text>
</subparagraph></paragraph></subsection><subsection id="H1BBF4DF905A14B59B55A2332E8C1A059"><enum>(p)</enum><header>Unenforceability
of certain agreements</header>
<paragraph id="HEA9B4A865F9D435CB879F8E25918AB6C"><enum>(1)</enum><header>In
general</header><text>No provision described in paragraph (2) shall be
enforceable against or impose any liability on any person, as such enforcement
or liability shall be contrary to public policy.</text>
</paragraph><paragraph id="H5FEB6C43BACC417A85B774069D25D463"><enum>(2)</enum><header>Prohibited
provisions</header><text>A provision described in this paragraph is any term
contained in any existing or future standstill, confidentiality, or other
agreement that, directly or indirectly—</text>
<subparagraph id="HF0DE4260839A4242ACE78216FAA2CD51"><enum>(A)</enum><text>affects,
restricts, or limits the ability of any person to offer to acquire or
acquire;</text>
</subparagraph><subparagraph id="H5A0E9921A30E43658045283116DE3356"><enum>(B)</enum><text>prohibits any
person from offering to acquire or acquiring; or</text>
</subparagraph><subparagraph id="HF804733580154C859DA792B780D48C34"><enum>(C)</enum><text>prohibits any
person from using any previously disclosed information in connection with any
such offer to acquire or acquisition of,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">all or part
of any covered financial company, including any liabilities, assets, or
interest therein, in connection with any transaction in which the Corporation
exercises its authority under this title.</continuation-text></paragraph></subsection><subsection id="H909DF9C34ED549E2AA092A894939D5CB"><enum>(q)</enum><header>Other
exemptions</header>
<paragraph id="HCD32C2511E9D4EA6A6F4B1B266B29140"><enum>(1)</enum><header>In
general</header><text>When acting as a receiver under this title—</text>
<subparagraph id="HCFF4CC680662434BB6ABB74912395B7E"><enum>(A)</enum><text>the Corporation,
including its franchise, its capital, reserves and surplus, and its income,
shall be exempt from all taxation imposed by any State, county, municipality,
or local taxing authority, except that any real property of the Corporation
shall be subject to State, territorial, county, municipal, or local taxation to
the same extent according to its value as other real property is taxed, except
that, notwithstanding the failure of any person to challenge an assessment
under State law of the value of such property, such value, and the tax thereon,
shall be determined as of the period for which such tax is imposed;</text>
</subparagraph><subparagraph id="H9C7E0DA4CCA144C8A058DEBBEF0B988A"><enum>(B)</enum><text>no property of the
Corporation shall be subject to levy, attachment, garnishment, foreclosure, or
sale without the consent of the Corporation, nor shall any involuntary lien
attach to the property of the Corporation; and</text>
</subparagraph><subparagraph id="H63710FE239DA4F2A9DAA1BFBD22AFAE4"><enum>(C)</enum><text>the Corporation
shall not be liable for any amounts in the nature of penalties or fines,
including those arising from the failure of any person to pay any real
property, personal property, probate, or recording tax or any recording or
filing fees when due; and</text>
</subparagraph><subparagraph commented="no" id="H9944DCE295934E439803B291017911F6"><enum>(D)</enum><text>the Corporation
shall be exempt from all prosecution by the United States or any State, county,
municipality, or local authority for any criminal offense arising under
Federal, State, county, municipal, or local law, which was allegedly committed
by the covered financial company, or persons acting on behalf of the covered
financial company, prior to the appointment of the Corporation as
receiver.</text>
</subparagraph></paragraph><paragraph id="HAFE465602B3E43C3AB6444F1E3480F44"><enum>(2)</enum><header>Limitation</header><text>Paragraph
(1) shall not apply with respect to any tax imposed (or other amount arising)
under the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection id="HBE0F999518514EA896260C1973AFA48F"><enum>(r)</enum><header>Certain sales of
assets prohibited</header>
<paragraph id="HC7D52F4972C14A6DB36C40CB2D39BAA2"><enum>(1)</enum><header>Persons who
engaged in improper conduct with, or caused losses to, covered financial
companies</header><text>The Corporation shall prescribe regulations which, at a
minimum, shall prohibit the sale of assets of a covered financial company by
the Corporation to—</text>
<subparagraph id="HA0F18B18C5094168B3525F23DA6EC25A"><enum>(A)</enum><text>any person
who—</text>
<clause id="HB0BDD423B5F64F87B31797199EB140CD"><enum>(i)</enum><text>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 exceeds $1,000,000, to such covered financial company;</text>
</clause><clause id="H102F55BD2C594C2F8E94F9A17352BE12"><enum>(ii)</enum><text>has
been found to have engaged in fraudulent activity in connection with any
obligation referred to in clause (i); and</text>
</clause><clause id="HFD0DDE941A1C432D90ECA1F2BE730106"><enum>(iii)</enum><text>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 covered financial
company;</text>
</clause></subparagraph><subparagraph id="H3260D4ED5ACD4BADAA8DFD357FC39B5C"><enum>(B)</enum><text>any person who
participated, as an officer or director of such covered financial company or of
any affiliate of such company, in a material way in any transaction that
resulted in a substantial loss to such covered financial company; or</text>
</subparagraph><subparagraph id="HBF03C737988149D8861CC073CFAABAEE"><enum>(C)</enum><text>any person who has
demonstrated a pattern or practice of defalcation regarding obligations to such
covered financial company.</text>
</subparagraph></paragraph><paragraph id="HF2677705B95649B9967443FD82A226F9"><enum>(2)</enum><header>Convicted
debtors</header><text>Except as provided in paragraph (3), a person may not
purchase any asset of such institution from the receiver, if that
person—</text>
<subparagraph id="HCD2D93E4B40F4575B49B29DA974A5C95"><enum>(A)</enum><text>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 covered financial company; and</text>
</subparagraph><subparagraph id="HE803A5028FCF45FF96B19476315A08AA"><enum>(B)</enum><text>is in default on
any loan or other extension of credit from such covered financial company
which, if not paid, will cause substantial loss to the Fund or the
Corporation.</text>
</subparagraph></paragraph><paragraph id="H7B750D70A48A490896616F166B16755D"><enum>(3)</enum><header>Settlement of
claims</header><text>Paragraphs (1) and (2) shall not apply to the sale or
transfer by the Corporation of any asset of any covered financial company to
any person, if the sale or transfer of the asset resolves or settles, or is
part of the resolution or settlement, of 1 or more claims that have been, or
could have been, asserted by the Corporation against the person.</text>
</paragraph><paragraph id="HCA5BBEEF36764FD8ABBE1C663ECB1BF0"><enum>(4)</enum><header>Definition of
default</header><text>For purposes of this subsection, the term
<term>default</term> 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.</text>
</paragraph></subsection><subsection id="HDF05A922040A4BB6BB45119A57CB87CD"><enum>(s)</enum><header>Recoupment of
compensation from senior executives and directors</header>
<paragraph id="H6BD3B015C7614E6081D235ED8CDC615C"><enum>(1)</enum><header>In
general</header><text>The Corporation, as receiver of a covered financial
company, may recover from any current or former senior executive or director
substantially responsible for the failed condition of the covered financial
company any compensation received during the 2-year period preceding the date
on which the Corporation was appointed as the receiver of the covered financial
company, except that, in the case of fraud, no time limit shall apply.</text>
</paragraph><paragraph id="HB33BBF7EE048489DB25A9096B6CE6CB9"><enum>(2)</enum><header>Cost
considerations</header><text>In seeking to recover any such compensation, the
Corporation shall weigh the financial and deterrent benefits of such recovery
against the cost of executing the recovery.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB78366BDFAA64F0D88575852A450EA36"><enum>(3)</enum><header>Rulemaking</header><text>The
Corporation shall promulgate regulations to implement the requirements of this
subsection, including defining the term <term>compensation</term> to mean any
financial remuneration, including salary, bonuses, incentives, benefits,
severance, deferred compensation, or golden parachute benefits, and any profits
realized from the sale of the securities of the covered financial
company.</text>
</paragraph></subsection></section><section id="H069906CBF6534974BBD876D1757E981D"><enum>211.</enum><header>Miscellaneous
provisions</header>
<subsection id="HF98774D1CB7D417BB8D0560D9D5EE014"><enum>(a)</enum><header>Clarification of
prohibition regarding concealment of assets from receiver or liquidating
agent</header><text>Section 1032(1) of title 18, United States Code, is amended
by inserting <quote>the Federal Deposit Insurance Corporation acting as
receiver for a covered financial company, in accordance with title II of the
Dodd-Frank Wall Street Reform and Consumer Protection Act,</quote> before
<quote>or the National Credit</quote>.</text>
</subsection><subsection id="H16C3882B861046D08CE605EC53614330"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1032 of title 18, United States Code, is
amended in the section heading, by striking <quote><header-in-text level="section" style="USC">of financial
institution</header-in-text></quote>.</text>
</subsection><subsection id="HAD50C54D882F4543AEF7414531315603"><enum>(c)</enum><header>Federal deposit
insurance corporation improvement Act of 1991</header><text>Section 403(a) of
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4403(a)) is amended by inserting <quote>section 210(c) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617(d)),</quote> after <quote>section 11(e) of the Federal Deposit Insurance
Act,</quote>.</text>
</subsection><subsection id="H6284F91B6B8C41ABA471C813597CB53E"><enum>(d)</enum><header>FDIC inspector
general reviews</header>
<paragraph id="H6A636608FCE54835A2006A4C1A1A67B3"><enum>(1)</enum><header>Scope</header><text>The
Inspector General of the Corporation shall conduct, supervise, and coordinate
audits and investigations of the liquidation of any covered financial company
by the Corporation as receiver under this title, including collecting and
summarizing—</text>
<subparagraph id="HBA14EFF94A754EE7933D1B6EF229B0E3"><enum>(A)</enum><text>a description of
actions taken by the Corporation as receiver;</text>
</subparagraph><subparagraph id="HC8916C9692C34A3DA49745FBD680A94E"><enum>(B)</enum><text>a description of
any material sales, transfers, mergers, obligations, purchases, and other
material transactions entered into by the Corporation;</text>
</subparagraph><subparagraph id="HA4F1CD2597E14B5FA11933E0C1C8C3C0"><enum>(C)</enum><text>an evaluation of
the adequacy of the policies and procedures of the Corporation under section
203(d) and orderly liquidation plan under section 210(n)(14);</text>
</subparagraph><subparagraph id="HF23303B68DE64E959075377E768AB68D"><enum>(D)</enum><text>an evaluation of
the utilization by the Corporation of the private sector in carrying out its
functions, including the adequacy of any conflict-of-interest reviews;
and</text>
</subparagraph><subparagraph id="H7CC42AEDD95C4A7F90FDBE46496CE3EF"><enum>(E)</enum><text>an evaluation of
the overall performance of the Corporation in liquidating the covered financial
company, including administrative costs, timeliness of liquidation process, and
impact on the financial system.</text>
</subparagraph></paragraph><paragraph id="H1F8E29E316F8414E8706CB9B4E237052"><enum>(2)</enum><header>Frequency</header><text>Not
later than 6 months after the date of appointment of the Corporation as
receiver under this title and every 6 months thereafter, the Inspector General
of the Corporation shall conduct the audit and investigation described in
paragraph (1).</text>
</paragraph><paragraph id="HDACF280CBBD040F9804CEE8A767C02F0"><enum>(3)</enum><header>Reports and
testimony</header><text>The Inspector General of the Corporation shall include
in the semiannual reports required by section 5(a) of the Inspector General Act
of 1978 (5 U.S.C. App.), a summary of the findings and evaluations under
paragraph (1), and shall appear before the appropriate committees of Congress,
if requested, to present each such report.</text>
</paragraph><paragraph id="H6CF5FD73702E4FAF94EC9AB82FF3D621"><enum>(4)</enum><header>Funding</header>
<subparagraph id="H9E4546E65BD54B01A2AB807595579803"><enum>(A)</enum><header>Initial
funding</header><text>The expenses of the Inspector General of the Corporation
in carrying out this subsection shall be considered administrative expenses of
the receivership.</text>
</subparagraph><subparagraph id="H322A201BDCBE45A5A8B41A6FB4E44583"><enum>(B)</enum><header>Additional
funding</header><text>If the maximum amount available to the Corporation as
receiver under this title is insufficient to enable the Inspector General of
the Corporation to carry out the duties under this subsection, the Corporation
shall pay such additional amounts from assessments imposed under section
210.</text>
</subparagraph></paragraph><paragraph id="HAFE2F968E8CC41998FA8D6E8FA4C0DA7"><enum>(5)</enum><header>Termination of
responsibilities</header><text>The duties and responsibilities of the Inspector
General of the Corporation under this subsection shall terminate 1 year after
the date of termination of the receivership under this title.</text>
</paragraph></subsection><subsection id="H8F4E4F03B4F447B48F24BC36E0323D18"><enum>(e)</enum><header>Treasury
inspector general reviews</header>
<paragraph id="H55DD8B63070547ACAD916C0FCE7F39D2"><enum>(1)</enum><header>Scope</header><text>The
Inspector General of the Department of the Treasury shall conduct, supervise,
and coordinate audits and investigations of actions taken by the Secretary
related to the liquidation of any covered financial company under this title,
including collecting and summarizing—</text>
<subparagraph id="HBCCE693765894B6C9B2581F448F81316"><enum>(A)</enum><text>a description of
actions taken by the Secretary under this title;</text>
</subparagraph><subparagraph id="HAB27B356FAFA4102B3CD3DA864640973"><enum>(B)</enum><text>an analysis of the
approval by the Secretary of the policies and procedures of the Corporation
under section 203 and acceptance of the orderly liquidation plan of the
Corporation under section 210; and</text>
</subparagraph><subparagraph id="H5729A9ABF2CA45E780A738F6DC954442"><enum>(C)</enum><text>an assessment of
the terms and conditions underlying the purchase by the Secretary of
obligations of the Corporation under section 210.</text>
</subparagraph></paragraph><paragraph id="H80E79D868A6544D38B92ABEA6760F0BF"><enum>(2)</enum><header>Frequency</header><text>Not
later than 6 months after the date of appointment of the Corporation as
receiver under this title and every 6 months thereafter, the Inspector General
of the Department of the Treasury shall conduct the audit and investigation
described in paragraph (1).</text>
</paragraph><paragraph id="H8C16370AE712472A9D41B378D9F2ECFA"><enum>(3)</enum><header>Reports and
testimony</header><text>The Inspector General of the Department of the Treasury
shall include in the semiannual reports required by section 5(a) of the
Inspector General Act of 1978 (5 U.S.C. App.), a summary of the findings and
assessments under paragraph (1), and shall appear before the appropriate
committees of Congress, if requested, to present each such report.</text>
</paragraph><paragraph id="H2ECAFFA8C4084CA58C1418973D8A218E"><enum>(4)</enum><header>Termination of
responsibilities</header><text>The duties and responsibilities of the Inspector
General of the Department of the Treasury under this subsection shall terminate
1 year after the date on which the obligations purchased by the Secretary from
the Corporation under section 210 are fully redeemed.</text>
</paragraph></subsection><subsection id="H059DBE14953D4B308CAA756E5F6C402E"><enum>(f)</enum><header>Primary
financial regulatory agency inspector general reviews</header>
<paragraph id="H929D80DBA96E4FD4BBED452A2032466C"><enum>(1)</enum><header>Scope</header><text>Upon
the appointment of the Corporation as receiver for a covered financial company
supervised by a Federal primary financial regulatory agency or the Board of
Governors under section 165, the Inspector General of the agency or the Board
of Governors shall make a written report reviewing the supervision by the
agency or the Board of Governors of the covered financial company, which
shall—</text>
<subparagraph id="H1D44B64AA44F4B81918BC127D3F287E1"><enum>(A)</enum><text>evaluate the
effectiveness of the agency or the Board of Governors in carrying out its
supervisory responsibilities with respect to the covered financial
company;</text>
</subparagraph><subparagraph id="H18C2CA554F5B4AC793A9A914CDBC1AD5"><enum>(B)</enum><text>identify any acts
or omissions on the part of agency or Board of Governors officials that
contributed to the covered financial company being in default or in danger of
default;</text>
</subparagraph><subparagraph id="H31A1EAD706594BADADD57C2ADEDD817B"><enum>(C)</enum><text>identify any
actions that could have been taken by the agency or the Board of Governors that
would have prevented the company from being in default or in danger of default;
and</text>
</subparagraph><subparagraph id="H5B06A86FF1EE4071881D0C2D8DBCAAFD"><enum>(D)</enum><text>recommend
appropriate administrative or legislative action.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF63AADE2FFD34E789A5D31F83013D7AB"><enum>(2)</enum><header>Reports and
testimony</header><text>Not later than 1 year after the date of appointment of
the Corporation as receiver under this title, the Inspector General of the
Federal primary financial regulatory agency or the Board of Governors shall
provide the report required by paragraph (1) to such agency or the Board of
Governors, and along with such agency or the Board of Governors, as applicable,
shall appear before the appropriate committees of Congress, if requested, to
present the report required by paragraph (1). Not later than 90 days after the
date of receipt of the report required by paragraph (1), such agency or the
Board of Governors, as applicable, shall provide a written report to Congress
describing any actions taken in response to the recommendations in the report,
and if no such actions were taken, describing the reasons why no actions were
taken.</text>
</paragraph></subsection></section><section id="H5CC54A6D60744699B122667E437BFF37"><enum>212.</enum><header>Prohibition of
circumvention and prevention of conflicts of interest</header>
<subsection id="H83C051B5E68E48B9B279DC60761FC394"><enum>(a)</enum><header>No other
funding</header><text>Funds for the orderly liquidation of any covered
financial company under this title shall only be provided as specified under
this title.</text>
</subsection><subsection id="H368B656745F149DDACE864A17778E0DF"><enum>(b)</enum><header>Limit on
governmental actions</header><text>No governmental entity may take any action
to circumvent the purposes of this title.</text>
</subsection><subsection id="H8AE63EF001A5414F9CF3583DD56C1C45"><enum>(c)</enum><header>Conflict of
interest</header><text>In the event that the Corporation is appointed receiver
for more than 1 covered financial company or is appointed receiver for a
covered financial company and receiver for any insured depository institution
that is an affiliate of such covered financial company, the Corporation shall
take appropriate action, as necessary to avoid any conflicts of interest that
may arise in connection with multiple receiverships.</text>
</subsection></section><section id="H805A4559190C479A853572A94891D4A9"><enum>213.</enum><header>Ban on certain
activities by senior executives and directors</header>
<subsection id="H4AF1C3ED7BE846FC906C5E2532FEFA6A"><enum>(a)</enum><header>Prohibition
authority</header><text>The Board of Governors or, if the covered financial
company was not supervised by the Board of Governors, the Corporation, may
exercise the authority provided by this section.</text>
</subsection><subsection id="HF695A9A0C37D4B19AD71EC15D76E0C32"><enum>(b)</enum><header>Authority To
issue order</header><text>The appropriate agency described in subsection (a)
may take any action authorized by subsection (c), if the agency determines
that—</text>
<paragraph id="HAFD73D7350A745D9B5E816B71094707E"><enum>(1)</enum><text>a
senior executive or a director of the covered financial company, prior to the
appointment of the Corporation as receiver, has, directly or indirectly—</text>
<subparagraph id="H8A27F8564A09497E845A85730F1E35C7"><enum>(A)</enum><text>violated—</text>
<clause id="HD5088702DF5A479A8C1BC589B5DE4564"><enum>(i)</enum><text>any
law or regulation;</text>
</clause><clause id="HADB5E8CFF5EB448BA3EB8AD5A29A4D7F"><enum>(ii)</enum><text>any
cease-and-desist order which has become final;</text>
</clause><clause id="H5191C63023144E6A8C4FB4C6E41149B4"><enum>(iii)</enum><text>any condition
imposed in writing by a Federal agency in connection with any action on any
application, notice, or request by such company or senior executive; or</text>
</clause><clause id="H6303EF4A359E488586051DFED3BD2EF2"><enum>(iv)</enum><text>any
written agreement between such company and such agency;</text>
</clause></subparagraph><subparagraph id="H330B58F1C687440DA92E2D4122C7673C"><enum>(B)</enum><text>engaged or
participated in any unsafe or unsound practice in connection with any financial
company; or</text>
</subparagraph><subparagraph id="H7EDAD326093D4ECCBBABA2A81634C35A"><enum>(C)</enum><text>committed or
engaged in any act, omission, or practice which constitutes a breach of the
fiduciary duty of such senior executive or director;</text>
</subparagraph></paragraph><paragraph id="H7C4AE83EF68F4FAE8FF9129A4BC87F7A"><enum>(2)</enum><text>by reason of the
violation, practice, or breach described in any subparagraph of paragraph (1),
such senior executive or director has received financial gain or other benefit
by reason of such violation, practice, or breach and such violation, practice,
or breach contributed to the failure of the company; and</text>
</paragraph><paragraph id="HED320CA6592A4C4A973A140FDEE5DDF9"><enum>(3)</enum><text>such violation,
practice, or breach—</text>
<subparagraph id="HDEF7DBD77F374FDF821BC1D7960708FB"><enum>(A)</enum><text>involves personal
dishonesty on the part of such senior executive or director; or</text>
</subparagraph><subparagraph id="H042D3BE74937471AAE9DB8F62E578BC4"><enum>(B)</enum><text>demonstrates
willful or continuing disregard by such senior executive or director for the
safety or soundness of such company.</text>
</subparagraph></paragraph></subsection><subsection id="H399ADFF10D35407E8A326BF0DE5FE50E"><enum>(c)</enum><header>Authorized
actions</header>
<paragraph id="H233841ECB0C9408CB6965D23184458FE"><enum>(1)</enum><header>In
general</header><text>The appropriate agency for a financial company, as
described in subsection (a), may serve upon a senior executive or director
described in subsection (b) a written notice of the intention of the agency to
prohibit any further participation by such person, in any manner, in the
conduct of the affairs of any financial company for a period of time determined
by the appropriate agency to be commensurate with such violation, practice, or
breach, provided such period shall be not less than 2 years.</text>
</paragraph><paragraph id="H8160B226AF7A4BDFA316BE371F919E29"><enum>(2)</enum><header>Procedures</header><text>The
due process requirements and other procedures under section 8(e) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(e)) shall apply to actions under this
section as if the covered financial company were an insured depository
institution and the senior executive or director were an institution-affiliated
party, as those terms are defined in that Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA6CB94C4E19D40C4B4B5892717628D6D"><enum>(d)</enum><header>Regulations</header><text>The
Corporation and the Board of Governors, in consultation with the Council, shall
jointly prescribe rules or regulations to administer and carry out this
section, including rules, regulations, or guidelines to further define the term
senior executive for the purposes of this section.</text>
</subsection></section><section id="HD14DB22DF5DE40BD9CDD108F24EAEFAE"><enum>214.</enum><header>Prohibition on
taxpayer funding</header>
<subsection id="H2DBF3F2DD4FE403E928B1064EC8FB958"><enum>(a)</enum><header>Liquidation
required</header><text>All financial companies put into receivership under this
title shall be liquidated. No taxpayer funds shall be used to prevent the
liquidation of any financial company under this title.</text>
</subsection><subsection id="H71486F2D9E9A439AAA02D21371C1EE85"><enum>(b)</enum><header>Recovery of
funds</header><text>All funds expended in the liquidation of a financial
company under this title shall be recovered from the disposition of assets of
such financial company, or shall be the responsibility of the financial sector,
through assessments.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H54B5F0D467BD4BDB8711D2EE061C278F"><enum>(c)</enum><header>No losses to
taxpayers</header><text>Taxpayers shall bear no losses from the exercise of any
authority under this title.</text>
</subsection></section><section id="HF107E29C15404E42B8EDB2DD5CA06A37"><enum>215.</enum><header>Study on
secured creditor haircuts</header>
<subsection id="H8F151FA655614A73B512D24C3F6F9F39"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Council shall
conduct a study evaluating the importance of maximizing United States taxpayer
protections and promoting market discipline with respect to the treatment of
fully secured creditors in the utilization of the orderly liquidation authority
authorized by this Act. In carrying out such study, the Council shall—</text>
<paragraph id="H6AE92774E58544BD83952C12488B0506"><enum>(1)</enum><text>not be prejudicial
to current or past laws or regulations with respect to secured creditor
treatment in a resolution process;</text>
</paragraph><paragraph id="H8A269B5599B3423FA02C6100F5504C26"><enum>(2)</enum><text>study the
similarities and differences between the resolution mechanisms authorized by
the Bankruptcy Code, the Federal Deposit Insurance Corporation Improvement Act
of 1991, and the orderly liquidation authority authorized by this Act;</text>
</paragraph><paragraph id="H85D452DEC6A94DE6A094507CD4B8C744"><enum>(3)</enum><text>determine how
various secured creditors are treated in such resolution mechanisms and examine
how a haircut (of various degrees) on secured creditors could improve market
discipline and protect taxpayers;</text>
</paragraph><paragraph id="H9A029962273B4EB49B477FD6CC368B80"><enum>(4)</enum><text>compare the
benefits and dynamics of prudent lending practices by depository institutions
in secured loans for consumers and small businesses to the lending practices of
secured creditors to large, interconnected financial firms;</text>
</paragraph><paragraph id="H10E10D9BFB744010A2FB7D76AAF527DE"><enum>(5)</enum><text>consider whether
credit differs according to different types of collateral and different terms
and timing of the extension of credit; amd</text>
</paragraph><paragraph id="HC2C6F5A4BA114AF698DFF5F9F1957CE1"><enum>(6)</enum><text>include an
examination of stakeholders who were unsecured or under-collateralized and seek
collateral when a firm is failing, and the impact that such behavior has on
financial stability and an orderly resolution that protects taxpayers if the
firm fails.</text>
</paragraph></subsection><subsection id="H3F5479681A83457F8BFB79EF5B3D63C0"><enum>(b)</enum><header>Report</header><text>Not
later than the end of the 1-year period beginning on the date of enactment of
this Act, the Council shall issue a report to the Congress containing all
findings and conclusions made by the Council in carrying out the study required
under subsection (a).</text>
</subsection></section><section id="H699E4ABE776E43D991C98BDF4D5B049B"><enum>216.</enum><header>Study on
bankruptcy process for financial and nonbank financial institutions</header>
<subsection id="H8DDBD0CC7E2845E1A672B31029D02E60"><enum>(a)</enum><header>Study</header>
<paragraph id="HF313479003FA4E72AF26A800834D791A"><enum>(1)</enum><header>In
general</header><text>Upon enactment of this Act, the Board of Governors, in
consultation with the Administrative Office of the United States Courts, shall
conduct a study regarding the resolution of financial companies under the
Bankruptcy Code, under chapter 7 or 11 thereof .</text>
</paragraph><paragraph id="HB335A4D8EE2B42A2A5268E9F1B06544A"><enum>(2)</enum><header>Issues to be
studied</header><text>Issues to be studied under this section include—</text>
<subparagraph id="H8AE624EAAAF34F3DAD8AB483FEDC3626"><enum>(A)</enum><text>the effectiveness
of chapter 7 and chapter 11 of the Bankruptcy Code in facilitating the orderly
resolution or reorganization of systemic financial companies;</text>
</subparagraph><subparagraph id="H083EEA10A39C4BD99E2ED38B28EBC9F0"><enum>(B)</enum><text>whether a special
financial resolution court or panel of special masters or judges should be
established to oversee cases involving financial companies to provide for the
resolution of such companies under the Bankruptcy Code, in a manner that
minimizes adverse impacts on financial markets without creating moral
hazard;</text>
</subparagraph><subparagraph id="H89BD0D2D455F436B8B2003076E8AA42C"><enum>(C)</enum><text>whether amendments
to the Bankruptcy Code should be adopted to enhance the ability of the Code to
resolve financial companies in a manner that minimizes adverse impacts on
financial markets without creating moral hazard;</text>
</subparagraph><subparagraph id="HEB95AF5274D34D5DA2355AEBB942729C"><enum>(D)</enum><text>whether amendments
should be made to the Bankruptcy Code, the Federal Deposit Insurance Act, and
other insolvency laws to address the manner in which qualified financial
contracts of financial companies are treated; and</text>
</subparagraph><subparagraph id="HB553665D30A0479789C6988515191D8C"><enum>(E)</enum><text>the implications,
challenges, and benefits to creating a new chapter or subchapter of the
Bankruptcy Code to deal with financial companies.</text>
</subparagraph></paragraph></subsection><subsection id="HB8141BA635D045BC88198B4E6C58ADA6"><enum>(b)</enum><header>Reports to
Congress</header><text>Not later than 1 year after the date of enactment of
this Act, and in each successive year until the fifth year after the date of
enactment of this Act, the Administrative Office of the United States courts
shall submit to the Committees on Banking, Housing, and Urban Affairs and the
Judiciary of the Senate and the Committees on Financial Services and the
Judiciary of the House of Representatives a report summarizing the results of
the study conducted under subsection (a).</text>
</subsection></section><section id="H89B8A6E44285442394290688D531E6D7"><enum>217.</enum><header>Study on
international coordination relating to bankruptcy process for nonbank financial
institutions</header>
<subsection id="HB771E8FC7CB6403AA8A3AEE9CA218DEC"><enum>(a)</enum><header>Study</header>
<paragraph id="HA527703852EF4BFB83A5B758B66CEC27"><enum>(1)</enum><header>In
general</header><text>The Board of Governors, in consultation with the
Administrative Office of the United States Courts, shall conduct a study
regarding international coordination relating to the resolution of systemic
financial companies under the United States Bankruptcy Code and applicable
foreign law.</text>
</paragraph><paragraph id="H7F8DD36C7CBC41648F6FA84266900E5B"><enum>(2)</enum><header>Issues to be
studied</header><text>With respect to the bankruptcy process for financial
companies, issues to be studied under this section include—</text>
<subparagraph id="H715FB689E7B347F699F5C922AEAEA8F8"><enum>(A)</enum><text>the extent to
which international coordination currently exists;</text>
</subparagraph><subparagraph id="H7FD19B03DDD74069B3BF9B0CE02B9C1E"><enum>(B)</enum><text>current mechanisms
and structures for facilitating international cooperation;</text>
</subparagraph><subparagraph id="H6326362276F1497BAA9D13DAAE2B641A"><enum>(C)</enum><text>barriers to
effective international coordination; and</text>
</subparagraph><subparagraph id="H4573A7EFA2AC41C1B4E5DD56DEF3A514"><enum>(D)</enum><text>ways to increase
and make more effective international coordination of the resolution of
financial companies, so as to minimize the impact on the financial system
without creating moral hazard.</text>
</subparagraph></paragraph></subsection><subsection id="H82834A0A168C407381C8D2E706A1BBD8"><enum>(b)</enum><header>Report to
Congress</header><text>Not later than 1 year after the date of enactment of
this Act, the Administrative office of the United States Courts shall submit to
the Committees on Banking, Housing, and Urban Affairs and the Judiciary of the
Senate and the Committees on Financial Services and the Judiciary of the House
of Representatives a report summarizing the results of the study conducted
under subsection (a).</text>
</subsection></section><enum>III</enum><header>Transfer of
powers to the Comptroller of the Currency, the Corporation, and the Board of
Governors</header>
<section id="H47678ACA18454557A515953B469D5527"><enum>300.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Enhancing Financial Institution Safety and Soundness Act of
2010</quote>.</text>
</section><section id="H2E23A762FBB14B239F68B7D148DBB055"><enum>301.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this title are—</text>
<paragraph id="H6C80AEA98DB44965A70AE9B4D4DCB511"><enum>(1)</enum><text>to provide for the
safe and sound operation of the banking system of the United States;</text>
</paragraph><paragraph id="HBC32F6C5B4F9484895BC4D92126C592E"><enum>(2)</enum><text>to preserve and
protect the dual system of Federal and State-chartered depository
institutions;</text>
</paragraph><paragraph id="HF31CD3F6375B45ACA8AFEA2324A189CC"><enum>(3)</enum><text>to ensure the fair
and appropriate supervision of each depository institution, regardless of the
size or type of charter of the depository institution; and</text>
</paragraph><paragraph id="HE7CBF047CC0B4178AF7293B998059152"><enum>(4)</enum><text>to streamline and
rationalize the supervision of depository institutions and the holding
companies of depository institutions.</text>
</paragraph></section><section id="HC71590242B2D4981935E30BC32D6AFF0"><enum>302.</enum><header>Definition</header><text display-inline="no-display-inline">In this title, the term <term>transferred
employee</term> means, as the context requires, an employee transferred to the
Office of the Comptroller of the Currency or the Corporation under section
322.</text>
</section><subtitle id="H58BE39458430483B9577A0DFB01E9CC4"><enum>A</enum><header>Transfer of powers
and duties</header>
<section id="HFA945A5C0C474B7BBFC6B3C01EF6C1BD"><enum>311.</enum><header>Transfer
date</header>
<subsection id="H76DA0AF9DCC5440D9A5B9500D908E637"><enum>(a)</enum><header>Transfer
date</header><text>Except as provided in subsection (b), the term
<term>transfer date</term> means the date that is 1 year after the date of
enactment of this Act.</text>
</subsection><subsection id="H4A9CA663FB424C6EA52A308C78B6030C"><enum>(b)</enum><header>Extension
permitted</header>
<paragraph id="H3191143C73A24389A35B903AD49B75EB"><enum>(1)</enum><header>Notice
required</header><text>The Secretary, in consultation with the Comptroller of
the Currency, the Director of the Office of Thrift Supervision, the Chairman of
the Board of Governors, and the Chairperson of the Corporation, may extend the
period under subsection (a) and designate a transfer date that is not later
than 18 months after the date of enactment of this Act, if the Secretary
transmits to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives—</text>
<subparagraph id="H5FE02C182B504F42B4362AD9F101F491"><enum>(A)</enum><text>a written
determination that commencement of the orderly process to implement this title
is not feasible by the date that is 1 year after the date of enactment of this
Act;</text>
</subparagraph><subparagraph id="HB0B74DECF0194BB2BC7E72695C9E70CA"><enum>(B)</enum><text>an explanation of
why an extension is necessary to commence the process of orderly implementation
of this title;</text>
</subparagraph><subparagraph id="HB2DC44146AE1414AAAF1213595C466BC"><enum>(C)</enum><text>the transfer date
designated under this subsection; and</text>
</subparagraph><subparagraph id="H9E41727D0DAF4F86844ED3149E792208"><enum>(D)</enum><text>a description of
the steps that will be taken to initiate the process of an orderly and timely
implementation of this title within the extended time period.</text>
</subparagraph></paragraph><paragraph id="H200D828C8DD74F678DFFEAEF23013614"><enum>(2)</enum><header>Publication of
notice</header><text>Not later than 270 days after the date of enactment of
this Act, the Secretary shall publish in the Federal Register notice of any
transfer date designated under paragraph (1).</text>
</paragraph></subsection></section><section id="HDB1DC50FC7494229B5E5C9B61B68DF29"><enum>312.</enum><header>Powers and
duties transferred</header>
<subsection id="H0BD1DD7ED365485F9D424A33C033D0DC"><enum>(a)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection><subsection id="H63590248864E4BA6A1463342D51A6D4D"><enum>(b)</enum><header>Functions of the
Office of Thrift Supervision</header>
<paragraph id="H2004E6D7FA454FD5ABD118238494AAB7"><enum>(1)</enum><header>Savings and loan
holding company functions transferred</header>
<subparagraph id="HF58098C1345A44E6974C6C099566DC88"><enum>(A)</enum><header>Transfer of
functions</header><text>There are transferred to the Board of Governors all
functions of the Office of Thrift Supervision and the Director of the Office of
Thrift Supervision (including the authority to issue orders) relating
to—</text>
<clause id="HECC73D01273B4CECA7087420AF418A58"><enum>(i)</enum><text>the
supervision of—</text>
<subclause id="HA23D8FF8D1874714A5E74A91FB02C2C2"><enum>(I)</enum><text>any savings and
loan holding company; and</text>
</subclause><subclause id="H29E764B2C65840559D02EB6C41C10AAD"><enum>(II)</enum><text>any subsidiary
(other than a depository institution) of a savings and loan holding company;
and</text>
</subclause></clause><clause id="H782CD36A8370484D85A42353E219B86A"><enum>(ii)</enum><text>all
rulemaking authority of the Office of Thrift Supervision and the Director of
the Office of Thrift Supervision relating to savings and loan holding
companies.</text>
</clause></subparagraph><subparagraph id="HF45CC0B1BF2C4FD583F134B7CD20E625"><enum>(B)</enum><header>Powers,
authorities, rights, and duties</header><text>The Board of Governors shall
succeed to all powers, authorities, rights, and duties that were vested in the
Office of Thrift Supervision and the Director of the Office of Thrift
Supervision on the day before the transfer date relating to the functions and
authority transferred under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="HFEA58893830547BE9F80CBFF5373AB50"><enum>(2)</enum><header>All other
functions transferred</header>
<subparagraph id="HD5C33BC99CD74129B6D6393D44AD4FAC"><enum>(A)</enum><header>Board of
Governors</header><text>All rulemaking authority of the Office of Thrift
Supervision and the Director of the Office of Thrift Supervision under section
11 of the Home Owners’ Loan Act (12 U.S.C. 1468) relating to transactions with
affiliates and extensions of credit to executive officers, directors, and
principal shareholders and under section 5(q) of such Act relating to tying
arrangements is transferred to the Board of Governors.</text>
</subparagraph><subparagraph id="HAA33D0FADB73408394A0934FA88DBDBB"><enum>(B)</enum><header>Comptroller of
the Currency</header><text>Except as provided in paragraph (1) and subparagraph
(A)—</text>
<clause id="H167A180483C64024A0D07034D65311A4"><enum>(i)</enum><text>there are
transferred to the Office of the Comptroller of the Currency and the
Comptroller of the Currency—</text>
<subclause id="H1E76EE310AC94376A0E8732D19455444"><enum>(I)</enum><text>all functions of
the Office of Thrift Supervision and the Director of the Office of Thrift
Supervision, respectively, relating to Federal savings associations; and</text>
</subclause><subclause id="H839E8FFB6F8844918B0A767F7F0E2237"><enum>(II)</enum><text>all rulemaking
authority of the Office of Thrift Supervision and the Director of the Office of
Thrift Supervision, respectively, relating to savings associations; and</text>
</subclause></clause><clause id="HF008BC4AA9A340FB9DF129C802AA7AE2"><enum>(ii)</enum><text>the
Office of the Comptroller of the Currency and the Comptroller of the Currency
shall succeed to all powers, authorities, rights, and duties that were vested
in the Office of Thrift Supervision and the Director of the Office of Thrift
Supervision, respectively, on the day before the transfer date relating to the
functions and authority transferred under clause (i).</text>
</clause></subparagraph><subparagraph id="H615DD7B6C7324FFCA8F4828882BE2291"><enum>(C)</enum><header>Corporation</header><text>Except
as provided in paragraph (1) and subparagraphs (A) and (B)—</text>
<clause id="H3F1B68AB9DB94685AEAA128BF0B4D21B"><enum>(i)</enum><text>all
functions of the Office of Thrift Supervision and the Director of the Office of
Thrift Supervision relating to State savings associations are transferred to
the Corporation; and</text>
</clause><clause id="HA82C9A23D8664EE08C6C09011CC61320"><enum>(ii)</enum><text>the
Corporation shall succeed to all powers, authorities, rights, and duties that
were vested in the Office of Thrift Supervision and the Director of the Office
of Thrift Supervision on the day before the transfer date relating to the
functions transferred under clause (i).</text>
</clause></subparagraph></paragraph></subsection><subsection id="HFC74E2E663BA4BCC9E0FAA6715F80811"><enum>(c)</enum><header>Conforming
amendments</header><text>Section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813) is amended—</text>
<paragraph id="H64CE2A33F86643BDB4C04E355310EA0C"><enum>(1)</enum><text>in subsection (q),
by striking paragraphs (1) through (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H1331A6EDB77149F6A94D74CD5D1B9BB0" style="OLC">
<paragraph id="HE2E08F1CFE574822A25B55850D185F52"><enum>(1)</enum><text>the Office of the
Comptroller of the Currency, in the case of—</text>
<subparagraph id="H89254766F3BC4B1AACFD3FF0096DB349"><enum>(A)</enum><text>any national
banking association;</text>
</subparagraph><subparagraph id="H7C5D9AA56F1641149B4681E7FFA55A3E"><enum>(B)</enum><text>any Federal branch
or agency of a foreign bank; and</text>
</subparagraph><subparagraph id="H730EACE0609E4549A070AB58920C6468"><enum>(C)</enum><text>any Federal
savings association;</text>
</subparagraph></paragraph><paragraph id="H22215929E87C45B2962897ECA1E892D4"><enum>(2)</enum><text>the Federal
Deposit Insurance Corporation, in the case of—</text>
<subparagraph id="H0710AB53958F4622BD7D8BC6E87626F7"><enum>(A)</enum><text>any State
nonmember insured bank;</text>
</subparagraph><subparagraph id="H5A5A4A3393F74C0BB4DE930E8B0B9852"><enum>(B)</enum><text>any foreign bank
having an insured branch; and</text>
</subparagraph><subparagraph id="H435E5AF6A65444AB8E620F499F9CA8C5"><enum>(C)</enum><text>any State savings
association;</text>
</subparagraph></paragraph><paragraph id="HCAEE6F4E5E8E4A4F8EC1ECB35956AF52"><enum>(3)</enum><text>the Board of
Governors of the Federal Reserve System, in the case of—</text>
<subparagraph id="H8877F6A215C54BC6BA6B6AE9F618AEFB"><enum>(A)</enum><text>any State member
bank;</text>
</subparagraph><subparagraph id="H39C0424D4A8648D7AF90E4426D12A826"><enum>(B)</enum><text>any branch or
agency of a foreign bank with respect to any provision of the Federal Reserve
Act which is made applicable under the International Banking Act of
1978;</text>
</subparagraph><subparagraph id="H40CE79E6F2E846B2B1D1EC730C085BC8"><enum>(C)</enum><text>any foreign bank
which does not operate an insured branch;</text>
</subparagraph><subparagraph id="HCA6970814283465BA91D94E7622A42F6"><enum>(D)</enum><text>any agency or
commercial lending company other than a Federal agency;</text>
</subparagraph><subparagraph id="HD372B99AB3A945AD93036A79CBED619E"><enum>(E)</enum><text>supervisory or
regulatory proceedings arising from the authority given to the Board of
Governors under section 7(c)(1) of the International Banking Act of 1978,
including such proceedings under the Financial Institutions Supervisory Act of
1966;</text>
</subparagraph><subparagraph id="HBB23C642315B4820B5001E66D752ED55"><enum>(F)</enum><text>any bank holding
company and any subsidiary (other than a depository institution) of a bank
holding company; and</text>
</subparagraph><subparagraph id="HB9D0DF2D33824584947F6AC1E926A806"><enum>(G)</enum><text>any savings and
loan holding company and any subsidiary (other than a depository institution)
of a savings and loan holding company.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H511BF1F2854C440C832CBCB24290C848"><enum>(2)</enum><text>in paragraphs (1)
and (3) of subsection (u), by striking <quote>(other than a bank holding
company</quote> and inserting <quote>(other than a bank holding company or
savings and loan holding company</quote>.</text>
</paragraph></subsection><subsection id="H647B9C75F26440EFA961A8A64A40BBBD"><enum>(d)</enum><header>Consumer
protection</header><text>Nothing in this section may be construed to limit or
otherwise affect the transfer of powers under title X.</text>
</subsection></section><section id="HD21A35D96C1D4642A91C5C031A5AAEC1"><enum>313.</enum><header>Abolishment</header><text display-inline="no-display-inline">Effective 90 days after the transfer date,
the Office of Thrift Supervision and the position of Director of the Office of
Thrift Supervision are abolished.</text>
</section><section id="HEC2BD38005564081BFCB37802390E028"><enum>314.</enum><header>Amendments to
the revised statutes</header>
<subsection id="HD41D467B9A2A4D5DB38AFFC55C3581A9"><enum>(a)</enum><header>Amendment to
section 324</header><text>Section 324 of the Revised Statutes of the United
States (12 U.S.C. 1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H7791EAF8AF8B4C99B95E06EC1653F5EA" style="OLC">
<section id="H93BC27D78C894E3A84D13C23B3CCC88F"><enum>324.</enum><header>Comptroller of
the Currency</header>
<subsection id="H1C5435DA4321476597854E43EA603426"><enum>(a)</enum><header>Office of the
Comptroller of the Currency established</header><text display-inline="yes-display-inline">There is established in the Department of
the Treasury a bureau to be known as the <quote>Office of the Comptroller of
the Currency</quote> which is charged with assuring the safety and soundness
of, and compliance with laws and regulations, fair access to financial
services, and fair treatment of customers by, the institutions and other
persons subject to its jurisdiction.</text>
</subsection><subsection id="HD509E7E82C8F430C874B9EF95CF49F0C"><enum>(b)</enum><header>Comptroller of
the Currency</header>
<paragraph id="H51A841B20FD045AAB7D3C20D0BA8BFF3"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The chief officer of
the Office of the Comptroller of the Currency shall be known as the Comptroller
of the Currency. The Comptroller of the Currency shall perform the duties of
the Comptroller of the Currency under the general direction of the Secretary of
the Treasury. The Secretary of the Treasury may not delay or prevent the
issuance of any rule or the promulgation of any regulation by the Comptroller
of the Currency, and may not intervene in any matter or proceeding before the
Comptroller of the Currency (including agency enforcement actions), unless
otherwise specifically provided by law.</text>
</paragraph><paragraph id="H1AA7261FFBB945DEBA3169A0E8C39074"><enum>(2)</enum><header>Additional
authority</header><text display-inline="yes-display-inline">The Comptroller of
the Currency shall have the same authority with respect to functions
transferred to the Comptroller of the Currency under the Enhancing Financial
Institution Safety and Soundness Act of 2010 as was vested in the Director of
the Office of Thrift Supervision on the transfer date, as defined in section
311 of that
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H46D4B0204AB9486C802303E0E4F1228B"><enum>(b)</enum><header>Supervision of
Federal savings associations</header><text>Chapter 9 of title VII of the
Revised Statutes of the United States (12 U.S.C. 1 et seq.) is amended by
inserting after section 327A (12 U.S.C. 4a) the following:</text>
<quoted-block display-inline="no-display-inline" id="H6D596E854D1340719E49E9E355F8D5B5" style="OLC">
<section id="H2CDCEFE1C2BB4798AFBA5617D4ABD03E"><enum>327B.</enum><header>Deputy
Comptroller for the supervision and examination of Federal savings
associations</header><text display-inline="no-display-inline">The Comptroller
of the Currency shall designate a Deputy Comptroller, who shall be responsible
for the supervision and examination of Federal savings
associations.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBDF54755674D4754B07EA4FF147B2481"><enum>(c)</enum><header>Amendment to
section 329</header><text>Section 329 of the Revised Statutes of the United
States (12 U.S.C. 11) is amended by inserting before the period at the end the
following: <quote>or any Federal savings association</quote>.</text>
</subsection><subsection id="HB85C87BB2A4B440A954F9FEE417CD9C4"><enum>(d)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section><section id="H09D74F2AC39B407890361C3524D2ED63"><enum>315.</enum><header>Federal
information policy</header><text display-inline="no-display-inline">Section
3502(5) of title 44, United States Code, is amended by inserting <quote>Office
of the Comptroller of the Currency,</quote> after <quote>the Securities and
Exchange Commission,</quote>.</text>
</section><section id="H02E5AD5387DC4B3E8BEEEBBCFF853ABA"><enum>316.</enum><header>Savings
provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="H757DC031A2554218A019D596C4184143"><enum>(a)</enum><header display-inline="yes-display-inline">Office of thrift supervision</header>
<paragraph commented="no" display-inline="no-display-inline" id="H52C49E8048554A79B3DA9310A504C651"><enum>(1)</enum><header display-inline="yes-display-inline">Existing rights, duties, and obligations
not affected</header><text display-inline="yes-display-inline">Sections 312(b)
and 313 shall not affect the validity of any right, duty, or obligation of the
United States, the Director of the Office of Thrift Supervision, the Office of
Thrift Supervision, or any other person, that existed on the day before the
transfer date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA83445471298491CB60B1BC4A9ADD191"><enum>(2)</enum><header display-inline="yes-display-inline">Continuation of suits</header><text display-inline="yes-display-inline">This title shall not abate any action or
proceeding commenced by or against the Director of the Office of Thrift
Supervision or the Office of Thrift Supervision before the transfer date,
except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H126337E469C44D0AAF24FB9D54114673"><enum>(A)</enum><text display-inline="yes-display-inline">for any action or proceeding arising out of
a function of the Office of Thrift Supervision or the Director of the Office of
Thrift Supervision transferred to the Board of Governors by this title, the
Board of Governors shall be substituted for the Office of Thrift Supervision or
the Director of the Office of Thrift Supervision as a party to the action or
proceeding on and after the transfer date;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB71F8AC257374D0192B78432BC02D57F"><enum>(B)</enum><text display-inline="yes-display-inline">for any action or proceeding arising out of
a function of the Office of Thrift Supervision or the Director of the Office of
Thrift Supervision transferred to the Office of the Comptroller of the Currency
or the Comptroller of the Currency by this title, the Office of the Comptroller
of the Currency or the Comptroller of the Currency shall be substituted for the
Office of Thrift Supervision or the Director of the Office of Thrift
Supervision, as the case may be, as a party to the action or proceeding on and
after the transfer date; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H040F025C1FD9437AAEC207E16A92AB32"><enum>(C)</enum><text display-inline="yes-display-inline">for any action or proceeding arising out of
a function of the Office of Thrift Supervision or the Director of the Office of
Thrift Supervision transferred to the Corporation by this title, the
Corporation shall be substituted for the Office of Thrift Supervision or the
Director of the Office of Thrift Supervision as a party to the action or
proceeding on and after the transfer date.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0A15B63E36D94A04B313E1F790879C9B"><enum>(b)</enum><header display-inline="yes-display-inline">Continuation of existing OTS orders,
resolutions, determinations, agreements, regulations, etc</header><text display-inline="yes-display-inline">All orders, resolutions, determinations,
agreements, and regulations, interpretative rules, other interpretations,
guidelines, procedures, and other advisory materials, that have been issued,
made, prescribed, or allowed to become effective by the Office of Thrift
Supervision or the Director of the Office of Thrift Supervision, or by a court
of competent jurisdiction, in the performance of functions that are transferred
by this title and that are in effect on the day before the transfer date, shall
continue in effect according to the terms of such orders, resolutions,
determinations, agreements, and regulations, interpretative rules, other
interpretations, guidelines, procedures, and other advisory materials, and
shall be enforceable by or against—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEDD23E0231104F4F8BDF734C447BF931"><enum>(1)</enum><text display-inline="yes-display-inline">the Board of Governors, in the case of a
function of the Office of Thrift Supervision or the Director of the Office of
Thrift Supervision transferred to the Board of Governors, until modified,
terminated, set aside, or superseded in accordance with applicable law by the
Board of Governors, by any court of competent jurisdiction, or by operation of
law;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1376E73B5E904A1FBC73E6489BD07EC8"><enum>(2)</enum><text display-inline="yes-display-inline">the Office of the Comptroller of the
Currency or the Comptroller of the Currency, in the case of a function of the
Office of Thrift Supervision or the Director of the Office of Thrift
Supervision transferred to the Office of the Comptroller of the Currency or the
Comptroller of the Currency, respectively, until modified, terminated, set
aside, or superseded in accordance with applicable law by the Office of the
Comptroller of the Currency or the Comptroller of the Currency, by any court of
competent jurisdiction, or by operation of law; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6C05EAE64F434E6B8ED7D3095B57E5C7"><enum>(3)</enum><text display-inline="yes-display-inline">the Corporation, in the case of a function
of the Office of Thrift Supervision or the Director of the Office of Thrift
Supervision transferred to the Corporation, until modified, terminated, set
aside, or superseded in accordance with applicable law by the Corporation, by
any court of competent jurisdiction, or by operation of law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAB6D0C00BEFA4018A868FB228807184B"><enum>(c)</enum><header display-inline="yes-display-inline">Identification of regulations
continued</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8781D147CEDB4917AB11CB741A56D3C0"><enum>(1)</enum><header display-inline="yes-display-inline">By the Board of Governors</header><text>Not
later than the transfer date, the Board of Governors shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA0BF2B0E2434270B6E55BB1ACCB7756"><enum>(A)</enum><text>identify the
regulations continued under subsection (b) that will be enforced by the Board
of Governors; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H404B79C424F44934982383829E587342"><enum>(B)</enum><text>publish a list of
the regulations identified under subparagraph (A) in the Federal
Register.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2BD59799F88E4BCE8285057AD7C2B9E8"><enum>(2)</enum><header display-inline="yes-display-inline">By office of the comptroller of the
currency</header><text display-inline="yes-display-inline">Not later than the
transfer date, the Office of the Comptroller of the Currency shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H25E26CDED2D34376B6FCC4455E73E307"><enum>(A)</enum><text display-inline="yes-display-inline">after consultation with the Corporation,
identify the regulations continued under subsection (b) that will be enforced
by the Office of the Comptroller of the Currency; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H34358588554C4810A7CFC0D4524C48E4"><enum>(B)</enum><text display-inline="yes-display-inline">publish a list of the regulations
identified under subparagraph (A) in the Federal Register.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06F921393D60406B94F584674B2592C2"><enum>(3)</enum><header display-inline="yes-display-inline">By the corporation</header><text display-inline="yes-display-inline">Not later than the transfer date, the
Corporation shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD0C33F290B15467F9FE37EE9D2250212"><enum>(A)</enum><text display-inline="yes-display-inline">after consultation with the Office of the
Comptroller of the Currency, identify the regulations continued under
subsection (b) that will be enforced by the Corporation; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCD16CA2EAFB44D01BABE444EF74E93F5"><enum>(B)</enum><text display-inline="yes-display-inline">publish a list of the regulations
identified under subparagraph (A) in the Federal Register.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC29C5EEF0A594ED1ADD3DFD0270CE448"><enum>(d)</enum><header display-inline="yes-display-inline">Status of regulations proposed or not yet
effective</header>
<paragraph commented="no" display-inline="no-display-inline" id="H768879B220CB4052B5D3761F23D1E954"><enum>(1)</enum><header display-inline="yes-display-inline">Proposed regulations</header><text display-inline="yes-display-inline">Any proposed regulation of the Office of
Thrift Supervision, which the Office of Thrift Supervision in performing
functions transferred by this title, has proposed before the transfer date but
has not published as a final regulation before such date, shall be deemed to be
a proposed regulation of the Office of the Comptroller of the Currency or the
Board of Governors, as appropriate, according to the terms of the proposed
regulation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CEA53124138438AA89B762EEACED67E"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations not yet effective</header><text display-inline="yes-display-inline">Any interim or final regulation of the
Office of Thrift Supervision, which the Office of Thrift Supervision, in
performing functions transferred by this title, has published before the
transfer date but which has not become effective before that date, shall become
effective as a regulation of the Office of the Comptroller of the Currency or
the Board of Governors, as appropriate, according to the terms of the interim
or final regulation, unless modified, terminated, set aside, or superseded in
accordance with applicable law by the Office of the Comptroller of the Currency
or the Board of Governors, as appropriate, by any court of competent
jurisdiction, or by operation of law.</text>
</paragraph></subsection></section><section id="HBAB9ACAFA548442D96713690AE2F2B2B"><enum>317.</enum><header>References in
Federal law to Federal banking agencies</header><text display-inline="no-display-inline">On and after the transfer date, any
reference in Federal law to the Director of the Office of Thrift Supervision or
the Office of Thrift Supervision, in connection with any function of the
Director of the Office of Thrift Supervision or the Office of Thrift
Supervision transferred under section 312(b) or any other provision of this
subtitle, shall be deemed to be a reference to the Comptroller of the Currency,
the Office of the Comptroller of the Currency, the Chairperson of the
Corporation, the Corporation, the Chairman of the Board of Governors, or the
Board of Governors, as appropriate and consistent with the amendments made in
subtitle E.</text>
</section><section id="H8F5A70D21A7D43E0B4C631EE8112CA3C"><enum>318.</enum><header>Funding</header>
<subsection id="HEE78866671DD4FF5A65E98E762464BEB"><enum>(a)</enum><header>Compensation of
examiners</header><text>Section 5240 of the Revised Statutes of the United
States (12 U.S.C. 481 et seq.) is amended—</text>
<paragraph id="H4357E74D30544ADFAD0F582A00E9B215"><enum>(1)</enum><text>in the second
undesignated paragraph (12 U.S.C. 481), in the fourth sentence, by striking
<quote>without regard to the provisions of other laws applicable to officers or
employees of the United States</quote> and inserting the following: <quote>set
and adjusted subject to chapter 71 of title 5, United States Code, and without
regard to the provisions of other laws applicable to officers or employees of
the United States</quote>; and</text>
</paragraph><paragraph id="HF0C2E49A259E4FE4936F704B275D2B9F"><enum>(2)</enum><text>in the third
undesignated paragraph (12 U.S.C. 482), in the first sentence, by striking
<quote>shall fix</quote> and inserting <quote>shall, subject to chapter 71 of
title 5, United States Code, fix</quote>.</text>
</paragraph></subsection><subsection id="HA49E18545CBF43138240DA2D188B3479"><enum>(b)</enum><header>Funding of
Office of the Comptroller of the Currency</header><text>Chapter 4 of title LXII
of the Revised Statutes is amended by inserting after section 5240 (12 U.S.C.
481, 482) the following:</text>
<quoted-block display-inline="no-display-inline" id="H28591F481F9D4DC89CB8E130827E8106" style="traditional">
<section id="HA1825A4BFDC14FDB8F778618BC63BE81"><enum>5240A.</enum><text>The Comptroller
of the Currency may collect an assessment, fee, or other charge from any entity
described in section 3(q)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q)(1)), as the Comptroller determines is necessary or appropriate to carry
out the responsibilities of the Office of the Comptroller of the Currency. In
establishing the amount of an assessment, fee, or charge collected from an
entity under this section, the Comptroller of the Currency may take into
account the nature and scope of the activities of the entity, the amount and
type of assets that the entity holds, the financial and managerial condition of
the entity, and any other factor, as the Comptroller of the Currency determines
is appropriate. Funds derived from any assessment, fee, or charge collected or
payment made pursuant to this section may be deposited by the Comptroller of
the Currency in accordance with the provisions of section 5234. Such funds
shall not be construed to be Government funds or appropriated monies, and shall
not be subject to apportionment for purposes of chapter 15 of title 31, United
States Code, or any other provision of law. The authority of the Comptroller of
the Currency under this section shall be in addition to the authority under
section 5240.</text>
<subsection id="H0BAF717F49EA41AC999D1E88726B4B11"><enum></enum><text>The
Comptroller of the Currency shall have sole authority to determine the manner
in which the obligations of the Office of the Comptroller of the Currency shall
be incurred and its disbursements and expenses allowed and paid, in accordance
with this section, except as provided in chapter 71 of title 5, United States
Code (with respect to
compensation).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD27F44B94ACF4C4FAE285F274C3E5DA5"><enum>(c)</enum><header>Funding of Board
of Governors</header><text display-inline="yes-display-inline">Section 11 of
the Federal Reserve Act (12 U.S.C. 248) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HCED3AD13221541488DFCCE9A6764128C" style="OLC">
<subsection id="HD2DF36154EE04F0692AD0D44E768F714"><enum>(s)</enum><header>Assessments,
fees, and other charges for certain companies</header>
<paragraph id="H51D5356085B74FE5944D0D3ED2AC8A62"><enum>(1)</enum><header>In
general</header><text>The Board shall collect a total amount of assessments,
fees, or other charges from the companies described in paragraph (2) that is
equal to the total expenses the Board estimates are necessary or appropriate to
carry out the supervisory and regulatory responsibilities of the Board with
respect to such companies.</text>
</paragraph><paragraph id="H62AC168B0FF64785B701CF8BE50305EA"><enum>(2)</enum><header>Companies</header><text>The
companies described in this paragraph are—</text>
<subparagraph id="H94308ECAFD8C451E815DAD44EB3F6AF9"><enum>(A)</enum><text>all bank holding
companies having total consolidated assets of $50,000,000,000 or more;</text>
</subparagraph><subparagraph id="HB701E60DD0734CB5AE5A89A816079CE8"><enum>(B)</enum><text>all savings and
loan holding companies having total consolidated assets of $50,000,000,000 or
more; and</text>
</subparagraph><subparagraph id="H08D891D3C18049F49A6C6E977EB5E2AE"><enum>(C)</enum><text>all nonbank
financial companies supervised by the Board under section 113 of the Dodd-Frank
Wall Street Reform and Consumer Protection
Act.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBE0AFA7C47A442D6887798F344CA2E83"><enum>(d)</enum><header>Corporation
examination fees</header><text>Section 10(e) of the Federal Deposit Insurance
Act (12 U.S.C. 1820(e)) is amended by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H48A1BD94D92B49518C2DED634DDC35B5" style="OLC">
<paragraph id="H54D3092B957A4A15B0BE1B51EF159860"><enum>(1)</enum><header>Regular and
special examinations of depository institutions</header><text>The cost of
conducting any regular examination or special examination of any depository
institution under subsection (b)(2), (b)(3), or (d) or of any entity described
in section 3(q)(2) may be assessed by the Corporation against the institution
or entity to meet the expenses of the Corporation in carrying out such
examinations.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5C7B849453BF44469F6CE921A22D7856"><enum>(e)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section><section id="H686799EC9D6148A58193B2890668D86F"><enum>319.</enum><header>Contracting and
leasing authority</header><text display-inline="no-display-inline">Notwithstanding the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or any other
provision of law (except the full and open competition requirements of the
Competition in Contracting Act), the Office of the Comptroller of the Currency
may—</text>
<paragraph id="H0C83B728799F437D8528253A651C7100"><enum>(1)</enum><text>enter into and
perform contracts, execute instruments, and acquire real property (or property
interest) as the Comptroller deems necessary to carry out the duties and
responsibilities of the Office of the Comptroller of the Currency; and</text>
</paragraph><paragraph id="H8685A08A86F1496E8A5F8787F3FF2348"><enum>(2)</enum><text>hold, maintain,
sell, lease, or otherwise dispose of the property (or property interest)
acquired under paragraph (1).</text>
</paragraph></section></subtitle><subtitle id="HEBCF7460A8C148779E7F415A9D052285"><enum>B</enum><header>Transitional
provisions</header>
<section id="HF1142DFB793B4B7FA9A0614F44D6CEEF"><enum>321.</enum><header>Interim use of
funds, personnel, and property of the Office of Thrift Supervision</header>
<subsection id="HA528E3A17D7C483BBFBD7A4FEB2D9D0A"><enum>(a)</enum><header>In
general</header><text>Before the transfer date, the Office of the Comptroller
of the Currency, the Corporation, and the Board of Governors shall—</text>
<paragraph id="HC9BB961F381C4BA3B8CB5AB3F1AB0F57"><enum>(1)</enum><text>consult and
cooperate with the Office of Thrift Supervision to facilitate the orderly
transfer of functions to the Office of the Comptroller of the Currency, the
Corporation, and the Board of Governors in accordance with this title;</text>
</paragraph><paragraph id="HB07584AE3FE743DDA581A7F776634E51"><enum>(2)</enum><text>determine jointly,
from time to time—</text>
<subparagraph id="H66B4BCBF5CDC4E7D8EE71033E4387535"><enum>(A)</enum><text>the amount of
funds necessary to pay any expenses associated with the transfer of functions
(including expenses for personnel, property, and administrative services)
during the period beginning on the date of enactment of this Act and ending on
the transfer date;</text>
</subparagraph><subparagraph id="H79CA26529B07472997A269E8252AA074"><enum>(B)</enum><text>which personnel
are appropriate to facilitate the orderly transfer of functions by this title;
and</text>
</subparagraph><subparagraph id="HE18A81B288B9448B934FECFDF9CCEFB7"><enum>(C)</enum><text>what property and
administrative services are necessary to support the Office of the Comptroller
of the Currency, the Corporation, and the Board of Governors during the period
beginning on the date of enactment of this Act and ending on the transfer date;
and</text>
</subparagraph></paragraph><paragraph id="H66D128181D3441DCAC93A6A84AF58CDB"><enum>(3)</enum><text>take such actions
as may be necessary to provide for the orderly implementation of this
title.</text>
</paragraph></subsection><subsection id="H9B1090A4832347388518C480C8F4B084"><enum>(b)</enum><header>Agency
consultation</header><text>When requested jointly by the Office of the
Comptroller of the Currency, the Corporation, and the Board of Governors to do
so before the transfer date, the Office of Thrift Supervision shall—</text>
<paragraph id="H49C6142C3DF04E7CB862E0EDBB1843E0"><enum>(1)</enum><text>pay to the Office
of the Comptroller of the Currency, the Corporation, or the Board of Governors,
as applicable, from funds obtained by the Office of Thrift Supervision through
assessments, fees, or other charges that the Office of Thrift Supervision is
authorized by law to impose, such amounts as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be necessary under subsection (a);</text>
</paragraph><paragraph id="H658B59DAF1A2479894F020EEA6062FB8"><enum>(2)</enum><text>detail to the
Office of the Comptroller of the Currency, the Corporation, or the Board of
Governors, as applicable, such personnel as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be appropriate under subsection (a); and</text>
</paragraph><paragraph id="H834CEE5F50C04201A70EADCAB76CD0DC"><enum>(3)</enum><text>make available to
the Office of the Comptroller of the Currency, the Corporation, or the Board of
Governors, as applicable, such property and provide to the Office of the
Comptroller of the Currency, the Corporation, or the Board of Governors, as
applicable, such administrative services as the Office of the Comptroller of
the Currency, the Corporation, and the Board of Governors jointly determine to
be necessary under subsection (a).</text>
</paragraph></subsection><subsection id="H4E5FF23717374F07982D9128D1B20CA4"><enum>(c)</enum><header>Notice
required</header><text>The Office of the Comptroller of the Currency, the
Corporation, and the Board of Governors shall jointly give the Office of Thrift
Supervision reasonable prior notice of any request that the Office of the
Comptroller of the Currency, the Corporation, and the Board of Governors
jointly intend to make under subsection (b).</text>
</subsection></section><section id="HDBE5AFDAE653486AA027C36F2883B199"><enum>322.</enum><header>Transfer of
employees</header>
<subsection id="HD35AC2EBE86C4A329E821FF16EFDC563"><enum>(a)</enum><header>In
general</header>
<paragraph id="H188B166AF7A74FCF83E91B678BD90DC0"><enum>(1)</enum><header>Office of thrift
supervision employees</header>
<subparagraph id="H65574CD387E94A478456D11A9D02C305"><enum>(A)</enum><header>In
general</header><text>Except as provided in section 1064, all employees of the
Office of Thrift Supervision shall be transferred to the Office of the
Comptroller of the Currency or the Corporation for employment in accordance
with this section.</text>
</subparagraph><subparagraph id="H80E08ADF9D8E48449E88FBA8A5DD9A5A"><enum>(B)</enum><header>Allocating
employees for transfer to receiving agencies</header><text>The Director of the
Office of Thrift Supervision, the Comptroller of the Currency, and the
Chairperson of the Corporation shall—</text>
<clause id="H2F10C92A3E294F2ABA97C08B190A52BE"><enum>(i)</enum><text>jointly determine
the number of employees of the Office of Thrift Supervision necessary to
perform or support the functions that are transferred to the Office of the
Comptroller of the Currency or the Corporation by this title; and</text>
</clause><clause id="HBA164325C63B4506AE0D403F0ACE81A3"><enum>(ii)</enum><text>consistent with
the determination under clause (i), jointly identify employees of the Office of
Thrift Supervision for transfer to the Office of the Comptroller of the
Currency or the Corporation.</text>
</clause></subparagraph></paragraph><paragraph id="H4C58C408C8634732A419BDA10EAB6817"><enum>(2)</enum><header>Employees
transferred; service periods credited</header><text>For purposes of this
section, periods of service with a Federal home loan bank, a joint office of
Federal home loan banks, or a Federal reserve bank shall be credited as periods
of service with a Federal agency.</text>
</paragraph><paragraph id="HB20D894DDE1D4B9B9784E10C4D2B0865"><enum>(3)</enum><header>Appointment
authority for excepted service transferred</header>
<subparagraph id="HAB06024CA6B34608915C27AF86A6A4CD"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any appointment
authority of the Office of Thrift Supervision under Federal law that relates to
the functions transferred under section 312, including the regulations of the
Office of Personnel Management, for filling the positions of employees in the
excepted service shall be transferred to the Comptroller of the Currency or the
Chairperson of the Corporation, as appropriate.</text>
</subparagraph><subparagraph id="H8BFE8E9747444124ACF0E9E74CB4BAFA"><enum>(B)</enum><header>Declining
transfers allowed</header><text>The Comptroller of the Currency or the
Chairperson of the Corporation may decline to accept a transfer of authority
under subparagraph (A) (and the employees appointed under that authority) to
the extent that such authority relates to positions excepted from the
competitive service because of their confidential, policy-making,
policy-determining, or policy-advocating character.</text>
</subparagraph></paragraph><paragraph id="HDA270C9679B94D4690F3237FA5C1A063"><enum>(4)</enum><header>Additional
appointment authority</header><text>Notwithstanding any other provision of law,
the Office of the Comptroller of the Currency and the Corporation may appoint
transferred employees to positions in the Office of the Comptroller of the
Currency or the Corporation, respectively.</text>
</paragraph></subsection><subsection id="HF06B41F8A62B472382FDD673A0D48CF7"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under subsection (a)(1) shall—</text>
<paragraph id="H7798A68CB8B84654BAE5862C60DB4B26"><enum>(1)</enum><text>be transferred not
later than 90 days after the transfer date; and</text>
</paragraph><paragraph id="HB98A556F00DC4341873BF0CF18CDCB32"><enum>(2)</enum><text>receive notice of
the position assignment of the employee not later than 120 days after the
effective date of the transfer of the employee.</text>
</paragraph></subsection><subsection id="H06235066FFAD443F80C4F94A3F338F14"><enum>(c)</enum><header>Transfer of
functions</header>
<paragraph id="HC88AA20F0F5346239733767A1748AB93"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the transfer
of employees under this subtitle shall be deemed a transfer of functions for
the purpose of section 3503 of title 5, United States Code.</text>
</paragraph><paragraph id="H765EBB1515A844FE85867621FD139831"><enum>(2)</enum><header>Priority</header><text>If
any provision of this subtitle conflicts with any protection provided to a
transferred employee under section 3503 of title 5, United States Code, the
provisions of this subtitle shall control.</text>
</paragraph></subsection><subsection id="H5BA9C802D7BC481F992032C8C2F2BEAC"><enum>(d)</enum><header>Employee status
and eligibility</header><text>The transfer of functions and employees under
this subtitle, and the abolishment of the Office of Thrift Supervision under
section 313, shall not affect the status of the transferred employees as
employees of an agency of the United States under any provision of law.</text>
</subsection><subsection id="HFC29F256279A4CB682D7A27B056FA4DC"><enum>(e)</enum><header>Equal status and
tenure positions</header>
<paragraph id="H3409919C4453437FAF658BF6E90D0895"><enum>(1)</enum><header>Status and
tenure</header><text>Each transferred employee from the Office of Thrift
Supervision shall be placed in a position at the Office of the Comptroller of
the Currency or the Corporation with the same status and tenure as the
transferred employee held on the day before the date on which the employee was
transferred.</text>
</paragraph><paragraph id="H34198C1AB71349BAA5DCF7E26BE206A3"><enum>(2)</enum><header>Functions</header><text>To
the extent practicable, each transferred employee shall be placed in a position
at the Office of the Comptroller of the Currency or the Corporation, as
applicable, responsible for the same functions and duties as the transferred
employee had on the day before the date on which the employee was transferred,
in accordance with the expertise and preferences of the transferred
employee.</text>
</paragraph></subsection><subsection id="HB36A5FB1209748D094663B3A221214AD"><enum>(f)</enum><header>No additional
certification requirements</header><text>An examiner who is a transferred
employee shall not be subject to any additional certification requirements
before being placed in a comparable position at the Office of the Comptroller
of the Currency or the Corporation, if the examiner carries out examinations of
the same type of institutions as an employee of the Office of the Comptroller
of the Currency or the Corporation as the employee was responsible for carrying
out before the date on which the employee was transferred.</text>
</subsection><subsection id="H3CE36499857F4FB79140B9EB12108D10"><enum>(g)</enum><header>Personnel
actions limited</header>
<paragraph commented="no" id="H4EC93EC5258644B99A5169E943F00C41"><enum>(1)</enum><header>Protection</header>
<subparagraph commented="no" id="H9F56DE44946F43EE96308EC7CA2C7CC6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (2), each affected employee shall not, during the 30-month period
beginning on the transfer date, be involuntarily separated, or involuntarily
reassigned outside his or her locality pay area.</text>
</subparagraph><subparagraph commented="no" id="H95399E755625449AB9C7C2F1F6753F7E"><enum>(B)</enum><header>Affected
employees</header><text>For purposes of this paragraph, the term
<quote>affected employee</quote> means—</text>
<clause commented="no" id="H2C5207E8390D4AEDA54335C7D199ACE3"><enum>(i)</enum><text>an employee
transferred from the Office of Thrift Supervision holding a permanent position
on the day before the transfer date; and</text>
</clause><clause commented="no" id="H594E07CED4204A778CEFC573A30111F8"><enum>(ii)</enum><text>an employee of
the Office of the Comptroller of the Currency or the Corporation holding a
permanent position on the day before the transfer date.</text>
</clause></subparagraph></paragraph><paragraph id="HE11D2102F8944878A37E30203D599705"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not limit the right of the Office of the Comptroller of the Currency
or the Corporation to—</text>
<subparagraph id="H8350F71406564693B7EF36311A2B2D10"><enum>(A)</enum><text>separate an
employee for cause or for unacceptable performance;</text>
</subparagraph><subparagraph id="HA9F1B6D930854949921FE5C35C0C1726"><enum>(B)</enum><text>terminate an
appointment to a position excepted from the competitive service because of its
confidential policy-making, policy-determining, or policy-advocating character;
or</text>
</subparagraph><subparagraph id="HB7156B7DAB87454E864C50C2F3E21564"><enum>(C)</enum><text display-inline="yes-display-inline">reassign an employee outside such
employee’s locality pay area when the Office of the Comptroller of the Currency
or the Corporation determines that the reassignment is necessary for the
efficient operation of the agency.</text>
</subparagraph></paragraph></subsection><subsection id="H894BE07026A84666893E38D868299AE4"><enum>(h)</enum><header>Pay</header>
<paragraph id="HB4ACE8FFF6FF4BA7A890BCDEA384F55C"><enum>(1)</enum><header>30-month
protection</header><text>Except as provided in paragraph (2), during the
30-month period beginning on the date on which the employee was transferred
under this subtitle, a transferred employee shall be paid at a rate that is not
less than the basic rate of pay, including any geographic differential, that
the transferred employee received during the pay period immediately preceding
the date on which the employee was transferred. Notwithstanding the preceding
sentence, if the employee was receiving a higher rate of basic pay on a
temporary basis (because of a temporary assignment, temporary promotion, or
other temporary action) immediately before the transfer, the Agency may reduce
the rate of basic pay on the date the rate would have been reduced but for the
transfer, and the protected rate for the remainder of the 30-month period will
be the reduced rate that would have applied but for the transfer.</text>
</paragraph><paragraph id="HA8F1AEE77FF8446380D299BB46DC973E"><enum>(2)</enum><header>Exceptions</header><text>The
Comptroller of the Currency or the Corporation may reduce the rate of basic pay
of a transferred employee—</text>
<subparagraph id="H7DDE00BDC6B140A999F23733FAA2D1AC"><enum>(A)</enum><text>for cause,
including for unacceptable performance; or</text>
</subparagraph><subparagraph id="H9065957161404B04BA1EDEE2F5E50E3E"><enum>(B)</enum><text>with the consent
of the transferred employee.</text>
</subparagraph></paragraph><paragraph id="H6501ACB326A3458E846058686655C813"><enum>(3)</enum><header>Protection only
while employed</header><text>This subsection shall apply to a transferred
employee only during the period that the transferred employee remains employed
by Office of the Comptroller of the Currency or the Corporation.</text>
</paragraph><paragraph id="H94101089717945CFA1910FD79AC9B1A3"><enum>(4)</enum><header>Pay increases
permitted</header><text>Nothing in this subsection shall limit the authority of
the Comptroller of the Currency or the Chairperson of the Corporation to
increase the pay of a transferred employee.</text>
</paragraph></subsection><subsection id="H3C1B9584B562496FB95C2E4780D60AD5"><enum>(i)</enum><header>Benefits</header>
<paragraph id="HD51CB5879AB94221A9DF47FB24E32649"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="HD48ED114DEFB440DA1140F4BDE85C5CC"><enum>(A)</enum><header>In
general</header>
<clause id="HE4D4468B74604EE5A23B22732663E85E"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text>Each transferred employee shall remain
enrolled in the retirement plan of the transferred employee, for as long as the
transferred employee is employed by the Office of the Comptroller of the
Currency or the Corporation.</text>
</clause><clause id="H6CEAE204A44F473FB06F1E6F3172F65B"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Comptroller of the Currency or the Chairperson
of the Corporation, as appropriate, shall pay any employer contributions to the
existing retirement plan of each transferred employee, as required under each
such existing retirement plan.</text>
</clause></subparagraph><subparagraph id="HB68F0E45A3C54BEA8058BD5B20F1065F"><enum>(B)</enum><header>Definition</header><text>In
this paragraph, the term <term>existing retirement plan</term> means, with
respect to a transferred employee, the retirement plan (including the Financial
Institutions Retirement Fund), and any associated thrift savings plan, of the
agency from which the employee was transferred in which the employee was
enrolled on the day before the date on which the employee was
transferred.</text>
</subparagraph></paragraph><paragraph id="H336FFF12BFB641D2AE93BB87927B6EFA"><enum>(2)</enum><header>Benefits other
than retirement benefits</header>
<subparagraph id="H1903A291BBD14A3CAE519F3298937643"><enum>(A)</enum><header>During first
year</header>
<clause id="H5FA1F69B122B48B3B1534045718E0B03"><enum>(i)</enum><header>Existing plans
continue</header><text>During the 1-year period following the transfer date,
each transferred employee may retain membership in any employee benefit program
(other than a retirement benefit program) of the agency from which the employee
was transferred under this title, including any dental, vision, long term care,
or life insurance program to which the employee belonged on the day before the
transfer date.</text>
</clause><clause id="HE6823DA9C2E24844B9CB1441AB1D74C7"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Office of the Comptroller of the Currency or the
Corporation, as appropriate, shall pay any employer cost required to extend
coverage in the benefit program to the transferred employee as required under
that program or negotiated agreements.</text>
</clause></subparagraph><subparagraph id="H0691881AB345411EAA9573E213B6DF89"><enum>(B)</enum><header>Dental, vision,
or life insurance after first year</header><text>If, after the 1-year period
beginning on the transfer date, the Office of the Comptroller of the Currency
or the Corporation determines that the Office of the Comptroller of the
Currency or the Corporation, as the case may be, will not continue to
participate in any dental, vision, or life insurance program of an agency from
which an employee was transferred, a transferred employee who is a member of
the program may, before the decision takes effect and without regard to any
regularly scheduled open season, elect to enroll in—</text>
<clause id="HE826920A651D4655BBBA5E2633684525"><enum>(i)</enum><text>the
enhanced dental benefits program established under chapter 89A of title 5,
United States Code;</text>
</clause><clause id="H5F990BBA3F76464EBB756E49748F98DE"><enum>(ii)</enum><text>the
enhanced vision benefits established under chapter 89B of title 5, United
States Code; and</text>
</clause><clause id="HC50B987298874AAEB7D442F1B1DF15EB"><enum>(iii)</enum><text>the Federal
Employees’ Group Life Insurance Program established under chapter 87 of title
5, United States Code, without regard to any requirement of
insurability.</text>
</clause></subparagraph><subparagraph id="H12C7CC7B90F7478581D783BE9583985A"><enum>(C)</enum><header>Long term care
insurance after 1st year</header><text>If, after the 1-year period beginning on
the transfer date, the Office of the Comptroller of the Currency or the
Corporation determines that the Office of the Comptroller of the Currency or
the Corporation, as appropriate, will not continue to participate in any long
term care insurance program of an agency from which an employee transferred, a
transferred employee who is a member of such a program may, before the decision
takes effect, elect to apply for coverage under the Federal Long Term Care
Insurance Program established under chapter 90 of title 5, United States Code,
under the underwriting requirements applicable to a new active workforce
member, as described in part 875 of title 5, Code of Federal Regulations (or
any successor thereto).</text>
</subparagraph><subparagraph id="HC3A21B404E54445792775591696DBE2C"><enum>(D)</enum><header>Contribution of
transferred employee</header>
<clause id="H1B897C557EB940C78876649760AD9DF3"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), a transferred employee who is
enrolled in a plan under the Federal Employees Health Benefits Program shall
pay any employee contribution required under the plan.</text>
</clause><clause id="HED829FC7A1EC475799C9140506C74954"><enum>(ii)</enum><header>Cost
differential</header><text>The Office of the Comptroller of the Currency or the
Corporation, as applicable, shall pay any difference in cost between the
employee contribution required under the plan provided to transferred employees
by the agency from which the employee transferred on the date of enactment of
this Act and the plan provided by the Office of the Comptroller of the Currency
or the Corporation, as the case may be, under this section.</text>
</clause><clause id="HCB01997EDF8E4478B2885F46D71D3DC9"><enum>(iii)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall transfer to the Employees Health
Benefits Fund established under section 8909 of title 5, United States Code, an
amount determined by the Director of the Office of Personnel Management, after
consultation with the Comptroller of the Currency or the Chairperson of the
Corporation, as the case may be, and the Office of Management and Budget, to be
necessary to reimburse the Fund for the cost to the Fund of providing any
benefits under this subparagraph that are not otherwise paid for by a
transferred employee under clause (i).</text>
</clause></subparagraph><subparagraph id="HAAE5E83BDF2549FF836AB9C0CBE0DC13"><enum>(E)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="HCBA201D6CA2F43218D4F2BAD7A6B1FFF"><enum>(i)</enum><header>In
general</header><text>An annuitant, as defined in section 8901 of title 5,
United States Code, who is enrolled in a life insurance plan administered by an
agency from which employees are transferred under this title on the day before
the transfer date shall be eligible for coverage by a life insurance plan under
sections 8706(b), 8714a, 8714b, or 8714c of title 5, United States Code, or by
a life insurance plan established by the Office of the Comptroller of the
Currency or the Corporation, as applicable, without regard to any regularly
scheduled open season or any requirement of insurability.</text>
</clause><clause id="HA342CC5E411549FC807AD299315A804E"><enum>(ii)</enum><header>Contribution of
transferred employee</header>
<subclause id="HAC400EDEE31B444D8C786BF8B5A10D2F"><enum>(I)</enum><header>In
general</header><text>Subject to subclause (II), a transferred employee
enrolled in a life insurance plan under this subparagraph shall pay any
employee contribution required by the plan.</text>
</subclause><subclause id="H89FB8EA4DDAF4A48A0395587CBFD43FA"><enum>(II)</enum><header>Cost
differential</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall pay any difference in cost between the
benefits provided by the agency from which the employee transferred on the date
of enactment of this Act and the benefits provided under this section.</text>
</subclause><subclause id="HDC91B70CAAC34897BCDC2B55835A7C78"><enum>(III)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation, as the case may be, shall transfer to the Federal Employees’ Group
Life Insurance Fund established under section 8714 of title 5, United States
Code, an amount determined by the Director of the Office of Personnel
Management, after consultation with the Comptroller of the Currency or the
Chairperson of the Corporation, as the case may be, and the Office of
Management and Budget, to be necessary to reimburse the Federal Employees’
Group Life Insurance Fund for the cost to the Federal Employees’ Group Life
Insurance Fund of providing benefits under this subparagraph not otherwise paid
for by a transferred employee under subclause (I).</text>
</subclause><subclause id="H171456E420EC4F67A5BB3DCAE4BD4D1E"><enum>(IV)</enum><header>Credit for time
enrolled in other plans</header><text>For any transferred employee, enrollment
in a life insurance plan administered by the agency from which the employee
transferred, immediately before enrollment in a life insurance plan under
chapter 87 of title 5, United States Code, shall be considered as enrollment in
a life insurance plan under that chapter for purposes of section 8706(b)(1)(A)
of title 5, United States Code.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H7AB87AF3FE484A17ADDECE6998AA8589"><enum>(j)</enum><header>Incorporation
into agency pay system</header><text>Not later than 30 months after the
transfer date, the Comptroller of the Currency and the Chairperson of the
Corporation shall place each transferred employee into the established pay
system and structure of the appropriate employing agency.</text>
</subsection><subsection id="H8999A8D4C45748C7AC9D7B4E8A951843"><enum>(k)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Comptroller of the Currency and the Chairperson of the Corporation—</text>
<paragraph id="H0F79CE84B3024ECFBFE785D7C3C9FEC5"><enum>(1)</enum><text>may not take any
action that would unfairly disadvantage a transferred employee relative to any
other employee of the Office of the Comptroller of the Currency or the
Corporation on the basis of prior employment by the Office of Thrift
Supervision;</text>
</paragraph><paragraph id="H4B13D3EE793D467C9DB270EF5B0B5864"><enum>(2)</enum><text>may take such
action as is appropriate in an individual case to ensure that a transferred
employee receives equitable treatment, with respect to the status, tenure, pay,
benefits (other than benefits under programs administered by the Office of
Personnel Management), and accrued leave or vacation time for prior periods of
service with any Federal agency of the transferred employee;</text>
</paragraph><paragraph id="H2DF44FE3D6CD438DAD45C13E86DC9897"><enum>(3)</enum><text>shall, jointly
with the Director of the Office of Thrift Supervision, develop and adopt
procedures and safeguards designed to ensure that the requirements of this
subsection are met; and</text>
</paragraph><paragraph id="HD616DB3CD5D341279E69262BD0416E6D"><enum>(4)</enum><text>shall conduct a
study detailing the position assignments of all employees transferred pursuant
to subsection (a), describing the procedures and safeguards adopted pursuant to
paragraph (3), and demonstrating that the requirements of this subsection have
been met; and shall, not later than 365 days after the transfer date, submit a
copy of such study to Congress.</text>
</paragraph></subsection><subsection id="H6CA09145DA5F4DBB846723E0DBED174B"><enum>(l)</enum><header>Reorganization</header>
<paragraph id="H65BCA9539FD34936B5925E51F1E32B48"><enum>(1)</enum><header>In
general</header><text>If the Comptroller of the Currency or the Chairperson of
the Corporation determines, during the 2-year period beginning 1 year after the
transfer date, that a reorganization of the staff of the Office of the
Comptroller of the Currency or the Corporation, respectively, is required, the
reorganization shall be deemed a <quote>major reorganization</quote> for
purposes of affording affected employees retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code.</text>
</paragraph><paragraph id="H21A2333F56DB4A1E8CDCCA1E4676283A"><enum>(2)</enum><header>Service
credit</header><text>For purposes of this subsection, periods of service with a
Federal home loan bank or a joint office of Federal home loan banks shall be
credited as periods of service with a Federal agency.</text>
</paragraph></subsection></section><section id="H672197563AB940C2B5C0BF7D4428B523"><enum>323.</enum><header>Property
transferred</header>
<subsection id="HA124EFC9407546429B5395F4CE037A04"><enum>(a)</enum><header>Property
defined</header><text>For purposes of this section, the term
<term>property</term> includes all real property (including leaseholds) and all
personal property, including computers, furniture, fixtures, equipment, books,
accounts, records, reports, files, memoranda, paper, reports of examination,
work papers, and correspondence related to such reports, and any other
information or materials.</text>
</subsection><subsection id="HE667867948144374B10C05E93009C7E3"><enum>(b)</enum><header>Property of the
Office of Thrift Supervision</header>
<paragraph id="HA6E299A768D149C4855BE09B292014D0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No later than 90 days
after the transfer date, all property of the Office of Thrift Supervision
(other than property described under paragraph (b)(2)) that the Comptroller of
the Currency and the Chairperson of the Corporation jointly determine is used,
on the day before the transfer date, to perform or support the functions of the
Office of Thrift Supervision transferred to the Office of the Comptroller of
the Currency or the Corporation under this title, shall be transferred to the
Office of the Comptroller of the Currency or the Corporation in a manner
consistent with the transfer of employees under this subtitle.</text>
</paragraph><paragraph id="HD52FA464476E4AEBBEB9C46804657A24"><enum>(2)</enum><header>Personal
property</header><text display-inline="yes-display-inline">All books, accounts,
records, reports, files, memoranda, papers, documents, reports of examination,
work papers, and correspondence of the Office of Thrift Supervision that the
Comptroller of the Currency, the Chairperson of the Corporation, and the
Chairman of the Board of Governors jointly determine is used, on the day before
the transfer date, to perform or support the functions of the Office of Thrift
Supervision transferred to the Board of Governors under this title shall be
transferred to the Board of Governors in a manner consistent with the purposes
of this title.</text>
</paragraph></subsection><subsection id="HAA542FBB2B1648A5B2A95E6428259770"><enum>(c)</enum><header>Contracts
related to property transferred</header><text>Each contract, agreement, lease,
license, permit, and similar arrangement relating to property transferred to
the Office of the Comptroller of the Currency or the Corporation by this
section shall be transferred to the Office of the Comptroller of the Currency
or the Corporation, as appropriate, together with the property to which it
relates.</text>
</subsection><subsection id="H287EFBD4F72543058E1F0C235E91A5FD"><enum>(d)</enum><header>Preservation of
property</header><text>Property identified for transfer under this section
shall not be altered, destroyed, or deleted before transfer under this
section.</text>
</subsection></section><section id="HA8E0E855B6654E8388116DE524B61DE1"><enum>324.</enum><header>Funds
transferred</header><text display-inline="no-display-inline">The funds that, on
the day before the transfer date, the Director of the Office of Thrift
Supervision (in consultation with the Comptroller of the Currency, the
Chairperson of the Corporation, and the Chairman of the Board of Governors)
determines are not necessary to dispose of the affairs of the Office of Thrift
Supervision under section 325 and are available to the Office of Thrift
Supervision to pay the expenses of the Office of Thrift Supervision—</text>
<paragraph id="H6209AAC44BB24079B7AC73132DEEC543"><enum>(1)</enum><text display-inline="yes-display-inline">relating to the functions of the Office of
Thrift Supervision transferred under section 312(b)(2)(B), shall be transferred
to the Office of the Comptroller of the Currency on the transfer date;</text>
</paragraph><paragraph id="H961E4F4EFB134BFA9F45751D61645257"><enum>(2)</enum><text>relating to the
functions of the Office of Thrift Supervision transferred under section
312(b)(2)(C), shall be transferred to the Corporation on the transfer date;
and</text>
</paragraph><paragraph id="H9CB26325C7C34BD28FA34C1B8FC7A011"><enum>(3)</enum><text>relating to the
functions of the Office of Thrift Supervision transferred under section
312(b)(1)(A), shall be transferred to the Board of Governors on the transfer
date.</text>
</paragraph></section><section id="HD4F131350AF04C1D8B101658380AADAA"><enum>325.</enum><header>Disposition of
affairs</header>
<subsection id="HF222E256D5384E05ADA1D73B8EAC9C1F"><enum>(a)</enum><header>Authority of
Director</header><text>During the 90-day period beginning on the transfer date,
the Director of the Office of Thrift Supervision—</text>
<paragraph id="H73267F9EF703422EA09134490B569E6A"><enum>(1)</enum><text>shall, solely for
the purpose of winding up the affairs of the Office of Thrift Supervision
relating to any function transferred to the Office of the Comptroller of the
Currency, the Corporation, or the Board of Governors under this title—</text>
<subparagraph id="HCE24A4DEEFE24915AE7FDC94FDFE1486"><enum>(A)</enum><text>manage the
employees of the Office of Thrift Supervision who have not yet been transferred
and provide for the payment of the compensation and benefits of the employees
that accrue before the date on which the employees are transferred under this
title; and</text>
</subparagraph><subparagraph id="H5B067243C56F4167951C095DD4E5338E"><enum>(B)</enum><text>manage any
property of the Office of Thrift Supervision, until the date on which the
property is transferred under section 323; and</text>
</subparagraph></paragraph><paragraph id="H9008CA796DBF4345B60316BD4A5ACC77"><enum>(2)</enum><text>may take any other
action necessary to wind up the affairs of the Office of Thrift
Supervision.</text>
</paragraph></subsection><subsection id="H1486CF7BB5234F5A9295218589F02292"><enum>(b)</enum><header>Status of
Director</header>
<paragraph id="H0C567D3517474691BDF71EFDC180A1AD"><enum>(1)</enum><header>In
general</header><text>Notwithstanding the transfer of functions under this
subtitle, during the 90-day period beginning on the transfer date, the Director
of the Office of Thrift Supervision shall retain and may exercise any authority
vested in the Director of the Office of Thrift Supervision on the day before
the transfer date, only to the extent necessary—</text>
<subparagraph id="H1F3B73C1194241E7B51419D5631FDFED"><enum>(A)</enum><text>to wind up the
Office of Thrift Supervision; and</text>
</subparagraph><subparagraph id="H813551AE5F554D609CAEFEBAECCD62EB"><enum>(B)</enum><text>to carry out the
transfer under this subtitle during such 90-day period.</text>
</subparagraph></paragraph><paragraph id="H1EC90C3A7DCF472C8FB5CDEF628448E9"><enum>(2)</enum><header>Other
provisions</header><text>For purposes of paragraph (1), the Director of the
Office of Thrift Supervision shall, during the 90-day period beginning on the
transfer date, continue to be—</text>
<subparagraph id="H900945E9249B42EF8121E57A9D15690B"><enum>(A)</enum><text>treated as an
officer of the United States; and</text>
</subparagraph><subparagraph id="H502770A3DD4242E4953424B61465915B"><enum>(B)</enum><text>entitled to
receive compensation at the same annual rate of basic pay that the Director of
the Office of Thrift Supervision received on the day before the transfer
date.</text>
</subparagraph></paragraph></subsection></section><section id="H448A5017F24B412C8E23E3180739CAB8"><enum>326.</enum><header>Continuation of
services</header><text display-inline="no-display-inline">Any agency,
department, or other instrumentality of the United States, and any successor to
any such agency, department, or instrumentality, that was, before the transfer
date, providing support services to the Office of Thrift Supervision in
connection with functions transferred to the Office of the Comptroller of the
Currency, the Corporation or the Board of Governors under this title,
shall—</text>
<paragraph id="H859FD2ED29A047F9970460CD2D375691"><enum>(1)</enum><text>continue to
provide such services, subject to reimbursement by the Office of the
Comptroller of the Currency, the Corporation, or the Board of Governors, until
the transfer of functions under this title is complete; and</text>
</paragraph><paragraph id="H23ED38F832774E6B93D0373431BB913B"><enum>(2)</enum><text>consult with the
Comptroller of the Currency, the Chairperson of the Corporation, or the
Chairman of the Board of Governors, as appropriate, to coordinate and
facilitate a prompt and orderly transition.</text>
</paragraph></section><section id="H3836A5AA17B54D958503EB597948D3A1"><enum>327.</enum><header>Implementation
plan and reports</header>
<subsection id="H4FB9BBC3144847B896D9A2C4B3B14129"><enum>(a)</enum><header>Plan
submission</header><text display-inline="yes-display-inline">Within 180 days of
the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
the Board of Governors, the Corporation, the Office of the Comptroller of the
Currency, and the Office of Thrift Supervision, shall jointly submit a plan to
the Committee on Banking, Housing, and Urban Affairs of the Senate, the
Committee on Financial Services of the House of Representatives, and the
Inspectors General of the Department of the Treasury, the Corporation, and the
Board of Governors detailing the steps the Board of Governors, the Corporation,
the Office of the Comptroller of the Currency, and the Office of Thrift
Supervision will take to implement the provisions of sections 301 through 326,
and the provisions of the amendments made by such sections.</text>
</subsection><subsection id="HE5649D3076744429BFBADDFD061783DD"><enum>(b)</enum><header>Inspectors
General review of the plan</header><text display-inline="yes-display-inline">Within 60 days of receiving the plan
required under subsection (a), the Inspectors General of the Department of the
Treasury, the Corporation, and the Board of Governors shall jointly provide a
written report to the Board of Governors, the Corporation, the Office of the
Comptroller of the Currency, and the Office of Thrift Supervision and shall
submit a copy to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
detailing whether the plan conforms with the provisions of sections 301 through
326, and the provisions of the amendments made by such sections,
including—</text>
<paragraph id="H53F8074C71E44EEB9380E308DE25BDA4"><enum>(1)</enum><text>whether the plan
sufficiently takes into consideration the orderly transfer of personnel;</text>
</paragraph><paragraph id="HCF430FF0012040168B63D80732B94F1F"><enum>(2)</enum><text display-inline="yes-display-inline">whether the plan describes procedures and
safeguards to ensure that the Office of Thrift Supervision employees are not
unfairly disadvantaged relative to employees of the Office of the Comptroller
of the Currency and the Corporation;</text>
</paragraph><paragraph id="H625863B5F5C64E9C9A100FCEB0AF18BC"><enum>(3)</enum><text>whether the plan
sufficiently takes into consideration the orderly transfer of authority and
responsibilities;</text>
</paragraph><paragraph id="HC3969E6FBE6A4978958C1C60843E4AB1"><enum>(4)</enum><text>whether the plan
sufficiently takes into consideration the effective transfer of funds;</text>
</paragraph><paragraph id="H2E93783D99844AE08C5A4205CFBB3702"><enum>(5)</enum><text>whether the plan
sufficiently takes in consideration the orderly transfer of property;
and</text>
</paragraph><paragraph id="HA57504937AF641569A9BF9C09FBD61BB"><enum>(6)</enum><text>any additional
recommendations for an orderly and effective process.</text>
</paragraph></subsection><subsection id="H034A35B88FBB4B309FC9F47D542CA5FA"><enum>(c)</enum><header>Implementation
reports</header><text display-inline="yes-display-inline">Not later than 6
months after the date on which the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives receives the report required under subsection (b), and every 6
months thereafter until all aspects of the plan have been implemented, the
Inspectors General of the Department of the Treasury, the Corporation, and the
Board of Governors shall jointly provide a written report on the status of the
implementation of the plan to the Board of Governors, the Corporation, the
Office of the Comptroller of the Currency, and the Office of Thrift Supervision
and shall submit a copy to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives.</text>
</subsection></section></subtitle><subtitle id="H6246E14C072347ED86E2ACDE57748855"><enum>C</enum><header>Federal Deposit
Insurance Corporation</header>
<section id="H761B33A3E97F4E5FA3CB44491A2028D4"><enum>331.</enum><header>Deposit
insurance reforms</header>
<subsection id="H51B2DEC4EC0E4E0C8ACF6829C5AD83C6"><enum>(a)</enum><header>Size
distinctions</header><text>Section 7(b)(2) of the Federal Deposit Insurance Act
(12 U.S.C. 1817(b)(2)) is amended—</text>
<paragraph id="HEEC8678FD79F48DD9112055CE35FB317"><enum>(1)</enum><text>by striking
subparagraph (D); and</text>
</paragraph><paragraph id="H4D0D4111FE3D428E8F9394FCE69EF6B8"><enum>(2)</enum><text>by redesignating
subparagraph (C) as subparagraph (D).</text>
</paragraph></subsection><subsection id="HC4F9D71B0DE94505B7227D2CC4606B4F"><enum>(b)</enum><header>Assessment
base</header><text>The Corporation shall amend the regulations issued by the
Corporation under section 7(b)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(2)) to define the term <term>assessment base</term> with respect
to an insured depository institution for purposes of that section 7(b)(2), as
an amount equal to—</text>
<paragraph id="HBA171CF5DC034D9A82618748E3736D3F"><enum>(1)</enum><text>the average
consolidated total assets of the insured depository institution during the
assessment period; minus</text>
</paragraph><paragraph id="HA3D46880A82A417A8B344E024E141264"><enum>(2)</enum><text>the sum of—</text>
<subparagraph id="H787B645706C14E299126F5AB1E4DD548"><enum>(A)</enum><text>the average
tangible equity of the insured depository institution during the assessment
period; and</text>
</subparagraph><subparagraph id="H1C459E861A6C4F05A2F83734486A7D56"><enum>(B)</enum><text>in the case of an
insured depository institution that is a custodial bank (as defined by the
Corporation, based on factors including the percentage of total revenues
generated by custodial businesses and the level of assets under custody) or a
banker's bank (as that term is used in section 5136 of the Revised Statutes (12
U.S.C. 24)), an amount that the Corporation determines is necessary to
establish assessments consistent with the definition under section 7(b)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(1)) for a custodial bank
or a banker's bank.</text>
</subparagraph></paragraph></subsection></section><section id="H33EBB2CE28BF41F3A99E1F9798D67F04"><enum>332.</enum><header>Elimination of
procyclical assessments</header><text display-inline="no-display-inline">Section 7(e) of the Federal Deposit
Insurance Act is amended—</text>
<paragraph id="HC0C88FF100754CB79E8C4CEF398BC118"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H21F6B51FE97E4FA8A59C4D05D924EEAE"><enum>(A)</enum><text>by amending
subparagraph (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1B1481F2986942BA8DE21FD4D7EB1363" style="OLC">
<subparagraph id="H9D880995BB2245F7A1D5511AC34FFB2C"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Board of Directors may, in its sole
discretion, suspend or limit the declaration of payment of dividends under
subparagraph
(A).</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HFBB4954E9D2244D09BA6C1FCE552ECC9"><enum>(B)</enum><text>by amending
subparagraph (C) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAABFB670F95C428EAEEDD2B73D431DA2" style="OLC">
<subparagraph id="HE11466161E4C422EA65F62BBC42D59CC"><enum>(C)</enum><header>Notice and
opportunity for comment</header><text display-inline="yes-display-inline">The
Corporation shall prescribe, by regulation, after notice and opportunity for
comment, the method for the declaration, calculation, distribution, and payment
of dividends under this paragraph</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H89B6068B45BE4B92808CE1BE709A8DCB"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraphs (D) through (G);
and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC924B22BD2E24698B03F39452C421C32"><enum>(2)</enum><text>in paragraph
(4)(A) by striking <quote>paragraphs (2)(D) and</quote> and inserting
<quote>paragraphs (2) and</quote>.</text>
</paragraph></section><section display-inline="no-display-inline" id="HF9D5009FB92F4A97806F19A63B513E20" section-type="subsequent-section"><enum>333.</enum><header>Enhanced access to
information for deposit insurance purposes</header>
<subsection id="H05815D42EC1741D7BCC1876EC4110D7B"><enum>(a)</enum><text display-inline="yes-display-inline">Section 7(a)(2)(B) of the Federal Deposit
Insurance Act is amended by striking <quote>agreement</quote> and inserting
<quote>consultation</quote>.</text>
</subsection><subsection id="H81A17955D35E43098FA5BB65DA9C1E9F"><enum>(b)</enum><text>Section 7(b)(1)(E)
of the Federal Deposit Insurance Act is amended—</text>
<paragraph id="H469071CDDCEC423B99BBCDC734439909"><enum>(1)</enum><text>in clause (i), by
striking <quote>such as</quote> and inserting <quote>including</quote>;
and</text>
</paragraph><paragraph id="H4F9559CFD4BB429881A7D0FAB1F1948F"><enum>(2)</enum><text>in clause (iii),
by striking <quote>Corporation</quote> and inserting <quote>Corporation, except
as provided in section 7(a)(2)(B)</quote>.</text>
</paragraph></subsection></section><section id="HEBCA939FED8C48F98973B24BB1253F78"><enum>334.</enum><header>Transition
reserve ratio requirements to reflect new assessment base</header>
<subsection id="H166D7DBF85B04269B997CD481437A3E1"><enum>(a)</enum><text display-inline="yes-display-inline">Section 7(b)(3)(B) of the Federal Deposit
Insurance Act is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF8CA3BDB68CE40808D90024B04BC87E9" style="OLC">
<subparagraph id="HAADFAB5912B64872911DAABAD3DB3518"><enum>(B)</enum><header>Minimum reserve
ratio</header><text display-inline="yes-display-inline">The reserve ratio
designated by the Board of Directors for any year may not be less than 1.35
percent of estimated insured deposits, or the comparable percentage of the
assessment base set forth in paragraph
(2)(C).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H294D8019F4FF4488BB25C37B32568AA8"><enum>(b)</enum><text>Section 3(y)(3) of
the Federal Deposit Insurance Act is amended by inserting <quote>, or such
comparable percentage of the assessment base set forth in section
7(b)(2)(C)</quote> before the period.</text>
</subsection><subsection id="HE5C57F31AE3244149DFAC16C288E3199"><enum>(c)</enum><text>For a period of
not less than 5 years after the date of the enactment of this title, the
Federal Deposit Insurance Corporation shall make available to the public the
reserve ratio and the designated reserve ratio using both estimated insured
deposits and the assessment base under section 7(b)(2)(C) of the Federal
Deposit Insurance Act.</text>
</subsection><subsection id="HF4C116625BD24AC19EDF2CC734629A6F"><enum>(d)</enum><header>Reserve
ratio</header><text>Notwithstanding the timing requirements of section
7(b)(3)(E)(ii) of the Federal Deposit Insurance Act, the Corporation shall take
such steps as may be necessary for the reserve ratio of the Deposit Insurance
Fund to reach 1.35 percent of estimated insured deposits by September 30,
2020.</text>
</subsection><subsection id="H178F70A23CE44C08A3CA046568FE17EC"><enum>(e)</enum><header>Offset</header><text>In
setting the assessments necessary to meet the requirements of subsection (d),
the Corporation shall offset the effect of subsection (d) on insured depository
institutions with total consolidated assets of less than
$10,000,000,000.</text>
</subsection></section><section display-inline="no-display-inline" id="H1F879A6B6A144D9EAE28CA36F61244E1" section-type="subsequent-section"><enum>335.</enum><header>Permanent increase
in deposit and share insurance</header>
<subsection id="H440DFD957D5241AFA65DA2F48904BC0E"><enum>(a)</enum><header>Permanent
increase in deposit insurance</header><text display-inline="yes-display-inline">Section 11(a)(1)(E) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)(E)) is amended—</text>
<paragraph id="HE3B40E1D010F4DB3AA03A290CD0FC97C"><enum>(1)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$250,000</quote>; and</text>
</paragraph><paragraph id="H82534CF1966247B782D5F72AE5FA4CF4"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
sentences: <quote>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).</quote></text>
</paragraph></subsection><subsection id="H1852757F1F724A4BACFCE444E0912E4D"><enum>(b)</enum><header>Permanent
increase in share insurance</header><text display-inline="yes-display-inline">Section 207(k)(5) of the Federal Credit
Union Act (12 U.S.C. 1787(k)(5)) is amended by striking <quote>$100,000</quote>
and inserting <quote>$250,000</quote>.</text>
</subsection></section><section id="H54CF3F7E887D4B0892AFF88C976BDD85"><enum>336.</enum><header>Management of
the Federal Deposit Insurance Corporation</header>
<subsection id="HD472C05D6314451FA138ED664C1476B6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 2 of the
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—</text>
<paragraph id="HDE6F4DBDE1BC4914A754BA558A443235"><enum>(1)</enum><text>in subsection
(a)(1)(B), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Director of the Consumer Financial
Protection Bureau</quote>;</text>
</paragraph><paragraph id="HF63E28B3CF914986A973E6D2CF909C5F"><enum>(2)</enum><text>by amending
subsection (d)(2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9E1B10AF2A0B4808BDE38F0BBE59BDDC" style="OLC">
<paragraph id="H28809E9CD63840DA94DEFE45E0375919"><enum>(2)</enum><header>Acting officials
may serve</header><text>In the event of a vacancy in the office of the
Comptroller of the Currency or the office of Director of the Consumer Financial
Protection Bureau and pending the appointment of a successor, or during the
absence or disability of the Comptroller of the Currency or the Director of the
Consumer Financial Protection Bureau, the acting Comptroller of the Currency or
the acting Director of the Consumer Financial Protection Bureau, as the case
may be, shall be a member of the Board of Directors in the place of the
Comptroller or Director.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H27979FE30D3949C89CC708708E831F3F"><enum>(3)</enum><text>in subsection
(f)(2), by striking <quote>Office of Thrift Supervision</quote> and inserting
<quote>Consumer Financial Protection Bureau</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H25D01BA2470B477A85F188FE9559AF9D"><enum>(b)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on the transfer date.</text>
</subsection></section></subtitle><subtitle id="H44272C75ECA84F3AA8534B3F3C1E29A0"><enum>D</enum><header>Other
matters</header>
<section commented="no" display-inline="no-display-inline" id="H99EAE837F8F44AEB9C22BC7B983433CD" section-type="subsequent-section"><enum>341.</enum><header>Branching</header><text display-inline="no-display-inline">Notwithstanding the Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.), the Bank Holding Company Act of 1956
(12 U.S.C. 1841 et seq.), or any other provision of Federal or State law, a
savings association that becomes a bank may—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDBADA5EC2F3241F685D832CC7A7BCEF8"><enum>(1)</enum><text display-inline="yes-display-inline">continue to operate any branch or agency
that the savings association operated immediately before the savings
association became a bank; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H54DAC0AEAB7C4765B16D78991B9AB669"><enum>(2)</enum><text display-inline="yes-display-inline">establish, acquire, and operate additional
branches and agencies at any location within any State in which the savings
association operated a branch immediately before the savings association became
a bank, if 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.</text>
</paragraph></section><section id="HB646625D320D4736A28FA7F65143B623"><enum>342.</enum><header>Office of
Minority and Women Inclusion</header>
<subsection id="HF19F6F7458864447A647A08D4B537E6D"><enum>(a)</enum><header>Office of
Minority and Women Inclusion</header>
<paragraph id="HDD5F32569F2649B1A36D091A8AA70EEF"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="HA262419EC1674629AFEDC1C0ECA2E0DA"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), not later than 6
months after the date of enactment of this Act, each agency shall establish an
Office of Minority and Women Inclusion that shall be responsible for all
matters of the agency relating to diversity in management, employment, and
business activities.</text>
</subparagraph><subparagraph id="HA9C13E839D464B80B31C38A1EC0BFBCD"><enum>(B)</enum><header>Bureau</header><text>The
Bureau shall establish an Office of Minority and Women Inclusion not later than
6 months after the designated transfer date established under section
1062.</text>
</subparagraph></paragraph><paragraph id="H72AF5EADCDFA456C8CAEAE52524E51F4"><enum>(2)</enum><header>Transfer of
responsibilities</header><text>Each agency that, on the day before the date of
enactment of this Act, assigned the responsibilities described in paragraph (1)
(or comparable responsibilities) to another office of the agency shall ensure
that such responsibilities are transferred to the Office.</text>
</paragraph><paragraph commented="no" id="HFD7D7C03DB224A62A6698DF1C4ED957A"><enum>(3)</enum><header>Duties with
respect to civil rights laws</header><text>The responsibilities described in
paragraph (1) do not include enforcement of statutes, regulations, or executive
orders pertaining to civil rights, except each Director shall coordinate with
the agency administrator, or the designee of the agency administrator,
regarding the design and implementation of any remedies resulting from
violations of such statutes, regulations, or executive orders.</text>
</paragraph></subsection><subsection id="HF21ACD6E52454CECAF8CEE8C590679BF"><enum>(b)</enum><header>Director</header>
<paragraph id="H2A592CE6E4B74E0C9D99C71AF350AB5B"><enum>(1)</enum><header>In
general</header><text>The Director of each Office shall be appointed by, and
shall report to, the agency administrator. The position of Director shall be a
career reserved position in the Senior Executive Service, as that position is
defined in section 3132 of title 5, United States Code, or an equivalent
designation.</text>
</paragraph><paragraph id="H751DC66DBFEB4AFDB8CAE5328F5BDE7B"><enum>(2)</enum><header>Duties</header><text>Each
Director shall develop standards for—</text>
<subparagraph id="HFD9456EB59C44878B6C8B10AF298BF3C"><enum>(A)</enum><text>equal employment
opportunity and the racial, ethnic, and gender diversity of the workforce and
senior management of the agency;</text>
</subparagraph><subparagraph id="H29DD2D614EA04C658C7701BD95F17D0C"><enum>(B)</enum><text>increased
participation of minority-owned and women-owned businesses in the programs and
contracts of the agency, including standards for coordinating technical
assistance to such businesses; and</text>
</subparagraph><subparagraph id="H84FA6C54757E42959C2E4D1598C6BE33"><enum>(C)</enum><text>assessing the
diversity policies and practices of entities regulated by the agency.</text>
</subparagraph></paragraph><paragraph id="H2DEDCEFCE93C46FD888F693C01654F74"><enum>(3)</enum><header>Other
duties</header><text display-inline="yes-display-inline">Each Director shall
advise the agency administrator on the impact of the policies and regulations
of the agency on minority-owned and women-owned businesses.</text>
</paragraph><paragraph id="H9290CCF7060A48F796B7A488A38D32B9"><enum>(4)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Nothing in
paragraph (2)(C) may be construed to mandate any requirement on or otherwise
affect the lending policies and practices of any regulated entity, or to
require any specific action based on the findings of the assessment.</text>
</paragraph></subsection><subsection id="H77F2296024C84FD69D5EAD72409AC56D"><enum>(c)</enum><header>Inclusion in all
levels of business activities</header>
<paragraph id="H4122AFE32C544152A908016716A08958"><enum>(1)</enum><header>In
general</header><text>The Director of each Office shall develop and implement
standards and procedures to ensure, to the maximum extent possible, the fair
inclusion and utilization of minorities, women, and minority-owned and
women-owned businesses in all business and activities of the agency at all
levels, including in procurement, insurance, and all types of contracts.</text>
</paragraph><paragraph id="H24B5D69AB5544F5EBC08BC73D4912542"><enum>(2)</enum><header>Contracts</header><text>The
procedures established by each agency for review and evaluation of contract
proposals and for hiring service providers shall include, to the extent
consistent with applicable law, a component that gives consideration to the
diversity of the applicant. Such procedure shall include a written statement,
in a form and with such content as the Director shall prescribe, that a
contractor shall ensure, to the maximum extent possible, the fair inclusion of
women and minorities in the workforce of the contractor and, as applicable,
subcontractors.</text>
</paragraph><paragraph id="HD0F1044A6178436EB8854D0D32F310F9"><enum>(3)</enum><header>Termination</header>
<subparagraph id="H9C9671BA544A4A109F5ECEDED072D783"><enum>(A)</enum><header>Determination</header><text>The
standards and procedures developed and implemented under this subsection shall
include a procedure for the Director to make a determination whether an agency
contractor, and, as applicable, a subcontractor has failed to make a good faith
effort to include minorities and women in their workforce.</text>
</subparagraph><subparagraph id="H56CD671F9DF74E7CA8E85ECADB9645B1"><enum>(B)</enum><header>Effect of
determination</header>
<clause id="H44120A93A760457AAF96B04522C29E10"><enum>(i)</enum><header>Recommendation
to agency administrator</header><text>Upon a determination described in
subparagraph (A), the Director shall make a recommendation to the agency
administrator that the contract be terminated.</text>
</clause><clause id="H76EEB2E57B464B439F0F3199AD0C4010"><enum>(ii)</enum><header>Action by
agency administrator</header><text>Upon receipt of a recommendation under
clause (i), the agency administrator may—</text>
<subclause id="H933631D03F574365BE97F00D99872BC3"><enum>(I)</enum><text>terminate the
contract;</text>
</subclause><subclause id="HA334F2FE8DFC4C818B54C39FBA577122"><enum>(II)</enum><text>make a referral
to the Office of Federal Contract Compliance Programs of the Department of
Labor; or</text>
</subclause><subclause id="H8A60951EEAAC40D3AFFDD8078686226D"><enum>(III)</enum><text>take other
appropriate action.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H3644803E36E34833BA76510C2E2B4B64"><enum>(d)</enum><header>Applicability</header><text>This
section shall apply to all contracts of an agency for services of any kind,
including the services of financial institutions, investment banking firms,
mortgage banking firms, asset management firms, brokers, dealers, financial
services entities, underwriters, accountants, investment consultants, and
providers of legal services. The contracts referred to in this subsection
include all contracts for all business and activities of an agency, at all
levels, including contracts for the issuance or guarantee of any debt, equity,
or security, the sale of assets, the management of the assets of the agency,
the making of equity investments by the agency, and the implementation by the
agency of programs to address economic recovery.</text>
</subsection><subsection id="HBE7B5C58648645DC89E638613F9AB543"><enum>(e)</enum><header>Reports</header><text>Each
Office shall submit to Congress an annual report regarding the actions taken by
the agency and the Office pursuant to this section, which shall include—</text>
<paragraph id="H89C197D759BA470C9B7131299BD7BD1A"><enum>(1)</enum><text>a
statement of the total amounts paid by the agency to contractors since the
previous report;</text>
</paragraph><paragraph id="H92A6313C49064BF3ABCEF73DE6432C96"><enum>(2)</enum><text>the percentage of
the amounts described in paragraph (1) that were paid to contractors described
in subsection (c)(1);</text>
</paragraph><paragraph id="H4ACF2A753AEF47068F49E87E9B9FCABC"><enum>(3)</enum><text>the successes
achieved and challenges faced by the agency in operating minority and women
outreach programs;</text>
</paragraph><paragraph id="H0ED69693DF954DAB85FA8476BEEECE60"><enum>(4)</enum><text>the challenges the
agency may face in hiring qualified minority and women employees and
contracting with qualified minority-owned and women-owned businesses;
and</text>
</paragraph><paragraph id="H80693DB4F3094B36972D8B48522B9F4A"><enum>(5)</enum><text>any other
information, findings, conclusions, and recommendations for legislative or
agency action, as the Director determines appropriate.</text>
</paragraph></subsection><subsection id="H79F407CD3C2C4175A9586331FAD0C4A8"><enum>(f)</enum><header>Diversity in
agency workforce</header><text>Each agency shall take affirmative steps to seek
diversity in the workforce of the agency at all levels of the agency in a
manner consistent with applicable law. Such steps shall include—</text>
<paragraph id="H5AE253CA44234751921757116099A2D9"><enum>(1)</enum><text>recruiting at
historically black colleges and universities, Hispanic-serving institutions,
women's colleges, and colleges that typically serve majority minority
populations;</text>
</paragraph><paragraph id="H5B471A2F451B4CD7B41375BD21EE9F08"><enum>(2)</enum><text>sponsoring and
recruiting at job fairs in urban communities;</text>
</paragraph><paragraph id="H43C3A6DC0CB140ACB25DAED90F9B85D2"><enum>(3)</enum><text>placing employment
advertisements in newspapers and magazines oriented toward minorities and
women;</text>
</paragraph><paragraph id="H336A668CC2174A1D94AB9D23AEC634C9"><enum>(4)</enum><text>partnering with
organizations that are focused on developing opportunities for minorities and
women to place talented young minorities and women in industry internships,
summer employment, and full-time positions;</text>
</paragraph><paragraph id="HFDE6FDF25A3B4003B0CB9020A606B31A"><enum>(5)</enum><text>where feasible,
partnering with inner-city high schools, girls' high schools, and high schools
with majority minority populations to establish or enhance financial literacy
programs and provide mentoring; and</text>
</paragraph><paragraph id="HBF91D45A45654367B12E40FB83B5524F"><enum>(6)</enum><text>any other mass
media communications that the Office determines necessary.</text>
</paragraph></subsection><subsection id="H4FDA27E0A9EA4327BB2A0673B23226E6"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="HD0A241055C5941F5846D637638474BCB"><enum>(1)</enum><header>Agency</header><text>The
term <term>agency</term> means—</text>
<subparagraph id="H944CB75C601040C8A1A4B8ACB5747A91"><enum>(A)</enum><text>the Departmental
Offices of the Department of the Treasury;</text>
</subparagraph><subparagraph id="H5167BE7C9610423FABFED718CC61F005"><enum>(B)</enum><text>the
Corporation;</text>
</subparagraph><subparagraph id="HA3F9344F42DB4E4096FF9722F64BDAD5"><enum>(C)</enum><text>the Federal
Housing Finance Agency;</text>
</subparagraph><subparagraph id="HEDC47C743DB148379A3457270ECB01E8"><enum>(D)</enum><text>each of the
Federal reserve banks;</text>
</subparagraph><subparagraph id="H3902FF1182F94CBD9066D82108E61567"><enum>(E)</enum><text>the Board;</text>
</subparagraph><subparagraph id="HE87C6A1650CF4E65B45B6FC0FF263658"><enum>(F)</enum><text>the National
Credit Union Administration;</text>
</subparagraph><subparagraph id="H6C91DBD7E08842359FA15266322D25C4"><enum>(G)</enum><text>the Office of the
Comptroller of the Currency;</text>
</subparagraph><subparagraph id="H0FE279E07FE74FE9BB6112404227E3FB"><enum>(H)</enum><text>the Commission;
and</text>
</subparagraph><subparagraph id="HB58464D87C164D96830D006ACEB02AE6"><enum>(I)</enum><text>the Bureau.</text>
</subparagraph></paragraph><paragraph id="H91F73DE24B594BABAE8D9265A49B5EED"><enum>(2)</enum><header>Agency
administrator</header><text>The term <term>agency administrator</term> means
the head of an agency.</text>
</paragraph><paragraph id="H0C8D3A55DFD84BCBBF862B5F11CD4EB3"><enum>(3)</enum><header>Minority</header><text>The
term <term>minority</term> has the same meaning as in section 1204(c) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1811 note).</text>
</paragraph><paragraph id="H783EAC43270A4B8CA5001B793A87A252"><enum>(4)</enum><header>Minority-owned
business</header><text>The term <term>minority-owned business</term> has the
same meaning as in section 21A(r)(4)(A) of the Federal Home Loan Bank Act (12
U.S.C. 1441a(r)(4)(A)), as in effect on the day before the transfer
date.</text>
</paragraph><paragraph id="HEB814F374BC74CD4B65B883E6966EFA4"><enum>(5)</enum><header>Office</header><text>The
term <term>Office</term> means the Office of Minority and Women Inclusion
established by an agency under subsection (a).</text>
</paragraph><paragraph id="HF9403D84BB314F3C88C454539C6CC145"><enum>(6)</enum><header>Women-owned
business</header><text>The term <term>women-owned business</term> has the
meaning given the term <term>women's business</term> in section 21A(r)(4)(B) of
the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)(B)), as in effect on the
day before the transfer date.</text>
</paragraph></subsection></section><section id="HD16F645BB0DA4B2BA5F959623470DEA8"><enum>343.</enum><header>Insurance of
transaction accounts</header>
<subsection id="HFAD22C2BBB214E199EDB36FFDE5F8E36"><enum>(a)</enum><header>Banks and
savings associations</header>
<paragraph id="HD607D25323BA4E9F87A13C207568EE3B"><enum>(1)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 11(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(a)(1)) is amended—</text>
<subparagraph id="H65B793CB45B742B8906F8EE8F7B43257"><enum>(A)</enum><text>in subparagraph
(B)—</text>
<clause id="HB3DA9C6ED58D4565A285E9E3F5FF7AAC"><enum>(i)</enum><text>by
striking <quote>The net amount</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A9619BB199B4C679873E669FC5889E5" style="OLC">
<clause id="HEC5BEE58B1594CE2BC3ECA4FB5AF6DB9"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to clause
(ii), the net amount</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HF89E4D18EF214C5BB16A0AD1B28CD72E"><enum>(ii)</enum><text>by
adding at the end the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="H985C85E740C548138BDA7567B91F67F5" style="OLC">
<clause id="H61BE67C25F66473885E0E441380E8F56"><enum>(ii)</enum><header>Insurance for
noninterest-bearing transaction accounts</header><text display-inline="yes-display-inline">Notwithstanding clause (i), the Corporation
shall fully insure the net amount that any depositor at an insured depository
institution maintains in a noninterest-bearing transaction account. Such amount
shall not be taken into account when computing the net amount due to such
depositor under clause (i).</text>
</clause><clause id="H748AE102D8BF4F80B0F78CD5E50F2954"><enum>(iii)</enum><header>Noninterest-bearing
transaction account defined</header><text>For purposes of this subparagraph,
the term <quote>noninterest-bearing transaction account</quote> means a deposit
or account maintained at an insured depository institution—</text>
<subclause id="H341FCAF68A0E4D3E9C8FD1C4E4E51C3F"><enum>(I)</enum><text>with respect to
which interest is neither accrued nor paid;</text>
</subclause><subclause id="HC3F08BF4FF9F41B8B5228C7482A9F8FE"><enum>(II)</enum><text>on which the
depositor or account holder is permitted to make withdrawals by negotiable or
transferable instrument, payment orders of withdrawal, telephone or other
electronic media transfers, or other similar items for the purpose of making
payments or transfers to third parties or others; and</text>
</subclause><subclause id="HCF72EFE836A94ABE8735A150B46920B9"><enum>(III)</enum><text>on which the
insured depository institution does not reserve the right to require advance
notice of an intended withdrawal.</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H6107AFC01E6A41E39AEF920C8711DBE8"><enum>(B)</enum><text>in subparagraph
(C), by striking <quote>subparagraph (B)</quote> and inserting
<quote>subparagraph (B)(i)</quote>.</text>
</subparagraph></paragraph><paragraph id="HF70ED027474A4377B9DE4635ABA47DA4"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by paragraph (1) shall take effect on
December 31, 2010.</text>
</paragraph><paragraph id="H5BD066A94F4345228424926D97E13670"><enum>(3)</enum><header>Prospective
repeal</header><text>Effective January 1, 2013, section 11(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(1)), as amended by paragraph (1), is
amended—</text>
<subparagraph id="HE7D33A1F41A14339AC5FD1D6B94CB250"><enum>(A)</enum><text>in subparagraph
(B)—</text>
<clause id="H1463CE0A568F4DB0BE702936EE3DA8C0"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subparagraph" style="OLC">deposit</header-in-text>.—</quote> and all that follows through
<quote>clause (ii), the net amount</quote> and insert <quote><header-in-text level="subparagraph" style="OLC">deposit</header-in-text>.—The net
amount</quote>; and</text>
</clause><clause id="H39655863A883429B8C40E4B2E667D558"><enum>(ii)</enum><text>by
striking clauses (ii) and (iii); and</text>
</clause></subparagraph><subparagraph id="H9D73CBE474864612969CFCF17CD8E92B"><enum>(B)</enum><text>in subparagraph
(C), by striking <quote>subparagraph (B)(i)</quote> and inserting
<quote>subparagraph (B)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H7B95CC801C44454996944498D15EB751"><enum>(b)</enum><header>Credit
unions</header>
<paragraph id="H86C37A53C7D34B6DB11EFE13C81F1128"><enum>(1)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 207(k)(1) of the Federal Credit
Union Act (12 U.S.C. 1787(k)(1)) is amended—</text>
<subparagraph id="HCF327D115EAF4A0A90E8EC2651622C14"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="H352F54436315450F8DB8CC658FD67831"><enum>(i)</enum><text>by
striking <quote>Subject to the provisions of paragraph (2), the net
amount</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF2E5A1BE9B5A454C9C0308E91E90AA3F" style="OLC">
<clause id="H657356A1D60049C9A6FE2981B63E919A"><enum>(i)</enum><header>Net amount of
insurance payable</header><text display-inline="yes-display-inline">Subject to
clause (ii) and the provisions of paragraph (2), the net
amount</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H7211357E3ADA4C648578634DF3580912"><enum>(ii)</enum><text>by
adding at the end the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="H18D651304ADB474F98F6340CE17212FB" style="OLC">
<clause id="H421A4172DE434EC6B3C4C584B38C53C6"><enum>(ii)</enum><header>Insurance for
noninterest-bearing transaction accounts</header><text display-inline="yes-display-inline">Notwithstanding clause (i), the Board shall
fully insure the net amount that any member or depositor at an insured credit
union maintains in a noninterest-bearing transaction account. Such amount shall
not be taken into account when computing the net amount due to such member or
depositor under clause (i).</text>
</clause><clause id="H42598639C9D84200AC8413FD1612941B"><enum>(iii)</enum><header>Noninterest-bearing
transaction account defined</header><text>For purposes of this subparagraph,
the term <quote>noninterest-bearing transaction account</quote> means an
account or deposit maintained at an insured credit union—</text>
<subclause id="HEDAFE0A1599D41F9B8B1F0BFE4418652"><enum>(I)</enum><text>with respect to
which interest is neither accrued nor paid;</text>
</subclause><subclause id="H782E4E4B9F334E29BB6A47C5FFF9E5E0"><enum>(II)</enum><text>on which the
account holder or depositor is permitted to make withdrawals by negotiable or
transferable instrument, payment orders of withdrawal, telephone or other
electronic media transfers, or other similar items for the purpose of making
payments or transfers to third parties or others; and</text>
</subclause><subclause id="HF13A916A1CFA4B0890DDDC46D84C262E"><enum>(III)</enum><text>on which the
insured credit union does not reserve the right to require advance notice of an
intended withdrawal.</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HE5F68520D3944832BE69BA392E38EDC0"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>subparagraph (A)</quote> and inserting
<quote>subparagraph (A)(i)</quote>.</text>
</subparagraph></paragraph><paragraph id="HB73EFB75B9F84004B63AFFA4C9094662"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
paragraph (1) shall take effect upon the date of the enactment of this
Act</text>
</paragraph><paragraph id="H56CD30232A2442F995D346D67631A6F6"><enum>(3)</enum><header>Prospective
repeal</header><text display-inline="yes-display-inline">Effective January 1,
2013, section 207(k)(1) of the Federal Credit Union Act (12 U.S.C. 1787(k)(1)),
as amended by paragraph (1), is amended—</text>
<subparagraph id="H651BD66C1616411BA20907E65403B065"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="HCB800E5F33E94EA49244550FBEA65C02"><enum>(i)</enum><text>by
striking <quote><header-in-text level="clause" style="OLC"><enum-in-header>(i)</enum-in-header> Net amount of insurance
payable.—</header-in-text></quote> and all that follows through
<quote>paragraph (2), the net amount</quote> and inserting <quote>Subject to
the provisions of paragraph (2), the net amount</quote>; and</text>
</clause><clause id="H6A80794E5A154AE8B6265E924CB59B7D"><enum>(ii)</enum><text>by
striking clauses (ii) and (iii); and</text>
</clause></subparagraph><subparagraph id="HF4C88E8E086C416CACB8FD14BF433810"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>subparagraph (A)(i)</quote> and inserting
<quote>subparagraph (A)</quote>.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="H51B3BF111A544FAA9B8BC9C191800A44"><enum>E</enum><header>Technical and
conforming amendments</header>
<section id="H68DFD8BA2FF24CABB288B080BB20E2D5"><enum>351.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as provided in
section 364(a), the amendments made by this subtitle shall take effect on the
transfer date.</text>
</section><section id="H88DCF266D63441E293E4E552697F6A34"><enum>352.</enum><header>Balanced Budget
and Emergency Deficit Control Act of 1985</header><text display-inline="no-display-inline">Section 256(h) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 906(h)) is amended—</text>
<paragraph id="HEFA37CEF2F564D0FA25D5D42DB2E21E0"><enum>(1)</enum><text>in paragraph (4),
by striking subparagraphs (C) and (G); and</text>
</paragraph><paragraph id="H56FF448873DC4D2FAB743681C7C19F41"><enum>(2)</enum><text>by redesignating
subparagraphs (D), (E), (F), and (H) as subparagraphs (C), (D), (E), and (F),
respectively.</text>
</paragraph></section><section id="HA39C181532FA4E4B9D99ADED903209CA"><enum>353.</enum><header>Bank Enterprise
Act of 1991</header><text display-inline="no-display-inline">Section 232(a) of
the Bank Enterprise Act of 1991 (12 U.S.C. 1834(a)) is amended—</text>
<paragraph id="H29C28B16D283430E8E5F182025A538B3"><enum>(1)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">by
Federal Reserve Board</header-in-text></quote>;</text>
</paragraph><paragraph id="H9E08385EDAFB4235B310231DBB72B184"><enum>(2)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H5DB2960239A842D083B459278902005A"><enum>(A)</enum><text>by striking
<quote>The Board of Governors of the Federal Reserve System,</quote> and
inserting <quote>The Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph id="H27D823B0E8C446EA9ED297875A1C7182"><enum>(B)</enum><text>by striking
<quote>section 7(b)(2)(H)</quote> and inserting <quote>section
7(b)(2)(E)</quote>;</text>
</subparagraph></paragraph><paragraph id="H418BD427FD334E978FFD6D2624D36868"><enum>(3)</enum><text>in paragraph
(2)(A), by striking <quote>Board</quote> and inserting
<quote>Comptroller</quote>; and</text>
</paragraph><paragraph id="H701BFEAC345848FFACEDAA079F43A5E3"><enum>(4)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H91CD1D7D23FE4CF2BFD2D63FD080EE99"><enum>(A)</enum><text>by redesignating
subparagraphs (A) through (C) as subparagraphs (B) through (D), respectively;
and</text>
</subparagraph><subparagraph id="H76BC1BAF810243E586FE5E1AE2CD39F7"><enum>(B)</enum><text>by inserting
before subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5E429E357BEC41B8B659EA50BAACE018" style="OLC">
<subparagraph id="H541248CF146D4E4E9243FCE00FF3E367"><enum>(A)</enum><header>Comptroller</header><text>The
term <term>Comptroller</term> means the Comptroller of the
Currency.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="H6257C7AB116A44D583C662CC10D34088"><enum>354.</enum><header>Bank Holding
Company Act of 1956</header><text display-inline="no-display-inline">The Bank
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—</text>
<paragraph id="H88F1D02187CE4FB0AFA9A7028A69DD5E"><enum>(1)</enum><text>in section 2(j)(3)
(12 U.S.C. 1841(j)(3)), strike <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>appropriate Federal banking
agency</quote>;</text>
</paragraph><paragraph id="HE4FD3C452C2B482DA6BDDE9A4C5DF22A"><enum>(2)</enum><text>in section 4 (12
U.S.C. 1843)—</text>
<subparagraph commented="no" id="HC34E50FBF4AB4A148DD056F5929ABACC"><enum>(A)</enum><text>in subsection
(i)—</text>
<clause commented="no" id="H2FC74EE2F3C34DF29C88F0C1056EAA68"><enum>(i)</enum><text>in paragraph
(4)—</text>
<subclause commented="no" id="HDBB1AAA935BC46C699E86A619068A805"><enum>(I)</enum><text>in subparagraph
(A)—</text>
<item commented="no" id="H24B90BA1985F4BDA82F2CD5ABED77595"><enum>(aa)</enum><text>in the
subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">to director</header-in-text></quote>; and</text>
</item><item commented="no" id="HA8673FE561E74DCE8892F4A2F46A3081"><enum>(bb)</enum><text>by striking
<quote>Board</quote> and all that follows through the end of the subparagraph
and inserting “Board shall solicit comments and recommendations from—</text>
<quoted-block display-inline="no-display-inline" id="H11D3594508564727ACAF451942918972" style="OLC">
<clause commented="no" id="H4D35F393BE5A40CEA50D532E05D2DB51"><enum>(i)</enum><text>the Comptroller of
the Currency, with respect to the acquisition of a Federal savings association;
and</text>
</clause><clause commented="no" id="H556818EDE8FF4C7DB6988FBA3AAB1565"><enum>(ii)</enum><text>the Federal
Deposit Insurance Corporation, with respect to the acquisition of a State
savings
association.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</item></subclause><subclause commented="no" id="H276083A63CC24EC1983515475075F7AB"><enum>(II)</enum><text>in subparagraph
(B), by striking <quote>Director</quote> each place that term appears and
inserting <quote>Comptroller of the Currency or the Federal Deposit Insurance
Corporation, as applicable,</quote>;</text>
</subclause></clause><clause commented="no" id="H230EB8B5260C4978B6D8D1E179D83FB2"><enum>(ii)</enum><text>in paragraph
(5)—</text>
<subclause commented="no" id="H23C05C2F0D934AB6941313CBDC54E0BC"><enum>(I)</enum><text>in subparagraph
(B), by striking <quote>Director with</quote> and inserting <quote>Comptroller
of the Currency or the Federal Deposit Insurance Corporation, as applicable,
with</quote>; and</text>
</subclause><subclause commented="no" id="HA08A37F9EF4146DEA23DD0C712889D87"><enum>(II)</enum><text>by striking
<quote>Director</quote> each place that term appears and inserting
<quote>Comptroller of the Currency or the Federal Deposit Insurance
Corporation</quote>;</text>
</subclause></clause><clause commented="no" id="HACB912B1F1B5499D8BAA04A710173B8C"><enum>(iii)</enum><text>in paragraph
(6), by striking <quote>Director</quote> and inserting <quote>Comptroller of
the Currency or the Federal Deposit Insurance Corporation, as
applicable,</quote>; and</text>
</clause><clause commented="no" id="H20B7A12ED29C40DA990D98B6B26EC36D"><enum>(iv)</enum><text>by striking
paragraph (7); and</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H828C3935FFE240B79069A4DC6FC6CE6B"><enum>(3)</enum><text>in section 5(f)
(12 U.S.C. 1844(f))—</text>
<subparagraph commented="no" id="H1EAE66262FA74F408312139AA6402D6B"><enum>(A)</enum><text>by striking
<quote>subpena</quote> each place that term appears and inserting
<quote>subpoena</quote>;</text>
</subparagraph><subparagraph commented="no" id="HFD8A46000A4C481E82E6D340D5015A6E"><enum>(B)</enum><text>by striking
<quote>subpenas</quote> each place that term appears and inserting
<quote>subpoenas</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H8416716457BB44B7B03C756947420B32"><enum>(C)</enum><text>by striking
<quote>subpenaed</quote> and inserting <quote>subpoenaed</quote>.</text>
</subparagraph></paragraph></section><section commented="no" id="H62A3555AAF4B4927A606B03CFC0318BB"><enum>355.</enum><header>Bank Holding
Company Act Amendments of 1970</header><text display-inline="no-display-inline">Section 106(b)(1) of the Bank Holding
Company Act Amendments of 1970 (12 U.S.C. 1972(1)) is amended in the
undesignated matter following subparagraph (E) by inserting <quote>issue such
regulations as are necessary to carry out this section, and, in consultation
with the Comptroller of the Currency and the Federal Deposit Insurance Company,
may</quote> after <quote>The Board may</quote>.</text>
</section><section id="HA79C94FB97DF4368B4B19EE41A0F49EE"><enum>356.</enum><header>Bank Protection
Act of 1968</header><text display-inline="no-display-inline">The Bank
Protection Act of 1968 (12 U.S.C. 1881 et seq.) is amended—</text>
<paragraph id="H0EB587F1AE8A484EA70FAE07F7DE3BF7"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2 (12 U.S.C. 1881), by striking
<quote>the term</quote> and all that follows through the end of the section and
inserting <quote>the term <term>Federal supervisory agency</term> means the
appropriate Federal banking agency, as defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)).</quote>;</text>
</paragraph><paragraph id="HF0A1024A56954729B67A34E9806841F3"><enum>(2)</enum><text>in section 3 (12
U.S.C. 1882), by striking <quote>and loan</quote> each place that term appears;
and</text>
</paragraph><paragraph id="HAE8E0136677646C8BBF41B2031BDD9CF"><enum>(3)</enum><text>in section 5 (12
U.S.C. 1884), by striking <quote>and loan</quote>.</text>
</paragraph></section><section id="H825C80708AC2410995F3A55E4CCC3D0F"><enum>357.</enum><header>Bank Service
Company Act</header><text display-inline="no-display-inline">The Bank Service
Company Act (12 U.S.C. 1861 et seq.) is amended—</text>
<paragraph id="H5D586651C50843DE815B294D230CBA71"><enum>(1)</enum><text>in section 1(b)(4)
(12 U.S.C. 1861(b)(4))—</text>
<subparagraph id="HC1C80D4FA58042DB96D6E49588C1382C"><enum>(A)</enum><text>by inserting after
<quote>an insured bank,</quote> the following: <quote>a savings
association,</quote>;</text>
</subparagraph><subparagraph id="H69E7F337AA6C4BA4A6538D3BAAE63D0D"><enum>(B)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</subparagraph><subparagraph id="HAA76BE08545C49BCAB54C999E66A6860"><enum>(C)</enum><text>by striking
<quote>, the Federal Savings and Loan Insurance Corporation,</quote>;</text>
</subparagraph></paragraph><paragraph id="H164D265E687F482889CC81609019711A"><enum>(2)</enum><text>in section
1(b)(5), by striking <quote>term <quote>insured depository institution</quote>
has the same meaning as in section 3(c)</quote> and inserting <quote>terms
<quote>depository institution</quote> and <quote>savings association</quote>
have the same meanings as in section 3</quote>; and</text>
</paragraph><paragraph id="H92844B802A00474AA5B876ADCFA3BC9C"><enum>(3)</enum><text>in section 7(c)(2)
(12 U.S.C. 1867(c)(2)), by inserting <quote>each</quote> after
<quote>notify</quote>.</text>
</paragraph></section><section id="H98F08F245A834DD4807F320FF53346D1"><enum>358.</enum><header>Community
Reinvestment Act of 1977</header><text display-inline="no-display-inline">The
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended—</text>
<paragraph id="H088CB51613BB4398B6A3F629DD9B2FF4"><enum>(1)</enum><text>in section 803 (12
U.S.C. 2902)—</text>
<subparagraph id="HBFFB99B898AE47DF9FABEAADAC66DCB6"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H38621CCB740B445586AD3A5FA2FBBF81"><enum>(i)</enum><text>in
subparagraph (A), by inserting <quote>and Federal savings associations (the
deposits of which are insured by the Federal Deposit Insurance
Corporation)</quote> after <quote>banks</quote>;</text>
</clause><clause id="H1080B376F7D447D4941393B33F329AA7"><enum>(ii)</enum><text>in
subparagraph (B), by striking <quote>and bank holding companies</quote> and
inserting <quote>, bank holding companies, and savings and loan holding
companies</quote>; and</text>
</clause><clause id="H1477810AF17946E08683DB0FECB5BAE2"><enum>(iii)</enum><text>in
subparagraph (C), by striking <quote>; and</quote> and inserting <quote>, and
State savings associations (the deposits of which are insured by the Federal
Deposit Insurance Corporation).</quote>; and</text>
</clause></subparagraph><subparagraph id="H7AC3F62B4668480095AD0BDB5B9566B6"><enum>(B)</enum><text>by striking
paragraph (2) (relating to the Office of Thrift Supervision), as added by
section 744(q) of the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (Public Law 101–73; 103 Stat. 440); and</text>
</subparagraph></paragraph><paragraph id="H1077147CB8404EE4B3C57D31A7E4F50E"><enum>(2)</enum><text>in section 806 (12
U.S.C. 2905), by inserting <quote>, except that the Comptroller of the Currency
shall prescribe regulations applicable to savings associations and the Board of
Governors shall prescribe regulations applicable to insured State member banks,
bank holding companies and savings and loan holding companies,</quote> after
<quote>supervisory agency</quote>.</text>
</paragraph></section><section commented="no" id="HE244991832EF439699726EE0943F04E7"><enum>359.</enum><header>Crime Control
Act of 1990</header><text display-inline="no-display-inline">The Crime Control
Act of 1990 is amended—</text>
<paragraph commented="no" id="H3825FED821C5482D8E02EEFB1E896658"><enum>(1)</enum><text>in section
2539(c)(2) (28 U.S.C. 509 note)—</text>
<subparagraph commented="no" id="H1104E4546D4E419A82AFAA6D3FEB86BD"><enum>(A)</enum><text>by striking
subparagraphs (C) and (D); and</text>
</subparagraph><subparagraph commented="no" id="H97EEE409CC3A49DCA1CA993AF726BF27"><enum>(B)</enum><text>by redesignating
subparagraphs (E) through (H) as subparagraphs (C) through (G), respectively;
and</text>
</subparagraph></paragraph><paragraph commented="no" id="H801C3CC329274FDD8DA78E43FA7BD16E"><enum>(2)</enum><text>in section
2554(b)(2) (Public Law 101–647; 104 Stat. 4890)—</text>
<subparagraph commented="no" id="H382662A534FF48409708B57E460B9AB6"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>, the Director of the Office of Thrift
Supervision,</quote> and inserting <quote>the Comptroller of the
Currency</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HE8B0C16E5932440A947A241D8A7C9428"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>, the Director</quote> and all that follows through
<quote>Trust Corporation</quote> and inserting <quote>or the Federal Deposit
Insurance Corporation</quote>.</text>
</subparagraph></paragraph></section><section id="H44BDEBEC656E4D9E9FDC8AB4359552D5"><enum>360.</enum><header>Depository
Institution Management Interlocks Act</header><text display-inline="no-display-inline">The Depository Institution Management
Interlocks Act (12 U.S.C. 3201 et seq.) is amended—</text>
<paragraph id="H74AACF15775F4C62BCDD687D2BAC6EAE"><enum>(1)</enum><text>in section 207 (12
U.S.C. 3206)—</text>
<subparagraph id="H253F36ECB9D74E309C6F4DC9DBBDDEB1"><enum>(A)</enum><text>in paragraph (1),
by inserting before the comma at the end the following: <quote>and Federal
savings associations (the deposits of which are insured by the Federal Deposit
Insurance Corporation)</quote>;</text>
</subparagraph><subparagraph id="H6CBD2E9DCE0548749EEAB807CDC48E72"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>, and bank holding companies</quote> and inserting <quote>,
bank holding companies, and savings and loan holding companies</quote>;</text>
</subparagraph><subparagraph id="HBE13F3D4B1094ECB8321198CA70B9A1B"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>Corporation,</quote> and inserting <quote>Corporation and
State savings associations (the deposits of which are insured by the Federal
Deposit Insurance Corporation),</quote>;</text>
</subparagraph><subparagraph id="H6CE9025EAC1749FCA53CF8667314FE77"><enum>(D)</enum><text>by striking
paragraph (4);</text>
</subparagraph><subparagraph id="H70B1016FDAA84F8C9B923AC308B47783"><enum>(E)</enum><text>by redesignating
paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and</text>
</subparagraph><subparagraph id="H658D519D0844476A9AC7E21C518D705A"><enum>(F)</enum><text>in paragraph (5),
as so redesignated, by striking <quote>through (5)</quote> and inserting
<quote>through (4)</quote>;</text>
</subparagraph></paragraph><paragraph id="H1AD84F1703574AE899CDF17BF5D6B89E"><enum>(2)</enum><text>in section 209 (12
U.S.C. 3207)—</text>
<subparagraph id="HC7200D9D2D014C01B629D8551A951301"><enum>(A)</enum><text>in paragraph (1),
by inserting before the comma at the end the following: <quote>and Federal
savings associations (the deposits of which are insured by the Federal Deposit
Insurance Corporation)</quote>;</text>
</subparagraph><subparagraph id="HF8D315ABCEA84C2EB5C0B82A87FE5882"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>, and bank holding companies</quote> and inserting <quote>,
bank holding companies, and savings and loan holding companies</quote>;</text>
</subparagraph><subparagraph id="H06BD7819651048D287C52DFBC50D3372"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>Corporation,</quote> and inserting <quote>Corporation and
State savings associations (the deposits of which are insured by the Federal
Deposit Insurance Corporation),</quote>;</text>
</subparagraph><subparagraph id="H3D0F8A8C11564D8398AB4661A48AF94C"><enum>(D)</enum><text>by striking
paragraph (4); and</text>
</subparagraph><subparagraph id="H35327DC2845E4C6E92B48DE7BF9060CC"><enum>(E)</enum><text>by redesignating
paragraph (5) as paragraph (4); and</text>
</subparagraph></paragraph><paragraph id="H436F9524E6AD44779A8B5CAC5732A94A"><enum>(3)</enum><text>in section 210(a)
(12 U.S.C. 3208(a))—</text>
<subparagraph id="HDBFE17C197DC43A5811795C71DFE2AE3"><enum>(A)</enum><text>by striking
<quote>his</quote> and inserting <quote>the</quote>; and</text>
</subparagraph><subparagraph id="H73FE0892A1234C979257BB62EAE3AB01"><enum>(B)</enum><text>by inserting
<quote>of the Attorney General</quote> after <quote>enforcement
functions</quote>.</text>
</subparagraph></paragraph></section><section id="H7B3163A69A27402A830B6ACCC6FA3124"><enum>361.</enum><header>Emergency
Homeowners' Relief Act</header><text display-inline="no-display-inline">Section
110 of the Emergency Homeowners' Relief Act (12 U.S.C. 2709) is amended in the
second sentence, by striking <quote>Home Loan Bank Board, the Federal Savings
and Loan Insurance Corporation</quote> and inserting <quote>Housing Finance
Agency</quote>.</text>
</section><section id="HB8DE55DEBB094B36801B6516A246FBCB"><enum>362.</enum><header>Federal Credit
Union Act</header><text display-inline="no-display-inline">The Federal Credit
Union Act (12 U.S.C. 1751 et seq.) is amended—</text>
<paragraph id="H14C33FB78B064585B6DC4E70CFF79FAD"><enum>(1)</enum><text>in section 107(8)
(12 U.S.C. 1757(8)), by striking <quote>or the Federal Savings and Loan
Insurance Corporation</quote>;</text>
</paragraph><paragraph id="HA83EA2C6DC67449EB558CCCB8AE3ACB1"><enum>(2)</enum><text>in section 205 (12
U.S.C. 1785)—</text>
<subparagraph id="H0EFD704776B64B63922FAAF199685F3C"><enum>(A)</enum><text>in subsection
(b)(2)(G)(i), by striking <quote>the Office of Thrift Supervision and</quote>;
and</text>
</subparagraph><subparagraph id="H0C75701ADEC84DB6B273CF4944D05C2F"><enum>(B)</enum><text>in subsection
(i)(1), by striking <quote>or the Federal Savings and Loan Insurance
Corporation</quote>; and</text>
</subparagraph></paragraph><paragraph id="HE92107A751DF4FB59B9A0D0D17A0D803"><enum>(3)</enum><text>in section
206(g)(7) (12 U.S.C. 1786(g)(7))—</text>
<subparagraph id="HDDC1A34601004796A1F45674A0B2E27D"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="HF330EF84B13F46FD97C7F6555B8D6269"><enum>(i)</enum><text>in
clause (ii), by striking <quote>(b)(8)</quote> and inserting
<quote>(b)(9)</quote>;</text>
</clause><clause id="HFCD38AA315244DAABA14F0BD4BB675BE"><enum>(ii)</enum><text>in
clause (v)—</text>
<subclause id="H1F35E482B1D84DB788A9BD8853EB4F96"><enum>(I)</enum><text>by striking
<quote>depository</quote> and inserting <quote>financial</quote>; and</text>
</subclause><subclause id="H28CA3E89C1984ABC975B3F27572061ED"><enum>(II)</enum><text>by adding
<quote>and</quote> at the end;</text>
</subclause></clause><clause id="H0E21F9E0EFA74A888F783ED7714ACAC1"><enum>(iii)</enum><text>in
clause (vi)—</text>
<subclause id="H2DC84369E9F74CC8937F9D8230286277"><enum>(I)</enum><text>by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</subclause><subclause id="HD7D3C44B159840FCBA84D2E3F5BEBDF4"><enum>(II)</enum><text>by striking
<quote>; and</quote> and inserting a period; and</text>
</subclause></clause><clause id="H9129696F6A0041D1A15974A8815EFC49"><enum>(iv)</enum><text>by
striking clause (vii); and</text>
</clause></subparagraph><subparagraph id="HC67F0F32065A487DA17376C37950AD69"><enum>(B)</enum><text>in subparagraph
(D)—</text>
<clause id="HC8166FBABF314D85A1C723C5A6E0BD7D"><enum>(i)</enum><text>in
clause (iii), by adding <quote>and</quote> at the end;</text>
</clause><clause id="H9117D259DB4843F5AB78046B39D64B6C"><enum>(ii)</enum><text>in
clause (iv)—</text>
<subclause id="H76A875E789164BF89B807EF7D70BFD50"><enum>(I)</enum><text>by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</subclause><subclause id="H0A2757B6FE1E4719BE026D1379D58A15"><enum>(II)</enum><text>by striking
<quote>and</quote> at the end; and</text>
</subclause></clause><clause id="HBD2F46D3E3AC41A98AD6E800F04E97C9"><enum>(iii)</enum><text>by
striking clause (v).</text>
</clause></subparagraph></paragraph></section><section id="HEA82BA79DEBE4A1EB232BF2D4C3E3811"><enum>363.</enum><header>Federal Deposit
Insurance Act</header><text display-inline="no-display-inline">The Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—</text>
<paragraph id="HD5C85000126546DEB5ECF3B6A1DDD0D3"><enum>(1)</enum><text display-inline="yes-display-inline">in section 3 (12 U.S.C. 1813)—</text>
<subparagraph id="HEFE3FB02B944460C9EE8204DC7E09F10"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(C), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="HE61519D814FF498DAC3A249E7555EED1"><enum>(B)</enum><text>in subsection
(l)(5), in the matter preceding subparagraph (A), by striking <quote>Director
of the Office of Thrift Supervision,</quote>; and</text>
</subparagraph><subparagraph id="H6019DDB493D94D579E8567FA8105EB09"><enum>(C)</enum><text>in subsection (z),
by striking <quote>the Director of the Office of Thrift
Supervision,</quote>;</text>
</subparagraph></paragraph><paragraph id="HFA02536155474D938CC92434542F3E4E"><enum>(2)</enum><text display-inline="yes-display-inline">in section 7 (12 U.S.C. 1817)—</text>
<subparagraph id="H1824CDDCDC18423D92D13621F050E239"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<clause commented="no" display-inline="no-display-inline" id="HA9029A417A2C4EB4A55F08B0C147242A"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H6A5B180093DF484D8F79F1AD54704BDB"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<item commented="no" display-inline="no-display-inline" id="HCB685B5A97DD498BAFC24780386277D3"><enum>(aa)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>the Director of the Office of Thrift Supervision,</quote>;</text>
</item><item commented="no" display-inline="no-display-inline" id="HAA696B1D471A47A6B3BC7084F204DDA8"><enum>(bb)</enum><text display-inline="yes-display-inline">in the second sentence—</text>
<subitem commented="no" display-inline="no-display-inline" id="H6BB1E79F47B54E2186702DC0CDFBBA13"><enum>(AA)</enum><text display-inline="yes-display-inline">by striking <quote>the Director of the
Office of Thrift Supervision,</quote> and inserting <quote>to</quote>;
and</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="HF8F5989A8945486B88946787CBC91A1F"><enum>(BB)</enum><text display-inline="yes-display-inline">by inserting <quote>to</quote> before
<quote>any Federal home</quote>; and</text>
</subitem></item><item commented="no" display-inline="no-display-inline" id="H4109E78F5F5C404E9ADC92BD75705F87"><enum>(cc)</enum><text>by striking
<quote>Finance Board</quote> each place that term appears and inserting
<quote>Finance Agency</quote>; and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="H14A13B8913AF453D9E723E3949329C99"><enum>(II)</enum><text>in subparagraph
(B), by striking <quote>the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, and the Director of the Office of Thrift
Supervision,</quote> and inserting <quote>the Comptroller of the Currency and
the Board of Governors of the Federal Reserve System,</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HCA7B3B173FFD4879B91F7E2621BD46CF"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (3), in the first sentence, by
striking <quote>Comptroller of the Currency, the Chairman of the Board of
Governors of the Federal Reserve System, and the Director of the Office of
Thrift Supervision.</quote> and inserting <quote>Comptroller of the Currency,
and the Chairman of the Board of Governors of the Federal Reserve
System.</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H906CBA782AF442828230F152810FF38F"><enum>(iii)</enum><text>in paragraph
(6), by striking <quote>section 232(a)(3)(C)</quote> and inserting
<quote>section 232(a)(3)(D)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2EE9C3551CD944DBA25661F3CCF336B4"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking <quote>, the
Director of the Office of Thrift Supervision,</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8183E1ABE2994FD3BB3710A4F25A2E78"><enum>(B)</enum><text>in subsection
(n)—</text>
<clause commented="no" display-inline="no-display-inline" id="H2649D8264B314B9986C09228C82D2D85"><enum>(i)</enum><text>in the heading, by
striking <quote><header-in-text level="subsection" style="OLC">Director of the
Office of Thrift Supervision</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Comptroller of the
Currency</header-in-text></quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H84CBA6F95E034D1F9B931E20A5D54229"><enum>(ii)</enum><text>in the first
sentence—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD5F1F70C5C0B49F9BD256A9639A147AD"><enum>(I)</enum><text>by striking
<quote>the Director of the Office of Thrift Supervision</quote> and inserting
<quote>the Comptroller of the Currency</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HC95FBB73FC574985A5B0DCF5D31E25DF"><enum>(II)</enum><text display-inline="yes-display-inline">by inserting <quote>Federal</quote> before
<quote>savings associations</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HB74DF845A7854F8E8434F91B5C23F1B8"><enum>(iii)</enum><text display-inline="yes-display-inline">in the third sentence, by striking <quote>,
the Financing Corporation, and the Resolution Funding Corporation</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7D227CD3F5CC4FF1A78509C658641FB2"><enum>(iv)</enum><text>by striking
<quote>the Director</quote> each place that term appears and inserting
<quote>the Comptroller</quote>;</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB5EFB618E52146AA93B25DF0A6610EA6"><enum>(3)</enum><text>in section 8 (12
U.S.C. 1818)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDF62A9C852D342C8BB6EC4CFE2BAB4D1"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(8)(B)(ii), in the last
sentence, by striking <quote>Director of the Office of Thrift
Supervision</quote> each place that term appears and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="HE79E4323A055493A89A7F8E8B7BD19C0"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b)(3)—</text>
<clause id="H3AD0780853B6485A81A3E05CE9BE1D91"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>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</quote> after
<quote>Bank Holding Company Act of 1956,</quote>; and</text>
</clause><clause id="H8B784548A2EA44E7AFC9622FF78585B3"><enum>(ii)</enum><text>by
inserting <quote>or against a savings and loan holding company or any
subsidiary thereof (other than a depository institution or a subsidiary of such
depository institution)</quote> before the period at the end;</text>
</clause></subparagraph><subparagraph id="H1F04EE3B993B4C52A1E840E555A1C166"><enum>(C)</enum><text>by striking
paragraph (9) of subsection (b) and inserting the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD045771905E443918F8E84ECC8F0F332" style="OLC">
<paragraph id="H21F7E640A74E4288AB2E6A6A359DAFB2"><enum>(9)</enum><text display-inline="yes-display-inline">[Repealed]</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB01DA64CE457469E85D7DA24E42D420C"><enum>(D)</enum><text>in subsection
(e)(7)—</text>
<clause commented="no" display-inline="no-display-inline" id="H6A36A5BD667549868C0C9CF27683F992"><enum>(i)</enum><text>in subparagraph
(A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H829F5F0339B24531A1A021E0CF451C92"><enum>(I)</enum><text>in clause (v), by
inserting <quote>and</quote> after the semicolon;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA7952919D75C47F7876A8DD6560DDE97"><enum>(II)</enum><text>in clause
(vi)—</text>
<item commented="no" display-inline="no-display-inline" id="H950978B7D7B2461A860210745F05706B"><enum>(aa)</enum><text>by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H596D8E96B7DC4ADD9AD84497EA84DA13"><enum>(bb)</enum><text>by striking
<quote>; and</quote> and inserting a period; and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HF8A85F54094444C49D969300A361AA23"><enum>(III)</enum><text>by striking
clause (vii); and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H014A172DF93146AB9E04967638E6005A"><enum>(ii)</enum><text>in subparagraph
(D)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD92B006BFDA24E188773111D40CE21EA"><enum>(I)</enum><text>in clause (iii),
by inserting <quote>and</quote> after the semicolon;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H85A84C23D10D4EA696746B4201F1F393"><enum>(II)</enum><text>in clause
(iv)—</text>
<item commented="no" display-inline="no-display-inline" id="H44C893A98E1344A5AC6378B9E22751F5"><enum>(aa)</enum><text>by striking
<quote>Board</quote> and inserting <quote>Agency</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H6F2EAFBAB1904904A1C998DA1215EF11"><enum>(bb)</enum><text>by striking
<quote>; and</quote> and inserting a period; and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HD8B988C03140416B906ADBB14AF62426"><enum>(III)</enum><text>by striking
clause (v);</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC1128E8B8BE24D88A108D49F441E2D0A"><enum>(E)</enum><text>in subsection
(j)—</text>
<clause commented="no" display-inline="no-display-inline" id="H77A5A23BC8A041EF9AC9F938D84A4D6B"><enum>(i)</enum><text>in paragraph (2),
by striking <quote>, or as a savings association under subsection (b)(9) of
this section</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD712A93633314DEFB894721D8CA70EEE"><enum>(ii)</enum><text>in paragraph (3),
by inserting <quote>or</quote> after the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD71ECC4A7AE9439B85FCD1985B406046"><enum>(iii)</enum><text>in paragraph
(4), by striking <quote>; or</quote> and inserting a comma; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H36734655186441C9B4D58F0A3E7CBDAE"><enum>(iv)</enum><text>by striking
paragraph (5);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8CA3E9408019414C8611F06034A83F21"><enum>(F)</enum><text display-inline="yes-display-inline">in subsection (o), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA81E186499BC4B5C9E789EB834D02899"><enum>(G)</enum><text display-inline="yes-display-inline">in subsection (w)(3)(A), by striking
<quote>and the Office of Thrift Supervision</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H15CBD15D604D4226851479C168012828"><enum>(4)</enum><text>in section 10 (12
U.S.C. 1820)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE50F2746A90B49DC9A855FD824778C08"><enum>(A)</enum><text>in subsection
(d)(5), by striking <quote>or the Resolution Trust Corporation</quote> each
place that term appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8671EFE6D4A740A7BF3F438A6FEC2F0F"><enum>(B)</enum><text>in subsection
(k)(5)(B)—</text>
<clause commented="no" display-inline="no-display-inline" id="HF84F70325BB34FD09B57799C9DDE20CC"><enum>(i)</enum><text>in clause (ii), by
inserting <quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFC9EDD9016E742A296E4F4C3AF5D18B2"><enum>(ii)</enum><text>in clause (iii),
by striking <quote>; and</quote> and inserting a period; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H335FD052C07542228E22C1C3CC6E1BBF"><enum>(iii)</enum><text>by striking
clause (iv);</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07626242DC704EE1A5F3B3E2875C5463"><enum>(5)</enum><text>in section 11 (12
U.S.C. 1821)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD41D3DDE48954E5E9AD502FBE040360D"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<clause commented="no" display-inline="no-display-inline" id="H65D44F4ED34841AC803398A0DF5F057F"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (2)(A)(ii), by striking
<quote>(other than section 21A of the Federal Home Loan Bank
Act)</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCC001201433449A39706D79791329930"><enum>(ii)</enum><text>in paragraph (4),
by striking <quote>Except as otherwise provided in section 21A of the Federal
Home Loan Bank Act and notwithstanding</quote> and inserting
<quote>Notwithstanding</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H41BF5FA5AB734611B1E8F806ACB3F4EB"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (6)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9DBCEAA6A8DF40F08D5F265F2907E358"><enum>(I)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote><header-in-text level="paragraph" style="OLC">Director of the Office of
Thrift Supervision</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Comptroller of the
Currency</header-in-text></quote>;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H00940590ADF04428B939772C178DDA86"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<item commented="no" display-inline="no-display-inline" id="HE643ACF957A6417080F9B1B8173BE698"><enum>(aa)</enum><text display-inline="yes-display-inline">by striking <quote>or the Resolution Trust
Corporation</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="HEFCE0100FDAC486EAE1355D83BEE627C"><enum>(bb)</enum><text display-inline="yes-display-inline">by striking <quote>Director of the Office
of Thrift Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>; and</text>
</item></subclause><subclause id="H239308F792BE450794A3D8998CEDBAB0"><enum>(III)</enum><text display-inline="yes-display-inline">by amending subparagraph (B) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H69E753B193364ED1A741BAE20C5477E1" style="OLC">
<subparagraph id="H5CADAE7E92DF4F85B7E5DCAB0F9E6902"><enum>(B)</enum><header>Receiver</header><text display-inline="yes-display-inline">The Corporation may, at the discretion of
the Comptroller of the Currency, be appointed receiver and the Corporation may
accept any such
appointment.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H38AA7FF6BC9D48779E780187B2356488"><enum>(iv)</enum><text>in paragraph
(12)(A), by striking <quote>or the Resolution Trust Corporation</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE1024847D60F43BDA1CDE92D3B69B86F"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<clause commented="no" display-inline="no-display-inline" id="H4B465F69F99B47C0AE9845830F5C0A9E"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (17)(A), by striking <quote>or
the Director of the Office of Thrift Supervision</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H85385B3D49B34B41873BE192F6695C2A"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (18)(B), by striking <quote>or
the Director of the Office of Thrift Supervision</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA16B2D6ADB5D457A8C7FDE41F966097F"><enum>(C)</enum><text>in subsection
(m)—</text>
<clause commented="no" display-inline="no-display-inline" id="H7462BEB72757465C982D20FBB8E8E105"><enum>(i)</enum><text>in paragraph (9),
by striking <quote>or the Director of the Office of Thrift Supervision, as
appropriate</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6BC9D8A0163D45E391DC15DC23D60F7D"><enum>(ii)</enum><text>in paragraph
(16), by striking <quote>or the Director of the Office of Thrift Supervision,
as appropriate</quote> each place that term appears; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H98252C5A7FE34B44B2B0061BE297AD5C"><enum>(iii)</enum><text>in paragraph
(18), by striking <quote>or the Director of the Office of Thrift Supervision,
as appropriate</quote> each place that term appears;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBE30A2A02E4442C8BA9F911E3E0FE1E4"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (n)—</text>
<clause commented="no" display-inline="no-display-inline" id="H8EDDC1631536492A9CD58F4EC00BF2EF"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1)(A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H941EDFBA8308490995D25741356983F9"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>, or the Director of the
Office of Thrift Supervision, with respect to</quote> and inserting
<quote>or</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H50399DF542B541B1B4291C7FB66C0C78"><enum>(II)</enum><text>by striking
<quote>applicable,,</quote> and inserting <quote>applicable,</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4A41E294722B497692DAAE49E43A3D7B"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking <quote>or
the Director of the Office of Thrift Supervision</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCBB6947E077B4FB195D2AFF3D5D5B8EA"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (4)(D), by striking <quote>and
the Director of the Office of Thrift Supervision, as
appropriate,</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD1441AD9EB944A418A62D0B345D22A4C"><enum>(iv)</enum><text display-inline="yes-display-inline">in paragraph (4)(G), by striking <quote>and
the Director of the Office of Thrift Supervision, as appropriate,</quote>;
and</text>
</clause><clause id="H5798AC8192FF46399891F2F9712DA918"><enum>(v)</enum><text display-inline="yes-display-inline">in paragraph (12)(B)—</text>
<subclause id="H9BF2B69084A44F7A90B3EC20E6A127B9"><enum>(I)</enum><text>by inserting
<quote>as</quote> after <quote>shall appoint the Corporation</quote>;</text>
</subclause><subclause id="HA1F82E5F01104E6B852C6F10961F2820"><enum>(II)</enum><text>by striking
<quote>or the Director of the Office of Thrift Supervision, as
appropriate,</quote> each place such term appears;</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H189337ECFCB146E392316B71C7515C6D"><enum>(E)</enum><text>in subsection
(p)—</text>
<clause commented="no" display-inline="no-display-inline" id="H269E13694A464757BACE5C14C9F92441"><enum>(i)</enum><text>in paragraph
(2)(B), by striking <quote>the Corporation, the FSLIC Resolution Fund, or the
Resolution Trust Corporation,</quote> and inserting <quote>or the
Corporation,</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H86F6FAFBF77F49E892080BE8B13BF6EE"><enum>(ii)</enum><text>in paragraph
(3)(B), by striking <quote>, the FSLIC Resolution Fund, the Resolution Trust
Corporation,</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB1CEEFF13E314CB1B81989AA3BF1ED82"><enum>(F)</enum><text>in subsection (r),
by striking <quote>and the Resolution Trust Corporation</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC1EB951A7ACB4708B4E9B1301CEA0CC8"><enum>(6)</enum><text>in section
13(k)(1)(A)(iv) (12 U.S.C. 1823(k)(1)(A)(iv)), by striking <quote>Director of
the Office of Thrift Supervision</quote> and inserting <quote>Comptroller of
the Currency</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEF8B1864C89E409D955523C88EDC853F"><enum>(7)</enum><text>in section 18 (12
U.S.C. 1828)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD097927362EA40B7A66F5675099F9ABD"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)(2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H45CA541D98BE4720B86F0D5C38B92AF1"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or
a Federal savings association</quote> before the semicolon;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H30873F4BBD9240B9A07EA2BAD9FD56D8"><enum>(ii)</enum><text>in subparagraph
(B), by adding <quote>and</quote> at the end;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H12D5B822E781457FA3FB260F1191A87B"><enum>(iii)</enum><text>in subparagraph
(C), by striking <quote>(except</quote> and all that follows through <quote>;
and</quote> and inserting <quote>or a State savings association.</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB4C7D9FD584844E5A658CD1C9B461E8A"><enum>(iv)</enum><text>by striking
subparagraph (D);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H69B24510E6044F88A8D8BD73B821F10D"><enum>(B)</enum><text>in subsection
(g)(1), by striking <quote>the Director of the Office of Thrift
Supervision</quote>and inserting <quote>the Comptroller of the
Currency</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF9399B233D5C49578CB6AD7E3B21D86E"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (i)(2)(C), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Corporation</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAAEC39DE51C543C39B46A9A1B8D73486"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (m)—</text>
<clause commented="no" display-inline="no-display-inline" id="HBFBF9D1158E84AAA9634E780C6FAC66E"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H4C8173F524AF4CB0814764E096FA9ADC"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>and
the Director of the Office of Thrift Supervision</quote> and inserting
<quote>or the Comptroller of the Currency, as appropriate,</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8D9B7B0BE567441CB4EA45866094A141"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>and
orders of the Director of the Office of Thrift Supervision</quote> and
inserting <quote>of the Comptroller of the Currency and orders of the
Corporation and the Comptroller of the Currency</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HD3143C1728974E40BA32FB5AA947A119"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA6DA44C6F7D645F58E2424F96453E995"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency, as appropriate,</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H6667817D41F24E639D7F1A165C7D5E09"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<item commented="no" display-inline="no-display-inline" id="H5E42EAC6BA6549748B048CD2D00976C9"><enum>(aa)</enum><text display-inline="yes-display-inline">in the matter before clause (i), by
striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Corporation or the Comptroller of the Currency, as
appropriate,</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H7F005A5FAA2E4C8089DDB455372FADD7"><enum>(bb)</enum><text display-inline="yes-display-inline">in the matter following clause (ii)—</text>
<subitem commented="no" display-inline="no-display-inline" id="HFAD3E19CC57E4EF9B211F2D5E847F93E"><enum>(AA)</enum><text display-inline="yes-display-inline">in the first sentence, by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Office of the Comptroller of the Currency, as appropriate,</quote>;
and</text>
</subitem><subitem commented="no" display-inline="no-display-inline" id="H187FCC597AEB4F5C9AF440057BDCABE2"><enum>(BB)</enum><text display-inline="yes-display-inline">by striking the second sentence and
inserting the following: <quote>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.</quote>;
and</text>
</subitem></item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H75097E981E8846F79FE16E63EF48DAC4"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H393D805F26154A4988C07770723A1876"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A), in the second
sentence—</text>
<item commented="no" display-inline="no-display-inline" id="H038CD8CDF12C4D5CA3C2BFC872B677D8"><enum>(aa)</enum><text>by inserting
<quote>, in the case of a Federal savings association,</quote> before
<quote>consult with</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H448EB1FDD0F94DD4ABCD45CCBD526BE4"><enum>(bb)</enum><text display-inline="yes-display-inline">by striking <quote>Director of the Office
of Thrift Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>; and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="H64B95D0001D24F59A705814D4BA7BE90"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<item commented="no" display-inline="no-display-inline" id="HAD651F1768B84CE28A5BA46039CA2BDC"><enum>(aa)</enum><text display-inline="yes-display-inline">in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">Director</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">Comptroller of the
Currency</header-in-text></quote>;</text>
</item><item commented="no" display-inline="no-display-inline" id="H392CB78DA56F45C0BBAE0DFAC11070D0"><enum>(bb)</enum><text display-inline="yes-display-inline">by striking <quote>Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>;</text>
</item><item commented="no" display-inline="no-display-inline" id="H5F5A043194E24F2FA23E90680909BE10"><enum>(cc)</enum><text display-inline="yes-display-inline">by inserting a comma after
<quote>soundness</quote>; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H828ED34F815C4620BCA59469AE2DE867"><enum>(dd)</enum><text>by inserting
<quote>as to Federal savings associations</quote> after
<quote>compliance</quote>;</text>
</item></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4EE532972ABF46FC9C5CA385429D30DC"><enum>(8)</enum><text>in section 19(e)
(12 U.S.C. 1829(e))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD22B7BA2BF1E44BCBB59BA6247932773"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Board of Governors of the Federal Reserve System</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7A74A78DF1FB4CA8A2F9D6C316A16E75"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Board of Governors of the Federal Reserve
System</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB35046867AF34D1BB8F3B61512857BB8"><enum>(9)</enum><text>in section 28 (12
U.S.C. 1831e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA3E3F248E4B468CB1B2DE018F8BB6B4"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<clause commented="no" display-inline="no-display-inline" id="H7971597AC8F54009AA9E6DBC58E52463"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1FC4D7FDED3E4E24A44BD6EF4AA97DBF"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency or the Corporation, as
appropriate</quote>;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H24DC67AA456A4D768BF339765B6A1C8F"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency or the Corporation, as appropriate,</quote>;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H405DF1A873AC44EE8E56633A9E1B75D9"><enum>(III)</enum><text display-inline="yes-display-inline">in subparagraph (F), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency or the Corporation, as appropriate</quote>;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H3D61E2658351448C9F0716F56D0A496C"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HCB6D1AA833174161BEFBC347B5F19F6C"><enum>(I)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency or the Corporation, as appropriate</quote>;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H797FBAB689A642D0962DCA1D0DCA6E0C"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency or the Corporation, as appropriate,</quote>;
and</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0EA4C593C7E3460EA2CE74F922F30E10"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (h)(2), by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency, of the Corporation,</quote>; and</text>
</subparagraph></paragraph><paragraph id="H0648A41AEF1A412F9FB497634E27FEF4"><enum>(10)</enum><text display-inline="yes-display-inline">in section 33(e) (12 U.S.C. 1831j(e)), by
striking <quote>Federal Housing Finance Board, the Comptroller of the Currency,
and the Director of the Office of Thrift Supervision</quote> and inserting
<quote>Federal Housing Finance Agency and the Comptroller of the
Currency</quote>.</text>
</paragraph></section><section id="HBABF6A5C29BE4F609EFE2E054514E0E0"><enum>364.</enum><header>Federal Home
Loan Bank Act</header>
<subsection id="H94DB5FA046C94462B549F8A86F4FC42C"><enum>(a)</enum><header>Repeal of
section 18<enum-in-header>(c)</enum-in-header></header><text>Effective 90 days
after the transfer date, section 18(c) of the Federal Home Loan Bank Act (12
U.S.C. 1438(c)) is repealed.</text>
</subsection><subsection id="H49E7F8060EAE47F4BAB351840C753B78"><enum>(b)</enum><header>Repeal of
section 21A</header><text>Section 21A of the Federal Home Loan Bank Act (12
U.S.C. 1441a) is repealed.</text>
</subsection></section><section id="H2EF70A132B604D74B785D9EE9F95F344"><enum>365.</enum><header>Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</header><text display-inline="no-display-inline">The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended—</text>
<paragraph id="H503668D3718C41A29B8532D9335451F8"><enum>(1)</enum><text display-inline="yes-display-inline">in section 1315(b) (12 U.S.C. 4515(b)), by
striking <quote>the Federal Deposit Insurance Corporation, and the Office of
Thrift Supervision.</quote> and inserting <quote>and the Federal Deposit
Insurance Corporation.</quote>; and</text>
</paragraph><paragraph id="H36F4F3A3EAE34D9D8A2A7937BE704975"><enum>(2)</enum><text>in section 1317(c)
(12 U.S.C. 4517(c)), by striking <quote>the Federal Deposit Insurance
Corporation, or the Director of the Office of Thrift Supervision</quote> and
inserting <quote>or the Federal Deposit Insurance Corporation</quote>.</text>
</paragraph></section><section id="H049418D1C35B4E25B9F0ADB03CC6DAE7"><enum>366.</enum><header>Federal Reserve
Act</header><text display-inline="no-display-inline">The Federal Reserve Act
(12 U.S.C. 221 et seq.) is amended—</text>
<paragraph id="HF4F57848783D49319AC56B8FE0AB1FF6"><enum>(1)</enum><text>in section
11(a)(2) (12 U.S.C. 248(a)(2))—</text>
<subparagraph id="HEA610F938989465E987C9AE2415A34EE"><enum>(A)</enum><text>by inserting
<quote>State savings associations that are insured depository institutions (as
defined in section 3 of the Federal Deposit Insurance Act),</quote> after
<quote>case of insured</quote>;</text>
</subparagraph><subparagraph id="HCE7614514D674A14AD1FA68C987104E2"><enum>(B)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H0DDAD4F9F1814419BFE97CE3A0DDD94E"><enum>(C)</enum><text>by inserting
<quote>Federal</quote> before <quote>savings association which</quote>;
and</text>
</subparagraph><subparagraph id="H778928670F6D4DB9B2363A1D0F08B2E2"><enum>(D)</enum><text>by striking
<quote>savings and loan association</quote> and inserting <quote>savings
association</quote>; and</text>
</subparagraph></paragraph><paragraph id="HEC07369746034A148D0CCDFB923F7EA2"><enum>(2)</enum><text>in section 19(b)
(12 U.S.C. 461(b))—</text>
<subparagraph id="H3B7E54C16B034F2D8738109D50D66C94"><enum>(A)</enum><text>in paragraph
(1)(F), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph id="H3E49395D2DD4410CA94FC8F11447A426"><enum>(B)</enum><text>in paragraph
(4)(B), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>.</text>
</subparagraph></paragraph></section><section id="H0F708640FA2F482B82C58069951702A8"><enum>367.</enum><header>Financial
Institutions Reform, Recovery, and Enforcement Act of 1989</header><text display-inline="no-display-inline">The Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 is amended—</text>
<paragraph id="H692A1F97DAFF47398D136A653C07D019"><enum>(1)</enum><text>in section 203 (12
U.S.C. 1812 note), by striking subsection (b);</text>
</paragraph><paragraph id="HB601C3A8F95E4565AB0DD962061F518C"><enum>(2)</enum><text>in section 302(1)
(12 U.S.C. 1467a note), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>;</text>
</paragraph><paragraph id="H7F521DFAF1D3457A9709DA48D963912E"><enum>(3)</enum><text>in section 305(12
U.S.C. 1464 note), by striking subsection (b);</text>
</paragraph><paragraph id="H7B4DCF14683B44E0AD6E663B432B4F5B"><enum>(4)</enum><text>in section 308 (12
U.S.C. 1463 note)—</text>
<subparagraph id="HED5F264958AC41B6869787F6139E16BF"><enum>(A)</enum><text>in subsection (a),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Chairman of the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, the Chairman of the National Credit
Union Administration,</quote>; and</text>
</subparagraph><subparagraph id="H53EADCB5F07C490A86BBF9F090E46C46"><enum>(B)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HED6DF51731044766B8B613B26C9B0CF9" style="OLC">
<subsection id="H41EBA2E8598A43B580D64C11B1FD3C36"><enum>(c)</enum><header>Reports</header><text display-inline="yes-display-inline">The Secretary of the Treasury, the Chairman
of the Board of Governors of the Federal Reserve System, the Comptroller of the
Currency, the Chairman of the National Credit Union Administration, and the
Chairperson of Board of Directors of the Federal Deposit Insurance Corporation
shall each submit an annual report to the Congress containing a description of
actions taken to carry out this
section.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9E5B6CC0196944B792F91FE22B0DFDFC"><enum>(5)</enum><text>in section 402 (12
U.S.C. 1437 note)—</text>
<subparagraph id="H2985703FD4F54F268E615CC0212F9E80"><enum>(A)</enum><text>in subsection (a),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H1DCCDB02B7B842FFB15E35EC5F3A2931"><enum>(B)</enum><text>by striking
subsection (b);</text>
</subparagraph><subparagraph id="H6DC400CBDBCE4C14AA7E08C1E9842879"><enum>(C)</enum><text>in subsection
(e)—</text>
<clause id="HE51F955FE4E74CB1BCE8472C3143DAA2"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>; and</text>
</clause><clause id="H05413D9BD4494F4BB6AF4FBB9AFFBFBF"><enum>(ii)</enum><text>in
each of paragraphs (2), (3), and (4), by striking <quote>Director of the Office
of Thrift Supervision</quote> each place that term appears and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</clause></subparagraph><subparagraph id="H49910086C6DC43EFA1068136D669CFF5"><enum>(D)</enum><text>by striking
<quote>Federal Housing Finance Board</quote> each place that term appears and
inserting <quote>Federal Housing Finance Agency</quote>;</text>
</subparagraph></paragraph><paragraph id="H39E60598F9B540E3932EAF033C49EE42"><enum>(6)</enum><text>in section 1103(a)
(12 U.S.C. 3332(a)), by striking <quote>and the Resolution Trust
Corporation</quote>;</text>
</paragraph><paragraph id="H9B731D35AF7741D296D925398C4B6821"><enum>(7)</enum><text>in section 1205(b)
(12 U.S.C. 1818 note)—</text>
<subparagraph id="H92CE58651A6E46AE8F239A8E43E10B57"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H3A7AC9B26BA4413CB9F61FECB8C38B28"><enum>(i)</enum><text>by
striking subparagraph (B); and</text>
</clause><clause id="H4E379FCED5A54C378C283C7343446ABD"><enum>(ii)</enum><text>by
redesignating subparagraphs (C) through (F) as subparagraphs (B) through (E),
respectively; and</text>
</clause></subparagraph><subparagraph id="HA4868FEAA44649B99A405368C4E74134"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>paragraph (1)(F)</quote> and inserting <quote>paragraph
(1)(E)</quote>;</text>
</subparagraph></paragraph><paragraph id="H25F12AAF440B4E5580677EC6DB50912D"><enum>(8)</enum><text>in section 1206
(12 U.S.C. 1833b)—</text>
<subparagraph id="HFC87FB169D5749558C97BCF55B8B147C"><enum>(A)</enum><text>by striking
<quote>Board, the Oversight Board of the Resolution Trust Corporation</quote>
and inserting <quote>Agency, and</quote>; and</text>
</subparagraph><subparagraph id="H7677D92E3BDB4CFCA36A26BFA8992A6C"><enum>(B)</enum><text>by striking
<quote>, and the Office of Thrift Supervision</quote>;</text>
</subparagraph></paragraph><paragraph id="H22B3DA9E632D4E07A8F1D107629A6BB9"><enum>(9)</enum><text>in section 1216
(12 U.S.C. 1833e)—</text>
<subparagraph id="HD1C1E6FA40C543D8A60B3A5896FF299C"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H10C61082CB854642A1C7ACBEF9484860"><enum>(i)</enum><text>in
paragraph (3), by adding <quote>and</quote> at the end;</text>
</clause><clause id="HD9C04DB0C91E4D44AFA9750E528399AA"><enum>(ii)</enum><text>in
paragraph (4), by striking the semicolon at the end and inserting a
period;</text>
</clause><clause id="H81573A42A10444548B5C32D0D1B51586"><enum>(iii)</enum><text>by
striking paragraphs (2), (5), and (6); and</text>
</clause><clause id="H020A22AF4E734B5E859CB3C4C57D2DCE"><enum>(iv)</enum><text>by
redesignating paragraphs (3) and (4), as paragraphs (2) and (3),
respectively;</text>
</clause></subparagraph><subparagraph id="H433EC16FF044485F86D1329D552A7239"><enum>(B)</enum><text>in subsection
(c)—</text>
<clause id="HE334BE52491F4CFC81062D49137C2D4C"><enum>(i)</enum><text>by
striking <quote>the Director of the Office of Thrift Supervision,</quote> and
inserting <quote>and</quote>; and</text>
</clause><clause id="H690C77D17C1B4865BD8207B068622E08"><enum>(ii)</enum><text>by
striking <quote>the Thrift Depositor Protection Oversight Board of the
Resolution Trust Corporation, and the Resolution Trust Corporation</quote>;
and</text>
</clause></subparagraph><subparagraph id="H6309D1B85DBB41F3BD299A02F2031594"><enum>(C)</enum><text>in subsection
(d)—</text>
<clause id="H3192CF02E9F8408D8FD4636F737A1072"><enum>(i)</enum><text>by
striking paragraphs (3), (5), and (6); and</text>
</clause><clause id="H47CD0E68FD1240FBA3AEC190778B2BE5"><enum>(ii)</enum><text>by
redesignating paragraphs (4), (7), and (8) as paragraphs (3), (4), and (5),
respectively.</text>
</clause></subparagraph></paragraph></section><section id="H7D50BA31256C414DB3CEC45BD10E85A9"><enum>368.</enum><header>Flood Disaster
Protection Act of 1973</header><text display-inline="no-display-inline">Section
3(a)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a)(5)) is
amended by striking <quote>, the Office of Thrift Supervision</quote>.</text>
</section><section id="HE2CB1C41EA8345AE970EE1ED00441689" section-type="subsequent-section"><enum>369.</enum><header>Home Owners' Loan
Act</header><text display-inline="no-display-inline">The Home Owners' Loan Act
(12 U.S.C. 1461 et seq.) is amended—</text>
<paragraph id="H41439DD80DC041AEAD8FDD90D039D041"><enum>(1)</enum><text>in section 1 (12
U.S.C. 1461), by striking the table of contents;</text>
</paragraph><paragraph id="HBEC4468465654DF79D37596977ECDEB7"><enum>(2)</enum><text>in section 2 (12
U.S.C. 1462), as amended by this Act—</text>
<subparagraph id="H77413DAFEC37405FAAE4F6E85EF94BBD"><enum>(A)</enum><text>by striking
paragraphs (1) and (3);</text>
</subparagraph><subparagraph id="H9C8CD2610E9F41E9813AA29E46B4D184"><enum>(B)</enum><text>by redesignating
paragraph (2) as paragraph (1);</text>
</subparagraph><subparagraph id="H7E9D00F2D13E477B95FC028CCCED0BF7"><enum>(C)</enum><text>by redesignating
paragraphs (4) through (9) as paragraphs (2) through (7), respectively;
and</text>
</subparagraph><subparagraph id="H11B12756063541DC94BD15AD70D8383C"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC39791A7D3E146E5A31A19395F5FF5AF" style="OLC">
<paragraph id="HB29D979C2CB6445383BFEF48F6480C37"><enum>(8)</enum><header>Board</header><text>The
term <term>Board</term>, other than in the context of the Board of Directors of
the Corporation, means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><paragraph id="H4EA78F0A2A78489BAB9D779AD6C9D3AC"><enum>(9)</enum><header>Comptroller</header><text>The
term <term>Comptroller</term> means the Comptroller of the
Currency.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H92EFCA63A24948EEB893335CF6406C7B"><enum>(3)</enum><text>in section 3 (12
U.S.C. 1462a)—</text>
<subparagraph commented="no" id="HB9FD0D1C513A4E10B1ED785595C1E2C7"><enum>(A)</enum><text>by striking the
section heading and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC8A5BC980CA4A13B518A9AFAE45619C" style="OLC">
<section commented="no" id="HEF58542AAD7B4C9E9BAB7CD252C7EB4B"><enum>3.</enum><header>Administrative
provisions</header>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H894F78EB94244255B5B3DE381FCA45B0"><enum>(B)</enum><text>by striking
subsections (a), (b), (c), (d), (g), (h), (i), and (j);</text>
</subparagraph><subparagraph commented="no" id="H37D8D45257094CBFB250F4C04D425C2A"><enum>(C)</enum><text>by redesignating
subsections (e) and (f) as subsections (a) and (b), respectively;</text>
</subparagraph><subparagraph commented="no" id="H27DED1345A8A4304AEED2DD60C3F9DFD"><enum>(D)</enum><text>in subsection (a),
as so redesignated—</text>
<clause commented="no" id="H88B525B4DCA4435F9D772537ECF6DEA5"><enum>(i)</enum><text>in the heading by
striking <quote><header-in-text level="subsection" style="OLC">of the
director</header-in-text></quote>; and</text>
</clause><clause commented="no" id="H366C692B444B46C586BDD702E4266B57"><enum>(ii)</enum><text>in the matter
preceding paragraph (1), by striking <quote>The Director</quote> and inserting
<quote>In accordance with subtitle A of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, the appropriate Federal banking
agency</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="H8E3A0EBA8CA549FAA30BA2C2D2B8A5C6"><enum>(E)</enum><text>in subsection (b),
as so redesignated, by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subparagraph></paragraph><paragraph id="H7B16F1E9E9794876B6D6AAD3BC14DBF0"><enum>(4)</enum><text>in section 4 (12
U.S.C. 1463)—</text>
<subparagraph id="H560A2308E41743A4864AEEA9D100238F"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="HD544F6F55B3048A08AE16CD18F7B584C"><enum>(i)</enum><text>in
the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Federal</header-in-text></quote>;</text>
</clause><clause id="H3C2234B695514E6BB773DAF46ABAD05A"><enum>(ii)</enum><text>by
striking paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H0F589AB5802049B89C4DFCB23CD98FF4" style="OLC">
<paragraph commented="no" id="H4208D1B64125480390E964AE5718C032"><enum>(1)</enum><header>Examination and
safe and sound operation</header>
<subparagraph commented="no" id="H44A4814C28714C85A788548147DCE327"><enum>(A)</enum><header>Federal savings
associations</header><text>The Comptroller shall provide for the examination
and safe and sound operation of Federal savings associations.</text>
</subparagraph><subparagraph commented="no" id="H4CE635C4F9414AEF90EAFA97FCC2364A"><enum>(B)</enum><header>State savings
associations</header><text>The Corporation shall provide for the examination
and safe and sound operation of State savings associations.</text>
</subparagraph></paragraph><paragraph id="H44EF51DD03404F1BAD3BBC6C7524A9EF"><enum>(2)</enum><header>Regulations for
savings associations</header><text>The Comptroller may prescribe regulations
with respect to savings associations, as the Comptroller determines to be
appropriate to carry out the purposes of this
Act.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H458149C1984642FD9AFBFEC9CE96C1EB"><enum>(iii)</enum><text>in
paragraph (3), by striking <quote>Director</quote> each place that term appears
and inserting <quote>Comptroller and the Corporation</quote>;</text>
</clause></subparagraph><subparagraph id="H79135AB8C2754078BCA1F01C68FC86A7"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="HCF4D140166C74B47BE79F9E3596B6F38"><enum>(i)</enum><text>in
paragraph (2)—</text>
<subclause id="HB0A7236EDABA420EB7EE68723A12B905"><enum>(I)</enum><text>in subparagraph
(A), by adding <quote>and</quote> at the end;</text>
</subclause><subclause id="HA3E5C23A91C34BCB9E4BEF62C6671CF5"><enum>(II)</enum><text>in subparagraph
(B), by striking <quote>; and</quote> and inserting a period; and</text>
</subclause><subclause id="HD9EB03CB02F64259B6AD23D93F4227D2"><enum>(III)</enum><text>by striking
subparagraph (C); and</text>
</subclause></clause><clause id="HD568FFF51CFE45CD8D66CB0FCDDA4832"><enum>(ii)</enum><text>by
striking <quote>Director</quote> each place that term appears and inserting
<quote>Comptroller</quote>;</text>
</clause></subparagraph><subparagraph id="H9E0FAA0A4F7143AE9F5F3F0514CBD734"><enum>(C)</enum><text>in subsection
(c)—</text>
<clause id="H54C6D13219794EF6BFC296F2D2F49922"><enum>(i)</enum><text>by
striking <quote>All regulations and policies of the Director</quote> and
inserting <quote>The regulations of the Comptroller and the policies of the
Comptroller and the Corporation</quote>; and</text>
</clause><clause id="HAF25B0F782A64F1A900DA661A892866C"><enum>(ii)</enum><text>by
striking <quote>of the Currency</quote>;</text>
</clause></subparagraph><subparagraph id="H04F5AA7F12FB43EBB09976DD4AD9D4B1"><enum>(D)</enum><text>in subsection
(e)(5), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="HF20C65E35519445286342B5A17392D14"><enum>(E)</enum><text>in subsection (f),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</subparagraph><subparagraph id="H30B0C4FD128C432498BC152CE31F4FF1"><enum>(F)</enum><text>in subsection (h),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subparagraph></paragraph><paragraph id="H2682CD67EBD5422280E69E17200E12D5"><enum>(5)</enum><text>in section 5 (12
U.S.C. 1464)—</text>
<subparagraph id="HA8867FF745874431A0A143F9E188E5E7"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>Director</quote>, each place such term appears and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H398ABE955D4649A98702C006BC6463B1"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b), by striking
<quote>Director</quote>, each place such term appears and inserting
<quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H0BA867A2CABB4FAA9EF6B0F4E0DF40CE"><enum>(C)</enum><text>in subsection
(c)—</text>
<clause id="H1535CA3C89884F108F0D8A3FC2DA375D"><enum>(i)</enum><text>in
paragraph (5)—</text>
<subclause id="H24E0DB42292C4E66B9EF80648DACE2C7"><enum>(I)</enum><text>in subparagraph
(A), by striking <quote>Director</quote> and inserting <quote>appropriate
Federal banking agency</quote>; and</text>
</subclause><subclause id="HEC703EFE474441B499B34AB462D445AE"><enum>(II)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<item id="H6C708D2B60764B97B76D8AF7F5DD7C7C"><enum>(aa)</enum><text>by
striking <quote>The Director</quote> and inserting <quote>The appropriate
Federal banking agency</quote>; and</text>
</item><item id="HEE491C6D9D6246039EC3E8CF283E6CBE"><enum>(bb)</enum><text>by
striking <quote>the Director</quote> and inserting <quote>the appropriate
Federal banking agency</quote>;</text>
</item></subclause></clause></subparagraph><subparagraph id="HBE437A3D0E9D45F097CCC1402012A9F4"><enum>(D)</enum><text>in subsection
(d)—</text>
<clause id="H21CF9C84D48D47AC8FC731013338BAA5"><enum>(i)</enum><text>in
paragraph (1)—</text>
<subclause id="H64B5E5B843984FAF98F5FA6D1E77E42A"><enum>(I)</enum><text>in subparagraph
(A)—</text>
<item id="HBF42D7693DD448D9993B08D3161E2CB8"><enum>(aa)</enum><text>in
the first sentence, by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</item><item id="HC52A8885D7FC42FFAF352E45403E4FBC"><enum>(bb)</enum><text>in
the second sentence—</text>
<subitem id="H513E6164915D4FC6A77CE68368F3600D"><enum>(AA)</enum><text>by
striking <quote>Director's own name and through the Director's own
attorneys</quote> and inserting <quote>name of the appropriate Federal banking
agency and through the attorneys of the appropriate Federal banking
agency</quote>; and</text>
</subitem><subitem id="H0D6AA004B2D4460088A532083352F3D5"><enum>(BB)</enum><text>by
striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</subitem></item><item id="H97EC125DAD3A4ABBA7B85E935F525874"><enum>(cc)</enum><text>in
the third sentence, by striking <quote>Director</quote> each place that term
appears and inserting <quote>Comptroller</quote>;</text>
</item></subclause><subclause id="H247CB6B4797F43118200E6174BCB74A3"><enum>(II)</enum><text>in subparagraph
(B)—</text>
<item id="H2C33E46119FB47238F0EB05C812D3526"><enum>(aa)</enum><text>in
clauses (i) through (iv), by striking <quote>Director</quote> each place that
term appears and inserting <quote>appropriate Federal banking
agency</quote>;</text>
</item></subclause><subclause id="H459D66DEB3B84A6F9EF8E7B84880AEA5"><enum>(III)</enum><text>in clause
(v)—</text>
<item id="HA9EE6237B0F54E41B8F3C0778BAEE5C7"><enum>(aa)</enum><text>in
the matter preceding subclause (I), by striking <quote>Director</quote> and
inserting <quote>appropriate Federal banking agency</quote>;</text>
</item><item id="H88D453CE74BD416788D5FA13420C59A4"><enum>(bb)</enum><text>in
subclause (II), by striking <quote>subpenas</quote> and inserting
<quote>subpoenas</quote>; and</text>
</item><item id="HA6ED054EC98F459BA22075A241226266"><enum>(cc)</enum><text>in
the matter following subclause (II), by striking <quote>subpena</quote> and
inserting <quote>subpoena</quote>;</text>
</item></subclause><subclause id="HF324E48B08BB492B89E40A7D2786CA92"><enum>(IV)</enum><text>in clause
(vi)—</text>
<item id="H7989BF9409B64808978AE2FE84F4A3C0"><enum>(aa)</enum><text>in
the first sentence, by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</item><item id="H6A3D6DA3AC984B92B66BEF3F23F32A19"><enum>(bb)</enum><text>in
the second sentence, by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</item></subclause><subclause id="HDCC4342652C54BD08AA211A33E99A091"><enum>(V)</enum><text>in clause
(vii)—</text>
<item id="H576EFA8E4C644CFB904ACC676A0ACCA3"><enum>(aa)</enum><text>in
the first sentence, by striking <quote>subpena</quote> and inserting
<quote>subpoena</quote>;</text>
</item><item id="HF4F4B40203644A209D30A58ABB9FE188"><enum>(bb)</enum><text>in
the second sentence, by striking <quote>subpenaed</quote> and inserting
<quote>subpoenaed</quote>; and</text>
</item><item id="HBA93F061C14249DA9308F88A17ACB9F2"><enum>(cc)</enum><text>in
the third sentence, by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</item></subclause></clause><clause id="H430C93A29E484F1E9E0DF40A52FAA6B2"><enum>(ii)</enum><text>in
paragraph (2)—</text>
<subclause id="H31FCD0EB604248D092C1C53D54A1F55B"><enum>(I)</enum><text>in subparagraph
(A)—</text>
<item id="HA7F5484ACEC54290B6A981A22120FF19"><enum>(aa)</enum><text>by
striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>appropriate Federal banking agency</quote>;</text>
</item><item id="H58EEE3FA49AF4738B2B98832E1629B8C"><enum>(bb)</enum><text>by
striking <quote>any insured savings association</quote> and inserting <quote>an
insured savings association</quote>; and</text>
</item><item id="H7A31D9A1A71D4211AFFDBEBD41CBA83B"><enum>(cc)</enum><text>by
striking <quote>Director determines, in the Director's discretion</quote> and
inserting <quote>appropriate Federal banking agency determines, in the
discretion of the appropriate Federal banking agency</quote>;</text>
</item></subclause><subclause id="HAFB0DAB8706C4717B8497E59122AB48E"><enum>(II)</enum><text>in subparagraph
(B), by striking <quote>Director</quote> each place that term appears and
inserting <quote>appropriate Federal banking agency</quote>;</text>
</subclause><subclause id="HE524C802A37A40CDA1A8A94B9A0C9153"><enum>(III)</enum><text>in subparagraphs
(C) and (D), by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subclause><subclause id="HF31DE99C8B81478DB324FD3C435EA491"><enum>(IV)</enum><text>in subparagraph
(E)—</text>
<item id="H46C401F247C94276A8F8D3C2499913DA"><enum>(aa)</enum><text>in
clause (ii)—</text>
<subitem id="HE354205C06264FAEA9F460AB9E3E95C2"><enum>(AA)</enum><text>in
the clause heading, by striking <quote><header-in-text level="clause" style="OLC">or rtc</header-in-text></quote>; and</text>
</subitem><subitem id="H02EF3D9A5DBA4B659CCE3E7FFE2AC05C"><enum>(BB)</enum><text>by
striking <quote>or the Resolution Trust Corporation, as appropriate,</quote>
each place that term appears; and</text>
</subitem></item><item id="HF13B945475ED47F7BED217BBDF9FDAB9"><enum>(bb)</enum><text>by
striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</item></subclause></clause><clause id="H7FE60640FDAF486C8C83DB66ED55D0A2"><enum>(iii)</enum><text>in
paragraph (3)—</text>
<subclause id="H68F0D6B6BA7244B7A77E8F8B7675933E"><enum>(I)</enum><text>in subparagraph
(A), by striking <quote>Director</quote> each place that term appears and
inserting <quote>Comptroller</quote>; and</text>
</subclause><subclause id="HD5C5330725594FCDBCE62C7B87AE8B06"><enum>(II)</enum><text>in subparagraph
(B)—</text>
<item id="H8D350AC2A8B04FF8B025875BFF808331"><enum>(aa)</enum><text>in
the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">or rtc</header-in-text></quote>;</text>
</item><item id="H8694D78C8E0341BF93D35038A7828BF5"><enum>(bb)</enum><text>by
striking <quote>Corporation or the Resolution Trust</quote>; and</text>
</item><item id="H0ECE95C552CB4AED8110A6585E5821EE"><enum>(cc)</enum><text>by
striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</item></subclause></clause><clause id="H6B2EC2771FD0420A890A3A907328144C"><enum>(iv)</enum><text>in
paragraph (4), by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</clause><clause id="HA4F28562911346CDB02B6AACBD620ED1"><enum>(v)</enum><text>in
paragraph (6)—</text>
<subclause id="HF955E166A3E6438F9FB90ED6D29F3725"><enum>(I)</enum><text>in subparagraph
(A), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>; and</text>
</subclause><subclause id="H1C64A3C9624D4AB7972801E780C67AD7"><enum>(II)</enum><text>in subparagraphs
(B) and (C), by striking <quote>Director</quote> each place that term appears
and inserting <quote>appropriate Federal banking agency</quote>;</text>
</subclause></clause><clause id="H231C13F2C5E742B897165CC4BDB53AC9"><enum>(vi)</enum><text>in
paragraph (7)—</text>
<subclause id="H0CBC1E4075AB4AA9AABE8F92D5996A49"><enum>(I)</enum><text>in subparagraphs
(A), (B), and (D), by striking <quote>Director</quote> each place that term
appears and inserting <quote>appropriate Federal banking agency</quote>;</text>
</subclause><subclause id="H5167B5714B5B4AB2BBD5881FAEB5F992"><enum>(II)</enum><text>in subparagraph
(C), by striking <quote>Director</quote> and inserting <quote>Federal Deposit
Insurance Corporation or the Comptroller, as appropriate,</quote>; and</text>
</subclause><subclause id="HEE63E811505F49768327DEE3E5E53694"><enum>(III)</enum><text>by striking
subparagraph (E) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE1BDAC2A4BE149BC8FD2D794C2A8AFDA" style="OLC">
<subparagraph id="HF42FE8BE73754F47AFB963E52C60A1C8"><enum>(E)</enum><header>Administration
by the comptroller and the corporation</header><text>The Comptroller may issue
such regulations, and the appropriate Federal banking agency may issue such
orders, including those issued pursuant to section 8 of the Federal Deposit
Insurance Act, as may be necessary to administer and carry out this paragraph
and to prevent evasion of this
paragraph.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subclause></clause></subparagraph><subparagraph id="HA8D591DF6F4C4A4E94A90B66C5FFE20C"><enum>(E)</enum><text>in subsection
(e)(2), strike <quote>Director</quote> and insert
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="H8F87F76ED92148A4BF76E4A49E74D698"><enum>(F)</enum><text>in subsection
(i)—</text>
<clause id="H8629A987FDAD4C6E944339B9EE5E5CC5"><enum>(i)</enum><text>by
striking <quote>Director</quote>, each place such term appears, and inserting
<quote>Comptroller</quote>;</text>
</clause><clause id="HCF1F66040AA14E89A62FCCC18FCB42B9"><enum>(ii)</enum><text>in
paragraph (2), in the heading, by striking <quote><header-in-text level="paragraph" style="OLC">director</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Comptroller</header-in-text></quote>;</text>
</clause><clause id="HE820206475F4429EAE76BAF18149398E"><enum>(iii)</enum><text>in
paragraph (5)(A), by striking <quote>of the Currency</quote>; and</text>
</clause><clause id="HA45225DC0E0F4C9A85C31338CF449152"><enum>(iv)</enum><text>except as
provided in clauses (i) through (iii), by striking <quote>Director</quote> each
place such term appears and inserting <quote>Comptroller</quote>;</text>
</clause></subparagraph><subparagraph id="HCB289E34A08A4DE3BDBAC7B2E1228B2A"><enum>(G)</enum><text display-inline="yes-display-inline">in subsection (o)—</text>
<clause id="H5C146B87694C4D298AC1182A668CC89A"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>; and</text>
</clause><clause id="HC9B0BBDAA28143B1B7F2D00FF900B527"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by striking
<quote>Director’s determination</quote> and inserting <quote>determination of
the Comptroller</quote>;</text>
</clause></subparagraph><subparagraph id="H666E53D354B54F9D88E10D16AB4E9A79"><enum>(H)</enum><text>in subsections
(m), (n), (o), and (p), by striking <quote>Director</quote>, each place such
term appears, and inserting <quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="HD68A463C4FE54896BDC758014A9AB15B"><enum>(I)</enum><text>in subsection
(q)—</text>
<clause id="H410BBEFC58C24CB2A11756C8ED62EF3D"><enum>(i)</enum><text>in
paragraph (6), by striking <quote>of Governors of the Federal Reserve
System</quote>;</text>
</clause><clause id="H4B5E5B58012741329CF0BCD1906C4C3A"><enum>(ii)</enum><text>by
striking <quote>Director</quote> each place that term appears and inserting
<quote>Board</quote>; and</text>
</clause><clause id="HE2D438B32DE84E73B5B42BAD1AF4C5FF"><enum>(iii)</enum><text>by
inserting <quote>in consultation with the Comptroller and the
Corporation,</quote> before <quote>considers</quote>;</text>
</clause></subparagraph><subparagraph id="HB51BBF3A6FD8410784A7ECCD4A6A71D0"><enum>(J)</enum><text>in subsection
(r)(3), by striking <quote>Director</quote> and inserting <quote>Comptroller of
the Currency</quote>;</text>
</subparagraph><subparagraph id="HEEAC2E260907442B8C78BE5F3DA995D7"><enum>(K)</enum><text>in subsection
(s)—</text>
<clause id="H08B8F903E4C24C10AA1CB70A0F911F39"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1), strike
<quote>Director</quote> and insert <quote>Comptroller of the
Currency</quote>;</text>
</clause><clause id="H3B7E26E75DE24AD4AD01342A5479C1F4"><enum>(ii)</enum><text>in
paragraph (2), strike <quote>Director</quote> and insert <quote>Comptroller of
the Currency</quote>;</text>
</clause><clause commented="no" id="HC11B95B4E22A4AC989A12229CCD8340D"><enum>(iii)</enum><text>in paragraph
(3), by striking <quote>Director's discretion, the Director</quote> and
inserting <quote>discretion of the appropriate Federal banking agency, the
appropriate Federal banking agency,</quote>;</text>
</clause><clause commented="no" id="HC35B9408FF2D4FE0A797A268262B000A"><enum>(iv)</enum><text>in paragraph (4),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</clause><clause commented="no" id="H9791A0737246404EA7381C5905FC0C27"><enum>(v)</enum><text>in paragraph
(5)—</text>
<subclause commented="no" id="H8408A579244C4075BCBE684D7B896E99"><enum>(I)</enum><text>by striking
<quote>Director</quote>, each place such term appears, and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</subclause><subclause commented="no" id="HE4970E42C02A494481D0196810EBF79D"><enum>(II)</enum><text>by striking
<quote>Director's approval</quote> and inserting <quote>approval of the
appropriate Federal banking agency</quote>;</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H9AC55A2F35244699AC7DB8AF46B44976"><enum>(L)</enum><text>in subsection
(t)—</text>
<clause commented="no" id="H8C1516D8F02A4B9E9BC727F2B30FF27D"><enum>(i)</enum><text>in paragraph (1),
by striking subparagraph (D);</text>
</clause><clause commented="no" id="H21396FC54C1D4B8CB83888A95AC7A8B2"><enum>(ii)</enum><text>by striking
paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA5F87D931CEA4464BE39B41DD2080886" style="OLC">
<paragraph commented="no" id="HE43C3722544E47ACB52A0F8C35D23289"><enum>(3)</enum><text>[Repealed].</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause commented="no" id="H2A8EA5C29D244E92B780ECB9CD135C70"><enum>(iii)</enum><text>in paragraph
(5)—</text>
<subclause commented="no" id="H8AC5DCD9A1BE43CEBF2F8E55D7635701"><enum>(I)</enum><text>in subparagraph
(B), by striking <quote>Corporation, in its sole discretion</quote> and
inserting <quote>appropriate Federal banking agency, in the sole discretion of
the appropriate Federal banking agency</quote>; and</text>
</subclause><subclause commented="no" id="H837F9907A31A495482DBFD78880B23EB"><enum>(II)</enum><text>by striking
subparagraph (D);</text>
</subclause></clause><clause commented="no" id="HBB654DBD14394024A59A79901C099B4A"><enum>(iv)</enum><text>in paragraph
(6)—</text>
<subclause commented="no" id="HD9253A79D9A24D65B92884A2DA687230"><enum>(I)</enum><text>by striking
subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HCF905442AEC044CA84D41D54C0115614" style="OLC">
<subparagraph commented="no" id="HB5674B44A87842239F36798FD3994DF0"><enum>(A)</enum><text>[Reserved].</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subclause><subclause commented="no" id="H0759EFA017CF427EBA71625920665AE5"><enum>(II)</enum><text>in subparagraph
(B), by striking <quote>Director</quote> each place that term appears and
inserting <quote>appropriate Federal banking agency</quote>;</text>
</subclause><subclause commented="no" id="H731573D9829345E692EB3A0DCC081FC8"><enum>(III)</enum><text>in subparagraph
(C)—</text>
<item commented="no" id="H7432882CE99E4D768319C860A4D48E48"><enum>(aa)</enum><text>in clause (i), by
striking <quote>Director's prior approval</quote> and inserting <quote>prior
approval of the appropriate Federal banking agency</quote>;</text>
</item><item commented="no" id="HEEC3856B4FE94F90BB7679FF4A25B31C"><enum>(bb)</enum><text>in clause (ii),
by striking <quote>Director's discretion</quote> and inserting
<quote>discretion of the appropriate Federal banking agency</quote>; and</text>
</item><item commented="no" id="H76C68F341ABE4692AB152746F1F894D8"><enum>(cc)</enum><text>by striking
<quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</item></subclause><subclause commented="no" id="HB3CBC92EC4A045F8AB7F407A1CB7DB76"><enum>(IV)</enum><text>in subparagraph
(E), by striking <quote>Director shall</quote> and inserting <quote>appropriate
Federal banking agency may</quote>; and</text>
</subclause><subclause commented="no" id="H41DFD4233E504FEA843AA4B8EDD4677E"><enum>(V)</enum><text>in subparagraph
(F), by striking <quote>Director</quote> and all that follows through the end
of the subparagraph and inserting <quote>appropriate Federal banking agency
under this Act or any other provision of law.</quote>;</text>
</subclause></clause><clause commented="no" id="H99648D592D594F1C8FB7B55411B76777"><enum>(v)</enum><text>in paragraph (7),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</clause><clause commented="no" id="HE3B20CE145074C1A95D1B832BBBCED12"><enum>(vi)</enum><text>by striking
paragraph (8) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H33E8E6F4EF1146A689ED53FB0C366EBC" style="OLC">
<paragraph commented="no" id="HFE5E48CB838843699D27073097341AD4"><enum>(8)</enum><text>[Repealed].</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause commented="no" id="H3E27301A3C21468CB23348AF45653FC5"><enum>(vii)</enum><text>in paragraph
(9)—</text>
<subclause commented="no" id="HD26EA08C7CDA480F96CD9927D1B5E974"><enum>(I)</enum><text>in subparagraph
(A), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subclause><subclause commented="no" id="HE732C228426E4E548D02203FC7ECB67A"><enum>(II)</enum><text>in subparagraph
(C), by striking <quote>of the Currency</quote>; and</text>
</subclause><subclause commented="no" id="H0F2482A0E9F44EE5BEE2D877F9B65EC6"><enum>(III)</enum><text>by striking
subparagraph (B) and redesignating subparagraphs (C) and (D) as subparagraphs
(B) and (C), respectively; and</text>
</subclause></clause><clause commented="no" id="HAD85B9FA2FF94840B8D361A253EAFAA9"><enum>(viii)</enum><text>except as
provided in clauses (i) through (vii), by striking <quote>Director</quote> each
place that term appears and inserting <quote>appropriate Federal banking
agency</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H951E413DCB0A42F083C0AC61075E1735"><enum>(M)</enum><text>in subsection (u),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph commented="no" id="H058536BFF29B4E9DBA7C6CF93BC76A95"><enum>(N)</enum><text>in subsection
(v)—</text>
<clause commented="no" id="H01B46D10A95A416B8A7F90AA21987F29"><enum>(i)</enum><text>in paragraph (2),
by striking <quote>Director's determinations</quote> and inserting
<quote>determinations of the appropriate Federal banking agency</quote>;
and</text>
</clause><clause commented="no" id="HEB236B6B2301443CB46B68864C332EA6"><enum>(ii)</enum><text>by striking
<quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="HD8F00E754B354D358BD44F877A911C2F"><enum>(O)</enum><text>in subsection
(w)(1)—</text>
<clause commented="no" id="HE5659106D87647AA93FA7979ED4CB506"><enum>(i)</enum><text>in subparagraph
(A)(II), by striking <quote>Director's intention</quote> and inserting
<quote>intention of the Comptroller</quote>; and</text>
</clause><clause commented="no" id="H8D9830C8DA1F447FAB7072E123551E03"><enum>(ii)</enum><text>in subparagraph
(B), by striking <quote>Director's intention</quote> and inserting
<quote>intention of the Comptroller</quote>; and</text>
</clause></subparagraph><subparagraph id="HC709D3D97A4B4CA78ECB01168D296771"><enum>(P)</enum><text>except as provided
in subparagraphs (A) through (J), by striking <quote>Director</quote> each
place that term appears and inserting <quote>Comptroller</quote>;</text>
</subparagraph></paragraph><paragraph id="H050AA68E76E14AEFB2605EFFE5FBF2A5"><enum>(6)</enum><text>in section 8 (12
U.S.C. 1466a), by striking <quote>Director</quote> each place that term appears
and inserting <quote>Comptroller</quote>;</text>
</paragraph><paragraph id="H5F21D66300384505949E655F29360121"><enum>(7)</enum><text>in section 9 (12
U.S.C. 1467)—</text>
<subparagraph id="H2B9F4155BBC4417FB8A1C84A34D96F9F"><enum>(A)</enum><text>in subsection (a),
by striking <quote>assessed by the Director</quote> and all that follows
through the end of the subsection and inserting the following: “assessed
by—</text>
<quoted-block display-inline="no-display-inline" id="H6F99960E826F4B85B578098C95AF0453" style="OLC">
<paragraph id="H08EBE780607B457EA3FCB614F100FF98"><enum>(1)</enum><text>the Comptroller,
against each such Federal savings association, as the Comptroller deems
necessary or appropriate; and</text>
</paragraph><paragraph id="H8C3E28D01589498D823066E1C079566E"><enum>(2)</enum><text>the Corporation,
against each such State savings association, as the Corporation deems necessary
or
appropriate.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H194DEA1B18A14001B58EF8CE6A64BED4"><enum>(B)</enum><text>in subsection (b),
by striking <quote>Director</quote>, each place such term appears, and
inserting <quote>Comptroller or Corporation, as appropriate</quote>;</text>
</subparagraph><subparagraph id="H2CC5546BDE094F78B965D8B6B90D7EBB"><enum>(C)</enum><text>in subsection
(e)—</text>
<clause id="H7DCEC946CD074DBAAF38D06C492D62FC"><enum>(i)</enum><text>by
striking <quote>Only the Director</quote> and inserting <quote>The
Comptroller</quote>; and</text>
</clause><clause id="H7990EE2A45F5441F9F736D0D98AF9A2D"><enum>(ii)</enum><text>by
striking <quote>Director's designee</quote> and inserting <quote>designee of
the Comptroller</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H85E810F594FC4B5F95EB00D72F2BB140"><enum>(D)</enum><text>by striking
subsection (f) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H749A63EC395C4EC2AF1FD9EAA65F97DA" style="OLC">
<subsection commented="no" id="H6360EFD75C734C9D8C3F53ADBDD03BE3"><enum>(f)</enum><text>[Reserved].</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9AF9636DA8FF41CD9C51C5B3D42AB1A0"><enum>(E)</enum><text>in subsection
(g)—</text>
<clause id="H5E90134E11AD4811B7C207EDB01B9901"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>Director</quote> and inserting
<quote>appropriate Federal banking agency</quote>; and</text>
</clause><clause commented="no" id="H1CB0B681E08442059F106C608CFB4671"><enum>(ii)</enum><text>in paragraph (2),
by striking <quote>Director, or the Corporation, as the case may be,</quote>
and inserting <quote>appropriate Federal banking agency for the savings
association</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="HD67C883D42D243CCB1F242192F339CDB"><enum>(F)</enum><text>in subsection (i),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph id="H1A5E01A4BF2D4D0591EA781CF84278F4"><enum>(G)</enum><text>in subsection (j),
by striking <quote>Director's sole discretion</quote> and inserting <quote>sole
discretion of the appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph id="H7157AD5829BC4980BB9DD704187A0066"><enum>(H)</enum><text>in subsection (k),
by striking <quote>Director may assess against institutions for which the
Director is the appropriate Federal banking agency, as defined in section 3 of
the Federal Deposit Insurance Act,</quote> and inserting <quote>appropriate
Federal banking agency may assess against an institution</quote>; and</text>
</subparagraph><subparagraph id="H4966E2EA2C0C40849048613C510DD5AB"><enum>(I)</enum><text>except as provided
in subparagraphs (A) through (G), by striking <quote>Director</quote> each
place that term appears and inserting <quote>appropriate Federal banking
agency</quote>;</text>
</subparagraph></paragraph><paragraph id="HF08995F903944E54BB442875DBCBE32D"><enum>(8)</enum><text>in section 10 (12
U.S.C. 1467a)—</text>
<subparagraph id="H75FE7C3A45B14147A73DF2452259452F"><enum>(A)</enum><text>in subsection
(a)(1), by striking <quote>Director</quote> each place that term appears and
inserting <quote>appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph id="H474D388B7A2244AB80DBEBF030260282"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause commented="no" id="H91952192C6DC4CFB8A21EFB30489B79C"><enum>(i)</enum><text>in paragraph (2),
by striking <quote>and the regional office of the Director of the district in
which its principal office is located,</quote>; and</text>
</clause><clause id="H6F8749948CC24DD7BB08336AD937B3FC"><enum>(ii)</enum><text>in
paragraph (6), by striking <quote>Director's own motion or application</quote>
and inserting <quote>motion or application of the Board</quote>;</text>
</clause></subparagraph><subparagraph id="H672426B8A6344C37AFD3B0F4F94B1B75"><enum>(C)</enum><text>in subsection
(c)—</text>
<clause id="HF898440BA15045CA9D5ED45F1B81011A"><enum>(i)</enum><text>in
paragraph (2)(F), by striking <quote>of Governors of the Federal Reserve
System</quote>;</text>
</clause><clause id="H4C6539D0BD1242C89BCBCE5858372473"><enum>(ii)</enum><text>in
paragraph (4)(B), in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">by
director</header-in-text></quote>;</text>
</clause><clause id="H00B5B4E2ACBE4A5088880D10E6278C8F"><enum>(iii)</enum><text>in
paragraph (6)(D), in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">by
Director</header-in-text></quote>; and</text>
</clause><clause id="HA8905F278E014FA48FB14F39F6E839D9"><enum>(iv)</enum><text>in
paragraph (9)(E), by inserting <quote>(in consultation with the appropriate
Federal banking agency)</quote> after <quote>including a
determination</quote>;</text>
</clause></subparagraph><subparagraph id="HE490930ACCC946C9BD45667025556929"><enum>(D)</enum><text>in subsection
(g)(5)(B), by striking <quote>the Director's discretion</quote> and inserting
<quote>the discretion of the Board</quote>;</text>
</subparagraph><subparagraph commented="no" id="H2AAB1893D0C046E086AB3FDD662DB759"><enum>(E)</enum><text>in subsection (l),
by striking <quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph commented="no" id="H41315EC1711B4BF4AD68944ABCEB4661"><enum>(F)</enum><text>in subsection (m),
by striking <quote>Director</quote> and inserting <quote>appropriate Federal
banking agency</quote>;</text>
</subparagraph><subparagraph id="HA7BC0570611F4C68BBC7D9F5E8FAFDB1"><enum>(G)</enum><text display-inline="yes-display-inline">in subsection (p)—</text>
<clause id="HFCE970A074AB408CA63F9EB6F48FB135"><enum>(i)</enum><text>in
paragraph (1)—</text>
<subclause id="H6F1752C45AE94CA2971C25632281F61C"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>Director
determines</quote> the 1st place such term appears and inserting <quote>Board
or the appropriate Federal banking agency for the savings association
determines</quote>;</text>
</subclause><subclause id="HC7EEDD76B37C430B81A97407F5528E00"><enum>(II)</enum><text>by striking
<quote>Director may</quote> and inserting <quote>Board may</quote>; and</text>
</subclause><subclause id="H99742DCECDBD479AB01BC0E4585A3B9F"><enum>(III)</enum><text display-inline="yes-display-inline">by striking <quote>Director
determines</quote> the 2nd place such term appears and inserting <quote>Board,
in consultation with the appropriate Federal banking agency for the savings
association determines</quote>; and</text>
</subclause></clause><clause id="H4B0AAC1EA6984E7FAA80F76700194BCE"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>Director</quote>, each place such term appears, and inserting
<quote>Board</quote>;</text>
</clause></subparagraph><subparagraph id="H0836E0CB1E4E4397BB3039CCF0B0950D"><enum>(H)</enum><text display-inline="yes-display-inline">in subsection (q), by striking
<quote>Director</quote>, each place such term appears, and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph id="H018CE7EB07F4451F922FA783FD04AA95"><enum>(I)</enum><text display-inline="yes-display-inline">in subsection (r), by striking
<quote>Director</quote>, each place such term appears, and inserting
<quote>Board or appropriate Federal banking agency</quote>;</text>
</subparagraph><subparagraph commented="no" id="HB4DD3ECCE7A54E598530CB08593BCF54"><enum>(J)</enum><text>in subsection
(s)—</text>
<clause commented="no" id="H23F3BF03659A4210A46258C55F799574"><enum>(i)</enum><text>in paragraph
(2)—</text>
<subclause commented="no" id="HA2A60C3DB98D439E96994603C054AE6B"><enum>(I)</enum><text>in subparagraph
(B)(ii), by striking <quote>Director's judgment</quote> and inserting
<quote>judgment of the appropriate Federal banking agency for the savings
association</quote>; and</text>
</subclause><subclause commented="no" id="H2FE62AEFD3634EA88153047D50C93CC2"><enum>(II)</enum><text>by striking
<quote>Director</quote> each place that term appears and inserting
<quote>appropriate Federal banking agency for the savings association</quote>;
and</text>
</subclause></clause><clause commented="no" id="H86A4F061A7EA402A94A35B97FE86FCE9"><enum>(ii)</enum><text>in paragraph (4),
by striking <quote>Director</quote> and inserting <quote>Comptroller</quote>;
and</text>
</clause></subparagraph><subparagraph id="HBD87A1345BE74FF6AF013AE3375D167C"><enum>(K)</enum><text>except as provided
in subparagraphs (A) through (J), by striking <quote>Director</quote> each
place that term appears and inserting <quote>Board</quote>;</text>
</subparagraph></paragraph><paragraph id="HA2407C64A0D849B89AE4641F4FD8B9CF"><enum>(9)</enum><text>in section 11 (12
U.S.C. 1468), by striking <quote>Director</quote> each place that term appears
and inserting <quote>appropriate Federal banking agency</quote>;</text>
</paragraph><paragraph id="H7531F13C9B89432E9D3B3F0864D575F3"><enum>(10)</enum><text>in section 12 (12
U.S.C. 1468a), by striking <quote>the Director</quote> and inserting <quote>a
Federal banking agency</quote>; and</text>
</paragraph><paragraph id="H9E7DEF96767E4E9785821E6606C45C9D"><enum>(11)</enum><text>in section 13 (12
U.S.C. 1468a) is amended by striking <quote>Director</quote> and inserting
<quote>a Federal banking agency</quote>.</text>
</paragraph></section><section id="H8F1AD106FF634EBCA8172294843649A7"><enum>370.</enum><header>Housing Act of
1948</header><text display-inline="no-display-inline">Section 502(c) of the
Housing Act of 1948 (12 U.S.C. 1701c(c)) is amended—</text>
<paragraph id="HB78B8CE4AD3246478103D2674F3DEB88"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by
striking <quote>and the Director of the Office of Thrift Supervision</quote>
and inserting <quote>, the Comptroller of the Currency, and the Federal Deposit
Insurance Corporation</quote>; and</text>
</paragraph><paragraph id="H90869BBEAF3A446FA5B2AFE9A2D243D6"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</paragraph></section><section commented="no" id="HEABF3E64913749D484F860701A7E304A"><enum>371.</enum><header>Housing and
Community Development Act of 1992</header><text display-inline="no-display-inline">Section 543 of the Housing and Community
Development Act of 1992 (Public Law 102–550; 106 Stat. 3798) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA9132D4AD7A14B9C99B610CAFDD807BF"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H711E64C1926440C4AED7CE3C62A509E1"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraphs (D) through (F);
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA767145287874D50A5337A11C72FC2C4"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (G) and (H)
as subparagraphs (D) and (E), respectively; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H058C7E8428174B3FBA1728CDD42C6465"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (f)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1AF1430D127F496A99FFC794E84E2BAB"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>the
Office of Thrift Supervision,</quote> each place that term appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9BF062BC574C46719D13205EF1ED23F2"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<clause commented="no" display-inline="no-display-inline" id="HA69110399C164235AA139A4F1C960743"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by striking <quote>the Office of Thrift Supervision,</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF0E4BFA778764A25AC37750AAC6C8B6E"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking
<quote>Office of Thrift Supervision,</quote>.</text>
</clause></subparagraph></paragraph></section><section id="H42210BA19E504351AE861B2100E3AC06"><enum>372.</enum><header>Housing and
Urban-Rural Recovery Act of 1983</header><text display-inline="no-display-inline">Section 469 of the Housing and Urban-Rural
Recovery Act of 1983 (12 U.S.C. 1701p–1) is amended in the first sentence, by
striking <quote>Federal Home Loan Bank Board</quote> and inserting
<quote>Federal Housing Finance Agency</quote>.</text>
</section><section commented="no" id="H67972374920A47A6A5FF6B5B8DFB4DE7"><enum>373.</enum><header>National
Housing Act</header><text display-inline="no-display-inline">Section 202(f) of
the National Housing Act (12 U.S.C. 1708(f)) is amended—</text>
<paragraph commented="no" id="HF0BE6E6218E040EC8C3F093314F70E27"><enum>(1)</enum><text>by striking
paragraph (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2EFEB22F610849EDBABB8B63375FADF1" style="OLC">
<paragraph commented="no" id="HB90FEA689FFD4246930A01263B456526"><enum>(5)</enum><text>if the mortgagee
is a national bank, a subsidiary or affiliate of such bank, a Federal savings
association or a subsidiary or affiliate of a savings association, the
Comptroller of the
Currency;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HB92E4B4CBAAC47F38A050AD485A93545"><enum>(2)</enum><text>in paragraph (6),
by adding <quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" id="H0B89BDF6BACF4A46B99B1BB8A39685AA"><enum>(3)</enum><text>in paragraph
(7)—</text>
<subparagraph commented="no" id="HCB1A58A50C484A9699A70839364A8F1B"><enum>(A)</enum><text>by inserting
<quote>or State savings association</quote> after <quote>State bank</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="H29EFE2E53FB7452F84962921A600DBD4"><enum>(B)</enum><text>by striking
<quote>; and</quote> and inserting a period; and</text>
</subparagraph></paragraph><paragraph commented="no" id="H224ABC3FE36D4790B1C299CF2D1E6AAB"><enum>(4)</enum><text>by striking
paragraph (8).</text>
</paragraph></section><section id="HE6E27E29C8DC4F30B0B43D1700851CBB"><enum>374.</enum><header>Neighborhood
Reinvestment Corporation Act</header><text display-inline="no-display-inline">Section 606(c)(3) of the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8105(c)(3)) is amended by striking
<quote>Federal Home Loan Bank Board</quote> and inserting <quote>Federal
Housing Finance Agency</quote>.</text>
</section><section id="H56ECD61FE4A14531A0FB4FC906F5E2AB"><enum>375.</enum><header>Public Law
93–100</header><text display-inline="no-display-inline">Section 5(d) of Public
Law 93–100 (12 U.S.C. 1470(a)) is amended—</text>
<paragraph id="HD945683D38454B15A7B9A25F6F755949"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>Federal Savings and Loan Insurance Corporation with respect
to insured institutions, the Board of Governors of the Federal Reserve System
with respect to State member insured banks, and the Federal Deposit Insurance
Corporation with respect to State nonmember insured banks</quote> and inserting
<quote>appropriate Federal banking agency, with respect to the institutions
subject to the jurisdiction of each such agency,</quote>; and</text>
</paragraph><paragraph id="H1698129BD76F401B8CF53462708F9B8C"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>supervisory</quote> and inserting
<quote>banking</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H3B2CE76575F945D8ACD046C242AC7EDA" section-type="subsequent-section"><enum>376.</enum><header display-inline="yes-display-inline">Securities Exchange Act of
1934</header><text display-inline="no-display-inline">The Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7EBA5F7D18F24DC0B96A2CFE245E1B95"><enum>(1)</enum><text display-inline="yes-display-inline">in section 3(a)(34) (15 U.S.C.
78c(a)(34))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H074AE2000A50409EA00100C9DFCD512F"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H62280EB6400D4FBEAF1B7C9D1DDCE0E4"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>or a
subsidiary or a department or division of any such bank</quote> and inserting
<quote>a subsidiary or a department or division of any such bank, a Federal
savings association (as defined in section 3(b)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(b)(2))), the deposits of which are insured by the
Federal Deposit Insurance Corporation, or a subsidiary or department or
division of any such Federal savings association</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0E8A7176AB4140F9BEDCF033A15D2CB0"><enum>(ii)</enum><text>in clause (ii),
by striking <quote>or a subsidiary or a department or division of such
subsidiary</quote> and inserting <quote>a subsidiary or a department or
division of such subsidiary, or a savings and loan holding
company</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4CA8EC5DA188440181E4D8256F0C9D68"><enum>(iii)</enum><text display-inline="yes-display-inline">in clause (iii), by striking <quote>or a
subsidiary or department or division thereof;</quote> and inserting <quote>a
subsidiary or department or division of any such bank, a State savings
association (as defined in section 3(b)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b)(3))), the deposits of which are insured by the Federal
Deposit Insurance Corporation, or a subsidiary or a department or division of
any such State savings association; and</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5B0DBB7797BA4A34A74734895263775E"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H628881D62F674541A1E3244D6738AA96"><enum>(v)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause
(iv);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA0784994BFE49F09356EAF60D2F636B"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<clause commented="no" display-inline="no-display-inline" id="HEDF61A56700E4B04A1CA207D27DF92C6"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>or a
subsidiary of any such bank</quote> and inserting <quote>a subsidiary of any
such bank, a Federal savings association (as defined in section 3(b)(2) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(b)(2))), the deposits of which
are insured by the Federal Deposit Insurance Corporation, or a subsidiary of
any such Federal savings association</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H886C8A0A6C8546B6A045DF538D742548"><enum>(ii)</enum><text>in clause (ii),
by striking <quote>or a subsidiary of a bank holding company which is a bank
other than a bank specified in clause (i), (iii), or (iv) of this
subparagraph</quote> and inserting <quote>a subsidiary of a bank holding
company that is a bank other than a bank specified in clause (i) or (iii) of
this subparagraph, or a savings and loan holding company</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE574A7BFAB614DF49EDA98FD7CCC6F74"><enum>(iii)</enum><text display-inline="yes-display-inline">in clause (iii), by striking <quote>or a
subsidiary thereof;</quote> and inserting <quote>a subsidiary of any such bank,
a State savings association (as defined in section 3(b)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(b)(3))), the deposits of which are
insured by the Federal Deposit Insurance Corporation, or a subsidiary of any
such State savings association; and</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H517C21011D0349FFAFC46A00CB18004B"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H550B9B9BE16F40E89D19EF4B5F5B39FF"><enum>(v)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause
(iv);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4EB1F4325ECE4C6991FF5A723334AE44"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
<clause commented="no" display-inline="no-display-inline" id="HFA6FB6C193024E189A1246A0FED8F785"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>bank</quote> and inserting <quote>bank or a Federal savings association
(as defined in section 3(b)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(b)(2))), the deposits of which are insured by the Federal Deposit
Insurance Corporation</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEF480476340F4CB9B8C76D7CD149890B"><enum>(ii)</enum><text>in clause (ii),
by striking <quote>or a subsidiary of a bank holding company which is a bank
other than a bank specified in clause (i), (iii), or (iv) of this
subparagraph</quote> and inserting <quote>a subsidiary of a bank holding
company that is a bank other than a bank specified in clause (i) or (iii) of
this subparagraph, or a savings and loan holding company</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H91CF8BDA3F18495CB7953FC32083B6A4"><enum>(iii)</enum><text display-inline="yes-display-inline">in clause (iii), by striking
<quote>System)</quote> and inserting, <quote>System) or a State savings
association (as defined in section 3(b)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b)(3))), the deposits of which are insured by the Federal
Deposit Insurance Corporation; and</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5D0A9CB0B9804750932D4AC5228DCB90"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking clause (iv); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCED5748C422A47F988A28CDB926F6C11"><enum>(v)</enum><text display-inline="yes-display-inline">by redesignating clause (v) as clause
(iv);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H355AD21DF98541D480B558040881BE7F"><enum>(D)</enum><text display-inline="yes-display-inline">in subparagraph (D)—</text>
<clause commented="no" display-inline="no-display-inline" id="H166ADD7DAA2548988A7EA144065DEE16"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by inserting after
<quote>bank</quote> the following: <quote>or a Federal savings association (as
defined in section 3(b)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(b)(2))), the deposits of which are insured by the Federal Deposit
Insurance Corporation</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8509900DFCC54F42932E4CC0BDE1B1D1"><enum>(ii)</enum><text>in clause (ii),
by adding <quote>and</quote> at the end;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H096B5CB2A6AA452AB7517475896AAEDB"><enum>(iii)</enum><text>by striking
clause (iii);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H074918F5D2E4415C8A02A837FF831A2F"><enum>(iv)</enum><text>by redesignating
clause (iv) as clause (iii); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1B14102A74F348549660C15A56979371"><enum>(v)</enum><text>in clause (iii),
as so redesignated, by inserting after <quote>bank</quote> the following:
<quote>or a State savings association (as defined in section 3(b)(3) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(b)(3))), the deposits of which
are insured by the Federal Deposit Insurance Corporation</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3B26A9122CB4CFE99AD53C4612637F4"><enum>(E)</enum><text display-inline="yes-display-inline">in subparagraph (F)—</text>
<clause commented="no" display-inline="no-display-inline" id="H8B76CC6742104411B682B1CA2129E02C"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i), by inserting after
<quote>bank</quote> the following: <quote>or a Federal savings association (as
defined in section 3(b)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(b)(2))), the deposits of which are insured by the Federal Deposit
Insurance Corporation</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFC4F226024454505B900163A92D35383"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking clause (ii);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H338E7F0AB8154515B05F793A51DB2A22"><enum>(iii)</enum><text display-inline="yes-display-inline">by redesignating clauses (iii), (iv), and
(v) as clauses (ii), (iii), and (iv), respectively; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3AEB09F91A3F4353BD83F22917E7E705"><enum>(iv)</enum><text>in clause (iii),
as so redesignated, by inserting before the semicolon the following: <quote>or
a State savings association (as defined in section 3(b)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(b)(3))), the deposits of which are
insured by the Federal Deposit Insurance Corporation</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H962AE7D33057426E8963A2E8C71E82EE"><enum>(F)</enum><text>in subparagraph
(G)—</text>
<clause commented="no" display-inline="no-display-inline" id="HFAC4935D991C4F1CBB19EFA1F14D7A0A"><enum>(i)</enum><text>in clause (i), by
inserting after <quote>national bank</quote> the following: <quote>, a Federal
savings association (as defined in section 3(b)(2) of the Federal Deposit
Insurance Act), the deposits of which are insured by the Federal Deposit
Insurance Corporation,</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD8AED782B44B4FF0BEB69B4A3F0124FD"><enum>(ii)</enum><text>in clause
(iii)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H42F596E4ABE643E09403B79080A82B76"><enum>(I)</enum><text>by inserting after
<quote>bank)</quote> the following: <quote>, a State savings association (as
defined in section 3(b)(3) of the Federal Deposit Insurance Act), the deposits
of which are insured by the Federal Deposit Insurance Corporation,</quote>;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HFCEFC13CEE674D169B5B3034714E26B3"><enum>(II)</enum><text>by adding
<quote>and</quote> at the end;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE6576C58CE434A15B9CFBF3527DF0310"><enum>(iii)</enum><text>by striking
clause (iv); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H71109EC57E6A421486D743B14B679E17"><enum>(iv)</enum><text>by redesignating
clause (v) as clause (iv); and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EECFCF3D5C44900A1B25A8F5AC8E364"><enum>(G)</enum><text>in the
undesignated matter following subparagraph (H), by striking <quote>, and the
term <term>District of Columbia savings and loan association</term> means any
association subject to examination and supervision by the Office of Thrift
Supervision under section 8 of the Home Owners' Loan Act of
1933</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63722844C16949DEADA98F4ABF07FA18"><enum>(2)</enum><text>in section 12(i)
(15 U.S.C. 78l(i))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF716448635F244B8AC44AF1EECDC6212"><enum>(A)</enum><text>in paragraph (1),
by inserting after <quote>national banks</quote> the following: <quote>and
Federal savings associations, the accounts of which are insured by the Federal
Deposit Insurance Corporation</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB2E6A43D2B0E4BEC8B56E52E9B4053C0"><enum>(B)</enum><text>by striking
<quote>(3)</quote> and all that follows through <quote>vested in the Office of
Thrift Supervision</quote> and inserting <quote>and (3) with respect to all
other insured banks and State savings associations, the accounts of which are
insured by the Federal Deposit Insurance Corporation, are vested in the Federal
Deposit Insurance Corporation</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HACCF805A6AF641E3A460642B0A2F6DBD"><enum>(C)</enum><text>in the second
sentence, by striking <quote>the Federal Deposit Insurance Corporation, and the
Office of Thrift Supervision</quote> and inserting <quote>and the Federal
Deposit Insurance Corporation</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DB278DD7F144316A79A92E14C7483A5"><enum>(3)</enum><text display-inline="yes-display-inline">in section 15C(g)(1) (15 U.S.C.
78o–5(g)(1)), by striking <quote>the Director of the Office of Thrift
Supervision, the Federal Savings and Loan Insurance Corporation,</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H783E81066C304A8E9A13872754924FC4"><enum>(4)</enum><text>in section
23(b)(1) (15 U.S.C. 78w(b)(1)), by striking <quote>, other than the Office of
Thrift Supervision,</quote>.</text>
</paragraph></section><section commented="no" id="H2BAE6D3084A549DDBADFCF84C890884F"><enum>377.</enum><header>Title 18,
United States Code</header><text display-inline="no-display-inline">Title 18,
United States Code, is amended—</text>
<paragraph commented="no" id="HF4BF76FB15C7465192B882372AAC2B79"><enum>(1)</enum><text>in section
212(c)(2)—</text>
<subparagraph commented="no" id="H1A9185AD611D448F9B4D7E98FF82389E"><enum>(A)</enum><text>by striking
subparagraph (C); and</text>
</subparagraph><subparagraph commented="no" id="HB11AF56CCF0C4F9987CA9C7B94511BE9"><enum>(B)</enum><text>by redesignating
subparagraphs (D) through (H) as subparagraphs (C) through (G),
respectively;</text>
</subparagraph></paragraph><paragraph commented="no" id="HFA8AC17DE186490BA2747513D17D6EC0"><enum>(2)</enum><text>in section 657, by
striking <quote>Office of Thrift Supervision, the Resolution Trust
Corporation,</quote>;</text>
</paragraph><paragraph commented="no" id="H30018F2931ED4BA3A412DE8C8BDC2479"><enum>(3)</enum><text>in section
981(a)(1)(D)—</text>
<subparagraph commented="no" id="HBA4A4FB0CAB34DBB92D5453F4508AB0A"><enum>(A)</enum><text>by striking
<quote>Resolution Trust Corporation,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HED220FB2DCF5463E8839B70F169588CC"><enum>(B)</enum><text>by striking
<quote>or the Office of Thrift Supervision</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H8F5A26162D494F72B82FF2664E1090C6"><enum>(4)</enum><text>in section
982(a)(3)—</text>
<subparagraph commented="no" id="H43B6FCD1ED2B48A7824A338900513302"><enum>(A)</enum><text>by striking
<quote>Resolution Trust Corporation,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H396AB01DD248458A8F9ACA85F3D3D2FC"><enum>(B)</enum><text>by striking
<quote>or the Office of Thrift Supervision</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H5694AC0F9CD44D7CBCF186CAD6C0C992"><enum>(5)</enum><text>in section
1006—</text>
<subparagraph commented="no" id="HC94373127F2348BA934D2B7DCBDDCE50"><enum>(A)</enum><text>by striking
<quote>Office of Thrift Supervision,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H9E8CA166DFF54472AF42B5FE62871E52"><enum>(B)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H8069AF6BC95C40A2A6AB842DA0EA84FC"><enum>(6)</enum><text>in section
1014—</text>
<subparagraph commented="no" id="H12AFB52140C145ACBAC186E33FA28535"><enum>(A)</enum><text>by striking
<quote>the Office of Thrift Supervision</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HF61DD38A342B4ECEB12523F6BCFBA8FA"><enum>(B)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="HDB5110035A684824AD9FF6F060C8932E"><enum>(7)</enum><text>in section
1032(1)—</text>
<subparagraph commented="no" id="HF1EB350A0CCD46679B03671651BFC08D"><enum>(A)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HC804019B2FCB49969A4649179863A11B"><enum>(B)</enum><text>by striking
<quote>or the Director of the Office of Thrift Supervision</quote>.</text>
</subparagraph></paragraph></section><section commented="no" id="HAF612C4FD949418985055729E636D163"><enum>378.</enum><header>Title 31,
United States Code</header><text display-inline="no-display-inline">Title 31,
United States Code, is amended—</text>
<paragraph commented="no" id="HF3969366CD3B46178EBE3FFCE3446B44"><enum>(1)</enum><text>in section
321—</text>
<subparagraph commented="no" id="H65D3866932DC4A55B25521FF7908FCD2"><enum>(A)</enum><text>in subsection
(c)—</text>
<clause commented="no" id="HDABD415371AD40B79369982004C9B6C3"><enum>(i)</enum><text>in paragraph (1),
by adding <quote>and</quote> at the end;</text>
</clause><clause commented="no" id="HF3E8C45663804D57B11D0D0173B635EA"><enum>(ii)</enum><text>in paragraph (2),
by striking <quote>; and</quote> and inserting a period; and</text>
</clause><clause commented="no" id="H5CF8E559A658451DBF3F7FAA34769C5A"><enum>(iii)</enum><text>by striking
paragraph (3); and</text>
</clause></subparagraph><subparagraph commented="no" id="H30CA0180A1A14279A31387BA0633E6A5"><enum>(B)</enum><text>by striking
subsection (e); and</text>
</subparagraph></paragraph><paragraph commented="no" id="HD128343EE8574F409EB6666649D8602F"><enum>(2)</enum><text>in section 714(a),
by striking <quote>the Office of the Comptroller of the Currency, and the
Office of Thrift Supervision.</quote> and inserting <quote>and the Office of
the Comptroller of the Currency.</quote>.</text>
</paragraph></section></subtitle><enum>IV</enum><header>Regulation of
advisers to hedge funds and others</header>
<section id="H2E39F50428C5437384283C70EE9AA276"><enum>401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Private Fund Investment Advisers Registration Act of
2010</quote>.</text>
</section><section id="H9BADCE55067448E5859B1A99F39BE6C3"><enum>402.</enum><header>Definitions</header>
<subsection id="HDF8AAA58F95B4E79A6293412127E7FCD"><enum>(a)</enum><header>Investment
Advisers Act of 1940 definitions</header><text display-inline="yes-display-inline">Section 202(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–2(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HDA7524E632E241F2AF62C0D4A1AF076C" style="OLC">
<paragraph id="H6A561E5CC103410AB45889B15672803B"><enum>(29)</enum><text>The term
<term>private fund</term> means an issuer that would be an investment company,
as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C.
80a–3), but for section 3(c)(1) or 3(c)(7) of that Act.</text>
</paragraph><paragraph id="H17E7AE97C299455CB83E6615266960CE"><enum>(30)</enum><text>The term
<term>foreign private adviser</term> means any investment adviser who—</text>
<subparagraph id="H730EE9DFF0AC4D93BEACAC7CD2496FAB"><enum>(A)</enum><text>has no place of
business in the United States;</text>
</subparagraph><subparagraph id="H3450D43A609B43FCBD63E211030BF141"><enum>(B)</enum><text>has, in total,
fewer than 15 clients and investors in the United States in private funds
advised by the investment adviser;</text>
</subparagraph><subparagraph id="HF450392A57D648C09123E5314CE76F26"><enum>(C)</enum><text>has aggregate
assets under management attributable to clients in the United States and
investors in the United States in private funds advised by the investment
adviser of less than $25,000,000, or such higher amount as the Commission may,
by rule, deem appropriate in accordance with the purposes of this title;
and</text>
</subparagraph><subparagraph id="HC1FFB216E7D04355BDCF653D95BC9A7F"><enum>(D)</enum><text>neither—</text>
<clause id="H3B8F9DE285494EE58C699F1E5B580527"><enum>(i)</enum><text>holds itself out
generally to the public in the United States as an investment adviser;
nor</text>
</clause><clause id="HED5180EDC98042D38FBF419E0A44F12C"><enum>(ii)</enum><text>acts as—</text>
<subclause id="H41A1CA02C75B41758CD45CB70A6E9452"><enum>(I)</enum><text>an investment
adviser to any investment company registered under the Investment Company Act
of 1940; or</text>
</subclause><subclause id="H4BE07AF6C70E42DB84A5EAD417197EDA"><enum>(II)</enum><text>a company that
has elected to be a business development company pursuant to section 54 of the
Investment Company Act of 1940 (15 U.S.C. 80a–53), and has not withdrawn its
election.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC223796C94E6403FA096EC29B1BFE085"><enum>(b)</enum><header>Other
definitions</header><text>As used in this title, the terms <quote>investment
adviser</quote> and <quote>private fund</quote> have the same meanings as in
section 202 of the Investment Advisers Act of 1940, as amended by this
title.</text>
</subsection></section><section id="H2EBE1EDB83ED46899EDADC104DE20F43"><enum>403.</enum><header>Elimination of
private adviser exemption; limited exemption for foreign private advisers;
limited intrastate exemption</header><text display-inline="no-display-inline">Section 203(b) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(b)) is amended—</text>
<paragraph id="HBD67A17C005C4D8684F4A5B4A88E8402"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>, other than an investment adviser who acts as an
investment adviser to any private fund,</quote> before <quote>all of
whose</quote>;</text>
</paragraph><paragraph id="H73C7879E8CC14439A8259EC70CA4B7AD"><enum>(2)</enum><text>by striking
paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC965AEEF1D24435689A7B267F8BAD173" style="OLC">
<paragraph id="H878A6802D60D43A58706E14A6923832E"><enum>(3)</enum><text>any investment
adviser that is a foreign private
adviser;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3C0B142E3676427ABFFA155E6C545DA5"><enum>(3)</enum><text>in paragraph (5),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph commented="no" id="HAD29ED32CFD94353B243DFE1E93EBD18"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (6)—</text>
<subparagraph commented="no" id="H0285E5918CA0484990963CBD0BF821FC"><enum>(A)</enum><text>by striking
<quote>any investment adviser</quote> and inserting <quote>(A) any investment
adviser</quote>;</text>
</subparagraph><subparagraph commented="no" id="HFDF850DE111846C6AE9020947836D2DC"><enum>(B)</enum><text>by redesignating
subparagraphs (A) and (B) as clauses (i) and (ii), respectively; and</text>
</subparagraph><subparagraph commented="no" id="HAFB5F8CE6EA74C758570CCE2FD480580"><enum>(C)</enum><text>in clause (ii) (as
so redesignated), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HDB60AB3346214B369DFA50F0C5E25A6B"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4D91D0BFF3EE444181F00DF71449D883" style="traditional">
<subparagraph commented="no" id="HA1B5A9F58EB9436AAD3B7C7B89BBA44E" indent="up2"><enum>(B)</enum><text>any investment adviser that is
registered with the Commodity Futures Trading Commission as a commodity trading
advisor and advises a private fund, provided that, if after the date of
enactment of the Private Fund Investment Advisers Registration Act of 2010, the
business of the advisor should become predominately the provision of
securities-related advice, then such adviser shall register with the
Commission.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5768CCA74EBA4595AB07725EC0000D6E"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6F9876EAFD4A423993C24F106FFF2230" style="OLC">
<paragraph commented="no" id="H148AC3FF1B844047999CEAA694DE3BE8"><enum>(7)</enum><text>any investment
adviser, other than any entity that has elected to be regulated or is regulated
as a business development company pursuant to section 54 of the Investment
Company Act of 1940 (15 U.S.C. 80a–54), who solely advises—</text>
<subparagraph commented="no" id="HC9D8954D46154119A814C84348B6B630"><enum>(A)</enum><text>small business
investment companies that are licensees under the Small Business Investment Act
of 1958;</text>
</subparagraph><subparagraph commented="no" id="H8BD696DC77DE40C4A906F64C0CCA41FF"><enum>(B)</enum><text>entities that have
received from the Small Business Administration notice to proceed to qualify
for a license as a small business investment company under the Small Business
Investment Act of 1958, which notice or license has not been revoked; or</text>
</subparagraph><subparagraph commented="no" id="H6A8A1C1E871E40408771D101AC3919C5"><enum>(C)</enum><text>applicants that
are affiliated with 1 or more licensed small business investment companies
described in subparagraph (A) and that have applied for another license under
the Small Business Investment Act of 1958, which application remains
pending.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H5232F2702BDD4A1FA2C27780EFC1F485"><enum>404.</enum><header>Collection of
systemic risk data; reports; examinations; disclosures</header><text display-inline="no-display-inline">Section 204 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–4) is amended—</text>
<paragraph id="H317E567D748F4FAB8C0AC7A32AD7BC9E"><enum>(1)</enum><text>by redesignating
subsections (b) and (c) as subsections (c) and (d), respectively; and</text>
</paragraph><paragraph id="HFB399FEBD5DF4456982240D7A3AD637B"><enum>(2)</enum><text>by inserting after
subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="H90DBCE51BEC24C7ABF2BFDC7B6738A83" style="OLC">
<subsection id="HBF8CEE20776A462898CB14EC57992CC2"><enum>(b)</enum><header>Records and
reports of private funds</header>
<paragraph id="HAE369447DB7249B281A4689475D36D3A"><enum>(1)</enum><header>In
general</header><text>The Commission may require any investment adviser
registered under this title—</text>
<subparagraph id="H1B12941EAEAC40AB8CD5AA0CBC3516AA"><enum>(A)</enum><text>to maintain such
records of, and file with the Commission such reports regarding, private funds
advised by the investment adviser, as necessary and appropriate in the public
interest and for the protection of investors, or for the assessment of systemic
risk by the Financial Stability Oversight Council (in this subsection referred
to as the <quote>Council</quote>); and</text>
</subparagraph><subparagraph id="H3D9F186AF97245C69290A2AC8A06A0A7"><enum>(B)</enum><text>to provide or make
available to the Council those reports or records or the information contained
therein.</text>
</subparagraph></paragraph><paragraph commented="no" id="H4FF2B3F348B2497597A3D7299CC4B677"><enum>(2)</enum><header>Treatment of
records</header><text>The records and reports of any private fund to which an
investment adviser registered under this title provides investment advice shall
be deemed to be the records and reports of the investment adviser.</text>
</paragraph><paragraph id="H88A9BE0EC0A146D7A62D0FEAA7B9DF4E"><enum>(3)</enum><header>Required
information</header><text>The records and reports required to be maintained by
an investment adviser and subject to inspection by the Commission under this
subsection shall include, for each private fund advised by the investment
adviser, a description of—</text>
<subparagraph id="H72C36BC56B7F4F4EA577AB93C05AA13E"><enum>(A)</enum><text>the amount of
assets under management and use of leverage, including off-balance-sheet
leverage;</text>
</subparagraph><subparagraph id="H0BB286B392ED4B98A8E3BB860727AC03"><enum>(B)</enum><text>counterparty
credit risk exposure;</text>
</subparagraph><subparagraph id="H3A754491F42A4E69B04701F29FEDAF1E"><enum>(C)</enum><text>trading and
investment positions;</text>
</subparagraph><subparagraph id="H8985AC73E4904084BED511FE76F0746B"><enum>(D)</enum><text>valuation policies
and practices of the fund;</text>
</subparagraph><subparagraph id="H9F6E704195FA472A9FE7C049CDF7EECA"><enum>(E)</enum><text>types of assets
held;</text>
</subparagraph><subparagraph id="H1F5402BD012E447EAD66AD805419E57D"><enum>(F)</enum><text>side arrangements
or side letters, whereby certain investors in a fund obtain more favorable
rights or entitlements than other investors;</text>
</subparagraph><subparagraph id="H83CABC1D60DA45CC8EEFBA57A30EAECE"><enum>(G)</enum><text>trading practices;
and</text>
</subparagraph><subparagraph id="H7C1366C051BD42C885114A8E65945C61"><enum>(H)</enum><text>such other
information as the Commission, in consultation with the Council, determines is
necessary and appropriate in the public interest and for the protection of
investors or for the assessment of systemic risk, which may include the
establishment of different reporting requirements for different classes of fund
advisers, based on the type or size of private fund being advised.</text>
</subparagraph></paragraph><paragraph id="HC57F28EE6D344956BE0A57EAB8FA4D3F"><enum>(4)</enum><header>Maintenance of
records</header><text>An investment adviser registered under this title shall
maintain such records of private funds advised by the investment adviser for
such period or periods as the Commission, by rule, may prescribe as necessary
and appropriate in the public interest and for the protection of investors, or
for the assessment of systemic risk.</text>
</paragraph><paragraph id="H2EC05B9797BC41EC8CA0E4B5E7BD5BBF"><enum>(5)</enum><header>Filing of
records</header><text>The Commission shall issue rules requiring each
investment adviser to a private fund to file reports containing such
information as the Commission deems necessary and appropriate in the public
interest and for the protection of investors or for the assessment of systemic
risk.</text>
</paragraph><paragraph id="H658753E94F1E4BAB89D968C009AC7982"><enum>(6)</enum><header>Examination of
records</header>
<subparagraph id="H4986834EE3B84DBFA5A78E56041E0AD9"><enum>(A)</enum><header>Periodic and
special examinations</header><text>The Commission—</text>
<clause id="HE756F6C519AF4609B82BE074BCA070EA"><enum>(i)</enum><text>shall conduct
periodic inspections of the records of private funds maintained by an
investment adviser registered under this title in accordance with a schedule
established by the Commission; and</text>
</clause><clause id="HEC2C7FA2F19240778DA5E0A7C0962186"><enum>(ii)</enum><text>may conduct at
any time and from time to time such additional, special, and other examinations
as the Commission may prescribe as necessary and appropriate in the public
interest and for the protection of investors, or for the assessment of systemic
risk.</text>
</clause></subparagraph><subparagraph id="HA0EFE65A519640A399F8D746FA7CA54B"><enum>(B)</enum><header>Availability of
records</header><text>An investment adviser registered under this title shall
make available to the Commission any copies or extracts from such records as
may be prepared without undue effort, expense, or delay, as the Commission or
its representatives may reasonably request.</text>
</subparagraph></paragraph><paragraph id="H98E620266DEC4B2E986B71073FB9E047"><enum>(7)</enum><header>Information
sharing</header>
<subparagraph id="HC1352032B5114C4099D27CEB5049C1B7"><enum>(A)</enum><header>In
general</header><text>The Commission shall make available to the Council copies
of all reports, documents, records, and information filed with or provided to
the Commission by an investment adviser under this subsection as the Council
may consider necessary for the purpose of assessing the systemic risk posed by
a private fund.</text>
</subparagraph><subparagraph id="H678D1334881D4AA4AAA1BBE339522015"><enum>(B)</enum><header>Confidentiality</header><text>The
Council shall maintain the confidentiality of information received under this
paragraph in all such reports, documents, records, and information, in a manner
consistent with the level of confidentiality established for the Commission
pursuant to paragraph (8). The Council shall be exempt from section 552 of
title 5, United States Code, with respect to any information in any report,
document, record, or information made available, to the Council under this
subsection.”.</text>
</subparagraph></paragraph><paragraph id="HC7121D225F31461ABEAE579727DA4090"><enum>(8)</enum><header>Commission
confidentiality of reports</header><text>Notwithstanding any other provision of
law, the Commission may not be compelled to disclose any report or information
contained therein required to be filed with the Commission under this
subsection, except that nothing in this subsection authorizes the
Commission—</text>
<subparagraph id="H4EA34CD323F24EEAAB7C6C25F97CD1CB"><enum>(A)</enum><text>to withhold
information from Congress, upon an agreement of confidentiality; or</text>
</subparagraph><subparagraph id="HA4C4CB7414EA459EA981B655E345CAAB"><enum>(B)</enum><text>prevent the
Commission from complying with—</text>
<clause id="H988CD9D6168F455E85EBEB7FB232D9B2"><enum>(i)</enum><text>a
request for information from any other Federal department or agency or any
self-regulatory organization requesting the report or information for purposes
within the scope of its jurisdiction; or</text>
</clause><clause id="HA6C3E2069A6B4633A82A25BF1FAA91CB"><enum>(ii)</enum><text>an order of a
court of the United States in an action brought by the United States or the
Commission.</text>
</clause></subparagraph></paragraph><paragraph id="HA6A4157DE5594C14B35B884DDE9913D7"><enum>(9)</enum><header>Other recipients
confidentiality</header><text>Any department, agency, or self-regulatory
organization that receives reports or information from the Commission under
this subsection shall maintain the confidentiality of such reports, documents,
records, and information in a manner consistent with the level of
confidentiality established for the Commission under paragraph (8).</text>
</paragraph><paragraph commented="no" id="HA505ABA8D19740D78B2EF4262ABEF5BC"><enum>(10)</enum><header>Public
information exception</header>
<subparagraph commented="no" id="H0069317CAAD446B09E2C2EA911CD0139"><enum>(A)</enum><header>In
general</header><text>The Commission, the Council, and any other department,
agency, or self-regulatory organization that receives information, reports,
documents, records, or information from the Commission under this subsection,
shall be exempt from the provisions of section 552 of title 5, United States
Code, with respect to any such report, document, record, or information. Any
proprietary information of an investment adviser ascertained by the Commission
from any report required to be filed with the Commission pursuant to this
subsection shall be subject to the same limitations on public disclosure as any
facts ascertained during an examination, as provided by section 210(b) of this
title.</text>
</subparagraph><subparagraph commented="no" id="HEF2E5C7D9C8B4D3E966C70C89C9F3B45"><enum>(B)</enum><header>Proprietary
information</header><text>For purposes of this paragraph, proprietary
information includes sensitive, non-public information regarding—</text>
<clause commented="no" id="HECF09B176D60464A86F15CD91291C337"><enum>(i)</enum><text>the investment or
trading strategies of the investment adviser;</text>
</clause><clause commented="no" id="H3180BE3AD3924F1FBF5541F889F8D3FA"><enum>(ii)</enum><text>analytical or
research methodologies;</text>
</clause><clause commented="no" id="H5E59FCC43CF24D1C842F89261D4AFD3C"><enum>(iii)</enum><text>trading
data;</text>
</clause><clause commented="no" id="H4B12A0A1CB104CC99F1E1D109E0ED0FE"><enum>(iv)</enum><text>computer hardware
or software containing intellectual property; and</text>
</clause><clause commented="no" id="HAC4C803562AD4434AC83330E96F9F772"><enum>(v)</enum><text>any additional
information that the Commission determines to be proprietary.</text>
</clause></subparagraph></paragraph><paragraph id="HF97FC224ADCA40D7832F6052B4B692A0"><enum>(11)</enum><header>Annual report
to Congress</header><text>The Commission shall report annually to Congress on
how the Commission has used the data collected pursuant to this subsection to
monitor the markets for the protection of investors and the integrity of the
markets.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H48C8C805A5274A78A9F0E30E40E5D98F"><enum>405.</enum><header>Disclosure
provision amendment</header><text display-inline="no-display-inline">Section
210(c) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–10(c)) is amended
by inserting before the period at the end the following: <quote>or for purposes
of assessment of potential systemic risk</quote>.</text>
</section><section id="H5091871D4883404DACFE1051F8F753FA"><enum>406.</enum><header>Clarification
of rulemaking authority</header><text display-inline="no-display-inline">Section 211 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–11) is amended—</text>
<paragraph id="HCF5DD5C902934B2EB7A9CFFE7FEABB3C"><enum>(1)</enum><text>in subsection (a),
by inserting before the period at the end of the first sentence the following:
<quote>, including rules and regulations defining technical, trade, and other
terms used in this title, except that the Commission may not define the term
<term>client</term> for purposes of paragraphs (1) and (2) of section 206 to
include an investor in a private fund managed by an investment adviser, if such
private fund has entered into an advisory contract with such adviser</quote>;
and</text>
</paragraph><paragraph id="H7658B4D6A7ED478CA37DB9E653CCD668"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA267575F4FED4EEBA6A34AFD77089EAA" style="OLC">
<subsection id="H55B3D36D52464C53852B62398069FAE1"><enum>(e)</enum><header>Disclosure rules
on private funds</header><text display-inline="yes-display-inline">The
Commission and the Commodity Futures Trading Commission shall, after
consultation with the Council but not later than 12 months after the date of
enactment of the Private Fund Investment Advisers Registration Act of 2010,
jointly promulgate rules to establish the form and content of the reports
required to be filed with the Commission under subsection 204(b) and with the
Commodity Futures Trading Commission by investment advisers that are registered
both under this title and the Commodity Exchange Act (7 U.S.C. 1a et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="H52D7654FC8CD41F7B390368457D7506F"><enum>407.</enum><header>Exemption of
and reporting by venture capital fund advisers</header><text display-inline="no-display-inline">Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–3) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H57332B269B374D90A1DDC231609CC8C4" style="OLC">
<subsection commented="no" id="HD5CC20F9491A4ACAAB07B31D5EA663C8"><enum>(l)</enum><header>Exemption of
venture capital fund advisers</header><text>No investment adviser that acts as
an investment adviser solely to 1 or more venture capital funds shall be
subject to the registration requirements of this title with respect to the
provision of investment advice relating to a venture capital fund. Not later
than 1 year after the date of enactment of this subsection, the Commission
shall issue final rules to define the term <term>venture capital fund</term>
for purposes of this subsection. The Commission shall require such advisers to
maintain such records and provide to the Commission such annual or other
reports as the Commission determines necessary or appropriate in the public
interest or for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H1F955DCDA79E4807A865D63A58BC9FCD"><enum>408.</enum><header>Exemption of
and reporting by certain private fund advisers</header><text display-inline="no-display-inline">Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–3) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6058CF476B564F4BA4F2ECE3E0913F20" style="OLC">
<subsection commented="no" id="HB25842E284EA426697D6DF0F72DA2F4E"><enum>(m)</enum><header>Exemption of and
reporting by certain private fund advisers</header>
<paragraph commented="no" id="H5C7456B376834DCE8E9EE5BC5738076A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
provide an exemption from the registration requirements under this section to
any investment adviser of private funds, if each of such investment adviser
acts solely as an adviser to private funds and has assets under management in
the United States of less than $150,000,000.</text>
</paragraph><paragraph commented="no" id="HA92366FCBCB74AEFAD98E1A18FF57FAF"><enum>(2)</enum><header>Reporting</header><text>The
Commission shall require investment advisers exempted by reason of this
subsection to maintain such records and provide to the Commission such annual
or other reports as the Commission determines necessary or appropriate in the
public interest or for the protection of investors.</text>
</paragraph></subsection><subsection commented="no" id="H80420BCD1411410D8A2AF0AE40BBDC11"><enum>(n)</enum><header>Registration and
examination of mid-sized private fund advisers</header><text>In prescribing
regulations to carry out the requirements of this section with respect to
investment advisers acting as investment advisers to mid-sized private funds,
the Commission shall take into account the size, governance, and investment
strategy of such funds to determine whether they pose systemic risk, and shall
provide for registration and examination procedures with respect to the
investment advisers of such funds which reflect the level of systemic risk
posed by such
funds.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEC4EB4A0B3654551BDE559BD1467761B"><enum>409.</enum><header>Family
offices</header>
<subsection id="H53323484AFE24088AF281F6CA79E8343"><enum>(a)</enum><header>In
general</header><text>Section 202(a)(11) of the Investment Advisers Act of 1940
(15 U.S.C. 80b–2(a)(11)) is amended by striking <quote>or (G)</quote> and
inserting the following: <quote>; (G) any family office, as defined by rule,
regulation, or order of the Commission, in accordance with the purposes of this
title; or (H)</quote>.</text>
</subsection><subsection id="H7C8C0AC2A448499EA360FA8C0C281945"><enum>(b)</enum><header>Rulemaking</header><text>The
rules, regulations, or orders issued by the Commission pursuant to section
202(a)(11)(G) of the Investment Advisers Act of 1940, as added by this section,
regarding the definition of the term <quote>family office</quote> shall provide
for an exemption that—</text>
<paragraph id="H226F86913AB440939A9B560C536BF2F5"><enum>(1)</enum><text>is consistent with
the previous exemptive policy of the Commission, as reflected in exemptive
orders for family offices in effect on the date of enactment of this Act, and
the grandfathering provisions in paragraph (3);</text>
</paragraph><paragraph id="HB2A82AF7284B44F68804E1A251B64B8B"><enum>(2)</enum><text>recognizes the
range of organizational, management, and employment structures and arrangements
employed by family offices; and</text>
</paragraph><paragraph id="HA401848417C042B7800AB69E9BED4998"><enum>(3)</enum><text>does not exclude
any person who was not registered or required to be registered under the
Investment Advisers Act of 1940 on January 1, 2010 from the definition of the
term <quote>family office</quote>, solely because such person provides
investment advice to, and was engaged before January 1, 2010 in providing
investment advice to—</text>
<subparagraph id="H15749CB6499C4ACBBB4228884E36DCE4"><enum>(A)</enum><text>natural persons
who, at the time of their applicable investment, are officers, directors, or
employees of the family office who—</text>
<clause id="H7AF68303C5094EB1BD919CFF77C97C04"><enum>(i)</enum><text>have
invested with the family office before January 1, 2010; and</text>
</clause><clause id="HEFA503F869824948BC2ACAC8AF937179"><enum>(ii)</enum><text>are
accredited investors, as defined in Regulation D of the Commission (or any
successor thereto) under the Securities Act of 1933, or, as the Commission may
prescribe by rule, the successors-in-interest thereto;</text>
</clause></subparagraph><subparagraph id="HE98F485A41224452919EC9FAD19B522B"><enum>(B)</enum><text>any company owned
exclusively and controlled by members of the family of the family office, or as
the Commission may prescribe by rule;</text>
</subparagraph><subparagraph id="H17208678A995441C895AE796D0BD7AF1"><enum>(C)</enum><text>any investment
adviser registered under the Investment Adviser Act of 1940 that provides
investment advice to the family office and who identifies investment
opportunities to the family office, and invests in such transactions on
substantially the same terms as the family office invests, but does not invest
in other funds advised by the family office, and whose assets as to which the
family office directly or indirectly provides investment advice represent, in
the aggregate, not more than 5 percent of the value of the total assets as to
which the family office provides investment advice.</text>
</subparagraph></paragraph></subsection><subsection id="H45B01A4FBA564EBBAB72E4CB38C94CD5"><enum>(c)</enum><header>Antifraud
authority</header><text>A family office that would not be a family office, but
for subsection (b)(3), shall be deemed to be an investment adviser for the
purposes of paragraphs (1), (2) and (4) of section 206 of the Investment
Advisers Act of 1940.</text>
</subsection></section><section id="HE7C6D56C65544747900107290028F9C4"><enum>410.</enum><header>State and
Federal responsibilities; asset threshold for Federal registration of
investment advisers</header><text display-inline="no-display-inline">Section
203A(a) of the of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3a(a)) is
amended—</text>
<paragraph id="H2A32EE57F4214BB88C1988362712B39C"><enum>(1)</enum><text>by redesignating
paragraph (2) as paragraph (3); and</text>
</paragraph><paragraph id="HCEE8C8302E3849A48A98F6315D70E366"><enum>(2)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7AD5D929F2354D1A82EBA0084409F600" style="OLC">
<paragraph id="H85F2F3B429B748909BF2FEEAD9FBD882"><enum>(2)</enum><header>Treatment of
mid-sized investment advisers</header>
<subparagraph id="HFA97976D0F5C4ACCBFAEF00A8E755891"><enum>(A)</enum><header>In
general</header><text>No investment adviser described in subparagraph (B) shall
register under section 203, unless the investment adviser is an adviser to an
investment company registered under the Investment Company Act of 1940, or a
company which has elected to be a business development company pursuant to
section 54 of the Investment Company Act of 1940, and has not withdrawn the
election, except that, if by effect of this paragraph an investment adviser
would be required to register with 15 or more States, then the adviser may
register under section 203.</text>
</subparagraph><subparagraph id="H0F20EA8CA0304A31B9BC6FDB55B284A3"><enum>(B)</enum><header>Covered
persons</header><text>An investment adviser described in this subparagraph is
an investment adviser that—</text>
<clause id="HAC7ECD7ADAE9412288A1BDDBA0727270"><enum>(i)</enum><text>is
required to be registered as an investment adviser with the securities
commissioner (or any agency or office performing like functions) of the State
in which it maintains its principal office and place of business and, if
registered, would be subject to examination as an investment adviser by any
such commissioner, agency, or office; and</text>
</clause><clause id="HE49E8826FA62429993AC0BBD281BEB06"><enum>(ii)</enum><text>has assets under
management between—</text>
<subclause id="HA23A380A009D4BADAEEF9DA706F1C14C"><enum>(I)</enum><text>the amount
specified under subparagraph (A) of paragraph (1), as such amount may have been
adjusted by the Commission pursuant to that subparagraph; and</text>
</subclause><subclause id="H7EC8D144C08149B28F5B339A898B9799"><enum>(II)</enum><text>$100,000,000, or
such higher amount as the Commission may, by rule, deem appropriate in
accordance with the purposes of this
title.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H23FB0F3B138145C0B7951198666D15CA"><enum>411.</enum><header>Custody of
client assets</header><text display-inline="no-display-inline">The Investment
Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended by adding at the end
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HF48F4B562A7741EC829087CA729A0D36" style="OLC">
<section id="H58BFBC340F2B4EBE97497F23C21305C5"><enum>223.</enum><header>Custody of
client accounts</header><text display-inline="no-display-inline">An investment
adviser registered under this title shall take such steps to safeguard client
assets over which such adviser has custody, including, without limitation,
verification of such assets by an independent public accountant, as the
Commission may, by rule,
prescribe.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEED805BECDC849C0B9051AA58A827769" section-type="subsequent-section"><enum>412.</enum><header>Comptroller General
study on custody rule costs</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall—</text>
<paragraph id="H8D1FAE0AA0784ADE9EA5DC3BDBAC2D46"><enum>(1)</enum><text>conduct a study
of—</text>
<subparagraph id="H19642B566254472494FBB77B3E7C4EDE"><enum>(A)</enum><text>the compliance
costs associated with the current Securities and Exchange Commission rules
204–2 (17 C.F.R. Parts 275.204–2) and rule 206(4)–2 (17 C.F.R. 275.206(4)–2)
under the Investment Advisers Act of 1940 regarding custody of funds or
securities of clients by investment advisers; and</text>
</subparagraph><subparagraph id="H65613700467F489482112C13A4055B30"><enum>(B)</enum><text>the additional
costs if subsection (b)(6) of rule 206(4)–2 (17 C.F.R. 275.206(4)–2(b)(6))
relating to operational independence were eliminated; and</text>
</subparagraph></paragraph><paragraph id="HF68452C5C8324DEB8F67332A7FD02201"><enum>(2)</enum><text>submit a report to
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the results
of such study, not later than 3 years after the date of enactment of this
Act.</text>
</paragraph></section><section id="HD05684775D37456BA3E8D81C2010478B"><enum>413.</enum><header>Adjusting the
accredited investor standard</header>
<subsection id="HE8C740F2B5324B9EB436C926064EA365"><enum>(a)</enum><header>In
general</header><text>The Commission shall adjust any net worth standard for an
accredited investor, as set forth in the rules of the Commission under the
Securities Act of 1933, so that the individual net worth of any natural person,
or joint net worth with the spouse of that person, at the time of purchase, is
more than $1,000,000 (as such amount is adjusted periodically by rule of the
Commission), excluding the value of the primary residence of such natural
person, except that during the 4-year period that begins on the date of
enactment of this Act, any net worth standard shall be $1,000,000, excluding
the value of the primary residence of such natural person.</text>
</subsection><subsection id="HC6EA1F1C8087489FB9B57BC962D80C1F"><enum>(b)</enum><header>Review and
adjustment</header>
<paragraph id="HC38384D11DE5408CB2FFBA99F940FFFE"><enum>(1)</enum><header>Initial review
and adjustment</header>
<subparagraph id="HC2C434F5994B4976A0B110DBE4C36F07"><enum>(A)</enum><header>Initial
review</header><text>The Commission may undertake a review of the definition of
the term <term>accredited investor</term>, as such term applies to natural
persons, to determine whether the requirements of the definition, excluding the
requirement relating to the net worth standard described in subsection (a),
should be adjusted or modified for the protection of investors, in the public
interest, and in light of the economy.</text>
</subparagraph><subparagraph id="H807FCDF50FF144E79968D854D42E2CA0"><enum>(B)</enum><header>Adjustment or
modification</header><text>Upon completion of a review under subparagraph (A),
the Commission may, by notice and comment rulemaking, make such adjustments to
the definition of the term <term>accredited investor</term>, excluding
adjusting or modifying the requirement relating to the net worth standard
described in subsection (a), as such term applies to natural persons, as the
Commission may deem appropriate for the protection of investors, in the public
interest, and in light of the economy.</text>
</subparagraph></paragraph><paragraph id="H9EDBBE1649FE49CFBB200CF038242373"><enum>(2)</enum><header>Subsequent
reviews and adjustment</header>
<subparagraph id="H1840F568EDBA4BC7A05A0C2820F143C3"><enum>(A)</enum><header>Subsequent
reviews</header><text>Not earlier than 4 years after the date of enactment of
this Act, and not less frequently than once every 4 years thereafter, the
Commission shall undertake a review of the definition, in its entirety, of the
term <term>accredited investor</term>, as defined in section 230.215 of title
17, Code of Federal Regulations, or any successor thereto, as such term applies
to natural persons, to determine whether the requirements of the definition
should be adjusted or modified for the protection of investors, in the public
interest, and in light of the economy.</text>
</subparagraph><subparagraph id="H7DACA483339D45A4B1BD7736D45EA62E"><enum>(B)</enum><header>Adjustment or
modification</header><text>Upon completion of a review under subparagraph (A),
the Commission may, by notice and comment rulemaking, make such adjustments to
the definition of the term <term>accredited investor</term>, as defined in
section 230.215 of title 17, Code of Federal Regulations, or any successor
thereto, as such term applies to natural persons, as the Commission may deem
appropriate for the protection of investors, in the public interest, and in
light of the economy.</text>
</subparagraph></paragraph></subsection></section><section id="H8DCC075022924CBE8A645AE099812DF1"><enum>414.</enum><header>Rule of
construction relating to the Commodities Exchange Act</header><text display-inline="no-display-inline">The Investment Advisers Act of 1940 (15
U.S.C. 80b–1 et seq.) is further amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H8907ACA5ABAA4874BECAD6BEE132A601" style="OLC">
<section id="H71D3C5E5A3294B52BF7947DBD17EE1C5"><enum>224.</enum><header>Rule of
construction relating to the Commodities Exchange Act</header><text display-inline="no-display-inline">Nothing in this title shall relieve any
person of any obligation or duty, or affect the availability of any right or
remedy available to the Commodity Futures Trading Commission or any private
party, arising under the Commodity Exchange Act (7 U.S.C. 1 et seq.) governing
commodity pools, commodity pool operators, or commodity trading
advisors.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H005AAFC4D86F4AEC8E05ECA547AF7F34"><enum>415.</enum><header>GAO study and
report on accredited investors</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall conduct a study on the appropriate criteria for determining the financial
thresholds or other criteria needed to qualify for accredited investor status
and eligibility to invest in private funds, and shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives on the results
of such study not later than 3 years after the date of enactment of this
Act.</text>
</section><section id="HB2C02C27E4694597982261BE64E833FA"><enum>416.</enum><header>GAO study on
self-regulatory organization for private funds</header><text display-inline="no-display-inline">The Comptroller General of the United States
shall—</text>
<paragraph id="H7AEC3FC455DB4D91BACDD2A4B3637DCC"><enum>(1)</enum><text display-inline="yes-display-inline">conduct a study of the feasibility of
forming a self-regulatory organization to oversee private funds; and</text>
</paragraph><paragraph id="H07C626D3886741BFB02F237EEE988751"><enum>(2)</enum><text display-inline="yes-display-inline">submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on the results of such
study, not later than 1 year after the date of enactment of this Act.</text>
</paragraph></section><section id="HC3D027AA65E54279804F2F549D6EF935"><enum>417.</enum><header>Commission
study and report on short selling</header>
<subsection id="H9AD4AB0DA978485FBB97E87287B80E59"><enum>(a)</enum><header>Studies</header><text>The
Division of Risk, Strategy, and Financial Innovation of the Commission shall
conduct—</text>
<paragraph id="H0CB0E49C95114CC79562706E801BF3A3"><enum>(1)</enum><text>a
study, taking into account current scholarship, on the state of short selling
on national securities exchanges and in the over-the-counter markets, with
particular attention to the impact of recent rule changes and the incidence
of—</text>
<subparagraph id="HA066EA9F769140EF8179FFCA41CFA2EC"><enum>(A)</enum><text>the failure to
deliver shares sold short; or</text>
</subparagraph><subparagraph id="HAAE92CB1A9284C0EAA05561DD8371BA7"><enum>(B)</enum><text>delivery of shares
on the fourth day following the short sale transaction; and</text>
</subparagraph></paragraph><paragraph id="H1C260421FB474D79B98577E6B93B91BE"><enum>(2)</enum><text>a
study of—</text>
<subparagraph id="H639E0BD9EE0549269A19B93989B0E6BF"><enum>(A)</enum><text>the feasibility,
benefits, and costs of requiring reporting publicly, in real time short sale
positions of publicly listed securities, or, in the alternative, reporting such
short positions in real time only to the Commission and the Financial Industry
Regulatory Authority; and</text>
</subparagraph><subparagraph id="HDB1846870DF44102B4E4170A5372AE0C"><enum>(B)</enum><text>the feasibility,
benefits, and costs of conducting a voluntary pilot program in which public
companies will agree to have all trades of their shares marked
<quote>short</quote>, <quote>market maker short</quote>, <quote>buy</quote>,
<quote>buy-to-cover</quote>, or <quote>long</quote>, and reported in real time
through the Consolidated Tape.</text>
</subparagraph></paragraph></subsection><subsection id="H7C6EF3A3FCB243569DEA882B80DD1536"><enum>(b)</enum><header>Reports</header><text>The
Commission shall submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives—</text>
<paragraph id="H4897471F47E64C53803CE84BC24A3EDD"><enum>(1)</enum><text>on the results of
the study required under subsection (a)(1), including recommendations for
market improvements, not later than 2 years after the date of enactment of this
Act; and</text>
</paragraph><paragraph id="H72B6232259D74844BC1404B0CABB34B5"><enum>(2)</enum><text>on the results of
the study required under subsection (a)(2), not later than 1 year after the
date of enactment of this Act.</text>
</paragraph></subsection></section><section id="H94DB01FC1F2346B6A03B1ECAD046FDBB"><enum>418.</enum><header>Qualified
client standard</header><text display-inline="no-display-inline">Section 205(e)
of the Investment Advisers Act of 1940 (15 U.S.C. 80b–5(e)) is amended by
adding at the end the following: <quote>With respect to any factor used in any
rule or regulation by the Commission in making a determination under this
subsection, if the Commission uses a dollar amount test in connection with such
factor, such as a net asset threshold, the Commission shall, by order, not
later than 1 year after the date of enactment of the Private Fund Investment
Advisers Registration Act of 2010, and every 5 years thereafter, adjust for the
effects of inflation on such test. Any such adjustment that is not a multiple
of $100,000 shall be rounded to the nearest multiple of
$100,000.</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HD7F6BB4B8E1E42CEADC858C96161ED93" section-type="subsequent-section"><enum>419.</enum><header>Transition
period</header><text display-inline="no-display-inline">Except as otherwise
provided in this title, this title and the amendments made by this title shall
become effective 1 year after the date of enactment of this Act, except that
any investment adviser may, at the discretion of the investment adviser,
register with the Commission under the Investment Advisers Act of 1940 during
that 1-year period, subject to the rules of the Commission.</text>
</section><enum>V</enum><header>Insurance</header>
<subtitle id="HD1967A840F094EA68A4A8E556FE9015D"><enum>A</enum><header>Federal Insurance
Office</header>
<section id="H96F7D322C0564D07B0525CE222B6AC00"><enum>501.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Federal Insurance Office Act of 2010</quote>.</text>
</section><section id="H47C854D06ED543B99D87C3D92ACD105A"><enum>502.</enum><header>Federal
Insurance Office</header>
<subsection id="HB8FC23F1D083442BAD38E51912D194D6"><enum>(a)</enum><header>Establishment of
office</header><text>Subchapter I of chapter 3 of subtitle I of title 31,
United States Code, is amended—</text>
<paragraph id="HB6C08195CE6F4A30838F03662C2CA7CE"><enum>(1)</enum><text>by redesignating
section 312 as section 315;</text>
</paragraph><paragraph id="HDA8A71E24059488BB32E4A312C2CA487"><enum>(2)</enum><text>by redesignating
section 313 as section 312; and</text>
</paragraph><paragraph id="H1CE198BDD30744D08338E8DC527EF829"><enum>(3)</enum><text>by inserting after
section 312 (as so redesignated) the following new sections:</text>
<quoted-block display-inline="no-display-inline" id="H80ECFED4FDF24AF594E409E12676994B" style="OLC">
<section id="HE4E5D562F612468A94349AC86E5A223A"><enum>313.</enum><header>Federal
Insurance Office</header>
<subsection id="H903CEBFF12AF40259721C049EB346700"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Department of the Treasury the Federal Insurance
Office.</text>
</subsection><subsection id="H53ED7ED9D10B4F61AC9351928ED8CD6E"><enum>(b)</enum><header>Leadership</header><text>The
Office shall be headed by a Director, who shall be appointed by the Secretary
of the Treasury. The position of Director shall be a career reserved position
in the Senior Executive Service, as that position is defined under section 3132
of title 5, United States Code.</text>
</subsection><subsection id="H961C0D9896514B4FAFEDE46FE197AB1D"><enum>(c)</enum><header>Functions</header>
<paragraph id="HE5B14EB2F03840068BCFF60D3EC3331C"><enum>(1)</enum><header>Authority
pursuant to direction of Secretary</header><text>The Office, pursuant to the
direction of the Secretary, shall have the authority—</text>
<subparagraph id="HF93318BE8E8340F1A879AFB59279BA84"><enum>(A)</enum><text>to monitor all
aspects of the insurance industry, including identifying issues or gaps in the
regulation of insurers that could contribute to a systemic crisis in the
insurance industry or the United States financial system;</text>
</subparagraph><subparagraph id="H69FB5A1E8CAC472B9C1885F26147806D"><enum>(B)</enum><text>to monitor the
extent to which traditionally underserved communities and consumers, minorities
(as such term is defined in section 1204(c) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)), and low-
and moderate-income persons have access to affordable insurance products
regarding all lines of insurance, except health insurance;</text>
</subparagraph><subparagraph id="H8C8D8872D8DA4446AAA4F960205BCD46"><enum>(C)</enum><text>to recommend to
the Financial Stability Oversight Council that it designate an insurer,
including the affiliates of such insurer, as an entity subject to regulation as
a nonbank financial company supervised by the Board of Governors pursuant to
title I of the Dodd-Frank Wall Street Reform and Consumer Protection
Act;</text>
</subparagraph><subparagraph id="H998EDFCF1BDD4447A5B6E45CB8E0B3C5"><enum>(D)</enum><text>to assist the
Secretary in administering the Terrorism Insurance Program established in the
Department of the Treasury under the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note);</text>
</subparagraph><subparagraph id="HB93A90F1E55E4403A872C247866A8019"><enum>(E)</enum><text>to coordinate
Federal efforts and develop Federal policy on prudential aspects of
international insurance matters, including representing the United States, as
appropriate, in the International Association of Insurance Supervisors (or a
successor entity) and assisting the Secretary in negotiating covered agreements
(as such term is defined in subsection (r));</text>
</subparagraph><subparagraph id="HFC4729F7F0F94DA59120AEFE62E5B314"><enum>(F)</enum><text>to determine, in
accordance with subsection (f), whether State insurance measures are preempted
by covered agreements;</text>
</subparagraph><subparagraph id="H072F5F58AB9F430AB25DC0C53332B0B5"><enum>(G)</enum><text>to consult with
the States (including State insurance regulators) regarding insurance matters
of national importance and prudential insurance matters of international
importance; and</text>
</subparagraph><subparagraph id="HBA8D3CD7C1274C279E0EB7E18E9618DD"><enum>(H)</enum><text>to perform such
other related duties and authorities as may be assigned to the Office by the
Secretary.</text>
</subparagraph></paragraph><paragraph id="HC16AAA157C214C49BBAEA20DF1245D8C"><enum>(2)</enum><header>Advisory
functions</header><text>The Office shall advise the Secretary on major domestic
and prudential international insurance policy issues.</text>
</paragraph><paragraph id="HC528FE32680540BBB47D308261F7293F"><enum>(3)</enum><header>Advisory
capacity on Council</header><text>The Director shall serve in an advisory
capacity on the Financial Stability Oversight Council established under the
Financial Stability Act of 2010.</text>
</paragraph></subsection><subsection id="H4314AF5253D946EC97799DB01594646C"><enum>(d)</enum><header>Scope</header><text display-inline="yes-display-inline">The authority of the Office shall extend to
all lines of insurance except—</text>
<paragraph id="HE02B8A0068F24B01ADD1F5BA763B0E52"><enum>(1)</enum><text>health insurance,
as determined by the Secretary in coordination with the Secretary of Health and
Human Services based on section 2791 of the Public Health Service Act (42
U.S.C. 300gg–91);</text>
</paragraph><paragraph id="H68DBB4B3B4654EF88B9115FF2DB64FA0"><enum>(2)</enum><text display-inline="yes-display-inline">long-term care insurance, except long-term
care insurance that is included with life or annuity insurance components, as
determined by the Secretary in coordination with the Secretary of Health and
Human Services, and in the case of long-term care insurance that is included
with such components, the Secretary shall coordinate with the Secretary of
Health and Human Services in performing the functions of the Office; and</text>
</paragraph><paragraph id="H3F4D791A3C444A848C2236F8DFD72528"><enum>(3)</enum><text>crop insurance, as
established by the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).</text>
</paragraph></subsection><subsection id="H215CB0267F9149B7BFFDE4F318C969E2"><enum>(e)</enum><header>Gathering of
information</header>
<paragraph id="HC7FA415DC12241C5AEDDA07FA027E734"><enum>(1)</enum><header>In
general</header><text>In carrying out the functions required under subsection
(c), the Office may—</text>
<subparagraph id="H35F5465B4E4449929A378C4FAD9E703E"><enum>(A)</enum><text>receive and
collect data and information on and from the insurance industry and
insurers;</text>
</subparagraph><subparagraph id="H8A3575FADFB449EDA62DE56327AF1419"><enum>(B)</enum><text>enter into
information-sharing agreements;</text>
</subparagraph><subparagraph id="H46D43DE984FC4401BD7B12457F2F519D"><enum>(C)</enum><text>analyze and
disseminate data and information; and</text>
</subparagraph><subparagraph id="HCCFED4FEC6994C47B16244E7509CC365"><enum>(D)</enum><text>issue reports
regarding all lines of insurance except health insurance.</text>
</subparagraph></paragraph><paragraph id="HC1A094F3507645D59983B12A1B3315C4"><enum>(2)</enum><header>Collection of
information from insurers and affiliates</header>
<subparagraph id="HFDEB5FD1E41240708E3E6E48C076DB14"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (3), the Office may
require an insurer, or any affiliate of an insurer, to submit such data or
information as the Office may reasonably require in carrying out the functions
described under subsection (c).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDBABE9D630584997AE2D9A4E9CDB4575"><enum>(B)</enum><header>Rule of
construction</header><text>Notwithstanding any other provision of this section,
for purposes of subparagraph (A), the term <quote>insurer</quote> means any
entity that writes insurance or reinsures risks and issues contracts or
policies in 1 or more States.</text>
</subparagraph></paragraph><paragraph id="H8A3EC3037EB44B95A95A6354813B482F"><enum>(3)</enum><header>Exception for
small insurers</header><text>Paragraph (2) shall not apply with respect to any
insurer or affiliate thereof that meets a minimum size threshold that the
Office may establish, whether by order or rule.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H312C2B8E84F649FAB1628256E6680930"><enum>(4)</enum><header display-inline="yes-display-inline">Advance coordination</header><text display-inline="yes-display-inline">Before collecting any data or information
under paragraph (2) from an insurer, or affiliate of an insurer, the Office
shall coordinate with each relevant Federal agency and State insurance
regulator (or other relevant Federal or State regulatory agency, if any, in the
case of an affiliate of an insurer) and any publicly available sources to
determine if the information to be collected is available from, and may be
obtained in a timely manner by, such Federal agency or State insurance
regulator, individually or collectively, other regulatory agency, or publicly
available sources. If the Director determines that such data or information is
available, and may be obtained in a timely manner, from such an agency,
regulator, regulatory agency, or source, the Director shall obtain the data or
information from such agency, regulator, regulatory agency, or source. If the
Director determines that such data or information is not so available, the
Director may collect such data or information from an insurer (or affiliate)
only if the Director complies with the requirements of subchapter I of chapter
35 of title 44, United States Code (relating to Federal information policy;
commonly known as the Paperwork Reduction Act), in collecting such data or
information. Notwithstanding any other provision of law, each such relevant
Federal agency and State insurance regulator or other Federal or State
regulatory agency is authorized to provide to the Office such data or
information.</text>
</paragraph><paragraph id="H430FFAB860C14DD79E03300839642E4A"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="H6700A7B081C2414DB68FFD8352079E5A"><enum>(A)</enum><header>Retention of
privilege</header><text>The submission of any nonpublicly available data and
information to the Office under this subsection shall not constitute a waiver
of, or otherwise affect, any privilege arising under Federal or State law
(including the rules of any Federal or State court) to which the data or
information is otherwise subject.</text>
</subparagraph><subparagraph id="HAFD693942E80456FB18560F57AC44782"><enum>(B)</enum><header>Continued
application of prior confidentiality agreements</header><text>Any requirement
under Federal or State law to the extent otherwise applicable, or any
requirement pursuant to a written agreement in effect between the original
source of any nonpublicly available data or information and the source of such
data or information to the Office, regarding the privacy or confidentiality of
any data or information in the possession of the source to the Office, shall
continue to apply to such data or information after the data or information has
been provided pursuant to this subsection to the Office.</text>
</subparagraph><subparagraph id="HED3AE75B9A0443CC8686536B963C56B5"><enum>(C)</enum><header>Information-sharing
agreement</header><text>Any data or information obtained by the Office may be
made available to State insurance regulators, individually or collectively,
through an information-sharing agreement that—</text>
<clause id="H5751D380C81E4B9087137747D782188D"><enum>(i)</enum><text>shall comply with
applicable Federal law; and</text>
</clause><clause id="H2DEADEBF45C743FEAE5F9EB507BDFD7C"><enum>(ii)</enum><text>shall not
constitute a waiver of, or otherwise affect, any privilege under Federal or
State law (including the rules of any Federal or State court) to which the data
or information is otherwise subject.</text>
</clause></subparagraph><subparagraph id="HDFFC3D083FC54A6BB0A115D6ECA6F75F"><enum>(D)</enum><header>Agency
disclosure requirements</header><text>Section 552 of title 5, United States
Code, shall apply to any data or information submitted to the Office by an
insurer or an affiliate of an insurer.</text>
</subparagraph></paragraph><paragraph id="H0F0E314019064CF4AFD60B2520C0B0C6"><enum>(6)</enum><header>Subpoenas and
enforcement</header><text>The Director shall have the power to require by
subpoena the production of the data or information requested under paragraph
(2), but only upon a written finding by the Director that such data or
information is required to carry out the functions described under subsection
(c) and that the Office has coordinated with such regulator or agency as
required under paragraph (4). Subpoenas shall bear the signature of the
Director and shall be served by any person or class of persons designated by
the Director for that purpose. In the case of contumacy or failure to obey a
subpoena, the subpoena shall be enforceable by order of any appropriate
district court of the United States. Any failure to obey the order of the court
may be punished by the court as a contempt of court.</text>
</paragraph></subsection><subsection id="HB3CDBD29BF234612BB43E394222922E7"><enum>(f)</enum><header>Preemption of
State insurance measures</header>
<paragraph id="HABD629AFDB9349D69B78F9D4E06C9932"><enum>(1)</enum><header>Standard</header><text>A
State insurance measure shall be preempted pursuant to this section or section
314 if, and only to the extent that the Director determines, in accordance with
this subsection, that the measure—</text>
<subparagraph id="H637FBCDFEC884854859E0693F3C0FD5D"><enum>(A)</enum><text>results in less
favorable treatment of a non-United States insurer domiciled in a foreign
jurisdiction that is subject to a covered agreement than a United States
insurer domiciled, licensed, or otherwise admitted in that State; and</text>
</subparagraph><subparagraph id="H681E92CC3A2845FE9C3CE1D86D41C4AA"><enum>(B)</enum><text>is inconsistent
with a covered agreement.</text>
</subparagraph></paragraph><paragraph id="H058B6198D84345E9B73162F4701AFBBF"><enum>(2)</enum><header>Determination</header>
<subparagraph id="HA90700CE801A4E72B1A5A05F3214EFA1"><enum>(A)</enum><header>Notice of
potential inconsistency</header><text>Before making any determination under
paragraph (1), the Director shall—</text>
<clause id="H6847B7C34BA24830A2BF9B90E039A5DB"><enum>(i)</enum><text>notify and consult
with the appropriate State regarding any potential inconsistency or
preemption;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7834EAD45B324109833088105CBA4A20"><enum>(ii)</enum><text display-inline="yes-display-inline">notify and consult with the United States
Trade Representative regarding any potential inconsistency or
preemption;</text>
</clause><clause id="H9351EE21F3AE4E4C9F3A9637EC473A51"><enum>(iii)</enum><text>cause to be
published in the Federal Register notice of the issue regarding the potential
inconsistency or preemption, including a description of each State insurance
measure at issue and any applicable covered agreement;</text>
</clause><clause id="H8A26592824124491854CB45745F1462F"><enum>(iv)</enum><text>provide
interested parties a reasonable opportunity to submit written comments to the
Office; and</text>
</clause><clause id="H48E0DC3B697A4D65A27CC6D9C2A0B7F0"><enum>(v)</enum><text>consider any
comments received.</text>
</clause></subparagraph><subparagraph id="H59629D53D98F455681F85FBEC58B975B"><enum>(B)</enum><header>Scope of
review</header><text display-inline="yes-display-inline">For purposes of this
subsection, any determination of the Director regarding State insurance
measures, and any preemption under paragraph (1) as a result of such
determination, shall be limited to the subject matter contained within the
covered agreement involved and shall achieve a level of protection for
insurance or reinsurance consumers that is substantially equivalent to the
level of protection achieved under State insurance or reinsurance
regulation.</text>
</subparagraph><subparagraph id="HC7E946D9537A4D88AB6EBC38CEA5F736"><enum>(C)</enum><header>Notice of
determination of inconsistency</header><text>Upon making any determination
under paragraph (1), the Director shall—</text>
<clause id="HDF0D47B776634A2B9AE12EC9A43EB727"><enum>(i)</enum><text>notify the
appropriate State of the determination and the extent of the
inconsistency;</text>
</clause><clause id="H8FF2261476AE4580AC2F9C144A9B8D4A"><enum>(ii)</enum><text>establish a
reasonable period of time, which shall not be less than 30 days, before the
determination shall become effective; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC4B959496E484DA298AD2C9B085A2373"><enum>(iii)</enum><text display-inline="yes-display-inline">notify the Committees on Financial Services
and Ways and Means of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and Finance of the Senate.</text>
</clause></subparagraph></paragraph><paragraph id="H4BB4DA2DC75842F5A92A62BC24365079"><enum>(3)</enum><header>Notice of
effectiveness</header><text>Upon the conclusion of the period referred to in
paragraph (2)(C)(ii), if the basis for such determination still exists, the
determination shall become effective and the Director shall—</text>
<subparagraph id="HD6ADF97788F74547A581B48B919F854A"><enum>(A)</enum><text>cause to be
published a notice in the Federal Register that the preemption has become
effective, as well as the effective date; and</text>
</subparagraph><subparagraph id="HBBA4E6A62A2B49C8B805CA31799286EB"><enum>(B)</enum><text>notify the
appropriate State.</text>
</subparagraph></paragraph><paragraph id="HF6A78EFF3BDB48B6804C24DAEDA69851"><enum>(4)</enum><header>Limitation</header><text>No
State may enforce a State insurance measure to the extent that such measure has
been preempted under this subsection.</text>
</paragraph></subsection><subsection id="H0777A67855A74EB990ED7DE767F49130"><enum>(g)</enum><header>Applicability of
Administrative Procedures Act</header><text>Determinations of inconsistency
made pursuant to subsection (f)(2) shall be subject to the applicable
provisions of subchapter II of chapter 5 of title 5, United States Code
(relating to administrative procedure), and chapter 7 of such title (relating
to judicial review), except that in any action for judicial review of a
determination of inconsistency, the court shall determine the matter de
novo.</text>
</subsection><subsection id="H3AB6046E0EAE44DBADF2C44877E7E0F6"><enum>(h)</enum><header>Regulations,
policies, and procedures</header><text>The Secretary may issue orders,
regulations, policies, and procedures to implement this section.</text>
</subsection><subsection id="HDFBA28C746DD4AC19EBA52B3F525A48C"><enum>(i)</enum><header>Consultation</header><text>The
Director shall consult with State insurance regulators, individually or
collectively, to the extent the Director determines appropriate, in carrying
out the functions of the Office.</text>
</subsection><subsection id="H79C0DC0F7CF14C4CA9D08ADB5F1DD8D3"><enum>(j)</enum><header>Savings
provisions</header><text>Nothing in this section shall—</text>
<paragraph id="H465AB1F0DDDE44679908896A459D3103"><enum>(1)</enum><text>preempt—</text>
<subparagraph id="H30F533C69B5B4931B4ED1B8BBE0A1F95"><enum>(A)</enum><text>any State
insurance measure that governs any insurer’s rates, premiums, underwriting, or
sales practices;</text>
</subparagraph><subparagraph id="HA434B1A9B55D4EE090D01C8DF1E28F27"><enum>(B)</enum><text>any State coverage
requirements for insurance;</text>
</subparagraph><subparagraph id="HDDE9F52305754D778CEAFEDA5ACBC776"><enum>(C)</enum><text>the application of
the antitrust laws of any State to the business of insurance; or</text>
</subparagraph><subparagraph id="H05FEB245E8614BDDA1CA84A42DBDFCE1"><enum>(D)</enum><text>any State
insurance measure governing the capital or solvency of an insurer, except to
the extent that such State insurance measure results in less favorable
treatment of a non-United State insurer than a United States insurer;</text>
</subparagraph></paragraph><paragraph id="H20F0DD6CCC3147F4B007A027B439CA58"><enum>(2)</enum><text>be construed to
alter, amend, or limit any provision of the Consumer Financial Protection
Agency Act of 2010; or</text>
</paragraph><paragraph id="HA7A50C123DF04090BA4B4AC9A72A6D7A"><enum>(3)</enum><text>affect the
preemption of any State insurance measure otherwise inconsistent with and
preempted by Federal law.</text>
</paragraph></subsection><subsection id="H78A90369277C41F295083584584E6434"><enum>(k)</enum><header>Retention of
existing State regulatory authority</header><text>Nothing in this section or
section 314 shall be construed to establish or provide the Office or the
Department of the Treasury with general supervisory or regulatory authority
over the business of insurance.</text>
</subsection><subsection id="HE1F1B71E7EA34BB3A3B9853D5B7908F7"><enum>(l)</enum><header>Retention of
authority of Federal financial regulatory agencies</header><text display-inline="yes-display-inline">Nothing
in this section or section 314 shall be construed to limit the authority of any
Federal financial regulatory agency, including the authority to develop and
coordinate policy, negotiate, and enter into agreements with foreign
governments, authorities, regulators, and multinational regulatory committees
and to preempt State measures to affect uniformity with international
regulatory agreements.</text>
</subsection><subsection id="H497311EF745E4B29A972C4C67E15D091"><enum>(m)</enum><header>Retention of
authority of United States Trade Representative</header><text>Nothing in this
section or section 314 shall be construed to affect the authority of the Office
of the United States Trade Representative pursuant to section 141 of the Trade
Act of 1974 (19 U.S.C. 2171) or any other provision of law, including authority
over the development and coordination of United States international trade
policy and the administration of the United States trade agreements
program.</text>
</subsection><subsection id="HCE6E004778414F7DB0547AE9931CAAF9"><enum>(n)</enum><header>Annual reports
to congress</header>
<paragraph id="HADD95AB7402140E3B335076D7B33A007"><enum>(1)</enum><header>Section
313<enum-in-header>(f)</enum-in-header> reports</header><text display-inline="yes-display-inline">Beginning September 30, 2011, the Director
shall submit a report on or before September 30 of each calendar year to the
President and to the Committees on Financial Services and Ways and Means of the
House of Representatives and the Committees on Banking, Housing, and Urban
Affairs and Finance of the Senate on any actions taken by the Office pursuant
to subsection (f) (regarding preemption of inconsistent State insurance
measures).</text>
</paragraph><paragraph id="HB124DD45FE53490880D1E042A133B163"><enum>(2)</enum><header>Insurance
industry</header><text display-inline="yes-display-inline">Beginning September
30, 2011, the Director shall submit a report on or before September 30 of each
calendar year to the President and to the Committee on Financial Services of
the House of Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate on the insurance industry and any other information as
deemed relevant by the Director or requested by such Committees.</text>
</paragraph></subsection><subsection id="H814AD4DEA77B475DBD0D23D903301D99"><enum>(o)</enum><header>Reports on U.S.
and global reinsurance market</header><text display-inline="yes-display-inline">The Director shall submit to the Committee
on Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate—</text>
<paragraph id="HF230131BA79642529BEFC50605398E46"><enum>(1)</enum><text>a report received
not later than September 30, 2012, describing the breadth and scope of the
global reinsurance market and the critical role such market plays in supporting
insurance in the United States; and</text>
</paragraph><paragraph id="HC046158C23AE483295D0F99FA15F1870"><enum>(2)</enum><text>a report received
not later than January 1, 2013, and updated not later than January 1, 2015,
describing the impact of part II of the Nonadmitted and Reinsurance Reform Act
of 2010 on the ability of State regulators to access reinsurance information
for regulated companies in their jurisdictions.</text>
</paragraph></subsection><subsection id="H0B8530E2756047749A51884809646DBA"><enum>(p)</enum><header>Study and report
on regulation of insurance</header>
<paragraph id="HF1C8C648DA914E43A32329E7322E4CDF"><enum>(1)</enum><header>In
general</header><text>Not later than 18 months after the date of enactment of
this section, the Director shall conduct a study and submit a report to
Congress on how to modernize and improve the system of insurance regulation in
the United States.</text>
</paragraph><paragraph id="H6F29817705D3474D82B3C6EDE8698043"><enum>(2)</enum><header>Considerations</header><text>The
study and report required under paragraph (1) shall be based on and guided by
the following considerations:</text>
<subparagraph id="H14E630A762334A999037B9252A9D5ECA"><enum>(A)</enum><text>Systemic risk
regulation with respect to insurance.</text>
</subparagraph><subparagraph id="H6492C57B101A4039ABE4191A8316C9EE"><enum>(B)</enum><text>Capital standards
and the relationship between capital allocation and liabilities, including
standards relating to liquidity and duration risk.</text>
</subparagraph><subparagraph id="H392CE62857104DD3BCBF48FE7CE01D99"><enum>(C)</enum><text>Consumer
protection for insurance products and practices, including gaps in State
regulation.</text>
</subparagraph><subparagraph id="HD9A951DE4A2045E9A4AB3EE57C0E1701"><enum>(D)</enum><text>The degree of
national uniformity of State insurance regulation.</text>
</subparagraph><subparagraph id="H0DFC48B5F4354387BB2DD2F0CE20A0B2"><enum>(E)</enum><text>The regulation of
insurance companies and affiliates on a consolidated basis.</text>
</subparagraph><subparagraph id="HF058C7187B1041CBAF9AB6CBE485E53A"><enum>(F)</enum><text>International
coordination of insurance regulation.</text>
</subparagraph></paragraph><paragraph id="H2F30FDC47D5F474E9758822A465B1A35"><enum>(3)</enum><header>Additional
factors</header><text>The study and report required under paragraph (1) shall
also examine the following factors:</text>
<subparagraph id="H0D8296E623424CB7BA811EDF56DAC75E"><enum>(A)</enum><text>The costs and
benefits of potential Federal regulation of insurance across various lines of
insurance (except health insurance).</text>
</subparagraph><subparagraph id="H15458D5CC18D46E8B1C1600C5695290C"><enum>(B)</enum><text>The feasibility of
regulating only certain lines of insurance at the Federal level, while leaving
other lines of insurance to be regulated at the State level.</text>
</subparagraph><subparagraph id="H266CA5CE4C0140F480E393CD223A8B8C"><enum>(C)</enum><text>The ability of any
potential Federal regulation or Federal regulators to eliminate or minimize
regulatory arbitrage.</text>
</subparagraph><subparagraph id="H2E08E3BA736C4C6E996A8FFD264ADE76"><enum>(D)</enum><text>The impact that
developments in the regulation of insurance in foreign jurisdictions might have
on the potential Federal regulation of insurance.</text>
</subparagraph><subparagraph id="H5A1778FA49754FAD873A8AD61754BC9B"><enum>(E)</enum><text>The ability of any
potential Federal regulation or Federal regulator to provide robust consumer
protection for policyholders.</text>
</subparagraph><subparagraph id="HA634EBD9E9BA44ED87B155DA1DA75BBA"><enum>(F)</enum><text>The potential
consequences of subjecting insurance companies to a Federal resolution
authority, including the effects of any Federal resolution authority—</text>
<clause id="H3D9107C5D0BB4DD8B99D2AE955005B7C"><enum>(i)</enum><text>on
the operation of State insurance guaranty fund systems, including the loss of
guaranty fund coverage if an insurance company is subject to a Federal
resolution authority;</text>
</clause><clause id="H3251477E83CF4D1CBC624DB39A5BE9B3"><enum>(ii)</enum><text>on policyholder
protection, including the loss of the priority status of policyholder claims
over other unsecured general creditor claims;</text>
</clause><clause id="H60A1980BDDA640149C108549D197C4B8"><enum>(iii)</enum><text>in the case of
life insurance companies, on the loss of the special status of separate account
assets and separate account liabilities; and</text>
</clause><clause id="H8ED9EBC8F0F44818ABB2164B50E79E01"><enum>(iv)</enum><text>on the
international competitiveness of insurance companies.</text>
</clause></subparagraph><subparagraph id="H78BA6ED48F5F43C8A881D821C3BFE563"><enum>(G)</enum><text>Such other factors
as the Director determines necessary or appropriate, consistent with the
principles set forth in paragraph (2).</text>
</subparagraph></paragraph><paragraph id="H30A641D081564129AE9C8165A989C40D"><enum>(4)</enum><header>Required
recommendations</header><text>The study and report required under paragraph (1)
shall also contain any legislative, administrative, or regulatory
recommendations, as the Director determines appropriate, to carry out or
effectuate the findings set forth in such report.</text>
</paragraph><paragraph id="H05D1B1282846450A93A83574EE542951"><enum>(5)</enum><header>Consultation</header><text>With
respect to the study and report required under paragraph (1), the Director
shall consult with the State insurance regulators, consumer organizations,
representatives of the insurance industry and policyholders, and other
organizations and experts, as appropriate.</text>
</paragraph></subsection><subsection id="H8220D88C6AAE474087B552C6CC57667B"><enum>(q)</enum><header>Use of existing
resources</header><text>To carry out this section, the Office may employ
personnel, facilities, and any other resource of the Department of the Treasury
available to the Secretary and the Secretary shall dedicate specific personnel
to the Office.</text>
</subsection><subsection id="HA2F2FD0692404AE09DE7F2B12DDC9A20"><enum>(r)</enum><header>Definitions</header><text>In
this section and section 314, the following definitions shall apply:</text>
<paragraph id="HD53E15EC3B8D461AAEA63ECE6B18C0B5"><enum>(1)</enum><header>Affiliate</header><text>The
term <term>affiliate</term> means, with respect to an insurer, any person who
controls, is controlled by, or is under common control with the insurer.</text>
</paragraph><paragraph id="H1D1CC892B8474501AC0D8D51FAA8097D"><enum>(2)</enum><header>Covered
agreement</header><text display-inline="yes-display-inline">The term
<quote>covered agreement</quote> means a written bilateral or multilateral
agreement regarding prudential measures with respect to the business of
insurance or reinsurance that—</text>
<subparagraph id="H86DB2BF88B09481E936DB9C31FAF2A70"><enum>(A)</enum><text>is entered into
between the United States and one or more foreign governments, authorities, or
regulatory entities; and</text>
</subparagraph><subparagraph id="H3FB35619DC6647E4A2EAB4D666C59CFC"><enum>(B)</enum><text>relates to the
recognition of prudential measures with respect to the business of insurance or
reinsurance that achieves a level of protection for insurance or reinsurance
consumers that is substantially equivalent to the level of protection achieved
under State insurance or reinsurance regulation.</text>
</subparagraph></paragraph><paragraph id="HF077A93D1EFA4F6180588061076A931C"><enum>(3)</enum><header>Insurer</header><text>The
term <term>insurer</term> means any person engaged in the business of
insurance, including reinsurance.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA68ECC672B1485FBF0FF84BED547A1A"><enum>(4)</enum><header display-inline="yes-display-inline">Federal financial regulatory
agency</header><text display-inline="yes-display-inline">The term
<quote>Federal financial regulatory agency</quote> means the Department of the
Treasury, the Board of Governors of the Federal Reserve System, the Office of
the Comptroller of the Currency, the Office of Thrift Supervision, the
Securities and Exchange Commission, the Commodity Futures Trading Commission,
the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency,
or the National Credit Union Administration.</text>
</paragraph><paragraph id="H2A1232E1E25A4A3A9DCD7161FD2521EB"><enum>(5)</enum><header>Non-United
States insurer</header><text>The term <term>non-United States insurer</term>
means an insurer that is organized under the laws of a jurisdiction other than
a State, but does not include any United States branch of such an
insurer.</text>
</paragraph><paragraph id="H8206AB2F9E8740B1B9651EC5D7988B20"><enum>(6)</enum><header>Office</header><text>The
term <term>Office</term> means the Federal Insurance Office established by this
section.</text>
</paragraph><paragraph id="HB6CB09FF48384DC8ACA9AEC6524DBE43"><enum>(7)</enum><header>State insurance
measure</header><text>The term <term>State insurance measure</term> means any
State law, regulation, administrative ruling, bulletin, guideline, or practice
relating to or affecting prudential measures applicable to insurance or
reinsurance.</text>
</paragraph><paragraph id="H001BBA30EA814D71A096B1037CA56388"><enum>(8)</enum><header>State insurance
regulator</header><text>The term <term>State insurance regulator</term> means
any State regulatory authority responsible for the supervision of
insurers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42970199A61A4A3C9DBEF5440B2C7CDB"><enum>(9)</enum><header display-inline="yes-display-inline">Substantially equivalent to the level of
protection achieved</header><text display-inline="yes-display-inline">The term
<quote>substantially equivalent to the level of protection achieved</quote>
means the prudential measures of a foreign government, authority, or regulatory
entity achieve a similar outcome in consumer protection as the outcome achieved
under State insurance or reinsurance regulation.</text>
</paragraph><paragraph id="H6BF8F22B745840DF9DCB71C82BF6FBC3"><enum>(10)</enum><header>United States
insurer</header><text>The term <term>United States insurer</term> means—</text>
<subparagraph id="H94C90FA3202748928309F676B61D19C7"><enum>(A)</enum><text>an insurer that is
organized under the laws of a State; or</text>
</subparagraph><subparagraph id="H2FF5EE15DC5E40D499E6E5121134B1D7"><enum>(B)</enum><text>a United States
branch of a non-United States insurer.</text>
</subparagraph></paragraph></subsection><subsection id="HBD93362D5E0940F3ADFA2949B6FD8EDE"><enum>(s)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated for the
Office for each fiscal year such sums as may be necessary.</text>
</subsection></section><section id="HBD32E9FA101145819A47FB5D13D794EB"><enum>314.</enum><header>Covered
agreements</header>
<subsection id="H797719CCB5CD4C3991543B9DBF27DA13"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The Secretary and the United States Trade
Representative are authorized, jointly, to negotiate and enter into covered
agreements on behalf of the United States.</text>
</subsection><subsection id="H6C98248C712C496FBA352502E63043BB"><enum>(b)</enum><header>Requirements for
consultation with Congress</header>
<paragraph id="HCB9E9FDB7AAA4055B01ED7F2E3B9FBA5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Before initiating
negotiations to enter into a covered agreement under subsection (a), during
such negotiations, and before entering into any such agreement, the Secretary
and the United States Trade Representative shall jointly consult with the
Committee on Financial Services and the Committee on Ways and Means of the
House of Representatives and the Committee on Banking, Housing, and Urban
Affairs and the Committee on Finance of the Senate.</text>
</paragraph><paragraph id="H0FBF244ABFDC4A25B83D0F10538521C8"><enum>(2)</enum><header>Scope</header><text>The
consultation described in paragraph (1) shall include consultation with respect
to—</text>
<subparagraph id="H46BF914F61804625A7570D554F699EDB"><enum>(A)</enum><text>the nature of the
agreement;</text>
</subparagraph><subparagraph id="H404B67D0B5E8498CB07F3CA2940993EE"><enum>(B)</enum><text>how and to what
extent the agreement will achieve the applicable purposes, policies,
priorities, and objectives of section 313 and this section; and</text>
</subparagraph><subparagraph id="HB927A9DF1CBB4EB280329F048F5D0068"><enum>(C)</enum><text>the implementation
of the agreement, including the general effect of the agreement on existing
State laws.</text>
</subparagraph></paragraph></subsection><subsection id="H64276320F0634109ABC77493DAF13580"><enum>(c)</enum><header>Submission and
layover provisions</header><text>A covered agreement under subsection (a) may
enter into force with respect to the United States only if—</text>
<paragraph id="H14BB0A71656249DF8E0313A5CDE44CE6"><enum>(1)</enum><text>the Secretary and
the United States Trade Representative jointly submit to the congressional
committees specified in subsection (b)(1), on a day on which both Houses of
Congress are in session, a copy of the final legal text of the agreement;
and</text>
</paragraph><paragraph id="H4337830022154E97BC09F38D488AD430"><enum>(2)</enum><text>a period of 90
calendar days beginning on the date on which the copy of the final legal text
of the agreement is submitted to the congressional committees under paragraph
(1) has
expired.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6FD0E45F4638405BB941C93680355704"><enum>(b)</enum><header>Duties of
Secretary</header><text>Section 321(a) of title 31, United States Code, is
amended—</text>
<paragraph id="HA7A6E167DDBA4F808030FA8EE860C102"><enum>(1)</enum><text>in paragraph (7),
by striking <quote>; and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="H576ACDA012FB4AC7AA1AE2ED7552278D"><enum>(2)</enum><text>in paragraph
(8)(C), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H99C59BDDB793465EA4349EEFA5D36DB3"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H89B30F0786ED4398BD18E797582601B2" style="OLC">
<paragraph id="HCD45EB337B074C1F80447D702754C585"><enum>(9)</enum><text>advise the
President on major domestic and international prudential policy issues in
connection with all lines of insurance except health
insurance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3F0567CB9B0844479099010C04FF5958"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subchapter I of chapter 3 of
title 31, United States Code, is amended by striking the item relating to
section 312 and inserting the following new items:</text>
<quoted-block display-inline="no-display-inline" id="HEC6F9A3B52FC479FA32746550AE50739" style="OLC">
<toc>
<toc-entry idref="HE4E5D562F612468A94349AC86E5A223A" level="section">Sec. 312. Terrorism and financial intelligence.</toc-entry>
<toc-entry bold="off" level="section">Sec. 313. Federal Insurance
Office.</toc-entry>
<toc-entry level="section">Sec. 314. Covered agreements.</toc-entry>
<toc-entry bold="off" level="section">Sec. 315. Continuing in
office.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="HE76DB062744047D5B9E9D39128608CBF"><enum>B</enum><header>State-Based
Insurance Reform</header>
<section id="HFC643BFAA34E4B28970D25880DC58B80"><enum>511.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Nonadmitted and Reinsurance Reform Act of
2010</quote>.</text>
</section><section id="H34EDFAD0FA5E4A869A25F3485C077DC4"><enum>512.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
specifically provided in this subtitle, this subtitle shall take effect upon
the expiration of the 12-month period beginning on the date of the enactment of
this subtitle.</text>
</section><part id="H6800B39B4C97415AA2B35F515892759F"><enum>I</enum><header>Nonadmitted
insurance</header>
<section id="H379D1AD618E647169158EAC5230DEC8C"><enum>521.</enum><header>Reporting,
payment, and allocation of premium taxes</header>
<subsection id="H0A2DDF613DCA45B6A76444C3CF14A41D"><enum>(a)</enum><header>Home State’s
exclusive authority</header><text>No State other than the home State of an
insured may require any premium tax payment for nonadmitted insurance.</text>
</subsection><subsection id="H4566DADBA0F84B0EB2AED8E3F9164D5E"><enum>(b)</enum><header>Allocation of
nonadmitted premium taxes</header>
<paragraph id="H18B3C54C1D3F4D60B87BAACBA7258315"><enum>(1)</enum><header>In
general</header><text>The States may enter into a compact or otherwise
establish procedures to allocate among the States the premium taxes paid to an
insured’s home State described in subsection (a).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H68FFA43F6E214EDA8AAA1F2D6F2B029F"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Except as expressly
otherwise provided in such compact or other procedures, any such compact or
other procedures—</text>
<subparagraph id="H03141DCD2E35479DB23D46EE728D144F"><enum>(A)</enum><text display-inline="yes-display-inline">if adopted on or before the expiration of
the 330-day period that begins on the date of the enactment of this subtitle,
shall apply to any premium taxes that, on or after such date of enactment, are
required to be paid to any State that is subject to such compact or procedures;
and</text>
</subparagraph><subparagraph id="H7D0354FD1F2C44608617F893C84C437E"><enum>(B)</enum><text display-inline="yes-display-inline">if adopted after the expiration of such
330-day period, shall apply to any premium taxes that, on or after January 1 of
the first calendar year that begins after the expiration of such 330-day
period, are required to be paid to any State that is subject to such compact or
procedures.</text>
</subparagraph></paragraph><paragraph id="H7D3E471D260842059771E81A42B9FD40"><enum>(3)</enum><header>Report</header><text display-inline="yes-display-inline">Upon the expiration of the 330-day period
referred to in paragraph (2), the NAIC may submit a report to the Committee on
Financial Services and the Committee on the Judiciary of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate identifying and describing any compact or other procedures for
allocation among the States of premium taxes that have been adopted during such
period by any States.</text>
</paragraph><paragraph id="HC3FA52AAE8C144B19961E675795A2E2C"><enum>(4)</enum><header>Nationwide
system</header><text>The Congress intends that each State adopt nationwide
uniform requirements, forms, and procedures, such as an interstate compact,
that provide for the reporting, payment, collection, and allocation of premium
taxes for nonadmitted insurance consistent with this section.</text>
</paragraph></subsection><subsection id="H7A52726FA98940BAB69519824425B9AF"><enum>(c)</enum><header>Allocation based
on tax allocation report</header><text>To facilitate the payment of premium
taxes among the States, an insured’s home State may require surplus lines
brokers and insureds who have independently procured insurance to annually file
tax allocation reports with the insured’s home State detailing the portion of
the nonadmitted insurance policy premium or premiums attributable to
properties, risks, or exposures located in each State. The filing of a
nonadmitted insurance tax allocation report and the payment of tax may be made
by a person authorized by the insured to act as its agent.</text>
</subsection></section><section id="H29349B19A7D34E4D8D027F0BE16381B6"><enum>522.</enum><header>Regulation of
nonadmitted insurance by insured’s home State</header>
<subsection id="H986B2F8EC5284DE495CD9DC8776B1A21"><enum>(a)</enum><header>Home State
authority</header><text display-inline="yes-display-inline">Except as otherwise
provided in this section, the placement of nonadmitted insurance shall be
subject to the statutory and regulatory requirements solely of the insured’s
home State.</text>
</subsection><subsection id="HCFEEEF727F864834B7873647076780EF"><enum>(b)</enum><header>Broker
licensing</header><text>No State other than an insured’s home State may require
a surplus lines broker to be licensed in order to sell, solicit, or negotiate
nonadmitted insurance with respect to such insured.</text>
</subsection><subsection id="H1ADE2DF0ED0C4C6BA0E287FE716232EC"><enum>(c)</enum><header>Enforcement
provision</header><text>With respect to section 521 and subsections (a) and (b)
of this section, any law, regulation, provision, or action of any State that
applies or purports to apply to nonadmitted insurance sold to, solicited by, or
negotiated with an insured whose home State is another State shall be preempted
with respect to such application.</text>
</subsection><subsection id="H0B4A3982A72045B2A4492CF05547756B"><enum>(d)</enum><header>Workers’
compensation exception</header><text display-inline="yes-display-inline">This
section may not be construed to preempt any State law, rule, or regulation that
restricts the placement of workers’ compensation insurance or excess insurance
for self-funded workers’ compensation plans with a nonadmitted insurer.</text>
</subsection></section><section id="H5802B33AD9A84B828294827BD77D424E"><enum>523.</enum><header>Participation
in national producer database</header><text display-inline="no-display-inline">After the expiration of the 2-year period
beginning on the date of the enactment of this subtitle, a State may not
collect any fees relating to licensing of an individual or entity as a surplus
lines broker in the State unless the State has in effect at such time laws or
regulations that provide for participation by the State in the national
insurance producer database of the NAIC, or any other equivalent uniform
national database, for the licensure of surplus lines brokers and the renewal
of such licenses.</text>
</section><section id="HE405BDF23F82432EB575D0F0C2350719"><enum>524.</enum><header>Uniform
standards for surplus lines eligibility</header><text display-inline="no-display-inline">A State may not—</text>
<paragraph id="H4DEB944A6E0744C68868C6146F76D9F8"><enum>(1)</enum><text display-inline="yes-display-inline">impose eligibility requirements on, or
otherwise establish eligibility criteria for, nonadmitted insurers domiciled in
a United States jurisdiction, except in conformance with such requirements and
criteria in sections 5A(2) and 5C(2)(a) of the Non-Admitted Insurance Model
Act, unless the State has adopted nationwide uniform requirements, forms, and
procedures developed in accordance with section 521(b) of this subtitle that
include alternative nationwide uniform eligibility requirements; or</text>
</paragraph><paragraph id="H42B839B335DC4CC396FA4964609E8105"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit a surplus lines broker from
placing nonadmitted insurance with, or procuring nonadmitted insurance from, a
nonadmitted insurer domiciled outside the United States that is listed on the
Quarterly Listing of Alien Insurers maintained by the International Insurers
Department of the NAIC.</text>
</paragraph></section><section id="H3BD303751C514ABC9CBD588A7BA5373B"><enum>525.</enum><header>Streamlined
application for commercial purchasers</header><text display-inline="no-display-inline">A surplus lines broker seeking to procure or
place nonadmitted insurance in a State for an exempt commercial purchaser shall
not be required to satisfy any State requirement to make a due diligence search
to determine whether the full amount or type of insurance sought by such exempt
commercial purchaser can be obtained from admitted insurers if—</text>
<paragraph id="H37CCCCEC21DC4CFFB3C39327D034CA10"><enum>(1)</enum><text>the broker
procuring or placing the surplus lines insurance has disclosed to the exempt
commercial purchaser that such insurance may or may not be available from the
admitted market that may provide greater protection with more regulatory
oversight; and</text>
</paragraph><paragraph id="HCFDB9AB7CB8248C8A934584BB6E898B9"><enum>(2)</enum><text>the exempt
commercial purchaser has subsequently requested in writing the broker to
procure or place such insurance from a nonadmitted insurer.</text>
</paragraph></section><section display-inline="no-display-inline" id="H2B99396B7D2745AE947807584AB03D24" section-type="subsequent-section"><enum>526.</enum><header>GAO study of
nonadmitted insurance market</header>
<subsection id="H14C2878A4A7D461A90A75B4D1715F5BE"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study of the nonadmitted insurance market to determine the effect of
the enactment of this part on the size and market share of the nonadmitted
insurance market for providing coverage typically provided by the admitted
insurance market.</text>
</subsection><subsection id="H3EBE8E976B014A009E9147CA8288584B"><enum>(b)</enum><header>Contents</header><text>The
study shall determine and analyze—</text>
<paragraph id="HEDD7D20D6E1042B683F68C2168ABB841"><enum>(1)</enum><text>the change in the
size and market share of the nonadmitted insurance market and in the number of
insurance companies and insurance holding companies providing such business in
the 18-month period that begins upon the effective date of this
subtitle;</text>
</paragraph><paragraph id="HFB5A22EEF812462D8E6F5BA8749DDD2F"><enum>(2)</enum><text>the extent to
which insurance coverage typically provided by the admitted insurance market
has shifted to the nonadmitted insurance market;</text>
</paragraph><paragraph id="HF79266E641614897B116BDB1401A5842"><enum>(3)</enum><text>the consequences
of any change in the size and market share of the nonadmitted insurance market,
including differences in the price and availability of coverage available in
both the admitted and nonadmitted insurance markets;</text>
</paragraph><paragraph id="H23C48F8566974264BD617080EC8DD30D"><enum>(4)</enum><text>the extent to
which insurance companies and insurance holding companies that provide both
admitted and nonadmitted insurance have experienced shifts in the volume of
business between admitted and nonadmitted insurance; and</text>
</paragraph><paragraph id="H930ED3A3C76A4DCD9ECCE365A3BF8DDC"><enum>(5)</enum><text>the extent to
which there has been a change in the number of individuals who have nonadmitted
insurance policies, the type of coverage provided under such policies, and
whether such coverage is available in the admitted insurance market.</text>
</paragraph></subsection><subsection id="H7445A74225494589A7159F1E73677E37"><enum>(c)</enum><header>Consultation
with NAIC</header><text>In conducting the study under this section, the
Comptroller General shall consult with the NAIC.</text>
</subsection><subsection id="HF9D2A407692E4BB59C6BE3E98BA21E04"><enum>(d)</enum><header>Report</header><text>The
Comptroller General shall complete the study under this section and submit a
report to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives
regarding the findings of the study not later than 30 months after the
effective date of this subtitle.</text>
</subsection></section><section id="H57AC3EA4C37C43478929ED20FEE03654"><enum>527.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part, the following
definitions shall apply:</text>
<paragraph id="H55D5DC9D9BD040F18913FFCB1E7C220B"><enum>(1)</enum><header>Admitted
insurer</header><text>The term <term>admitted insurer</term> means, with
respect to a State, an insurer licensed to engage in the business of insurance
in such State.</text>
</paragraph><paragraph id="HF67A02FF962D4609A7C6FCDDB2F9B9EB"><enum>(2)</enum><header>Affiliate</header><text display-inline="yes-display-inline">The term <term>affiliate</term> means, with
respect to an insured, any entity that controls, is controlled by, or is under
common control with the insured.</text>
</paragraph><paragraph id="HE317F77D389642029F350B96F4BE5327"><enum>(3)</enum><header>Affiliated
group</header><text>The term <term>affiliated group</term> means any group of
entities that are all affiliated.</text>
</paragraph><paragraph id="H0AE84277F31A4314BF033D4A0748BD36"><enum>(4)</enum><header>Control</header><text>An
entity has <term>control</term> over another entity if—</text>
<subparagraph id="HAE3C667646AD4238BAB89CBEAD8F8BB2"><enum>(A)</enum><text>the entity
directly or indirectly or acting through 1 or more other persons owns,
controls, or has the power to vote 25 percent or more of any class of voting
securities of the other entity; or</text>
</subparagraph><subparagraph id="HF23607A9F3D64B52B5F565993829F592"><enum>(B)</enum><text>the entity
controls in any manner the election of a majority of the directors or trustees
of the other entity.</text>
</subparagraph></paragraph><paragraph id="HA4F21C1839A04478BDBF12CE671B0540"><enum>(5)</enum><header>Exempt
commercial purchaser</header><text display-inline="yes-display-inline">The term
<term>exempt commercial purchaser</term> means any person purchasing commercial
insurance that, at the time of placement, meets the following
requirements:</text>
<subparagraph id="H305FA9A3EC874CC8AE8CB8B405E04AEE"><enum>(A)</enum><text>The person employs
or retains a qualified risk manager to negotiate insurance coverage.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H99BD82720B1B47B1AA3E5847309B0C9B"><enum>(B)</enum><text>The person has
paid aggregate nationwide commercial property and casualty insurance premiums
in excess of $100,000 in the immediately preceding 12 months.</text>
</subparagraph><subparagraph id="HD707CF6B81E44B90BB10E9AC8716876C"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H04AF392F24844E828DB19DD4E95F0A6B"><enum>(i)</enum><text>The person meets at
least 1 of the following criteria:</text>
<subclause id="H0E634EC593524C9FB7233E93B43D6AF8" indent="up1"><enum>(I)</enum><text>The person possesses a net worth in
excess of $20,000,000, as such amount is adjusted pursuant to clause
(ii).</text>
</subclause><subclause id="HBEFD4186FB5B45DEA71A768CB0147D42" indent="up1"><enum>(II)</enum><text>The person generates annual revenues in
excess of $50,000,000, as such amount is adjusted pursuant to clause
(ii).</text>
</subclause><subclause id="HD8ADEB6FB37541798D07FBF6B8523BA7" indent="up1"><enum>(III)</enum><text>The person employs more than 500
full-time or full-time equivalent employees per individual insured or is a
member of an affiliated group employing more than 1,000 employees in the
aggregate.</text>
</subclause><subclause id="H201991D81D4A4BBF940175DDBECE2E50" indent="up1"><enum>(IV)</enum><text>The person is a not-for-profit
organization or public entity generating annual budgeted expenditures of at
least $30,000,000, as such amount is adjusted pursuant to clause (ii).</text>
</subclause><subclause id="HB33EDB6EFAD24C0A8BACC1B9181B8B8F" indent="up1"><enum>(V)</enum><text>The person is a municipality with a
population in excess of 50,000 persons.</text>
</subclause></clause><clause id="HF553FAD97A72467E86D3E15ADE3C3BC9" indent="up1"><enum>(ii)</enum><text>Effective on the fifth January 1
occurring after the date of the enactment of this subtitle and each fifth
January 1 occurring thereafter, the amounts in subclauses (I), (II), and (IV)
of clause (i) shall be adjusted to reflect the percentage change for such
5-year period in the Consumer Price Index for All Urban Consumers published by
the Bureau of Labor Statistics of the Department of Labor.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H6FDF2BF91D1E480B8F69D0AA47C9460C"><enum>(6)</enum><header>Home
State</header>
<subparagraph id="HCC5BAE075BC248FFA2F0AA31569BFCEC"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), the term <term>home State</term> means, with respect to an
insured—</text>
<clause id="H6885631116D846B2881BD5F05AC18B9B"><enum>(i)</enum><text>the
State in which an insured maintains its principal place of business or, in the
case of an individual, the individual’s principal residence; or</text>
</clause><clause id="HDE48CB90C41D41848589B6AE506326B2"><enum>(ii)</enum><text display-inline="yes-display-inline">if 100 percent of the insured risk is
located out of the State referred to in clause (i), the State to which the
greatest percentage of the insured’s taxable premium for that insurance
contract is allocated.</text>
</clause></subparagraph><subparagraph id="HE33D767D82FF4A18961E40DDE254A54B"><enum>(B)</enum><header>Affiliated
groups</header><text>If more than 1 insured from an affiliated group are named
insureds on a single nonadmitted insurance contract, the term <term>home
State</term> means the home State, as determined pursuant to subparagraph (A),
of the member of the affiliated group that has the largest percentage of
premium attributed to it under such insurance contract.</text>
</subparagraph></paragraph><paragraph id="H2B20250F17974FF5AD93AF7EBCD771F9"><enum>(7)</enum><header>Independently
procured insurance</header><text>The term <term>independently procured
insurance</term> means insurance procured directly by an insured from a
nonadmitted insurer.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HC7F8D9DB64C84FE19131A7DEA5E7590B"><enum>(8)</enum><header>NAIC</header><text>The
term <term>NAIC</term> means the National Association of Insurance
Commissioners or any successor entity.</text>
</paragraph><paragraph id="H297823C34B724EE885208EA3387A2A6A"><enum>(9)</enum><header>Nonadmitted
insurance</header><text>The term <term>nonadmitted insurance</term> means any
property and casualty insurance permitted to be placed directly or through a
surplus lines broker with a nonadmitted insurer eligible to accept such
insurance.</text>
</paragraph><paragraph id="H09D50FA0AD85494181C9019D25E4D233"><enum>(10)</enum><header>Non-admitted
insurance model act</header><text>The term <term>Non-Admitted Insurance Model
Act</term> means the provisions of the Non-Admitted Insurance Model Act, as
adopted by the NAIC on August 3, 1994, and amended on September 30, 1996,
December 6, 1997, October 2, 1999, and June 8, 2002.</text>
</paragraph><paragraph id="H2AB1CAB9333B417A9FF8B5BC747F8762"><enum>(11)</enum><header>Nonadmitted
insurer</header><text>The term <term>nonadmitted insurer</term>—</text>
<subparagraph id="H9354416FE06246B9AA1AA5CE3CCF4E98"><enum>(A)</enum><text>means, with
respect to a State, an insurer not licensed to engage in the business of
insurance in such State; but</text>
</subparagraph><subparagraph id="H72F1ADE1FE284D94A23077FDF6DD703E"><enum>(B)</enum><text>does not include a
risk retention group, as that term is defined in section 2(a)(4) of the
Liability Risk Retention Act of 1986 (15 U.S.C. 3901(a)(4)).</text>
</subparagraph></paragraph><paragraph id="H6F67513B0DBB4202B9AF23D6213A2277"><enum>(12)</enum><header>Premium
tax</header><text>The term <term>premium tax</term> means, with respect to
surplus lines or independently procured insurance coverage, any tax, fee,
assessment, or other charge imposed by a government entity directly or
indirectly based on any payment made as consideration for an insurance contract
for such insurance, including premium deposits, assessments, registration fees,
and any other compensation given in consideration for a contract of
insurance.</text>
</paragraph><paragraph id="H56028EB2F2A04501A03347EA14616928"><enum>(13)</enum><header>Qualified risk
manager</header><text display-inline="yes-display-inline">The term
<term>qualified risk manager</term> means, with respect to a policyholder of
commercial insurance, a person who meets all of the following
requirements:</text>
<subparagraph id="HC93C7BDF64FB4D76BDA4399704AA6181"><enum>(A)</enum><text>The person is an
employee of, or third-party consultant retained by, the commercial
policyholder.</text>
</subparagraph><subparagraph id="HE73053ADCE284EAEAE3F7E245D0396D6"><enum>(B)</enum><text>The person
provides skilled services in loss prevention, loss reduction, or risk and
insurance coverage analysis, and purchase of insurance.</text>
</subparagraph><subparagraph id="HB00205373B1C4E9CBEDEDFF62F400D4B"><enum>(C)</enum><text display-inline="yes-display-inline">The person—</text>
<clause id="H599C3070F2094DA98E5660EA69BB911E"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H44B3965FDF374EBF8F43DE6315B1F35C"><enum>(I)</enum><text>has a bachelor’s degree
or higher from an accredited college or university in risk management, business
administration, finance, economics, or any other field determined by a State
insurance commissioner or other State regulatory official or entity to
demonstrate minimum competence in risk management; and</text>
</subclause><subclause id="H55C69CFBB5BA432B980C37D352B9DCF2" indent="up1"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="H8B8AE6485E5B45398DE3C8A0208A54ED"><enum>(aa)</enum><text display-inline="yes-display-inline">has 3 years of experience in risk
financing, claims administration, loss prevention, risk and insurance analysis,
or purchasing commercial lines of insurance; or</text>
</item><item id="HB5B6C308E24F4B838FC33AA456F6B2E7" indent="up1"><enum>(bb)</enum><text>has—</text>
<subitem id="H844AD699E7C74FC6B22A47024283C11A"><enum>(AA)</enum><text>a designation as a Chartered Property
and Casualty Underwriter (in this subparagraph referred to as
<quote>CPCU</quote>) issued by the American Institute for CPCU/Insurance
Institute of America;</text>
</subitem><subitem id="HF6E6488C5D8E49DA9F316F0B229841AC"><enum>(BB)</enum><text>a designation as an Associate in Risk
Management (ARM) issued by the American Institute for CPCU/Insurance Institute
of America;</text>
</subitem><subitem id="HEF9E61F29E46434B9CCDB0158721A265"><enum>(CC)</enum><text>a designation as Certified Risk
Manager (CRM) issued by the National Alliance for Insurance Education &
Research;</text>
</subitem><subitem id="HE66D8C53DA494E1EA7518A609C7C57C1"><enum>(DD)</enum><text>a designation as a RIMS Fellow (RF)
issued by the Global Risk Management Institute; or</text>
</subitem><subitem id="H9AB0802EBD5E44D58A385B452DB3AD60"><enum>(EE)</enum><text>any other designation, certification,
or license determined by a State insurance commissioner or other State
insurance regulatory official or entity to demonstrate minimum competency in
risk management;</text>
</subitem></item></subclause></clause><clause id="H39777E15496840C2964E755275035490"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H40A656A642CF44F5A9BB5930919E6CD7"><enum>(I)</enum><text>has at least 7 years of
experience in risk financing, claims administration, loss prevention, risk and
insurance coverage analysis, or purchasing commercial lines of insurance;
and</text>
</subclause><subclause id="H5B3308202165483BB16CE8FCE7038C93" indent="up1"><enum>(II)</enum><text>has any 1 of the designations specified
in subitems (AA) through (EE) of clause (i)(II)(bb);</text>
</subclause></clause><clause id="H285299D11E604C9B9F5AD6DF508B7EFA"><enum>(iii)</enum><text>has at least 10
years of experience in risk financing, claims administration, loss prevention,
risk and insurance coverage analysis, or purchasing commercial lines of
insurance; or</text>
</clause><clause id="H1CBFA29A604340F29A1BD669ED6925A6"><enum>(iv)</enum><text display-inline="yes-display-inline">has a graduate degree from an accredited
college or university in risk management, business administration, finance,
economics, or any other field determined by a State insurance commissioner or
other State regulatory official or entity to demonstrate minimum competence in
risk management.</text>
</clause></subparagraph></paragraph><paragraph id="HFE36EEB415114584A3908B5D1662256F"><enum>(14)</enum><header>Reinsurance</header><text>The
term <term>reinsurance</term> means the assumption by an insurer of all or part
of a risk undertaken originally by another insurer.</text>
</paragraph><paragraph id="HBCD701DCB5D04DFD894A4BA79C935849"><enum>(15)</enum><header>Surplus lines
broker</header><text>The term <term>surplus lines broker</term> means an
individual, firm, or corporation which is licensed in a State to sell, solicit,
or negotiate insurance on properties, risks, or exposures located or to be
performed in a State with nonadmitted insurers.</text>
</paragraph><paragraph id="H7463065A1FAF47C580E2380951490F28"><enum>(16)</enum><header>State</header><text display-inline="yes-display-inline">The term <quote>State</quote> includes any
State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa.</text>
</paragraph></section></part><part id="H63BC9EACE6FD4D3EA8D317F9CBC0BE35"><enum>II</enum><header>Reinsurance</header>
<section id="H016464056C004E208219BEA92AC2891D" section-type="subsequent-section"><enum>531.</enum><header>Regulation of credit
for reinsurance and reinsurance agreements</header>
<subsection id="H79F7F31828AD49DDAF56FA2F395B4B23"><enum>(a)</enum><header>Credit for
reinsurance</header><text>If the State of domicile of a ceding insurer is an
NAIC-accredited State, or has financial solvency requirements substantially
similar to the requirements necessary for NAIC accreditation, and recognizes
credit for reinsurance for the insurer’s ceded risk, then no other State may
deny such credit for reinsurance.</text>
</subsection><subsection display-inline="no-display-inline" id="H7C7195380157431094ABA158BDDE6B62"><enum>(b)</enum><header>Additional
preemption of extraterritorial application of State law</header><text display-inline="yes-display-inline">In addition to the application of
subsection (a), all laws, regulations, provisions, or other actions of a State
that is not the domiciliary State of the ceding insurer, except those with
respect to taxes and assessments on insurance companies or insurance income,
are preempted to the extent that they—</text>
<paragraph id="HA1313A9619B449A98628EA8CC7D18E5D"><enum>(1)</enum><text display-inline="yes-display-inline">restrict or eliminate the rights of the
ceding insurer or the assuming insurer to resolve disputes pursuant to
contractual arbitration to the extent such contractual provision is not
inconsistent with the provisions of title 9, United States Code;</text>
</paragraph><paragraph id="HFA599286CD1749B0BEF6298A6DFD30B1"><enum>(2)</enum><text>require that a
certain State’s law shall govern the reinsurance contract, disputes arising
from the reinsurance contract, or requirements of the reinsurance
contract;</text>
</paragraph><paragraph id="H3427D0E9F633433AB7F8656735BC76AB"><enum>(3)</enum><text>attempt to enforce
a reinsurance contract on terms different than those set forth in the
reinsurance contract, to the extent that the terms are not inconsistent with
this part; or</text>
</paragraph><paragraph id="H8B47F64661634F4296C6C4B14D0E1310"><enum>(4)</enum><text>otherwise apply
the laws of the State to reinsurance agreements of ceding insurers not
domiciled in that State.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H831AEDA829FB4AA4A7B48509621A970A" section-type="subsequent-section"><enum>532.</enum><header>Regulation of
reinsurer solvency</header>
<subsection id="HDBE41D13B9E24847BEB2B0C2345D6B5B"><enum>(a)</enum><header>Domiciliary
state regulation</header><text display-inline="yes-display-inline">If the State
of domicile of a reinsurer is an NAIC-accredited State or has financial
solvency requirements substantially similar to the requirements necessary for
NAIC accreditation, such State shall be solely responsible for regulating the
financial solvency of the reinsurer.</text>
</subsection><subsection display-inline="no-display-inline" id="H4D66E6341AEC4182A30956388D6E39F8"><enum>(b)</enum><header>Nondomiciliary
states</header>
<paragraph id="H8691B076ABC346178259A1988C787D0C"><enum>(1)</enum><header>Limitation on
financial information requirements</header><text display-inline="yes-display-inline">If the State of domicile of a reinsurer is
an NAIC-accredited State or has financial solvency requirements substantially
similar to the requirements necessary for NAIC accreditation, no other State
may require the reinsurer to provide any additional financial information other
than the information the reinsurer is required to file with its domiciliary
State.</text>
</paragraph><paragraph id="H371D45F3A5E24E8AA74BB41245FED024"><enum>(2)</enum><header>Receipt of
information</header><text display-inline="yes-display-inline">No provision of
this section shall be construed as preventing or prohibiting a State that is
not the State of domicile of a reinsurer from receiving a copy of any financial
statement filed with its domiciliary State.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H61A8D2153AA649AEBC5198A22DCDBB20" section-type="subsequent-section"><enum>533.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part, the following
definitions shall apply:</text>
<paragraph id="H7A92DF54D29740DBB034DE8B4C997029"><enum>(1)</enum><header>Ceding
insurer</header><text>The term <term>ceding insurer</term> means an insurer
that purchases reinsurance.</text>
</paragraph><paragraph id="H4B0F3D8B9D2C41E48BBB0693ED0065AF"><enum>(2)</enum><header>Domiciliary
State</header><text>The terms <term>State of domicile</term> and
<term>domiciliary State</term> mean, with respect to an insurer or reinsurer,
the State in which the insurer or reinsurer is incorporated or entered through,
and licensed.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HE23117B7219A40798A8F6E09D5FE4617"><enum>(3)</enum><header>NAIC</header><text>The
term <term>NAIC</term> means the National Association of Insurance
Commissioners or any successor entity.</text>
</paragraph><paragraph id="HFC0D837A15664041818D15A9FD311B86"><enum>(4)</enum><header>Reinsurance</header><text>The
term <term>reinsurance</term> means the assumption by an insurer of all or part
of a risk undertaken originally by another insurer.</text>
</paragraph><paragraph id="H15A77BD88F014BACA533515BC49E94BD"><enum>(5)</enum><header>Reinsurer</header>
<subparagraph id="HC9079F6FC53D4F27B0DAD8B19EEE8785"><enum>(A)</enum><header>In
general</header><text>The term <term>reinsurer</term> means an insurer to the
extent that the insurer—</text>
<clause id="HD94EC557D29349D4BCC2409D23808063"><enum>(i)</enum><text>is
principally engaged in the business of reinsurance;</text>
</clause><clause id="HC7ED9912E53843CBB6A5E3ED8FD1DC82"><enum>(ii)</enum><text>does not conduct
significant amounts of direct insurance as a percentage of its net premiums;
and</text>
</clause><clause id="H01C511CBAF6246BB84C079929566C8EC"><enum>(iii)</enum><text>is
not engaged in an ongoing basis in the business of soliciting direct
insurance.</text>
</clause></subparagraph><subparagraph id="H99EFADAB6F6445EDA2A4DA088CF15C18"><enum>(B)</enum><header>Determination</header><text>A
determination of whether an insurer is a reinsurer shall be made under the laws
of the State of domicile in accordance with this paragraph.</text>
</subparagraph></paragraph><paragraph id="HCD47BEDA9628400DB5F35EF90AC36C1B"><enum>(6)</enum><header>State</header><text display-inline="yes-display-inline">The term <quote>State</quote> includes any
State of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa.</text>
</paragraph></section></part><part id="H42AFFB5A2FCD4DB6820FBE451C3EBE45"><enum>III</enum><header>Rule
of construction</header>
<section id="H2C8FE47CBE3D442A97D522DE46B9322D"><enum>541.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">Nothing in this
subtitle or the amendments made by this subtitle shall be construed to modify,
impair, or supersede the application of the antitrust laws. Any implied or
actual conflict between this subtitle and any amendments to this subtitle and
the antitrust laws shall be resolved in favor of the operation of the antitrust
laws.</text>
</section><section commented="no" display-inline="no-display-inline" id="H89E60704515644B39029EB7C942C81DA" section-type="subsequent-section"><enum>542.</enum><header>Severability</header><text display-inline="no-display-inline">If any section or subsection of this
subtitle, or any application of such provision to any person or circumstance,
is held to be unconstitutional, the remainder of this subtitle, and the
application of the provision to any other person or circumstance, shall not be
affected.</text>
</section></part></subtitle><enum>VI</enum><header>Improvements to
regulation of bank and savings association holding companies and depository
institutions</header>
<section id="H848C635D1DC145CAAB1FC1016FDA83CD"><enum>601.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Bank and Savings Association Holding Company and Depository
Institution Regulatory Improvements Act of 2010</quote>.</text>
</section><section id="H8BB2973B12C74CCE871B236E7ACCED49"><enum>602.</enum><header>Definition</header><text display-inline="no-display-inline">For purposes of this title, a company is a
<term>commercial firm</term> if the annual gross revenues derived by the
company and all of its affiliates from activities that are financial in nature
(as defined in section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.
1843(k))) and, if applicable, from the ownership or control of one or more
insured depository institutions, represent less than 15 percent of the
consolidated annual gross revenues of the company.</text>
</section><section id="H558EF40B054646E0AE18A4AE10629523"><enum>603.</enum><header>Moratorium and
study on treatment of credit card banks, industrial loan companies, and certain
other companies under the Bank Holding Company Act of 1956</header>
<subsection id="H84F182EE5B8F497AAEF8D3D34269C440"><enum>(a)</enum><header>Moratorium</header>
<paragraph id="HBDD9A00B95DE41D8A6F2933BD28E1EA2"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="H39A1377533E845389047415D1F1B8A3B"><enum>(A)</enum><text>the term
<term>credit card bank</term> means an institution described in section
2(c)(2)(F) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(c)(2)(F));</text>
</subparagraph><subparagraph id="H7AC4925839DE45768CEEA95E9585AEE7"><enum>(B)</enum><text>the term
<term>industrial bank</term> means an institution described in section
2(c)(2)(H) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(H));
and</text>
</subparagraph><subparagraph id="HDF5A651D566640DBB19B48813F47715B"><enum>(C)</enum><text>the term
<term>trust bank</term> means an institution described in section 2(c)(2)(D) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(D)).</text>
</subparagraph></paragraph><paragraph id="H3A209778124C483A964EBC2240F05246"><enum>(2)</enum><header>Moratorium on
provision of deposit insurance</header><text>The Corporation may not approve an
application for deposit insurance under section 5 of the Federal Deposit
Insurance Act (12 U.S.C. 1815) that is received after November 23, 2009, for an
industrial bank, a credit card bank, or a trust bank that is directly or
indirectly owned or controlled by a commercial firm.</text>
</paragraph><paragraph id="H4835CD2C89D945998B40157FC4AA2065"><enum>(3)</enum><header>Change in
control</header>
<subparagraph id="H5342EFBB48F540B2B3CBAA3BEF9B6FA2"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the appropriate
Federal banking agency shall disapprove a change in control, as provided in
section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)), of an
industrial bank, a credit card bank, or a trust bank if the change in control
would result in direct or indirect control of the industrial bank, credit card
bank, or trust bank by a commercial firm.</text>
</subparagraph><subparagraph id="HC3A0A82D19DF40BFB5F38A3B9444509A"><enum>(B)</enum><header>Exceptions</header><text>Subparagraph
(A) shall not apply to a change in control of an industrial bank, credit card
bank, or trust bank—</text>
<clause id="HF162495D03734435BB13BE14C45D2FC2"><enum>(i)</enum><text>that—</text>
<subclause id="H384347F9712A47F4AB02D024D5A93D92"><enum>(I)</enum><text display-inline="yes-display-inline">is in danger of default, as determined by
the appropriate Federal banking agency;</text>
</subclause><subclause id="H8B3F9FD120454229B99CBFF8F0C2A1E1"><enum>(II)</enum><text>results from the
merger or whole acquisition of a commercial firm that directly or indirectly
controls the industrial bank, credit card bank, or trust bank in a bona fide
merger with or acquisition by another commercial firm, as determined by the
appropriate Federal banking agency; or</text>
</subclause><subclause id="H568302213D80400791FF1447D2110A09"><enum>(III)</enum><text>results from an
acquisition of voting shares of a publicly traded company that controls an
industrial bank, credit card bank, or trust bank, if, after the acquisition,
the acquiring shareholder (or group of shareholders acting in concert) holds
less than 25 percent of any class of the voting shares of the company;
and</text>
</subclause></clause><clause id="H65F6EE33E5114007811A54813F03D0F8"><enum>(ii)</enum><text display-inline="yes-display-inline">that has obtained all regulatory approvals
otherwise required for such change of control under any applicable Federal or
State law, including section 7(j) of the Federal Deposit Insurance Act (12
U.S.C. 1817(j)).</text>
</clause></subparagraph></paragraph><paragraph id="H5C706F808FAD4AC8B5B0094ABABA71D5"><enum>(4)</enum><header>Sunset</header><text>This
subsection shall cease to have effect 3 years after the date of enactment of
this Act.</text>
</paragraph></subsection><subsection id="H54FC72D2832349D1A3439869A73E1201"><enum>(b)</enum><header>Government
Accountability Office study of exceptions under the Bank Holding Company Act of
1956</header>
<paragraph id="HC7151EB92CC24204A5FBEB69BD6EA48E"><enum>(1)</enum><header>Study
required</header><text>The Comptroller General of the United States shall carry
out a study to determine whether it is necessary, in order to strengthen the
safety and soundness of institutions or the stability of the financial system,
to eliminate the exceptions under section 2 of the Bank Holding Company Act of
1956 (12 U.S.C. 1841) for institutions described in—</text>
<subparagraph id="H920FD5EB1CEB4CAFB81A9B2C925E0739"><enum>(A)</enum><text>section 2(a)(5)(E)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(5)(E));</text>
</subparagraph><subparagraph id="HE558C687030542A3AB9877661C462C44"><enum>(B)</enum><text>section 2(a)(5)(F)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(5)(F));</text>
</subparagraph><subparagraph id="H12B25E245E49486C8C4C85266816D6C0"><enum>(C)</enum><text>section 2(c)(2)(D)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(D));</text>
</subparagraph><subparagraph id="HFFDE43E400FE4FCA8D27E36BBCC027CC"><enum>(D)</enum><text>section 2(c)(2)(F)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F));</text>
</subparagraph><subparagraph id="HC8B4C52E7DDF42E39639B48701E417E2"><enum>(E)</enum><text>section 2(c)(2)(H)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(H)); and</text>
</subparagraph><subparagraph id="HAB0AD8F2E21546C59A21E752C08D1C88"><enum>(F)</enum><text>section 2(c)(2)(B)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(B)).</text>
</subparagraph></paragraph><paragraph id="H3B108480FFB14BC6A4B53270AE872D7E"><enum>(2)</enum><header>Content of
study</header>
<subparagraph id="H1AAF7C17F0214304A696C430F9788085"><enum>(A)</enum><header>In
general</header><text>The study required under paragraph (1), with respect to
the institutions referenced in each of subparagraphs (A) through (E) of
paragraph (1), shall, to the extent feasible be based on information provided
to the Comptroller General by the appropriate Federal or State regulator, and
shall—</text>
<clause id="H25AB8114250C44F1BA35FDD91CF62100"><enum>(i)</enum><text>identify the types
and number of institutions excepted from section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841) under each of the subparagraphs described in
subparagraphs (A) through (E) of paragraph (1);</text>
</clause><clause id="HD716A79A58AC4E289E206ACCCC11FF49"><enum>(ii)</enum><text>generally
describe the size and geographic locations of the institutions described in
clause (i);</text>
</clause><clause id="H6CB7F2CA831B4E60B3F4F6252B2F4AE3"><enum>(iii)</enum><text>determine the
extent to which the institutions described in clause (i) are held by holding
companies that are commercial firms;</text>
</clause><clause id="H4210BA7B17014626B41A3033B214018F"><enum>(iv)</enum><text>determine whether
the institutions described in clause (i) have any affiliates that are
commercial firms;</text>
</clause><clause id="HD9E0B9C12EB043298E98DD36F34703B1"><enum>(v)</enum><text>identify the
Federal banking agency responsible for the supervision of the institutions
described in clause (i) on and after the transfer date;</text>
</clause><clause id="H723C9D24D7FF4314B73FE5534A880EFF"><enum>(vi)</enum><text>determine the
adequacy of the Federal bank regulatory framework applicable to each category
of institution described in clause (i), including any restrictions (including
limitations on affiliate transactions or cross-marketing) that apply to
transactions between an institution, the holding company of the institution,
and any other affiliate of the institution; and</text>
</clause><clause id="H14E63E08B27D4119A0B94F14C7CFCEAC"><enum>(vii)</enum><text>evaluate the
potential consequences of subjecting the institutions described in clause (i)
to the requirements of the Bank Holding Company Act of 1956, including with
respect to the availability and allocation of credit, the stability of the
financial system and the economy, the safe and sound operation of each category
of institution, and the impact on the types of activities in which such
institutions, and the holding companies of such institutions, may
engage.</text>
</clause></subparagraph><subparagraph id="HFC8D112519D742F7B22454E146AF7FAA"><enum>(B)</enum><header>Savings
associations</header><text>With respect to institutions described in paragraph
(1)(F), the study required under paragraph (1) shall—</text>
<clause id="H4A3DA2A30D0B4FF2BF90D36D952F7CFD"><enum>(i)</enum><text>determine the
adequacy of the Federal bank regulatory framework applicable to such
institutions, including any restrictions (including limitations on affiliate
transactions or cross-marketing) that apply to transactions between an
institution, the holding company of the institution, and any other affiliate of
the institution; and</text>
</clause><clause id="H61BB4451B4EF43FC92C4FCA9079CAFEE"><enum>(ii)</enum><text>evaluate the
potential consequences of subjecting the institutions described in paragraph
(1)(F) to the requirements of the Bank Holding Company Act of 1956, including
with respect to the availability and allocation of credit, the stability of the
financial system and the economy, the safe and sound operation of such
institutions, and the impact on the types of activities in which such
institutions, and the holding companies of such institutions, may
engage.</text>
</clause></subparagraph></paragraph><paragraph id="HDF210F16CFFD48808AE6697EEA724BAC"><enum>(3)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the study required under paragraph (1).</text>
</paragraph></subsection></section><section id="H5C1542F77390483BA9D233A6127A021A"><enum>604.</enum><header>Reports and
examinations of holding companies; regulation of functionally regulated
subsidiaries</header>
<subsection id="HD75E32AFF87049D48D4C14B8505CB484"><enum>(a)</enum><header>Reports by bank
holding companies</header><text>Sections 5(c)(1) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1844(c)(1)) is amended—</text>
<paragraph id="HE0CE4302DE02443FAF0AE378B02D659C"><enum>(1)</enum><text>by striking
subclause (A)(ii) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3D2175E34DBD4C21B7D8CA2D57E4F6B2" style="OLC">
<clause id="H201B9A28E3264777A9211933CF7A3F07"><enum>(ii)</enum><text>compliance by the
bank holding company or subsidiary with—</text>
<subclause id="H0BB88549D98F4682823E5CD79D2BA95E"><enum>(I)</enum><text>this Act;</text>
</subclause><subclause id="HC6FF0402F4BB49ECB6211FA6F6578C25"><enum>(II)</enum><text>Federal laws that
the Board has specific jurisdiction to enforce against the company or
subsidiary; and</text>
</subclause><subclause id="H5D17FA95C05F4DEDAEE584C20CDF305F"><enum>(III)</enum><text>other than in
the case of an insured depository institution or functionally regulated
subsidiary, any other applicable provision of Federal
law.</text>
</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA84FCFDBBCEA419B8AA462EB573489F0"><enum>(2)</enum><text>by striking
subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC7C94BAC87C246A5AF819DF398A13EB7" style="OLC">
<subparagraph id="HCB36F445A45945168474F3CABC0F5B5F"><enum>(B)</enum><header>Use of existing
reports and other supervisory information</header><text>The Board shall, to the
fullest extent possible, use—</text>
<clause id="HEF604FA08E7C42C5B0751FA969C0A04D"><enum>(i)</enum><text>reports and other
supervisory information that the bank holding company or any subsidiary thereof
has been required to provide to other Federal or State regulatory
agencies;</text>
</clause><clause id="HF73AF3643C7B4486A7A486B809952D15"><enum>(ii)</enum><text>externally
audited financial statements of the bank holding company or subsidiary;</text>
</clause><clause id="H622248958DCE4787B9E32987768C36C9"><enum>(iii)</enum><text>information
otherwise available from Federal or State regulatory agencies; and</text>
</clause><clause id="H87DBDDF6D06944EB9DF648AA366CA8E3"><enum>(iv)</enum><text>information that
is otherwise required to be reported
publicly.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H24041CD428864D6DB6CDD9118B71751A"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF13ED81BAA094A0BA7317DD6C4D6F2AD" style="OLC">
<subparagraph id="HE4AE5A3CBFBF4AD79096BFE12A7AFAFD"><enum>(C)</enum><header>Availability</header><text>Upon
the request of the Board, the bank holding company or a subsidiary of the bank
holding company shall promptly provide to the Board any information described
in clauses (i) through (iii) of subparagraph
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H15461C1F4AF8451BB2408ADE923BF7AA"><enum>(b)</enum><header>Examinations of
bank holding companies</header><text>Section 5(c)(2) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(c)(2)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HF6D3A9227F444132ABA29B01BE68663E" style="OLC">
<paragraph id="H7761C6881C74425881ED0DCE08B099D6"><enum>(2)</enum><header>Examinations</header>
<subparagraph id="HE7ABEA6BCF2F4981A5169E49932C4F04"><enum>(A)</enum><header>In
general</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, the Board may make examinations of a bank holding
company and each subsidiary of a bank holding company in order to—</text>
<clause id="H5AD3FFC50C4542ED97F70271F58B37CE"><enum>(i)</enum><text>inform the Board
of—</text>
<subclause id="H5D7E2B393FC04B17845C9736F613453F"><enum>(I)</enum><text>the nature of the
operations and financial condition of the bank holding company and the
subsidiary;</text>
</subclause><subclause id="HC07F0044835945998DB1A239FA4AE814"><enum>(II)</enum><text>the financial,
operational, and other risks within the bank holding company system that may
pose a threat to—</text>
<item id="H2BE8575F2DD64FE49FF0F626D3C7A069"><enum>(aa)</enum><text>the
safety and soundness of the bank holding company or of any depository
institution subsidiary of the bank holding company; or</text>
</item><item id="H873B8FB06CB546A0A88DDFDFBE15BEAB"><enum>(bb)</enum><text>the
stability of the financial system of the United States; and</text>
</item></subclause><subclause id="H6137D40C086C466E9535FF57B76D374B"><enum>(III)</enum><text>the systems of
the bank holding company for monitoring and controlling the risks described in
subclause (II); and</text>
</subclause></clause><clause id="H485CBA56580540A5961FF86A04DAB473"><enum>(ii)</enum><text display-inline="yes-display-inline">monitor the compliance of the bank holding
company and the subsidiary with—</text>
<subclause id="HF1CCC59ED4AD4E269A17B9D81CDFD5CC"><enum>(I)</enum><text>this Act;</text>
</subclause><subclause id="HDF4BCE2DD6134421AFB8789B694B1009"><enum>(II)</enum><text>Federal laws that
the Board has specific jurisdiction to enforce against the company or
subsidiary; and</text>
</subclause><subclause id="HFB5A857B9A0F4A26AD5BA1215FFC1A8D"><enum>(III)</enum><text>other than in
the case of an insured depository institution or functionally regulated
subsidiary, any other applicable provisions of Federal law.</text>
</subclause></clause></subparagraph><subparagraph id="H3504032E6DE248BAAD3542C22123FFF4"><enum>(B)</enum><header>Use of reports
to reduce examinations</header><text>For purposes of this paragraph, the Board
shall, to the fullest extent possible, rely on—</text>
<clause id="H4C1E6E10BB4A4296B0B27897DCAE69ED"><enum>(i)</enum><text>examination
reports made by other Federal or State regulatory agencies relating to a bank
holding company and any subsidiary of a bank holding company; and</text>
</clause><clause id="HA5C8F5AE40D44DD687D8E809ED15981F"><enum>(ii)</enum><text>the reports and
other information required under paragraph (1).</text>
</clause></subparagraph><subparagraph id="H94AD337F0C0E471488EC1F13C2A0A0FA"><enum>(C)</enum><header>Coordination
with other regulators</header><text>The Board shall—</text>
<clause id="H083CFC1B07BF4E8AA1FEE4F860C6B4E6"><enum>(i)</enum><text>provide reasonable
notice to, and consult with, the appropriate Federal banking agency, the
Securities and Exchange Commission, the Commodity Futures Trading Commission,
or State regulatory agency, as appropriate, for a subsidiary that is a
depository institution or a functionally regulated subsidiary of a bank holding
company before commencing an examination of the subsidiary under this section;
and</text>
</clause><clause id="HC373E3C412FC4DB0BFB6273B831F2FCE"><enum>(ii)</enum><text>to the fullest
extent possible, avoid duplication of examination activities, reporting
requirements, and requests for
information.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3C9C339CCEA44373A04F2CC8CF421217"><enum>(c)</enum><header>Authority To
regulate functionally regulated subsidiaries of bank holding
companies</header><text>The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.) is amended—</text>
<paragraph id="H5B3598D1AA6C4AF18284510DEE67EAA9"><enum>(1)</enum><text display-inline="yes-display-inline">in section 5(c)(5)(B) (12 U.S.C.
1844(c)(5)(B)), by striking clause (v) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6CB18030F3084C07A9AFD3CE5FF12664" style="OLC">
<clause id="H98ED4B048C3B47788B7C45D43ADAF934"><enum>(v)</enum><text display-inline="yes-display-inline">an entity that is subject to regulation by,
or registration with, the Commodity Futures Trading Commission, with respect to
activities conducted as a futures commission merchant, commodity trading
adviser, commodity pool, commodity pool operator, swap execution facility, swap
data repository, swap dealer, major swap participant, and activities that are
incidental to such commodities and swaps
activities.</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H747766EF550C48C3AD6E1D7F239CB60D"><enum>(2)</enum><text>by striking
section 10A (12 U.S.C. 1848a).</text>
</paragraph></subsection><subsection id="HA39DDA158BBC4441B7EE9121348ED1C9"><enum>(d)</enum><header>Acquisitions of
banks</header><text>Section 3(c) of the Bank Holding Company Act of 1956 (12
U.S.C. 1842(c)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H95C29DF42ADF46AAB495CBE72B03413B" style="OLC">
<paragraph id="HCEA48B3B1BBD4A528F27A441C02CBB42"><enum>(7)</enum><header>Financial
stability</header><text>In every case, the Board shall take into consideration
the extent to which a proposed acquisition, merger, or consolidation would
result in greater or more concentrated risks to the stability of the United
States banking or financial
system.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H63C27810567F4598A7BCAC2CE3BFEB7C"><enum>(e)</enum><header>Acquisitions of
nonbanks</header>
<paragraph id="H5BFA23044E0044A7BD524F91B8F86A7E"><enum>(1)</enum><header>Notice
procedures</header><text>Section 4(j)(2)(A) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(j)(2)(A)) is amended by striking <quote>or unsound banking
practices</quote> and inserting <quote>unsound banking practices, or risk to
the stability of the United States banking or financial system</quote>.</text>
</paragraph><paragraph id="H2D6EBC3343C246BDA1A550AF59015983"><enum>(2)</enum><header>Activities that
are financial in nature</header><text>Section 4(k)(6)(B) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H1C97CA092F664713B8A5DCA10914306E" style="OLC">
<subparagraph id="H01C69E49D403467A8A01DDC3F0D6D3BB"><enum>(B)</enum><header>Approval not
required for certain financial activities</header>
<clause id="H2088119447E84A9887543CD3F3A87923"><enum>(i)</enum><header>In
general</header><text>Except as provided in subsection (j) with regard to the
acquisition of a savings association and clause (ii), a financial holding
company may commence any activity, or acquire any company, pursuant to
paragraph (4) or any regulation prescribed or order issued under paragraph (5),
without prior approval of the Board.</text>
</clause><clause id="H93E0B3FDEACE49D7AEF8B121267A34FF"><enum>(ii)</enum><header>Exception</header><text>A
financial holding company may not acquire a company, without the prior approval
of the Board, in a transaction in which the total consolidated assets to be
acquired by the financial holding company exceed $10,000,000,000.</text>
</clause><clause id="H0A9D3F1D48034823A07CE0BA2F7C0639"><enum>(iii)</enum><header>Hart-Scott-Rodino
filing requirement</header><text>Solely for purposes of section 7A(c)(8) of the
Clayton Act (15 U.S.C. 18a(c)(8)), the transactions subject to the requirements
of this paragraph shall be treated as if the approval of the Board is not
required.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC43984425FA34F27BF7BEED713B77F0A"><enum>(f)</enum><header>Bank merger act
transactions</header><text>Section 18(c)(5) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(c)(5)) is amended, in the matter immediately following
subparagraph (B), by striking <quote>and the convenience and needs of the
community to be served</quote> and inserting <quote>the convenience and needs
of the community to be served, and the risk to the stability of the United
States banking or financial system</quote>.</text>
</subsection><subsection id="H13D230673D454EDDBEF51E64A3C6E5A0"><enum>(g)</enum><header>Reports by
savings and loan holding companies</header><text>Section 10(b)(2) of the Home
Owners' Loan Act (12 U.S.C. 1467a(b)(2) is amended—</text>
<paragraph id="HC977AC4313D64B8A836DB9DA6DEED741"><enum>(1)</enum><text>by striking
<quote>Each savings</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H27D9BA16B2344160B7676946E5AC0837" style="OLC">
<subparagraph id="H759E30096F114E2093D52921BECD8E92"><enum>(A)</enum><header>In
general</header><text>Each savings</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H841046897D11460581A284559A5C449D"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H475ADE1F640E4542AAE7776C45F65E76" style="OLC">
<subparagraph id="HA7147F339C6D418F94A0B84808EEBF79"><enum>(B)</enum><header>Use of existing
reports and other supervisory information</header><text>The Board shall, to the
fullest extent possible, use—</text>
<clause id="H5B0EFD226B484DA0A1CB99BA7623553C"><enum>(i)</enum><text>reports and other
supervisory information that the savings and loan holding company or any
subsidiary thereof has been required to provide to other Federal or State
regulatory agencies;</text>
</clause><clause id="H10282E41A7C7478991E93EF1B6605ADE"><enum>(ii)</enum><text>externally
audited financial statements of the savings and loan holding company or
subsidiary;</text>
</clause><clause id="HD61082C4B4D543B0965EEE66ABB9ADAC"><enum>(iii)</enum><text>information that
is otherwise available from Federal or State regulatory agencies; and</text>
</clause><clause id="H36E25FBF244D4B36AB9421571141B65A"><enum>(iv)</enum><text>information that
is otherwise required to be reported publicly.</text>
</clause></subparagraph><subparagraph id="HD4AEDE9DB00446F98801DB37F727AFBB"><enum>(C)</enum><header>Availability</header><text>Upon
the request of the Board, a savings and loan holding company or a subsidiary of
a savings and loan holding company shall promptly provide to the Board any
information described in clauses (i) through (iii) of subparagraph
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB6B6B8B49C61479D84B199535AFBF56D"><enum>(h)</enum><header>Examination of
savings and loan holding companies</header>
<paragraph id="HAB68BB5BAB7647B8A8C7C60E1A20AEE1"><enum>(1)</enum><header>Definitions</header><text>Section
2 of the Home Owners' Loan Act (12 U.S.C. 1462) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HAB6DCEEAB98B4EB0A6579EEAC210C23F" style="OLC">
<paragraph id="HA0FF213CEC7D49B7AFEE78444A876AD9"><enum>(10)</enum><header>Appropriate
Federal banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the same meaning as in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="HE2635327F1A945FEA6F29F4B09BF9140"><enum>(11)</enum><header>Functionally
regulated subsidiary</header><text>The term <term>functionally regulated
subsidiary</term> 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)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9F76FD1A7F144E51BD1CE33ED4952A68"><enum>(2)</enum><header>Examination</header><text>Section
10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)) is amended by striking
paragraph (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7CA8F64C75CD41C39E96B9E382B73DA1" style="OLC">
<paragraph id="H82C04DE754574228BB2A20A9E0BB53BB"><enum>(4)</enum><header>Examinations</header>
<subparagraph id="H49F196166B834CB1BE6334D274CB688F"><enum>(A)</enum><header>In
general</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, the Board may make examinations of a savings and loan
holding company and each subsidiary of a savings and loan holding company
system, in order to—</text>
<clause id="H051D9BC54EE84C77ABC6339FEE19ACFC"><enum>(i)</enum><text>inform the Board
of—</text>
<subclause id="H4910B3753A56468581726B85D07CAD18"><enum>(I)</enum><text>the nature of the
operations and financial condition of the savings and loan holding company and
the subsidiary;</text>
</subclause><subclause id="HA2608B9950A24E159BAD918D4D23A881"><enum>(II)</enum><text>the financial,
operational, and other risks within the savings and loan holding company system
that may pose a threat to—</text>
<item id="HDE8018008247423F90CEB74290D785F8"><enum>(aa)</enum><text>the
safety and soundness of the savings and loan holding company or of any
depository institution subsidiary of the savings and loan holding company;
or</text>
</item><item id="H378BD78FDDD746C685782C17135AC835"><enum>(bb)</enum><text>the
stability of the financial system of the United States; and</text>
</item></subclause><subclause id="H154220F9AC424BF582F82F0DB7E61335"><enum>(III)</enum><text>the systems of
the savings and loan holding company for monitoring and controlling the risks
described in subclause (II); and</text>
</subclause></clause><clause id="H3F97799C54DC49C581B94A4DB664ABFF"><enum>(ii)</enum><text display-inline="yes-display-inline">monitor the compliance of the savings and
loan holding company and the subsidiary with—</text>
<subclause id="H22285865222F4E318739461D27535904"><enum>(I)</enum><text>this Act;</text>
</subclause><subclause id="H2B0FC842BCC946C792E5FC2C701EEC03"><enum>(II)</enum><text>Federal laws that
the Board has specific jurisdiction to enforce against the company or
subsidiary; and</text>
</subclause><subclause id="H1B9F1556AC4347C38D7C45AFE670285A"><enum>(III)</enum><text>other than in
the case of an insured depository institution or functionally regulated
subsidiary, any other applicable provisions of Federal law.</text>
</subclause></clause></subparagraph><subparagraph id="HFA465F76D0464D5685D37FCED8B5FE8B"><enum>(B)</enum><header>Use of reports
to reduce examinations</header><text>For purposes of this subsection, the Board
shall, to the fullest extent possible, rely on—</text>
<clause id="H46A83058D24147609EC1CBBF26CA5A27"><enum>(i)</enum><text>the examination
reports made by other Federal or State regulatory agencies relating to a
savings and loan holding company and any subsidiary; and</text>
</clause><clause id="H593593A14EFD46A6AFAA65DA8AEB9036"><enum>(ii)</enum><text>the reports and
other information required under paragraph (2).</text>
</clause></subparagraph><subparagraph id="H9E87730FC12846EFB4C9C0E78C31AE22"><enum>(C)</enum><header>Coordination
with other regulators</header><text>The Board shall—</text>
<clause id="H156FB2E241CD465AA8DB1DD6B7524A92"><enum>(i)</enum><text>provide reasonable
notice to, and consult with, the appropriate Federal banking agency, the
Securities and Exchange Commission, the Commodity Futures Trading Commission,
or State regulatory agency, as appropriate, for a subsidiary that is a
depository institution or a functionally regulated subsidiary of a savings and
loan holding company before commencing an examination of the subsidiary under
this section; and</text>
</clause><clause id="HCECFC5ECABE74FDCBF59066436832A39"><enum>(ii)</enum><text>to the fullest
extent possible, avoid duplication of examination activities, reporting
requirements, and requests for
information.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3E7DAB1977124C7988BA5D4894A74D54"><enum>(i)</enum><header>Definition of
the term <quote>savings and loan holding company</quote></header><text>Section
10(a)(1)(D)(ii) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)(1)(D)(ii)) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H27EA8AF9775B49F893E88F5FAE50361F" style="OLC">
<clause id="HD571716C77A44E60846FFB713869D2C7"><enum>(ii)</enum><header>Exclusion</header><text>The
term <term>savings and loan holding company</term> does not include—</text>
<subclause id="HDEED58270F41480CAA6FAAD524E7601F"><enum>(I)</enum><text>a bank holding
company that is registered under, and subject to, the Bank Holding Company Act
of 1956 (12 U.S.C. 1841 et seq.), or to any company directly or indirectly
controlled by such company (other than a savings association);</text>
</subclause><subclause id="HAE623570E73F45D6A419F4C5C1569C9A"><enum>(II)</enum><text>a company that
controls a savings association that functions solely in a trust or fiduciary
capacity as described in section 2(c)(2)(D) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(c)(2)(D)); or</text>
</subclause><subclause id="H0D908872D7EB499894435147A37F9470"><enum>(III)</enum><text display-inline="yes-display-inline">a company described in subsection (c)(9)(C)
solely by virtue of such company’s control of an intermediate holding company
established pursuant to section
10A.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC89F3672B7EB418698EFBE627C3EA961"><enum>(j)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="H3226196DD78E4E0CA1F9016A6241A9CE"><enum>605.</enum><header>Assuring
consistent oversight of permissible activities of depository institution
subsidiaries of holding companies</header>
<subsection id="HABC792F1FA964D819F711BAAB55564F6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended by inserting after section 25
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H576E168AB29D4D7C837FE1C19F32EA8F" style="OLC">
<section id="HCF39C410C69F4A96B0FB4FBE9EF4ED46"><enum>26.</enum><header>Assuring
consistent oversight of subsidiaries of holding companies</header>
<subsection id="H60B65CF146B5405FB656BBFAF3BE3D86"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section:</text>
<paragraph id="H1A3A53A3DB30486A8A0C0951F81679C8"><enum>(1)</enum><header>Board</header><text display-inline="yes-display-inline">The term <quote>Board</quote> means the
Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph id="H5CEBB8D8384C4C3FBAB90D2C01FD2932"><enum>(2)</enum><header>Functionally
regulated subsidiary</header><text>The term <quote>functionally regulated
subsidiary</quote> has the same meaning as in section 5(c)(5) of the Bank
Holding Company Act.</text>
</paragraph><paragraph id="H3B1BE9C581674B819E94A791E76FBDC4"><enum>(3)</enum><header>Lead insured
depository institution</header><text>The term <quote>lead insured depository
institution</quote> has the same meaning as in section 2(o)(8) of the Bank
Holding Company Act.</text>
</paragraph></subsection><subsection id="H4CED73FC047A44FEBD1CE6F8A13DF713"><enum>(b)</enum><header>Examination
requirements</header><text display-inline="yes-display-inline">Subject to
subtitle B of the Consumer Financial Protection Act of 2010, the Board shall
examine the activities of a nondepository institution subsidiary (other than a
functionally regulated subsidiary or a subsidiary of a depository institution)
of a depository institution holding company that are permissible for the
insured depository institution subsidiaries of the depository institution
holding company in the same manner, subject to the same standards, and with the
same frequency as would be required if such activities were conducted in the
lead insured depository institution of the depository institution holding
company.</text>
</subsection><subsection id="H6CA8562AC97D4BDC8DEE52EF8D12B14D"><enum>(c)</enum><header>State
coordination</header>
<paragraph id="HF847483AFC7A4A258F5038C67F491E63"><enum>(1)</enum><header>Consultation and
coordination</header><text display-inline="yes-display-inline">If a
nondepository institution subsidiary is supervised by a State bank supervisor
or other State regulatory authority, the Board, in conducting the examinations
required in subsection (b), shall consult and coordinate with such State
regulator.</text>
</paragraph><paragraph id="H8B354C2AB3724D4CA5EE417287892F11"><enum>(2)</enum><header>Alternating
examinations permitted</header><text display-inline="yes-display-inline">The
examinations required under subsection (b) may be conducted in joint or
alternating manner with a State regulator, if the Board determines that an
examination of a nondepository institution subsidiary conducted by the State
carries out the purposes of this section.</text>
</paragraph></subsection><subsection id="HBA465B6F1A11404EB8AEE1C7D9CB7090"><enum>(d)</enum><header>Appropriate
Federal banking agency backup examination authority</header>
<paragraph id="H2A2E6059615C43F0A552E6AFCC5128EA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In the event that the
Board does not conduct examinations required under subsection (b) in the same
manner, subject to the same standards, and with the same frequency as would be
required if such activities were conducted by the lead insured depository
institution subsidiary of the depository institution holding company, the
appropriate Federal banking agency for the lead insured depository institution
may recommend in writing (which shall include a written explanation of the
concerns giving rise to the recommendation) that the Board perform the
examination required under subsection (b).</text>
</paragraph><paragraph id="HFF6AC3AE800F4692BFF3B6181D8F67A3"><enum>(2)</enum><header>Examination by
an appropriate Federal banking agency</header><text display-inline="yes-display-inline">If the Board does not, before the end of
the 60-day period beginning on the date on which the Board receives a
recommendation under paragraph (1), begin an examination as required under
subsection (b) or provide a written explanation or plan to the appropriate
Federal banking agency making such recommendation responding to the concerns
raised by the appropriate Federal banking agency for the lead insured
depository institution, the appropriate Federal banking agency for the lead
insured depository institution may, subject to the Consumer Financial
Protection Act of 2010, examine the activities that are permissible for a
depository institution subsidiary conducted by such nondepository institution
subsidiary (other than a functionally regulated subsidiary or a subsidiary of a
depository institution) of the depository institution holding company as if the
nondepository institution subsidiary were an insured depository institution for
which the appropriate Federal banking agency of the lead insured depository
institution was the appropriate Federal banking agency, to determine whether
the activities—</text>
<subparagraph id="H4FDA89A100544E749118B3D31991988D"><enum>(A)</enum><text>pose a material
threat to the safety and soundness of any insured depository institution
subsidiary of the depository institution holding company;</text>
</subparagraph><subparagraph id="H2A7BE73CD222445FA734E595B334A565"><enum>(B)</enum><text>are conducted in
accordance with applicable Federal law; and</text>
</subparagraph><subparagraph id="H068DA7B65B27475885819C7CD20045E2"><enum>(C)</enum><text>are subject to
appropriate systems for monitoring and controlling the financial, operating,
and other material risks of the activities that may pose a material threat to
the safety and soundness of the insured depository institution subsidiaries of
the holding company.</text>
</subparagraph></paragraph><paragraph id="H4BB73C6FC6A74778BC0E0DA7A3D078D3"><enum>(3)</enum><header>Agency
coordination with the Board</header><text display-inline="yes-display-inline">An appropriate Federal banking agency that
conducts an examination pursuant to paragraph (2) shall coordinate examination
of the activities of nondepository institution subsidiaries described in
subsection (b) with the Board in a manner that—</text>
<subparagraph id="H647B4702AB0D442CAD9281AF4F52D4EC"><enum>(A)</enum><text>avoids
duplication;</text>
</subparagraph><subparagraph id="HCB57CE1B4EE0445F9B4D25D1E5C9BF92"><enum>(B)</enum><text>shares information
relevant to the supervision of the depository institution holding
company;</text>
</subparagraph><subparagraph id="H712E4BE8F0AB4799AE5EB00DF0AF8FA3"><enum>(C)</enum><text>achieves the
objectives of subsection (b); and</text>
</subparagraph><subparagraph id="H3EDB4575FF5246888C065034AF62A01C"><enum>(D)</enum><text>ensures that the
depository institution holding company and the subsidiaries of the depository
institution holding company are not subject to conflicting supervisory demands
by such agency and the Board.</text>
</subparagraph></paragraph><paragraph id="H228C283573C64CD780657705AC82C6DB"><enum>(4)</enum><header>Fee permitted
for examination costs</header><text display-inline="yes-display-inline">An
appropriate Federal banking agency that conducts an examination or enforcement
action pursuant to this section may collect an assessment, fee, or such other
charge from the subsidiary as the appropriate Federal banking agency determines
necessary or appropriate to carry out the responsibilities of the appropriate
Federal banking agency in connection with such examination.</text>
</paragraph></subsection><subsection id="H2AD232F9944646DBA3762F3AC484FBDE"><enum>(e)</enum><header>Referrals for
Enforcement by Appropriate Federal Banking Agency</header>
<paragraph id="H22E273D8FD1A411085AC8DC242CFD9E7"><enum>(1)</enum><header>Recommendation
of enforcement action</header><text display-inline="yes-display-inline">The
appropriate Federal banking agency for the lead insured depository institution,
based upon its examination of a nondepository institution subsidiary conducted
pursuant to subsection (d), or other relevant information, may submit to the
Board, in writing, a recommendation that the Board take enforcement action
against such nondepository institution subsidiary, together with an explanation
of the concerns giving rise to the recommendation, if the appropriate Federal
banking agency determines (by a vote of its members, if applicable) that the
activities of the nondepository institution subsidiary pose a material threat
to the safety and soundness of any insured depository institution subsidiary of
the depository institution holding company.</text>
</paragraph><paragraph id="HFDE9BA9A09784B339DCCFAA89A2480D1"><enum>(2)</enum><header>Back-up
authority of the appropriate Federal banking agency</header><text display-inline="yes-display-inline">If, within the 60-day period beginning on
the date on which the Board receives a recommendation under paragraph (1), the
Board does not take enforcement action against the nondepository institution
subsidiary or provide a plan for supervisory or enforcement action that is
acceptable to the appropriate Federal banking agency that made the
recommendation pursuant to paragraph (1), such agency may take the recommended
enforcement action against the nondepository institution subsidiary, in the
same manner as if the nondepository institution subsidiary were an insured
depository institution for which the agency was the appropriate Federal banking
agency.</text>
</paragraph></subsection><subsection id="H3C33CC68E61B4D60BCA13A467E111BF2"><enum>(f)</enum><header>Coordination
among appropriate Federal banking agencies</header><text>Each Federal banking
agency, prior to or when exercising authority under subsection (d) or (e)
shall—</text>
<paragraph id="H2AC5D7841BFE4A80960E8AA96D2F80A5"><enum>(1)</enum><text>provide reasonable
notice to, and consult with, the appropriate Federal banking agency or State
bank supervisor (or other State regulatory agency) of the nondepository
institution subsidiary of a depository institution holding company that is
described in subsection (d) before commencing any examination of the
subsidiary;</text>
</paragraph><paragraph id="H796FE96BF4FB4EE297A4EFBCC370E80E"><enum>(2)</enum><text>to the fullest
extent possible—</text>
<subparagraph id="HB1DBEF3878A34BEA8E5F1F7434152FE2"><enum>(A)</enum><text>rely on the
examinations, inspections, and reports of the appropriate Federal banking
agency or the State bank supervisor (or other State regulatory agency) of the
subsidiary;</text>
</subparagraph><subparagraph id="H760A1F1160F74655ACBE8B035DA47AD8"><enum>(B)</enum><text>avoid duplication
of examination activities, reporting requirements, and requests for
information; and</text>
</subparagraph><subparagraph id="H9FE5D4AF5E06428D9E5581F630EA9D9B"><enum>(C)</enum><text>ensure that the
depository institution holding company and the subsidiaries of the depository
institution holding company are not subject to conflicting supervisory demands
by the appropriate Federal banking agencies.</text>
</subparagraph></paragraph></subsection><subsection id="H1D3FE3B7085747DC8F23CA9C2B2D5011"><enum>(g)</enum><header>Rule of
construction</header><text>No provision of this section shall be construed as
limiting any authority of the Board, the Corporation, or the Comptroller of the
Currency under any other provision of
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7F93B0AB07144C58B3524084EDD1B927"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall take effect on the transfer date.</text>
</subsection></section><section id="HA05FB1ACEC6F43B2BAE6D64DDBF70C91"><enum>606.</enum><header>Requirements
for financial holding companies to remain well capitalized and well
managed</header>
<subsection id="H50D809CBB9C34206AA6B7233FD9EF29A"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 4(l)(1) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(l)(1)) is amended—</text>
<paragraph id="HBB2067A6CBF34438981FE89EEE965975"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H8B6E8F91258B426CBAD30DDBCABCFA5C"><enum>(2)</enum><text>by redesignating
subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="H72AE279FD83D449BBDB7B091A339B7A2"><enum>(3)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="H6881DF418C174DC0A95D0A9EDAA5A08E" style="OLC">
<subparagraph id="H9BA3A78DB714400FB2D1422D46BBB121"><enum>(C)</enum><text>the bank holding
company is well capitalized and well managed;
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC9F46D4A6F1C43CBB1EE226A34433D95"><enum>(4)</enum><text>in subparagraph
(D)(ii), as so redesignated, by striking <quote>subparagraphs (A) and
(B)</quote> and inserting <quote>subparagraphs (A), (B), and
(C)</quote>.</text>
</paragraph></subsection><subsection id="H324B9A4848C84DBC93827F2D3E822FF3"><enum>(b)</enum><header>Home Owners’
Loan Act amendment</header><text display-inline="yes-display-inline">Section
10(c)(2) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H489D9BB54FB742CD8AB471285CF03EA8" style="OLC">
<subparagraph id="H44FF401387764752A84CA1C8F9C9ABE3"><enum>(H)</enum><text display-inline="yes-display-inline">Any activity that is permissible for a
financial holding company (as such term is defined under section 2(p) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1841(p)) to conduct under section
4(k) of the Bank Holding Company Act of 1956 if—</text>
<clause id="H5D8E2DF2E77E4A4B9535FC1C8A41D658"><enum>(i)</enum><text>the savings and
loan holding company meets all of the criteria to qualify as a financial
holding company, and complies with all of the requirements applicable to a
financial holding company, under sections 4(l) and 4(m) of the Bank Holding
Company Act and section 804(c) of the Community Reinvestment Act of 1977 (12
U.S.C. 2903(c)) as if the savings and loan holding company was a bank holding
company; and</text>
</clause><clause id="H09EE8371E31A4B4B985E99FF5B4CE0EF"><enum>(ii)</enum><text>the savings and
loan holding company conducts the activity in accordance with the same terms,
conditions, and requirements that apply to the conduct of such activity by a
bank holding company under the Bank Holding Company Act of 1956 and the Board's
regulations and interpretations under such
Act.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF44929BD7EB14451B3289AD48B13F2B7"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="HA80781E06B1B499C9F5F6516808DDA03"><enum>607.</enum><header>Standards for
interstate acquisitions</header>
<subsection id="H583EE41BDF9446BBB0DAE11FF1C52FB8"><enum>(a)</enum><header>Acquisition of
banks</header><text display-inline="yes-display-inline">Section 3(d)(1)(A) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1842(d)(1)(A)) is amended by
striking <quote>adequately capitalized and adequately managed</quote> and
inserting <quote>well capitalized and well managed</quote>.</text>
</subsection><subsection id="H9722726E4EC245A0A7D6189D11743FF0"><enum>(b)</enum><header>Interstate bank
mergers</header><text>Section 44(b)(4)(B) of the Federal Deposit Insurance Act
(12 U.S.C. 1831u(b)(4)(B)) is amended by striking <quote>will continue to be
adequately capitalized and adequately managed</quote> and inserting <quote>will
be well capitalized and well managed</quote>.</text>
</subsection><subsection id="HE50ABE7F59EB4DC9B7ADBE5503E923D0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="HC93BE5DAEA4648B59561417977FE8C63"><enum>608.</enum><header>Enhancing
existing restrictions on bank transactions with affiliates</header>
<subsection id="H4EF2BA02A7CA4BC79C548817478300D6"><enum>(a)</enum><header>Affiliate
transactions</header><text>Section 23A of the Federal Reserve Act (12 U.S.C.
371c) is amended—</text>
<paragraph id="H68D6CD68CE31463FB38FED8D52743656"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H47FE7F7D7E614FCEB14E747442436FC0"><enum>(A)</enum><text>in paragraph (1),
by striking subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H30C768CC265A410AB2C445A2CF78FF2D" style="OLC">
<subparagraph id="H0D2043B15C0C46C0AC40014B19A7FA58"><enum>(D)</enum><text>any investment
fund with respect to which a member bank or affiliate thereof is an investment
adviser; and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HFAEFE3F9597D4BE8B03673AA2283AC18"><enum>(B)</enum><text>in paragraph
(7)—</text>
<clause id="H775D36B641D44483A25498498C2EAB4E"><enum>(i)</enum><text>in
subparagraph (A), by inserting before the semicolon at the end the following:
<quote>, including a purchase of assets subject to an agreement to
repurchase</quote>;</text>
</clause><clause commented="no" id="H08774E72EDCC49A7BFC7326080B182F8"><enum>(ii)</enum><text>in subparagraph
(C), by striking <quote>, including assets subject to an agreement to
repurchase,</quote>;</text>
</clause><clause id="HC3C345A9BD7E4F2298A8BB8CB5E6262D"><enum>(iii)</enum><text>in
subparagraph (D)—</text>
<subclause id="H8DC52B7197EE402EA8C7EF178B9B53AE"><enum>(I)</enum><text>by inserting
<quote>or other debt obligations</quote> after <quote>acceptance of
securities</quote>; and</text>
</subclause><subclause id="H52890C3BDAC1401C8218EB3BD714E7F3"><enum>(II)</enum><text>by striking
<quote>or</quote> at the end; and</text>
</subclause></clause><clause id="HB682A164E4804D8F9CF70A2FF525D267"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H157FDB35C178403AA50C6A3EDEC01F2D" style="OLC">
<subparagraph id="H5E62E4AD43A549B4B93812CD0EE10C89"><enum>(F)</enum><text>a transaction with
an affiliate that involves the borrowing or lending of securities, to the
extent that the transaction causes a member bank or a subsidiary to have credit
exposure to the affiliate; or</text>
</subparagraph><subparagraph id="HD38ED03161834932950B48052F2D7DFB"><enum>(G)</enum><text>a derivative
transaction, as defined in paragraph (3) of section 5200(b) of the Revised
Statutes of the United States (12 U.S.C. 84(b)), with an affiliate, to the
extent that the transaction causes a member bank or a subsidiary to have credit
exposure to the
affiliate;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="HA90B75F6ADE44F25922060EDE03DD4C0"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="H618E859FB223412EB01F7DC1C6D258DB"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H5D1C10B61BC6414A9128C680457470A0"><enum>(i)</enum><text>in
the matter preceding subparagraph (A), by striking <quote>subsidiary</quote>
and all that follows through <quote>time of the transaction</quote> and
inserting <quote>subsidiary, and any credit exposure of a member bank or a
subsidiary to an affiliate resulting from a securities borrowing or lending
transaction, or a derivative transaction, shall be secured at all
times</quote>; and</text>
</clause><clause id="HD1F0729A896846B8A953B1F7FFC8272D"><enum>(ii)</enum><text>in
each of subparagraphs (A) through (D), by striking <quote>or letter of
credit</quote> and inserting <quote>letter of credit, or credit
exposure</quote>;</text>
</clause></subparagraph><subparagraph id="HA76580FE840B4E3BAC8D8865CE02339C"><enum>(B)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="HB72CB095A62048A6B263A099CD295481"><enum>(C)</enum><text>by redesignating
paragraphs (3) through (5) as paragraphs (2) through (4), respectively;</text>
</subparagraph><subparagraph id="H920761158C164AAB8DB3FF81B8F00C45"><enum>(D)</enum><text>in paragraph (2),
as so redesignated, by inserting before the period at the end <quote>, or
credit exposure to an affiliate resulting from a securities borrowing or
lending transaction, or derivative transaction</quote>; and</text>
</subparagraph><subparagraph id="HA5F4D631B17D4375A945631AA44031F2"><enum>(E)</enum><text>in paragraph (3),
as so redesignated—</text>
<clause id="HCD93058980FE4D3080EE90F43022FDCA"><enum>(i)</enum><text>by
inserting <quote>or other debt obligations</quote> after
<quote>securities</quote>; and</text>
</clause><clause id="H1B951261F39F41A9A559FD4CF4E226B3"><enum>(ii)</enum><text>by
striking <quote>or guarantee</quote> and all that follows through <quote>behalf
of,</quote> and inserting <quote>guarantee, acceptance, or letter of credit
issued on behalf of, or credit exposure from a securities borrowing or lending
transaction, or derivative transaction to,</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="HE207B750729F4365A5445750707679EE"><enum>(3)</enum><text>in subsection
(d)(4), in the matter preceding subparagraph (A), by striking <quote>or
issuing</quote> and all that follows through <quote>behalf of,</quote> and
inserting <quote>issuing a guarantee, acceptance, or letter of credit on behalf
of, or having credit exposure resulting from a securities borrowing or lending
transaction, or derivative transaction to,</quote>; and</text>
</paragraph><paragraph id="H8317FC1AF800405A85EC6B7D830773D0"><enum>(4)</enum><text>in subsection
(f)—</text>
<subparagraph id="H2990DDBAAD57413F9196CA1432B23E5B"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="H8BD88E0A66F74841ACFE27450B1FDA3E"><enum>(i)</enum><text>by
striking <quote>or order</quote>;</text>
</clause><clause id="HA7072A071BB54B6FA6E82A0C4FD1C73D"><enum>(ii)</enum><text>by
striking <quote>if it finds</quote> and all that follows through the end of the
paragraph and inserting the following: “if—</text>
<quoted-block display-inline="no-display-inline" id="H98B1113058634EC2AABFCB356D2EC036" style="OLC">
<clause id="H61B10CCDA2614416BD8380ADFA7D08F7"><enum>(i)</enum><text>the Board finds
the exemption to be in the public interest and consistent with the purposes of
this section, and notifies the Federal Deposit Insurance Corporation of such
finding; and</text>
</clause><clause id="H9A44750E64974643927B6EAA2818B146"><enum>(ii)</enum><text>before the end of
the 60-day period beginning on the date on which the Federal Deposit Insurance
Corporation receives notice of the finding under clause (i), the Federal
Deposit Insurance Corporation does not object, in writing, to the finding,
based on a determination that the exemption presents an unacceptable risk to
the Deposit Insurance
Fund.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="HF39A209EF5ED4491A123694F15C5B22A"><enum>(iii)</enum><text>by
striking the Board and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H14CB6EDC199C4CA8BF350AE835A9A614" style="OLC">
<subparagraph id="H40DF9F50241D4AA0A938CB0B2DCE813E"><enum>(A)</enum><header>In
general</header><text>The Board</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H351DB41904794B169F8CAAEBB277C772"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAD1173A65731451DAB26956AE450F26C" style="OLC">
<subparagraph id="H5FEECDD26C6A4A4DAE18E99FF4C9F367"><enum>(B)</enum><header>Additional
exemptions</header>
<clause id="H433A7938E3314AD6855364DB22C58033"><enum>(i)</enum><header>National
banks</header><text>The Comptroller of the Currency may, by order, exempt a
transaction of a national bank from the requirements of this section if—</text>
<subclause id="H54DBDF3B59E9421F90E8F81673A68CB6"><enum>(I)</enum><text>the Board and the
Office of the Comptroller of the Currency jointly find the exemption to be in
the public interest and consistent with the purposes of this section and notify
the Federal Deposit Insurance Corporation of such finding; and</text>
</subclause><subclause id="H7F9626775F914920A471863032C971E6"><enum>(II)</enum><text>before the end of
the 60-day period beginning on the date on which the Federal Deposit Insurance
Corporation receives notice of the finding under subclause (I), the Federal
Deposit Insurance Corporation does not object, in writing, to the finding,
based on a determination that the exemption presents an unacceptable risk to
the Deposit Insurance Fund.</text>
</subclause></clause><clause id="HDD8B5B2A5EA54ED7B527044836230BEE"><enum>(ii)</enum><header>State
banks</header><text>The Federal Deposit Insurance Corporation may, by order,
exempt a transaction of a State nonmember bank, and the Board may, by order,
exempt a transaction of a State member bank, from the requirements of this
section if—</text>
<subclause id="H7CD2CC920C8F48B8841DB8F9524736E8"><enum>(I)</enum><text>the Board and the
Federal Deposit Insurance Corporation jointly find that the exemption is in the
public interest and consistent with the purposes of this section; and</text>
</subclause><subclause id="HA446E31D82CA4A17BD019F4D058932AD"><enum>(II)</enum><text>the Federal
Deposit Insurance Corporation finds that the exemption does not present an
unacceptable risk to the Deposit Insurance
Fund.</text>
</subclause></clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H6754848CC1B14425B39B98694BC27150"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HADD53AA1EE414476B73CC5E63763C32C" style="OLC">
<paragraph id="H82FB6F05F2BB42FD97F228AA645C9911"><enum>(4)</enum><header>Amounts of
covered transactions</header><text>The Board may issue such regulations or
interpretations as the Board determines are necessary or appropriate with
respect to the manner in which a netting agreement may be taken into account in
determining the amount of a covered transaction between a member bank or a
subsidiary and an affiliate, including the extent to which netting agreements
between a member bank or a subsidiary and an affiliate may be taken into
account in determining whether a covered transaction is fully secured for
purposes of subsection (d)(4). An interpretation under this paragraph with
respect to a specific member bank, subsidiary, or affiliate shall be issued
jointly with the appropriate Federal banking agency for such member bank,
subsidiary, or
affiliate.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H2ABD893C39CB490480D11F6DFD888AB6"><enum>(b)</enum><header>Transactions
with affiliates</header><text>Section 23B(e) of the Federal Reserve Act (12
U.S.C. 371c–1(e)) is amended—</text>
<paragraph id="HEE9D2D8DEDE1473A9B797BF589DD0921"><enum>(1)</enum><text>by striking the
undesignated matter following subparagraph (B);</text>
</paragraph><paragraph id="HCE614017112F4481B35F0DF7C5A8BDF0"><enum>(2)</enum><text>by redesignating
subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting
the clause margins accordingly;</text>
</paragraph><paragraph id="HF6BE622A16E34BE08C66A060A8150112"><enum>(3)</enum><text>by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and
adjusting the subparagraph margins accordingly;</text>
</paragraph><paragraph id="H73F7C2AB0C1A45219D51082614FD5D28"><enum>(4)</enum><text>by striking
<quote>The Board</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8DB6EFB2671B4FA499D63675CCC10CD9" style="OLC">
<paragraph id="H71C5E9B1EDC74743BBDBCA154605C645"><enum>(1)</enum><header>In
general</header><text>The
Board</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC2801DCABB724621BB4C81459656EEDB"><enum>(5)</enum><text>in paragraph
(1)(B), as so redesignated—</text>
<subparagraph id="H810D9C8127BC41B6BFFB40DA137A8747"><enum>(A)</enum><text>in the matter
preceding clause (i), by inserting before <quote>regulations</quote> the
following: <quote>subject to paragraph (2), if the Board finds that an
exemption or exclusion is in the public interest and is consistent with the
purposes of this section, and notifies the Federal Deposit Insurance
Corporation of such finding,</quote>; and</text>
</subparagraph><subparagraph id="HAA9CC0205E7640CE8B85D2AD5F3910F9"><enum>(B)</enum><text>in clause (ii), by
striking the comma at the end and inserting a period; and</text>
</subparagraph></paragraph><paragraph id="H63E77196F5DD4B2F934DD1E7858D4DC3"><enum>(6)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H831CFBD2AEFA4B4EA921B08F9E9728FF" style="OLC">
<paragraph id="H696D180E8C644D879C639A565BFC26AB"><enum>(2)</enum><header>Exception</header><text>The
Board may grant an exemption or exclusion under this subsection only if, during
the 60-day period beginning on the date of receipt of notice of the finding
from the Board under paragraph (1)(B), the Federal Deposit Insurance
Corporation does not object, in writing, to such exemption or exclusion, based
on a determination that the exemption presents an unacceptable risk to the
Deposit Insurance
Fund.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDE3A00CFD340423EBE826184261B7372"><enum>(c)</enum><header>Home Owners'
Loan Act</header><text>Section 11 of the Home Owners' Loan Act (12 U.S.C. 1468)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H50142539DA2C45EF9FBE692EE80250A6" style="OLC">
<subsection id="H42D37D7D04D145759B7F02F430A335D9"><enum>(d)</enum><header>Exemptions</header>
<paragraph id="HF6A7BA40958A47899025B8B0C8C9FB39"><enum>(1)</enum><header>Federal savings
associations</header><text>The Comptroller of the Currency may, by order,
exempt a transaction of a Federal savings association from the requirements of
this section if—</text>
<subparagraph id="H5DC35702344E4C1BB008CD807F430DD1"><enum>(A)</enum><text>the Board and the
Office of the Comptroller of the Currency jointly find the exemption to be in
the public interest and consistent with the purposes of this section and notify
the Federal Deposit Insurance Corporation of such finding; and</text>
</subparagraph><subparagraph id="H75BF6DC424F64C28B77CF41211EA5944"><enum>(B)</enum><text>before the end of
the 60-day period beginning on the date on which the Federal Deposit Insurance
Corporation receives notice of the finding under subparagraph (A), the Federal
Deposit Insurance Corporation does not object, in writing, to the finding,
based on a determination that the exemption presents an unacceptable risk to
the Deposit Insurance Fund.</text>
</subparagraph></paragraph><paragraph id="HCD66CE63E38F468799A1D66E4F817110"><enum>(2)</enum><header>State savings
association</header><text>The Federal Deposit Insurance Corporation may, by
order, exempt a transaction of a State savings association from the
requirements of this section if the Board and the Federal Deposit Insurance
Corporation jointly find that—</text>
<subparagraph id="H10B5C0FA1E49413FA941CBAD73881F97"><enum>(A)</enum><text>the exemption is
in the public interest and consistent with the purposes of this section;
and</text>
</subparagraph><subparagraph id="H243D1EB781594365B3C061F26A408C7F"><enum>(B)</enum><text>the exemption does
not present an unacceptable risk to the Deposit Insurance
Fund.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC85C5BB89B0949DDA5EB11AA39F44E71"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section commented="no" id="H821ED59CC2E743D7B59F8850586071B3"><enum>609.</enum><header>Eliminating
exceptions for transactions with financial subsidiaries</header>
<subsection commented="no" id="HD058F5D413604E63ADAF0A82A02DA674"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 23A(e) of the Federal Reserve Act
(12 U.S.C. 371c(e)) is amended—</text>
<paragraph commented="no" id="H1EC158886E6C48AE82DE917EAB34B008"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (3); and</text>
</paragraph><paragraph commented="no" id="H81DE5D0BD783446F9DDA55BE5EE1ECEC"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (4) as paragraph
(3).</text>
</paragraph></subsection><subsection commented="no" id="HFEDC32D2DB0945F4B547209D7ECF8660"><enum>(b)</enum><header>Prospective
application of amendment</header><text>The amendments made by this section
shall apply with respect to any covered transaction between a bank and a
subsidiary of the bank, as those terms are defined in section 23A of the
Federal Reserve Act (12 U.S.C. 371c), that is entered into on or after the date
of enactment of this Act.</text>
</subsection><subsection commented="no" id="H105AD44AFD6649EE88674251D7C0FF6F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="H428324AED2704586BCE046FDFD41DA6B"><enum>610.</enum><header>Lending limits
applicable to credit exposure on derivative transactions, repurchase
agreements, reverse repurchase agreements, and securities lending and borrowing
transactions</header>
<subsection id="HF561FED07E3A4B3A9C973DD753A2278A"><enum>(a)</enum><header>National
banks</header><text display-inline="yes-display-inline">Section 5200(b) of the
Revised Statutes of the United States (12 U.S.C. 84(b)) is amended—</text>
<paragraph id="HD1172119504D4901B7F9607F34FDF000"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>shall include</quote> and all that follows through the end
of the paragraph and inserting the following: “shall include—</text>
<quoted-block display-inline="no-display-inline" id="H3B48D4AB506D4BE78482C529F0EA2D0C" style="OLC">
<subparagraph id="HB351B8AABEEF4179B33B5ADDC1164DEB"><enum>(A)</enum><text>all direct or
indirect advances of funds to a person made on the basis of any obligation of
that person to repay the funds or repayable from specific property pledged by
or on behalf of the person;</text>
</subparagraph><subparagraph id="H0CD451FEE78140ABA198D111D4B68670"><enum>(B)</enum><text>to the extent
specified by the Comptroller of the Currency, any liability of a national
banking association to advance funds to or on behalf of a person pursuant to a
contractual commitment; and</text>
</subparagraph><subparagraph id="H1CC5D61B2ADE40CB8B542DDBB64D7FD9"><enum>(C)</enum><text>any credit
exposure to a person arising from a derivative transaction, repurchase
agreement, reverse repurchase agreement, securities lending transaction, or
securities borrowing transaction between the national banking association and
the
person;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H168CAF18E98C4BCE9E72C09EE570EB93"><enum>(2)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="HE139A24B19E341D49B09D3C4E0F470B5"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H62347DD8903D4014AECC31432C262B78" style="OLC">
<paragraph id="H0B6A5DD7DA644071A0CBABE05A6EA4FB"><enum>(3)</enum><text>the term
<term>derivative transaction</term> includes any transaction that is a
contract, agreement, swap, warrant, note, or option that is based, in whole or
in part, on the value of, any interest in, or any quantitative measure or the
occurrence of any event relating to, one or more commodities, securities,
currencies, interest or other rates, indices, or other
assets.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3C5B36430ED94B3EB6692973F22E0578"><enum>(b)</enum><header>Savings
associations</header><text>Section 5(u)(3) of the Home Owners' Loan Act (12
U.S.C. 1464(u)(3)) is amended by striking <quote>Director</quote> each place
that term appears and inserting <quote>Comptroller of the
Currency</quote>.</text>
</subsection><subsection id="HF9C497492C1E4142A31BFE9BB14927AC"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="HB349A88A8B7246BBAA51FDF3F6F744AA"><enum>611.</enum><header>Consistent
treatment of derivative transactions in lending limits</header>
<subsection id="H16546FB157CC4FE2BBA6B703B3F235D3"><enum>(a)</enum><header>Amendment</header><text>Section
18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2B24FA513CCF4238B224AA9017E95C0F" style="OLC">
<subsection id="H90E94707DF074FF39B3903E29C30DFD0"><enum>(y)</enum><header>State lending
limit treatment of derivatives transactions</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE162A4F239B843FC9F78071DC94D799C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect 18
months after the transfer date.</text>
</subsection></section><section id="HEE46E55FE7924F9BB6BDBCA271CB5F94"><enum>612.</enum><header>Restriction on
conversions of troubled banks</header>
<subsection id="H090CE9B8EBFF46E584FE3E1544C24B60"><enum>(a)</enum><header>Conversion of a
national banking association</header><text>The Act entitled <quote>An Act to
provide for the conversion of national banking associations into and their
merger or consolidation with State banks, and for other purposes.</quote> (12
U.S.C. 214 et seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2D0BF92F71484FDE93B159FD741A9399" style="OLC">
<section id="HDCEF8F30738B4E15A82BED29BD2F346E"><enum>10.</enum><header>Prohibition on
conversion</header><text display-inline="no-display-inline">A national banking
association may not convert to a State bank or State savings association during
any period in which the national banking association is subject to a cease and
desist order (or other formal enforcement order) issued by, or a memorandum of
understanding entered into with, the Comptroller of the Currency with respect
to a significant supervisory
matter.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H58A49D20889542A9826C5E16B414A537"><enum>(b)</enum><header>Conversion of a
State bank or savings association</header><text>Section 5154 of the Revised
Statutes of the United States (12 U.S.C. 35) is amended by adding at the end
the following: <quote>The Comptroller of the Currency may not approve the
conversion of a State bank or State savings association to a national banking
association or Federal savings association during any period in which the State
bank or State savings association is subject to a cease and desist order (or
other formal enforcement order) issued by, or a memorandum of understanding
entered into with, a State bank supervisor or the appropriate Federal banking
agency with respect to a significant supervisory matter or a final enforcement
action by a State Attorney General.</quote>.</text>
</subsection><subsection id="H6904EE5397214B1CBC88323EA051E052"><enum>(c)</enum><header>Conversion of a
Federal savings association</header><text>Section 5(i) of the Home Owners' Loan
Act (12 U.S.C. 1464(i)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD0504D3EE40A4CB0B689C315FBAFE0BD" style="OLC">
<paragraph id="H156902BF199340B0A3F0A17FEBD0F5F8"><enum>(6)</enum><header>Limitation on
certain conversions by Federal savings associations</header><text>A Federal
savings association may not convert to a State bank or State savings
association during any period in which the Federal savings association is
subject to a cease and desist order (or other formal enforcement order) issued
by, or a memorandum of understanding entered into with, the Office of Thrift
Supervision or the Comptroller of the Currency with respect to a significant
supervisory
matter.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H74A12DD2753041F3A8A58802733CE790"><enum>(d)</enum><header>Exception</header><text display-inline="yes-display-inline">The prohibition on the approval of
conversions under the amendments made by subsections (a), (b), and (c) shall
not apply, if—</text>
<paragraph id="H69EC7E2C26344EE382315D7D2826AA5F"><enum>(1)</enum><text display-inline="yes-display-inline">the Federal banking agency that would be
the appropriate Federal banking agency after the proposed conversion gives the
appropriate Federal banking agency or State bank supervisor that issued the
cease and desist order (or other formal enforcement order) or memorandum of
understanding, as appropriate, written notice of the proposed conversion
including a plan to address the significant supervisory matter in a manner that
is consistent with the safe and sound operation of the institution;</text>
</paragraph><paragraph id="H9624C7278BA4467786BFC1BB646B65AD"><enum>(2)</enum><text>within 30 days of
receipt of the written notice required under paragraph (1), the appropriate
Federal banking agency or State bank supervisor that issued the cease and
desist order (or other formal enforcement order) or memorandum of
understanding, as appropriate, does not object to the conversion or the plan to
address the significant supervisory matter;</text>
</paragraph><paragraph id="H61069AAEABA142D38CA4291321E916CD"><enum>(3)</enum><text>after conversion
of the insured depository institution, the appropriate Federal banking agency
after the conversion implements such plan; and</text>
</paragraph><paragraph id="HD9FEB6FF8F6C4C85A065974527B374E2"><enum>(4)</enum><text>in the case of a
final enforcement action by a State Attorney General, approval of the
conversion is conditioned on compliance by the insured depository institution
with the terms of such final enforcement action.</text>
</paragraph></subsection><subsection id="H7461AE86B1AC4CDDBAC62AEDE9CB89A7"><enum>(e)</enum><header>Notification of
pending enforcement actions</header>
<paragraph id="HC8920B02433940CD9C5E624D26863EF2"><enum>(1)</enum><header>Copy of
conversion application</header><text>At the time an insured depository
institution files a conversion application, the insured depository institution
shall transmit a copy of the conversion application to—</text>
<subparagraph id="H3B6DE35383CD463EB0D70DFCC1C29CA5"><enum>(A)</enum><text>the appropriate
Federal banking agency for the insured depository institution; and</text>
</subparagraph><subparagraph id="H92B4020944B24439966F64A2E3234F3A"><enum>(B)</enum><text>the Federal
banking agency that would be the appropriate Federal banking agency of the
insured depository institution after the proposed conversion.</text>
</subparagraph></paragraph><paragraph id="H4327A339EE75402087D2142ECA760E90"><enum>(2)</enum><header>Notification and
access to information</header><text>Upon receipt of a copy of the application
described in paragraph (1), the appropriate Federal banking agency for the
insured depository institution proposing the conversion shall—</text>
<subparagraph id="H5681DA4C8D534198846A266D685B3532"><enum>(A)</enum><text>notify the Federal
banking agency that would be the appropriate Federal banking agency for the
institution after the proposed conversion in writing of any ongoing supervisory
or investigative proceedings that the appropriate Federal banking agency for
the institution proposing to convert believes is likely to result, in the near
term and absent the proposed conversion, in a cease and desist order (or other
formal enforcement order) or memorandum of understanding with respect to a
significant supervisory matter; and</text>
</subparagraph><subparagraph id="H628E013C63B74F86B40058B82D829A5E"><enum>(B)</enum><text>provide the
Federal banking agency that would be the appropriate Federal banking agency for
the institution after the proposed conversion access to all investigative and
supervisory information relating to the proceedings described in subparagraph
(A).</text>
</subparagraph></paragraph></subsection></section><section id="HFC0D0900B2E445CB8CC7089D52BD6BBE"><enum>613.</enum><header>De novo
branching into States</header>
<subsection id="H1F04E8D7DB2948468DC19AF9F55727B2"><enum>(a)</enum><header>National
banks</header><text>Section 5155(g)(1)(A) of the Revised Statutes of the United
States (12 U.S.C. 36(g)(1)(A)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF463CA9B65A34ACD809024E9C60E8A94" style="OLC">
<subparagraph id="H9FB22307488F402297C7156681B759EE"><enum>(A)</enum><text>the law of the
State in which the branch is located, or is to be located, would permit
establishment of the branch, if the national bank were a State bank chartered
by such State;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5522843AC6BC47809C069CDB172288DA"><enum>(b)</enum><header>State insured
banks</header><text>Section 18(d)(4)(A)(i) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(d)(4)(A)(i)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H01244709FF6B49CD820C9353CAA19B5D" style="OLC">
<clause id="HA8B2A93E4DEC468385C91AF9F15909B1"><enum>(i)</enum><text>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</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD56B1C30B7DE4F499A98ADC973A59ED2"><enum>614.</enum><header>Lending limits
to insiders</header>
<subsection id="H3F89235333E040E29E42A5FA2E9E7D71"><enum>(a)</enum><header>Extensions of
credit</header><text display-inline="yes-display-inline">Section 22(h)(9)(D)(i)
of the Federal Reserve Act (12 U.S.C. 375b(9)(D)(i)) is amended—</text>
<paragraph id="HF05CCA3E10C84CFE991C69333D1E7402"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting <quote>; or</quote>;</text>
</paragraph><paragraph id="H69ABCC8862EE4B388C5A5933E7E04104"><enum>(2)</enum><text>by striking
<quote>a person</quote> and inserting <quote>the person</quote>;</text>
</paragraph><paragraph id="HE2A723019C4747D8AD48CF92DFCF723E"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>extends credit by
making</quote> and inserting the following: “extends credit to a person
by—</text>
<quoted-block display-inline="no-display-inline" id="HAD81303C159F494EA31FF438A4A0EC14" style="OLC">
<subclause id="H06AF52251C724B5EB628358BE45AA0D0"><enum>(I)</enum><text display-inline="yes-display-inline">making</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6B800E21E08E4377985B5BBA4285D492"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFBCBD93DF5C94D3888770AD6C6A389E5" style="OLC">
<subclause id="HD3CBF86ACE3C4E078B3A99EDE956330D"><enum>(II)</enum><text display-inline="yes-display-inline">having credit exposure to the person
arising from a derivative transaction (as defined in section 5200(b) of the
Revised Statutes of the United States (12 U.S.C. 84(b))), repurchase agreement,
reverse repurchase agreement, securities lending transaction, or securities
borrowing transaction between the member bank and the
person.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H80665B964349467AA51089735D00B0D0"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 1 year
after the transfer date.</text>
</subsection></section><section id="H430A24A7204C4FE2859E3558ECC65C98"><enum>615.</enum><header>Limitations on
purchases of assets from insiders</header>
<subsection id="H2703BD4D62A24C55AC08ED77DBF7FBE5"><enum>(a)</enum><header>Amendment to the
Federal Deposit Insurance Act</header><text>Section 18 of the Federal Deposit
Insurance Act (12 U.S.C. 1828) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H879BB97F831A465BB3517D0BABF1FC5F" style="OLC">
<subsection id="HF1FF5E3AF20845A9A94AE74F913410D1"><enum>(z)</enum><header>General
prohibition on sale of assets</header>
<paragraph id="HDCEE26EF0DD24E049AC83E0F2699DFE6"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="HEA6374A1A8C042A6A427233E4CA31B93"><enum>(A)</enum><text>the transaction is
on market terms; and</text>
</subparagraph><subparagraph id="H6C1E5595C6B545CFB7A2F264E7611B65"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H0AC293D086FA4B19BE61FE0534C12051"><enum>(2)</enum><header>Rulemaking</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0DAD912E36934DE0B1972D455885E31E"><enum>(b)</enum><header>Amendments to
the Federal reserve Act</header><text>Section 22(d) of the Federal Reserve Act
(12 U.S.C. 375) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5CAAF46D1E944CF6A75BC1A716329AEA" style="OLC">
<subsection id="H1BAA524525174AA2917E27C43A156492"><enum>(d)</enum><text>[Reserved]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6FA4220DADEC47CCACC594DF029C0161"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="H1F0262B061F3416CA45ACBA15B118E16"><enum>616.</enum><header>Regulations
regarding capital levels</header>
<subsection id="H5F297F07DC344F058A6CE4621D04CF1B"><enum>(a)</enum><header>Capital levels
of bank holding companies</header><text display-inline="yes-display-inline">Section 5(b) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1844(b)) is amended—</text>
<paragraph id="H4C37979A26C14F6093ED6DC57AF53135"><enum>(1)</enum><text>by inserting after
<quote>orders</quote> the following: <quote>, including regulations and orders
relating to the capital requirements for bank holding companies,</quote>;
and</text>
</paragraph><paragraph id="HE6E20BC13E664E16A45F3DE6962CFD57"><enum>(2)</enum><text>by adding at the
end the following: <quote>In establishing capital regulations pursuant to this
subsection, the Board shall seek to make such requirements countercyclical, so
that the amount of capital required to be maintained by a company increases in
times of economic expansion and decreases in times of economic contraction,
consistent with the safety and soundness of the company.</quote>.</text>
</paragraph></subsection><subsection id="H6C5B0E24AE0A455C83024128BD54502D"><enum>(b)</enum><header>Capital levels
of savings and loan holding companies</header><text display-inline="yes-display-inline">Section 10(g)(1) of the Home Owners' Loan
Act (12 U.S.C. 1467a(g)(1)) is amended—</text>
<paragraph id="HB61BC7B3403C4726AFEA828DF3A34748"><enum>(1)</enum><text>by inserting after
<quote>orders</quote> the following: <quote>, including regulations and orders
relating to capital requirements for savings and loan holding
companies,</quote>; and</text>
</paragraph><paragraph id="HF4F3491321374B57BBCE76377C55ED8F"><enum>(2)</enum><text>by inserting at
the end the following: <quote>In establishing capital regulations pursuant to
this subsection, the appropriate Federal banking agency shall seek to make such
requirements countercyclical so that the amount of capital required to be
maintained by a company increases in times of economic expansion and decreases
in times of economic contraction, consistent with the safety and soundness of
the company.</quote>.</text>
</paragraph></subsection><subsection id="HE694C332ECCC406FB435265C07F4FC4F"><enum>(c)</enum><header>Capital levels
of insured depository institutions</header><text display-inline="yes-display-inline">Section 908(a)(1) of the International
Lending Supervision Act of 1983 (12 U.S.C. 3907(a)(1)) is amended by adding at
the end the following: <quote>Each appropriate Federal banking agency shall
seek to make the capital standards required under this section or other
provisions of Federal law for insured depository institutions countercyclical
so that the amount of capital required to be maintained by an insured
depository institution increases in times of economic expansion and decreases
in times of economic contraction, consistent with the safety and soundness of
the insured depository institution.</quote></text>
</subsection><subsection id="HB13F6B589E804CF99CE411B4BFDD7E1E"><enum>(d)</enum><header>Source of
strength</header><text>The Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.) is amended by inserting after section 38 (12 U.S.C. 1831o) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HE14E1AD363754578B6B74CEC1DDE27E4" style="OLC">
<section id="H8B4250A522F14B728336949B11C56F4A"><enum>38A.</enum><header>Source of
strength</header>
<subsection id="H5608FC97E6474F3C9CC294A6D30D5147"><enum>(a)</enum><header>Holding
companies</header><text>The appropriate Federal banking agency for a bank
holding company or savings and loan holding company shall require the bank
holding company or savings and loan holding company to serve as a source of
financial strength for any subsidiary of the bank holding company or savings
and loan holding company that is a depository institution.</text>
</subsection><subsection id="HC54EE7D9DC6847B8B8D62774D1BCA261"><enum>(b)</enum><header>Other
companies</header><text>If an insured depository institution is not the
subsidiary of a bank holding company or savings and loan holding company, the
appropriate Federal banking agency for the insured depository institution shall
require any company that directly or indirectly controls the insured depository
institution to serve as a source of financial strength for such
institution.</text>
</subsection><subsection id="H20286A60171A467DA894D8FA39446829"><enum>(c)</enum><header>Reports</header><text>The
appropriate Federal banking agency for an insured depository institution
described in subsection (b) may, from time to time, require the company, or a
company that directly or indirectly controls the insured depository
institution, to submit a report, under oath, for the purposes of—</text>
<paragraph id="HAF4CE184170047B0B1BE4F551429C59E"><enum>(1)</enum><text>assessing the
ability of such company to comply with the requirement under subsection (b);
and</text>
</paragraph><paragraph id="HC86DB76594CF40998DFDF704C4371D16"><enum>(2)</enum><text>enforcing the
compliance of such company with the requirement under subsection (b).</text>
</paragraph></subsection><subsection id="HCED1BFD536B845259AF892EBADA6B7ED"><enum>(d)</enum><header>Rules</header><text>Not
later than 1 year after the transfer date, as defined in section 311 of the
Enhancing Financial Institution Safety and Soundness Act of 2010, the
appropriate Federal banking agencies shall jointly issue final rules to carry
out this section.</text>
</subsection><subsection id="HA1BD8DD0603B412EB905DEF81C9CB961"><enum>(e)</enum><header>Definition</header><text>In
this section, the term <term>source of financial strength</term> means the
ability of a company that directly or indirectly owns or controls an insured
depository institution to provide financial assistance to such insured
depository institution in the event of the financial distress of the insured
depository
institution.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA7513C30D6264C0CB59C4196E890044E"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="H4D5F756265CD463E84AEDE80077B413B"><enum>617.</enum><header>Elimination of
elective investment bank holding company framework</header>
<subsection id="HCA61E47B10834BB9A0684213D8D1FA44"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 17 of the Securities Exchange Act
of 1934 (15 U.S.C. 78q) is amended—</text>
<paragraph id="H1C16C49E692447A3A59CDA0B2E271071"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (i); and</text>
</paragraph><paragraph id="HE5F39A69A00B47769C913BE6EBDD5BDD"><enum>(2)</enum><text>by redesignating
subsections (j) and (k) as subsections (i) and (j), respectively.</text>
</paragraph></subsection><subsection id="H04800B57BF35443C8866F2EC3050EDBB"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
transfer date.</text>
</subsection></section><section id="HBE256EFF96E44EBF8C121368E860E4FB"><enum>618.</enum><header>Securities
holding companies</header>
<subsection id="H9B55AE211A644648BAE76849C61054E4"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H88C72CC00B7B4B58A3019DB420507912"><enum>(1)</enum><text>the term
<term>associated person of a securities holding company </term> means a person
directly or indirectly controlling, controlled by, or under common control
with, a securities holding company;</text>
</paragraph><paragraph id="H049EB7380B9A439EB59DD7E0032807F3"><enum>(2)</enum><text>the term
<term>foreign bank</term> has the same meaning as in section 1(b)(7) of the
International Banking Act of 1978 (12 U.S.C. 3101(7));</text>
</paragraph><paragraph id="H98566A522BD149FD94825EA67D49DE0F"><enum>(3)</enum><text>the term
<term>insured bank</term> has the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813);</text>
</paragraph><paragraph id="H4907485806784165A0EA3CFBE9305799"><enum>(4)</enum><text>the term
<term>securities holding company</term>—</text>
<subparagraph id="HCF4C2F0431014EF4BA20E5A884FB4EDD"><enum>(A)</enum><text>means—</text>
<clause id="H7D49CEDB5E574AF4950D8304C1CC5E41"><enum>(i)</enum><text>a
person (other than a natural person) that owns or controls 1 or more brokers or
dealers registered with the Commission; and</text>
</clause><clause id="HC5290C42AD1C4E7DA088EA1EB1D845BA"><enum>(ii)</enum><text>the
associated persons of a person described in clause (i); and</text>
</clause></subparagraph><subparagraph id="H2599C4934CE3411E8B1C1961FC8F3FEB"><enum>(B)</enum><text>does not include a
person that is—</text>
<clause commented="no" id="H639369FC990349B4B377D22E6349D915"><enum>(i)</enum><text>a nonbank
financial company supervised by the Board under title I;</text>
</clause><clause commented="no" id="H95FBF2411B3A4D1294F9A13FD3437FA9"><enum>(ii)</enum><text>an insured bank
(other than an institution described in subparagraphs (D), (F), or (H) of
section 2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))
or a savings association;</text>
</clause><clause id="H9E3DC9BC34C44F4792FAC3B10B7F6426"><enum>(iii)</enum><text>an
affiliate of an insured bank (other than an institution described in
subparagraphs (D), (F), or (H) of section 2(c)(2) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(c)(2)) or an affiliate of a savings
association;</text>
</clause><clause id="H1F5546176D994AD18D9E03A96E29471F"><enum>(iv)</enum><text>a
foreign bank, foreign company, or company that is described in section 8(a) of
the International Banking Act of 1978 (12 U.S.C. 3106(a));</text>
</clause><clause id="HF7B86B2910524985BFAA607335B9F4D6"><enum>(v)</enum><text>a
foreign bank that controls, directly or indirectly, a corporation chartered
under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.); or</text>
</clause><clause id="HBECE92701D9B4998869615C7F2BDE6AB"><enum>(vi)</enum><text>subject to
comprehensive consolidated supervision by a foreign regulator;</text>
</clause></subparagraph></paragraph><paragraph id="H0A1C43866F684F27BDA0E38298DEA61E"><enum>(5)</enum><text>the term
<term>supervised securities holding company</term> means a securities holding
company that is supervised by the Board of Governors under this section;
and</text>
</paragraph><paragraph id="HBA2596BF610B459399C97CA4407B0E47"><enum>(6)</enum><text>the terms
<term>affiliate</term>, <term>bank</term>, <term>bank holding company</term>,
<term>company</term>, <term>control</term>, <term>savings association</term>,
and <term>subsidiary</term> have the same meanings as in section 2 of the Bank
Holding Company Act of 1956.</text>
</paragraph></subsection><subsection id="H58CFE14A721C4A198B3A333CF516E906"><enum>(b)</enum><header>Supervision of a
Securities Holding Company Not Having a Bank or Savings Association
Affiliate</header>
<paragraph id="H2D0AA91EC10843F3901F3DC0831B07BA"><enum>(1)</enum><header>In
general</header><text>A securities holding company that is required by a
foreign regulator or provision of foreign law to be subject to comprehensive
consolidated supervision may register with the Board of Governors under
paragraph (2) to become a supervised securities holding company. Any securities
holding company filing such a registration shall be supervised in accordance
with this section, and shall comply with the rules and orders prescribed by the
Board of Governors applicable to supervised securities holding
companies.</text>
</paragraph><paragraph id="HF473DAC890784A828F2D39D62057D600"><enum>(2)</enum><header>Registration as
a supervised securities holding company</header>
<subparagraph id="H9CFF86C2393643F2A2171D518DEF2CA3"><enum>(A)</enum><header>Registration</header><text>A
securities holding company that elects to be subject to comprehensive
consolidated supervision shall register by filing with the Board of Governors
such information and documents as the Board of Governors, by regulation, may
prescribe as necessary or appropriate in furtherance of the purposes of this
section.</text>
</subparagraph><subparagraph id="H059C30C5D291432FA93B147555254884"><enum>(B)</enum><header>Effective
date</header><text>A securities holding company that registers under
subparagraph (A) shall be deemed to be a supervised securities holding company,
effective on the date that is 45 days after the date of receipt of the
registration information and documents under subparagraph (A) by the Board of
Governors, or within such shorter period as the Board of Governors, by rule or
order, may determine.</text>
</subparagraph></paragraph></subsection><subsection id="H253CAEC818E94F85BAA18DF864FABE43"><enum>(c)</enum><header>Supervision of
securities holding companies</header>
<paragraph id="HDAD63A6185A1403CB31CE5E26C5606FD"><enum>(1)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="HE9944774676C404DB1C3882BD39DD8F4"><enum>(A)</enum><header>Recordkeeping
and reporting required</header><text>Each supervised securities holding company
and each affiliate of a supervised securities holding company shall make and
keep for periods determined by the Board of Governors such records, furnish
copies of such records, and make such reports, as the Board of Governors
determines to be necessary or appropriate to carry out this section, to prevent
evasions thereof, and to monitor compliance by the supervised securities
holding company or affiliate with applicable provisions of law.</text>
</subparagraph><subparagraph id="HD43E805434AA4666ACD2AF217325B4D1"><enum>(B)</enum><header>Form and
contents</header>
<clause id="HEFFA4666ACED4BBD8249B37B0A7EF232"><enum>(i)</enum><header>In
general</header><text>Any record or report required to be made, furnished, or
kept under this paragraph shall—</text>
<subclause id="H1DDE538E95414CFEA12E393AEC3E957C"><enum>(I)</enum><text>be prepared in
such form and according to such specifications (including certification by a
registered public accounting firm), as the Board of Governors may require;
and</text>
</subclause><subclause id="H9BEF6F6076224C54881D97545E8A427E"><enum>(II)</enum><text>be provided
promptly to the Board of Governors at any time, upon request by the Board of
Governors.</text>
</subclause></clause><clause id="H6487F3AD95CC4094B815F4B4CB10BA70"><enum>(ii)</enum><header>Contents</header><text>Records
and reports required to be made, furnished, or kept under this paragraph may
include—</text>
<subclause id="H04A27B3AADED49D4A2306D3A102CE2A8"><enum>(I)</enum><text>a
balance sheet or income statement of the supervised securities holding company
or an affiliate of a supervised securities holding company;</text>
</subclause><subclause id="H499BEDAAAAE24B1296E2A886D4BCB0B4"><enum>(II)</enum><text>an assessment of
the consolidated capital and liquidity of the supervised securities holding
company;</text>
</subclause><subclause id="H733FD8BCC56540DE9750842B9A3DC969"><enum>(III)</enum><text>a report by an
independent auditor attesting to the compliance of the supervised securities
holding company with the internal risk management and internal control
objectives of the supervised securities holding company; and</text>
</subclause><subclause id="HD109A886AFEA4D01B36D9DDD0DFF7CAD"><enum>(IV)</enum><text>a report
concerning the extent to which the supervised securities holding company or
affiliate has complied with the provisions of this section and any regulations
prescribed and orders issued under this section.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H8D7755F43C564FEB8D11C315FC9A5BF3"><enum>(2)</enum><header>Use of existing
reports</header>
<subparagraph id="H746053190B184D1483AF157AFA6CF3ED"><enum>(A)</enum><header>In
general</header><text>The Board of Governors shall, to the fullest extent
possible, accept reports in fulfillment of the requirements of this paragraph
that a supervised securities holding company or an affiliate of a supervised
securities holding company has been required to provide to another regulatory
agency or a self-regulatory organization.</text>
</subparagraph><subparagraph id="H2FB26A5EB9A34E53969921512CFF9643"><enum>(B)</enum><header>Availability</header><text>A
supervised securities holding company or an affiliate of a supervised
securities holding company shall promptly provide to the Board of Governors, at
the request of the Board of Governors, any report described in subparagraph
(A), as permitted by law.</text>
</subparagraph></paragraph><paragraph id="H71A8DC3181D4481FA4A097BF8923B6DF"><enum>(3)</enum><header>Examination
authority</header>
<subparagraph id="HB1C0732450484D8C8DE818A33F8C07E4"><enum>(A)</enum><header>Focus of
examination authority</header><text>The Board of Governors may make
examinations of any supervised securities holding company and any affiliate of
a supervised securities holding company to carry out this subsection, to
prevent evasions thereof, and to monitor compliance by the supervised
securities holding company or affiliate with applicable provisions of
law.</text>
</subparagraph><subparagraph id="H201AE5F775F84DFD969CE9E897E18B1D"><enum>(B)</enum><header>Deference to
other examinations</header><text>For purposes of this subparagraph, the Board
of Governors shall, to the fullest extent possible, use the reports of
examination made by other appropriate Federal or State regulatory authorities
with respect to any functionally regulated subsidiary or any institution
described in subparagraph (D), (F), or (H) of section 2(c)(2) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)).</text>
</subparagraph></paragraph></subsection><subsection id="H369B85A8F62E43CF80628E6164B75112"><enum>(d)</enum><header>Capital and risk
management</header>
<paragraph id="HFEBBF56A1E644D269108D34456107707"><enum>(1)</enum><header>In
general</header><text>The Board of Governors shall, by regulation or order,
prescribe capital adequacy and other risk management standards for supervised
securities holding companies that are appropriate to protect the safety and
soundness of the supervised securities holding companies and address the risks
posed to financial stability by supervised securities holding companies.</text>
</paragraph><paragraph id="H04BFE9755FC741639B884A4103E3569E"><enum>(2)</enum><header>Differentiation</header><text>In
imposing standards under this subsection, the Board of Governors may
differentiate among supervised securities holding companies on an individual
basis, or by category, taking into consideration the requirements under
paragraph (3).</text>
</paragraph><paragraph id="HF40E04D7D853491290372768E87EC196"><enum>(3)</enum><header>Content</header><text>Any
standards imposed on a supervised securities holding company under this
subsection shall take into account—</text>
<subparagraph id="H4BC757EEB89F41DA93C3DD5B7F7903A9"><enum>(A)</enum><text>the differences
among types of business activities carried out by the supervised securities
holding company;</text>
</subparagraph><subparagraph id="HFDCAF4B683F943F09BB5AE0F648631C7"><enum>(B)</enum><text>the amount and
nature of the financial assets of the supervised securities holding
company;</text>
</subparagraph><subparagraph id="HA2D409640657458985C28FFF6DDC5F13"><enum>(C)</enum><text>the amount and
nature of the liabilities of the supervised securities holding company,
including the degree of reliance on short-term funding;</text>
</subparagraph><subparagraph id="H3814645E9B0941AA95D6D5678CBCC7AC"><enum>(D)</enum><text>the extent and
nature of the off-balance sheet exposures of the supervised securities holding
company;</text>
</subparagraph><subparagraph id="HC9C01FD046C041C68C13036CFD246B90"><enum>(E)</enum><text>the extent and
nature of the transactions and relationships of the supervised securities
holding company with other financial companies;</text>
</subparagraph><subparagraph id="HA5EC99EE92374DC08D902E4B1D6E1D49"><enum>(F)</enum><text>the importance of
the supervised securities holding company as a source of credit for households,
businesses, and State and local governments, and as a source of liquidity for
the financial system; and</text>
</subparagraph><subparagraph id="H44BA425B441640C4BB029B10B7AFA1AF"><enum>(G)</enum><text>the nature, scope,
and mix of the activities of the supervised securities holding company.</text>
</subparagraph></paragraph><paragraph id="H788B320B13A742DB8FFF2096516ABFBA"><enum>(4)</enum><header>Notice</header><text>A
capital requirement imposed under this subsection may not take effect earlier
than 180 days after the date on which a supervised securities holding company
is provided notice of the capital requirement.</text>
</paragraph></subsection><subsection id="HF1D83E3A63204AE6A3777D05CFEDDC14"><enum>(e)</enum><header>Other provisions
of law applicable to supervised securities holding companies</header>
<paragraph id="HF8B429C4DD3348978C5E026533823B43"><enum>(1)</enum><header>Federal Deposit
Insurance Act</header><text>Subsections (b), (c) through (s), and (u) of
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) shall apply to
any supervised securities holding company, and to any subsidiary (other than a
bank or an institution described in subparagraph (D), (F), or (H) of section
2(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) of a
supervised securities holding company, in the same manner as such subsections
apply to a bank holding company for which the Board of Governors is the
appropriate Federal banking agency. For purposes of applying such subsections
to a supervised securities holding company or a subsidiary (other than a bank
or an institution described in subparagraph (D), (F), or (H) of section 2(c)(2)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2))) of a supervised
securities holding company, the Board of Governors shall be deemed the
appropriate Federal banking agency for the supervised securities holding
company or subsidiary.</text>
</paragraph><paragraph id="H5E9A557D8A6A4700BE18E56572B95871"><enum>(2)</enum><header>Bank Holding
Company Act of 1956</header><text>Except as the Board of Governors may
otherwise provide by regulation or order, a supervised securities holding
company shall be subject to the provisions of the Bank Holding Company Act of
1956 (12 U.S.C. 1841 et seq.) in the same manner and to the same extent a bank
holding company is subject to such provisions, except that a supervised
securities holding company may not, by reason of this paragraph, be deemed to
be a bank holding company for purposes of section 4 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843).</text>
</paragraph></subsection></section><section id="H8A7054406F5A48DD91850B23DE9047A8"><enum>619.</enum><header>Prohibitions on
proprietary trading and certain relationships with hedge funds and private
equity funds</header><text display-inline="no-display-inline">The Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HDBA5E06A25164CCEBB2D43CAEA923056" style="OLC">
<section id="H022074C3486B41998DFC5AFFDDB306AE"><enum>13.</enum><header>Prohibitions on
proprietary trading and certain relationships with hedge funds and private
equity funds</header>
<subsection id="HA42081EE85AD4305A716D4EB868FFBAC"><enum>(a)</enum><header>In
general</header>
<paragraph id="HC1B7C1614B4F475D8FC1124C3C3193EE"><enum>(1)</enum><header>Prohibition</header><text>Unless
otherwise provided in this section, a banking entity shall not—</text>
<subparagraph id="H3B03705353A44CA68D807691A4F1244D"><enum>(A)</enum><text>engage in
proprietary trading; or</text>
</subparagraph><subparagraph id="H401DAC48DB5D4AB884B413F19A11C976"><enum>(B)</enum><text>acquire or retain
any equity, partnership, or other ownership interest in or sponsor a hedge fund
or a private equity fund.</text>
</subparagraph></paragraph><paragraph id="HA085A429901A48878EC30BB7892F4A91"><enum>(2)</enum><header>Nonbank
financial companies supervised by the board</header><text>Any nonbank financial
company supervised by the Board that engages in proprietary trading or takes or
retains any equity, partnership, or other ownership interest in or sponsors a
hedge fund or a private equity fund shall be subject, by rule, as provided in
subsection (b)(2), to additional capital requirements for and additional
quantitative limits with regards to such proprietary trading and taking or
retaining any equity, partnership, or other ownership interest in or
sponsorship of a hedge fund or a private equity fund, except that permitted
activities as described in subsection (d) shall not be subject to the
additional capital and additional quantitative limits except as provided in
subsection (d)(3), as if the nonbank financial company supervised by the Board
were a banking entity.</text>
</paragraph></subsection><subsection id="HC850C88B75CA4858AB70966E497948FD"><enum>(b)</enum><header>Study and
rulemaking</header>
<paragraph id="H10B64A2701CC4EE48014E2ACEE86DFA5"><enum>(1)</enum><header>Study</header><text>Not
later than 6 months after the date of enactment of this section, the Financial
Stability Oversight Council shall study and make recommendations on
implementing the provisions of this section so as to—</text>
<subparagraph id="HB2FE3C0B3FC44FBC92CA340701741796"><enum>(A)</enum><text>promote and
enhance the safety and soundness of banking entities;</text>
</subparagraph><subparagraph id="HAA41691E03CA417CAEC66DE8D5E3D3D7"><enum>(B)</enum><text>protect taxpayers
and consumers and enhance financial stability by minimizing the risk that
insured depository institutions and the affiliates of insured depository
institutions will engage in unsafe and unsound activities;</text>
</subparagraph><subparagraph id="HE60B015D801A409C8CD8B081359503BA"><enum>(C)</enum><text>limit the
inappropriate transfer of Federal subsidies from institutions that benefit from
deposit insurance and liquidity facilities of the Federal Government to
unregulated entities;</text>
</subparagraph><subparagraph id="H77C70376B31046CE8BD77ADA80B48185"><enum>(D)</enum><text>reduce conflicts
of interest between the self-interest of banking entities and nonbank financial
companies supervised by the Board, and the interests of the customers of such
entities and companies;</text>
</subparagraph><subparagraph id="H5D13220942AB4D4B8933596D63ABBDDC"><enum>(E)</enum><text>limit activities
that have caused undue risk or loss in banking entities and nonbank financial
companies supervised by the Board, or that might reasonably be expected to
create undue risk or loss in such banking entities and nonbank financial
companies supervised by the Board;</text>
</subparagraph><subparagraph id="H4A261DCFEABE4B17A61D9D9D89E90D60"><enum>(F)</enum><text>appropriately
accommodate the business of insurance within an insurance company, subject to
regulation in accordance with the relevant insurance company investment laws,
while protecting the safety and soundness of any banking entity with which such
insurance company is affiliated and of the United States financial system;
and</text>
</subparagraph><subparagraph id="H684BF2C0B1ED4EC78C52B943828577E5"><enum>(G)</enum><text>appropriately time
the divestiture of illiquid assets that are affected by the implementation of
the prohibitions under subsection (a).</text>
</subparagraph></paragraph><paragraph id="HBCCBCBBCB88A483199CC44CF30FA1A86"><enum>(2)</enum><header>Rulemaking</header>
<subparagraph id="H79CA6823E0A54E2185C3372785E7FBEB"><enum>(A)</enum><header>In
general</header><text>Unless otherwise provided in this section, not later than
9 months after the completion of the study under paragraph (1), the appropriate
Federal banking agencies, the Securities and Exchange Commission, and the
Commodity Futures Trading Commission, shall consider the findings of the study
under paragraph (1) and adopt rules to carry out this section, as provided in
subparagraph (B).</text>
</subparagraph><subparagraph id="H7D0087A5F0614912B66EEC2A11FEE241"><enum>(B)</enum><header>Coordinated
rulemaking</header>
<clause id="H2E48645B715C4F60B7FA0311D1C41D54"><enum>(i)</enum><header>Regulatory
authority</header><text>The regulations issued under this paragraph shall be
issued by—</text>
<subclause id="H3A597A8F685441FE8B51D5E2BD02C61A"><enum>(I)</enum><text>the appropriate
Federal banking agencies, jointly, with respect to insured depository
institutions;</text>
</subclause><subclause id="H7388E78E87E1440DA1803F7CED50EF19"><enum>(II)</enum><text>the Board, with
respect to any company that controls an insured depository institution, or that
is treated as a bank holding company for purposes of section 8 of the
International Banking Act, any nonbank financial company supervised by the
Board, and any subsidiary of any of the foregoing (other than a subsidiary for
which an agency described in subclause (I), (III), or (IV) is the primary
financial regulatory agency);</text>
</subclause><subclause id="H2824A2389238456BB27539CC38F78025"><enum>(III)</enum><text>the Commodity
Futures Trading Commission, with respect to any entity for which the Commodity
Futures Trading Commission is the primary financial regulatory agency, as
defined in section 2 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act; and</text>
</subclause><subclause id="H750C2B26E2DA4E4FB6C3A10CB03881C7"><enum>(IV)</enum><text>the Securities
and Exchange Commission, with respect to any entity for which the Securities
and Exchange Commission is the primary financial regulatory agency, as defined
in section 2 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act.</text>
</subclause></clause><clause id="H79D656F517E34488A63A2E7468F7593F"><enum>(ii)</enum><header>Coordination,
consistency, and comparability</header><text>In developing and issuing
regulations pursuant to this section, the appropriate Federal banking agencies,
the Securities and Exchange Commission, and the Commodity Futures Trading
Commission shall consult and coordinate with each other, as appropriate, for
the purposes of assuring, to the extent possible, that such regulations are
comparable and provide for consistent application and implementation of the
applicable provisions of this section to avoid providing advantages or imposing
disadvantages to the companies affected by this subsection and to protect the
safety and soundness of banking entities and nonbank financial companies
supervised by the Board.</text>
</clause><clause id="H247CF082FA6B4BFBBE429AF0EA6F845A"><enum>(iii)</enum><header>Council
role</header><text>The Chairperson of the Financial Stability Oversight Council
shall be responsible for coordination of the regulations issued under this
section.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H60885CFF6B8C4FDDB91CE17DB85EFA67"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H9AA43B4B02574DA3ACE66058283FD863"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraphs (2) and (3), this
section shall take effect on the earlier of—</text>
<subparagraph id="H2DE449B1A7F342A382C73053D473AEEB"><enum>(A)</enum><text>12 months after
the date of the issuance of final rules under subsection (b); or</text>
</subparagraph><subparagraph id="HCD3AE3F53B9A4095B7660603FBE6349C"><enum>(B)</enum><text>2 years after the
date of enactment of this section.</text>
</subparagraph></paragraph><paragraph id="H384680118B8847FBB7CBCE2190467879"><enum>(2)</enum><header>Conformance
period for divestiture</header><text>A banking entity or nonbank financial
company supervised by the Board shall bring its activities and investments into
compliance with the requirements of this section not later than 2 years after
the date on which the requirements become effective pursuant to this section or
2 years after the date on which the entity or company becomes a nonbank
financial company supervised by the Board. The Board may, by rule or order,
extend this two-year period for not more than one year at a time, if, in the
judgment of the Board, such an extension is consistent with the purposes of
this section and would not be detrimental to the public interest. The
extensions made by the Board under the preceding sentence may not exceed an
aggregate of 3 years.</text>
</paragraph><paragraph id="H17C2E09F49964DEAA2C6B02790DCD4D7"><enum>(3)</enum><header>Extended
transition for illiquid funds</header>
<subparagraph id="H1CEFF7262B5545F0B3F59E64963D6277"><enum>(A)</enum><header>Application</header><text>The
Board may, upon the application of a banking entity, extend the period during
which the banking entity, to the extent necessary to fulfill a contractual
obligation that was in effect on May 1, 2010, may take or retain its equity,
partnership, or other ownership interest in, or otherwise provide additional
capital to, an illiquid fund.</text>
</subparagraph><subparagraph id="H4165502B9E7F422EA9E2F6D410B38ED4"><enum>(B)</enum><header>Time limit on
approval</header><text>The Board may grant 1 extension under subparagraph (A),
which may not exceed 5 years.</text>
</subparagraph></paragraph><paragraph id="HCA7715F875654777AC81C64FC688F2B1"><enum>(4)</enum><header>Divestiture
required</header><text>Except as otherwise provided in subsection (d)(1)(G), a
banking entity may not engage in any activity prohibited under subsection
(a)(1)(B) after the earlier of—</text>
<subparagraph id="H2060317F47184DD0A339C2D705E4DC6A"><enum>(A)</enum><text>the date on which
the contractual obligation to invest in the illiquid fund terminates;
and</text>
</subparagraph><subparagraph id="HDF469483880B4FAD9B0E2617484ED9AD"><enum>(B)</enum><text>the date on which
any extensions granted by the Board under paragraph (3) expire.</text>
</subparagraph></paragraph><paragraph id="H09E062B14DDC400B9C1CFC4EFA8A96CB"><enum>(5)</enum><header>Additional
capital during transition period</header><text>Notwithstanding paragraph (2),
on the date on which the rules are issued under subsection (b)(2), the
appropriate Federal banking agencies, the Securities and Exchange Commission,
and the Commodity Futures Trading Commission shall issue rules, as provided in
subsection (b)(2), to impose additional capital requirements, and any other
restrictions, as appropriate, on any equity, partnership, or ownership interest
in or sponsorship of a hedge fund or private equity fund by a banking
entity.</text>
</paragraph><paragraph id="HE30592729EA6458BB8BE55CDC1852608"><enum>(6)</enum><header>Special
rulemaking</header><text>Not later than 6 months after the date of enactment of
this section, the Board shall issues rules to implement paragraphs (2) and
(3).</text>
</paragraph></subsection><subsection id="HCE7918DD3AFD418A8E4F6DAD443D844B"><enum>(d)</enum><header>Permitted
activities</header>
<paragraph id="H8AD09CE8E9614424B04C9E38D5CB866A"><enum>(1)</enum><header>In
general</header><text>Notwithstanding the restrictions under subsection (a), to
the extent permitted by any other provision of Federal or State law, and
subject to the limitations under paragraph (2) and any restrictions or
limitations that the appropriate Federal banking agencies, the Securities and
Exchange Commission, and the Commodity Futures Trading Commission, may
determine, the following activities (in this section referred to as
<quote>permitted activities</quote>) are permitted:</text>
<subparagraph id="HAF8832098C544F459A3994CCAD651EDE"><enum>(A)</enum><text>The purchase,
sale, acquisition, or disposition of obligations of the United States or any
agency thereof, obligations, participations, or other instruments of or issued
by the Government National Mortgage Association, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, a Federal Home Loan
Bank, the Federal Agricultural Mortgage Corporation, or a Farm Credit System
institution chartered under and subject to the provisions of the Farm Credit
Act of 1971 (12 U.S.C. 2001 et seq.), and obligations of any State or of any
political subdivision thereof.</text>
</subparagraph><subparagraph id="HBD77F70171C9431E8805F97EF0384EB1"><enum>(B)</enum><text>The purchase,
sale, acquisition, or disposition of securities and other instruments described
in subsection (h)(4) in connection with underwriting or market-making-related
activities, to the extent that any such activities permitted by this
subparagraph are designed not to exceed the reasonably expected near term
demands of clients, customers, or counterparties.</text>
</subparagraph><subparagraph id="H21785F4BC3DA49C086C456F112B1A0C2"><enum>(C)</enum><text>Risk-mitigating
hedging activities in connection with and related to individual or aggregated
positions, contracts, or other holdings of a banking entity that are designed
to reduce the specific risks to the banking entity in connection with and
related to such positions, contracts, or other holdings.</text>
</subparagraph><subparagraph id="H1246E18006A44F0F8087BAD155B84A11"><enum>(D)</enum><text>The purchase,
sale, acquisition, or disposition of securities and other instruments described
in subsection (h)(4) on behalf of customers.</text>
</subparagraph><subparagraph id="H0F19B95A90E347F9A953DCE4C8297F4E"><enum>(E)</enum><text>Investments in one
or more small business investment companies, as defined in section 102 of the
Small Business Investment Act of 1958 (15 U.S.C. 662), investments designed
primarily to promote the public welfare, of the type permitted under paragraph
(11) of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24), or investments that are qualified rehabilitation expenditures with respect
to a qualified rehabilitated building or certified historic structure, as such
terms are defined in section 47 of the Internal Revenue Code of 1986 or a
similar State historic tax credit program.</text>
</subparagraph><subparagraph id="H1562FA538DB648D38584E23FCE4BA8CF"><enum>(F)</enum><text>The purchase,
sale, acquisition, or disposition of securities and other instruments described
in subsection (h)(4) by a regulated insurance company directly engaged in the
business of insurance for the general account of the company and by any
affiliate of such regulated insurance company, provided that such activities by
any affiliate are solely for the general account of the regulated insurance
company, if—</text>
<clause id="H967A5E9E0AA841D8AF3B3D21A35F91A2"><enum>(i)</enum><text>the purchase,
sale, acquisition, or disposition is conducted in compliance with, and subject
to, the insurance company investment laws, regulations, and written guidance of
the State or jurisdiction in which each such insurance company is domiciled;
and</text>
</clause><clause id="H407256ED304A421EBAE8792BB805C55D"><enum>(ii)</enum><text>the appropriate
Federal banking agencies, after consultation with the Financial Stability
Oversight Council and the relevant insurance commissioners of the States and
territories of the United States, have not jointly determined, after notice and
comment, that a particular law, regulation, or written guidance described in
clause (i) is insufficient to protect the safety and soundness of the banking
entity, or of the financial stability of the United States.</text>
</clause></subparagraph><subparagraph id="H713378DFB24342E3BE9CBAE53159348A"><enum>(G)</enum><text>Organizing and
offering a private equity or hedge fund, including serving as a general
partner, managing member, or trustee of the fund and in any manner selecting or
controlling (or having employees, officers, directors, or agents who
constitute) a majority of the directors, trustees, or management of the fund,
including any necessary expenses for the foregoing, only if—</text>
<clause id="H4BBF613FEE6C490989B004B8437ED8FF"><enum>(i)</enum><text>the banking entity
provides bona fide trust, fiduciary, or investment advisory services;</text>
</clause><clause id="HA268A2B481A048B89C040E264B86BE40"><enum>(ii)</enum><text>the fund is
organized and offered only in connection with the provision of bona fide trust,
fiduciary, or investment advisory services and only to persons that are
customers of such services of the banking entity;</text>
</clause><clause id="HD4DB443126C04575A7C117DB37848857"><enum>(iii)</enum><text>the banking
entity does not acquire or retain an equity interest, partnership interest, or
other ownership interest in the funds except for a de minimis investment
subject to and in compliance with paragraph (4);</text>
</clause><clause id="H7E7299158EFC41C8A0560135FEC4FD76"><enum>(iv)</enum><text>the banking
entity complies with the restrictions under paragraphs (1) and (2) of
subparagraph (f);</text>
</clause><clause id="HFFC1034788DE47DB97C8A56203C05333"><enum>(v)</enum><text>the banking entity
does not, directly or indirectly, guarantee, assume, or otherwise insure the
obligations or performance of the hedge fund or private equity fund or of any
hedge fund or private equity fund in which such hedge fund or private equity
fund invests;</text>
</clause><clause id="H8A78F7A2D81E4AF09C6BFEB137BF78AA"><enum>(vi)</enum><text>the banking
entity does not share with the hedge fund or private equity fund, for
corporate, marketing, promotional, or other purposes, the same name or a
variation of the same name;</text>
</clause><clause id="HA2E28B057A9A46989721B641AE6B519E"><enum>(vii)</enum><text>no director or
employee of the banking entity takes or retains an equity interest, partnership
interest, or other ownership interest in the hedge fund or private equity fund,
except for any director or employee of the banking entity who is directly
engaged in providing investment advisory or other services to the hedge fund or
private equity fund; and</text>
</clause><clause id="H989F595011D74726A1B4E553195B8404"><enum>(viii)</enum><text>the banking
entity discloses to prospective and actual investors in the fund, in writing,
that any losses in such hedge fund or private equity fund are borne solely by
investors in the fund and not by the banking entity, and otherwise complies
with any additional rules of the appropriate Federal banking agencies, the
Securities and Exchange Commission, or the Commodity Futures Trading
Commission, as provided in subsection (b)(2), designed to ensure that losses in
such hedge fund or private equity fund are borne solely by investors in the
fund and not by the banking entity.</text>
</clause></subparagraph><subparagraph id="H1C9EE10CA72E4BB190A221ED936A74DB"><enum>(H)</enum><text>Proprietary
trading conducted by a banking entity pursuant to paragraph (9) or (13) of
section 4(c), provided that the trading occurs solely outside of the United
States and that the banking entity is not directly or indirectly controlled by
a banking entity that is organized under the laws of the United States or of
one or more States.</text>
</subparagraph><subparagraph id="H56AD9738A5E04912BA249E63A7EA5328"><enum>(I)</enum><text>The acquisition or
retention of any equity, partnership, or other ownership interest in, or the
sponsorship of, a hedge fund or a private equity fund by a banking entity
pursuant to paragraph (9) or (13) of section 4(c) solely outside of the United
States, provided that no ownership interest in such hedge fund or private
equity fund is offered for sale or sold to a resident of the United States and
that the banking entity is not directly or indirectly controlled by a banking
entity that is organized under the laws of the United States or of one or more
States.</text>
</subparagraph><subparagraph id="H0C620AC606CD463FB0E0CEC7D787A8B6"><enum>(J)</enum><text>Such other
activity as the appropriate Federal banking agencies, the Securities and
Exchange Commission, and the Commodity Futures Trading Commission determine, by
rule, as provided in subsection (b)(2), would promote and protect the safety
and soundness of the banking entity and the financial stability of the United
States.</text>
</subparagraph></paragraph><paragraph id="H1130224193BC47AFBBD9A0B0DEADBE6C"><enum>(2)</enum><header>Limitation on
permitted activities</header>
<subparagraph id="H85322FFD9B4440F59CF526B6BD1A52D2"><enum>(A)</enum><header>In
general</header><text>No transaction, class of transactions, or activity may be
deemed a permitted activity under paragraph (1) if the transaction, class of
transactions, or activity—</text>
<clause id="HE1425F752668450BAD93DCA76F49B5DA"><enum>(i)</enum><text>would involve or
result in a material conflict of interest (as such term shall be defined by
rule as provided in subsection (b)(2)) between the banking entity and its
clients, customers, or counterparties;</text>
</clause><clause id="H7874093691254FF5BA7281C5981CA801"><enum>(ii)</enum><text>would result,
directly or indirectly, in a material exposure by the banking entity to
high-risk assets or high-risk trading strategies (as such terms shall be
defined by rule as provided in subsection (b)(2));</text>
</clause><clause id="H645B7DA4791E45B785757EA154930CA9"><enum>(iii)</enum><text>would pose a
threat to the safety and soundness of such banking entity; or</text>
</clause><clause id="HE6E1B7371A644B978CEA6E515D6CF052"><enum>(iv)</enum><text>would pose a
threat to the financial stability of the United States.</text>
</clause></subparagraph><subparagraph id="H6A94C013CFD34E43B3156ECC02E6BBD8"><enum>(B)</enum><header>Rulemaking</header><text>The
appropriate Federal banking agencies, the Securities and Exchange Commission,
and the Commodity Futures Trading Commission shall issue regulations to
implement subparagraph (A), as part of the regulations issued under subsection
(b)(2).</text>
</subparagraph></paragraph><paragraph id="HBBA32A636DA844F983291046D328A42F"><enum>(3)</enum><header>Capital and
quantitative limitations</header><text>The appropriate Federal banking
agencies, the Securities and Exchange Commission, and the Commodity Futures
Trading Commission shall, as provided in subsection (b)(2), adopt rules
imposing additional capital requirements and quantitative limitations,
including diversification requirements, regarding the activities permitted
under this section if the appropriate Federal banking agencies, the Securities
and Exchange Commission, and the Commodity Futures Trading Commission determine
that additional capital and quantitative limitations are appropriate to protect
the safety and soundness of banking entities engaged in such activities.</text>
</paragraph><paragraph id="H9B61CBB46DFD43B885A804F2DA3001ED"><enum>(4)</enum><header>De minimis
investment</header>
<subparagraph id="H93CFB4018CDA4D7891CB853402B0E6F2"><enum>(A)</enum><header>In
general</header><text>A banking entity may make and retain an investment in a
hedge fund or private equity fund that the banking entity organizes and offers,
subject to the limitations and restrictions in subparagraph (B) for the
purposes of—</text>
<clause id="H960563008A034C479F9581EF9CEF9B8E"><enum>(i)</enum><text>establishing the
fund and providing the fund with sufficient initial equity for investment to
permit the fund to attract unaffiliated investors; or</text>
</clause><clause id="H4C4397B905074730AC65BEAA863C010E"><enum>(ii)</enum><text>making a de
minimis investment.</text>
</clause></subparagraph><subparagraph id="H9D73521424634B68998334B5652BBFD5"><enum>(B)</enum><header>Limitations and
restrictions on investments</header>
<clause id="H34165D2F0D11466FA427E93B86032A5B"><enum>(i)</enum><header>Requirement to
seek other investors</header><text>A banking entity shall actively seek
unaffiliated investors to reduce or dilute the investment of the banking entity
to the amount permitted under clause (ii).</text>
</clause><clause id="H0CDCEF71E97549379535D0E3C0C4ED8D"><enum>(ii)</enum><header>Limitations on
size of investments</header><text>Notwithstanding any other provision of law,
investments by a banking entity in a hedge fund or private equity fund
shall—</text>
<subclause id="HCD62B0250F8648D788E6E9027EF77990"><enum>(I)</enum><text>not later than 1
year after the date of establishment of the fund, be reduced through
redemption, sale, or dilution to an amount that is not more than 3 percent of
the total ownership interests of the fund;</text>
</subclause><subclause id="H41FC59AA95D043B9A73DA29BE6620436"><enum>(II)</enum><text>be immaterial to
the banking entity, as defined, by rule, pursuant to subsection (b)(2), but in
no case may the aggregate of all of the interests of the banking entity in all
such funds exceed 3 percent of the Tier 1 capital of the banking entity.</text>
</subclause></clause><clause id="H5B306A65EF534F1A95B35E3B4EC299AC"><enum>(iii)</enum><header>Capital</header><text>For
purposes of determining compliance with applicable capital standards under
paragraph (3), the aggregate amount of the outstanding investments by a banking
entity under this paragraph, including retained earnings, shall be deducted
from the assets and tangible equity of the banking entity, and the amount of
the deduction shall increase commensurate with the leverage of the hedge fund
or private equity fund.</text>
</clause></subparagraph><subparagraph id="HA4BC99B5DB8F4EB1BF9D79B55D8DD3A9"><enum>(C)</enum><header>Extension</header><text>Upon
an application by a banking entity, the Board may extend the period of time to
meet the requirements under subparagraph (B)(ii)(I) for 2 additional years, if
the Board finds that an extension would be consistent with safety and soundness
and in the public interest.</text>
</subparagraph></paragraph></subsection><subsection id="H4B1BFCC231224B41A8911C21C2776498"><enum>(e)</enum><header>Anti-evasion</header>
<paragraph id="H9BBECD3D1A9B4044B3824B4C910D17A9"><enum>(1)</enum><header>Rulemaking</header><text>The
appropriate Federal banking agencies, the Securities and Exchange Commission,
and the Commodity Futures Trading Commission shall issue regulations, as part
of the rulemaking provided for in subsection (b)(2), regarding internal
controls and recordkeeping, in order to insure compliance with this
section.</text>
</paragraph><paragraph id="H585404F97AD943D39893DEFDE04C10D3"><enum>(2)</enum><header>Termination of
activities or investment</header><text>Notwithstanding any other provision of
law, whenever an appropriate Federal banking agency, the Securities and
Exchange Commission, or the Commodity Futures Trading Commission, as
appropriate, has reasonable cause to believe that a banking entity or nonbank
financial company supervised by the Board under the respective agency’s
jurisdiction has made an investment or engaged in an activity in a manner that
functions as an evasion of the requirements of this section (including through
an abuse of any permitted activity) or otherwise violates the restrictions
under this section, the appropriate Federal banking agency, the Securities and
Exchange Commission, or the Commodity Futures Trading Commission, as
appropriate, shall order, after due notice and opportunity for hearing, the
banking entity or nonbank financial company supervised by the Board to
terminate the activity and, as relevant, dispose of the investment. Nothing in
this paragraph shall be construed to limit the inherent authority of any
Federal agency or State regulatory authority to further restrict any
investments or activities under otherwise applicable provisions of law.</text>
</paragraph></subsection><subsection id="HB94318294DD04356B11F68EAFB470CE3"><enum>(f)</enum><header>Limitations on
relationships with hedge funds and private equity funds</header>
<paragraph id="H0DD5B475AC704477A41F5ED58A1F759E"><enum>(1)</enum><header>In
general</header><text>No banking entity that serves, directly or indirectly, as
the investment manager, investment adviser, or sponsor to a hedge fund or
private equity fund, or that organizes and offers a hedge fund or private
equity fund pursuant to paragraph (d)(1)(G), and no affiliate of such entity,
may enter into a transaction with the fund, or with any other hedge fund or
private equity fund that is controlled by such fund, that would be a covered
transaction, as defined in section 23A of the Federal Reserve Act (12 U.S.C.
371c), with the hedge fund or private equity fund, as if such banking entity
and the affiliate thereof were a member bank and the hedge fund or private
equity fund were an affiliate thereof.</text>
</paragraph><paragraph id="H635B0B98E8694C7AB986A33F8214D678"><enum>(2)</enum><header>Treatment as
member bank</header><text>A banking entity that serves, directly or indirectly,
as the investment manager, investment adviser, or sponsor to a hedge fund or
private equity fund, or that organizes and offers a hedge fund or private
equity fund pursuant to paragraph (d)(1)(G), shall be subject to section 23B of
the Federal Reserve Act (12 U.S.C. 371c–1), as if such banking entity were a
member bank and such hedge fund or private equity fund were an affiliate
thereof.</text>
</paragraph><paragraph id="H167789B32B044016B84B17BD0D489337"><enum>(3)</enum><header>Permitted
services</header>
<subparagraph id="H3B715C66F3954166B2F78844C143C34A"><enum>(A)</enum><header>In
general</header><text>Notwithstanding paragraph (1), the Board may permit a
banking entity to enter into any prime brokerage transaction with any hedge
fund or private equity fund in which a hedge fund or private equity fund
managed, sponsored, or advised by such banking entity has taken an equity,
partnership, or other ownership interest, if—</text>
<clause id="H91A6FE2F301E46D3823718170C5CB6F8"><enum>(i)</enum><text>the banking entity
is in compliance with each of the limitations set forth in subsection (d)(1)(G)
with regard to a hedge fund or private equity fund organized and offered by
such banking entity;</text>
</clause><clause id="HB36C63C1F7474326826A808DB0E8010B"><enum>(ii)</enum><text>the chief
executive officer (or equivalent officer) of the banking entity certifies in
writing annually (with a duty to update the certification if the information in
the certification materially changes) that the conditions specified in
subsection (d)(1)(g)(v) are satisfied; and</text>
</clause><clause id="H1E6BC09A2A8E41478FD7F0B7F815E56F"><enum>(iii)</enum><text>the Board has
determined that such transaction is consistent with the safe and sound
operation and condition of the banking entity.</text>
</clause></subparagraph><subparagraph id="HF538AE3259094573B98915627B23A08B"><enum>(B)</enum><header>Treatment of
prime brokerage transactions</header><text>For purposes of subparagraph (A), a
prime brokerage transaction described in subparagraph (A) shall be subject to
section 23B of the Federal Reserve Act (12 U.S.C. 371c-1) as if the
counterparty were an affiliate of the banking entity.</text>
</subparagraph></paragraph><paragraph id="HC208F84F764B4D5EB38D77A4F8E97710"><enum>(4)</enum><header>Application to
nonbank financial companies supervised by the board</header><text>The
appropriate Federal banking agencies, the Securities and Exchange Commission,
and the Commodity Futures Trading Commission shall adopt rules, as provided in
subsection (b)(2), imposing additional capital charges or other restrictions
for nonbank financial companies supervised by the Board to address the risks to
and conflicts of interest of banking entities described in paragraphs (1), (2),
and (3) of this subsection.</text>
</paragraph></subsection><subsection id="H1A3A2AFCAE2E4AD9A554B6D27AA01E09"><enum>(g)</enum><header>Rules of
construction</header>
<paragraph id="H75E01DDC9B244AB4B1071F74FF69363F"><enum>(1)</enum><header>Limitation on
contrary authority</header><text>Except as provided in this section,
notwithstanding any other provision of law, the prohibitions and restrictions
under this section shall apply to activities of a banking entity or nonbank
financial company supervised by the Board, even if such activities are
authorized for a banking entity or nonbank financial company supervised by the
Board.</text>
</paragraph><paragraph id="H5CED760AE1E945ABB68D9FD6155B4E3F"><enum>(2)</enum><header>Sale or
securitization of loans</header><text>Nothing in this section shall be
construed to limit or restrict the ability of a banking entity or nonbank
financial company supervised by the Board to sell or securitize loans in a
manner otherwise permitted by law.</text>
</paragraph><paragraph id="H0D2C44E475474B3886E922AB88BB930D"><enum>(3)</enum><header>Authority of
Federal agencies and State regulatory authorities</header><text>Nothing in this
section shall be construed to limit the inherent authority of any Federal
agency or State regulatory authority under otherwise applicable provisions of
law.</text>
</paragraph></subsection><subsection id="H66E41AE7786342CAA21896DFC2A7C55F"><enum>(h)</enum><header>Definitions</header><text>In
this section, the following definitions shall apply:</text>
<paragraph id="H6134A55F87B74CDAAA33611A8BD93001"><enum>(1)</enum><header>Banking
entity</header><text>The term <term>banking entity</term> means any insured
depository institution (as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)), any company that controls an insured
depository institution, or that is treated as a bank holding company for
purposes of section 8 of the International Banking Act of 1978, and any
affiliate or subsidiary of any such entity. For purposes of this paragraph, the
term <quote>insured depository institution</quote> does not include an
institution that functions solely in a trust or fiduciary capacity, if—</text>
<subparagraph id="H04ACD21C69FA48CA8F962A225A5AC79C"><enum>(A)</enum><text>all or
substantially all of the deposits of such institution are in trust funds and
are received in a bona fide fiduciary capacity;</text>
</subparagraph><subparagraph id="HF3CBA288E28C48D7B86E80D77D5EDF97"><enum>(B)</enum><text>no deposits of
such institution which are insured by the Federal Deposit Insurance Corporation
are offered or marketed by or through an affiliate of such institution;</text>
</subparagraph><subparagraph id="H8608EB839A0343EE8A7414CA024C5426"><enum>(C)</enum><text>such institution
does not accept demand deposits or deposits that the depositor may withdraw by
check or similar means for payment to third parties or others or make
commercial loans; and</text>
</subparagraph><subparagraph id="HABE27F51A73846B595E0A972E2D2EAB8"><enum>(D)</enum><text>such institution
does not—</text>
<clause id="HC8E01C2A473343E2915BD36E1407490D"><enum>(i)</enum><text>obtain payment or
payment related services from any Federal Reserve bank, including any service
referred to in section 11A of the Federal Reserve Act (12 U.S.C. 248a);
or</text>
</clause><clause id="H586C85BCFCF4459BB51151A9C8DAB477"><enum>(ii)</enum><text>exercise discount
or borrowing privileges pursuant to section 19(b)(7) of the Federal Reserve Act
(12 U.S.C. 461(b)(7)).</text>
</clause></subparagraph></paragraph><paragraph id="H11E85597B4EB411BBA29AC79297AB7BC"><enum>(2)</enum><header>Hedge fund;
private equity fund</header><text>The terms <term>hedge fund</term> and
<term>private equity fund</term> mean an issuer that would be an investment
company, as defined in the Investment Company Act of 1940 (15 U.S.C. 80a-1 et
seq.), but for section 3(c)(1) or 3(c)(7) of that Act, or such similar funds as
the appropriate Federal banking agencies, the Securities and Exchange
Commission, and the Commodity Futures Trading Commission may, by rule, as
provided in subsection (b)(2), determine.</text>
</paragraph><paragraph id="H86176064465040DBACA73E0FABAF636B"><enum>(3)</enum><header>Nonbank
financial company supervised by the board</header><text>The term <term>nonbank
financial company supervised by the Board</term> means a nonbank financial
company supervised by the Board of Governors, as defined in section 102 of the
Financial Stability Act of 2010.</text>
</paragraph><paragraph id="HC2C0735D86204DD0B9BFEC6922E7E8AE"><enum>(4)</enum><header>Proprietary
trading</header><text>The term <term>proprietary trading</term>, when used with
respect to a banking entity or nonbank financial company supervised by the
Board, means engaging as a principal for the trading account of the banking
entity or nonbank financial company supervised by the Board in any transaction
to purchase or sell, or otherwise acquire or dispose of, any security, any
derivative, any contract of sale of a commodity for future delivery, any option
on any such security, derivative, or contract, or any other security or
financial instrument that the appropriate Federal banking agencies, the
Securities and Exchange Commission, and the Commodity Futures Trading
Commission may, by rule as provided in subsection (b)(2), determine.</text>
</paragraph><paragraph id="H9AB88CFF53094F6FA5CE16632345FDF5"><enum>(5)</enum><header>Sponsor</header><text>The
term to <term>sponsor</term> a fund means—</text>
<subparagraph id="H67F13CFF73674D35AEAC20392C137686"><enum>(A)</enum><text>to serve as a
general partner, managing member, or trustee of a fund;</text>
</subparagraph><subparagraph id="HB17FA8B03FD84AC692B220949B2D526D"><enum>(B)</enum><text>in any manner to
select or to control (or to have employees, officers, or directors, or agents
who constitute) a majority of the directors, trustees, or management of a fund;
or</text>
</subparagraph><subparagraph id="HAC29F2B41E6D4089889446F47CDC359E"><enum>(C)</enum><text>to share with a
fund, for corporate, marketing, promotional, or other purposes, the same name
or a variation of the same name.</text>
</subparagraph></paragraph><paragraph id="H5797D7F3C543445D91D783F4A24CDF66"><enum>(6)</enum><header>Trading
account</header><text>The term <term>trading account</term> means any account
used for acquiring or taking positions in the securities and instruments
described in paragraph (4) principally for the purpose of selling in the near
term (or otherwise with the intent to resell in order to profit from short-term
price movements), and any such other accounts as the appropriate Federal
banking agencies, the Securities and Exchange Commission, and the Commodity
Futures Trading Commission may, by rule as provided in subsection (b)(2),
determine.</text>
</paragraph><paragraph id="H36B85A2EF7104EE89ABC3AEA109FBAF7"><enum>(7)</enum><header>Illiquid
fund</header>
<subparagraph id="H54B79BFF124348E484E647963D85E591"><enum>(A)</enum><header>In
general</header><text>The term <term>illiquid fund</term> means a hedge fund or
private equity fund that—</text>
<clause id="H64FD1A7407D14C609C1D2DF6775C6DCA"><enum>(i)</enum><text>as
of May 1, 2010, was principally invested in, or was invested and contractually
committed to principally invest in, illiquid assets, such as portfolio
companies, real estate investments, and venture capital investments; and</text>
</clause><clause id="H22899452517E43CA971A999E7E78FBC4"><enum>(ii)</enum><text>makes all
investments pursuant to, and consistent with, an investment strategy to
principally invest in illiquid assets. In issuing rules regarding this
subparagraph, the Board shall take into consideration the terms of investment
for the hedge fund or private equity fund, including contractual obligations,
the ability of the fund to divest of assets held by the fund, and any other
factors that the Board determines are appropriate.</text>
</clause></subparagraph><subparagraph id="H44ECF6F5ED694D039C3CACD62D7C346B"><enum>(B)</enum><header>Hedge
fund</header><text>For the purposes of this paragraph, the term <quote>hedge
fund</quote> means any fund identified under subsection (h)(2), and does not
include a private equity fund, as such term is used in section 203(m) of the
Investment Advisers Act of 1940 (15 U.S.C.
80b-3(m)).</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H07DBB815DC504919BDC4639047DB1BCA"><enum>620.</enum><header>Study of bank
investment activities</header>
<subsection id="HA2C4FCA7F00B40289F41CFF582A33533"><enum>(a)</enum><header>Study</header>
<paragraph id="HE5A6A7AE3DF84DA094D4F505FF67BE91"><enum>(1)</enum><header>In
general</header><text>Not later than 18 months after the date of enactment of
this Act, the appropriate Federal banking agencies shall jointly review and
prepare a report on the activities that a banking entity, as such term is
defined in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et. seq.), may
engage in under Federal and State law, including activities authorized by
statute and by order, interpretation and guidance.</text>
</paragraph><paragraph id="HABC2812CFF8346FB9CBF59FACF146B18"><enum>(2)</enum><header>Content</header><text>In
carrying out the study under paragraph (1), the appropriate Federal banking
agencies shall review and consider—</text>
<subparagraph id="H28FE5473F642456D838D3CB8F5CD3398"><enum>(A)</enum><text>the type of
activities or investments;</text>
</subparagraph><subparagraph id="H6D1F338512974937824E4FCC0ED53575"><enum>(B)</enum><text>any financial,
operational, managerial, or reputation risks associated with or presented as a
result of the banking entity engaged in the activity or making the investment;
and</text>
</subparagraph><subparagraph id="H10BAC85424414730AB6FDD03430B20C5"><enum>(C)</enum><text>risk mitigation
activities undertaken by the banking entity with regard to the risks.</text>
</subparagraph></paragraph></subsection><subsection id="H57F3F3C8FB5F4A9FA11D6A7B97A27F96"><enum>(b)</enum><header>Report and
recommendations to the council and to congress</header><text>The appropriate
Federal banking agencies shall submit to the Council, the Committee on
Financial Services of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate the study conducted pursuant
to subsection (a) no later than 2 months after its completion. In addition to
the information described in subsection (a), the report shall include
recommendations regarding—</text>
<paragraph id="HF7CCDBF2FBC24F79A9D025526B335E67"><enum>(1)</enum><text>whether each
activity or investment has or could have a negative effect on the safety and
soundness of the banking entity or the United States financial system;</text>
</paragraph><paragraph id="H42C1469F792C4049A3A8981C38829203"><enum>(2)</enum><text>the
appropriateness of the conduct of each activity or type of investment by
banking entities; and</text>
</paragraph><paragraph id="HD8838BC826BD474285333ED82FA5C9E5"><enum>(3)</enum><text>additional
restrictions as may be necessary to address risks to safety and soundness
arising from the activities or types of investments described in subsection
(a).</text>
</paragraph></subsection></section><section id="H7F6BC1517F17478FA85442FD990FC87C"><enum>621.</enum><header>Conflicts of
interest</header>
<subsection id="H8F98482F12A54A8EB9939BF306A04F03"><enum>(a)</enum><header>In
general</header><text>The Securities Act of 1933 (15 U.S.C. 77a et seq.) is
amended by inserting after section 27A the following:</text>
<quoted-block display-inline="no-display-inline" id="H2034DDFCB0964976A6F8672A0C859D03" style="OLC">
<section id="H96275EB2445E43BE8EE8605C76120CE3"><enum>27B.</enum><header>Conflicts of
interest relating to certain securitizations</header>
<subsection id="H76C01028976C49D4AF6FE7C95F5283DB"><enum>(a)</enum><header>In
general</header><text>An underwriter, placement agent, initial purchaser, or
sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed
security (as such term is defined in section 3 of the Securities and Exchange
Act of 1934 (15 U.S.C. 78c), which for the purposes of this section shall
include a synthetic asset-backed security), shall not, at any time for a period
ending on the date that is one year after the date of the first closing of the
sale of the asset-backed security, engage in any transaction that would involve
or result in any material conflict of interest with respect to any investor in
a transaction arising out of such activity.</text>
</subsection><subsection id="H9BC1E15533D84AD3B36AF411AC1BBF39"><enum>(b)</enum><header>Rulemaking</header><text>Not
later than 270 days after the date of enactment of this section, the Commission
shall issue rules for the purpose of implementing subsection (a).</text>
</subsection><subsection id="HF92591C7BCAC4E90865C4E3FE8AA8E1D"><enum>(c)</enum><header>Exception</header><text>The
prohibitions of subsection (a) shall not apply to—</text>
<paragraph id="H5758716FFE004EBBA37B579BF32ADEBC"><enum>(1)</enum><text>risk-mitigating
hedging activities in connection with positions or holdings arising out of the
underwriting, placement, initial purchase, or sponsorship of an asset-backed
security, provided that such activities are designed to reduce the specific
risks to the underwriter, placement agent, initial purchaser, or sponsor
associated with positions or holdings arising out of such underwriting,
placement, initial purchase, or sponsorship; or</text>
</paragraph><paragraph id="HF0E876E088A44D3E872C27583C6B7A62"><enum>(2)</enum><text>purchases or sales
of asset-backed securities made pursuant to and consistent with—</text>
<subparagraph id="HB9DF56B37E2A4828B5C763EB15AFA93D"><enum>(A)</enum><text>commitments of the
underwriter, placement agent, initial purchaser, or sponsor, or any affiliate
or subsidiary of any such entity, to provide liquidity for the asset-backed
security, or</text>
</subparagraph><subparagraph id="H701D96E6BBC54795A1F35BB7F7079CC8"><enum>(B)</enum><text>bona fide
market-making in the asset backed security.</text>
</subparagraph></paragraph></subsection><subsection id="H6D12E132675C4E0B94DC933C1635CF99"><enum>(d)</enum><header>Rule of
construction</header><text>This subsection shall not otherwise limit the
application of section 15G of the Securities Exchange Act of
1934.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0BE80157AD784A61BFC07DB648D58E33"><enum>(b)</enum><header>Effective
date</header><text>Section 27B of the Securities Act of 1933, as added by this
section, shall take effect on the effective date of final rules issued by the
Commission under subsection (b) of such section 27B, except that subsections
(b) and (d) of such section 27B shall take effect on the date of enactment of
this Act.</text>
</subsection></section><section id="H2015AC5B14244A4DB085DA64CFDE8267"><enum>622.</enum><header>Concentration
limits on large financial firms</header><text display-inline="no-display-inline">The Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBB2D51273B1E4E99BBC53F82DDA1CF46" style="OLC">
<section id="HBC99F6144F0E4F60BD1DB37E93B48F62"><enum>14.</enum><header>Concentration
limits on large financial firms</header>
<subsection id="H8E8502EB72744632BFACE838CDB4B7B7"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H5534718DEE2E40149282F2861203D46C"><enum>(1)</enum><text>the term
<term>Council</term> means the Financial Stability Oversight Council;</text>
</paragraph><paragraph id="HA433327D87F447EABD06966DF56BA1BC"><enum>(2)</enum><text>the term
<term>financial company</term> means—</text>
<subparagraph id="H27B67CC91BF247C9813C9907148742A8"><enum>(A)</enum><text>an insured
depository institution;</text>
</subparagraph><subparagraph id="HADD911C9FC1D4A8D87970A579AA96160"><enum>(B)</enum><text>a bank holding
company;</text>
</subparagraph><subparagraph id="H9AF3A77BCD4040F58CF53EB72574851F"><enum>(C)</enum><text>a savings and loan
holding company;</text>
</subparagraph><subparagraph id="H5CE25110F65D4D9CA67E87181872C930"><enum>(D)</enum><text>a company that
controls an insured depository institution;</text>
</subparagraph><subparagraph id="H774C64049BD94687909ECA8C5BD2FB29"><enum>(E)</enum><text>a nonbank
financial company supervised by the Board under title I of the Dodd-Frank Wall
Street Reform and Consumer Protection Act; and</text>
</subparagraph><subparagraph id="H525F2F6B773D460E9E02F10033F810CE"><enum>(F)</enum><text>a foreign bank or
company that is treated as a bank holding company for purposes of this Act;
and</text>
</subparagraph></paragraph><paragraph id="HF6FF627D687A49598B27B62ED5D1F0A9"><enum>(3)</enum><text>the term
<term>liabilities</term> means—</text>
<subparagraph id="HAF80E9A6D4DB44D9A964DDEB078BAA50"><enum>(A)</enum><text>with respect to a
United States financial company—</text>
<clause id="HFAB05E96368C4A59AF5FE5BF8A43D92C"><enum>(i)</enum><text>the total
risk-weighted assets of the financial company, as determined under the
risk-based capital rules applicable to bank holding companies, as adjusted to
reflect exposures that are deducted from regulatory capital; less</text>
</clause><clause id="H7468BC4801D24E0696642C06EE0958ED"><enum>(ii)</enum><text>the total
regulatory capital of the financial company under the risk-based capital rules
applicable to bank holding companies;</text>
</clause></subparagraph><subparagraph id="H51EF869DDD6D4727989C642D8AAD908D"><enum>(B)</enum><text>with respect to a
foreign-based financial company—</text>
<clause id="H396C0789E95A4D24B69EFB4156A38B94"><enum>(i)</enum><text>the total
risk-weighted assets of the United States operations of the financial company,
as determined under the applicable risk-based capital rules, as adjusted to
reflect exposures that are deducted from regulatory capital; less</text>
</clause><clause id="H27E0B6A761A54BCE90FBF04432664BA3"><enum>(ii)</enum><text>the total
regulatory capital of the United States operations of the financial company, as
determined under the applicable risk-based capital rules; and</text>
</clause></subparagraph><subparagraph id="H31416797BE7744AD9794A79230AC3269"><enum>(C)</enum><text>with respect to an
insurance company or other nonbank financial company supervised by the Board,
such assets of the company as the Board shall specify by rule, in order to
provide for consistent and equitable treatment of such companies.</text>
</subparagraph></paragraph></subsection><subsection id="HF50E206426A6483D99762C2AE5731EA5"><enum>(b)</enum><header>Concentration
limit</header><text>Subject to the recommendations by the Council under
subsection (e), a financial company may not merge or consolidate with, acquire
all or substantially all of the assets of, or otherwise acquire control of,
another company, if the total consolidated liabilities of the acquiring
financial company upon consummation of the transaction would exceed 10 percent
of the aggregate consolidated liabilities of all financial companies at the end
of the calendar year preceding the transaction.</text>
</subsection><subsection id="H6D1A3E5A0F354E099E33030B57B80623"><enum>(c)</enum><header>Exception to
concentration limit</header><text>With the prior written consent of the Board,
the concentration limit under subsection (b) shall not apply to an
acquisition—</text>
<paragraph id="HDF4A89D0A7E145428C411328CCAEA8F6"><enum>(1)</enum><text>of a bank in
default or in danger of default;</text>
</paragraph><paragraph id="HC2999D78510F46E19EA2F0477F8B6B5E"><enum>(2)</enum><text>with respect to
which assistance is provided by the Federal Deposit Insurance Corporation under
section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c));
or</text>
</paragraph><paragraph id="H14DE707103C141638C81462156469EB2"><enum>(3)</enum><text>that would result
only in a de minimis increase in the liabilities of the financial
company.</text>
</paragraph></subsection><subsection id="HD7DD421547054FF1A54753A1B6A04B45"><enum>(d)</enum><header>Rulemaking and
guidance</header><text>The Board shall issue regulations implementing this
section in accordance with the recommendations of the Council under subsection
(e), including the definition of terms, as necessary. The Board may issue
interpretations or guidance regarding the application of this section to an
individual financial company or to financial companies in general.</text>
</subsection><subsection id="H9371E0E68E8E41BC996100469AF42337"><enum>(e)</enum><header>Council study
and rulemaking</header>
<paragraph id="H04E9B72F1B4E454E8C8389464AC044C8"><enum>(1)</enum><header>Study and
recommendations</header><text>Not later than 6 months after the date of
enactment of this section, the Council shall—</text>
<subparagraph id="H019FD5BFE5494CECA1C5A8CF6435D5AF"><enum>(A)</enum><text>complete a study
of the extent to which the concentration limit under this section would affect
financial stability, moral hazard in the financial system, the efficiency and
competitiveness of United States financial firms and financial markets, and the
cost and availability of credit and other financial services to households and
businesses in the United States; and</text>
</subparagraph><subparagraph id="HB3BDCB16863E48AAB5FD1C14EBAFCACB"><enum>(B)</enum><text>make
recommendations regarding any modifications to the concentration limit that the
Council determines would more effectively implement this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFB70A0AABA2D41ADBF40232973C1E111"><enum>(2)</enum><header>Rulemaking</header><text>Not
later than 9 months after the date of completion of the study under paragraph
(1), and notwithstanding subsections (b) and (d), the Board shall issue final
regulations implementing this section, which shall reflect any recommendations
by the Council under paragraph
(1)(B).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB2162BEF07054761BB4D18722583D025"><enum>623.</enum><header>Interstate
merger transactions</header>
<subsection id="HB758E0F902DF4BE68830F78903C094B3"><enum>(a)</enum><header>Interstate
merger transactions</header><text>Section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H0A813923EFA74B54B26883790376EF6D" style="OLC">
<paragraph id="H6DC54902A2914023B0224D4F462BB1DB" indent="up1"><enum>(13)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H40732C088E6A436EA353CA44B5092F39"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H16D49617414340628ABBB193F35FE9A5" indent="up1"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="HE6B826AF41E8460BA41D54E28D54E650" indent="up1"><enum>(C)</enum><text>In this paragraph—</text>
<clause id="H32F117FEE4AB45E4B9B2C5B8BA18C455"><enum>(i)</enum><text>the term <term>interstate merger
transaction</term> means a merger transaction involving 2 or more insured
depository institutions that have different home States and that are not
affiliates; and</text>
</clause><clause id="H6578510905F648D48EFD8BAF885C4168"><enum>(ii)</enum><text>the term <term>home State</term>
means—</text>
<subclause id="H7D217A38CC0545FF94A12A478F49F595"><enum>(I)</enum><text>with respect to a national bank,
the State in which the main office of the bank is located;</text>
</subclause><subclause id="HBC72581C991944D8BF67D469402525AE"><enum>(II)</enum><text>with respect to a State bank or
State savings association, the State by which the State bank or State savings
association is chartered; and</text>
</subclause><subclause id="H6A856542685A401F986BC03E1C30D057"><enum>(III)</enum><text>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.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H37FB6C793FA842BCBA2852B8E0D973F2"><enum>(b)</enum><header>Acquisitions by
Bank Holding Companies</header>
<paragraph id="H82EE5E8017F447F7ACE357D97DDB0E6D"><enum>(1)</enum><header>In
general</header><text>Section 4 of the Bank Holding Company Act of 1956 (12
U.S.C. 1843) is amended—</text>
<subparagraph id="H83E830D75549427C8667FBA9FA5817B3"><enum>(A)</enum><text>in subsection (i),
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA6812C3B60EB47219D5A78437A9BDA5A" style="OLC">
<paragraph id="HF136993E8383467D8A0D3005E297223C"><enum>(8)</enum><header>Interstate
acquisitions</header>
<subparagraph id="H73FD9E7C4B954A5F9C69DF3CDE9E76E1"><enum>(A)</enum><header>In
general</header><text>The Board may not approve an application by a bank
holding company to acquire an insured depository institution under subsection
(c)(8) or any other provision of this Act if—</text>
<clause id="HC41A6792B2DF4634B27EE09974068A41"><enum>(i)</enum><text>the home State of
such insured depository institution is a State other than the home State of the
bank holding company; and</text>
</clause><clause id="HF62F53B15C7A4E21BB9147731CEFF595"><enum>(ii)</enum><text>the applicant
(including all insured depository institutions which are affiliates of the
applicant) controls, or 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.</text>
</clause></subparagraph><subparagraph id="H8F1FC61E46894C628E8AEE60655CE8CA"><enum>(B)</enum><header>Exception</header><text>Subparagraph
(A) shall not apply to an acquisition that involves an insured depository
institution in default or in danger of default, or with respect to which the
Federal Deposit Insurance Corporation provides assistance under section 13 of
the Federal Deposit Insurance Act (12 U.S.C.
1823).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H41CBE15C454946C0A2ADE2A358D6B1C6"><enum>(B)</enum><text>in subsection
(k)(6)(B), by striking <quote>savings association</quote> and inserting
<quote>insured depository institution</quote>.</text>
</subparagraph></paragraph><paragraph id="H69DDAFBDDADF4AC0B52103D7F96D85CF"><enum>(2)</enum><header>Definitions</header><text>Section
2(o)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(4)) is
amended—</text>
<subparagraph id="HFBA0D06FC58640F7ABAA90638433A357"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H5CBA435243D64957914889B807EF1608"><enum>(B)</enum><text>in subparagraph
(C)(ii), by striking the period at the end and inserting a semicolon;
and</text>
</subparagraph><subparagraph id="H5AE3062CFCE24F98B4B5498A26F084E0"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB9DF323FC59943DA951F9D96F14E6CDA" style="OLC">
<subparagraph id="H772516A24BD944B781DD34EA7447940E"><enum>(D)</enum><text>with respect to a
State savings association, the State by which the savings association is
chartered; and</text>
</subparagraph><subparagraph id="H21EEDE48FA3F4F95A8775003E8DCDAAA"><enum>(E)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H7F9FE47130DA4B12A19F72DC42AD43DF"><enum>(c)</enum><header>Acquisitions by
savings and loan holding companies</header><text>Section 10(e)(2) of the Home
Owners' Loan Act (12 U.S.C. 1467a(e)(2)) is amended—</text>
<paragraph id="HD91934B01FB44852833399F3F89381F2"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HD8C8CB72EEAC40169D20762082306122"><enum>(A)</enum><text>in subparagraph
(C), by striking <quote>or</quote> at the end;</text>
</subparagraph><subparagraph id="H1D47BBF02FCB4842BF1C2F143FEC2C3B"><enum>(B)</enum><text>in subparagraph
(D), by striking the period at the end and inserting <quote>, or</quote>;
and</text>
</subparagraph><subparagraph id="H9A4D29973CDA473CB771C29EDCADAA67"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1052791499164271B9680EE8BFDC7D24" style="OLC">
<subparagraph id="H7337C0CA104744E7874C04899839395E"><enum>(E)</enum><text>in the case of an
application by a savings and loan holding company to acquire an insured
depository institution, if—</text>
<clause id="HA4499EB31A4841B4995FEE61EEFAA9A6"><enum>(i)</enum><text>the home State of
the insured depository institution is a State other than the home State of the
savings and loan holding company;</text>
</clause><clause id="H75359C8E224A4045BCB52D8C0D21F56B"><enum>(ii)</enum><text>the applicant
(including all insured depository institutions which are affiliates of the
applicant) controls, or 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; and</text>
</clause><clause id="HBCDC118D520F4BC5BD01D788815893A3"><enum>(iii)</enum><text>the acquisition
does not involve an insured depository institution in default or in danger of
default, or with respect to which the Federal Deposit Insurance Corporation
provides assistance under section 13 of the Federal Deposit Insurance Act (12
U.S.C. 1823).</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H79075D4A11594009A3992607AC515F18"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCA8766FDBC1D4AE0AC8BCB646CDB3FF8" style="OLC">
<paragraph id="H7CDB9DE7A5A34D14B5AA8CF917DA11C7"><enum>(7)</enum><header>Definitions</header><text>For
purposes of paragraph (2)(E)—</text>
<subparagraph id="HA1DDC343485148179BCADA4C1846D604"><enum>(A)</enum><text>the terms
<term>default</term>, <term>in danger of default</term>, and <term>insured
depository institution</term> have the same meanings as in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813); and</text>
</subparagraph><subparagraph id="H7EC8ED59DB0D4F3585F70FDA7043CCD4"><enum>(B)</enum><text>the term
<term>home State</term> means—</text>
<clause id="H3623A60D58EA46AA831EF10CDE8731B6"><enum>(i)</enum><text>with respect to a
national bank, the State in which the main office of the bank is
located;</text>
</clause><clause id="H2D01DE8BD9544969AF0D1792EF4A636A"><enum>(ii)</enum><text>with respect to a
State bank or State savings association, the State by which the savings
association is chartered;</text>
</clause><clause id="HFAED1BB1C8B046AABB56C87E58D602C0"><enum>(iii)</enum><text>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; and</text>
</clause><clause id="HD10D1B06935A4580AE238434557946DD"><enum>(iv)</enum><text>with respect to a
savings and loan holding company, the State in which the amount of total
deposits of all insured depository institution subsidiaries of such company was
the greatest on the date on which the company became a savings and loan holding
company.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H37F24C5EC7164DC08034FE29BF0EC58F"><enum>624.</enum><header>Qualified
thrift lenders</header><text display-inline="no-display-inline">Section
10(m)(3) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)(3)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA0C9C297ED154352A827179B9CE2D600"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subparagraph (A) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H8B162919E2CF4DB09DE41688CF44315D" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE8370FAB1C4849499B12AA9C1719DCDE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A savings association that fails to become
or remain a qualified thrift lender shall immediately be subject to the
restrictions under subparagraph (B).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2DB475F724604D7895BEDEFF539D1F64"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)(i), by striking
subclause (III) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9E67874AAD464F8583F4CD9115B31EB4" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="H72BABC100D884B84A6CD2763B58FDD60"><enum>(III)</enum><header display-inline="yes-display-inline">Dividends</header><text display-inline="yes-display-inline">The savings association may not pay
dividends, except for dividends that—</text>
<item commented="no" display-inline="no-display-inline" id="H5924679AAEEC4817A0F65A8E34B55B07"><enum>(aa)</enum><text display-inline="yes-display-inline">would be permissible for a national
bank;</text>
</item><item commented="no" display-inline="no-display-inline" id="H8C2A96B8D032466FAF196161B05EA4B4"><enum>(bb)</enum><text display-inline="yes-display-inline">are necessary to meet obligations of a
company that controls such savings association; and</text>
</item><item commented="no" display-inline="no-display-inline" id="HD28462F844AA43B685F4879DAFF7347F"><enum>(cc)</enum><text display-inline="yes-display-inline">are specifically approved by the
Comptroller of the Currency and the Board after a written request submitted to
the Comptroller of the Currency and the Board by the savings association not
later than 30 days before the date of the proposed payment.</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HF522B114DCBB483B9BB817B07FAE6098"><enum>(IV)</enum><header display-inline="yes-display-inline">Regulatory authority</header><text display-inline="yes-display-inline">A savings association that fails to become
or remain a qualified thrift lender shall be deemed to have violated section 5
of the Home Owners’ Loan Act (12 U.S.C. 1464) and subject to actions authorized
by section 5(d) of the Home Owners’ Loan Act (12 U.S.C.
1464(d)).</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HE4E6CC4FF1014B67BE33139E1B7F5C16"><enum>625.</enum><header display-inline="yes-display-inline">Treatment of dividends by certain mutual
holding companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H25BB2769B6A34DBBA0C0410A3E84C1FA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 10(o) of the
Home Owners' Loan Act (12 U.S.C. 1467a(o) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HDCB5655B24F5462A87450782D058A391" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3B7526BF98DF44A09220EBC5A842A6CA"><enum>(11)</enum><header display-inline="yes-display-inline">Dividends</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDA6B06108A6C4FB7A8FCB05C283F3020"><enum>(A)</enum><header display-inline="yes-display-inline">Declaration of dividends</header>
<clause commented="no" display-inline="no-display-inline" id="HC150EA1634964A02B9385C9E966641F3"><enum>(i)</enum><header>Advance notice
required</header><text display-inline="yes-display-inline">Each subsidiary of a
mutual holding company that is a savings association shall give the appropriate
Federal banking agency and the Board notice not later than 30 days before the
date of a proposed declaration by the board of directors of the savings
association of any dividend on the guaranty, permanent, or other
nonwithdrawable stock of the savings association.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1E1844A97D4146AE8049B27954CEB2F3"><enum>(ii)</enum><header>Invalid
dividends</header><text display-inline="yes-display-inline">Any dividend
described in clause (i) that is declared without giving notice to the
appropriate Federal banking agency and the Board under clause (i), or that is
declared during the 30-day period preceding the date of a proposed declaration
for which notice is given to the appropriate Federal banking agency and the
Board under clause (i), shall be invalid and shall confer no rights or benefits
upon the holder of any such stock.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H59A8534EE2E24C2BB235F9965B46399B"><enum>(B)</enum><header display-inline="yes-display-inline">Waiver of dividends</header><text display-inline="yes-display-inline">A mutual holding company may waive the
right to receive any dividend declared by a subsidiary of the mutual holding
company, if—</text>
<clause commented="no" display-inline="no-display-inline" id="H2BEDED1281A54EFC9E7F1E97C2FD4292"><enum>(i)</enum><text display-inline="yes-display-inline">no insider of the mutual holding company,
associate of an insider, or tax-qualified or non-tax-qualified employee stock
benefit plan of the mutual holding company holds any share of the stock in the
class of stock to which the waiver would apply; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAFEFC950F08E4F4D8873BD3B430FDC2B"><enum>(ii)</enum><text display-inline="yes-display-inline">the mutual holding company gives written
notice to the Board of the intent of the mutual holding company to waive the
right to receive dividends, not later than 30 days before the date of the
proposed date of payment of the dividend, and the Board does not object to the
waiver.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H28BE7D244A8F4A12B9A17C6B6A643B0B"><enum>(C)</enum><header display-inline="yes-display-inline">Resolution included in waiver
notice</header><text display-inline="yes-display-inline">A notice of a waiver
under subparagraph (B) shall include a copy of the resolution of the board of
directors of the mutual holding company, in such form and substance as the
Board may determine, together with any supporting materials relied upon by the
board of directors of the mutual holding company, concluding that the proposed
dividend waiver is consistent with the fiduciary duties of the board of
directors to the mutual members of the mutual holding company.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H10CCA99151AD466FB1A89C94CE2AD853"><enum>(D)</enum><header display-inline="yes-display-inline">Standards for waiver of
dividend</header><text display-inline="yes-display-inline">The Board may not
object to a waiver of dividends under subparagraph (B) if—</text>
<clause commented="no" display-inline="no-display-inline" id="H2EE37075EF1F40CCBCFC9A4529925C7C"><enum>(i)</enum><text display-inline="yes-display-inline">the waiver would not be detrimental to the
safe and sound operation of the savings association;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9190C35814814E4C90CC6372786A39F9"><enum>(ii)</enum><text display-inline="yes-display-inline">the board of directors of the mutual
holding company expressly determines that a waiver of the dividend by the
mutual holding company is consistent with the fiduciary duties of the board of
directors to the mutual members of the mutual holding company; and</text>
</clause><clause id="H1742C99C1A9849B8B0CCEA32075E46B5"><enum>(iii)</enum><text display-inline="yes-display-inline">the mutual holding company has, prior to
December 1, 2009—</text>
<subclause id="HB9E85481FAC24F7EB576E4735BE97D48"><enum>(I)</enum><text>reorganized into a
mutual holding company under subsection (o);</text>
</subclause><subclause id="H5D746332C7214AC28CCF3AA2AD235F6B"><enum>(II)</enum><text>issued minority
stock either from its mid-tier stock holding company or its subsidiary stock
savings association; and</text>
</subclause><subclause id="HBFFA1E6CF100445EB11D69A887920503"><enum>(III)</enum><text>waived dividends
it had a right to receive from the subsidiary stock savings association.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA6DB1058B9E54996B23953A9154C08C7"><enum>(E)</enum><header display-inline="yes-display-inline">Valuation</header>
<clause commented="no" display-inline="no-display-inline" id="H9827656D246A4044AB2121F01BB716B5"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The appropriate Federal banking agency
shall consider waived dividends in determining an appropriate exchange ratio in
the event of a full conversion to stock form.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H72EC359718244F4C8EBEB0FE3E734D8E"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">In the case of a savings association that
has reorganized into a mutual holding company, has issued minority stock from a
mid-tier stock holding company or a subsidiary stock savings association of the
mutual holding company, and has waived dividends it had a right to receive from
a subsidiary savings association before December 1, 2009, the appropriate
Federal banking agency shall not consider waived dividends in determining an
appropriate exchange ratio in the event of a full conversion to stock
form.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H18EC51F6308F4E3AA421FD7B31E6E66B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect on
the transfer date.</text>
</subsection></section><section id="H5C11068525EF456EBE8414174E7E8241"><enum>626.</enum><header>Intermediate
holding companies</header><text display-inline="no-display-inline">The Home
Owners’ Loan Act (12 U.S.C. 1461 et seq.) is amended by inserting after section
10 (12 U.S.C. 1467a) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HED63582F0A2141FAB34A131D059156E3" style="OLC">
<section id="H1B77B1C8D23849B48B3013186D899D73"><enum>10A.</enum><header>Intermediate
holding companies</header>
<subsection id="HB86AA1BE71A4492186F9B523FFE15EA9"><enum>(a)</enum><header>Definition</header><text>For
purposes of this section:</text>
<paragraph id="H1F5B1FFAC1FB4FC8B6AF957103E57A77"><enum>(1)</enum><header>Financial
activities</header><text>The term <term>financial activities</term> means
activities described in clauses (i) and (ii) of section 10(c)(9)(A).</text>
</paragraph><paragraph id="H81C5EBC48F0140818B66C5EF40F9EB72"><enum>(2)</enum><header>Grandfathered
unitary savings and loan holding company</header><text>The term
<term>grandfathered unitary savings and loan holding company</term> means a
company described in section 10(c)(9)(C).</text>
</paragraph><paragraph id="H48F2FD4EE3C74E6EBECD822FE717EEC5"><enum>(3)</enum><header>Internal
financial activities</header><text>The term <term>internal financial
activities</term> includes—</text>
<subparagraph id="H334CB03406D94564B0AB4934B753E0E6"><enum>(A)</enum><text>internal financial
activities conducted by a grandfathered savings and loan holding company or any
affiliate; and</text>
</subparagraph><subparagraph id="H922D414F699D49D6B178902B8F5F0B04"><enum>(B)</enum><text>internal treasury,
investment, and employee benefit functions.</text>
</subparagraph></paragraph></subsection><subsection id="HA529B096E2F4408199AA9C3CF3FD11B0"><enum>(b)</enum><header>Requirement</header>
<paragraph id="H19F1B01BC1F145DA9A7966D0B71AFD51"><enum>(1)</enum><header>In
general</header>
<subparagraph id="HEE7240B72E7B420C871C8AB2C2945C4F"><enum>(A)</enum><header>Activities other
than financial activities</header><text>If a grandfathered unitary savings and
loan holding company conducts activities other than financial activities, the
Board may require such company to establish and conduct all or a portion of
such financial activities in or through an intermediate holding company, which
shall be a savings and loan holding company, established pursuant to
regulations of the Board, not later than 90 days (or such longer period as the
Board may deem appropriate) after the transfer date.</text>
</subparagraph><subparagraph id="H6039E619555A4EBA98812FB97F5A0498"><enum>(B)</enum><header>Other
activities</header><text>Notwithstanding subparagraph (A), the Board shall
require a grandfathered unitary savings and loan holding company to establish
an intermediate holding company if the Board makes a determination that the
establishment of such intermediate holding company is necessary—</text>
<clause id="H69EC36B7F90542A786AA7AE55567D3C4"><enum>(i)</enum><text>to
appropriately supervise activities that are determined to be financial
activities; or</text>
</clause><clause id="H38BECD5D72F04F5489A1BA6412809EBF"><enum>(ii)</enum><text>to ensure that
supervision by the Board does not extend to the activities of such company that
are not financial activities.</text>
</clause></subparagraph></paragraph><paragraph id="H8EB4F57480B242A88AB2577451906376"><enum>(2)</enum><header>Internal
financial activities</header>
<subparagraph id="HF67ACA0350DE4B04BF1193EC2D3DED2A"><enum>(A)</enum><header>Treatment of
internal financial activities</header><text>For purposes of this subsection,
the internal financial activities of a grandfathered unitary savings and loan
holding company shall not be required to be placed in an intermediate holding
company.</text>
</subparagraph><subparagraph id="H1D5F9DEEA9494877AE39E593A15B560A"><enum>(B)</enum><header>Grandfathered
activities</header><text>A grandfathered unitary savings and loan holding
company may continue to engage in an internal financial activity, subject to
review by the Board to determine whether engaging in such activity presents
undue risk to the grandfathered unitary savings and loan holding company or to
the financial stability of the United States, if—</text>
<clause id="H10D463278AE942058297F0D4EBD51CEC"><enum>(i)</enum><text>the grandfathered
unitary savings and loan holding company engaged in the activity during the
year before the date of enactment of this section; and</text>
</clause><clause id="H967967B898DE4A3CAD5C4BAA30F358D8"><enum>(ii)</enum><text>at least
<fraction>2/3</fraction> of the assets or <fraction>2/3</fraction> of the
revenues generated from the activity are from or attributable to the
grandfathered unitary savings and loan holding company.</text>
</clause></subparagraph></paragraph><paragraph id="H7439CD9450D1486599D90DD2E66CE0E9"><enum>(3)</enum><header>Source of
strength</header><text>A grandfathered unitary savings and loan holding company
that directly or indirectly controls an intermediate holding company
established under this section shall serve as a source of strength to its
subsidiary intermediate holding company.</text>
</paragraph><paragraph id="H0CA7D9EF06414A1598D650A96A9847BD"><enum>(4)</enum><header>Parent company
reports</header><text>The Board, may from time to time, examine and require
reports under oath from a grandfathered unitary savings and loan holding
company that controls an intermediate holding company, and from the appropriate
officers or directors of such company, solely for purposes of ensuring
compliance with the provisions of this section, including assessing the ability
of the company to serve as a source of strength to its subsidiary intermediate
holding company as required under paragraph (3) and enforcing compliance with
such requirement.</text>
</paragraph><paragraph id="H20D5460D0F3C40588B1E118A32D32B33"><enum>(5)</enum><header>Limited parent
company enforcement</header>
<subparagraph id="H2167CF58DA5B41D2B7154B296F45D0F3"><enum>(A)</enum><header>In
general</header><text>In addition to any other authority of the Board, the
Board may enforce compliance with the provisions of this subsection that are
applicable to any company described in paragraph (1)(A) that controls an
intermediate holding company under section 8 of the Federal Deposit Insurance
Act, and a company described in paragraph (1)(A) shall be subject to such
section (solely for purposes of this subparagraph) in the same manner and to
the same extent as if the company described in paragraph (1)(A) were a savings
and loan holding company.</text>
</subparagraph><subparagraph id="H6F4B7C33F35445C084C29B856230D1F8"><enum>(B)</enum><header>Application of
other act</header><text>Any violation of this subsection by a grandfathered
unitary savings and loan holding company that controls an intermediate holding
company may also be treated as a violation of the Federal Deposit Insurance Act
for purposes of subparagraph (A).</text>
</subparagraph><subparagraph id="HA6C06030AA2C4FB695951061FB227455"><enum>(C)</enum><header>No effect on
other authority</header><text>No provision of this paragraph shall be construed
as limiting any authority of the Board or any other Federal agency under any
other provision of law.</text>
</subparagraph></paragraph></subsection><subsection id="HF3D6D3AE46B84B13829E15844B4B47A5"><enum>(c)</enum><header>Regulations</header><text>The
Board—</text>
<paragraph id="HC52AC78B2B0F48E3B9863AA86039EF32"><enum>(1)</enum><text>shall promulgate
regulations to establish the criteria for determining whether to require a
grandfathered unitary savings and loan holding company to establish an
intermediate holding company under subsection (b); and</text>
</paragraph><paragraph id="H8B594DCB5BDC4960992D848ABA3129E3"><enum>(2)</enum><text>may promulgate
regulations to establish any restrictions or limitations on transactions
between an intermediate holding company or a parent of such company and its
affiliates, as necessary to prevent unsafe and unsound practices in connection
with transactions between the intermediate holding company, or any subsidiary
thereof, and its parent company or affiliates that are not subsidiaries of the
intermediate holding company, except that such regulations shall not restrict
or limit any transaction in connection with the bona fide acquisition or lease
by an unaffiliated person of assets, goods, or services.</text>
</paragraph></subsection><subsection id="HC14711D9128C490A90114BCBD16F0ECA"><enum>(d)</enum><header>Rules of
construction</header>
<paragraph id="H45C3E9D7E0EF4B8985B22519226E1FE4"><enum>(1)</enum><header>Activities</header><text>Nothing
in this section shall be construed to require a grandfathered unitary savings
and loan holding company to conform its activities to permissible
activities.</text>
</paragraph><paragraph id="HAD9A6BA5DC3547A4A7D0ADDBD6CC1DCD"><enum>(2)</enum><header>Permissible
corporate reorganization</header><text>The formation of an intermediate holding
company as required in subsection (b) shall be presumed to be a permissible
corporate reorganization as described in section
10(c)(9)(D).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H7F2F71D04FCD4F05B3FE45B87DAF305B"><enum>627.</enum><header>Interest-bearing
transaction accounts authorized</header>
<subsection id="H9984C94E22574D2FBF873468E841B307"><enum>(a)</enum><header>Repeal of
prohibition on payment of interest on demand deposits</header>
<paragraph id="HCEE8EFDCABE34456B123E861E33F3C59"><enum>(1)</enum><header>Federal Reserve
Act</header><text>Section 19(i) of the Federal Reserve Act (12 U.S.C. 371a) is
amended to read as follows:</text>
<quoted-block act-name="Federal" id="HE72FD4E332A24CAA8333CBADE0A952F9">
<subsection id="H8BD39A8F5CBF481CAA632F4B2F9FFC13"><enum>(i)</enum><text>[Repealed]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDE3E029CDCE2459DAC2335DF247891F0"><enum>(2)</enum><header>Home Owners’
Loan Act</header><text>The first sentence of section 5(b)(1)(B) of the Home
Owners’ Loan Act (12 U.S.C. 1464(b)(1)(B)) is amended by striking
<quote>savings association may not—</quote> and all that follows through
<quote>(ii) permit any</quote> and inserting <quote>savings association may not
permit any</quote>.</text>
</paragraph><paragraph id="HC435F803B8ED431F8BE68DAC358C5470"><enum>(3)</enum><header>Federal Deposit
Insurance Act</header><text>Section 18(g) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(g)) is amended to read as follows:</text>
<quoted-block act-name="Federal" id="HD32B48C411B946F0809C47783C99146E">
<subsection id="HDA4C8C2AA6EA4FB6B0740AC977AE67E2"><enum>(g)</enum><text>[Repealed]</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H06CA2EEB7AAB4AFDBC48BEB3E10C6F73"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall take effect 1
year after the date of the enactment of this Act.</text>
</subsection></section><section id="HA28C433C1AAD421AAB16406DF8E75D21"><enum>628.</enum><header>Credit card
bank small business lending</header><text display-inline="no-display-inline">Section 2(c)(2)(F)(v) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(c)(2)(F)(v)) is amended by inserting before
the period the following: <quote>, other than credit card loans that are made
to businesses that meet the criteria for a small business concern to be
eligible for business loans under regulations established by the Small Business
Administration under part 121 of title 13, Code of Federal
Regulations</quote>.</text>
</section><enum>VII</enum><header>Wall Street
Transparency and Accountability</header>
<section id="HED1C6994BCCA4E5B8DC509344E1B349A"><enum>701.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Wall Street Transparency and
Accountability Act of 2010</short-title></quote>.</text>
</section><subtitle id="H40BFE91ACAE444B0B70CA20EE99A8A5C"><enum>A</enum><header>Regulation of
Over-the-Counter Swaps Markets</header>
<part id="HFD7CA3CB30574F1086BD09CE475A5FFA"><enum>I</enum><header>Regulatory
authority</header>
<section id="H60CC40B64BB74FB4A02E5F2B16DFFBA6"><enum>711.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle, the terms <term>prudential
regulator</term>, <term>swap</term>, <term>swap dealer</term>, <term>major swap
participant</term>, <term>swap data repository</term>, <term>associated person
of a swap dealer or major swap participant</term>, <term>eligible contract
participant</term>, <term>swap execution facility</term>, <term>security-based
swap</term>, <term>security-based swap dealer</term>, <term>major
security-based swap participant</term>, and <term>associated person of a
security-based swap dealer or major security-based swap participant</term> have
the meanings given the terms in section 1a of the Commodity Exchange Act (7
U.S.C. 1a), including any modification of the meanings under section 721(b) of
this Act.</text>
</section><section id="HB918E713F7514DAFA6D4D1B9DDAF2069"><enum>712.</enum><header>Review of
regulatory authority</header>
<subsection id="HBE22B3CCA4D34F17B8B8BFCD72427CAA"><enum>(a)</enum><header>Consultation</header>
<paragraph id="H47EE64D94AA44A2FA67E3C4CEEC3468D"><enum>(1)</enum><header>Commodity
Futures Trading Commission</header><text>Before commencing any rulemaking or
issuing an order regarding swaps, swap dealers, major swap participants, swap
data repositories, derivative clearing organizations with regard to swaps,
persons associated with a swap dealer or major swap participant, eligible
contract participants, or swap execution facilities pursuant to this subtitle,
the Commodity Futures Trading Commission shall consult and coordinate to the
extent possible with the Securities and Exchange Commission and the prudential
regulators for the purposes of assuring regulatory consistency and
comparability, to the extent possible.</text>
</paragraph><paragraph id="H0137D5B09712437CA9B42EC0E2DC7CDB"><enum>(2)</enum><header>Securities and
Exchange Commission</header><text>Before commencing any rulemaking or issuing
an order regarding security-based swaps, security-based swap dealers, major
security-based swap participants, security-based swap data repositories,
clearing agencies with regard to security-based swaps, persons associated with
a security-based swap dealer or major security-based swap participant, eligible
contract participants with regard to security-based swaps, or security-based
swap execution facilities pursuant to subtitle B, the Securities and Exchange
Commission shall consult and coordinate to the extent possible with the
Commodity Futures Trading Commission and the prudential regulators for the
purposes of assuring regulatory consistency and comparability, to the extent
possible.</text>
</paragraph><paragraph id="H09735E2F4A724FC4B56E69D18FD2DBB9"><enum>(3)</enum><header>Procedures and
deadline</header><text>Such regulations shall be prescribed in accordance with
applicable requirements of title 5, United States Code, and shall be issued in
final form not later than 360 days after the date of enactment of this
Act.</text>
</paragraph><paragraph id="H454B15B62CFA4D6AB317EAE911811C6B"><enum>(4)</enum><header>Applicability</header><text>The
requirements of paragraphs (1) and (2) shall not apply to an order
issued—</text>
<subparagraph id="H63D51C17ECDD418D86D50BD08B468ABB"><enum>(A)</enum><text>in connection with
or arising from a violation or potential violation of any provision of the
Commodity Exchange Act (7 U.S.C. 1 et seq.);</text>
</subparagraph><subparagraph id="H98BF7C9CFA0443A18015871A7AFB5075"><enum>(B)</enum><text>in connection with
or arising from a violation or potential violation of any provision of the
securities laws; or</text>
</subparagraph><subparagraph id="H8897F79E0D2F4D2D81BE13BCA9D9E283"><enum>(C)</enum><text>in any proceeding
that is conducted on the record in accordance with sections 556 and 557 of
title 5, United States Code.</text>
</subparagraph></paragraph><paragraph id="HC5AE7BB6EBEB4D45963DB01830FE857C"><enum>(5)</enum><header>Effect</header><text>Nothing
in this subsection authorizes any consultation or procedure for consultation
that is not consistent with the requirements of subchapter II of chapter 5, and
chapter 7, of title 5, United States Code (commonly known as the
<quote>Administrative Procedure Act</quote>).</text>
</paragraph><paragraph id="H493035E534334365BE36FFC2F1A0CA77"><enum>(6)</enum><header>Rules;
orders</header><text>In developing and promulgating rules or orders pursuant to
this subsection, each Commission shall consider the views of the prudential
regulators.</text>
</paragraph><paragraph commented="no" id="H2AE3D0920A914A06BA459D20E72046B6"><enum>(7)</enum><header>Treatment of
similar products and entities</header>
<subparagraph commented="no" id="H23B340B1EC754E38BE682B46CAF7CFA9"><enum>(A)</enum><header>In
general</header><text>In adopting rules and orders under this subsection, the
Commodity Futures Trading Commission and the Securities and Exchange Commission
shall treat functionally or economically similar products or entities described
in paragraphs (1) and (2) in a similar manner.</text>
</subparagraph><subparagraph commented="no" id="HFF68BD24BE2840709CD51B40CB3A56FE"><enum>(B)</enum><header>Effect</header><text>Nothing
in this subtitle requires the Commodity Futures Trading Commission or the
Securities and Exchange Commission to adopt joint rules or orders that treat
functionally or economically similar products or entities described in
paragraphs (1) and (2) in an identical manner.</text>
</subparagraph></paragraph><paragraph id="HEC7EC6C4F92D46C7BFE58BB35A79954B"><enum>(8)</enum><header>Mixed
swaps</header><text>The Commodity Futures Trading Commission and the Securities
and Exchange Commission, after consultation with the Board of Governors, shall
jointly prescribe such regulations regarding mixed swaps, as described in
section 1a(47)(D) of the Commodity Exchange Act (7 U.S.C. 1a(47)(D)) and in
section 3(a)(68)(D) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(68)(D)), as may be necessary to carry out the purposes of this
title.</text>
</paragraph></subsection><subsection id="HACA8C8B29E7944AAAF947E7EF0F266B9"><enum>(b)</enum><header>Limitation</header>
<paragraph id="H1A1E80CF60C04721ADCA127C734D0EBE"><enum>(1)</enum><header>Commodity
Futures Trading Commission</header><text>Nothing in this title, unless
specifically provided, confers jurisdiction on the Commodity Futures Trading
Commission to issue a rule, regulation, or order providing for oversight or
regulation of—</text>
<subparagraph id="HA1E3C3E59D2C4AF0A20C124993DD8350"><enum>(A)</enum><text>security-based
swaps; or</text>
</subparagraph><subparagraph id="H0592A61EAD774D32B130469CD1F3A715"><enum>(B)</enum><text>with regard to its
activities or functions concerning security-based swaps—</text>
<clause id="HA377AAC490EB437A8DF02A9C286F8164"><enum>(i)</enum><text>security-based
swap dealers;</text>
</clause><clause id="HDBB405B926BA47949F63983244A28EAF"><enum>(ii)</enum><text>major
security-based swap participants;</text>
</clause><clause id="H24F88968AB384C7180CCD577F87062FB"><enum>(iii)</enum><text>security-based
swap data repositories;</text>
</clause><clause id="H8160B8C908FC452DBB228CB2FCE315A4"><enum>(iv)</enum><text>associated
persons of a security-based swap dealer or major security-based swap
participant;</text>
</clause><clause id="HD19A081E8FE5401A89349EE0BB6381F6"><enum>(v)</enum><text>eligible contract
participants with respect to security-based swaps; or</text>
</clause><clause id="HBBE6A87DF5EC4B87A73BCB5D556781DF"><enum>(vi)</enum><text>swap execution
facilities with respect to security-based swaps.</text>
</clause></subparagraph></paragraph><paragraph id="H611FE88F4B9A47A5919C950450B57269"><enum>(2)</enum><header>Securities and
Exchange Commission</header><text display-inline="yes-display-inline">Nothing
in this title, unless specifically provided, confers jurisdiction on the
Securities and Exchange Commission or State securities regulators to issue a
rule, regulation, or order providing for oversight or regulation of—</text>
<subparagraph id="H7EC1E19D37B141A18B878DE535FD3D73"><enum>(A)</enum><text>swaps; or</text>
</subparagraph><subparagraph id="H18AC79F013704F4C836F43E1EC78C455"><enum>(B)</enum><text>with regard to its
activities or functions concerning swaps—</text>
<clause id="HBFFCF26B816C4C2F91350D11A4C1AA89"><enum>(i)</enum><text>swap
dealers;</text>
</clause><clause id="H6C10EB96D6754635B9B2A52E8B4726B9"><enum>(ii)</enum><text>major swap
participants;</text>
</clause><clause id="H3814B741802245D3972F420873413653"><enum>(iii)</enum><text>swap data
repositories;</text>
</clause><clause id="HCF0A1947DCBB46D7B09DEC82540B3108"><enum>(iv)</enum><text>persons
associated with a swap dealer or major swap participant;</text>
</clause><clause id="H700F3FBB6FED4D15A070A89039D25841"><enum>(v)</enum><text>eligible contract
participants with respect to swaps; or</text>
</clause><clause id="HEF8998771DAA4A0E9937C323C7A4E468"><enum>(vi)</enum><text>swap execution
facilities with respect to swaps.</text>
</clause></subparagraph></paragraph><paragraph id="H89677F253C5D4310A253EB4CF650B6FD"><enum>(3)</enum><header>Prohibition on
certain futures associations and national securities associations</header>
<subparagraph id="H4DB06687EDF041F999295C2AE7457317"><enum>(A)</enum><header>Futures
associations</header><text>Notwithstanding any other provision of law
(including regulations), unless otherwise authorized by this title, no futures
association registered under section 17 of the Commodity Exchange Act (7 U.S.C.
21) may issue a rule, regulation, or order for the oversight or regulation of,
or otherwise assert jurisdiction over, for any purpose, any security-based
swap, except that this subparagraph shall not limit the authority of a
registered futures association to examine for compliance with, and enforce, its
rules on capital adequacy.</text>
</subparagraph><subparagraph id="H22A1C3C2636D466CAF67F0CDFBEB8F6F"><enum>(B)</enum><header>National
securities associations</header><text>Notwithstanding any other provision of
law (including regulations), unless otherwise authorized by this title, no
national securities association registered under section 15A of the Securities
Exchange Act of 1934 (15 U.S.C. 78o–3) may issue a rule, regulation, or order
for the oversight or regulation of, or otherwise assert jurisdiction over, for
any purpose, any swap, except that this subparagraph shall not limit the
authority of a national securities association to examine for compliance with,
and enforce, its rules on capital adequacy.</text>
</subparagraph></paragraph></subsection><subsection id="H475CBCA51AE540D794FEE199E59AE325"><enum>(c)</enum><header>Objection to
Commission regulation</header>
<paragraph id="HDD92DFB8BCDA48929F1D6FDF2EA0862C"><enum>(1)</enum><header>Filing of
petition for review</header>
<subparagraph id="HDC663BBA7CB8432FAD2A30A1F9DDB772"><enum>(A)</enum><header>In
general</header><text>If either Commission referred to in this section
determines that a final rule, regulation, or order of the other Commission
conflicts with subsection (a)(7) or (b), then the complaining Commission may
obtain review of the final rule, regulation, or order in the United States
Court of Appeals for the District of Columbia Circuit by filing in the court,
not later than 60 days after the date of publication of the final rule,
regulation, or order, a written petition requesting that the rule, regulation,
or order be set aside.</text>
</subparagraph><subparagraph id="H3F5F13A4154F40E89FF92F4EA951831B"><enum>(B)</enum><header>Expedited
proceeding</header><text>A proceeding described in subparagraph (A) shall be
expedited by the United States Court of Appeals for the District of Columbia
Circuit.</text>
</subparagraph></paragraph><paragraph id="HE2E7285182804C8784D2242078041495"><enum>(2)</enum><header>Transmittal of
petition and record</header>
<subparagraph id="H41A78F05143547A39AAA809302BE63FE"><enum>(A)</enum><header>In
general</header><text>A copy of a petition described in paragraph (1) shall be
transmitted not later than 1 business day after the date of filing by the
complaining Commission to the Secretary of the responding Commission.</text>
</subparagraph><subparagraph id="H51A4A8E5B0DB4DC3A4E04C9D4BA6D0FC"><enum>(B)</enum><header>Duty of
responding Commission</header><text>On receipt of the copy of a petition
described in paragraph (1), the responding Commission shall file with the
United States Court of Appeals for the District of Columbia Circuit—</text>
<clause id="HCBF045AB7A52410A82EB16E46AC26F18"><enum>(i)</enum><text>a
copy of the rule, regulation, or order under review (including any documents
referred to therein); and</text>
</clause><clause id="H636F005368C44AAF8D7C94172BC96788"><enum>(ii)</enum><text>any
other materials prescribed by the United States Court of Appeals for the
District of Columbia Circuit.</text>
</clause></subparagraph></paragraph><paragraph id="HE0D2CB566C25459796A49FB1777C15E1"><enum>(3)</enum><header>Standard of
review</header><text>The United States Court of Appeals for the District of
Columbia Circuit shall—</text>
<subparagraph id="HDDD6965FE3284F9184056C977BD49652"><enum>(A)</enum><text>give deference to
the views of neither Commission; and</text>
</subparagraph><subparagraph id="H9C68325BBB48464B8E60BF7619127C3B"><enum>(B)</enum><text>determine to
affirm or set aside a rule, regulation, or order of the responding Commission
under this subsection, based on the determination of the court as to whether
the rule, regulation, or order is in conflict with subsection (a)(7) or (b), as
applicable.</text>
</subparagraph></paragraph><paragraph id="HC0CE41C0BD1546619E1D04599AE7B8F9"><enum>(4)</enum><header>Judicial
stay</header><text>The filing of a petition by the complaining Commission
pursuant to paragraph (1) shall operate as a stay of the rule, regulation, or
order until the date on which the determination of the United States Court of
Appeals for the District of Columbia Circuit is final (including any appeal of
the determination).</text>
</paragraph></subsection><subsection id="HE038B5BAE86941DEB54E69233EB5763B"><enum>(d)</enum><header>Joint
Rulemaking</header>
<paragraph id="HCF422E0F41484DA783F98CFE1EC4454F"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this title and
subsections (b) and (c), the Commodity Futures Trading Commission and the
Securities and Exchange Commission, in consultation with the Board of
Governors, shall further define the terms <term>swap</term>,
<term>security-based swap</term>, <term>swap dealer</term>,
<term>security-based swap dealer</term>, <term>major swap participant</term>,
<term>major security-based swap participant</term>, <term>eligible contract
participant</term>, and <term>security-based swap agreement</term> in section
1a(47)(A)(v) of the Commodity Exchange Act (7 U.S.C. 1a(47)(A)(v)) and section
3(a)(78) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(78)).</text>
</paragraph><paragraph id="H89481B8CB9F64E498D7010C71A9E8498"><enum>(2)</enum><header>Authority of the
Commissions</header>
<subparagraph id="H91D7B17B97A9441EBB14C1AA0E46A9BC"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of this title, the
Commodity Futures Trading Commission and the Securities and Exchange
Commission, in consultation with the Board of Governors, shall jointly adopt
such other rules regarding such definitions as the Commodity Futures Trading
Commission and the Securities and Exchange Commission determine are necessary
and appropriate, in the public interest, and for the protection of
investors.</text>
</subparagraph><subparagraph id="HE66FE89EF1924125B05C9E84A4F5CA79"><enum>(B)</enum><header>Trade repository
recordkeeping</header><text>Notwithstanding any other provision of this title,
the Commodity Futures Trading Commission and the Securities and Exchange
Commission, in consultation with the Board of Governors, shall engage in joint
rulemaking to jointly adopt a rule or rules governing the books and records
that are required to be kept and maintained regarding security-based swap
agreements by persons that are registered as swap data repositories under the
Commodity Exchange Act, including uniform rules that specify the data elements
that shall be collected and maintained by each repository.</text>
</subparagraph><subparagraph id="HF8B9A5D73209437694E610660294E1B3"><enum>(C)</enum><header>Books and
records</header><text>Notwithstanding any other provision of this title, the
Commodity Futures Trading Commission and the Securities and Exchange
Commission, in consultation with the Board of Governors, shall engage in joint
rulemaking to jointly adopt a rule or rules governing books and records
regarding security-based swap agreements, including daily trading records, for
swap dealers, major swap participants, security-based swap dealers, and
security-based swap participants.</text>
</subparagraph><subparagraph id="H02C652AEDE9D4D56AC25071B812A4348"><enum>(D)</enum><header>Comparable
rules</header><text>Rules and regulations prescribed jointly under this title
by the Commodity Futures Trading Commission and the Securities and Exchange
Commission shall be comparable to the maximum extent possible, taking into
consideration differences in instruments and in the applicable statutory
requirements.</text>
</subparagraph><subparagraph id="H0146EF4BA74346DE962709F7C85A767C"><enum>(E)</enum><header>Tracking
uncleared transactions</header><text>Any rules prescribed under subparagraph
(A) shall require the maintenance of records of all activities relating to
security-based swap agreement transactions defined under subparagraph (A) that
are not cleared.</text>
</subparagraph><subparagraph id="H9B0A41B5A5D34C3DAFAADA4E6C9EE48F"><enum>(F)</enum><header>Sharing of
information</header><text>The Commodity Futures Trading Commission shall make
available to the Securities and Exchange Commission information relating to
security-based swap agreement transactions defined in subparagraph (A) that are
not cleared.</text>
</subparagraph></paragraph><paragraph id="H954CD39150FD424188374FDF2E1C136E"><enum>(3)</enum><header>Financial
Stability Oversight Council</header><text>In the event that the Commodity
Futures Trading Commission and the Securities and Exchange Commission fail to
jointly prescribe rules pursuant to paragraph (1) or (2) in a timely manner, at
the request of either Commission, the Financial Stability Oversight Council
shall resolve the dispute—</text>
<subparagraph id="H6666D50E1D8341039DC82F4D08A3FFCB"><enum>(A)</enum><text>within a
reasonable time after receiving the request;</text>
</subparagraph><subparagraph id="H1F406430C504441484DEF99B8D557854"><enum>(B)</enum><text>after
consideration of relevant information provided by each Commission; and</text>
</subparagraph><subparagraph id="H691204E11C2F4340A65FDC9C21A0FC96"><enum>(C)</enum><text>by agreeing with 1
of the Commissions regarding the entirety of the matter or by determining a
compromise position.</text>
</subparagraph></paragraph><paragraph id="H978B47C21E8342288D6B07CEE487EC44"><enum>(4)</enum><header>Joint
interpretation</header><text>Any interpretation of, or guidance by either
Commission regarding, a provision of this title, shall be effective only if
issued jointly by the Commodity Futures Trading Commission and the Securities
and Exchange Commission, after consultation with the Board of Governors, if
this title requires the Commodity Futures Trading Commission and the Securities
and Exchange Commission to issue joint regulations to implement the
provision.</text>
</paragraph></subsection><subsection id="H521BBFBF3BA14CD8922716733347659E"><enum>(e)</enum><header>Global
rulemaking timeframe</header><text>Unless otherwise provided in this title, or
an amendment made by this title, the Commodity Futures Trading Commission or
the Securities and Exchange Commission, or both, shall individually, and not
jointly, promulgate rules and regulations required of each Commission under
this title or an amendment made by this title not later than 360 days after the
date of enactment of this Act.</text>
</subsection><subsection id="H2A6D10759137405491068A9CBE2055A4"><enum>(f)</enum><header>Rules and
registration before final effective dates</header><text>Beginning on the date
of enactment of this Act and notwithstanding the effective date of any
provision of this Act, the Commodity Futures Trading Commission and the
Securities and Exchange Commission may, in order to prepare for the effective
dates of the provisions of this Act—</text>
<paragraph id="HD7D285120A3D4D338A8FCBBF09464DCD"><enum>(1)</enum><text>promulgate rules,
regulations, or orders permitted or required by this Act;</text>
</paragraph><paragraph id="HCD91AFE6A3244E1788473DC473EEA517"><enum>(2)</enum><text>conduct studies
and prepare reports and recommendations required by this Act;</text>
</paragraph><paragraph id="HC41BA34DB90541CBB436B8165D7858AD"><enum>(3)</enum><text>register persons
under the provisions of this Act; and</text>
</paragraph><paragraph id="H3410A73543224DCDA68F4C4509051D2E"><enum>(4)</enum><text>exempt persons,
agreements, contracts, or transactions from provisions of this Act, under the
terms contained in this Act,</text>
</paragraph><continuation-text continuation-text-level="subsection">provided,
however, that no action by the Commodity Futures Trading Commission or the
Securities and Exchange Commission described in paragraphs (1) through (4)
shall become effective prior to the effective date applicable to such action
under the provisions of this Act.</continuation-text></subsection></section><section id="H1C3F63A8D0764FB09899A86A70F7CB99"><enum>713.</enum><header>Portfolio
margining conforming changes</header>
<subsection id="H17975F00192347959A9D44B2AF67E538"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">Section
15(c)(3) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)(3)) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3C1B0FC1437F4C8A94F3325891C4AB9F" style="OLC">
<subparagraph id="H5D6906CFC55442BBA57435B523F751E4"><enum>(C)</enum><text>Notwithstanding
any provision of sections 2(a)(1)(C)(i) or 4d(a)(2) of the Commodity Exchange
Act and the rules and regulations thereunder, and pursuant to an exemption
granted by the Commission under section 36 of this title or pursuant to a rule
or regulation, cash and securities may be held by a broker or dealer registered
pursuant to subsection (b)(1) and also registered as a futures commission
merchant pursuant to section 4f(a)(1) of the Commodity Exchange Act, in a
portfolio margining account carried as a futures account subject to section 4d
of the Commodity Exchange Act and the rules and regulations thereunder,
pursuant to a portfolio margining program approved by the Commodity Futures
Trading Commission, and subject to subchapter IV of chapter 7 of title 11 of
the United States Code and the rules and regulations thereunder. The Commission
shall consult with the Commodity Futures Trading Commission to adopt rules to
ensure that such transactions and accounts are subject to comparable
requirements to the extent practicable for similar
products.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDB7E5CBC31FB476EB63C0F0F4D7307E5"><enum>(b)</enum><header>Commodity
Exchange Act</header><text>Section 4d of the Commodity Exchange Act (7 U.S.C.
6d) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H912E504DAD6B4BF686FBDB7023052447" style="OLC">
<subsection id="H5D8AB91F68B8412194A107CE09040DEB"><enum>(h)</enum><text>Notwithstanding
subsection (a)(2) or the rules and regulations thereunder, and pursuant to an
exemption granted by the Commission under section 4(c) of this Act or pursuant
to a rule or regulation, a futures commission merchant that is registered
pursuant to section 4f(a)(1) of this Act and also registered as a broker or
dealer pursuant to section 15(b)(1) of the Securities Exchange Act of 1934 may,
pursuant to a portfolio margining program approved by the Securities and
Exchange Commission pursuant to section 19(b) of the Securities Exchange Act of
1934, hold in a portfolio margining account carried as a securities account
subject to section 15(c)(3) of the Securities Exchange Act of 1934 and the
rules and regulations thereunder, a contract for the purchase or sale of a
commodity for future delivery or an option on such a contract, and any money,
securities or other property received from a customer to margin, guarantee or
secure such a contract, or accruing to a customer as the result of such a
contract. The Commission shall consult with the Securities and Exchange
Commission to adopt rules to ensure that such transactions and accounts are
subject to comparable requirements to the extent practical for similar
products.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H66224A2EA09747ACA2B4066C481C1F65"><enum>(c)</enum><header>Duty of
Commodity Futures Trading Commission</header><text>Section 20 of the Commodity
Exchange Act (7 U.S.C. 24) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HCFB45B698FC24DE2A26A9209A9D7A842" style="OLC">
<subsection id="H6453929F489E4D7BAADD2DBF7A6217A0"><enum>(c)</enum><text>The Commission
shall exercise its authority to ensure that securities held in a portfolio
margining account carried as a futures account are customer property and the
owners of those accounts are customers for the purposes of subchapter IV of
chapter 7 of title 11 of the United States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="HFDA6B3A4E06B4C179006243BD2D698D2" section-type="subsequent-section"><enum>714.</enum><header>Abusive
swaps</header><text display-inline="no-display-inline">The Commodity Futures
Trading Commission or the Securities and Exchange Commission, or both,
individually may, by rule or order—</text>
<paragraph display-inline="no-display-inline" id="H23412C6ECA164EB4BFCE1763EEB94109"><enum>(1)</enum><text display-inline="yes-display-inline">collect information as may be necessary
concerning the markets for any types of—</text>
<subparagraph display-inline="no-display-inline" id="H3B59CABB41464B68A5EB3F4B1A4495A9"><enum>(A)</enum><text display-inline="yes-display-inline">swap (as defined in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a)); or</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HF850466233B24C44AD28FCA24EA715BF"><enum>(B)</enum><text display-inline="yes-display-inline">security-based swap (as defined in section
1a of the Commodity Exchange Act (7 U.S.C. 1a)); and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H63EC9A56E548494C9A6B46B00022FF54"><enum>(2)</enum><text display-inline="yes-display-inline">issue a report with respect to any types of
swaps or security-based swaps that the Commodity Futures Trading Commission or
the Securities and Exchange Commission determines to be detrimental to—</text>
<subparagraph display-inline="no-display-inline" id="HB0E3265380514C4FAC61C64C64D43843"><enum>(A)</enum><text display-inline="yes-display-inline">the stability of a financial market;
or</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H7295B5CD0A9C40E1B54E473AC23142CF"><enum>(B)</enum><text display-inline="yes-display-inline">participants in a financial market.</text>
</subparagraph></paragraph></section><section id="H3328EFBE1AAC445B8B485E4FE9B734B3"><enum>715.</enum><header>Authority to
prohibit participation in swap activities</header><text display-inline="no-display-inline">Except as provided in section 4 of the
Commodity Exchange Act (7 U.S.C. 6), if the Commodity Futures Trading
Commission or the Securities and Exchange Commission determines that the
regulation of swaps or security-based swaps markets in a foreign country
undermines the stability of the United States financial system, either
Commission, in consultation with the Secretary of the Treasury, may prohibit an
entity domiciled in the foreign country from participating in the United States
in any swap or security-based swap activities.</text>
</section><section id="HC3D6B7DB6F4C45E1A033F1E3FF58A0E2"><enum>716.</enum><header>Prohibition
against Federal Government bailouts of swaps entities</header>
<subsection id="HDEC9A3EC7241415BB23306B951181509"><enum>(a)</enum><header>Prohibition on
Federal assistance</header><text>Notwithstanding any other provision of law
(including regulations), no Federal assistance may be provided to any swaps
entity with respect to any swap, security-based swap, or other activity of the
swaps entity.</text>
</subsection><subsection id="H173910F0D00B425F94C7B31C349A417E"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H6111A7BF88844426A29D2B240ED140F6"><enum>(1)</enum><header>Federal
assistance</header><text>The term <term>Federal assistance</term> means the use
of any advances from any Federal Reserve credit facility or discount window
that is not part of a program or facility with broad-based eligibility under
section 13(3)(A) of the Federal Reserve Act, Federal Deposit Insurance
Corporation insurance or guarantees for the purpose of—</text>
<subparagraph id="HEBA185F1A7F34EC1A40CD0EC1737902E"><enum>(A)</enum><text>making any loan
to, or purchasing any stock, equity interest, or debt obligation of, any swaps
entity;</text>
</subparagraph><subparagraph id="HB4A83C7C8F674579AC205650B275BF15"><enum>(B)</enum><text>purchasing the
assets of any swaps entity;</text>
</subparagraph><subparagraph id="HAB3B03831D254538929028733D459880"><enum>(C)</enum><text>guaranteeing any
loan or debt issuance of any swaps entity; or</text>
</subparagraph><subparagraph id="H1644D8ACA4E24760814E6226B0CE8CA3"><enum>(D)</enum><text>entering into any
assistance arrangement (including tax breaks), loss sharing, or profit sharing
with any swaps entity.</text>
</subparagraph></paragraph><paragraph id="H12B065E5BF16440EA762F375A3C64E00"><enum>(2)</enum><header>Swaps
entity</header>
<subparagraph id="HCD20EC52B04A4ABCA6F7584174A0D192"><enum>(A)</enum><header>In
general</header><text>The term <term>swaps entity</term> means any swap dealer,
security-based swap dealer, major swap participant, major security-based swap
participant, that is registered under—</text>
<clause id="H5428C1EF7D874DAA87C074545CEB8F34"><enum>(i)</enum><text>the
Commodity Exchange Act (7 U.S.C. 1 et seq.); or</text>
</clause><clause id="H577547FAF6A64CB086377DA52BA33FC2"><enum>(ii)</enum><text>the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).</text>
</clause></subparagraph><subparagraph id="H3933746725054968B394E94F9B27AA2B"><enum>(B)</enum><header>Exclusion</header><text>The
term <term>swaps entity</term> does not include any major swap participant or
major security-based swap participant that is an insured depository
institution.</text>
</subparagraph></paragraph></subsection><subsection id="H4157E02FAD8446FAB1652F420B537046"><enum>(c)</enum><header>Affiliates of
insured depository institutions</header><text>The prohibition on Federal
assistance contained in subsection (a) does not apply to and shall not prevent
an insured depository institution from having or establishing an affiliate
which is a swaps entity, as long as such insured depository institution is part
of a bank holding company, or savings and loan holding company, that is
supervised by the Federal Reserve and such swaps entity affiliate complies with
sections 23A and 23B of the Federal Reserve Act and such other requirements as
the Commodity Futures Trading Commission or the Securities Exchange Commission,
as appropriate, and the Board of Governors of the Federal Reserve System, may
determine to be necessary and appropriate.</text>
</subsection><subsection id="H8F7F22BEF58A41B89BE8E1F0A7912EE4"><enum>(d)</enum><header>Only bona fide
hedging and traditional bank activities permitted</header><text>The prohibition
in subsection (a) shall apply to any insured depository institution unless the
insured depository institution limits its swap or security-based swap
activities to:</text>
<paragraph id="HAE0B8A66089A411B9A058866E8BE3ADC"><enum>(1)</enum><text>Hedging and other
similar risk mitigating activities directly related to the insured depository
institution's activities.</text>
</paragraph><paragraph id="HA8AEBCEDAF664AB087E8259174563263"><enum>(2)</enum><text>Acting as a swaps
entity for swaps or security-based swaps involving rates or reference assets
that are permissible for investment by a national bank under the paragraph
designated as <quote>Seventh.</quote> of section 5136 of the Revised Statutes
of the United States ( 12 U.S.C. 24), other than as described in paragraph
(3).</text>
</paragraph><paragraph id="H630F631844264899A627837017B40BD7"><enum>(3)</enum><header>Limitation on
credit default swaps</header><text>Acting as a swaps entity for credit default
swaps, including swaps or security-based swaps referencing the credit risk of
asset-backed securities as defined in section 3(a)(77) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(77)) (as amended by this Act) shall not
be considered a bank permissible activity for purposes of subsection (d)(2)
unless such swaps or security-based swaps are cleared by a derivatives clearing
organization (as such term is defined in section la of the Commodity Exchange
Act (7 U.S.C. la)) or a clearing agency (as such term is defined in section 3
of the Securities Exchange Act (15 U.S.C. 78c)) that is registered, or exempt
from registration, as a derivatives clearing organization under the Commodity
Exchange Act or as a clearing agency under the Securities Exchange Act,
respectively.</text>
</paragraph></subsection><subsection id="H813AA8FCE37E4ED79D7E03507F0C4303"><enum>(e)</enum><header>Existing swaps
and security-based swaps</header><text>The prohibition in subsection (a) shall
only apply to swaps or security-based swaps entered into by an insured
depository institution after the end of the transition period described in
subsection (f).</text>
</subsection><subsection id="H206946AAFA654DF8AC2617E84C96D90F"><enum>(f)</enum><header>Transition
period</header><text>To the extent an insured depository institution qualifies
as a <quote>swaps entity</quote> and would be subject to the Federal assistance
prohibition in subsection (a), the appropriate Federal banking agency, after
consulting with and considering the views of the Commodity Futures Trading
Commission or the Securities Exchange Commission, as appropriate, shall permit
the insured depository institution up to 24 months to divest the swaps entity
or cease the activities that require registration as a swaps entity. In
establishing the appropriate transition period to effect such divestiture or
cessation of activities, which may include making the swaps entity an affiliate
of the insured depository institution, the appropriate Federal banking agency
shall take into account and make written findings regarding the potential
impact of such divestiture or cessation of activities on the insured depository
institution's (1) mortgage lending, (2) small business lending, (3) job
creation, and (4) capital formation versus the potential negative impact on
insured depositors and the Deposit Insurance Fund of the Federal Deposit
Insurance Corporation. The appropriate Federal banking agency may consider such
other factors as may be appropriate. The appropriate Federal banking agency may
place such conditions on the insured depository institution's divestiture or
ceasing of activities of the swaps entity as it deems necessary and
appropriate. The transition period under this subsection may be extended by the
appropriate Federal banking agency, after consultation with the Commodity
Futures Trading Commission and the Securities and Exchange Commission, for a
period of up to 1 additional year.</text>
</subsection><subsection id="H0698A2869CC640D4AEA95D3DEB6059F8"><enum>(g)</enum><header>Excluded
entities</header><text>For purposes of this section, the term <term>swaps
entity</term> shall not include any insured depository institution under the
Federal Deposit Insurance Act or a covered financial company under title II
which is in a conservatorship, receivership, or a bridge bank operated by the
Federal Deposit Insurance Corporation.</text>
</subsection><subsection id="HE52D0526BF3848458EA8055DE404EE83"><enum>(h)</enum><header>Effective
date</header><text>The prohibition in subsection (a) shall be effective 2 years
following the date on which this Act is effective.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6270F0CA153E495F8D50A23B72C29133"><enum>(i)</enum><header>Liquidation
required</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE58DD16A43204F16AA58630D0A707601"><enum>(1)</enum><header>In
general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HEF3CAD7D4418412B990A293132146CA3"><enum>(A)</enum><header>FDIC insured
institutions</header><text display-inline="yes-display-inline">All swaps
entities that are FDIC insured institutions that are put into receivership or
declared insolvent as a result of swap or security-based swap activity of the
swaps entities shall be subject to the termination or transfer of that swap or
security-based swap activity in accordance with applicable law prescribing the
treatment of those contracts. No taxpayer funds shall be used to prevent the
receivership of any swap entity resulting from swap or security-based swap
activity of the swaps entity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A58F95118394BF8ADE2161C24CDD0B5"><enum>(B)</enum><header>Institutions
that pose a systemic risk and are subject to heightened prudential supervision
as regulated under section 113</header><text>All swaps entities that are
institutions that pose a systemic risk and are subject to heightened prudential
supervision as regulated under section 113, that are put into receivership or
declared insolvent as a result of swap or security-based swap activity of the
swaps entities shall be subject to the termination or transfer of that swap or
security-based swap activity in accordance with applicable law prescribing the
treatment of those contracts. No taxpayer funds shall be used to prevent the
receivership of any swap entity resulting from swap or security-based swap
activity of the swaps entity.</text>
</subparagraph><subparagraph id="H0744B25E7F354FBC97CBE1CD6859B671"><enum>(C)</enum><header>Non-FDIC
insured, non-systemically significant institutions not subject to heightened
prudential supervision as regulated under section 113</header><text>No taxpayer
resources shall be used for the orderly liquidation of any swaps entities that
are non-FDIC insured, non-systemically significant institutions not subject to
heightened prudential supervision as regulated under section 113.</text>
</subparagraph></paragraph><paragraph id="H556BD7CB9B304330855EE6DB458E854D"><enum>(2)</enum><header>Recovery of
funds</header><text>All funds expended on the termination or transfer of the
swap or security-based swap activity of the swaps entity shall be recovered in
accordance with applicable law from the disposition of assets of such swap
entity or through assessments, including on the financial sector as provided
under applicable law.</text>
</paragraph><paragraph id="HBDA3AF4A647345A28112B8D10D1F7F28"><enum>(3)</enum><header>No losses to
taxpayers</header><text>Taxpayers shall bear no losses from the exercise of any
authority under this title.</text>
</paragraph></subsection><subsection id="HE0F622188F9847B1973413A4D724D1DF"><enum>(j)</enum><header>Prohibition on
unregulated combination of swaps entities and banking</header><text>At no time
following adoption of the rules in subsection (k) may a bank or bank holding
company be permitted to be or become a swap entity unless it conducts its swap
or security-based swap activity in compliance with such minimum standards set
by its prudential regulator as are reasonably calculated to permit the swaps
entity to conduct its swap or security-based swap activities in a safe and
sound manner and mitigate systemic risk.</text>
</subsection><subsection id="H9A2AE2CDA4BD403EA9A181B856414CCA"><enum>(k)</enum><header>Rules</header><text>In
prescribing rules, the prudential regulator for a swaps entity shall consider
the following factors:</text>
<paragraph id="H3A131EE54AAD4D648F15E2C56F7F24AD"><enum>(1)</enum><text>The expertise and
managerial strength of the swaps entity, including systems for effective
oversight.</text>
</paragraph><paragraph id="H7800EE9FE9F8479BBA0D1D142BC52FCA"><enum>(2)</enum><text>The financial
strength of the swaps entity.</text>
</paragraph><paragraph id="H793EF3B821B74EEBA5EEE2FBD901949A"><enum>(3)</enum><text>Systems for
identifying, measuring and controlling risks arising from the swaps entity's
operations.</text>
</paragraph><paragraph id="H9CDA4242BDA04E508C31A261E58F7035"><enum>(4)</enum><text>Systems for
identifying, measuring and controlling the swaps entity's participation in
existing markets.</text>
</paragraph><paragraph id="H27366EFA9EB54900AC51EC8AEA5473E0"><enum>(5)</enum><text>Systems for
controlling the swaps entity's participation or entry into in new markets and
products.</text>
</paragraph></subsection><subsection id="HEC9BF185083B49C79AEBD3047A50C633"><enum>(l)</enum><header>Authority of the
financial stability oversight council</header><text>The Financial Stability
Oversight Council may determine that, when other provisions established by this
Act are insufficient to effectively mitigate systemic risk and protect
taxpayers, that swaps entities may no longer access Federal assistance with
respect to any swap, security-based swap, or other activity of the swaps
entity. Any such determination by the Financial Stability Oversight Council of
a prohibition of federal assistance shall be made on an
institution-by-institution basis, and shall require the vote of not fewer than
two-thirds of the members of the Financial Stability Oversight Council, which
must include the vote by the Chairman of the Council, the Chairman of the Board
of Governors of the Federal Reserve System, and the Chairperson of the Federal
Deposit Insurance Corporation. Notice and hearing requirements for such
determinations shall be consistent with the standards provided in title
I.</text>
</subsection><subsection id="HD10EA66086EE4E60ABB033B8998BA9A6"><enum>(m)</enum><header>Ban on
proprietary trading in derivatives</header><text>An insured depository
institution shall comply with the prohibition on proprietary trading in
derivatives as required by section 619 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act.</text>
</subsection></section><section id="H6225D23D17AD416595FFB3E148A98D59"><enum>717.</enum><header>New product
approval CFTC—SEC process</header>
<subsection id="HEBD4B7E2100C41359C5E05E09DD8DEA5"><enum>(a)</enum><header>Amendments to
the Commodity Exchange Act</header><text>Section 2(a)(1)(C) of the Commodity
Exchange Act (7 U.S.C. 2(a)(1)(C)) is amended—</text>
<paragraph id="HF353346F612E45DF96D8420940E3E7CB"><enum>(1)</enum><text>in clause (i) by
striking <quote>This</quote> and inserting <quote>(I) Except as provided in
subclause (II), this</quote>; and</text>
</paragraph><paragraph id="H7C9220EF8D4445E592F8019F60168E5E"><enum>(2)</enum><text>by adding at the
end of clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="HDE0D4D9B8B00414EB59BC13564499D16" style="OLC">
<subclause id="HE2102EDED0E247A6B2FF56ABF730EB6A"><enum>(II)</enum><text>This Act shall
apply to and the Commission shall have jurisdiction with respect to accounts,
agreements, and transactions involving, and may permit the listing for trading
pursuant to section 5c(c) of, a put, call, or other option on 1 or more
securities (as defined in section 2(a)(1) of the Securities Act of 1933 or
section 3(a)(10) of the Securities Exchange Act of 1934 on the date of
enactment of the Futures Trading Act of 1982), including any group or index of
such securities, or any interest therein or based on the value thereof, that is
exempted by the Securities and Exchange Commission pursuant to section 36(a)(1)
of the Securities Exchange Act of 1934 with the condition that the Commission
exercise concurrent jurisdiction over such put, call, or other option;
provided, however, that nothing in this paragraph shall be construed to affect
the jurisdiction and authority of the Securities and Exchange Commission over
such put, call, or other
option.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD725D0770A9F485F8605FE5C3753A579"><enum>(b)</enum><header>Amendments to
the Securities Exchange Act of 1934</header><text>The Securities Exchange Act
of 1934 is amended by adding the following section after section 3A (15 U.S.C.
78c–1):</text>
<quoted-block display-inline="no-display-inline" id="H8E1A2F41C7FA48EB8A1BEB91EAA6238F" style="OLC">
<section id="HE7B1B1AC2E7D4AA79C7FF38CEDBEABD8"><enum>3B.</enum><header>Securities-related
derivatives</header>
<subsection id="H3D1033B2A5274543B0FAA41312224D99"><enum>(a)</enum><text>Any agreement,
contract, or transaction (or class thereof) that is exempted by the Commodity
Futures Trading Commission pursuant to section 4(c)(1) of the Commodity
Exchange Act (7 U.S.C. 6(c)(1)) with the condition that the Commission exercise
concurrent jurisdiction over such agreement, contract, or transaction (or class
thereof) shall be deemed a security for purposes of the securities laws.</text>
</subsection><subsection id="HEA3B137DC4E144908AEF71EC349A5C3C"><enum>(b)</enum><text>With respect to
any agreement, contract, or transaction (or class thereof) that is exempted by
the Commodity Futures Trading Commission pursuant to section 4(c)(1) of the
Commodity Exchange Act (7 U.S.C. 6(c)(1)) with the condition that the
Commission exercise concurrent jurisdiction over such agreement, contract, or
transaction (or class thereof), references in the securities laws to the
<quote>purchase</quote> or <quote>sale</quote> of a security shall be deemed to
include the execution, termination (prior to its scheduled maturity date),
assignment, exchange, or similar transfer or conveyance of, or extinguishing of
rights or obligations under such agreement, contract, or transaction, as the
context may
require.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6FDB6D4F692F4B03B78C925ADA6FACDC"><enum>(c)</enum><header>Amendment to
Securities Exchange Act of 1934</header><text>Section 19(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HC7691388AEAE4B84A37E7965DB94D7A8" style="OLC">
<paragraph id="H65CCCC7A106D4F33BA3B83CB472AF30F"><enum>(10)</enum><text>Notwithstanding
paragraph (2), the time period within which the Commission is required by order
to approve a proposed rule change or institute proceedings to determine whether
the proposed rule change should be disapproved is stayed pending a
determination by the Commission upon the request of the Commodity Futures
Trading Commission or its Chairman that the Commission issue a determination as
to whether a product that is the subject of such proposed rule change is a
security pursuant to section 718 of the <short-title>Wall
Street Transparency and Accountability Act of
2010</short-title>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA92B0247A36D419286BB910CF495E5CF"><enum>(d)</enum><header>Amendment to
Commodity Exchange Act</header><text>Section 5c(c)(1) of the Commodity Exchange
Act (7 U.S.C. 7a–2(c)(1)) is amended—</text>
<paragraph id="HF83EE768DEF8441290207CB2A50A58D0"><enum>(1)</enum><text>by striking
<quote>Subject to paragraph (2)</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H55FDFCE61BF74F51963895A6A5ABC9ED" style="OLC">
<subparagraph id="H090391D5B22E47D2B4E8EFC1B7E8F265"><enum>(A)</enum><header>Election</header><text>Subject
to paragraph (2)</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H01142573E37945AD8C806E0652F210F4"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H211D41B0094F4C8693D8D1761DCB8761" style="OLC">
<subparagraph id="HD6CDB61B91734FD5B77581E84CE0FDA2"><enum>(B)</enum><header>Certification</header><text>The
certification of a product pursuant to this paragraph shall be stayed pending a
determination by the Commission upon the request of the Securities and Exchange
Commission or its Chairman that the Commission issue a determination as to
whether the product that is the subject of such certification is a contract of
sale of a commodity for future delivery, an option on such a contract, or an
option on a commodity pursuant to section 718 of the
<short-title>Wall Street Transparency and Accountability
Act of
2010</short-title>.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HE6902994D42B4174951394D022580922"><enum>718.</enum><header>Determining
status of novel derivative products</header>
<subsection id="HC738A59F0AAD4804BC961F08874600BC"><enum>(a)</enum><header>Process for
determining the status of a novel derivative product</header>
<paragraph id="H01E2DBB8342A4BEB9A1A1BDC68D80DDD"><enum>(1)</enum><header>Notice</header>
<subparagraph id="HF13E6B7DBED543148A9C6C3B5AEA6A72"><enum>(A)</enum><header>In
general</header><text>Any person filing a proposal to list or trade a novel
derivative product that may have elements of both securities and contracts of
sale of a commodity for future delivery (or options on such contracts or
options on commodities) may concurrently provide notice and furnish a copy of
such filing with the Securities and Exchange Commission and the Commodity
Futures Trading Commission. Any such notice shall state that notice has been
made with both Commissions.</text>
</subparagraph><subparagraph id="H0DFD03B2AA924D12A36C294B97BE2C9F"><enum>(B)</enum><header>Notification</header><text>If
no concurrent notice is made pursuant to subparagraph (A), within 5 business
days after determining that a proposal that seeks to list or trade a novel
derivative product may have elements of both securities and contracts of sale
of a commodity for future delivery (or options on such contracts or options on
commodities), the Securities and Exchange Commission or the Commodity Futures
Trading Commission, as applicable, shall notify the other Commission and
provide a copy of such filing to the other Commission.</text>
</subparagraph></paragraph><paragraph id="H16A4C741FE2D4857B0B6C234B3E874E2"><enum>(2)</enum><header>Request for
determination</header>
<subparagraph id="HAF4BC1BCFBA14D8C9869020C59DBEB7B"><enum>(A)</enum><header>In
general</header><text>No later than 21 days after receipt of a notice under
paragraph (1), or upon its own initiative if no such notice is received, the
Commodity Futures Trading Commission may request that the Securities and
Exchange Commission issue a determination as to whether a product is a
security, as defined in section 3(a)(10) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(10)).</text>
</subparagraph><subparagraph id="H161E29F4E7484E699B0F94CA798A29A4"><enum>(B)</enum><header>Request</header><text>No
later than 21 days after receipt of a notice under paragraph (1), or upon its
own initiative if no such notice is received, the Securities and Exchange
Commission may request that the Commodity Futures Trading Commission issue a
determination as to whether a product is a contract of sale of a commodity for
future delivery, an option on such a contract, or an option on a commodity
subject to the Commodity Futures Trading Commission’s exclusive jurisdiction
under section 2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C.
2(a)(1)(A)).</text>
</subparagraph><subparagraph id="H3F427DE6AEC6458C821E2390904CC304"><enum>(C)</enum><header>Requirement
relating to request</header><text>A request under subparagraph (A) or (B) shall
be made by submitting such request, in writing, to the Securities and Exchange
Commission or the Commodity Futures Trading Commission, as applicable.</text>
</subparagraph><subparagraph id="H0022112B8539484882DA70E6FBF7FEF0"><enum>(D)</enum><header>Effect</header><text>Nothing
in this paragraph shall be construed to prevent—</text>
<clause id="H0ABF20F9CE574575BC711A1F26DD0EAA"><enum>(i)</enum><text>the
Commodity Futures Trading Commission from requesting that the Securities and
Exchange Commission grant an exemption pursuant to section 36(a)(1) of the
Securities Exchange Act of 1934 (15 U.S.C. 78mm(a)(1)) with respect to a
product that is the subject of a filing under paragraph (1); or</text>
</clause><clause id="H15BA7BFF18F3491A81721C09675CD7CA"><enum>(ii)</enum><text>the
Securities and Exchange Commission from requesting that the Commodity Futures
Trading Commission grant an exemption pursuant to section 4(c)(1) of the
Commodity Exchange Act (7 U.S.C. 6(c)(1)) with respect to a product that is the
subject of a filing under paragraph (1),</text>
</clause><continuation-text continuation-text-level="subparagraph"><italic>Provided</italic>,
however, that nothing in this subparagraph shall be construed to require the
Commodity Futures Trading Commission or the Securities and Exchange Commission
to issue an exemption requested pursuant to this subparagraph; <italic>provided
further</italic>, That an order granting or denying an exemption described in
this subparagraph and issued under paragraph (3)(B) shall not be subject to
judicial review pursuant to subsection (b).</continuation-text></subparagraph><subparagraph id="H8E42234A89C245A9BD620693D88261F8"><enum>(E)</enum><header>Withdrawal of
request</header><text>A request under subparagraph (A) or (B) may be withdrawn
by the Commission making the request at any time prior to a determination being
made pursuant to paragraph (3) for any reason by providing written notice to
the head of the other Commission.</text>
</subparagraph></paragraph><paragraph id="H7B3A97C93EEC4C1A88EA8C41E14FE94F"><enum>(3)</enum><header>Determination</header><text>Notwithstanding
any other provision of law, no later than 120 days after the date of receipt of
a request—</text>
<subparagraph id="H6E81746C18C84105B6232D39326E65B0"><enum>(A)</enum><text>under subparagraph
(A) or (B) of paragraph (2), unless such request has been withdrawn pursuant to
paragraph (2)(E), the Securities and Exchange Commission or the Commodity
Futures Trading Commission, as applicable, shall, by order, issue the
determination requested in subparagraph (A) or (B) of paragraph (2), as
applicable, and the reasons therefor; or</text>
</subparagraph><subparagraph id="HADFD6FC6AE894AF7833B5CE995B78199"><enum>(B)</enum><text>under paragraph
(2)(D), unless such request has been withdrawn, the Securities and Exchange
Commission or the Commodity Futures Trading Commission, as applicable, shall
grant an exemption or provide reasons for not granting such exemption, provided
that any decision by the Securities and Exchange Commission not to grant such
exemption shall not be reviewable under section 25 of the Securities Exchange
Act of 1934 (15 U.S.C. 78y).</text>
</subparagraph></paragraph></subsection><subsection id="HED70155D1B7449E7B98982AD6AF256CC"><enum>(b)</enum><header>Judicial
resolution</header>
<paragraph id="H0071CEA0069C4CDB99323DDD94CC8462"><enum>(1)</enum><header>In
general</header><text>The Commodity Futures Trading Commission or the
Securities and Exchange Commission may petition the United States Court of
Appeals for the District of Columbia Circuit for review of a final order of the
other Commission issued pursuant to subsection (a)(3)(A), with respect to a
novel derivative product that may have elements of both securities and
contracts of sale of a commodity for future delivery (or options on such
contracts or options on commodities) that it believes affects its statutory
jurisdiction within 60 days after the date of entry of such order, a written
petition requesting a review of the order. Any such proceeding shall be
expedited by the Court of Appeals.</text>
</paragraph><paragraph id="HBE9760EF34064A7B80AF317190917E31"><enum>(2)</enum><header>Transmittal of
petition and record</header><text>A copy of a petition described in paragraph
(1) shall be transmitted not later than 1 business day after filing by the
complaining Commission to the responding Commission. On receipt of the
petition, the responding Commission shall file with the court a copy of the
order under review and any documents referred to therein, and any other
materials prescribed by the court.</text>
</paragraph><paragraph id="HE34CECA1C664422AB4CC4B7A9C12A4CB"><enum>(3)</enum><header>Standard of
review</header><text>The court, in considering a petition filed pursuant to
paragraph (1), shall give no deference to, or presumption in favor of, the
views of either Commission.</text>
</paragraph><paragraph id="H14885B53D8AC4AD5AAA742F2394763C9"><enum>(4)</enum><header>Judicial
stay</header><text>The filing of a petition by the complaining Commission
pursuant to paragraph (1) shall operate as a stay of the order, until the date
on which the determination of the court is final (including any appeal of the
determination).</text>
</paragraph></subsection></section><section id="H97AFA32D34F348BF9DF0EDD1FF56EBE9"><enum>719.</enum><header>Studies</header>
<subsection commented="no" display-inline="no-display-inline" id="H89F591429EEC49DC8DDCA69F5E58EC4F"><enum>(a)</enum><header display-inline="yes-display-inline">Study on effects of position limits on
trading on exchanges in the United States</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDAF3F1C5B1F24F0991EB45CDF870F2A8"><enum>(1)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Commodity Futures Trading Commission,
in consultation with each entity that is a designated contract market under the
Commodity Exchange Act, shall conduct a study of the effects (if any) of the
position limits imposed pursuant to the other provisions of this title on
excessive speculation and on the movement of transactions from exchanges in the
United States to trading venues outside the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEBF21A6C1DFB47388C2E7B7936E147E6"><enum>(2)</enum><header display-inline="yes-display-inline">Report to the Congress</header><text display-inline="yes-display-inline">Within 12 months after the imposition of
position limits pursuant to the other provisions of this title, the Commodity
Futures Trading Commission, in consultation with each entity that is a
designated contract market under the Commodity Exchange Act, shall submit to
the Congress a report on the matters described in paragraph (1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1CA9F71E75044EFCBE957EA3CA2A02CB"><enum>(3)</enum><header>Required
hearing</header><text display-inline="yes-display-inline">Within 30 legislative
days after the submission to the Congress of the report described in paragraph
(2), the Committee on Agriculture of the House of Representatives shall hold a
hearing examining the findings of the report.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H393B7FC4E7F54699A6149D33B6472F13"><enum>(4)</enum><header>Biennial
reporting</header><text display-inline="yes-display-inline">In addition to the
study required in paragraph (1), the Chairman of the Commodity Futures Trading
Commission shall prepare and submit to the Congress biennial reports on the
growth or decline of the derivatives markets in the United States and abroad,
which shall include assessments of the causes of any such growth or decline,
the effectiveness of regulatory regimes in managing systemic risk, a comparison
of the costs of compliance at the time of the report for market participants
subject to regulation by the United States with the costs of compliance in
December 2008 for the market participants, and the quality of the available
data. In preparing the report, the Chairman shall solicit the views of, consult
with, and address the concerns raised by, market participants, regulators,
legislators, and other interested parties.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H263F1E3652894BEFA150BDBBD1B62420"><enum>(b)</enum><header display-inline="yes-display-inline">Study on feasibility of requiring use of
standardized algorithmic descriptions for financial derivatives</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA146C355E0AD42A3AE6C60BF8DF8EF31"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Securities and Exchange Commission and
the Commodity Futures Trading Commission shall conduct a joint study of the
feasibility of requiring the derivatives industry to adopt standardized
computer-readable algorithmic descriptions which may be used to describe
complex and standardized financial derivatives.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF134F1D9BA074F9CBC7D0EE8BE1D7847"><enum>(2)</enum><header display-inline="yes-display-inline">Goals</header><text display-inline="yes-display-inline">The algorithmic descriptions defined in the
study shall be designed to facilitate computerized analysis of individual
derivative contracts and to calculate net exposures to complex derivatives. The
algorithmic descriptions shall be optimized for simultaneous use by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB1DE25792E5E48CFA3F7727A257A235D"><enum>(A)</enum><text display-inline="yes-display-inline">commercial users and traders of
derivatives;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF73CCD6E6A7A43D6BA953D514C8EBB76"><enum>(B)</enum><text display-inline="yes-display-inline">derivative clearing houses, exchanges and
electronic trading platforms;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA2F4EA396EBA4D2B8D2E9FAA12A70790"><enum>(C)</enum><text display-inline="yes-display-inline">trade repositories and regulator
investigations of market activities; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF809E9E4457A4B69946F2B1A8398C0FD"><enum>(D)</enum><text display-inline="yes-display-inline">systemic risk regulators.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The study will also examine the
extent to which the algorithmic description, together with standardized and
extensible legal definitions, may serve as the binding legal definition of
derivative contracts. The study will examine the logistics of possible
implementations of standardized algorithmic descriptions for derivatives
contracts. The study shall be limited to electronic formats for exchange of
derivative contract descriptions and will not contemplate disclosure of
proprietary valuation models.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF41614164234EA89AB133A99BB500E5"><enum>(3)</enum><header display-inline="yes-display-inline">International coordination</header><text display-inline="yes-display-inline">In conducting the study, the Securities and
Exchange Commission and the Commodity Futures Trading Commission shall
coordinate the study with international financial institutions and regulators
as appropriate and practical.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95CE83C6F388495D96037B19B273EF20"><enum>(4)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Within 8 months after the date of the
enactment of this Act, the Securities and Exchange Commission and the Commodity
Futures Trading Commission shall jointly submit to the Committees on
Agriculture and on Financial Services of the House of Representatives and the
Committees on Agriculture, Nutrition, and Forestry and on Banking, Housing, and
Urban Affairs of the Senate a written report which contains the results of the
study required by paragraphs (1) through (3).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H644912D0B2DE45CFA0C571273F0E775B"><enum>(c)</enum><header>International
swap regulation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H474C11CD390B4CDB8A8A88789FF33A78"><enum>(1)</enum><header>In
general</header><text>The Commodity Futures Trading Commission and the
Securities and Exchange Commission shall jointly conduct a study—</text>
<subparagraph id="HBD93939808F140F0A011056A3B943709"><enum>(A)</enum><text>relating
to—</text>
<clause id="HD1F120969E8941379D810C74B4522F5C"><enum>(i)</enum><text>swap
regulation in the United States, Asia, and Europe; and</text>
</clause><clause id="H1B3CC2E5567D4E96BBB993D2BE82D832"><enum>(ii)</enum><text>clearing house
and clearing agency regulation in the United States, Asia, and Europe;
and</text>
</clause></subparagraph><subparagraph id="H835F48A4DF9040DD8670C6C6FD99BAFD"><enum>(B)</enum><text>that identifies
areas of regulation that are similar in the United States, Asia and Europe and
other areas of regulation that could be harmonized</text>
</subparagraph></paragraph><paragraph id="H7D43272DF0524985B93649C93F90EF7D"><enum>(2)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Commodity
Futures Trading Commission and the Securities and Exchange Commission shall
submit to the Committee on Agriculture, Nutrition, and Forestry and the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Agriculture and the Committee on Financial Services of the House
of Representatives a report that includes a description of the results of the
study under subsection (a), including—</text>
<subparagraph id="H8DA5BE5FD8DD49C6B6685BEE9A9296CD"><enum>(A)</enum><text>identification of
the major exchanges and their regulator in each geographic area for the trading
of swaps and security-based swaps including a listing of the major contracts
and their trading volumes and notional values as well as identification of the
major swap dealers participating in such markets;</text>
</subparagraph><subparagraph id="HEF8FF06B917C43A8AC08533EC306B49D"><enum>(B)</enum><text>identification of
the major clearing houses and clearing agencies and their regulator in each
geographic area for the clearing of swaps and security-based swaps, including a
listing of the major contracts and the clearing volumes and notional values as
well as identification of the major clearing members of such clearing houses
and clearing agencies in such markets;</text>
</subparagraph><subparagraph id="H4E626B4C72D14C94A3AB0149F4824327"><enum>(C)</enum><text>a description of
the comparative methods of clearing swaps in the United States, Asia, and
Europe; and</text>
</subparagraph><subparagraph id="H9C7CF2904BCE423F96EE8C2A7EC81AB8"><enum>(D)</enum><text>a description of
the various systems used for establishing margin on individual swaps,
security-based swaps, and swap portfolios.</text>
</subparagraph></paragraph></subsection><subsection id="H830CA78988204CE0A26A4C7722A157E8"><enum>(d)</enum><header>Stable value
contracts</header>
<paragraph id="H820F78F5C3BD4BA28438C1F778D781F7"><enum>(1)</enum><header>Determination</header>
<subparagraph id="H0664D274D6A642D9BED25CC398D32D5A"><enum>(A)</enum><header>Status</header><text>Not
later than 15 months after the date of the enactment of this Act, the
Securities and Exchange Commission and the Commodity Futures Trading Commission
shall, jointly, conduct a study to determine whether stable value contracts
fall within the definition of a swap. In making the determination required
under this subparagraph, the Commissions jointly shall consult with the
Department of Labor, the Department of the Treasury, and the State entities
that regulate the issuers of stable value contracts.</text>
</subparagraph><subparagraph id="HBB27391F095F4E42985BCD48782D2E1F"><enum>(B)</enum><header>Regulations</header><text>If
the Commissions determine that stable value contracts fall within the
definition of a swap, the Commissions jointly shall determine if an exemption
for stable value contracts from the definition of swap is appropriate and in
the public interest. The Commissions shall issue regulations implementing the
determinations required under this paragraph. Until the effective date of such
regulations, and notwithstanding any other provision of this title, the
requirements of this title shall not apply to stable value contracts.</text>
</subparagraph><subparagraph id="H1B9CF32C3C5E46CABDB92049E95F49A3"><enum>(C)</enum><header>Legal
certainty</header><text>Stable value contracts in effect prior to the effective
date of the regulations described in subparagraph (B) shall not be considered
swaps.</text>
</subparagraph></paragraph><paragraph id="H3E1F562FE4534D6E8E5DBE49E7897634"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <quote>stable value contract</quote>
means any contract, agreement, or transaction that provides a crediting
interest rate and guaranty or financial assurance of liquidity at contract or
book value prior to maturity offered by a bank, insurance company, or other
State or federally regulated financial institution for the benefit of any
individual or commingled fund available as an investment in an employee benefit
plan (as defined in section 3(3) of the Employee Retirement Income Security Act
of 1974, including plans described in section 3(32) of such Act) subject to
participant direction, an eligible deferred compensation plan (as defined in
section 457(b) of the Internal Revenue Code of 1986) that is maintained by an
eligible employer described in section 457(e)(1)(A) of such Code, an
arrangement described in section 403(b) of such Code, or a qualified tuition
program (as defined in section 529 of such Code).</text>
</paragraph></subsection></section><section id="H10F876844B1A4042B9C51A6DF0AD05FE"><enum>720.</enum><header>Memorandum</header>
<subsection commented="no" display-inline="no-display-inline" id="HABC35F3B98954A6A8A10E8802546DBD1"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HC78275C0187F4A1FBB4BC931E800C349"><enum>(1)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
and the Federal Energy Regulatory Commission shall, not later than 180 days
after the date of the enactment of this Act, negotiate a memorandum of
understanding to establish procedures for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9B8E609994A3402387CBA822290FE7DD" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">applying their respective authorities in a
manner so as to ensure effective and efficient regulation in the public
interest;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD54E6C182CF543918DE812D97A5C8EB6" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">resolving conflicts concerning overlapping
jurisdiction between the 2 agencies; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H09B608AED6134D1D8EDF7DE26C345E07" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">avoiding, to the extent possible,
conflicting or duplicative regulation.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAFDACBB041EC474BAB0F948C35079B63" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Such memorandum and any subsequent
amendments to the memorandum shall be promptly submitted to the appropriate
committees of Congress.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB2C772B557C24960ABC0343F277C3F32"><enum>(b)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading Commission
and the Federal Energy Regulatory Commission shall, not later than 180 days
after the date of the enactment of this section, negotiate a memorandum of
understanding to share information that may be requested where either
Commission is conducting an investigation into potential manipulation, fraud,
or market power abuse in markets subject to such Commission’s regulation or
oversight. Shared information shall remain subject to the same restrictions on
disclosure applicable to the Commission initially holding the
information.</text>
</subsection></section></part><part id="H60CC09D70157442F9E1D34BC2A995ED8"><enum>II</enum><header>Regulation of
Swap Markets</header>
<section id="H426DEB3645814EBCBC7E0F211F300ADE"><enum>721.</enum><header>Definitions</header>
<subsection id="H817D15CAF24E4E6AB37274FA761F2272"><enum>(a)</enum><header>In
general</header><text>Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is
amended—</text>
<paragraph id="H8E40B016BEC547F18BD32D96D7C0F87D"><enum>(1)</enum><text>by redesignating
paragraphs (2), (3) and (4), (5) through (17), (18) through (23), (24) through
(28), (29), (30), (31) through (33), and (34) as paragraphs (6), (8) and (9),
(11) through (23), (26) through (31), (34) through (38), (40), (41), (44)
through (46), and (51), respectively;</text>
</paragraph><paragraph id="H59F6F02AA48441018BABA316091F0C22"><enum>(2)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="HD368D9D9FDD243B5A5ADEC55E28725CF" style="OLC">
<paragraph id="H551F110E67D94ACE91F01D9D601166E9"><enum>(2)</enum><header>Appropriate
federal banking agency</header><text>The term <quote>appropriate Federal
banking agency</quote>—</text>
<subparagraph id="H866FEC2A98824C64B6FFCECCBB7E4153"><enum>(A)</enum><text>has the meaning
given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813);</text>
</subparagraph><subparagraph id="HCDF4183BF4A441939D956181540FD08A"><enum>(B)</enum><text>means the Board in
the case of a noninsured State bank; and</text>
</subparagraph><subparagraph id="HDDA3C7F01FE246FB83BB589E154FBEFF"><enum>(C)</enum><text>is the Farm Credit
Administration for farm credit system institutions.</text>
</subparagraph></paragraph><paragraph id="H098BCD80B6F54973A183D9331A926F6C"><enum>(3)</enum><header>Associated
person of a security-based swap dealer or major security-based swap
participant</header><text display-inline="yes-display-inline">The term
<term>associated person of a security-based swap dealer or major security-based
swap participant</term> has the meaning given the term in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph id="HC12DDA4092544657967018DD4091B215"><enum>(4)</enum><header>Associated
person of a swap dealer or major swap participant</header>
<subparagraph id="HD2AF854CF15E4285AB6DDE6D4BB420C6"><enum>(A)</enum><header>In
general</header><text>The term <term>associated person of a swap dealer or
major swap participant</term> means a person who is associated with a swap
dealer or major swap participant as a partner, officer, employee, or agent (or
any person occupying a similar status or performing similar functions), in any
capacity that involves—</text>
<clause id="HB83CB66803674453B8197B238CFEFB62"><enum>(i)</enum><text>the solicitation
or acceptance of swaps; or</text>
</clause><clause id="H064476CE5375477EBA2EEE5A030FC3B3"><enum>(ii)</enum><text>the supervision
of any person or persons so engaged.</text>
</clause></subparagraph><subparagraph id="H9E04239C451845FB85332B6DCFDC7430"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 4s(b)(6), the term <term>associated person of a
swap dealer or major swap participant</term> does not include any person
associated with a swap dealer or major swap participant the functions of which
are solely clerical or ministerial.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA239DD9E4B03455FAE446958F0D56B43"><enum>(5)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="HE7287472F6374C8FB6F25BC18C567D6C"><enum>(3)</enum><text>by inserting after
paragraph (6) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HB0A1BDD09CA04007B30FC996E8637F99" style="OLC">
<paragraph id="H3A87F59FB30C4DD7A834B9BBCF649BE9"><enum>(7)</enum><header>Cleared
swap</header><text>The term <term>cleared swap</term> means any swap that is,
directly or indirectly, submitted to and cleared by a derivatives clearing
organization registered with the
Commission.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5BA6070C80374177863B080ECE388332"><enum>(4)</enum><text>in paragraph (9)
(as redesignated by paragraph (1)), by striking <quote>except onions</quote>
and all that follows through the period at the end and inserting the following:
<quote>except onions (as provided by the first section of Public Law 85–839 (7
U.S.C. 13–1)) and motion picture box office receipts (or any index, measure,
value, or data related to such receipts), and all services, rights, and
interests (except motion picture box office receipts, or any index, measure,
value or data related to such receipts) in which contracts for future delivery
are presently or in the future dealt in.</quote>;</text>
</paragraph><paragraph id="H88046D7F543F4D53BAA95517B608AF8A"><enum>(5)</enum><text>by inserting after
paragraph (9) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H681BBC973DEA49B79749F9BDAC569485" style="OLC">
<paragraph id="H48EDE33997B547B2938DB17735366AE4"><enum>(10)</enum><header>Commodity
pool</header>
<subparagraph id="H1B7E7F9AB3EE47A0BE3322030D1F50DB"><enum>(A)</enum><header>In
general</header><text>The term <term>commodity pool</term> means any investment
trust, syndicate, or similar form of enterprise operated for the purpose of
trading in commodity interests, including any—</text>
<clause id="H33BC7BBDF68C4D7AABB0BC30E482DD45"><enum>(i)</enum><text>commodity for
future delivery, security futures product, or swap;</text>
</clause><clause id="H8ED6F83241E3405BBA9286F83EF359B5"><enum>(ii)</enum><text>agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i);</text>
</clause><clause id="H3F400B1AFF5848C7B92D1CA890AF9C9C"><enum>(iii)</enum><text>commodity option
authorized under section 4c; or</text>
</clause><clause id="H07A61440B6EF4CB195DD967189FDE3CA"><enum>(iv)</enum><text>leverage
transaction authorized under section 19.</text>
</clause></subparagraph><subparagraph id="H1886B6BD4BAD41EB8AD76BA6F8132BAE"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>commodity pool</term> any investment
trust, syndicate, or similar form of enterprise if the Commission determines
that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1D7BAF93B2644642A7E031CBCE66BA42"><enum>(6)</enum><text>by striking
paragraph (11) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H07CB2B40B0644D379F5EBBB091E36F8A" style="OLC">
<paragraph id="H3A667C2F91834B829653316B7535EE7D"><enum>(11)</enum><header>Commodity pool
operator</header>
<subparagraph id="H55B24B5511A54402AF023885D145BF25"><enum>(A)</enum><header>In
general</header><text>The term <term>commodity pool operator</term> means any
person—</text>
<clause id="H56564CD5C7F94EA9996FE29266D61EA7"><enum>(i)</enum><text>engaged in a
business that is of the nature of a commodity pool, investment trust,
syndicate, or similar form of enterprise, and who, in connection therewith,
solicits, accepts, or receives from others, funds, securities, or property,
either directly or through capital contributions, the sale of stock or other
forms of securities, or otherwise, for the purpose of trading in commodity
interests, including any—</text>
<subclause id="H0B4B002E7BC54458B64F426E2D9AE84B"><enum>(I)</enum><text>commodity for
future delivery, security futures product, or swap;</text>
</subclause><subclause id="H607BB5BCCCED4986A6014436167446DE"><enum>(II)</enum><text>agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i);</text>
</subclause><subclause id="HE7C3E9935183412C838A957C54E13D7E"><enum>(III)</enum><text>commodity option
authorized under section 4c; or</text>
</subclause><subclause id="HD873F1CF0E594C15B26F61D838967A25"><enum>(IV)</enum><text>leverage
transaction authorized under section 19; or</text>
</subclause></clause><clause id="H289C92D3216D43708EACEAC8BBD4BC31"><enum>(ii)</enum><text>who is registered
with the Commission as a commodity pool operator.</text>
</clause></subparagraph><subparagraph id="HDC5836B3F2C6479C92BCC3F7BB4BA701"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>commodity pool operator</term> any
person engaged in a business that is of the nature of a commodity pool,
investment trust, syndicate, or similar form of enterprise if the Commission
determines that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H5CD6EDA77A6944F5B18ECF9479A6D7A9"><enum>(7)</enum><text>in paragraph (12)
(as redesignated by paragraph (1)), in subparagraph (A)—</text>
<subparagraph id="H559367835996444DBE05C63A342E0C23"><enum>(A)</enum><text>in clause
(i)—</text>
<clause id="H4F5BF09AD3D34A08ADF3E25CF56A043B"><enum>(i)</enum><text>in
subclause (I), by striking <quote>made or to be made on or subject to the rules
of a contract market or derivatives transaction execution facility</quote> and
inserting <quote>, security futures product, or swap</quote>;</text>
</clause><clause id="HB2E9910137F34C48B2CCA20B1E873CCF"><enum>(ii)</enum><text>by
redesignating subclauses (II) and (III) as subclauses (III) and (IV);</text>
</clause><clause id="HC41D4432247C45E68978C4052243D375"><enum>(iii)</enum><text>by
inserting after subclause (I) the following:</text>
<quoted-block display-inline="no-display-inline" id="HCC528CD3738F466EAC917D5F760F529E" style="OLC">
<subclause id="H89FA23B757434A01A08332E7D0E378ED"><enum>(II)</enum><text>any agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i)</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HBA1001891FF545938CAB8C9BEEFEDA5F"><enum>(iv)</enum><text>in
subclause (IV) (as so redesignated), by striking <quote>or</quote>;</text>
</clause></subparagraph><subparagraph id="HC2863AC1B3304AD5BC2FDF1DA80E4E34"><enum>(B)</enum><text>in clause (ii), by
striking the period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph id="HAEE7089DBCE24A829F33B5AA88228EC4"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA0B2A2082AFA498FBB06440BCE4A2D7A" style="OLC">
<clause id="HBB5BC64520C94166BDABFD2715782B31"><enum>(iii)</enum><text>is registered
with the Commission as a commodity trading advisor; or</text>
</clause><clause id="HFFDC5475E2E94813B647CB826A01FBB8"><enum>(iv)</enum><text>the Commission,
by rule or regulation, may include if the Commission determines that the rule
or regulation will effectuate the purposes of this
Act.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF49CFEECBE064CD7B75CE9388CF02FC5"><enum>(8)</enum><text>in paragraph (17)
(as redesignated by paragraph (1)), in subparagraph (A), in the matter
preceding clause (i), by striking <quote>paragraph (12)(A)</quote> and
inserting <quote>paragraph (18)(A)</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H08EBEF2D66204340A13728FC39FACF72"><enum>(9)</enum><text>in paragraph (18)
(as redesignated by paragraph (1))—</text>
<subparagraph display-inline="no-display-inline" id="HF01E2512E1CE4313AE81FFC8A689BC91"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause display-inline="no-display-inline" id="H861051A452874079A460906A02AFB74D"><enum>(i)</enum><text>in the matter
following clause (vii)(III)—</text>
<subclause display-inline="no-display-inline" id="H44E91F300A024C72A4CD4C78CCE54779"><enum>(I)</enum><text>by striking
<quote>section 1a (11)(A)</quote> and inserting <quote>paragraph
(17)(A)</quote>; and</text>
</subclause><subclause display-inline="no-display-inline" id="H8B6E2D2106D348DA99273E4E16540565"><enum>(II)</enum><text>by striking
<quote>$25,000,000</quote> and inserting <quote>$50,000,000</quote>; and</text>
</subclause></clause><clause display-inline="no-display-inline" id="H0B58C591ED6B43DA8777183B9094D0C7"><enum>(ii)</enum><text>in clause (xi),
in the matter preceding subclause (I), by striking <quote>total assets in an
amount</quote> and inserting <quote>amounts invested on a discretionary basis,
the aggregate of which is</quote>;</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HB5A0232D8FBF44F5AF04EBB65DE15255"><enum>(10)</enum><text>by striking
paragraph (22) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H7D3B94E247264523AAA3610D54569063" style="OLC">
<paragraph id="H5D6F7DD8B8ED4BCFBEA3DDC4D88CCBB4"><enum>(22)</enum><header>Floor
broker</header>
<subparagraph id="HD2BCC9FF572F4CF8A40CEECF8FF1EF9E"><enum>(A)</enum><header>In
general</header><text>The term <term>floor broker</term> means any
person—</text>
<clause id="HB600F2D89990457989367AD90BC77E21"><enum>(i)</enum><text>who, in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged, shall purchase or sell for any
other person—</text>
<subclause id="H5015B7C23A814972843C36009B73F798"><enum>(I)</enum><text>any commodity for
future delivery, security futures product, or swap; or</text>
</subclause><subclause id="H4461D4A9347F4235A046CF33AD60DA5F"><enum>(II)</enum><text>any commodity
option authorized under section 4c; or</text>
</subclause></clause><clause id="HC704F0FF3A9741DF812FAB62B413ED7E"><enum>(ii)</enum><text>who is registered
with the Commission as a floor broker.</text>
</clause></subparagraph><subparagraph id="H309380D059DE48E4B94B29199490A8D8"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <term>floor broker</term> any person in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged who trades for any other person if
the Commission determines that the rule or regulation will effectuate the
purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H4C569824714142C8B83EA3D68B9A3C3F"><enum>(11)</enum><text>by striking
paragraph (23) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H0E90297CFA7E491C9D90D171D65427E7" style="OLC">
<paragraph id="HEB3627AC6C4B467B9FDB00B8ED896DC7"><enum>(23)</enum><header>Floor
trader</header>
<subparagraph id="H3080C0EFD60D431F99B8E717C2477A6A"><enum>(A)</enum><header>In
general</header><text>The term <term>floor trader</term> means any
person—</text>
<clause id="H5DF445A55D854B51A900A48057AA73C7"><enum>(i)</enum><text>who, in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged, purchases, or sells solely for
such person’s own account—</text>
<subclause id="H933CD68C2841450CB2FF2368F86F91EF"><enum>(I)</enum><text>any commodity for
future delivery, security futures product, or swap; or</text>
</subclause><subclause id="HDF40457E3B1644C58A999B484C4845E2"><enum>(II)</enum><text>any commodity
option authorized under section 4c; or</text>
</subclause></clause><clause id="HB8CBACDF3A5A46DC87E31EFBFDB984A8"><enum>(ii)</enum><text>who is registered
with the Commission as a floor trader.</text>
</clause></subparagraph><subparagraph id="H2B1997D4FF51470D8DEA5E90785019E8"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>floor trader</quote> any person in or
surrounding any pit, ring, post, or other place provided by a contract market
for the meeting of persons similarly engaged who trades solely for such
person’s own account if the Commission determines that the rule or regulation
will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H9C364F1EBD424E42B75EF15201A2788B"><enum>(12)</enum><text>by inserting
after paragraph (23) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HF462BFB68B46466DB9A1A3AEEC330E15" style="OLC">
<paragraph id="H024C08BACFAF46308D1A08491120427C"><enum>(24)</enum><header>Foreign
exchange forward</header><text>The term <term>foreign exchange forward</term>
means a transaction that solely involves the exchange of 2 different currencies
on a specific future date at a fixed rate agreed upon on the inception of the
contract covering the exchange.</text>
</paragraph><paragraph id="H1622C7C15F224569A6FCE111B30F28B6"><enum>(25)</enum><header>Foreign
exchange swap</header><text>The term <term>foreign exchange swap</term> means a
transaction that solely involves—</text>
<subparagraph id="H688DB6C7706B450B966E99C6D5AC0FEB"><enum>(A)</enum><text>an exchange of 2
different currencies on a specific date at a fixed rate that is agreed upon on
the inception of the contract covering the exchange; and</text>
</subparagraph><subparagraph id="H09BE21BF79FC4C799D920E97A6BA28E9"><enum>(B)</enum><text>a reverse exchange
of the 2 currencies described in subparagraph (A) at a later date and at a
fixed rate that is agreed upon on the inception of the contract covering the
exchange.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H3B8837DCC734406784CEF8CAAC7289EC"><enum>(13)</enum><text>by striking
paragraph (28) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF9D84D5135BB44B3968A2C53B1DF2740" style="OLC">
<paragraph id="H0B1D8CA5477B41A99BCCA44D78677D13"><enum>(28)</enum><header>Futures
commission merchant</header>
<subparagraph id="HBDF614D97FCA451B97A398C418E5A907"><enum>(A)</enum><header>In
general</header><text>The term <term>futures commission merchant</term> means
an individual, association, partnership, corporation, or trust—</text>
<clause id="HB4586F02372D444FB82600EC4995414B"><enum>(i)</enum><text>that—</text>
<subclause id="HDA05A361993445FDA35C661BB93272FA"><enum>(I)</enum><text>is—</text>
<item id="H5C166F62CD1B46DA97F501123FC8706A"><enum>(aa)</enum><text>engaged in
soliciting or in accepting orders for—</text>
<subitem id="H01E6BF45E2534FCB8E8B1279BD944AFC"><enum>(AA)</enum><text>the purchase or
sale of a commodity for future delivery;</text>
</subitem><subitem id="H9B4BF00C58CB409BA6255BFAD3F7F959"><enum>(BB)</enum><text>a security
futures product;</text>
</subitem><subitem id="HE8F07AEC0A5B4CC98B51A9577322BEA5"><enum>(CC)</enum><text>a swap;</text>
</subitem><subitem id="HD8D34907ACA24C4587D5678DDB16E9D8"><enum>(DD)</enum><text>any agreement,
contract, or transaction described in section 2(c)(2)(C)(i) or section
2(c)(2)(D)(i);</text>
</subitem><subitem id="H1166C8D6859B4F24A7EF497D3627C8C0"><enum>(EE)</enum><text>any commodity
option authorized under section 4c; or</text>
</subitem><subitem id="HB8122EA0329349A3BCF4C337F666161D"><enum>(FF)</enum><text>any leverage
transaction authorized under section 19; or</text>
</subitem></item><item id="H681DE16A5E5E45EDB881D83480347EA9"><enum>(bb)</enum><text>acting as a
counterparty in any agreement, contract, or transaction described in section
2(c)(2)(C)(i) or section 2(c)(2)(D)(i); and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HC1FB483B81FE4D639CB8E4E36409C524"><enum>(II)</enum><text display-inline="yes-display-inline">in or in connection with the activities
described in items (aa) or (bb) of subclause (I), accepts any money,
securities, or property (or extends credit in lieu thereof) to margin,
guarantee, or secure any trades or contracts that result or may result
therefrom; or</text>
</subclause></clause><clause id="HA847FDAB59154CA28CA62C64CDA3528C"><enum>(ii)</enum><text>that is
registered with the Commission as a futures commission merchant.</text>
</clause></subparagraph><subparagraph id="H5FC00BAFEAE54D1B8D659D3B818F16F6"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>futures commission merchant</quote>
any person who engages in soliciting or accepting orders for, or acting as a
counterparty in, any agreement, contract, or transaction subject to this Act,
and who accepts any money, securities, or property (or extends credit in lieu
thereof) to margin, guarantee, or secure any trades or contracts that result or
may result therefrom, if the Commission determines that the rule or regulation
will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H6EAC09DF68D24AC197D5F7CE861AE523"><enum>(14)</enum><text>in paragraph (30)
(as redesignated by paragraph (1)), in subparagraph (B), by striking
<quote>state</quote> and inserting <quote>State</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HBAD5AF96134240BBB03A6C3D1A2BE8CE"><enum>(15)</enum><text>by striking
paragraph (31) (as redesignated by paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H78E71EF7AE894004A6C30AD6E18B9955" style="OLC">
<paragraph id="H00E82A33E66A46099E63A22D995EB791"><enum>(31)</enum><header>Introducing
broker</header>
<subparagraph id="H9037F6B7982C406A9544CBC020BDEACC"><enum>(A)</enum><header>In
general</header><text>The term <term>introducing broker</term> means any person
(except an individual who elects to be and is registered as an associated
person of a futures commission merchant)—</text>
<clause id="H8A6E6901712F4533825B03DF7A4CB271"><enum>(i)</enum><text>who—</text>
<subclause id="HB56DA0AEC5AE43A49297B91DB39343F9"><enum>(I)</enum><text>is engaged in
soliciting or in accepting orders for—</text>
<item id="HF04A8671D8384B229279336B3833A725"><enum>(aa)</enum><text>the
purchase or sale of any commodity for future delivery, security futures
product, or swap;</text>
</item><item id="HD8BC114BD77649A19F66E99972AC4944"><enum>(bb)</enum><text>any
agreement, contract, or transaction described in section 2(c)(2)(C)(i) or
section 2(c)(2)(D)(i);</text>
</item><item id="HA15B5A4EEDA3484AA1BA045574F9ADF7"><enum>(cc)</enum><text>any
commodity option authorized under section 4c; or</text>
</item><item id="H39787BC6030A424CB063F1451CE0BEE4"><enum>(dd)</enum><text>any
leverage transaction authorized under section 19; and</text>
</item></subclause><subclause id="H38A46EB0F3264E57AEBF6BDEA9D96186"><enum>(II)</enum><text>does not accept
any money, securities, or property (or extend credit in lieu thereof) to
margin, guarantee, or secure any trades or contracts that result or may result
therefrom; or</text>
</subclause></clause><clause id="HAF20BA5ADE0C45599D842CBEBA8D6A25"><enum>(ii)</enum><text>who is registered
with the Commission as an introducing broker.</text>
</clause></subparagraph><subparagraph id="HBA5CC979F8534392AE10316D8AFC824D"><enum>(B)</enum><header>Further
definition</header><text>The Commission, by rule or regulation, may include
within, or exclude from, the term <quote>introducing broker</quote> any person
who engages in soliciting or accepting orders for any agreement, contract, or
transaction subject to this Act, and who does not accept any money, securities,
or property (or extend credit in lieu thereof) to margin, guarantee, or secure
any trades or contracts that result or may result therefrom, if the Commission
determines that the rule or regulation will effectuate the purposes of this
Act.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H950D643F3A854C7488430272A0114765"><enum>(16)</enum><text>by inserting
after paragraph (31) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HEA085E5759C94D2D81E5D1A18E4F3DB2" style="OLC">
<paragraph id="HF62E3C6177904D61A443635DCDF37416"><enum>(32)</enum><header>Major
security-based swap participant</header><text>The term <term>major
security-based swap participant</term> has the meaning given the term in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph commented="no" id="H0EF85A878F484BEB9E791BDD141CBF6F"><enum>(33)</enum><header>Major swap
participant</header>
<subparagraph commented="no" id="H4E3D2F0CF53D4783A171D81C8F6821DC"><enum>(A)</enum><header>In
general</header><text>The term <term>major swap participant</term> means any
person who is not a swap dealer, and—</text>
<clause id="HDDC262B79CF34FD69BCDEFF9020A4EDF"><enum>(i)</enum><text>maintains a
substantial position in swaps for any of the major swap categories as
determined by the Commission, excluding—</text>
<subclause id="H461AF584A7264A57B96917F1B3EFB7A4"><enum>(I)</enum><text>positions held for
hedging or mitigating commercial risk; and</text>
</subclause><subclause id="H7747AEC5428F4AB388129EE1B51FC243"><enum>(II)</enum><text>positions
maintained by any employee benefit plan (or any contract held by such a plan)
as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002) for the primary purpose of hedging
or mitigating any risk directly associated with the operation of the
plan;</text>
</subclause></clause><clause commented="no" id="H328520CB0A1F46CEBF30F3E919DC03F5"><enum>(ii)</enum><text>whose outstanding
swaps create substantial counterparty exposure that could have serious adverse
effects on the financial stability of the United States banking system or
financial markets; or</text>
</clause><clause id="H0ADF678F1B2B419F9BE0ABEE238A2F3F"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H247E50830E544B23B0A3F15F2AB76FB0"><enum>(I)</enum><text>is a financial entity
that is highly leveraged relative to the amount of capital it holds and that is
not subject to capital requirements established by an appropriate Federal
banking agency; and</text>
</subclause><subclause id="H989628AF6EBB4C8E8D54964123FCB2E8" indent="up1"><enum>(II)</enum><text>maintains a substantial position in
outstanding swaps in any major swap category as determined by the
Commission.</text>
</subclause></clause></subparagraph><subparagraph id="H98496E42969A4F3BB4DBD70105B5B108"><enum>(B)</enum><header>Definition of
substantial position</header><text>For purposes of subparagraph (A), the
Commission shall define by rule or regulation the term <term>substantial
position</term> at the threshold that the Commission determines to be prudent
for the effective monitoring, management, and oversight of entities that are
systemically important or can significantly impact the financial system of the
United States. In setting the definition under this subparagraph, the
Commission shall consider the person’s relative position in uncleared as
opposed to cleared swaps and may take into consideration the value and quality
of collateral held against counterparty exposures.</text>
</subparagraph><subparagraph id="HF30BD4240F754AFE986FE34E23F1CC6B"><enum>(C)</enum><header>Scope of
designation</header><text>For purposes of subparagraph (A), a person may be
designated as a major swap participant for 1 or more categories of swaps
without being classified as a major swap participant for all classes of
swaps.</text>
</subparagraph><subparagraph id="H0125D28AACB34B6182DAED60E2EAE169"><enum>(D)</enum><header>Exclusions</header><text>The
definition under this paragraph shall not include an entity whose primary
business is providing financing, and uses derivatives for the purpose of
hedging underlying commercial risks related to interest rate and foreign
currency exposures, 90 percent or more of which arise from financing that
facilitates the purchase or lease of products, 90 percent or more of which are
manufactured by the parent company or another subsidiary of the parent
company.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H7518A54AFF6A4772A7D45FFE781AD736"><enum>(17)</enum><text>by inserting
after paragraph (38) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA30F0F9E8F45435093DF1734E443CC32" style="OLC">
<paragraph id="H468652A16E2649C6A4F67E8921EBD9AE"><enum>(39)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term>
means—</text>
<subparagraph id="H471CB6E2B1C0429D92CC3C6684433729"><enum>(A)</enum><text>the Board in the
case of a swap dealer, major swap participant, security-based swap dealer, or
major security-based swap participant that is—</text>
<clause id="H598BEBF6C84F41B7ABCDAC8FD24D6520"><enum>(i)</enum><text>a
State-chartered bank that is a member of the Federal Reserve System;</text>
</clause><clause id="HB7ECD0C8577448838CAB1C6FC9F9E5F0"><enum>(ii)</enum><text>a
State-chartered branch or agency of a foreign bank;</text>
</clause><clause id="HB8E82115A5AD473A9CFB92C136D3B9FF"><enum>(iii)</enum><text>any foreign bank
which does not operate an insured branch;</text>
</clause><clause id="H11C5297E29FC4CD5A29025D14EA58A3D"><enum>(iv)</enum><text>any organization
operating under section 25A of the Federal Reserve Act or having an agreement
with the Board under section 225 of the Federal Reserve Act;</text>
</clause><clause id="HAE385EEB4EFD4C389B146D08AAA37B3A"><enum>(v)</enum><text>any bank holding
company (as defined in section 2 of the Bank Holding Company Act of 1965 (12
U.S.C. 1841)), any foreign bank (as defined in section 1(b)(7) of the
International Banking Act of 1978 (12 U.S.C. 3101(b)(7)) that is treated as a
bank holding company under section 8(a) of the International Banking Act of
1978 (12 U.S.C. 3106(a)), and any subsidiary of such a company or foreign bank
(other than a subsidiary that is described in subparagraph (A) or (B) or that
is required to be registered with the Commission as a swap dealer or major swap
participant under this Act or with the Securities and Exchange Commission as a
security-based swap dealer or major security-based swap participant);</text>
</clause><clause id="H27C12B70F11F47D99C8BD17F6DEFDF4A"><enum>(vi)</enum><text>after the
transfer date (as defined in section 311 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act), any savings and loan holding company (as defined
in section 10 of the Home Owners' Loan Act (12 U.S.C. 1467a)) and any
subsidiary of such company (other than a subsidiary that is described in
subparagraph (A) or (B) or that is required to be registered as a swap dealer
or major swap participant with the Commission under this Act or with the
Securities and Exchange Commission as a security-based swap dealer or major
security-based swap participant); or</text>
</clause><clause id="H2BFAE1C1FB6D48E699439D598550C48D"><enum>(vii)</enum><text>any organization
operating under section 25A of the Federal Reserve Act (12U.S.C. 611 et seq.)
or having an agreement with the Board under section 25 of the Federal Reserve
Act (12 U.S.C. 601 et seq.);</text>
</clause></subparagraph><subparagraph id="HA000D158A52340599CB1954A1B14B3A9"><enum>(B)</enum><text>the Office of the
Comptroller of the Currency in the case of a swap dealer, major swap
participant, security-based swap dealer, or major security-based swap
participant that is—</text>
<clause id="HD16C298356794D368C7A256AEEFD14DC"><enum>(i)</enum><text>a
national bank;</text>
</clause><clause id="H193CEE055A9043579C05113D9E97CE89"><enum>(ii)</enum><text>a
federally chartered branch or agency of a foreign bank; or</text>
</clause><clause id="H83D50B7F11844D06B237AF20B6964855"><enum>(iii)</enum><text>any Federal
savings association;</text>
</clause></subparagraph><subparagraph id="H7A26C396E8B44E9F9A1FE01FE7B5FCD4"><enum>(C)</enum><text>the Federal
Deposit Insurance Corporation in the case of a swap dealer, major swap
participant, security-based swap dealer, or major security-based swap
participant that is—</text>
<clause id="HA8DAB2E2935B477FA4CAD1AB1315EE30"><enum>(i)</enum><text>a
State-chartered bank that is not a member of the Federal Reserve System;
or</text>
</clause><clause id="H670FAAA565E44046966219591781CDEA"><enum>(ii)</enum><text>any State savings
association;</text>
</clause></subparagraph><subparagraph id="H6B877CD10FE440A2BFB7F0BB0B078146"><enum>(D)</enum><text>the Farm Credit
Administration, in the case of a swap dealer, major swap participant,
security-based swap dealer, or major security-based swap participant that is an
institution chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et
seq.); and</text>
</subparagraph><subparagraph id="H5B6AACC1BA1646BB94D4DA2CCC969F7E"><enum>(E)</enum><text>the Federal
Housing Finance Agency in the case of a swap dealer, major swap participant,
security-based swap dealer, or major security-based swap participant that is a
regulated entity (as such term is defined in section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0C1FA0988F1C41BEA6DA131FB2DD022C"><enum>(18)</enum><text>in paragraph (40)
(as redesignated by paragraph (1))—</text>
<subparagraph id="H6A94FC261A34419FBC8467D599A3604B"><enum>(A)</enum><text>by striking
subparagraph (B);</text>
</subparagraph><subparagraph id="HE7F2AED51CB84216AA81548BD835BF34"><enum>(B)</enum><text>by redesignating
subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (F),
respectively;</text>
</subparagraph><subparagraph id="HED824972F10A44F287D95BA9016F74DF"><enum>(C)</enum><text>in subparagraph
(C) (as so redesignated), by striking <quote>and</quote>; and</text>
</subparagraph><subparagraph id="H8EFACAC023F042229BD63EE80096904C"><enum>(D)</enum><text>by inserting after
subparagraph (C) (as so redesignated) the following:</text>
<quoted-block id="H29D8724B421C4467989477EF822C42B3" style="OLC">
<subparagraph id="HA2F54818366B4FC6BB5BB1271836056B"><enum>(D)</enum><text>a swap execution
facility registered under section 5h;</text>
</subparagraph><subparagraph id="HCDE176545F0348C9A98A235ACA42AD86"><enum>(E)</enum><text>a swap data
repository registered under section 21;
and</text>
</subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H533745E75A0A4A0A9C1B50370AD855A5"><enum>(19)</enum><text>by inserting
after paragraph (41) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H35C6DC501C6545B392743D6A612DC201" style="OLC">
<paragraph display-inline="no-display-inline" id="H75E651D166974D3DAF6096D7A63147E1"><enum>(42)</enum><header>Security-based
swap</header><text display-inline="yes-display-inline">The term
<term>security-based swap</term> has the meaning given the term in section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H1EE12695D9CE410496E3F92CEFA2189C"><enum>(43)</enum><header>Security-based
swap dealer</header><text display-inline="yes-display-inline">The term
<term>security-based swap dealer</term> has the meaning given the term in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H9C7AF7D50B384030ADCD213B6C575BC4"><enum>(20)</enum><text display-inline="yes-display-inline">in paragraph (46) (as redesignated by
paragraph (1)), by striking <quote>subject to section 2(h)(7)</quote> and
inserting <quote>subject to section 2(h)(5)</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H468664918E714B56857F0CE40F60C633"><enum>(21)</enum><text display-inline="yes-display-inline">by inserting after paragraph (46) (as
redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HCC586094E5B84DD69144346C5974C311" style="OLC">
<paragraph id="HB596008961D04C20ABA98861F6023488"><enum>(47)</enum><header>Swap</header>
<subparagraph id="HC95C3DF7B50E40CB9D2085B8174F55C2"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>swap</term> means any agreement, contract, or transaction—</text>
<clause id="H3F39BA6FBE214B99B2A86F7A26B65125"><enum>(i)</enum><text>that is a put,
call, cap, floor, collar, or similar option of any kind that is for the
purchase or sale, or based on the value, of 1 or more interest or other rates,
currencies, commodities, securities, instruments of indebtedness, indices,
quantitative measures, or other financial or economic interests or property of
any kind;</text>
</clause><clause id="H1C033B0D4EF149C1BF4D015F427698E8"><enum>(ii)</enum><text>that provides for
any purchase, sale, payment, or delivery (other than a dividend on an equity
security) that is dependent on the occurrence, nonoccurrence, or the extent of
the occurrence of an event or contingency associated with a potential
financial, economic, or commercial consequence;</text>
</clause><clause id="H9305CAC5820343FABB006F4F6162DC35"><enum>(iii)</enum><text>that provides on
an executory basis for the exchange, on a fixed or contingent basis, of 1 or
more payments based on the value or level of 1 or more interest or other rates,
currencies, commodities, securities, instruments of indebtedness, indices,
quantitative measures, or other financial or economic interests or property of
any kind, or any interest therein or based on the value thereof, and that
transfers, as between the parties to the transaction, in whole or in part, the
financial risk associated with a future change in any such value or level
without also conveying a current or future direct or indirect ownership
interest in an asset (including any enterprise or investment pool) or liability
that incorporates the financial risk so transferred, including any agreement,
contract, or transaction commonly known as—</text>
<subclause id="H02773071CC63488E96841C2E5A888001"><enum>(I)</enum><text>an interest rate
swap;</text>
</subclause><subclause id="H0FBD690D39404ECAAD08F52857B26F50"><enum>(II)</enum><text>a rate
floor;</text>
</subclause><subclause id="HE2B5E912D37B4F5280B12FE0697A9015"><enum>(III)</enum><text>a rate
cap;</text>
</subclause><subclause id="H53BD8288E9F941FF8AB087BC2FF99D5C"><enum>(IV)</enum><text>a rate
collar;</text>
</subclause><subclause id="H62CF06F75C4B46F9887E222D0435BA39"><enum>(V)</enum><text>a cross-currency
rate swap;</text>
</subclause><subclause id="H0FA3BB944F7649B0A59EEEEBD30068D8"><enum>(VI)</enum><text>a basis
swap;</text>
</subclause><subclause id="H30C50A8C6A234D36BB540634CB84A8F0"><enum>(VII)</enum><text>a currency
swap;</text>
</subclause><subclause id="H38B01EB6C0DF4C10998CA2D22E9D9B30"><enum>(VIII)</enum><text>a foreign
exchange swap;</text>
</subclause><subclause id="H1AE8CD9480E84009A30EA4CA4A8F3370"><enum>(IX)</enum><text>a total return
swap;</text>
</subclause><subclause id="H542A4C0B4CC44074A4BFF6968B24ED08"><enum>(X)</enum><text>an equity index
swap;</text>
</subclause><subclause id="HC65FD3B982404E94B6C3E3DB97B40649"><enum>(XI)</enum><text>an equity
swap;</text>
</subclause><subclause id="HC0A1E44BDA6C49EBB7302C918DD5DAB2"><enum>(XII)</enum><text>a debt index
swap;</text>
</subclause><subclause id="H75A04D41E2604CB1B8D2BFF1B1D7B373"><enum>(XIII)</enum><text>a debt
swap;</text>
</subclause><subclause id="H99618EA631564827B1D820BAC3E5F6AD"><enum>(XIV)</enum><text>a credit
spread;</text>
</subclause><subclause id="H7C23D02923A44772A69ED838C7A1F94B"><enum>(XV)</enum><text>a credit default
swap;</text>
</subclause><subclause id="H94724A8FD49F4BCB93643B6D7F255A18"><enum>(XVI)</enum><text>a credit
swap;</text>
</subclause><subclause id="H7056E4C175C6485785305E3C30CBEE66"><enum>(XVII)</enum><text>a weather
swap;</text>
</subclause><subclause id="HF1A8477600114DF6A4CB8EBD09B1E4D0"><enum>(XVIII)</enum><text>an energy
swap;</text>
</subclause><subclause id="H8D7BC753A3BC4F82A74EACFF4AEA90A5"><enum>(XIX)</enum><text>a metal
swap;</text>
</subclause><subclause id="HE9B50A3B2E1044B2B55F8E238C7AB73D"><enum>(XX)</enum><text>an agricultural
swap;</text>
</subclause><subclause id="H195D6A07C9A549C7BD1325EC6C6DF4D7"><enum>(XXI)</enum><text>an emissions
swap; and</text>
</subclause><subclause id="HABA5A485DFEE40E4856E39AF036B1F4C"><enum>(XXII)</enum><text>a commodity
swap;</text>
</subclause></clause><clause id="H4B6F601FB4AC46B2874B24CAF43D0208"><enum>(iv)</enum><text>that is an
agreement, contract, or transaction that is, or in the future becomes, commonly
known to the trade as a swap;</text>
</clause><clause commented="no" id="HF8278F34F0AC4521820F5573D218774A"><enum>(v)</enum><text>including any
security-based swap agreement which meets the definition of <quote>swap
agreement</quote> as defined in section 206A of the Gramm-Leach-Bliley Act (15
U.S.C. 78c note) of which a material term is based on the price, yield, value,
or volatility of any security or any group or index of securities, or any
interest therein; or</text>
</clause><clause id="HB4A79FFEA8BF48D086A55A00E762F72C"><enum>(vi)</enum><text>that is any
combination or permutation of, or option on, any agreement, contract, or
transaction described in any of clauses (i) through (v).</text>
</clause></subparagraph><subparagraph id="HEB3813FF7C9A46A8A7A649400E3CC3F1"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>swap</term> does not include—</text>
<clause id="H78481B14404541C295B10F3D170FFACB"><enum>(i)</enum><text>any contract of
sale of a commodity for future delivery (or option on such a contract),
leverage contract authorized under section 19, security futures product, or
agreement, contract, or transaction described in section 2(c)(2)(C)(i) or
section 2(c)(2)(D)(i);</text>
</clause><clause id="H321B35D73BF64A1E814DD027FBB3FDB7"><enum>(ii)</enum><text>any sale of a
nonfinancial commodity or security for deferred shipment or delivery, so long
as the transaction is intended to be physically settled;</text>
</clause><clause id="H7760A90294144B5DAD54B25980BF6087"><enum>(iii)</enum><text>any put, call,
straddle, option, or privilege on any security, certificate of deposit, or
group or index of securities, including any interest therein or based on the
value thereof, that is subject to—</text>
<subclause id="HA4C8640B30584B8C8118BD6E2C58F150"><enum>(I)</enum><text>the Securities Act
of 1933 (15 U.S.C. 77a et seq.); and</text>
</subclause><subclause id="HF53E29962B2C4A44939414F1A977DEBD"><enum>(II)</enum><text>the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</subclause></clause><clause id="HE10BD1B5A60645268C29D7BC10308D02"><enum>(iv)</enum><text>any put, call,
straddle, option, or privilege relating to a foreign currency entered into on a
national securities exchange registered pursuant to section 6(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78f(a));</text>
</clause><clause id="HC9E69329B3B24166B6FA3F298A15158B"><enum>(v)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of 1 or more
securities on a fixed basis that is subject to—</text>
<subclause id="HF8C10DC8D1F44EA2AA800CD3BB3B8AA0"><enum>(I)</enum><text>the Securities Act
of 1933 (15 U.S.C. 77a et seq.); and</text>
</subclause><subclause id="H1F3D050ACAD9423B99B7A14AF2DB8F5B"><enum>(II)</enum><text>the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</subclause></clause><clause id="HA87D98BEED49460A84E8E7C1949BA375"><enum>(vi)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of 1 or more
securities on a contingent basis that is subject to the Securities Act of 1933
(15 U.S.C. 77a et seq.) and the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.), unless the agreement, contract, or transaction predicates the
purchase or sale on the occurrence of a bona fide contingency that might
reasonably be expected to affect or be affected by the creditworthiness of a
party other than a party to the agreement, contract, or transaction;</text>
</clause><clause id="H19BB33FB1AA54D44B6F4F640EC0D6139"><enum>(vii)</enum><text>any note, bond,
or evidence of indebtedness that is a security, as defined in section 2(a)(1)
of the Securities Act of 1933 (15 U.S.C. 77b(a)(1));</text>
</clause><clause id="H8FAB06D1F4F44C779884E8ED8CB97255"><enum>(viii)</enum><text>any agreement,
contract, or transaction that is—</text>
<subclause id="HDC869ED72D2A4D71B3FFCA7FB03AF403"><enum>(I)</enum><text>based on a
security; and</text>
</subclause><subclause id="HEB536170CBBA4EC9BE4A40AACD8FA9FE"><enum>(II)</enum><text>entered into
directly or through an underwriter (as defined in section 2(a)(11) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(11)) by the issuer of such security
for the purposes of raising capital, unless the agreement, contract, or
transaction is entered into to manage a risk associated with capital
raising;</text>
</subclause></clause><clause id="HA29FC497735241F8962B1484D836A09C"><enum>(ix)</enum><text>any agreement,
contract, or transaction a counterparty of which is a Federal Reserve bank, the
Federal Government, or a Federal agency that is expressly backed by the full
faith and credit of the United States; and</text>
</clause><clause id="H463A2E1D92684F888D9831DBBA4DA153"><enum>(x)</enum><text>any security-based
swap, other than a security-based swap as described in subparagraph (D).</text>
</clause></subparagraph><subparagraph id="HD1DA68CB686C443DB1E547389359BF19"><enum>(C)</enum><header>Rule of
construction regarding master agreements</header>
<clause id="HE9160AC22F2A43C48AE9E6E260704775"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), the term
<term>swap</term> includes a master agreement that provides for an agreement,
contract, or transaction that is a swap under subparagraph (A), together with
each supplement to any master agreement, without regard to whether the master
agreement contains an agreement, contract, or transaction that is not a swap
pursuant to subparagraph (A).</text>
</clause><clause id="H2DD4D4434C2D44C5A5A64BFAF6377975"><enum>(ii)</enum><header>Exception</header><text>For
purposes of clause (i), the master agreement shall be considered to be a swap
only with respect to each agreement, contract, or transaction covered by the
master agreement that is a swap pursuant to subparagraph (A).</text>
</clause></subparagraph><subparagraph commented="no" id="HE18E2E7F41854526BE2E5A3A3273D0E0"><enum>(D)</enum><header>Mixed
swap</header><text>The term <term>security-based swap</term> includes any
agreement, contract, or transaction that is as described in section 3(a)(68)(A)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)(A)) and also is
based on the value of 1 or more interest or other rates, currencies,
commodities, instruments of indebtedness, indices, quantitative measures, other
financial or economic interest or property of any kind (other than a single
security or a narrow-based security index), or the occurrence, non-occurrence,
or the extent of the occurrence of an event or contingency associated with a
potential financial, economic, or commercial consequence (other than an event
described in subparagraph (A)(iii)).</text>
</subparagraph><subparagraph id="H3275B51037964C838DCEA0D11726EE65"><enum>(E)</enum><header>Treatment of
foreign exchange swaps and forwards</header>
<clause id="H07A5BBC85CCF4FF0BBC0B02E6F777683"><enum>(i)</enum><header>In
general</header><text>Foreign exchange swaps and foreign exchange forwards
shall be considered swaps under this paragraph unless the Secretary makes a
written determination under section 1b that either foreign exchange swaps or
foreign exchange forwards or both—</text>
<subclause id="H6BFF3E439FE543F4B8977112D88A1E8B"><enum>(I)</enum><text>should be not be
regulated as swaps under this Act; and</text>
</subclause><subclause id="H3E0E9EA57DF240D391F7A1EFFA896DD5"><enum>(II)</enum><text>are not
structured to evade the Dodd-Frank Wall Street Reform and Consumer Protection
Act in violation of any rule promulgated by the Commission pursuant to section
721(c) of that Act.</text>
</subclause></clause><clause id="H0E71B46C991E4C419CA3908C4FCF461F"><enum>(ii)</enum><header>Congressional
notice; effectiveness</header><text>The Secretary shall submit any written
determination under clause (i) to the appropriate committees of Congress,
including the Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committee on Agriculture of the House of Representatives. Any such
written determination by the Secretary shall not be effective until it is
submitted to the appropriate committees of Congress.</text>
</clause><clause id="HE5DF08C7AC534BC3BB073583ACE89076"><enum>(iii)</enum><header>Reporting</header><text>Notwithstanding
a written determination by the Secretary under clause (i), all foreign exchange
swaps and foreign exchange forwards shall be reported to either a swap data
repository, or, if there is no swap data repository that would accept such
swaps or forwards, to the Commission pursuant to section 4r within such time
period as the Commission may by rule or regulation prescribe.</text>
</clause><clause id="H0E48385DF48E4A86AB0E59188B4D8DF1"><enum>(iv)</enum><header>Business
standards</header><text>Notwithstanding a written determination by the
Secretary pursuant to clause (i), any party to a foreign exchange swap or
forward that is a swap dealer or major swap participant shall conform to the
business conduct standards contained in section 4s(h).</text>
</clause><clause id="HB9AA5B9329F54140A550E33417F8829D"><enum>(v)</enum><header>Secretary</header><text>For
purposes of this subparagraph, the term <term>Secretary</term> means the
Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph id="H2394C777EC76454EA89BA945D77BE81E"><enum>(F)</enum><header>Exception for
certain foreign exchange swaps and forwards</header>
<clause id="H7B9D892DEA1B437F8F06D69858ACB90E"><enum>(i)</enum><header>Registered
entities</header><text>Any foreign exchange swap and any foreign exchange
forward that is listed and traded on or subject to the rules of a designated
contract market or a swap execution facility, or that is cleared by a
derivatives clearing organization, shall not be exempt from any provision of
this Act or amendments made by the <short-title>Wall
Street Transparency and Accountability Act of 2010</short-title> prohibiting
fraud or manipulation.</text>
</clause><clause id="H6C35C794C92D40B0A97D3FBB682F6D2D"><enum>(ii)</enum><header>Retail
transactions</header><text>Nothing in subparagraph (E) shall affect, or be
construed to affect, the applicability of this Act or the jurisdiction of the
Commission with respect to agreements, contracts, or transactions in foreign
currency pursuant to section 2(c)(2).</text>
</clause></subparagraph></paragraph><paragraph id="HC6FEC515E0F74ED59472A8EA0069E1C5"><enum>(48)</enum><header>Swap data
repository</header><text display-inline="yes-display-inline">The term
<term>swap data repository</term> means any person that collects and maintains
information or records with respect to transactions or positions in, or the
terms and conditions of, swaps entered into by third parties for the purpose of
providing a centralized recordkeeping facility for swaps.</text>
</paragraph><paragraph id="H03166ACFDCE345EE9F430DB40AC64615"><enum>(49)</enum><header>Swap
dealer</header>
<subparagraph id="H0C2BB14BCE2A41898DBF598BF6071A19"><enum>(A)</enum><header>In
general</header><text>The term <term>swap dealer</term> means any person
who—</text>
<clause id="H4A5BE368ABD64D689548FC3952FFC866"><enum>(i)</enum><text>holds itself out
as a dealer in swaps;</text>
</clause><clause id="HF6595147A86A4B64A66921F5D309F06A"><enum>(ii)</enum><text>makes a market in
swaps;</text>
</clause><clause id="H9E02A52051174FCE8DB35DAF779F193B"><enum>(iii)</enum><text>regularly enters
into swaps with counterparties as an ordinary course of business for its own
account; or</text>
</clause><clause id="HDAB21FEEDB124299A5517C7651D933D3"><enum>(iv)</enum><text>engages in any
activity causing the person to be commonly known in the trade as a dealer or
market maker in swaps,</text>
</clause><continuation-text continuation-text-level="subparagraph">provided however, in no event
shall an insured depository institution be considered to be a swap dealer to
the extent it offers to enter into a swap with a customer in connection with
originating a loan with that customer.</continuation-text></subparagraph><subparagraph id="HC2E15340DB0A42E98288F7A636167B41"><enum>(B)</enum><header>Inclusion</header><text>A
person may be designated as a swap dealer for a single type or single class or
category of swap or activities and considered not to be a swap dealer for other
types, classes, or categories of swaps or activities.</text>
</subparagraph><subparagraph id="HA1FED66C9F8447128572EE7C2491CCE6"><enum>(C)</enum><header>Exception</header><text>The
term <term>swap dealer</term> does not include a person that enters into swaps
for such person’s own account, either individually or in a fiduciary capacity,
but not as a part of a regular business.</text>
</subparagraph><subparagraph id="HFA52E85647BB4E1B94D2C4E782C1A34E"><enum>(D)</enum><header>De minimis
exception</header><text>The Commission shall exempt from designation as a swap
dealer an entity that engages in a de minimis quantity of swap dealing in
connection with transactions with or on behalf of its customers. The Commission
shall promulgate regulations to establish factors with respect to the making of
this determination to exempt.</text>
</subparagraph></paragraph><paragraph id="H8EF20743C82E482AB202D6160B5F9909"><enum>(50)</enum><header>Swap execution
facility</header><text>The term <term>swap execution facility</term> means a
trading system or platform in which multiple participants have the ability to
execute or trade swaps by accepting bids and offers made by multiple
participants in the facility or system, through any means of interstate
commerce, including any trading facility, that—</text>
<subparagraph id="H53AEFCFD514E4164BAB7A8BD32AF90BD"><enum>(A)</enum><text>facilitates the
execution of swaps between persons; and</text>
</subparagraph><subparagraph id="HCFB17061D89B4ABA85589BD363F99BBD"><enum>(B)</enum><text>is not a
designated contract
market.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="HCAAE2CA0E5564441BE6C1CB2CDC00578"><enum>(22)</enum><text>in paragraph (51)
(as redesignated by paragraph (1)), in subparagraph (A)(i), by striking
<quote>partipants</quote> and inserting <quote>participants</quote>.</text>
</paragraph></subsection><subsection id="H939320CD8C3D47B5AA530E5B0697579B"><enum>(b)</enum><header>Authority To
define terms</header><text>The Commodity Futures Trading Commission may adopt a
rule to define—</text>
<paragraph id="H69355A568BF24573B4C18688EED1FADF"><enum>(1)</enum><text>the term
<term>commercial risk</term>; and</text>
</paragraph><paragraph id="HB58D763EA8EA45F8A291057623B2FBC6"><enum>(2)</enum><text>any other term
included in an amendment to the <act-name parsable-cite="COMEX">Commodity
Exchange Act</act-name> (7 U.S.C. 1 et seq.) made by this subtitle.</text>
</paragraph></subsection><subsection id="H23AA58A81DCB449AAA01A10B673BF0CE"><enum>(c)</enum><header>Modification of
definitions</header><text display-inline="yes-display-inline">To include
transactions and entities that have been structured to evade this subtitle (or
an amendment made by this subtitle), the Commodity Futures Trading Commission
shall adopt a rule to further define the terms <term>swap</term>, <term>swap
dealer</term>, <term>major swap participant</term>, and <term>eligible contract
participant</term>.</text>
</subsection><subsection commented="no" id="H87FA3DA61BB54B469949D6AC77C627D7"><enum>(d)</enum><header>Exemptions</header><text>Section
4(c)(1) of the Commodity Exchange Act (7 U.S.C. 6(c)(1)) is amended by striking
<quote>except that</quote> and all that follows through the period at the end
and inserting the following: “except that—</text>
<quoted-block display-inline="no-display-inline" id="HC9A509445F624FAD8D61B45E0C96EFF9" style="OLC">
<subparagraph commented="no" id="HC8311831DA8240AB9F4B92EB2C348A1C" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">unless the Commission is expressly
authorized by any provision described in this subparagraph to grant exemptions,
with respect to amendments made by subtitle A of the Wall Street Transparency
and Accountability Act of 2010—</text>
<clause commented="no" id="HA8D7B0813066420BBD32DC0B72A0EAA4"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to—</text>
<subclause commented="no" id="H76C1A1F90B704182B2BEB1F489CEB4FC"><enum>(I)</enum><text display-inline="yes-display-inline">paragraphs (2), (3), (4), (5), and (7),
paragraph (18)(A)(vii)(III), paragraphs (23), (24), (31), (32), (38), (39),
(41), (42), (46), (47), (48), and (49) of section 1a, and sections 2(a)(13),
2(c)(1)(D), 4a(a), 4a(b), 4d(c), 4d(d), 4r, 4s, 5b(a), 5b(b), 5(d), 5(g), 5(h),
5b(c), 5b(i), 8e, and 21; and</text>
</subclause><subclause commented="no" id="H804CA343D9F24DA5B812EE9D12F5FD35"><enum>(II)</enum><text>section 206(e) of the Gramm-Leach-Bliley
Act (Public Law 106–102; 15 U.S.C. 78c note); and</text>
</subclause></clause><clause commented="no" id="HD9D5049B564D4689982F623948033AFD"><enum>(ii)</enum><text display-inline="yes-display-inline">in sections 721(c) and 742 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act; and</text>
</clause></subparagraph><subparagraph commented="no" id="HF3B69158580F41A78311784256A03655" indent="up1"><enum>(B)</enum><text>the Commission and the Securities and
Exchange Commission may by rule, regulation, or order jointly exclude any
agreement, contract, or transaction from section 2(a)(1)(D)) if the Commissions
determine that the exemption would be consistent with the public
interest.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H564589E96BEA4C6FA76276D039B2ABEE"><enum>(e)</enum><header>Conforming
Amendments</header>
<paragraph id="H73E4C67AAB434DE89FB00A61C6FE30BB"><enum>(1)</enum><text>Section
2(c)(2)(B)(i)(II) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 2(c)(2)(B)(i)(II)) is amended—</text>
<subparagraph id="H14DCC478BF7D41B69849497B7CA4EF66"><enum>(A)</enum><text>in item
(cc)—</text>
<clause id="H3A711F8479B848EF821A5C4235C5C2C6"><enum>(i)</enum><text>in
subitem (AA), by striking <quote>section 1a(20)</quote> and inserting
<quote>section 1a</quote>; and</text>
</clause><clause id="H250A5EDB2CF24782BF34F1273C64466D"><enum>(ii)</enum><text>in
subitem (BB), by striking <quote>section 1a(20)</quote> and inserting
<quote>section 1a</quote>; and</text>
</clause></subparagraph><subparagraph id="H75B369BBC9904DDE9F7206C83B56B7C3"><enum>(B)</enum><text>in item (dd), by
striking <quote>section 1a(12)(A)(ii)</quote> and inserting <quote>section
1a(18)(A)(ii)</quote>.</text>
</subparagraph></paragraph><paragraph id="H8E3786A2985C4A5795089EF597732163"><enum>(2)</enum><text>Section 4m(3) of
the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C.
6m(3)) is amended by striking <quote>section 1a(6)</quote> and inserting
<quote>section 1a</quote>.</text>
</paragraph><paragraph id="H58013FD70A1841C4B23DB44D5C820FB9"><enum>(3)</enum><text>Section 4q(a)(1)
of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7
U.S.C. 6o–1(a)(1)) is amended by striking <quote>section 1a(4)</quote> and
inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="H7938E67CA9FE4BAF865789FEAE612672"><enum>(4)</enum><text>Section 5(e)(1) of
the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C.
7(e)(1)) is amended by striking <quote>section 1a(4)</quote> and inserting
<quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="HB0A535C14EED4B66977DD6D9C0342765"><enum>(5)</enum><text>Section
5a(b)(2)(F) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 7a(b)(2)(F)) is amended by striking <quote>section
1a(4)</quote> and inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="H90D00CB40F3D40F0A130E4482BDC5C82"><enum>(6)</enum><text>Section 5b(a) of
the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C.
7a–1(a)) is amended, in the matter preceding paragraph (1), by striking
<quote>section 1a(9)</quote> and inserting <quote>section 1a</quote>.</text>
</paragraph><paragraph id="HAA96F4FD9D0042C4808514EB023F2F62"><enum>(7)</enum><text>Section
5c(c)(2)(B) of the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> (7 U.S.C. 7a–2(c)(2)(B)) is amended by striking <quote>section
1a(4)</quote> and inserting <quote>section 1a(9)</quote>.</text>
</paragraph><paragraph id="HEA61D4AA56F847489892D610B4142A2B"><enum>(8)</enum><text>Section
6(g)(5)(B)(i) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(g)(5)(B)(i)) is amended—</text>
<subparagraph id="HF5CF253CFE2A408EA602072A83996A16"><enum>(A)</enum><text>in subclause (I),
by striking <quote>section 1a(12)(B)(ii)</quote> and inserting <quote>section
1a(18)(B)(ii)</quote>; and</text>
</subparagraph><subparagraph id="HD56A0196F8E642E49BE633C6ADFD5D47"><enum>(B)</enum><text>in subclause (II),
by striking <quote>section 1a(12)</quote> and inserting <quote>section
1a(18)</quote>.</text>
</subparagraph></paragraph><paragraph id="H034B84732BF74142BC882A414BDA0B8D"><enum>(9)</enum><text>Section 402 of the
Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27 et seq.) is
amended—</text>
<subparagraph id="HE3722FEAC44846DE82E5E4B0BD706DFD"><enum>(A)</enum><text>in subsection
(a)(7), by striking <quote>section 1a(20)</quote> and inserting <quote>section
1a</quote>;</text>
</subparagraph><subparagraph id="HFAD211B4D5B945F3B6E1BAD8F21BB5F5"><enum>(B)</enum><text>in subsection
(b)(2), by striking <quote>section 1a(12)</quote> and inserting <quote>section
1a</quote>; and</text>
</subparagraph><subparagraph id="H1104171E36244FDFB10C10411E897532"><enum>(C)</enum><text>in subsection (c),
by striking <quote>section 1a(4)</quote> and inserting <quote>section
1a</quote>.</text>
</subparagraph></paragraph><paragraph id="H26AB6E59C29B45B4BB06D8C691AA9148"><enum>(10)</enum><text>The first section
of Public Law 85–839 (7 U.S.C. 13–1) is amended in subsection (a), in the first
sentence, by inserting <quote>motion picture box office receipts (or any index,
measure, value, or data related to such receipts) or</quote> after <quote>sale
of</quote>.</text>
</paragraph></subsection><subsection id="HAAB2F382A6D54372BF9AB29C53DAE399"><enum>(f)</enum><header>Effective
date</header><text>Notwithstanding any other provision of this Act, the
amendments made by subsection (a)(4) shall take effect on June 1, 2010.</text>
</subsection></section><section id="H69085370A82B4BB5BD37BE59EDB2DEA5"><enum>722.</enum><header>Jurisdiction</header>
<subsection id="HEE315222802F432EB16A7D4D3C4B820A"><enum>(a)</enum><header>Exclusive
jurisdiction</header><text>Section 2(a)(1) of the Commodity Exchange Act (7
U.S.C. 2(a)(1)) is amended—</text>
<paragraph id="HD91B6C21834F40608BCBABB5B7DFDF53"><enum>(1)</enum><text>in subparagraph
(A), in the first sentence—</text>
<subparagraph id="H36081EF4DD384AC4B5668E981697262B"><enum>(A)</enum><text>by inserting
<quote>the <short-title>Wall Street Transparency and
Accountability Act of 2010</short-title> (including an amendment made by that
Act) and</quote> after <quote>otherwise provided in</quote>;</text>
</subparagraph><subparagraph id="H5A5454FF96E64548838CDA4E1CBEB432"><enum>(B)</enum><text>by striking
<quote>(C) and (D)</quote> and inserting <quote>(C), (D), and
(I)</quote>;</text>
</subparagraph><subparagraph id="HB078370A805849C4BD09CABEF49B7780"><enum>(C)</enum><text>by striking
<quote>(c) through (i) of this section</quote> and inserting <quote>(c) and
(f)</quote>;</text>
</subparagraph><subparagraph id="HF31EA04899904B5DBE7E973F6CCAE6A6"><enum>(D)</enum><text>by striking
<quote>contracts of sale</quote> and inserting <quote>swaps or contracts of
sale</quote>; and</text>
</subparagraph><subparagraph id="H174C7D022429454687D1F38AB5674E18"><enum>(E)</enum><text>by striking
<quote>or derivatives transaction execution facility registered pursuant to
section 5 or 5a</quote> and inserting <quote>pursuant to section 5 or a swap
execution facility pursuant to section 5h</quote>; and</text>
</subparagraph></paragraph><paragraph id="HE22C81BBBCC94396925DBEB81ADCC79D"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2ED01E1FAA9F49088A57552B179229CD" style="OLC">
<subparagraph id="HFAEE0F94AFB34BE493204D5D209DE7BB"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="H9FF0AD59C6104755984D620A00BAB140"><enum>(i)</enum><text>Nothing in this
paragraph shall limit the jurisdiction conferred on the Securities and Exchange
Commission by the Wall Street Transparency and Accountability Act of 2010 with
regard to security-based swap agreements as defined pursuant to section
3(a)(78) of the Securities Exchange Act of 1934, and security-based
swaps.</text>
</clause><clause id="HCF54ABB050794DEF8822A34D3C413913" indent="up1"><enum>(ii)</enum><text>In addition to the authority of
the Securities and Exchange Commission described in clause (i), nothing in this
subparagraph shall limit or affect any statutory authority of the Commission
with respect to an agreement, contract, or transaction described in clause
(i).</text>
</clause></subparagraph><subparagraph id="HA6F23D440A12403C92A87523D2A0052E"><enum>(H)</enum><text>Notwithstanding
any other provision of law, the Wall Street Transparency and Accountability Act
of 2010 shall not apply to, and the Commodity Futures Trading Commission shall
have no jurisdiction under such Act (or any amendments to the Commodity
Exchange Act made by such Act) with respect to, any security other than a
security-based
swap.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA79EC02BA48C4C75BA62EB969A98BA27"><enum>(b)</enum><header>Regulation of
swaps under Federal and State law</header><text>Section 12 of the Commodity
Exchange Act (7 U.S.C. 16) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFFE34DAE7A434EBF977F506627CA608B" style="OLC">
<subsection id="HFE3D0962366B4D64A04B02824BC1F11D"><enum>(h)</enum><header>Regulation of
swaps as insurance under State law</header><text>A swap—</text>
<paragraph id="HFC28F78DE9A54BEC8A5AA823559F655E"><enum>(1)</enum><text>shall not be
considered to be insurance; and</text>
</paragraph><paragraph id="H141B41BBDBCA41D88AF616233019B757"><enum>(2)</enum><text>may not be
regulated as an insurance contract under the law of any
State.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDF63F8D8692D4A7D976AA244313F7682"><enum>(c)</enum><header>Agreements,
contracts, and transactions traded on an organized
exchange</header><text>Section 2(c)(2)(A) of the Commodity Exchange Act (7
U.S.C. 2(c)(2)(A)) is amended—</text>
<paragraph id="H69D36D15D31243CDB2D0AE09547AD060"><enum>(1)</enum><text>in clause (i), by
striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H4A3547A56FB84F01964AB79AF91E7660"><enum>(2)</enum><text>by redesignating
clause (ii) as clause (iii); and</text>
</paragraph><paragraph id="H9E76812372314FAC8F1F0AE4167F0D9D"><enum>(3)</enum><text>by inserting after
clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="H88C2AECE2C784D01AF9E6C02004E5E02" style="OLC">
<clause id="HAF871E6808A84F2B9014B3B4A5E2546C"><enum>(ii)</enum><text>a
swap; or</text>
</clause><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H86951D3EFDC44F3594F56D25C0C91A7A"><enum>(d)</enum><header>Applicability</header><text>Section
2 of the Commodity Exchange Act (7 U.S.C. 2) (as amended by section 723(a)(3))
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H682942C922BC496A9538F7DB6BF0F4E4" style="OLC">
<subsection id="H2BEB411645804E83929309C334FBBB98"><enum>(i)</enum><header>Applicability</header><text>The
provisions of this Act relating to swaps that were enacted by the Wall Street
Transparency and Accountability Act of 2010 (including any rule prescribed or
regulation promulgated under that Act), shall not apply to activities outside
the United States unless those activities—</text>
<paragraph id="H7311C3C51FB54C0B8A48CCC517AF131C"><enum>(1)</enum><text>have a direct and
significant connection with activities in, or effect on, commerce of the United
States; or</text>
</paragraph><paragraph id="HCFC543E4851B45E39A9262267CC7F073"><enum>(2)</enum><text>contravene such
rules or regulations as the Commission may prescribe or promulgate as are
necessary or appropriate to prevent the evasion of any provision of this Act
that was enacted by the Wall Street Transparency and Accountability Act of
2010.</text>
</paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block>
</subsection><subsection id="H8B71752F38B04AACB7FE8C83234521EB"><enum>(e)</enum><header>Federal Energy
Regulatory Commission</header><text>Section 2(a)(1) of the Commodity Exchange
Act (7 U.S.C. 2(a)(1)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB3EECB7F509040B5859B98CEE8FE0878" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H873D8712A1AD42779B701BE3C287AF1C"><enum>(I)</enum><clause commented="no" display-inline="yes-display-inline" id="H82CEC024B131434C936F5C70656ACA5E"><enum>(i)</enum><text display-inline="yes-display-inline">Nothing in this Act shall limit or affect
any statutory authority of the Federal Energy Regulatory Commission or a State
regulatory authority (as defined in section 3(21) of the Federal Power Act (16
U.S.C. 796(21)) with respect to an agreement, contract, or transaction that is
entered into pursuant to a tariff or rate schedule approved by the Federal
Energy Regulatory Commission or a State regulatory authority and is—</text>
<subclause commented="no" display-inline="no-display-inline" id="H57536843E91541398D3915BA4866416E" indent="up1"><enum>(I)</enum><text>not executed, traded, or cleared on a
registered entity or trading facility; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB6D48347717840748944F991A69D8876" indent="up1"><enum>(II)</enum><text>executed, traded, or cleared on a
registered entity or trading facility owned or operated by a regional
transmission organization or independent system operator.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H42F4686451B748CAAD7BC738FD15D391" indent="up1"><enum>(ii)</enum><text>In addition to the authority of
the Federal Energy Regulatory Commission or a State regulatory authority
described in clause (i), nothing in this subparagraph shall limit or
affect—</text>
<subclause commented="no" display-inline="no-display-inline" id="H787F0AB84C8E4CB2B2097122CA14D916"><enum>(I)</enum><text>any statutory authority of the Commission
with respect to an agreement, contract, or transaction described in clause (i);
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF1F4DAE2868046B496FC7438F6A5B74B"><enum>(II)</enum><text>the jurisdiction of the Commission under
subparagraph (A) with respect to an agreement, contract, or transaction that is
executed, traded, or cleared on a registered entity or trading facility that is
not owned or operated by a regional transmission organization or independent
system operator (as defined by sections 3(27) and (28) of the Federal Power Act
(16 U.S.C. 796(27),
796(28)).</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBC88C2C549F84658B97A13E324FF71F1"><enum>(f)</enum><header>Public interest
waiver</header><text>Section 4(c) of the Commodity Exchange Act (7 U.S.C. 6(c))
(as amended by section 721(d)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H2722E20935694A1DA8DF1179FA64AFED" style="OLC">
<paragraph id="H91BA65CB2AEB43D59313AB6FF575E3AC"><enum>(6)</enum><text>If the Commission
determines that the exemption would be consistent with the public interest and
the purposes of this Act, the Commission shall, in accordance with paragraphs
(1) and (2), exempt from the requirements of this Act an agreement, contract,
or transaction that is entered into—</text>
<subparagraph id="H9579DAC758144E03A9A90E7D7B567671"><enum>(A)</enum><text>pursuant to a
tariff or rate schedule approved or permitted to take effect by the Federal
Energy Regulatory Commission;</text>
</subparagraph><subparagraph id="H8FABA4388AE44A7FAD92DEF02B7530F9"><enum>(B)</enum><text>pursuant to a
tariff or rate schedule establishing rates or charges for, or protocols
governing, the sale of electric energy approved or permitted to take effect by
the regulatory authority of the State or municipality having jurisdiction to
regulate rates and charges for the sale of electric energy within the State or
municipality; or</text>
</subparagraph><subparagraph id="H8B9F15181D304175B88A7E72965A8ADA"><enum>(C)</enum><text>between entities
described in section 201(f) of the Federal Power Act (16 U.S.C.
824(f)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H39D8D68D38884611ABA5BC10762703A2"><enum>(g)</enum><header>Authority of
FERC</header><text>Nothing in the Wall Street Transparency and Accountability
Act of 2010 or the amendments to the Commodity Exchange Act made by such Act
shall limit or affect any statutory enforcement authority of the Federal Energy
Regulatory Commission pursuant to section 222 of the Federal Power Act and
section 4A of the Natural Gas Act that existed prior to the date of enactment
of the Wall Street Transparency and Accountability Act of 2010.</text>
</subsection><subsection id="HD82BA34D200D4DFEAFE272843D7FF33C"><enum>(h)</enum><header>Determination</header><text><act-name parsable-cite="COMEX">The Commodity Exchange Act</act-name> is amended by
inserting after section 1a (7 U.S.C. 1a) the following:</text>
<quoted-block display-inline="no-display-inline" id="HDC47BA76127540638C0A08F6275ABAC9" style="OLC">
<section id="H0CD7F1788B7045FDAAE574A8865278DA"><enum>1b.</enum><header>Requirements of
Secretary of the Treasury regarding exemption of foreign exchange swaps and
foreign exchange forwards from definition of the term
<quote>swap</quote></header>
<subsection id="HB3F9FD2264FB436A91184DF00E91864E"><enum>(a)</enum><header>Required
considerations</header><text>In determining whether to exempt foreign exchange
swaps and foreign exchange forwards from the definition of the term
<quote>swap</quote>, the Secretary of the Treasury (referred to in this section
as the <quote>Secretary</quote>) shall consider—</text>
<paragraph id="H582E738198D044AF8ABC0D04EC5D885D"><enum>(1)</enum><text>whether the
required trading and clearing of foreign exchange swaps and foreign exchange
forwards would create systemic risk, lower transparency, or threaten the
financial stability of the United States;</text>
</paragraph><paragraph id="H57B32C4379F34E46BBA8E3292FC3397E"><enum>(2)</enum><text>whether foreign
exchange swaps and foreign exchange forwards are already subject to a
regulatory scheme that is materially comparable to that established by this Act
for other classes of swaps;</text>
</paragraph><paragraph id="HDA23AACA6812406AAD2B30FFD1A044B3"><enum>(3)</enum><text>the extent to
which bank regulators of participants in the foreign exchange market provide
adequate supervision, including capital and margin requirements;</text>
</paragraph><paragraph id="H32CCE06FDCE04290B00FD93762FEBCF3"><enum>(4)</enum><text>the extent of
adequate payment and settlement systems; and</text>
</paragraph><paragraph id="H81F6A06032BA4164A1E6C7D88905C736"><enum>(5)</enum><text>the use of a
potential exemption of foreign exchange swaps and foreign exchange forwards to
evade otherwise applicable regulatory requirements.</text>
</paragraph></subsection><subsection id="HA4B5DA3B2EC84C04B4D5E16E6F25D781"><enum>(b)</enum><header>Determination</header><text>If
the Secretary makes a determination to exempt foreign exchange swaps and
foreign exchange forwards from the definition of the term <quote>swap</quote>,
the Secretary shall submit to the appropriate committees of Congress a
determination that contains—</text>
<paragraph id="H0550F897C8B7443D87A6D06E97E6BCBB"><enum>(1)</enum><text>an explanation
regarding why foreign exchange swaps and foreign exchange forwards are
qualitatively different from other classes of swaps in a way that would make
the foreign exchange swaps and foreign exchange forwards ill-suited for
regulation as swaps; and</text>
</paragraph><paragraph id="HA784C1FDB32544709598A689A072C162"><enum>(2)</enum><text>an identification
of the objective differences of foreign exchange swaps and foreign exchange
forwards with respect to standard swaps that warrant an exempted status.</text>
</paragraph></subsection><subsection id="HE4C88CD447C74D3B906A0BAD3F239D0E"><enum>(c)</enum><header>Effect of
determination</header><text>A determination by the Secretary under subsection
(b) shall not exempt any foreign exchange swaps and foreign exchange forwards
traded on a designated contract market or swap execution facility from any
applicable antifraud and antimanipulation provision under this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H7D18FA06B603442E987B67C899D11D0D"><enum>723.</enum><header>Clearing</header>
<subsection id="H5DD1E800F1794BEE87EE1CD990E39626"><enum>(a)</enum><header>Clearing
requirement</header>
<paragraph id="H498CFC0C70324FAC9DFC664FC5D3D3F9"><enum>(1)</enum><header>In
general</header><text>Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended—</text>
<subparagraph id="HD8C1D9D7F1794434A934A5E8A80D8984"><enum>(A)</enum><text>by striking
subsections (d), (e), (g), and (h); and</text>
</subparagraph><subparagraph id="H592E14CB3EA44684894029F387017271"><enum>(B)</enum><text>by redesignating
subsection (i) as subsection (g).</text>
</subparagraph></paragraph><paragraph id="HF9F87CEC11BC476797D580660C7C7525"><enum>(2)</enum><header>Swaps;
limitation on participation</header><text>Section 2 of the Commodity Exchange
Act (7 U.S.C. 2) (as amended by paragraph (1)) is amended by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="H4D99E97AC1FB4DAFBF211D50356F9961" style="OLC">
<subsection id="H3E931BFED31D466FAA7636FA99622683"><enum>(d)</enum><header>Swaps</header><text>Nothing
in this Act (other than subparagraphs (A), (B), (C), (D), (G), and (H) of
subsection (a)(1), subsections (f) and (g), sections 1a, 2(a)(13),
2(c)(2)(A)(ii), 2(e), 2(h), 4(c), 4a, 4b, and 4b–1, subsections (a), (b), and
(g) of section 4c, sections 4d, 4e, 4f, 4g, 4h, 4i, 4j, 4k, 4l, 4m, 4n, 4o, 4p,
4r, 4s, 4t, 5, 5b, 5c, 5e, and 5h, subsections (c) and (d) of section 6,
sections 6c, 6d, 8, 8a, and 9, subsections (e)(2), (f), and (h) of section 12,
subsections (a) and (b) of section 13, sections 17, 20, 21, and 22(a)(4), and
any other provision of this Act that is applicable to registered entities or
Commission registrants) governs or applies to a swap.</text>
</subsection><subsection id="H59536C21163A4D37ABB8CA1278D72A5F"><enum>(e)</enum><header>Limitation on
participation</header><text>It shall be unlawful for any person, other than an
eligible contract participant, to enter into a swap unless the swap is entered
into on, or subject to the rules of, a board of trade designated as a contract
market under section
5.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAAFBA00C22C34B7C9A57383EE586FF72"><enum>(3)</enum><header>Mandatory
clearing of swaps</header><text>Section 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by inserting after subsection (g) (as redesignated by
paragraph (1)(B)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H910379AE77C94414A1834B00A9F07901" style="OLC">
<subsection id="H0FB7CE892EFA49DA8B2ABA0E01054F79"><enum>(h)</enum><header>Clearing
requirement</header>
<paragraph id="H2FB199FA2AF24F2E836484FE1481A023"><enum>(1)</enum><header>In
general</header>
<subparagraph id="HE8199DA313FD4080932C49C93414ADF3"><enum>(A)</enum><header>Standard for
clearing</header><text>It shall be unlawful for any person to engage in a swap
unless that person submits such swap for clearing to a derivatives clearing
organization that is registered under this Act or a derivatives clearing
organization that is exempt from registration under this Act if the swap is
required to be cleared.</text>
</subparagraph><subparagraph id="H9D8F0C8EB18440C9B4091E5399C2FBBC"><enum>(B)</enum><header>Open
access</header><text>The rules of a derivatives clearing organization described
in subparagraph (A) shall—</text>
<clause id="HFFB7E4805A2F4FFEB00995714BDF6884"><enum>(i)</enum><text>prescribe that all
swaps (but not contracts of sale of a commodity for future delivery or options
on such contracts) submitted to the derivatives clearing organization with the
same terms and conditions are economically equivalent within the derivatives
clearing organization and may be offset with each other within the derivatives
clearing organization; and</text>
</clause><clause id="H66644C4412E14A39AF0B4A136C9D7E4A"><enum>(ii)</enum><text>provide for
non-discriminatory clearing of a swap (but not a contract of sale of a
commodity for future delivery or option on such contract) executed bilaterally
or on or through the rules of an unaffiliated designated contract market or
swap execution facility.</text>
</clause></subparagraph></paragraph><paragraph id="H6AB86BA89A9D4A008BB4E87BA35ED16E"><enum>(2)</enum><header>Commission
review</header>
<subparagraph id="H96CFBB0035944AEB983A2BCF25ACEEF9"><enum>(A)</enum><header>Commission-initiated
review</header>
<clause id="HD80DFA7C90E54518973097CDFE7BC94C"><enum>(i)</enum><text>The Commission on
an ongoing basis shall review each swap, or any group, category, type, or class
of swaps to make a determination as to whether the swap or group, category,
type, or class of swaps should be required to be cleared.</text>
</clause><clause id="HF80212D1CCA9488A91C023F1B8BC5580"><enum>(ii)</enum><text>The Commission
shall provide at least a 30-day public comment period regarding any
determination made under clause (i).</text>
</clause></subparagraph><subparagraph id="HA2DD48E3BC064D3992181632F31A15B0"><enum>(B)</enum><header>Swap
submissions</header>
<clause id="HA537CD8FF72042FCAADFB7539B6C13A9"><enum>(i)</enum><text>A
derivatives clearing organization shall submit to the Commission each swap, or
any group, category, type, or class of swaps that it plans to accept for
clearing, and provide notice to its members (in a manner to be determined by
the Commission) of the submission.</text>
</clause><clause id="HB893D57091054B4D9F5EC97A98D2C472"><enum>(ii)</enum><text>Any swap or
group, category, type, or class of swaps listed for clearing by a derivative
clearing organization as of the date of enactment of this subsection shall be
considered submitted to the Commission.</text>
</clause><clause id="H988AA804584544958CE142E1E8E0B051"><enum>(iii)</enum><text>The Commission
shall—</text>
<subclause id="H509EEE3C9CEF48A2A45256483BBA1BCF"><enum>(I)</enum><text>make available to
the public submissions received under clauses (i) and (ii);</text>
</subclause><subclause id="H4447AE7C3FFB4463A997CFAD35F38499"><enum>(II)</enum><text>review each
submission made under clauses (i) and (ii), and determine whether the swap, or
group, category, type, or class of swaps described in the submission is
required to be cleared; and</text>
</subclause><subclause id="H0EDC71C6C6C94080A6D44B68908BE02A"><enum>(III)</enum><text>provide at least
a 30-day public comment period regarding its determination as to whether the
clearing requirement under paragraph (1)(A) shall apply to the
submission.</text>
</subclause></clause></subparagraph><subparagraph id="H1975D845E9D549C1AD0E3E6B0AF3EDA0"><enum>(C)</enum><header>Deadline</header><text>The
Commission shall make its determination under subparagraph (B)(iii) not later
than 90 days after receiving a submission made under subparagraphs (B)(i) and
(B)(ii), unless the submitting derivatives clearing organization agrees to an
extension for the time limitation established under this subparagraph.</text>
</subparagraph><subparagraph id="H2D54228719284BCD8250C2DC7F0FD853"><enum>(D)</enum><header>Determination</header>
<clause id="HAAF42F3A162E437A8FE172DB40283D2B"><enum>(i)</enum><text>In
reviewing a submission made under subparagraph (B), the Commission shall review
whether the submission is consistent with section 5b(c)(2).</text>
</clause><clause id="H7060BCD566124FA1BC26220F9A19EDC4"><enum>(ii)</enum><text>In reviewing a
swap, group of swaps, or class of swaps pursuant to subparagraph (A) or a
submission made under subparagraph (B), the Commission shall take into account
the following factors:</text>
<subclause id="H10E502B21064431EB0FCA10DAEA0FCD7"><enum>(I)</enum><text>The existence of
significant outstanding notional exposures, trading liquidity, and adequate
pricing data.</text>
</subclause><subclause id="H870DADAECB8646E0A36EA0E084C1FD67"><enum>(II)</enum><text>The availability
of rule framework, capacity, operational expertise and resources, and credit
support infrastructure to clear the contract on terms that are consistent with
the material terms and trading conventions on which the contract is then
traded.</text>
</subclause><subclause id="H14BA528B37A446A08F0220C0DB16F058"><enum>(III)</enum><text>The effect on
the mitigation of systemic risk, taking into account the size of the market for
such contract and the resources of the derivatives clearing organization
available to clear the contract.</text>
</subclause><subclause id="H5F6AC716187545AEA93D73B88FFC1833"><enum>(IV)</enum><text>The effect on
competition, including appropriate fees and charges applied to clearing.</text>
</subclause><subclause id="HA45CBD94A6AA49AE8740061A67CB4C44"><enum>(V)</enum><text>The existence of
reasonable legal certainty in the event of the insolvency of the relevant
derivatives clearing organization or 1 or more of its clearing members with
regard to the treatment of customer and swap counterparty positions, funds, and
property.</text>
</subclause></clause><clause id="HA432B97BD08749F886A5ECA4FD2D8452"><enum>(iii)</enum><text>In making a
determination under subparagraph (A) or (B)(iii) that the clearing requirement
shall apply, the Commission may require such terms and conditions to the
requirement as the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="H6DE61BC1E0854CF7AD947AC0C12046F3"><enum>(E)</enum><header>Rules</header><text>Not
later than 1 year after the date of the enactment of this subsection, the
Commission shall adopt rules for a derivatives clearing organization’s
submission for review, pursuant to this paragraph, of a swap, or a group,
category, type, or class of swaps, that it seeks to accept for clearing.
Nothing in this subparagraph limits the Commission from making a determination
under subparagraph (B)(iii) for swaps described in subparagraph (B)(ii).</text>
</subparagraph></paragraph><paragraph id="H5118A51B0C88481CB9E5ACD4C83424A3"><enum>(3)</enum><header>Stay of clearing
requirement</header>
<subparagraph id="H93A4CD90C1AC4BAFB4446701F206E175"><enum>(A)</enum><header>In
general</header><text>After making a determination pursuant to paragraph
(2)(B), the Commission, on application of a counterparty to a swap or on its
own initiative, may stay the clearing requirement of paragraph (1) until the
Commission completes a review of the terms of the swap (or the group, category,
type, or class of swaps) and the clearing arrangement.</text>
</subparagraph><subparagraph id="HE5E8BAB8C0EF40129FDB04515EF9692E"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall complete a review undertaken pursuant to subparagraph (A) not
later than 90 days after issuance of the stay, unless the derivatives clearing
organization that clears the swap, or group, category, type, or class of swaps
agrees to an extension of the time limitation established under this
subparagraph.</text>
</subparagraph><subparagraph id="HD34635F1FC4948AD96B86F983F079424"><enum>(C)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to subparagraph (A), the
Commission may—</text>
<clause id="HC269EEF3493340518CF45280398A17E3"><enum>(i)</enum><text>determine,
unconditionally or subject to such terms and conditions as the Commission
determines to be appropriate, that the swap, or group, category, type, or class
of swaps must be cleared pursuant to this subsection if it finds that such
clearing is consistent with paragraph (2)(D); or</text>
</clause><clause id="HF0FD08C76CDD4352AA52035522A0F274"><enum>(ii)</enum><text>determine that
the clearing requirement of paragraph (1) shall not apply to the swap, or
group, category, type, or class of swaps.</text>
</clause></subparagraph><subparagraph id="H4D676A856EB749F5BE968736113C4FEA"><enum>(D)</enum><header>Rules</header><text>Not
later than 1 year after the date of the enactment of the Wall Street
Transparency and Accountability Act of 2010, the Commission shall adopt rules
for reviewing, pursuant to this paragraph, a derivatives clearing
organization’s clearing of a swap, or a group, category, type, or class of
swaps, that it has accepted for clearing.</text>
</subparagraph></paragraph><paragraph id="H23C249FCA9834F5CA882C46C2899C61B"><enum>(4)</enum><header>Prevention of
evasion</header>
<subparagraph id="H1F7A591251754D10A330A15874A9EBA6"><enum>(A)</enum><header>In
general</header><text>The Commission shall prescribe rules under this
subsection (and issue interpretations of rules prescribed under this
subsection) as determined by the Commission to be necessary to prevent evasions
of the mandatory clearing requirements under this Act.</text>
</subparagraph><subparagraph id="H6DA56D6F41204348908F43F8246A5779"><enum>(B)</enum><header>Duty of
commission to investigate and take certain actions</header><text>To the extent
the Commission finds that a particular swap, group, category, type, or class of
swaps would otherwise be subject to mandatory clearing but no derivatives
clearing organization has listed the swap, group, category, type, or class of
swaps for clearing, the Commission shall—</text>
<clause id="HDB6E53BA953D40619A17ABC3D8019E60"><enum>(i)</enum><text>investigate the
relevant facts and circumstances;</text>
</clause><clause id="HD201429D30EC4B86A83414D617F57982"><enum>(ii)</enum><text>within 30 days
issue a public report containing the results of the investigation; and</text>
</clause><clause id="HF9B7C7286D6D473697434C00106F8E05"><enum>(iii)</enum><text>take such
actions as the Commission determines to be necessary and in the public
interest, which may include requiring the retaining of adequate margin or
capital by parties to the swap, group, category, type, or class of
swaps.</text>
</clause></subparagraph><subparagraph id="HA1A47E5AABE24F6E86DE9996FF63BF18"><enum>(C)</enum><header>Effect on
authority</header><text>Nothing in this paragraph—</text>
<clause id="H320444AD1BFE4C598636ED48CE8E1924"><enum>(i)</enum><text>authorizes the
Commission to adopt rules requiring a derivatives clearing organization to list
for clearing a swap, group, category, type, or class of swaps if the clearing
of the swap, group, category, type, or class of swaps would threaten the
financial integrity of the derivatives clearing organization; and</text>
</clause><clause id="HC3DE948340CB45CBB8E1D278296F67B7"><enum>(ii)</enum><text>affects the
authority of the Commission to enforce the open access provisions of paragraph
(1)(B) with respect to a swap, group, category, type, or class of swaps that is
listed for clearing by a derivatives clearing organization.</text>
</clause></subparagraph></paragraph><paragraph id="H9E3B82110EFA4346BEF4D98171EACE9B"><enum>(5)</enum><header>Reporting
transition rules</header><text>Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<subparagraph id="HA996B1D93A7B45BEA68E70972CCE1E63"><enum>(A)</enum><text>Swaps entered into
before the date of the enactment of this subsection shall be reported to a
registered swap data repository or the Commission no later than 180 days after
the effective date of this subsection.</text>
</subparagraph><subparagraph id="H389A35763F9E4E8F8C9FE38D06184B80"><enum>(B)</enum><text>Swaps entered into
on or after such date of enactment shall be reported to a registered swap data
repository or the Commission no later than the later of—</text>
<clause id="H643C2731CAC44E1BB5EDB05A9FD180BE"><enum>(i)</enum><text>90
days after such effective date; or</text>
</clause><clause id="HB7647D9FBD4B414E820272936A63F0F0"><enum>(ii)</enum><text>such other time
after entering into the swap as the Commission may prescribe by rule or
regulation.</text>
</clause></subparagraph></paragraph><paragraph id="HC0C587D5E9EF481BA296179B7C078BD0"><enum>(6)</enum><header>Clearing
transition rules</header>
<subparagraph id="HC691AE10B9F749E58ACD3E9DB8520071"><enum>(A)</enum><text>Swaps entered into
before the date of the enactment of this subsection are exempt from the
clearing requirements of this subsection if reported pursuant to paragraph
(5)(A).</text>
</subparagraph><subparagraph id="H7B419B09CAED4BB4886D7742C147069C"><enum>(B)</enum><text>Swaps entered into
before application of the clearing requirement pursuant to this subsection are
exempt from the clearing requirements of this subsection if reported pursuant
to paragraph (5)(B).</text>
</subparagraph></paragraph><paragraph id="H473F5E357EA146DEB3DFF0AC81DAE2FF"><enum>(7)</enum><header>Exceptions</header>
<subparagraph id="HD122D5794AC94AABBADC57D642BF2657"><enum>(A)</enum><header>In
general</header><text>The requirements of paragraph (1)(A) shall not apply to a
swap if 1 of the counterparties to the swap—</text>
<clause id="HEE1AFD5D959F45B5A4D3D05F1BE7857A"><enum>(i)</enum><text>is
not a financial entity;</text>
</clause><clause id="HECA4CDB49AFD4143855FB869B202DED6"><enum>(ii)</enum><text>is using swaps to
hedge or mitigate commercial risk; and</text>
</clause><clause id="H86BF3201D7514BB5B29628F4F0C99A9F"><enum>(iii)</enum><text>notifies the
Commission, in a manner set forth by the Commission, how it generally meets its
financial obligations associated with entering into non-cleared swaps.</text>
</clause></subparagraph><subparagraph id="H6E9157D9AEFC4FF6BE105AEED84D244C"><enum>(B)</enum><header>Option to
clear</header><text>The application of the clearing exception in subparagraph
(A) is solely at the discretion of the counterparty to the swap that meets the
conditions of clauses (i) through (iii) of subparagraph (A).</text>
</subparagraph><subparagraph id="HB095A4451F2D4771B48B9DBECDB214AC"><enum>(C)</enum><header>Financial entity
definition</header>
<clause id="H5855D9F57B414F82B2EA4A3057EFC75F"><enum>(i)</enum><header>In
general</header><text>For the purposes of this paragraph, the term
<quote>financial entity</quote> means—</text>
<subclause id="HAE1DD98E267B4B0A93D136AAA70D1634"><enum>(I)</enum><text>a swap
dealer;</text>
</subclause><subclause id="H9D45EF17E27B4294951EEAC667F12B36"><enum>(II)</enum><text>a security-based
swap dealer;</text>
</subclause><subclause id="H059B54DAB9624282A09F874B0E196492"><enum>(III)</enum><text>a major swap
participant;</text>
</subclause><subclause id="H76AB7B09A94045DCA4484FEDB557AAAA"><enum>(IV)</enum><text>a major
security-based swap participant;</text>
</subclause><subclause id="HA6D2C6D04F5A49839AD4E75F4FD06EEC"><enum>(V)</enum><text>a commodity
pool;</text>
</subclause><subclause id="H94BFEF3FA43445E2AF4DE308CB9676CA"><enum>(VI)</enum><text>a private fund as
defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C.
80-b-2(a));</text>
</subclause><subclause id="HB4B8199FAD034377A7EB2A0B6CE0F679"><enum>(VII)</enum><text>an employee
benefit plan as defined in paragraphs (3) and (32) of section 3 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002);</text>
</subclause><subclause id="H9CA242FC210F479A87D75CCADE67AC02"><enum>(VIII)</enum><text>a person
predominantly engaged in activities that are in the business of banking, or in
activities that are financial in nature, as defined in section 4(k) of the Bank
Holding Company Act of 1956.</text>
</subclause></clause><clause id="H30799E4C580243C1AE3762224281B517"><enum>(ii)</enum><header>Exclusion</header><text>The
Commission shall consider whether to exempt small banks, savings associations,
farm credit system institutions, and credit unions, including—</text>
<subclause id="HF9836DEBD7F64B10A7A7B2DC807445F7"><enum>(I)</enum><text>depository
institutions with total assets of $10,000,000,000 or less;</text>
</subclause><subclause id="HF5C639B4DBB94CB984A9CB68873E3DF5"><enum>(II)</enum><text>farm credit
system institutions with total assets of $10,000,000,000 or less; or</text>
</subclause><subclause id="H44B9E956F79043338DFD6BD15C352129"><enum>(III)</enum><text>credit unions
with total assets of $10,000,000,000 or less.</text>
</subclause></clause><clause id="H8BED414B2F3443C9BF4DBF499307E61D"><enum>(iii)</enum><header>Limitation</header><text>Such
definition shall not include an entity whose primary business is providing
financing, and uses derivatives for the purpose of hedging underlying
commercial risks related to interest rate and foreign currency exposures, 90
percent or more of which arise from financing that facilitates the purchase or
lease of products, 90 percent or more of which are manufactured by the parent
company or another subsidiary of the parent company.</text>
</clause></subparagraph><subparagraph id="HD1250A33CA764333829D11E4A231E85E"><enum>(D)</enum><header>Treatment of
affiliates</header>
<clause id="HD33EDF4C47054D62A3947FC06A52971B"><enum>(i)</enum><header>In
general</header><text>An affiliate of a person that qualifies for an exception
under subparagraph (A) (including affiliate entities predominantly engaged in
providing financing for the purchase of the merchandise or manufactured goods
of the person) may qualify for the exception only if the affiliate, acting on
behalf of the person and as an agent, uses the swap to hedge or mitigate the
commercial risk of the person or other affiliate of the person that is not a
financial entity.</text>
</clause><clause id="HFDE3A0229DB948ACBC105C639C94802F"><enum>(ii)</enum><header>Prohibition
relating to certain affiliates</header><text>The exception in clause (i) shall
not apply if the affiliate is—</text>
<subclause id="H45637A81E52A4CC8A87D2FC394DAD6B5"><enum>(I)</enum><text>a swap
dealer;</text>
</subclause><subclause id="HFBB36D446AF242289B04EFD615D844F6"><enum>(II)</enum><text>a security-based
swap dealer;</text>
</subclause><subclause id="H0FA5155C3A894F7E97D3FF1B2E150B74"><enum>(III)</enum><text>a major swap
participant;</text>
</subclause><subclause id="H1C464B9AC3D24356A0E9B6327FA9BB97"><enum>(IV)</enum><text>a major
security-based swap participant;</text>
</subclause><subclause id="H1702A451B4464E10A985D5878A51415E"><enum>(V)</enum><text>an issuer that
would be an investment company, as defined in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a–3), but for paragraph (1) or (7) of
subsection (c) of that Act (15 U.S.C. 80a–3(c));</text>
</subclause><subclause id="HDD0F67BAAA6E4FAB806C26D31091308C"><enum>(VI)</enum><text>a commodity pool;
or</text>
</subclause><subclause id="HC65599B6D8A6482CAA8BD3B0089F0086"><enum>(VII)</enum><text>a bank holding
company with over $50,000,000,000 in consolidated assets.</text>
</subclause></clause><clause id="HAC216D28CD2D44F1BA30A75BA3364A63"><enum>(iii)</enum><header>Transition
rule for affiliates</header><text>An affiliate, subsidiary, or a wholly owned
entity of a person that qualifies for an exception under subparagraph (A) and
is predominantly engaged in providing financing for the purchase or lease of
merchandise or manufactured goods of the person shall be exempt from the margin
requirement described in section 4s(e) and the clearing requirement described
in paragraph (1) with regard to swaps entered into to mitigate the risk of the
financing activities for not less than a 2-year period beginning on the date of
enactment of this clause.</text>
</clause></subparagraph><subparagraph id="H3CC1788ED40F431C8E685EEAA091F151"><enum>(E)</enum><header>Election of
counterparty</header>
<clause id="HA6137376255341F99C7E929062926F15"><enum>(i)</enum><header>Swaps required
to be cleared</header><text>With respect to any swap that is subject to the
mandatory clearing requirement under this subsection and entered into by a swap
dealer or a major swap participant with a counterparty that is not a swap
dealer, major swap participant, security-based swap dealer, or major
security-based swap participant, the counterparty shall have the sole right to
select the derivatives clearing organization at which the swap will be
cleared.</text>
</clause><clause id="H3BA96BFEE1594300A0C2527624747FCC"><enum>(ii)</enum><header>Swaps not
required to be cleared</header><text>With respect to any swap that is not
subject to the mandatory clearing requirement under this subsection and entered
into by a swap dealer or a major swap participant with a counterparty that is
not a swap dealer, major swap participant, security-based swap dealer, or major
security-based swap participant, the counterparty—</text>
<subclause id="HA5547A525ECD42188C634387F8523562"><enum>(I)</enum><text>may elect to
require clearing of the swap; and</text>
</subclause><subclause id="H7BCED6F56F4B4D6D9D790CFF2A5E4233"><enum>(II)</enum><text>shall have the
sole right to select the derivatives clearing organization at which the swap
will be cleared.</text>
</subclause></clause></subparagraph><subparagraph id="H43F9189BDB3F4848A93D8CED2D4D1BF0"><enum>(F)</enum><header>Abuse of
exception</header><text>The Commission may prescribe such rules or issue
interpretations of the rules as the Commission determines to be necessary to
prevent abuse of the exceptions described in this paragraph. The Commission may
also request information from those persons claiming the clearing exception as
necessary to prevent abuse of the exceptions described in this
paragraph.</text>
</subparagraph></paragraph><paragraph id="H5F789D6FF6E6483290DFB3DAE05FD3FB"><enum>(8)</enum><header>Trade
execution</header>
<subparagraph id="HB52320DFCAC346B0A311D9663CC7CCC1"><enum>(A)</enum><header>In
general</header><text>With respect to transactions involving swaps subject to
the clearing requirement of paragraph (1), counterparties shall—</text>
<clause id="H34DC12946F3741098E9D168D0D27023E"><enum>(i)</enum><text>execute the
transaction on a board of trade designated as a contract market under section
5; or</text>
</clause><clause id="H2E7EEC1A16EF433EB93F414459B8D43D"><enum>(ii)</enum><text>execute the
transaction on a swap execution facility registered under 5h or a swap
execution facility that is exempt from registration under section 5h(f) of this
Act.</text>
</clause></subparagraph><subparagraph id="H19A221438AB74DDCBAB190B38E423FC8"><enum>(B)</enum><header>Exception</header><text>The
requirements of clauses (i) and (ii) of subparagraph (A) shall not apply if no
board of trade or swap execution facility makes the swap available to trade or
for swap transactions subject to the clearing exception under paragraph
(7).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2A0AFB873E8C4706B2ADCC990BB4C601"><enum>(b)</enum><header>Commodity
exchange act</header><text>Section 2 of the Commodity Exchange Act (7 U.S.C. 2)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF653F87993CB494B8D993606FD0C4CEE" style="OLC">
<subsection id="H3A07CAD81D1E47FEB1602B62CDD381DE"><enum>(j)</enum><header> Committee
Approval by Board</header><text>Exemptions from the requirements of subsection
(h)(1) to clear a swap and subsection (h)(8) to execute a swap through a board
of trade or swap execution facility shall be available to a counterparty that
is an issuer of securities that are registered under section 12 of the
Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file
reports pursuant to section 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78o) only if an appropriate committee of the issuer’s board or governing
body has reviewed and approved its decision to enter into swaps that are
subject to such
exemptions.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H59FE9975BF154EBF9C8B3E108CFB525C"><enum>(c)</enum><header>Grandfather
provisions</header>
<paragraph id="H24C2A330913A477BB1ABF79AB4172003"><enum>(1)</enum><header>Legal certainty
for certain transactions in exempt commodities</header><text>Not later than 60
days after the date of enactment of this Act, a person may submit to the
Commodity Futures Trading Commission a petition to remain subject to section
2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) (as in effect on the day
before the date of enactment of this Act).</text>
</paragraph><paragraph id="H2B88DB0820CA4A8480DAAFEE21BFA224"><enum>(2)</enum><header>Consideration;
authority of Commodity Futures Trading Commission</header><text>The Commodity
Futures Trading Commission—</text>
<subparagraph id="HE56CFB6E72824698AE5A3C6478C27A85"><enum>(A)</enum><text>shall consider any
petition submitted under subparagraph (A) in a prompt manner; and</text>
</subparagraph><subparagraph id="H3ECAB8A6FB59481889378C2F80DA7C01"><enum>(B)</enum><text>may allow a person
to continue operating subject to section 2(h) of the Commodity Exchange Act (7
U.S.C. 2(h)) (as in effect on the day before the date of enactment of this Act)
for not longer than a 1-year period.</text>
</subparagraph></paragraph><paragraph commented="no" id="H029F65E8F36F4D6296207783DA39B8B7"><enum>(3)</enum><header>Agricultural
swaps</header>
<subparagraph commented="no" id="HCE1A5C38A43F4CC985F4ABCB71A680C2"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), no person shall
offer to enter into, enter into, or confirm the execution of, any swap in an
agricultural commodity (as defined by the Commodity Futures Trading
Commission).</text>
</subparagraph><subparagraph commented="no" id="H71789D8747BF4F249F1E5FE2429643F0"><enum>(B)</enum><header>Exception</header><text>Notwithstanding
subparagraph (A), a person may offer to enter into, enter into, or confirm the
execution of, any swap in an agricultural commodity pursuant to section 4(c) of
the Commodity Exchange Act (7 U.S.C. 6(c)) or any rule, regulation, or order
issued thereunder (including any rule, regulation, or order in effect as of the
date of enactment of this Act) by the Commodity Futures Trading Commission to
allow swaps under such terms and conditions as the Commission shall
prescribe.</text>
</subparagraph></paragraph><paragraph commented="no" id="H36676651D7C54D53A59BAE385E96EE17"><enum>(4)</enum><header>Required
reporting</header><text>If the exception described in section 2(h)(8)(B) of the
Commodity Exchange Act applies, the counterparties shall comply with any
recordkeeping and transaction reporting requirements that may be prescribed by
the Commission with respect to swaps subject to section 2(h)(8)(B) of the
Commodity Exchange Act.</text>
</paragraph></subsection></section><section id="HC4DD7A4C90544C25BFFA9FB386B9C896"><enum>724.</enum><header>Swaps;
segregation and bankruptcy treatment</header>
<subsection id="H73A02C6A849E48498F429D17EE66C0B6"><enum>(a)</enum><header>Segregation
requirements for cleared swaps</header><text>Section 4d of the Commodity
Exchange Act (7 U.S.C. 6d) (as amended by section 732) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5520D8A6E8EC46D587C805718354E8E3" style="OLC">
<subsection id="HF4B6340592FE4E34AA3AB3C9F718E702"><enum>(f)</enum><header>Swaps</header>
<paragraph id="H243F31E7BC0148A5A6F8655855F2A761"><enum>(1)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person to accept any
money, securities, or property (or to extend any credit in lieu of money,
securities, or property) from, for, or on behalf of a swaps customer to margin,
guarantee, or secure a swap cleared by or through a derivatives clearing
organization (including money, securities, or property accruing to the customer
as the result of such a swap), unless the person shall have registered under
this Act with the Commission as a futures commission merchant, and the
registration shall not have expired nor been suspended nor revoked.</text>
</paragraph><paragraph id="H9AAE1024FA4549E98CAA308F4B8E8B05"><enum>(2)</enum><header>Cleared
swaps</header>
<subparagraph id="H6F59B75EA12D45B4A215D8C55A4EA723"><enum>(A)</enum><header>Segregation
required</header><text>A futures commission merchant shall treat and deal with
all money, securities, and property of any swaps customer received to margin,
guarantee, or secure a swap cleared by or though a derivatives clearing
organization (including money, securities, or property accruing to the swaps
customer as the result of such a swap) as belonging to the swaps
customer.</text>
</subparagraph><subparagraph id="H42CE41242FC94552B043B13397997CDF"><enum>(B)</enum><header>Commingling
prohibited</header><text>Money, securities, and property of a swaps customer
described in subparagraph (A) shall be separately accounted for and shall not
be commingled with the funds of the futures commission merchant or be used to
margin, secure, or guarantee any trades or contracts of any swaps customer or
person other than the person for whom the same are held.</text>
</subparagraph></paragraph><paragraph id="H363D64CF5CBF4BA0950F721CD8E7E408"><enum>(3)</enum><header>Exceptions</header>
<subparagraph id="HFC40E492A8014A62A61D772B836E1126"><enum>(A)</enum><header>Use of
funds</header>
<clause id="HF9FAD21903E745D0A35712EC582A13D7"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (2), money, securities, and
property of swap customers of a futures commission merchant described in
paragraph (2) may, for convenience, be commingled and deposited in the same
account or accounts with any bank or trust company or with a derivatives
clearing organization.</text>
</clause><clause id="HA7991672E6BD421DAA1C3D5E748764D1"><enum>(ii)</enum><header>Withdrawal</header><text>Notwithstanding
paragraph (2), such share of the money, securities, and property described in
clause (i) as in the normal course of business shall be necessary to margin,
guarantee, secure, transfer, adjust, or settle a cleared swap with a
derivatives clearing organization, or with any member of the derivatives
clearing organization, may be withdrawn and applied to such purposes, including
the payment of commissions, brokerage, interest, taxes, storage, and other
charges, lawfully accruing in connection with the cleared swap.</text>
</clause></subparagraph><subparagraph id="HB9D7B0AC21D7417886299EC9E27455E7"><enum>(B)</enum><header>Commission
action</header><text>Notwithstanding paragraph (2), in accordance with such
terms and conditions as the Commission may prescribe by rule, regulation, or
order, any money, securities, or property of the swaps customers of a futures
commission merchant described in paragraph (2) may be commingled and deposited
in customer accounts with any other money, securities, or property received by
the futures commission merchant and required by the Commission to be separately
accounted for and treated and dealt with as belonging to the swaps customer of
the futures commission merchant.</text>
</subparagraph></paragraph><paragraph id="H633B271502834C199F0A1D55741F42EC"><enum>(4)</enum><header>Permitted
investments</header><text>Money described in paragraph (2) may be invested in
obligations of the United States, in general obligations of any State or of any
political subdivision of a State, and in obligations fully guaranteed as to
principal and interest by the United States, or in any other investment that
the Commission may by rule or regulation prescribe, and such investments shall
be made in accordance with such rules and regulations and subject to such
conditions as the Commission may prescribe.</text>
</paragraph><paragraph id="H66AC87EDBFC24FADB3C4868093BED046"><enum>(5)</enum><header>Commodity
contract</header><text>A swap cleared by or through a derivatives clearing
organization shall be considered to be a commodity contract as such term is
defined in section 761 of title 11, United States Code, with regard to all
money, securities, and property of any swaps customer received by a futures
commission merchant or a derivatives clearing organization to margin,
guarantee, or secure the swap (including money, securities, or property
accruing to the customer as the result of the swap).</text>
</paragraph><paragraph id="HB5C39101C7EA48E68A9C2F4B30BDF667"><enum>(6)</enum><header>Prohibition</header><text>It
shall be unlawful for any person, including any derivatives clearing
organization and any depository institution, that has received any money,
securities, or property for deposit in a separate account or accounts as
provided in paragraph (2) to hold, dispose of, or use any such money,
securities, or property as belonging to the depositing futures commission
merchant or any person other than the swaps customer of the futures commission
merchant.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H30AD0EA0FD9C47EE861063CB2D36A631"><enum>(b)</enum><header>Bankruptcy
treatment of cleared swaps</header><text>Section 761 of title 11, United States
Code, is amended—</text>
<paragraph id="H98C0856FDE724392A138D71A45E038F3"><enum>(1)</enum><text>in paragraph (4),
by striking subparagraph (F) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4A9EB80B5A5C45B49AB40378DE8C3662" style="OLC">
<subparagraph id="HEB58A9B08E184C188C6ABBA5236D6848"><enum>(F)</enum><clause commented="no" display-inline="yes-display-inline" id="H0F3B765B39E642F9B0CA1C4B90EE4559"><enum>(i)</enum><text>any other contract,
option, agreement, or transaction that is similar to a contract, option,
agreement, or transaction referred to in this paragraph; and</text>
</clause><clause id="H196459C6643246CC814D52D46BE84378" indent="up1"><enum>(ii)</enum><text>with respect to a futures
commission merchant or a clearing organization, any other contract, option,
agreement, or transaction, in each case, that is cleared by a clearing
organization;</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9940268AF0534678A7696BFE1387BEDA"><enum>(2)</enum><text>in paragraph
(9)(A)(i), by striking <quote>the commodity futures account</quote> and
inserting <quote>a commodity contract account</quote>.</text>
</paragraph></subsection><subsection id="HB91CD82C5E8F48DCB1414088ECD4E19D"><enum>(c)</enum><header>Segregation
requirements for uncleared swaps</header><text>Section 4s of the Commodity
Exchange Act (as added by section 731) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H7D14C489626A4D16806332DF58DF27B3" style="OLC">
<subsection id="H884A62FDC7CE4CEAB0982E121F3C6492"><enum>(l)</enum><header>Segregation
requirements</header>
<paragraph id="HF3C1A650D11D4AB881B59066AE80E49A"><enum>(1)</enum><header>Segregation of
assets held as collateral in uncleared swap transactions</header>
<subparagraph id="H4F0397F9704F46CDA98C21AB9F36639B"><enum>(A)</enum><header>Notification</header><text>A
swap dealer or major swap participant shall be required to notify the
counterparty of the swap dealer or major swap participant at the beginning of a
swap transaction that the counterparty has the right to require segregation of
the funds or other property supplied to margin, guarantee, or secure the
obligations of the counterparty.</text>
</subparagraph><subparagraph id="H0975D02A81874E6194BB235648F5E313"><enum>(B)</enum><header>Segregation and
maintenance of funds</header><text>At the request of a counterparty to a swap
that provides funds or other property to a swap dealer or major swap
participant to margin, guarantee, or secure the obligations of the
counterparty, the swap dealer or major swap participant shall—</text>
<clause id="HB3FC3F7568A6463D86EC3AD95BDEB9FE"><enum>(i)</enum><text>segregate the
funds or other property for the benefit of the counterparty; and</text>
</clause><clause id="H543139A9E4544F96872F8003D58E4086"><enum>(ii)</enum><text>in accordance
with such rules and regulations as the Commission may promulgate, maintain the
funds or other property in a segregated account separate from the assets and
other interests of the swap dealer or major swap participant.</text>
</clause></subparagraph></paragraph><paragraph id="H39C65360B3644D27870F8FA185B36FFF"><enum>(2)</enum><header>Applicability</header><text>The
requirements described in paragraph (1) shall—</text>
<subparagraph id="H102BFD54C87A4AB2815C2AC035679F48"><enum>(A)</enum><text>apply only to a
swap between a counterparty and a swap dealer or major swap participant that is
not submitted for clearing to a derivatives clearing organization; and</text>
</subparagraph><subparagraph id="HAACB0EF6746E42BE8C463F2A19090186"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H900EFEA3B1D54913A3C626BE469F39CA"><enum>(i)</enum><text>not apply to variation
margin payments; or</text>
</clause><clause id="HB5A6D89F3CE64F8390EF06C6172F909C" indent="up1"><enum>(ii)</enum><text>not preclude any commercial
arrangement regarding—</text>
<subclause id="H70F9CF20D1F249E9852C134A916585E2"><enum>(I)</enum><text>the investment of segregated funds or
other property that may only be invested in such investments as the Commission
may permit by rule or regulation; and</text>
</subclause><subclause id="H91C7A6A07FEF4D6590C1CAA97E397D53"><enum>(II)</enum><text>the related allocation of gains and
losses resulting from any investment of the segregated funds or other
property.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HC054F595DF9A436AABE39C7045D48D47"><enum>(3)</enum><header>Use of
independent third-party custodians</header><text>The segregated account
described in paragraph (1) shall be—</text>
<subparagraph id="H199C7C3CA3764355B2370311CA1332F7"><enum>(A)</enum><text>carried by an
independent third-party custodian; and</text>
</subparagraph><subparagraph id="H5BCC6C02C5764F40A038B2B198145C84"><enum>(B)</enum><text>designated as a
segregated account for and on behalf of the counterparty.</text>
</subparagraph></paragraph><paragraph id="H718060E24741498AA4ACD69B290076D2"><enum>(4)</enum><header>Reporting
requirement</header><text>If the counterparty does not choose to require
segregation of the funds or other property supplied to margin, guarantee, or
secure the obligations of the counterparty, the swap dealer or major swap
participant shall report to the counterparty of the swap dealer or major swap
participant on a quarterly basis that the back office procedures of the swap
dealer or major swap participant relating to margin and collateral requirements
are in compliance with the agreement of the
counterparties.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HE2410B8150C44561840261B718AE9B20"><enum>725.</enum><header>Derivatives
clearing organizations</header>
<subsection commented="no" id="H4035D80987314398B26926539D97A10D"><enum>(a)</enum><header>Registration
requirement</header><text>Section 5b of the Commodity Exchange Act (7 U.S.C.
7a–1) is amended by striking subsections (a) and (b) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFEC8BCCC22264822B0DD1890EAD43E8C" style="OLC">
<subsection commented="no" id="HC4A233BBD95347349221B3D03C0DA59D"><enum>(a)</enum><header>Registration
requirement</header>
<paragraph id="H9A80E6BBFD494619AB88324082270A7D"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), it shall be unlawful
for a derivatives clearing organization, directly or indirectly, to make use of
the mails or any means or instrumentality of interstate commerce to perform the
functions of a derivatives clearing organization with respect to—</text>
<subparagraph id="H23859A9FB5E04B9883F08E0946E96D0F"><enum>(A)</enum><text>a contract of sale
of a commodity for future delivery (or an option on the contract of sale) or
option on a commodity, in each case, unless the contract or option is—</text>
<clause id="H86E11739E37A46A7B90F56E8E73AFA01"><enum>(i)</enum><text>excluded from this
Act by subsection (a)(1)(C)(i), (c), or (f) of section 2; or</text>
</clause><clause id="H44D4B78B13334EA5BED71EA964FF82E1"><enum>(ii)</enum><text>a
security futures product cleared by a clearing agency registered with the
Securities and Exchange Commission under the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.); or</text>
</clause></subparagraph><subparagraph id="HDB215735D39A49698AFE3B2A636CB498"><enum>(B)</enum><text>a swap.</text>
</subparagraph></paragraph><paragraph id="HBB7C4C856751447E8EBB1FBCA3BB6DC1"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply to a derivatives clearing organization that is registered
with the Commission.</text>
</paragraph></subsection><subsection id="H8DEBF4A08EBA42418BEB5D432388B859"><enum>(b)</enum><header>Voluntary
registration</header><text>A person that clears 1 or more agreements,
contracts, or transactions that are not required to be cleared under this Act
may register with the Commission as a derivatives clearing
organization.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H788B33F1592C4A388B9A766BFED59BB6"><enum>(b)</enum><header>Registration for
depository institutions and clearing agencies; exemptions; compliance officer;
annual reports</header><text>Section 5b of the Commodity Exchange Act (7 U.S.C.
7a–1) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H197A91AB213F43029024AEA0DB5EEC0B" style="OLC">
<subsection id="H9DC26B4306AB4CC8BDD2FC2FF4A7BAF4"><enum>(g)</enum><header>Existing
depository institutions and clearing agencies</header>
<paragraph id="H259338E5A0264EB5AFB92B0544B03779"><enum>(1)</enum><header>In
general</header><text>A depository institution or clearing agency registered
with the Securities and Exchange Commission under the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.) that is required to be registered as a
derivatives clearing organization under this section is deemed to be registered
under this section to the extent that, before the date of enactment of this
subsection—</text>
<subparagraph id="H7AB6056670AE4069A461F872818FB75A"><enum>(A)</enum><text>the depository
institution cleared swaps as a multilateral clearing organization; or</text>
</subparagraph><subparagraph id="HF5B30AB6EFB4425381183AED488CE5AA"><enum>(B)</enum><text>the clearing
agency cleared swaps.</text>
</subparagraph></paragraph><paragraph id="HF540035380804D4EB13A7BA0553251D7"><enum>(2)</enum><header>Conversion of
depository institutions</header><text>A depository institution to which this
subsection applies may, by the vote of the shareholders owning not less than 51
percent of the voting interests of the depository institution, be converted
into a State corporation, partnership, limited liability company, or similar
legal form pursuant to a plan of conversion, if the conversion is not in
contravention of applicable State law.</text>
</paragraph><paragraph id="HF9B109513F2B4828A8E64AF12664D7F5"><enum>(3)</enum><header>Sharing of
information</header><text>The Securities and Exchange Commission shall make
available to the Commission, upon request, all information determined to be
relevant by the Securities and Exchange Commission regarding a clearing agency
deemed to be registered with the Commission under paragraph (1).</text>
</paragraph></subsection><subsection id="H45BCECDF167843628477B54B24BAA665"><enum>(h)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a derivatives clearing
organization from registration under this section for the clearing of swaps if
the Commission determines that the derivatives clearing organization is subject
to comparable, comprehensive supervision and regulation by the Securities and
Exchange Commission or the appropriate government authorities in the home
country of the organization. Such conditions may include, but are not limited
to, requiring that the derivatives clearing organization be available for
inspection by the Commission and make available all information requested by
the Commission.</text>
</subsection><subsection id="H1363C57CA9C4452FB1AF29979FA93DA4"><enum>(i)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="H6B65CC1BD7334F82903D6EDCC4E20636"><enum>(1)</enum><header>In
general</header><text>Each derivatives clearing organization shall designate an
individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="H1BE75E77CF524F61BE6E01D63F92726D"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="H00D4B5CDF8AB4B8E998615647DADB475"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the derivatives clearing
organization;</text>
</subparagraph><subparagraph id="H42BD047E7B754476A840C99C041A2CB1"><enum>(B)</enum><text>review the
compliance of the derivatives clearing organization with respect to the core
principles described in subsection (c)(2);</text>
</subparagraph><subparagraph id="H2C3D7F5999604D79801DE5ED49174D0D"><enum>(C)</enum><text>in consultation
with the board of the derivatives clearing organization, a body performing a
function similar to the board of the derivatives clearing organization, or the
senior officer of the derivatives clearing organization, resolve any conflicts
of interest that may arise;</text>
</subparagraph><subparagraph id="H0F1CF3D7A0D841659830EF698DDA405E"><enum>(D)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="HDC82DB8FAAC942FD8AA96F79446C98E5"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</subparagraph><subparagraph id="H4ECA5BFF4A4F4ED9BB457CDB667FA8D9"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the
compliance officer through any—</text>
<clause id="H24F34B2EC8BF471B9F9C17C442756FB2"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="H9943F12F24E94086B54812AFFBA3AF7D"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="HD7EFF5F654C0447C83B1A0FB6E790DCE"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="H14DC27389BCB4B34BE6B14CB8294C884"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="H8F5E37FCB7604C53B9938FFEB4D92BFA"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="HC31ACD79B512498997FDE00B3A0400EF"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="H6E99172F2AAA488CBAEC4892133A705D"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="HCED1FE156521481991F84E1A128A78A7"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="HDAA47A38B1AB41A9B1237EA1CF48E036"><enum>(i)</enum><text>the compliance of
the derivatives clearing organization of the compliance officer with respect to
this Act (including regulations); and</text>
</clause><clause id="H5A382A786A8943FCB421504A49FEA510"><enum>(ii)</enum><text>each policy and
procedure of the derivatives clearing organization of the compliance officer
(including the code of ethics and conflict of interest policies of the
derivatives clearing organization).</text>
</clause></subparagraph><subparagraph id="HC7B15B5722FD41FA9FF6C31525BCA544"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="HE323019A5FF547C9B6AC7E445BB56307"><enum>(i)</enum><text>accompany each
appropriate financial report of the derivatives clearing organization that is
required to be furnished to the Commission pursuant to this section; and</text>
</clause><clause id="H0339B4FE3D454C048E7A5F0974F4D5C8"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H1156E84238AC4E63A08EB5574B311A24"><enum>(c)</enum><header>Core principles
for derivatives clearing organizations</header><text>Section 5b(c) of the
Commodity Exchange Act (7 U.S.C. 7a–1(c)) is amended by striking paragraph (2)
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA9E93A7B891449A2AF3E14D871C41439" style="OLC">
<paragraph id="H2DFD1719156F4DDDA9D8434A83E16F55"><enum>(2)</enum><header>Core principles
for derivatives clearing organizations</header>
<subparagraph id="H0B24BA562CC747DEB43E4EE79843A5F2"><enum>(A)</enum><header>Compliance</header>
<clause id="HB5054D5E3534410A9901F50AF68450F6"><enum>(i)</enum><header>In
general</header><text>To be registered and to maintain registration as a
derivatives clearing organization, a derivatives clearing organization shall
comply with each core principle described in this paragraph and any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</clause><clause id="HD85CA1DB02D74A5DB70D65150A7EFDBA"><enum>(ii)</enum><header>Discretion of
derivatives clearing organization</header><text>Subject to any rule or
regulation prescribed by the Commission, a derivatives clearing organization
shall have reasonable discretion in establishing the manner by which the
derivatives clearing organization complies with each core principle described
in this paragraph.</text>
</clause></subparagraph><subparagraph id="H45391153F381498FAB8A1FA51F1D8355"><enum>(B)</enum><header>Financial
resources</header>
<clause id="H4227D0E817F64C65B8DC9FECE2ED28F5"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall have
adequate financial, operational, and managerial resources, as determined by the
Commission, to discharge each responsibility of the derivatives clearing
organization.</text>
</clause><clause id="H2E0E2870CD4B4AE0ACF320EDAA2C05AA"><enum>(ii)</enum><header>Minimum amount
of financial resources</header><text>Each derivatives clearing organization
shall possess financial resources that, at a minimum, exceed the total amount
that would—</text>
<subclause id="H63BDD08C94564E8F906AAF3EACBCA221"><enum>(I)</enum><text>enable the
organization to meet its financial obligations to its members and participants
notwithstanding a default by the member or participant creating the largest
financial exposure for that organization in extreme but plausible market
conditions; and</text>
</subclause><subclause id="H2E777760EDC445D4B14CDDEF56B449BD"><enum>(II)</enum><text>enable the
derivatives clearing organization to cover the operating costs of the
derivatives clearing organization for a period of 1 year (as calculated on a
rolling basis).</text>
</subclause></clause></subparagraph><subparagraph id="HBD2A0ACCBFFC46CB9D6F3827C189606E"><enum>(C)</enum><header>Participant and
product eligibility</header>
<clause id="H3E78F4D9ED0B4D0AB185958A603F191C"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall
establish—</text>
<subclause id="HC0D07EB49CDA42F58462A4364AF5403B"><enum>(I)</enum><text>appropriate
admission and continuing eligibility standards (including sufficient financial
resources and operational capacity to meet obligations arising from
participation in the derivatives clearing organization) for members of, and
participants in, the derivatives clearing organization; and</text>
</subclause><subclause id="H6F00B08F5C204B92B9AC37A9F96E1ED9"><enum>(II)</enum><text>appropriate
standards for determining the eligibility of agreements, contracts, or
transactions submitted to the derivatives clearing organization for
clearing.</text>
</subclause></clause><clause id="HFD750B0CE4B34048890999B28FC28B15"><enum>(ii)</enum><header>Required
procedures</header><text>Each derivatives clearing organization shall establish
and implement procedures to verify, on an ongoing basis, the compliance of each
participation and membership requirement of the derivatives clearing
organization.</text>
</clause><clause id="HF10D648062B9429DA0A530D1E2C2C31C"><enum>(iii)</enum><header>Requirements</header><text>The
participation and membership requirements of each derivatives clearing
organization shall—</text>
<subclause id="H373A7CDFA0C648F9B3D6C0105FEE40C9"><enum>(I)</enum><text>be
objective;</text>
</subclause><subclause id="H0A5EA39FE12841B8B55BD1B734DDE6E9"><enum>(II)</enum><text>be publicly
disclosed; and</text>
</subclause><subclause id="H71FCD9F7B2214706850CBFDB2D3292D0"><enum>(III)</enum><text>permit fair and
open access.</text>
</subclause></clause></subparagraph><subparagraph id="HBA3786F7A60D4C1A96339481101D0260"><enum>(D)</enum><header>Risk
management</header>
<clause id="H7E77316FA2C14119B7D4B6C0ED9AC44F"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall ensure that
the derivatives clearing organization possesses the ability to manage the risks
associated with discharging the responsibilities of the derivatives clearing
organization through the use of appropriate tools and procedures.</text>
</clause><clause id="HC3316B3A7456418F98A36C4CDDBA3374"><enum>(ii)</enum><header>Measurement of
credit exposure</header><text>Each derivatives clearing organization
shall—</text>
<subclause id="H8D3390B2CE5644F0A213C642BAEAE4EA"><enum>(I)</enum><text>not less than once
during each business day of the derivatives clearing organization, measure the
credit exposures of the derivatives clearing organization to each member and
participant of the derivatives clearing organization; and</text>
</subclause><subclause id="H68A7A4A0A0D6425487D6486CBCCD27D0"><enum>(II)</enum><text>monitor each
exposure described in subclause (I) periodically during the business day of the
derivatives clearing organization.</text>
</subclause></clause><clause id="HEE8BE0BB52D54FD4AAB2B2C99CB6C247"><enum>(iii)</enum><header>Limitation of
exposure to potential losses from defaults</header><text>Each derivatives
clearing organization, through margin requirements and other risk control
mechanisms, shall limit the exposure of the derivatives clearing organization
to potential losses from defaults by members and participants of the
derivatives clearing organization to ensure that—</text>
<subclause id="H6BDF58FF96E24F2197603DE2B34B088A"><enum>(I)</enum><text>the operations of
the derivatives clearing organization would not be disrupted; and</text>
</subclause><subclause id="HA98B080AE7044F05B3C56F813B5A87FD"><enum>(II)</enum><text>nondefaulting
members or participants would not be exposed to losses that nondefaulting
members or participants cannot anticipate or control.</text>
</subclause></clause><clause id="H0F6F499DA9CD424A9184F6C97F3C3A94"><enum>(iv)</enum><header>Margin
requirements</header><text>The margin required from each member and participant
of a derivatives clearing organization shall be sufficient to cover potential
exposures in normal market conditions.</text>
</clause><clause id="H165BFF2ADB974DCDAB860102F5D1919A"><enum>(v)</enum><header>Requirements
regarding models and parameters</header><text>Each model and parameter used in
setting margin requirements under clause (iv) shall be—</text>
<subclause id="HAA55F3D7B2B7401D8304B73ECF10532B"><enum>(I)</enum><text>risk-based;
and</text>
</subclause><subclause id="H276AFD346CE244C3B2C25A39F573310A"><enum>(II)</enum><text>reviewed on a
regular basis.</text>
</subclause></clause></subparagraph><subparagraph id="HA5EB99192B7146368CD96D9D4769378D"><enum>(E)</enum><header>Settlement
procedures</header><text>Each derivatives clearing organization shall—</text>
<clause id="HD52DED7E0A344E5AB505FD971FAC219D"><enum>(i)</enum><text>complete money
settlements on a timely basis (but not less frequently than once each business
day);</text>
</clause><clause id="H7DF76A7FEE334C7FB49AF4DADCD57289"><enum>(ii)</enum><text>employ money
settlement arrangements to eliminate or strictly limit the exposure of the
derivatives clearing organization to settlement bank risks (including credit
and liquidity risks from the use of banks to effect money settlements);</text>
</clause><clause id="H55358FB14B8D4BE787D2CF45096FA80D"><enum>(iii)</enum><text>ensure that
money settlements are final when effected;</text>
</clause><clause id="H568077F38B7141EC91243081D8C3E30A"><enum>(iv)</enum><text>maintain an
accurate record of the flow of funds associated with each money
settlement;</text>
</clause><clause id="H2AE47B19334B4BB5AC081135D7EAABDE"><enum>(v)</enum><text>possess the
ability to comply with each term and condition of any permitted netting or
offset arrangement with any other clearing organization;</text>
</clause><clause id="H5026CB184C894754A38777F145310516"><enum>(vi)</enum><text>regarding
physical settlements, establish rules that clearly state each obligation of the
derivatives clearing organization with respect to physical deliveries;
and</text>
</clause><clause id="H033F1F368AD846FE9559C9FD9AE7FD5C"><enum>(vii)</enum><text>ensure that each
risk arising from an obligation described in clause (vi) is identified and
managed.</text>
</clause></subparagraph><subparagraph id="H8762D56538B949E68E19776B7DB08C5B"><enum>(F)</enum><header>Treatment of
funds</header>
<clause id="H7C0BF6201A1F4992B8327EC3A5BCD607"><enum>(i)</enum><header>Required
standards and procedures</header><text>Each derivatives clearing organization
shall establish standards and procedures that are designed to protect and
ensure the safety of member and participant funds and assets.</text>
</clause><clause id="H3B6F9C37C0AA4A0F8330B91A330AA750"><enum>(ii)</enum><header>Holding of
funds and assets</header><text>Each derivatives clearing organization shall
hold member and participant funds and assets in a manner by which to minimize
the risk of loss or of delay in the access by the derivatives clearing
organization to the assets and funds.</text>
</clause><clause id="H863541B3FBAC4D2CA4AF05A2D105F9D1"><enum>(iii)</enum><header>Permissible
investments</header><text>Funds and assets invested by a derivatives clearing
organization shall be held in instruments with minimal credit, market, and
liquidity risks.</text>
</clause></subparagraph><subparagraph id="HE11A7274BA9A4ECBB08956F83AF886E2"><enum>(G)</enum><header>Default rules
and procedures</header>
<clause id="H1896FDBFD7BE4E4EAF26307543F6C58F"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall have rules
and procedures designed to allow for the efficient, fair, and safe management
of events during which members or participants—</text>
<subclause id="H5F7391C98E2D45819F85C2CFC02E3951"><enum>(I)</enum><text>become insolvent;
or</text>
</subclause><subclause id="HB88A7FCC3CED41A3B44EA448A9469C60"><enum>(II)</enum><text>otherwise default
on the obligations of the members or participants to the derivatives clearing
organization.</text>
</subclause></clause><clause id="H84ED61FF0F1540F7A84ADBB3E81BE9DB"><enum>(ii)</enum><header>Default
procedures</header><text>Each derivatives clearing organization shall—</text>
<subclause id="H72647D215A6C4B22A6B70B07D7C9DE6C"><enum>(I)</enum><text>clearly state the
default procedures of the derivatives clearing organization;</text>
</subclause><subclause id="HDA85F6055DD3467C9CA3B7DEB710E32E"><enum>(II)</enum><text>make publicly
available the default rules of the derivatives clearing organization;
and</text>
</subclause><subclause id="HAD5CE1CF61364D41AA9F32A5003632F2"><enum>(III)</enum><text>ensure that the
derivatives clearing organization may take timely action—</text>
<item id="H8093952C4FC74062B9AF99392AE380AD"><enum>(aa)</enum><text>to
contain losses and liquidity pressures; and</text>
</item><item id="HE1ED7346E107402F89BF80CBBBE16DFB"><enum>(bb)</enum><text>to
continue meeting each obligation of the derivatives clearing
organization.</text>
</item></subclause></clause></subparagraph><subparagraph id="H5A2B8ACB457846769D236E03711630EC"><enum>(H)</enum><header>Rule
enforcement</header><text>Each derivatives clearing organization shall—</text>
<clause id="H2E7C2F29595E448AABA8E7D0F3F4A5C2"><enum>(i)</enum><text>maintain adequate
arrangements and resources for—</text>
<subclause id="H9DC6B70FBB744B60BF10C243A65481A6"><enum>(I)</enum><text>the effective
monitoring and enforcement of compliance with the rules of the derivatives
clearing organization; and</text>
</subclause><subclause id="H973149C7CC7840F695D64856BDF510D2"><enum>(II)</enum><text>the resolution of
disputes;</text>
</subclause></clause><clause id="HDE50A3CD1158456283F20767DFC687A3"><enum>(ii)</enum><text>have the
authority and ability to discipline, limit, suspend, or terminate the
activities of a member or participant due to a violation by the member or
participant of any rule of the derivatives clearing organization; and</text>
</clause><clause id="HC1563DCF6200467C8359239BA7171DCD"><enum>(iii)</enum><text>report to the
Commission regarding rule enforcement activities and sanctions imposed against
members and participants as provided in clause (ii).</text>
</clause></subparagraph><subparagraph id="H6659451C224C47A4BA0F73A01B330CC5"><enum>(I)</enum><header>System
safeguards</header><text>Each derivatives clearing organization shall—</text>
<clause id="HD0CE43D88DAD4A689E400E8AF3C83751"><enum>(i)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk through the development of appropriate controls and
procedures, and automated systems, that are reliable, secure, and have adequate
scalable capacity;</text>
</clause><clause id="H33C1CC5CF04B4113AA1B180AF6CB3680"><enum>(ii)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allows for—</text>
<subclause id="HA31681DC7CE04EF790C3DCD47914C296"><enum>(I)</enum><text>the timely
recovery and resumption of operations of the derivatives clearing organization;
and</text>
</subclause><subclause id="HB3B584E12BF446BD9031DE3F6E4C0171"><enum>(II)</enum><text>the fulfillment
of each obligation and responsibility of the derivatives clearing organization;
and</text>
</subclause></clause><clause id="H9B52CCA03C0B49B99175F57D5F826992"><enum>(iii)</enum><text>periodically
conduct tests to verify that the backup resources of the derivatives clearing
organization are sufficient to ensure daily processing, clearing, and
settlement.</text>
</clause></subparagraph><subparagraph id="HC1A6A3C9C74E4EA4AD302F7F0C154C09"><enum>(J)</enum><header>Reporting</header><text>Each
derivatives clearing organization shall provide to the Commission all
information that the Commission determines to be necessary to conduct oversight
of the derivatives clearing organization.</text>
</subparagraph><subparagraph id="HA761F8E0B7FF40E3A477D13C0923AEA7"><enum>(K)</enum><header>Recordkeeping</header><text>Each
derivatives clearing organization shall maintain records of all activities
related to the business of the derivatives clearing organization as a
derivatives clearing organization—</text>
<clause id="H03FA56BA4F39495B9C6AEA10ABEE413A"><enum>(i)</enum><text>in
a form and manner that is acceptable to the Commission; and</text>
</clause><clause id="HD164295C584248FFBDBB2031D32EB2C2"><enum>(ii)</enum><text>for a period of
not less than 5 years.</text>
</clause></subparagraph><subparagraph id="H4FC7E8611DCF454BBBB5BD5712C1D3D5"><enum>(L)</enum><header>Public
information</header>
<clause id="HAA08F79335DB4A8C88CF74B5D2943267"><enum>(i)</enum><header>In
general</header><text>Each derivatives clearing organization shall provide to
market participants sufficient information to enable the market participants to
identify and evaluate accurately the risks and costs associated with using the
services of the derivatives clearing organization.</text>
</clause><clause id="H0D8F32D88CFE46B6B7B811027491FC9A"><enum>(ii)</enum><header>Availability of
information</header><text>Each derivatives clearing organization shall make
information concerning the rules and operating and default procedures governing
the clearing and settlement systems of the derivatives clearing organization
available to market participants.</text>
</clause><clause id="H4F0ABAE8BA04470C9FC068873247E173"><enum>(iii)</enum><header>Public
disclosure</header><text>Each derivatives clearing organization shall disclose
publicly and to the Commission information concerning—</text>
<subclause id="H511011589278455E8CAE79F49C5C1F95"><enum>(I)</enum><text>the terms and
conditions of each contract, agreement, and transaction cleared and settled by
the derivatives clearing organization;</text>
</subclause><subclause id="H0B4C99A95E3C4B4A9C963866B57ACEE3"><enum>(II)</enum><text>each clearing and
other fee that the derivatives clearing organization charges the members and
participants of the derivatives clearing organization;</text>
</subclause><subclause id="HD10CCFACFAD04DF28B22074E29E22D57"><enum>(III)</enum><text>the
margin-setting methodology, and the size and composition, of the financial
resource package of the derivatives clearing organization;</text>
</subclause><subclause id="H0A9439AE2230488CAC5D6C541C24D949"><enum>(IV)</enum><text>daily settlement
prices, volume, and open interest for each contract settled or cleared by the
derivatives clearing organization; and</text>
</subclause><subclause id="H9941596AFCF040C8B5F7BCDDF28D3751"><enum>(V)</enum><text>any other matter
relevant to participation in the settlement and clearing activities of the
derivatives clearing organization.</text>
</subclause></clause></subparagraph><subparagraph id="HD79DC651918A4EB0AEED9B81773DB5D1"><enum>(M)</enum><header>Information-sharing</header><text>Each
derivatives clearing organization shall—</text>
<clause id="H74E10BE7F52B4BF0BEB3EDC1D95E19B0"><enum>(i)</enum><text>enter into, and
abide by the terms of, each appropriate and applicable domestic and
international information-sharing agreement; and</text>
</clause><clause id="HB20500CFDE3A4E85807CCDB0EF571052"><enum>(ii)</enum><text>use relevant
information obtained from each agreement described in clause (i) in carrying
out the risk management program of the derivatives clearing
organization.</text>
</clause></subparagraph><subparagraph id="HD616596D162C44EB90FE5153A2A71710"><enum>(N)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a derivatives clearing organization shall not—</text>
<clause id="H43229E3A50654BB3A080D1E6040C6BFE"><enum>(i)</enum><text>adopt any rule or
take any action that results in any unreasonable restraint of trade; or</text>
</clause><clause id="HF76CC5460DD549D4B8FAE1D326AB8680"><enum>(ii)</enum><text>impose any
material anticompetitive burden.</text>
</clause></subparagraph><subparagraph id="HBFA79C734B4B42039108207AC74D9195"><enum>(O)</enum><header>Governance
fitness standards</header>
<clause id="H1E28CF61476F4BBB833AB9F9B6762E8A"><enum>(i)</enum><header>Governance
arrangements</header><text>Each derivatives clearing organization shall
establish governance arrangements that are transparent—</text>
<subclause id="H3D0BA90033BD4AF1A0B76B0D93BE9B77"><enum>(I)</enum><text>to fulfill public
interest requirements; and</text>
</subclause><subclause id="H6F6EAA3900CA47308CE28D045CE9BC1D"><enum>(II)</enum><text>to permit the
consideration of the views of owners and participants.</text>
</subclause></clause><clause id="HB6804556DED84EDD9D1E30C5158EAC14"><enum>(ii)</enum><header>Fitness
standards</header><text>Each derivatives clearing organization shall establish
and enforce appropriate fitness standards for—</text>
<subclause id="HB36CC4F4C0B74D5A8BF27002E68CAAFA"><enum>(I)</enum><text>directors;</text>
</subclause><subclause id="HC4057EA60F53493DBD43CC8932840A1B"><enum>(II)</enum><text>members of any
disciplinary committee;</text>
</subclause><subclause id="H777CD4EE75804037B500A561B9AE231D"><enum>(III)</enum><text>members of the
derivatives clearing organization;</text>
</subclause><subclause id="H81072F8853B847A6A78DF3513ED5BB1A"><enum>(IV)</enum><text>any other
individual or entity with direct access to the settlement or clearing
activities of the derivatives clearing organization; and</text>
</subclause><subclause id="H2925D7AA58F840FF8520377AA5AF5DC9"><enum>(V)</enum><text>any party
affiliated with any individual or entity described in this clause.</text>
</subclause></clause></subparagraph><subparagraph id="H87F4BBD117534EF0BB27C137ED1AF167"><enum>(P)</enum><header>Conflicts of
interest</header><text>Each derivatives clearing organization shall—</text>
<clause id="H04AE16F92D9B4FF58A9151F88E98C292"><enum>(i)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the derivatives clearing organization; and</text>
</clause><clause id="HD4B69C94642F4C73A2230C598076BA65"><enum>(ii)</enum><text>establish a
process for resolving conflicts of interest described in clause (i).</text>
</clause></subparagraph><subparagraph id="H75328EDE7C954362B66B55F00B53AB0E"><enum>(Q)</enum><header>Composition of
governing boards</header><text>Each derivatives clearing organization shall
ensure that the composition of the governing board or committee of the
derivatives clearing organization includes market participants.</text>
</subparagraph><subparagraph id="H6E98E998F4AA4221A6F4116C49F0B835"><enum>(R)</enum><header>Legal
risk</header><text>Each derivatives clearing organization shall have a
well-founded, transparent, and enforceable legal framework for each aspect of
the activities of the derivatives clearing
organization.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9E0B95386078470384B2762A8925CA1A"><enum>(d)</enum><header>Conflicts of
interest</header><text>The Commodity Futures Trading Commission shall adopt
rules mitigating conflicts of interest in connection with the conduct of
business by a swap dealer or a major swap participant with a derivatives
clearing organization, board of trade, or a swap execution facility that clears
or trades swaps in which the swap dealer or major swap participant has a
material debt or material equity investment.</text>
</subsection><subsection id="H488B3108C0F046F59043012BDD7EE6BB"><enum>(e)</enum><header>Reporting
requirements</header><text>Section 5b of the Commodity Exchange Act (7 U.S.C.
7a–1) (as amended by subsection (b)) is amended by adding at the end the
following:</text>
<quoted-block id="HC636AAFF22EB46658B4668E0B8EEFC52" style="OLC">
<subsection id="H92DACB2678214A5A9F127127F39DF99F"><enum>(k)</enum><header>Reporting
requirements</header>
<paragraph id="H8548444F4E73416F8BF94430BA1B942E"><enum>(1)</enum><header>Duty of
derivatives clearing organizations</header><text>Each derivatives clearing
organization that clears swaps shall provide to the Commission all information
that is determined by the Commission to be necessary to perform each
responsibility of the Commission under this Act.</text>
</paragraph><paragraph id="HFB4728283C8644CC91E64B8632B39B9F"><enum>(2)</enum><header>Data collection
and maintenance requirements</header><text>The Commission shall adopt data
collection and maintenance requirements for swaps cleared by derivatives
clearing organizations that are comparable to the corresponding requirements
for—</text>
<subparagraph id="HB1C194A2A7BF459FB765D0F7D12FC465"><enum>(A)</enum><text>swaps data
reported to swap data repositories; and</text>
</subparagraph><subparagraph id="H67006182A6F842EE8173855318DD5617"><enum>(B)</enum><text>swaps traded on
swap execution facilities.</text>
</subparagraph></paragraph><paragraph id="HF6460359189A4F08BBC5C969EBF184ED"><enum>(3)</enum><header>Reports on
security-based swap agreements to be shared with the Securities and Exchange
Commission</header>
<subparagraph id="HE4403C0BE5EB4F87B5AEE9B56FC3FCE1"><enum>(A)</enum><header>In
general</header><text>A derivatives clearing organization that clears
security-based swap agreements (as defined in section 1a(47)(A)(v)) shall, upon
request, open to inspection and examination to the Securities and Exchange
Commission all books and records relating to such security-based swap
agreements, consistent with the confidentiality and disclosure requirements of
section 8.</text>
</subparagraph><subparagraph id="H22F79A339FBC4EBE870A3060050F4CD5"><enum>(B)</enum><header>Jurisdiction</header><text>Nothing
in this paragraph shall affect the exclusive jurisdiction of the Commission to
prescribe recordkeeping and reporting requirements for a derivatives clearing
organization that is registered with the Commission.</text>
</subparagraph></paragraph><paragraph id="H781892751C1541728100111563FAB27B"><enum>(4)</enum><header>Information
sharing</header><text>Subject to section 8, and upon request, the Commission
shall share information collected under paragraph (2) with—</text>
<subparagraph id="HF4DD86F6B7CC421DB2CC5867D4F89D7C"><enum>(A)</enum><text>the Board;</text>
</subparagraph><subparagraph id="H4CADB2CCF03C4EA2897B3CE0C603062C"><enum>(B)</enum><text>the Securities and
Exchange Commission;</text>
</subparagraph><subparagraph id="HCDB4FB0B35D04A99B65C6CB0C3FDE562"><enum>(C)</enum><text>each appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="HD581373E0BA245B5A21958F65B1C41CD"><enum>(D)</enum><text>the Financial
Stability Oversight Council;</text>
</subparagraph><subparagraph id="H0CC6905C571241C58E334E63E0194F8E"><enum>(E)</enum><text>the Department of
Justice; and</text>
</subparagraph><subparagraph id="H8FE76BE20E4343F29AB339CFFCF94A24"><enum>(F)</enum><text>any other person
that the Commission determines to be appropriate, including—</text>
<clause id="H2ADEFC62D5DD48C59D9C6448596988B9"><enum>(i)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</clause><clause id="H04EDA36CF9CF460BA4076AAE5CFB48D7"><enum>(ii)</enum><text>foreign central
banks; and</text>
</clause><clause id="HC8B835785A0048E18C09306944417E3B"><enum>(iii)</enum><text>foreign
ministries.</text>
</clause></subparagraph></paragraph><paragraph id="H5CB6F5455A0140A88492AD093C71CE68"><enum>(5)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the Commission may share
information with any entity described in paragraph (4)—</text>
<subparagraph id="H9DF6E04963A24BE29AF504D01C4854F7"><enum>(A)</enum><text>the Commission
shall receive a written agreement from each entity stating that the entity
shall abide by the confidentiality requirements described in section 8 relating
to the information on swap transactions that is provided; and</text>
</subparagraph><subparagraph id="H840B85390DE34087993521129FC0C9F0"><enum>(B)</enum><text>each entity shall
agree to indemnify the Commission for any expenses arising from litigation
relating to the information provided under section 8.</text>
</subparagraph></paragraph><paragraph id="H4258670B4C7F40D68CB19184FB3EAC95"><enum>(6)</enum><header>Public
information</header><text>Each derivatives clearing organization that clears
swaps shall provide to the Commission (including any designee of the
Commission) information under paragraph (2) in such form and at such frequency
as is required by the Commission to comply with the public reporting
requirements contained in section
2(a)(13).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7345178E03C84AC08FF221746BD75B4E"><enum>(f)</enum><header>Public
disclosure</header><text>Section 8(e) of the Commodity Exchange Act (7 U.S.C.
12(e)) is amended in the last sentence—</text>
<paragraph id="HC53956CEC799426EB2CA07F778C7A041"><enum>(1)</enum><text>by inserting
<quote>, central bank and ministries,</quote> after <quote>department</quote>
each place it appears; and</text>
</paragraph><paragraph id="H0D3E47AE2C4141A6A95F663973D669F6"><enum>(2)</enum><text>by striking
<quote>. is a party.</quote> and inserting <quote>, is a party.</quote>.</text>
</paragraph></subsection><subsection id="H290989C7B8B4404FA61DF2987EA5346B"><enum>(g)</enum><header>Legal certainty
for identified banking products</header>
<paragraph id="H2B5C31A3ECAE4C5EAA6E1A179B6FD99C"><enum>(1)</enum><header>Repeals</header><text>The
Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27 et seq.) is
amended—</text>
<subparagraph id="H69347CD9E89F471A8E39B9D10B2BAEFF"><enum>(A)</enum><text>by striking
sections 404 and 407 (7 U.S.C. 27b, 27e);</text>
</subparagraph><subparagraph id="H0552C71B252F44138E413CF564A491F9"><enum>(B)</enum><text>in section 402 (7
U.S.C. 27), by striking subsection (d); and</text>
</subparagraph><subparagraph id="HCE66A8DDDC48425A94A02E1B694C3170"><enum>(C)</enum><text>in section 408 (7
U.S.C. 27f)—</text>
<clause id="H1C83EB3F422445A9A9BC0F85989264C9"><enum>(i)</enum><text>in
subsection (c)—</text>
<subclause id="HF6FF03D131924851A1D901263786BC27"><enum>(I)</enum><text>by striking
<quote>in the case</quote> and all that follows through <quote>a hybrid</quote>
and inserting <quote>in the case of a hybrid</quote>;</text>
</subclause><subclause id="H8180C4AEEC1147F29198ECC96B87146E"><enum>(II)</enum><text>by striking
<quote>; or</quote> and inserting a period; and</text>
</subclause><subclause id="H07A63906E53849929948D3674B4CFC61"><enum>(III)</enum><text>by striking
paragraph (2);</text>
</subclause></clause><clause id="H25F9C2DC39BE465B8C8DDD5CE8E4628B"><enum>(ii)</enum><text>by
striking subsection (b); and</text>
</clause><clause id="H7977FD147FC44FC5B035C95BD2607E59"><enum>(iii)</enum><text>by
redesignating subsection (c) as subsection (b).</text>
</clause></subparagraph></paragraph><paragraph id="HA80107D2ADA6461DACCBD0B2B89C8334"><enum>(2)</enum><header>Legal Certainty
for Bank Products Act of 2000</header><text>Section 403 of the Legal Certainty
for Bank Products Act of 2000 (7 U.S.C. 27a) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HCAD8CB4BD6104559BD8FDA00505D358F" style="OLC">
<section commented="no" id="H534CBCB30B5E462E98705037A8B3BE12"><enum>403.</enum><header>Exclusion of
identified banking product</header>
<subsection commented="no" id="HFFAF317D01EF4574A4FBEBDB84F6B1EB"><enum>(a)</enum><header>Exclusion</header><text>Except
as provided in subsection (b) or (c)—</text>
<paragraph commented="no" id="H7C2BB06FC90841E0ABC025F8938185E6"><enum>(1)</enum><text>the Commodity
Exchange Act (7 U.S.C. 1 et seq.) shall not apply to, and the Commodity Futures
Trading Commission shall not exercise regulatory authority under the Commodity
Exchange Act (7 U.S.C. 1 et seq.) with respect to, an identified banking
product; and</text>
</paragraph><paragraph id="H0CA84D6DFFC14AA3A1D9D2DFC6615F9D"><enum>(2)</enum><text>the definitions of
<quote>security-based swap</quote> in section 3(a)(68) of the Securities
Exchange Act of 1934 and <quote>security-based swap agreement</quote> in
section 1a(47)(A)(v) of the Commodity Exchange Act and section 3(a)(78) of the
Securities Exchange Act of 1934 do not include any identified bank
product.</text>
</paragraph></subsection><subsection commented="no" id="H188CB061563F44C68DEF29DE5CA93D1E"><enum>(b)</enum><header>Exception</header><text>An
appropriate Federal banking agency may except an identified banking product of
a bank under its regulatory jurisdiction from the exclusion in subsection (a)
if the agency determines, in consultation with the Commodity Futures Trading
Commission and the Securities and Exchange Commission, that the product—</text>
<paragraph commented="no" id="H5B2EFA13CDCB4EA19C0F902973189B5E"><enum>(1)</enum><text>would meet the
definition of a <quote>swap</quote> under section 1a(47) of the Commodity
Exchange Act (7 U.S.C. 1a) or a <quote>security-based swap</quote> under that
section 3(a)(68) of the Securities Exchange Act of 1934; and</text>
</paragraph><paragraph commented="no" id="H2C17E7D05D314FB8A9CFC584299F83FD"><enum>(2)</enum><text>has become known
to the trade as a swap or security-based swap, or otherwise has been structured
as an identified banking product for the purpose of evading the provisions of
the Commodity Exchange Act (7 U.S.C. 1 et seq.), the Securities Act of 1933 (15
U.S.C. 77a et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph></subsection><subsection id="HEAAE7ABD70BF422B9A3D86B596714922"><enum>(c)</enum><header>Exception</header><text>The
exclusions in subsection (a) shall not apply to an identified bank product
that—</text>
<paragraph id="H9E159338E80340A5AAAF6887BD67B73C"><enum>(1)</enum><text>is a product of a
bank that is not under the regulatory jurisdiction of an appropriate Federal
banking agency;</text>
</paragraph><paragraph id="H607D5D01C998448FBC2B3E5F14AC0C31"><enum>(2)</enum><text>meets the
definition of swap in section 1a(47) of the Commodity Exchange Act or
security-based swap in section 3(a)(68) of the Securities Exchange Act of 1934;
and</text>
</paragraph><paragraph id="H46B443B7A70744A289DC3CCB04110185"><enum>(3)</enum><text>has become known
to the trade as a swap or security-based swap, or otherwise has been structured
as an identified banking product for the purpose of evading the provisions of
the Commodity Exchange Act (7 U.S.C. 1 et seq.), the Securities Act of 1933 (15
U.S.C. 77a et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H60B22ED2E2EF40BDA53DA312D33F0565"><enum>(h)</enum><header>Reducing
clearing systemic risk</header><text>Section 5b(f)(1) of the Commodity Exchange
Act (7 U.S.C. 7a-1(F)(i)) is amended by adding at the end the following:
<quote>In order to minimize systemic risk, under no circumstances shall a
derivatives clearing organization be compelled to accept the counterparty
credit risk of another clearing organization.</quote>.</text>
</subsection></section><section id="HB553769DCA2F4A6D84E63299B6C2EECD"><enum>726.</enum><header>Rulemaking on
conflict of interest</header>
<subsection id="H85F268096ADE495FBC4D49CE29979ED6"><enum>(a)</enum><header>In
general</header><text>In order to mitigate conflicts of interest, not later
than 180 days after the date of enactment of the Wall Street Transparency and
Accountability Act of 2010, the Commodity Futures Trading Commission shall
adopt rules which may include numerical limits on the control of, or the voting
rights with respect to, any derivatives clearing organization that clears
swaps, or swap execution facility or board of trade designated as a contract
market that posts swaps or makes swaps available for trading, by a bank holding
company (as defined in section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841)) with total consolidated assets of $50,000,000,000 or more, a
nonbank financial company (as defined in section 102) supervised by the Board,
an affiliate of such a bank holding company or nonbank financial company, a
swap dealer, major swap participant, or associated person of a swap dealer or
major swap participant.</text>
</subsection><subsection id="H03B5CB1EF3864DEEBC3FDB60585787EE"><enum>(b)</enum><header>Purposes</header><text>The
Commission shall adopt rules if it determines, after the review described in
subsection (a), that such rules are necessary or appropriate to improve the
governance of, or to mitigate systemic risk, promote competition, or mitigate
conflicts of interest in connection with a swap dealer or major swap
participant’s conduct of business with, a derivatives clearing organization,
contract market, or swap execution facility that clears or posts swaps or makes
swaps available for trading and in which such swap dealer or major swap
participant has a material debt or equity investment.</text>
</subsection><subsection id="H586A6BF05B3A44468E7C7D442C9D2572"><enum>(c)</enum><header>Considerations</header><text>In
adopting rules pursuant to this section, the Commodity Futures Trading
Commission shall consider any conflicts of interest arising from the amount of
equity owned by a single investor, the ability to vote, cause the vote of, or
withhold votes entitled to be cast on any matters by the holders of the
ownership interest, and the governance arrangements of any derivatives clearing
organization that clears swaps, or swap execution facility or board of trade
designated as a contract market that posts swaps or makes swaps available for
trading.</text>
</subsection></section><section id="H312BFE16B5E143D5AA65EEF15E0F8E4F"><enum>727.</enum><header>Public
reporting of swap transaction data</header><text display-inline="no-display-inline">Section 2(a) of the Commodity Exchange Act
(7 U.S.C. 2(a)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB0C5BC394B0440B58BD0E994FA768FB0" style="OLC">
<paragraph id="H17AF526E30F643B3A32CB4F14F4A4FD3"><enum>(13)</enum><header>Public
availability of swap transaction data</header>
<subparagraph id="HF208FD2F83964BC28B5EBC14CB6CCBD4"><enum>(A)</enum><header>Definition of
real-time public reporting</header><text>In this paragraph, the term
<term>real-time public reporting</term> means to report data relating to a swap
transaction, including price and volume, as soon as technologically practicable
after the time at which the swap transaction has been executed.</text>
</subparagraph><subparagraph id="H96AF3B56495D402CAA1C31601D25A4E1"><enum>(B)</enum><header>Purpose</header><text>The
purpose of this section is to authorize the Commission to make swap transaction
and pricing data available to the public in such form and at such times as the
Commission determines appropriate to enhance price discovery.</text>
</subparagraph><subparagraph id="H3FE2A28AE40141578622CEF3F2DA06FE"><enum>(C)</enum><header>General
rule</header><text>The Commission is authorized and required to provide by rule
for the public availability of swap transaction and pricing data as
follows:</text>
<clause id="H3CB39D43F82944F1954B3BBE457A732D"><enum>(i)</enum><text>With respect to
those swaps that are subject to the mandatory clearing requirement described in
subsection (h)(1) (including those swaps that are excepted from the requirement
pursuant to subsection (h)(7)), the Commission shall require real-time public
reporting for such transactions.</text>
</clause><clause id="HD547E873A73F4EA982C7880A56030FDE"><enum>(ii)</enum><text>With respect to
those swaps that are not subject to the mandatory clearing requirement
described in subsection (h)(1), but are cleared at a registered derivatives
clearing organization, the Commission shall require real-time public reporting
for such transactions.</text>
</clause><clause id="H9960BF9874F04E4BB05EB77273DBD1A8"><enum>(iii)</enum><text>With respect to
swaps that are not cleared at a registered derivatives clearing organization
and which are reported to a swap data repository or the Commission under
subsection (h)(6), the Commission shall require real-time public reporting for
such transactions, in a manner that does not disclose the business transactions
and market positions of any person.</text>
</clause><clause id="H63CCC078A96644D58E908EE94869BE0B"><enum>(iv)</enum><text>With respect to
swaps that are determined to be required to be cleared under subsection (h)(2)
but are not cleared, the Commission shall require real-time public reporting
for such transactions.</text>
</clause></subparagraph><subparagraph id="HFE3C3DBDAF864713B2F760F217A645EE"><enum>(D)</enum><header>Registered
entities and public reporting</header><text>The Commission may require
registered entities to publicly disseminate the swap transaction and pricing
data required to be reported under this paragraph.</text>
</subparagraph><subparagraph id="H82AC61BE6AB1430C85353A42EAAB26D8"><enum>(E)</enum><header>Rulemaking
required</header><text>With respect to the rule providing for the public
availability of transaction and pricing data for swaps described in clauses (i)
and (ii) of subparagraph (C), the rule promulgated by the Commission shall
contain provisions—</text>
<clause id="HED299FBBFFD44CDAB2BF2BE5EA7B4047"><enum>(i)</enum><text>to
ensure such information does not identify the participants;</text>
</clause><clause id="H0AA41DF3AC174D9B8B64EFC76C4C7E78"><enum>(ii)</enum><text>to specify the
criteria for determining what constitutes a large notional swap transaction
(block trade) for particular markets and contracts;</text>
</clause><clause id="H71A2234E37A74AF09908EF75F6FB2EA1"><enum>(iii)</enum><text>to specify the
appropriate time delay for reporting large notional swap transactions (block
trades) to the public; and</text>
</clause><clause id="H6CD78F119E2E46308731D7DFB0C46088"><enum>(iv)</enum><text>that take into
account whether the public disclosure will materially reduce market
liquidity.</text>
</clause></subparagraph><subparagraph id="H60511BAFF9A240AB9849DDDB0FEEA119"><enum>(F)</enum><header>Timeliness of
reporting</header><text>Parties to a swap (including agents of the parties to a
swap) shall be responsible for reporting swap transaction information to the
appropriate registered entity in a timely manner as may be prescribed by the
Commission.</text>
</subparagraph><subparagraph id="H9D16BF1A9A964E9CA82AE7AD415672A5"><enum>(G)</enum><header>Reporting of
swaps to registered swap data repositories</header><text display-inline="yes-display-inline">Each swap (whether cleared or uncleared)
shall be reported to a registered swap data repository.</text>
</subparagraph></paragraph><paragraph commented="no" id="H7B44693AD49C46F4B03EDD2457F1A8AA"><enum>(14)</enum><header>Semiannual and
annual public reporting of aggregate swap data</header>
<subparagraph commented="no" id="H1647617E73C642E9B436248238A9CFCC"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
issue a written report on a semiannual and annual basis to make available to
the public information relating to—</text>
<clause commented="no" id="HFF8A702646C643409686ABAD6D0DB7F1"><enum>(i)</enum><text>the trading and
clearing in the major swap categories; and</text>
</clause><clause commented="no" id="H046DACE10AE14A3C89538D1095DA6891"><enum>(ii)</enum><text>the market
participants and developments in new products.</text>
</clause></subparagraph><subparagraph commented="no" id="H2526CAF27E004BF385ED6130737B9B80"><enum>(B)</enum><header>Use;
consultation</header><text>In preparing a report under subparagraph (A), the
Commission shall—</text>
<clause commented="no" id="HF702E78D863D4CE187BE0A1C1F416F5A"><enum>(i)</enum><text>use information
from swap data repositories and derivatives clearing organizations; and</text>
</clause><clause commented="no" id="H41F2FD2D54604D54BC41AFF898E4829A"><enum>(ii)</enum><text>consult with the
Office of the Comptroller of the Currency, the Bank for International
Settlements, and such other regulatory bodies as may be necessary.</text>
</clause></subparagraph><subparagraph commented="no" id="HBF9D1B9583EF4D7E939ED83B2345A92C"><enum>(C)</enum><header>Authority of the
Commission</header><text>The Commission may, by rule, regulation, or order,
delegate the public reporting responsibilities of the Commission under this
paragraph in accordance with such terms and conditions as the Commission
determines to be appropriate and in the public
interest.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEEB828BC9E00450691C7B32E78E8AED3"><enum>728.</enum><header>Swap data
repositories</header><text display-inline="no-display-inline">The Commodity
Exchange Act is amended by inserting after section 20 (7 U.S.C. 24) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3892627D046C40B29F84B55E9AA19FCA" style="OLC">
<section id="HC68D80B239AC44708A24B36D650726D0"><enum>21.</enum><header>Swap data
repositories</header>
<subsection id="H6B8ADC420AED4A76BBC68C25E3D1E363"><enum>(a)</enum><header>Registration
requirement</header>
<paragraph id="H967C4DB01E4B49C9B9BEE87E3EFA7BAE"><enum>(1)</enum><header>Requirement;
Authority of derivatives clearing organization</header>
<subparagraph id="H9C1DDEEB62224038BDC544CBB230ACE4"><enum>(A)</enum><header>In
general</header><text>It shall be unlawful for any person, unless registered
with the Commission, directly or indirectly to make use of the mails or any
means or instrumentality of interstate commerce to perform the functions of a
swap data repository.</text>
</subparagraph><subparagraph id="H42B5E41588EF4CDB9DD9860974337C45"><enum>(B)</enum><header>Registration of
derivatives clearing organizations</header><text>A derivatives clearing
organization may register as a swap data repository.</text>
</subparagraph></paragraph><paragraph id="HE97682C1F7594713A5704AC564CC3BE1"><enum>(2)</enum><header>Inspection and
examination</header><text>Each registered swap data repository shall be subject
to inspection and examination by any representative of the Commission.</text>
</paragraph><paragraph id="H0D2DB68153A94371802A3447B6290035"><enum>(3)</enum><header>Compliance with
core principles</header>
<subparagraph id="HD0AE5E1C7B76412696AD7667BC665C28"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a swap
data repository, the swap data repository shall comply with—</text>
<clause id="H9C7E807A00AF479EBA0BA9FA0714F870"><enum>(i)</enum><text>the requirements
and core principles described in this section; and</text>
</clause><clause id="HFB819BC23BA345988399B9ADAF0CACD7"><enum>(ii)</enum><text>any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</clause></subparagraph><subparagraph id="HA8CA1A8B63C847329B422B0140D7326F"><enum>(B)</enum><header>Reasonable
discretion of swap data repository</header><text>Unless otherwise determined by
the Commission by rule or regulation, a swap data repository described in
subparagraph (A) shall have reasonable discretion in establishing the manner in
which the swap data repository complies with the core principles described in
this section.</text>
</subparagraph></paragraph></subsection><subsection id="H174E9704D9CD40E7917BFD5C17D1044F"><enum>(b)</enum><header>Standard
setting</header>
<paragraph id="H488EAFE4F499481E81380419714A4E72"><enum>(1)</enum><header>Data
identification</header>
<subparagraph id="H7E42D2D7C6C340929E30EA36E33B33FE"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
prescribe standards that specify the data elements for each swap that shall be
collected and maintained by each registered swap data repository.</text>
</subparagraph><subparagraph id="HD0ECA568C7144E47B3344ACD5FFFBB4B"><enum>(B)</enum><header>Requirement</header><text>In
carrying out subparagraph (A), the Commission shall prescribe consistent data
element standards applicable to registered entities and reporting
counterparties.</text>
</subparagraph></paragraph><paragraph id="HCE86EEDBF7E249BA8D378C6AF7D24567"><enum>(2)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for swap data repositories.</text>
</paragraph><paragraph id="HA2C9F164C2DF4AB7AE8555B5987D51F3"><enum>(3)</enum><header>Comparability</header><text>The
standards prescribed by the Commission under this subsection shall be
comparable to the data standards imposed by the Commission on derivatives
clearing organizations in connection with their clearing of swaps.</text>
</paragraph></subsection><subsection id="HC966FA64523A48049E017513FF6C36B8"><enum>(c)</enum><header>Duties</header><text>A
swap data repository shall—</text>
<paragraph id="HC90BAB5239EA4954B21B51B8754A54EB"><enum>(1)</enum><text>accept data
prescribed by the Commission for each swap under subsection (b);</text>
</paragraph><paragraph id="HD9D7E2805CE546709597C0B389A5B549"><enum>(2)</enum><text>confirm with both
counterparties to the swap the accuracy of the data that was submitted;</text>
</paragraph><paragraph id="H747C6AAF3B084689B80068FB712A71A1"><enum>(3)</enum><text>maintain the data
described in paragraph (1) in such form, in such manner, and for such period as
may be required by the Commission;</text>
</paragraph><paragraph id="H514FD627AD2E45A5A47905E6F8B1D2F8"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HDC5DBF3CACE946C697708C14C03CE8A2"><enum>(A)</enum><text>provide direct
electronic access to the Commission (or any designee of the Commission,
including another registered entity); and</text>
</subparagraph><subparagraph id="HC4DD41B47FD548BE8F48987D69CD8C78" indent="up1"><enum>(B)</enum><text>provide the information described in
paragraph (1) in such form and at such frequency as the Commission may require
to comply with the public reporting requirements contained in section
2(a)(13);</text>
</subparagraph></paragraph><paragraph id="H3AB86D59D9234808A98E9990101D95D8"><enum>(5)</enum><text>at the direction
of the Commission, establish automated systems for monitoring, screening, and
analyzing swap data, including compliance and frequency of end user clearing
exemption claims by individual and affiliated entities;</text>
</paragraph><paragraph id="HEC8FAF8662C64622B546381AAA62A5AB"><enum>(6)</enum><text>maintain the
privacy of any and all swap transaction information that the swap data
repository receives from a swap dealer, counterparty, or any other registered
entity; and</text>
</paragraph><paragraph id="H706A80C6A3EC4277BFD7CE4A82FB5AD8"><enum>(7)</enum><text>on a confidential
basis pursuant to section 8, upon request, and after notifying the Commission
of the request, make available all data obtained by the swap data repository,
including individual counterparty trade and position data, to—</text>
<subparagraph id="H2FC30F4E14EC40D3B54C6EA8F852B10D"><enum>(A)</enum><text>each appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="H3A5CA7DFBA57493582AF1956D3439F33"><enum>(B)</enum><text>the Financial
Stability Oversight Council;</text>
</subparagraph><subparagraph id="H716FA43E2EE6413286B2DFB69FB43B5B"><enum>(C)</enum><text>the Securities and
Exchange Commission;</text>
</subparagraph><subparagraph id="H9B18E544D682469AB1F711D749438137"><enum>(D)</enum><text>the Department of
Justice; and</text>
</subparagraph><subparagraph id="HF7FC61FA00054BAAAA039B7251329EAA"><enum>(E)</enum><text>any other person
that the Commission determines to be appropriate, including—</text>
<clause id="HB05D85CDB1964B8AA987CADC50807F5C"><enum>(i)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</clause><clause id="H6454AE818E9E4918B8528BAFA1331768"><enum>(ii)</enum><text>foreign central
banks; and</text>
</clause><clause id="HF9887971738C4F9F9DC5D10A9B68712C"><enum>(iii)</enum><text>foreign
ministries; and</text>
</clause></subparagraph></paragraph><paragraph id="HEA2A45769EE54A36B5C25079D608B8F8"><enum>(8)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allows for the timely recovery and resumption of operations and
the fulfillment of the responsibilities and obligations of the
organization.</text>
</paragraph></subsection><subsection id="HC36036E705EF407698DD513BC0DA5BC1"><enum>(d)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the swap data repository may
share information with any entity described in subsection (c)(7)—</text>
<paragraph id="H9D0F76C707AA4492A4AB8C1B5CBDC28D"><enum>(1)</enum><text>the swap data
repository shall receive a written agreement from each entity stating that the
entity shall abide by the confidentiality requirements described in section 8
relating to the information on swap transactions that is provided; and</text>
</paragraph><paragraph id="H049426B40C074805B84E39E8D065ED49"><enum>(2)</enum><text>each entity shall
agree to indemnify the swap data repository and the Commission for any expenses
arising from litigation relating to the information provided under section
8.</text>
</paragraph></subsection><subsection id="H577F6A219136490D986041001AD50357"><enum>(e)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="H37EB5D778C604E1992825BF0798D091B"><enum>(1)</enum><header>In
general</header><text>Each swap data repository shall designate an individual
to serve as a chief compliance officer.</text>
</paragraph><paragraph id="H7388DD071A8A4AE7A888BD0904A70DFF"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="H4EEE6830A00B4B5EB99EC9BEFFD64E8B"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the swap data repository;</text>
</subparagraph><subparagraph id="H073BAB6EA45C4064B67D9CCF70F9E363"><enum>(B)</enum><text>review the
compliance of the swap data repository with respect to the requirements and
core principles described in this section;</text>
</subparagraph><subparagraph id="HDDA64858CB414D2A8570042114323E0B"><enum>(C)</enum><text>in consultation
with the board of the swap data repository, a body performing a function
similar to the board of the swap data repository, or the senior officer of the
swap data repository, resolve any conflicts of interest that may arise;</text>
</subparagraph><subparagraph id="H144C097AD54E4B6ABFF24DCA3CFAAA8E"><enum>(D)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="H42D584256F474B25BADB4DC4E21E2FC8"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</subparagraph><subparagraph id="HF61F61E7A6CB46CEA58D44480B9846D5"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="HCDDF1572DC5042D189039A953D81EFCE"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="H96F31A50B5AC4D659B2C0C72170A4A66"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="HE1552B23BE414004AEB0E5730DE619EE"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="H8FE0C3498526435D8D9BA8938742CFFE"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="H6383B4E86F9A43938B80DFEA4E6630AB"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="H0F0EC3ED648149DB9B90479313DA84EF"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="H2CB8999BB5814683B1E0E1669C46E3FC"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="H76B6289036CA4326AC64E042A26E71EC"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="H9E8645FD6B614AC8BFA8852B778A2EAA"><enum>(i)</enum><text>the compliance of
the swap data repository of the chief compliance officer with respect to this
Act (including regulations); and</text>
</clause><clause id="HD1B93E160A644DD19F14332F6805BB34"><enum>(ii)</enum><text>each policy and
procedure of the swap data repository of the chief compliance officer
(including the code of ethics and conflict of interest policies of the swap
data repository).</text>
</clause></subparagraph><subparagraph id="HE757B0F30C9B485782F3FDD94E62024D"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="H5ACBB68934E04AAB93F350CA8D9884EE"><enum>(i)</enum><text>accompany each
appropriate financial report of the swap data repository that is required to be
furnished to the Commission pursuant to this section; and</text>
</clause><clause id="HC022FD1AEF724C4E8F725B81F5A3A1E6"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HF29965A48FDF49668EB0988BBCEDF8BF"><enum>(f)</enum><header>Core principles
applicable To swap data repositories</header>
<paragraph commented="no" id="HAEEEBE99EB6148E9A1F6D823E4AD88E0"><enum>(1)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a swap data repository shall not—</text>
<subparagraph commented="no" id="HF43798156C9042A4B2B056A536242E91"><enum>(A)</enum><text>adopt any rule or
take any action that results in any unreasonable restraint of trade; or</text>
</subparagraph><subparagraph commented="no" id="H0883D391221148BBAE45CA3D878A9B0E"><enum>(B)</enum><text>impose any
material anticompetitive burden on the trading, clearing, or reporting of
transactions.</text>
</subparagraph></paragraph><paragraph commented="no" id="H01F3B0BDE32944EF85DD0C6D39BB96FF"><enum>(2)</enum><header>Governance
arrangements</header><text>Each swap data repository shall establish governance
arrangements that are transparent—</text>
<subparagraph commented="no" id="H8234104E41594AEFA4C5AA85033489BD"><enum>(A)</enum><text>to fulfill public
interest requirements; and</text>
</subparagraph><subparagraph commented="no" id="H9F46D6A13B6F4375AA310BC38DABC1C9"><enum>(B)</enum><text>to support the
objectives of the Federal Government, owners, and participants.</text>
</subparagraph></paragraph><paragraph commented="no" id="H10C176EB1C2A4DEF9AD8B6A122CC359C"><enum>(3)</enum><header>Conflicts of
interest</header><text>Each swap data repository shall—</text>
<subparagraph commented="no" id="HADB24CDEA73A41BBA007FDA2AFD7D145"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the swap data repository; and</text>
</subparagraph><subparagraph commented="no" id="H1CF13988143545138546AB004537A133"><enum>(B)</enum><text>establish a
process for resolving conflicts of interest described in subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="HC75E4482A8DE49789D61B273B0279501"><enum>(4)</enum><header>Additional
duties developed by Commission</header>
<subparagraph id="HBA597B2895D942EA88A5C8FA5FBF7DD7"><enum>(A)</enum><header>In
general</header><text>The Commission may develop 1 or more additional duties
applicable to swap data repositories.</text>
</subparagraph><subparagraph id="HA1242290DBB04746A5D73177026814F6"><enum>(B)</enum><header>Consideration of
evolving standards</header><text>In developing additional duties under
subparagraph (A), the Commission may take into consideration any evolving
standard of the United States or the international community.</text>
</subparagraph><subparagraph id="HB5C3C21B8DF24D09958890A27E9CD771"><enum>(C)</enum><header>Additional
duties for Commission designees</header><text>The Commission shall establish
additional duties for any registrant described in section 1a(48) in order to
minimize conflicts of interest, protect data, ensure compliance, and guarantee
the safety and security of the swap data repository.</text>
</subparagraph></paragraph></subsection><subsection id="H5CA5E52F1FFA468182BE58D1BF80ACD6"><enum>(g)</enum><header>Required
registration for swap data repositories</header><text display-inline="yes-display-inline">Any person that is required to be
registered as a swap data repository under this section shall register with the
Commission regardless of whether that person is also licensed as a bank or
registered with the Securities and Exchange Commission as a swap data
repository.</text>
</subsection><subsection id="H84FD98429F414D2FA5A33665C8B84D0A"><enum>(h)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB4F5924A6412497F96EAD9D0CC0D3F8A"><enum>729.</enum><header>Reporting and
recordkeeping</header><text display-inline="no-display-inline">The Commodity
Exchange Act is amended by inserting after section 4q (7 U.S.C. 6o–1) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H6718286147074AF5B2515E3FA12657E2" style="OLC">
<section id="HE9DB6FDA697B44DDAC929E76865ADE0A"><enum>4r.</enum><header>Reporting and
recordkeeping for uncleared swaps</header>
<subsection id="HD8A3890F09874FA8B3714A3E2E398BBF"><enum>(a)</enum><header>Required
reporting of swaps not accepted by any derivatives clearing
organization</header>
<paragraph id="H2E1FEA689B504EC1BE6D002DC4E604A9"><enum>(1)</enum><header>In
general</header><text>Each swap that is not accepted for clearing by any
derivatives clearing organization shall be reported to—</text>
<subparagraph id="HBA0BC8EC2A1448BEA1F816F963E39954"><enum>(A)</enum><text>a swap data
repository described in section 21; or</text>
</subparagraph><subparagraph id="HE6C21F9C973C4F9091B05710D751717D"><enum>(B)</enum><text>in the case in
which there is no swap data repository that would accept the swap, to the
Commission pursuant to this section within such time period as the Commission
may by rule or regulation prescribe.</text>
</subparagraph></paragraph><paragraph id="H72C93181F4E84051AF1F93E225AA4FDC"><enum>(2)</enum><header>Transition rule
for preenactment swaps</header>
<subparagraph id="H1C31597CD2514150BD2DBB2F657B4E0E"><enum>(A)</enum><header>Swaps entered
into before the date of enactment of the Wall Street Transparency and
Accountability Act of 2010</header><text>Each swap entered into before the date
of enactment of the <short-title>Wall Street Transparency
and Accountability Act of 2010</short-title>, the terms of which have not
expired as of the date of enactment of that Act, shall be reported to a
registered swap data repository or the Commission by a date that is not later
than—</text>
<clause id="H10B6B842BEBC4347940961D2750BF166"><enum>(i)</enum><text>30
days after issuance of the interim final rule; or</text>
</clause><clause id="H1C737FC752D446F581684312A36E93F8"><enum>(ii)</enum><text>such other period
as the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="H112EEDF0E94540D8BE6006874AAFCF95"><enum>(B)</enum><header>Commission
rulemaking</header><text>The Commission shall promulgate an interim final rule
within 90 days of the date of enactment of this section providing for the
reporting of each swap entered into before the date of enactment as referenced
in subparagraph (A).</text>
</subparagraph><subparagraph id="H0CB1D23DDDAB4A67BDEB2AE86A5F82FA"><enum>(C)</enum><header>Effective
date</header><text>The reporting provisions described in this section shall be
effective upon the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="H56CDB273F20C4D87A1E30B77D21AAD5F"><enum>(3)</enum><header>Reporting
obligations</header>
<subparagraph id="HC4D40113D3FB449CB4D38BD7517E023A"><enum>(A)</enum><header>Swaps in which
only 1 counterparty is a swap dealer or major swap
participant</header><text>With respect to a swap in which only 1 counterparty
is a swap dealer or major swap participant, the swap dealer or major swap
participant shall report the swap as required under paragraphs (1) and
(2).</text>
</subparagraph><subparagraph id="H1152D3BBC4644AEBBA03B22DBE0665E4"><enum>(B)</enum><header>Swaps in which 1
counterparty is a swap dealer and the other a major swap
participant</header><text>With respect to a swap in which 1 counterparty is a
swap dealer and the other a major swap participant, the swap dealer shall
report the swap as required under paragraphs (1) and (2).</text>
</subparagraph><subparagraph id="HB08F58A761C44DE2A69D523476901463"><enum>(C)</enum><header>Other
swaps</header><text>With respect to any other swap not described in
subparagraph (A) or (B), the counterparties to the swap shall select a
counterparty to report the swap as required under paragraphs (1) and
(2).</text>
</subparagraph></paragraph></subsection><subsection id="H28FEB644DDB04173BFBB3EE1973D4E04"><enum>(b)</enum><header>Duties of
certain individuals</header><text>Any individual or entity that enters into a
swap shall meet each requirement described in subsection (c) if the individual
or entity did not—</text>
<paragraph id="H1A8A5B6B2574460586227A913FBE8A56"><enum>(1)</enum><text>clear the swap in
accordance with section 2(h)(1); or</text>
</paragraph><paragraph id="H4484F70E09384732A064C4F450FE9FF8"><enum>(2)</enum><text>have the data
regarding the swap accepted by a swap data repository in accordance with rules
(including timeframes) adopted by the Commission under section 21.</text>
</paragraph></subsection><subsection id="HD7066279FA3D462BB9EBC25DA5DFBDC1"><enum>(c)</enum><header>Requirements</header><text>An
individual or entity described in subsection (b) shall—</text>
<paragraph id="HEFF6CAB514C84D08A0952DDC96E93184"><enum>(1)</enum><text>upon written
request from the Commission, provide reports regarding the swaps held by the
individual or entity to the Commission in such form and in such manner as the
Commission may request; and</text>
</paragraph><paragraph id="H162CF230693B48CDBC2D3971F3086967"><enum>(2)</enum><text>maintain books and
records pertaining to the swaps held by the individual or entity in such form,
in such manner, and for such period as the Commission may require, which shall
be open to inspection by—</text>
<subparagraph id="HD809D9BA457F4628A02F6B992302A85D"><enum>(A)</enum><text>any representative
of the Commission;</text>
</subparagraph><subparagraph id="H1E982789547B4C56B95BC1486B36CBB5"><enum>(B)</enum><text>an appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="H41B547CD4D9F44ADA4E8D45504A9A3DC"><enum>(C)</enum><text>the Securities and
Exchange Commission;</text>
</subparagraph><subparagraph id="H6D9537A8DCFB427AAD612C76EF429E42"><enum>(D)</enum><text>the Financial
Stability Oversight Council; and</text>
</subparagraph><subparagraph id="H6439CD6A798D4BF3A4BC834B3BF72BF4"><enum>(E)</enum><text>the Department of
Justice.</text>
</subparagraph></paragraph></subsection><subsection id="HD3E56195A6F147A7B38E8BC1A2E2A1DF"><enum>(d)</enum><header>Identical
data</header><text>In prescribing rules under this section, the Commission
shall require individuals and entities described in subsection (b) to submit to
the Commission a report that contains data that is not less comprehensive than
the data required to be collected by swap data repositories under section
21.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H50EEBF03696247679A98C66F63C1058D"><enum>730.</enum><header>Large swap
trader reporting</header><text display-inline="no-display-inline">The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by adding after section 4s (as
added by section 731) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7098E250DC094786AE6F0C9F5B329D17" style="OLC">
<section id="HF32038AFBDE3448B82847003E3F95F0D"><enum>4t.</enum><header>Large swap
trader reporting</header>
<subsection id="HC16DE081A869411DB4693B609117A860"><enum>(a)</enum><header>Prohibition</header>
<paragraph id="H865469FE9F4B4F6DAB3C58FACE7A35B7"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), it shall be unlawful
for any person to enter into any swap that the Commission determines to perform
a significant price discovery function with respect to registered entities
if—</text>
<subparagraph id="H5891324E85C244F09F90E06C8853B488"><enum>(A)</enum><text>the person
directly or indirectly enters into the swap during any 1 day in an amount equal
to or in excess of such amount as shall be established periodically by the
Commission; and</text>
</subparagraph><subparagraph id="H7283CC87EFE84F9DAAE3A9B402E96FBA"><enum>(B)</enum><text>the person
directly or indirectly has or obtains a position in the swap equal to or in
excess of such amount as shall be established periodically by the
Commission.</text>
</subparagraph></paragraph><paragraph id="HE2741CDAA9884C1BAD47D04631AC7578"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply if—</text>
<subparagraph id="HA581ACB1A2FF47378A1459DEF51E5B5D"><enum>(A)</enum><text>the person files
or causes to be filed with the properly designated officer of the Commission
such reports regarding any transactions or positions described in subparagraphs
(A) and (B) of paragraph (1) as the Commission may require by rule or
regulation; and</text>
</subparagraph><subparagraph id="H983DDC4B0F84471FA3C5B1319A87F55B"><enum>(B)</enum><text>in accordance with
the rules and regulations of the Commission, the person keeps books and records
of all such swaps and any transactions and positions in any related commodity
traded on or subject to the rules of any designated contract market or swap
execution facility, and of cash or spot transactions in, inventories of, and
purchase and sale commitments of, such a commodity.</text>
</subparagraph></paragraph></subsection><subsection id="H98CAE2AEE4E34C5FAC1C5D3095760233"><enum>(b)</enum><header>Requirements</header>
<paragraph id="HC7CC7A230680466992A9F7C04D482964"><enum>(1)</enum><header>In
general</header><text>Books and records described in subsection (a)(2)(B)
shall—</text>
<subparagraph id="H01588A62059F4CA69E5DA92053AFA8A3"><enum>(A)</enum><text>show such complete
details concerning all transactions and positions as the Commission may
prescribe by rule or regulation;</text>
</subparagraph><subparagraph id="H208F8E8A411F406B9C741BCC173A311E"><enum>(B)</enum><text>be open at all
times to inspection and examination by any representative of the Commission;
and</text>
</subparagraph><subparagraph id="H12C8BD008D7F43D0956D9881105BE46C"><enum>(C)</enum><text>be open at all
times to inspection and examination by the Securities and Exchange Commission,
to the extent such books and records relate to transactions in swaps (as that
term is defined in section 1a(47)(A)(v)), and consistent with the
confidentiality and disclosure requirements of section 8.</text>
</subparagraph></paragraph><paragraph id="H430086B83CFB460696E6ED5C76B7173C"><enum>(2)</enum><header>Jurisdiction</header><text>Nothing
in paragraph (1) shall affect the exclusive jurisdiction of the Commission to
prescribe recordkeeping and reporting requirements for large swap traders under
this section.</text>
</paragraph></subsection><subsection id="H370D95F28D1D4ACDBABC5BDA9FD2B4E1"><enum>(c)</enum><header>Applicability</header><text>For
purposes of this section, the swaps, futures, and cash or spot transactions and
positions of any person shall include the swaps, futures, and cash or spot
transactions and positions of any persons directly or indirectly controlled by
the person.</text>
</subsection><subsection id="HC32BEC40C8B647F59D975CDA91777A9C"><enum>(d)</enum><header>Significant
price discovery function</header><text>In making a determination as to whether
a swap performs or affects a significant price discovery function with respect
to registered entities, the Commission shall consider the factors described in
section
4a(a)(3).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6CCF8C9AF6B14BEAA5971A8057160EA1"><enum>731.</enum><header>Registration
and regulation of swap dealers and major swap participants</header><text display-inline="no-display-inline">The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is amended by inserting after section 4r (as added by section 729) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H829BADFD62D740898C28C305A2708FF3" style="OLC">
<section id="HEA67E1382CCC4184B9F50630C3A02F6E"><enum>4s.</enum><header>Registration and
regulation of swap dealers and major swap participants</header>
<subsection id="HE6445B26D05947DEBAAD6EDE463BF7F2"><enum>(a)</enum><header>Registration</header>
<paragraph id="H45DA7572B7D149269AC8476B2BE1412E"><enum>(1)</enum><header>Swap
dealers</header><text>It shall be unlawful for any person to act as a swap
dealer unless the person is registered as a swap dealer with the
Commission.</text>
</paragraph><paragraph id="H9CF903C894174749B14BDCFBC58B3400"><enum>(2)</enum><header>Major swap
participants</header><text>It shall be unlawful for any person to act as a
major swap participant unless the person is registered as a major swap
participant with the Commission.</text>
</paragraph></subsection><subsection id="H8F614B663C26411BB807706FCD63098A"><enum>(b)</enum><header>Requirements</header>
<paragraph id="H2D812260A9F74213938D0D11D9383C63"><enum>(1)</enum><header>In
general</header><text>A person shall register as a swap dealer or major swap
participant by filing a registration application with the Commission.</text>
</paragraph><paragraph id="H25CCC8060D214F19AA3D20DF4FF57B97"><enum>(2)</enum><header>Contents</header>
<subparagraph id="H5560F25E7F5243C3B74DF985C78A253B"><enum>(A)</enum><header>In
general</header><text>The application shall be made in such form and manner as
prescribed by the Commission, and shall contain such information, as the
Commission considers necessary concerning the business in which the applicant
is or will be engaged.</text>
</subparagraph><subparagraph id="HA3D624DF9A494293BCFA75AC0959F24B"><enum>(B)</enum><header>Continual
reporting</header><text>A person that is registered as a swap dealer or major
swap participant shall continue to submit to the Commission reports that
contain such information pertaining to the business of the person as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="H3B8445F2093340D0945C7EA5CD1B16B9"><enum>(3)</enum><header>Expiration</header><text>Each
registration under this section shall expire at such time as the Commission may
prescribe by rule or regulation.</text>
</paragraph><paragraph id="H32DBF4B92CD24DD19843B4BA76232B05"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (d) and (e), the Commission may prescribe rules
applicable to swap dealers and major swap participants, including rules that
limit the activities of swap dealers and major swap participants.</text>
</paragraph><paragraph id="H6D1F9504FE3549A0B9F1AAF4AA92021A"><enum>(5)</enum><header>Transition</header><text>Rules
under this section shall provide for the registration of swap dealers and major
swap participants not later than 1 year after the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>.</text>
</paragraph><paragraph id="H83B80F76373E456E90783CC7D6F1417D"><enum>(6)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order, it shall be unlawful for a swap dealer
or a major swap participant to permit any person associated with a swap dealer
or a major swap participant who is subject to a statutory disqualification to
effect or be involved in effecting swaps on behalf of the swap dealer or major
swap participant, if the swap dealer or major swap participant knew, or in the
exercise of reasonable care should have known, of the statutory
disqualification.</text>
</paragraph></subsection><subsection id="H425B10C8A71C4AC2A9FC639A695B9D63"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="H4503B514D18542E7AEB539A1131CFAF2"><enum>(1)</enum><header>Swap
dealer</header><text>Any person that is required to be registered as a swap
dealer under this section shall register with the Commission regardless of
whether the person also is a depository institution or is registered with the
Securities and Exchange Commission as a security-based swap dealer.</text>
</paragraph><paragraph id="H6BB32CCDE93A49E6BFCD52C77A4764C6"><enum>(2)</enum><header>Major swap
participant</header><text>Any person that is required to be registered as a
major swap participant under this section shall register with the Commission
regardless of whether the person also is a depository institution or is
registered with the Securities and Exchange Commission as a major
security-based swap participant.</text>
</paragraph></subsection><subsection id="H19AC60370E05499AA162BA039BED4D2F"><enum>(d)</enum><header>Rulemakings</header>
<paragraph id="H76B1E5E9123F4995840A4D94C3E707D5"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt rules for persons that are
registered as swap dealers or major swap participants under this
section.</text>
</paragraph><paragraph id="HC0A290A9710042D6BB682150ED5088AC"><enum>(2)</enum><header>Exception for
prudential requirements</header>
<subparagraph id="H217CB6056491497EB083B28BA8520700"><enum>(A)</enum><header>In
general</header><text>The Commission may not prescribe rules imposing
prudential requirements on swap dealers or major swap participants for which
there is a prudential regulator.</text>
</subparagraph><subparagraph id="H6C2C6B29513D46BEA1213DE0A5269240"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not limit the authority of the Commission to prescribe rules as
directed under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H1BCA2AE494A94B7999AF238AB30A44BE"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="HB5173CBDCEE348FDA1ABBBC52C1A1E28"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H7242B05BF28544E2BEABA90323FB1285"><enum>(A)</enum><header>Swap dealers and
major swap participants that are banks</header><text>Each registered swap
dealer and major swap participant for which there is a prudential regulator
shall meet such minimum capital requirements and minimum initial and variation
margin requirements as the prudential regulator shall by rule or regulation
prescribe under paragraph (2)(A).</text>
</subparagraph><subparagraph id="HF0EC6F6B3BB6455A91E8F93D8857E987"><enum>(B)</enum><header>Swap dealers and
major swap participants that are not banks</header><text>Each registered swap
dealer and major swap participant for which there is not a prudential regulator
shall meet such minimum capital requirements and minimum initial and variation
margin requirements as the Commission shall by rule or regulation prescribe
under paragraph (2)(B).</text>
</subparagraph></paragraph><paragraph id="H6C2758FF14B8404184121D44FBFD3654"><enum>(2)</enum><header>Rules</header>
<subparagraph id="H478D0725D0754090A3500C677D580BE1"><enum>(A)</enum><header>Swap dealers and
major swap participants that are banks</header><text>The prudential regulators,
in consultation with the Commission and the Securities and Exchange Commission,
shall jointly adopt rules for swap dealers and major swap participants, with
respect to their activities as a swap dealer or major swap participant, for
which there is a prudential regulator imposing—</text>
<clause id="H356B54CBBB37482FA608E292969D067D"><enum>(i)</enum><text>capital
requirements; and</text>
</clause><clause id="H1B19F548FC374640A7DAE5BDCEB66840"><enum>(ii)</enum><text>both initial and
variation margin requirements on all swaps that are not cleared by a registered
derivatives clearing organization.</text>
</clause></subparagraph><subparagraph id="HF2920009C992494FACA630A9A87493C4"><enum>(B)</enum><header>Swap dealers and
major swap participants that are not banks</header><text>The Commission shall
adopt rules for swap dealers and major swap participants, with respect to their
activities as a swap dealer or major swap participant, for which there is not a
prudential regulator imposing—</text>
<clause id="HAAAE0A0456B9495DAD30B540564458DC"><enum>(i)</enum><text>capital
requirements; and</text>
</clause><clause id="H3E5BBDA168694639A4BCB0E11A64C9B8"><enum>(ii)</enum><text>both initial and
variation margin requirements on all swaps that are not cleared by a registered
derivatives clearing organization.</text>
</clause></subparagraph><subparagraph id="H72E9E23905064625BAACAFD2EDDE0813"><enum>(C)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a swap dealer
or a major swap participant for a single type or single class or category of
swap or activities, the prudential regulator and the Commission shall take into
account the risks associated with other types of swaps or classes of swaps or
categories of swaps engaged in and the other activities conducted by that
person that are not otherwise subject to regulation applicable to that person
by virtue of the status of the person as a swap dealer or a major swap
participant.</text>
</subparagraph></paragraph><paragraph id="H86C27AE100DB4C82902A203D33588108"><enum>(3)</enum><header>Standards for
capital and margin</header>
<subparagraph id="HF08F68B6993B4273B0FE586209117393"><enum>(A)</enum><header>In
general</header><text>To offset the greater risk to the swap dealer or major
swap participant and the financial system arising from the use of swaps that
are not cleared, the requirements imposed under paragraph (2) shall—</text>
<clause id="HAD6EE192FBCF4D1487332CA04B03BFD8"><enum>(i)</enum><text>help ensure the
safety and soundness of the swap dealer or major swap participant; and</text>
</clause><clause id="HB51E9FAA55E5492A9E346BD6CAF143B9"><enum>(ii)</enum><text>be appropriate
for the risk associated with the non-cleared swaps held as a swap dealer or
major swap participant.</text>
</clause></subparagraph><subparagraph id="HA6495195D0434C7585D0B966D0B4574B"><enum>(B)</enum><header>Rule of
construction</header>
<clause id="H88DDA0A6EF504AF6ABCD5D978D6F394F"><enum>(i)</enum><header>In
general</header><text>Nothing in this section shall limit, or be construed to
limit, the authority—</text>
<subclause id="H3837524BAB53474AB994FC58AC92C3BD"><enum>(I)</enum><text>of the Commission
to set financial responsibility rules for a futures commission merchant or
introducing broker registered pursuant to section 4f(a) (except for section
4f(a)(3)) in accordance with section 4f(b); or</text>
</subclause><subclause id="H329930696B6246019E8D067AFAD6A131"><enum>(II)</enum><text>of the Securities
and Exchange Commission to set financial responsibility rules for a broker or
dealer registered pursuant to section 15(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78o(b)) (except for section 15(b)(11) of that Act (15 U.S.C.
78o(b)(11)) in accordance with section 15(c)(3) of the Securities Exchange Act
of 1934 (15 U.S.C. 78o(c)(3)).</text>
</subclause></clause><clause id="HCE2DEC3AE2874AF59BF2E6C0B414B0E0"><enum>(ii)</enum><header>Futures
commission merchants and other dealers</header><text>A futures commission
merchant, introducing broker, broker, or dealer shall maintain sufficient
capital to comply with the stricter of any applicable capital requirements to
which such futures commission merchant, introducing broker, broker, or dealer
is subject to under this Act or the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.).</text>
</clause></subparagraph><subparagraph id="H560485F2764344788E050CB228272782"><enum>(C)</enum><header>Margin
requirements</header><text>In prescribing margin requirements under this
subsection, the prudential regulator with respect to swap dealers and major
swap participants for which it is the prudential regulator and the Commission
with respect to swap dealers and major swap participants for which there is no
prudential regulator shall permit the use of noncash collateral, as the
regulator or the Commission determines to be consistent with—</text>
<clause id="HADA487ED6AB54A1FB4FB975DDE85937C"><enum>(i)</enum><text>preserving the
financial integrity of markets trading swaps; and</text>
</clause><clause id="HB07F50F72A484284B7F809726AA5E044"><enum>(ii)</enum><text>preserving the
stability of the United States financial system.</text>
</clause></subparagraph><subparagraph id="H3FCD16AE74B746C8B9AC75EB33EFDD93"><enum>(D)</enum><header>Comparability of
capital and margin requirements</header>
<clause id="H09C2707285524914BFA531B0547D0537"><enum>(i)</enum><header>In
general</header><text>The prudential regulators, the Commission, and the
Securities and Exchange Commission shall periodically (but not less frequently
than annually) consult on minimum capital requirements and minimum initial and
variation margin requirements.</text>
</clause><clause id="H7532C952C16D414490271F2DECBBC065"><enum>(ii)</enum><header>Comparability</header><text>The
entities described in clause (i) shall, to the maximum extent practicable,
establish and maintain comparable minimum capital requirements and minimum
initial and variation margin requirements, including the use of non cash
collateral, for—</text>
<subclause id="H8F0EA936877E4C8D8FABBFB611D7D936"><enum>(I)</enum><text>swap dealers;
and</text>
</subclause><subclause id="HCF01980B83054D0BAE4DD8A2E821FAAB"><enum>(II)</enum><text>major swap
participants.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H65FC6FF5060A4AAF9A80D28B564F2899"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="H8BB19F4A8AAD4F9AB8A6E5072B92B94D"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap
participant—</text>
<subparagraph id="HC3CE7B5B3BD54BE48A294BB5F84CE9E2"><enum>(A)</enum><text>shall make such
reports as are required by the Commission by rule or regulation regarding the
transactions and positions and financial condition of the registered swap
dealer or major swap participant;</text>
</subparagraph><subparagraph id="H1259F6A543F840E5B318409704D66DC3"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H735B662934944FE8A5A4A5B8034089EB"><enum>(i)</enum><text>for which there is a
prudential regulator, shall keep books and records of all activities related to
the business as a swap dealer or major swap participant in such form and manner
and for such period as may be prescribed by the Commission by rule or
regulation; and</text>
</clause><clause id="HABA0DCCD8D154C95A5B1C39D996F1407" indent="up1"><enum>(ii)</enum><text>for which there is no prudential
regulator, shall keep books and records in such form and manner and for such
period as may be prescribed by the Commission by rule or regulation;</text>
</clause></subparagraph><subparagraph id="H00713DD9F8D94284B6C4973D136D4F5D"><enum>(C)</enum><text>shall keep books
and records described in subparagraph (B) open to inspection and examination by
any representative of the Commission; and</text>
</subparagraph><subparagraph id="HADD96684B3E74692A382E273237589C5"><enum>(D)</enum><text>shall keep any
such books and records relating to swaps defined in section 1a(47)(A)(v) open
to inspection and examination by the Securities and Exchange Commission.</text>
</subparagraph></paragraph><paragraph id="HE48FDB5F15F1406E96CFF5FD5ACFEB28"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing reporting and recordkeeping for swap
dealers and major swap participants.</text>
</paragraph></subsection><subsection id="H0FCA66D3FAD7404B88B5E8D3DD4A499F"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="H5CFD37A29FA2499089451C77A9CACB7D"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records of the swaps of the registered swap dealer
and major swap participant and all related records (including related cash or
forward transactions) and recorded communications, including electronic mail,
instant messages, and recordings of telephone calls, for such period as may be
required by the Commission by rule or regulation.</text>
</paragraph><paragraph id="HDFB9F8C1DEFA4EE0A78B14013D9F565C"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall require by rule or regulation.</text>
</paragraph><paragraph id="H86FC5EE5091D47B88A4AF26C4FAB0D2B"><enum>(3)</enum><header>Counterparty
records</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records for each counterparty in a manner and form
that is identifiable with each swap transaction.</text>
</paragraph><paragraph id="H0ACE64FAA3D449CF89780B8AA80F8387"><enum>(4)</enum><header>Audit
trail</header><text>Each registered swap dealer and major swap participant
shall maintain a complete audit trail for conducting comprehensive and accurate
trade reconstructions.</text>
</paragraph><paragraph id="HD078827DEDE64C59B2EB17AD808E2EF0"><enum>(5)</enum><header>Rules</header><text>The
Commission shall adopt rules governing daily trading records for swap dealers
and major swap participants.</text>
</paragraph></subsection><subsection id="H9FE2F63009DD41558049338BF33C145E"><enum>(h)</enum><header>Business conduct
standards</header>
<paragraph id="H37B66894983E41E98A344474EDB899FD"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with such business conduct standards as prescribed in paragraph
(3) and as may be prescribed by the Commission by rule or regulation that
relate to—</text>
<subparagraph id="HA475C935D909436A8A82426909DD693E"><enum>(A)</enum><text>fraud,
manipulation, and other abusive practices involving swaps (including swaps that
are offered but not entered into);</text>
</subparagraph><subparagraph id="H395342137D9A4951B8C08B3DC35860B0"><enum>(B)</enum><text>diligent
supervision of the business of the registered swap dealer and major swap
participant;</text>
</subparagraph><subparagraph id="H52F6DF58C43D443E905D36BB1544EC50"><enum>(C)</enum><text>adherence to all
applicable position limits; and</text>
</subparagraph><subparagraph id="HD7FF90E1E0824BC98AA1C77194403DEE"><enum>(D)</enum><text>such other matters
as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="H73EFF0743DD7403CA5CF13561352B289"><enum>(2)</enum><header>Responsibilities
with respect to special entities</header>
<subparagraph id="H5AC862779F5F4C1E962EE75CAF85FC4E"><enum>(A)</enum><header>Advising special
entities</header><text>A swap dealer or major swap participant that acts as an
advisor to a special entity regarding a swap shall comply with the requirements
of subparagraph (4) with respect to such Special Entity.</text>
</subparagraph><subparagraph id="HB56F7D716CEB4C2D9D518DDE3E0C0A1F"><enum>(B)</enum><header>Entering of
swaps with respect to special entities</header><text>A swap dealer that enters
into or offers to enter into swap with a Special Entity shall comply with the
requirements of subparagraph (5) with respect to such Special Entity.</text>
</subparagraph><subparagraph id="HDD612E4500694E3C8B22620342DECBAD"><enum>(C)</enum><header>Special entity
defined</header><text>For purposes of this subsection, the term <term>special
entity</term> means—</text>
<clause id="HE953D92FBA4D43DF8C0E7275C3680106"><enum>(i)</enum><text>a
Federal agency;</text>
</clause><clause id="H98CDC596414A45D8BFA11E16FEE9AD2D"><enum>(ii)</enum><text>a
State, State agency, city, county, municipality, or other political subdivision
of a State;</text>
</clause><clause id="HCC714DFD7BAB48858995C176CC46B0C0"><enum>(iii)</enum><text>any employee
benefit plan, as defined in section 3 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002);</text>
</clause><clause id="HA13399AAB53145668C2770826E46EE68"><enum>(iv)</enum><text>any governmental
plan, as defined in section 3 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002); or</text>
</clause><clause id="H27E6FBE75EDA4C72A252B9CC49F9E149"><enum>(v)</enum><text>any endowment,
including an endowment that is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986.</text>
</clause></subparagraph></paragraph><paragraph id="HBDFD5AD46A2F4606B974FF307B6E8539"><enum>(3)</enum><header>Business conduct
requirements</header><text>Business conduct requirements adopted by the
Commission shall—</text>
<subparagraph id="H08034F2C866244D1856BF437DCFBB8F5"><enum>(A)</enum><text>establish a duty
for a swap dealer or major swap participant to verify that any counterparty
meets the eligibility standards for an eligible contract participant;</text>
</subparagraph><subparagraph id="HB63B7BCBDBFF45ABB5B40A7142429B12"><enum>(B)</enum><text>require disclosure
by the swap dealer or major swap participant to any counterparty to the
transaction (other than a swap dealer, major swap participant, security-based
swap dealer, or major security-based swap participant) of—</text>
<clause id="HA3FF661818BF46C3AF668E5DB1FD4ABA"><enum>(i)</enum><text>information about
the material risks and characteristics of the swap;</text>
</clause><clause id="HB3447C0CA4A5403ABB1613794A12A770"><enum>(ii)</enum><text>any material
incentives or conflicts of interest that the swap dealer or major swap
participant may have in connection with the swap; and</text>
</clause><clause id="H06D8336C4B5C47BDA448260742D8C1AD"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H105A00CF76B24C07B71B43492ACD1626"><enum>(I)</enum><text>for cleared swaps, upon
the request of the counterparty, receipt of the daily mark of the transaction
from the appropriate derivatives clearing organization; and</text>
</subclause><subclause id="HC0C6AF8192284C9F8CD308D600C1F30F" indent="up1"><enum>(II)</enum><text>for uncleared swaps, receipt of the
daily mark of the transaction from the swap dealer or the major swap
participant;</text>
</subclause></clause></subparagraph><subparagraph id="HFB1E38B165BC451D9A38BC76E8AA5DB7"><enum>(C)</enum><text>establish a duty
for a swap dealer or major swap participant to communicate in a fair and
balanced manner based on principles of fair dealing and good faith; and</text>
</subparagraph><subparagraph id="HA16F140C3ADD4C23B495E7F0D3260F0E"><enum>(D)</enum><text>establish such
other standards and requirements as the Commission may determine are
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="H4ECBCD16403B433996D391F9F98A5C0D"><enum>(4)</enum><header>Special
requirements for swap dealers acting as advisors</header>
<subparagraph id="HDD576AC3104B40489C628635FF95A2B7"><enum>(A)</enum><header>In
general</header><text>It shall be unlawful for a swap dealer or major swap
participant—</text>
<clause id="H35DCDE7D9E04414C8C2A8E269D55ADFF"><enum>(i)</enum><text>to
employ any device, scheme, or artifice to defraud any Special Entity or
prospective customer who is a Special Entity;</text>
</clause><clause id="HEDD5FCC70A174643B4B89BB274049924"><enum>(ii)</enum><text>to engage in any
transaction, practice, or course of business that operates as a fraud or deceit
on any Special Entity or prospective customer who is a Special Entity;
or</text>
</clause><clause id="H47DCEC650FD948C9962761845B725EE8"><enum>(iii)</enum><text>to engage in any
act, practice, or course of business that is fraudulent, deceptive or
manipulative.</text>
</clause></subparagraph><subparagraph id="HDE754C68375F4EBFABA4C57495E1601C"><enum>(B)</enum><header>Duty</header><text>Any
swap dealer that acts as an advisor to a Special Entity shall have a duty to
act in the best interests of the Special Entity.</text>
</subparagraph><subparagraph id="H918FDE023C3842068E3057735C0DE107"><enum>(C)</enum><header>Reasonable
efforts</header><text>Any swap dealer that acts as an advisor to a Special
Entity shall make reasonable efforts to obtain such information as is necessary
to make a reasonable determination that any swap recommended by the swap dealer
is in the best interests of the Special Entity, including information relating
to—</text>
<clause id="H98111ACFC882425DBF5C631905914A92"><enum>(i)</enum><text>the financial
status of the Special Entity;</text>
</clause><clause id="H97DEE6FC424143D9B38D8012D14A9206"><enum>(ii)</enum><text>the tax status of
the Special Entity;</text>
</clause><clause id="H8CEDC63B8047413B927A97AC7A3B5A59"><enum>(iii)</enum><text>the investment
or financing objectives of the Special Entity; and</text>
</clause><clause id="HB626CBC489D34691B4D8C9C75E3E8D51"><enum>(iv)</enum><text>any other
information that the Commission may prescribe by rule or regulation.</text>
</clause></subparagraph></paragraph><paragraph id="HE4AD1D1D911649E0ACE82AD4C105435E"><enum>(5)</enum><header>Special
requirements for swap dealers as counterparties to special entities</header>
<subparagraph id="HD26B8D7638C04EA1B57E333BDB196088"><enum>(A)</enum><text>Any swap dealer or
major swap participant that offers to enter or enters into a swap with a
Special Entity shall—</text>
<clause id="HC44CDB8ADF4A4ADAB00914797BE6DC60"><enum>(i)</enum><text>comply with any
duty established by the Commission for a swap dealer or major swap participant,
with respect to a counterparty that is an eligible contract participant within
the meaning of subclause (I) or (II) of clause (vii) of section 1a(18) of this
Act, that requires the swap dealer or major swap participant to have a
reasonable basis to believe that the counterparty that is a Special Entity has
an independent representative that—</text>
<subclause id="H817E6BB5CFA4442DAC8FBA2090F61878"><enum>(I)</enum><text>has sufficient
knowledge to evaluate the transaction and risks;</text>
</subclause><subclause id="H7A570A7268034D32989C99867A03628E"><enum>(II)</enum><text>is not subject to
a statutory disqualification;</text>
</subclause><subclause id="H6CE4583F77AB464297DE29F4E99DEE8A"><enum>(III)</enum><text>is independent
of the swap dealer or major swap participant;</text>
</subclause><subclause id="HEADC30C2AD6A48A3BBCDCF5B635D816A"><enum>(IV)</enum><text>undertakes a duty
to act in the best interests of the counterparty it represents;</text>
</subclause><subclause id="H1916C965AC9C4482B8F395DB726413B4"><enum>(V)</enum><text>makes appropriate
disclosures;</text>
</subclause><subclause id="HD2D33B0833094A468AB29469E79678EF"><enum>(VI)</enum><text>will provide
written representations to the Special Entity regarding fair pricing and the
appropriateness of the transaction; and</text>
</subclause><subclause id="H5605D2A6B2664AD6B19662C43660E20C"><enum>(VII)</enum><text>in the case of
employee benefit plans subject to the Employee Retirement Income Security act
of 1974, is a fiduciary as defined in section 3 of that Act (29 U.S.C. 1002);
and</text>
</subclause></clause><clause id="HA0CE38C1185D4A05BDBF0E6B265B68E9"><enum>(ii)</enum><text>before the
initiation of the transaction, disclose to the Special Entity in writing the
capacity in which the swap dealer is acting; and</text>
</clause></subparagraph><subparagraph id="HF5F3F3973FAF4A578BE77F5AD4B97B7A"><enum>(B)</enum><text>the Commission may
establish such other standards and requirements as the Commission may determine
are appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="HB757CA670A014729BB29752E276E909B"><enum>(6)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing business
conduct standards for swap dealers and major swap participants.</text>
</paragraph><paragraph id="HABD95E47EE5A40EFAAF2C01615249D8A"><enum>(7)</enum><header>Applicability</header><text>This
section shall not apply with respect to a transaction that is—</text>
<subparagraph id="HE17937D2EECE48D4AFBE1F3075E93A55"><enum>(A)</enum><text>initiated by a
Special Entity on an exchange or swap execution facility; and</text>
</subparagraph><subparagraph id="H7B8D1AB3D78B4F379170215E06AB6443"><enum>(B)</enum><text>one in which the
swap dealer or major swap participant does not know the identity of the
counterparty to the transaction.</text>
</subparagraph></paragraph></subsection><subsection id="HA5BEDF16DBC146E885384B6B8B9D74B1"><enum>(i)</enum><header>Documentation
standards</header>
<paragraph id="H404C9744F4814413A3DAB1D7435F497B"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with such standards as may be prescribed by the Commission by
rule or regulation that relate to timely and accurate confirmation, processing,
netting, documentation, and valuation of all swaps.</text>
</paragraph><paragraph id="HEC45368E9DC849F894C6F999D15343B1"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing documentation standards for swap dealers
and major swap participants.</text>
</paragraph></subsection><subsection id="H8FD3D6FA294F4627B7E85FD5E45E74A8"><enum>(j)</enum><header>Duties</header><text display-inline="yes-display-inline">Each registered swap dealer and major swap
participant at all times shall comply with the following requirements:</text>
<paragraph id="HFA5CAA30AE6643808340B379CB80AA4B"><enum>(1)</enum><header>Monitoring of
trading</header><text>The swap dealer or major swap participant shall monitor
its trading in swaps to prevent violations of applicable position
limits.</text>
</paragraph><paragraph id="HA5059A62BD2B4EED93D3B5CCA460B077"><enum>(2)</enum><header>Risk management
procedures</header><text>The swap dealer or major swap participant shall
establish robust and professional risk management systems adequate for managing
the day-to-day business of the swap dealer or major swap participant.</text>
</paragraph><paragraph id="H4D9D32D2631A48CA887D2992F80E5F4A"><enum>(3)</enum><header>Disclosure of
general information</header><text>The swap dealer or major swap participant
shall disclose to the Commission and to the prudential regulator for the swap
dealer or major swap participant, as applicable, information concerning—</text>
<subparagraph id="H2262B5D2102D4254856E7BC7F02C8B11"><enum>(A)</enum><text>terms and
conditions of its swaps;</text>
</subparagraph><subparagraph id="H02E69ADC5E34430FAD33F72EA0442E42"><enum>(B)</enum><text>swap trading
operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="H7C03DCBE91B14DFA985C795041E02E54"><enum>(C)</enum><text>financial
integrity protections relating to swaps; and</text>
</subparagraph><subparagraph id="H1DE649A406B740AD82D3CA7C563A0250"><enum>(D)</enum><text>other information
relevant to its trading in swaps.</text>
</subparagraph></paragraph><paragraph id="H2300508B45784F66BAD8F9F2F9290C03"><enum>(4)</enum><header>Ability to
obtain information</header><text>The swap dealer or major swap participant
shall—</text>
<subparagraph id="H59F5E180091D44A29812EE0AFBE49D26"><enum>(A)</enum><text>establish and
enforce internal systems and procedures to obtain any necessary information to
perform any of the functions described in this section; and</text>
</subparagraph><subparagraph id="H50F8EBC0DA934819901F341A343145CD"><enum>(B)</enum><text>provide the
information to the Commission and to the prudential regulator for the swap
dealer or major swap participant, as applicable, on request.</text>
</subparagraph></paragraph><paragraph id="H55A8859B4265459C87CBE59B41F135A7"><enum>(5)</enum><header>Conflicts of
interest</header><text>The swap dealer and major swap participant shall
implement conflict-of-interest systems and procedures that—</text>
<subparagraph id="H09B47B2104FF4300B16304CC66232E48"><enum>(A)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any commodity or swap or acting in a role of providing clearing activities
or making determinations as to accepting clearing customers are separated by
appropriate informational partitions within the firm from the review, pressure,
or oversight of persons whose involvement in pricing, trading, or clearing
activities might potentially bias their judgment or supervision and contravene
the core principles of open access and the business conduct standards described
in this Act; and</text>
</subparagraph><subparagraph id="HAD19C9C42E90489EA8DB44CA6D61D6BB"><enum>(B)</enum><text>address such other
issues as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="HBB8F34DD1FF34386AFDA73A1AD3E0DDA"><enum>(6)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, a swap dealer or major swap participant shall not—</text>
<subparagraph id="HED71EA147B474E00A56335E914636E45"><enum>(A)</enum><text>adopt any process
or take any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="H0398F136F0CB447B8E8F9028570AA721"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="H728292D9FC0445F5A62086EBBC954687"><enum>(7)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing duties of swap
dealers and major swap participants.</text>
</paragraph></subsection><subsection id="H022D26FC85934E6EAD2131D200A9878E"><enum>(k)</enum><header>Designation of
Chief Compliance Officer</header>
<paragraph id="H3468ECD16ECF43F89B4130E07EB82A24"><enum>(1)</enum><header>In
general</header><text>Each swap dealer and major swap participant shall
designate an individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="H341A92F1C07F400E9769FF0867ACF323"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="H9B0159D5A0A74DD19E0D7554CA468AE1"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the swap dealer or major swap
participant;</text>
</subparagraph><subparagraph id="H0D44A1241B9F4A139A0525A3A7174222"><enum>(B)</enum><text>review the
compliance of the swap dealer or major swap participant with respect to the
swap dealer and major swap participant requirements described in this
section;</text>
</subparagraph><subparagraph id="H2A04146C362A4A32A429D33F5AA10218"><enum>(C)</enum><text>in consultation
with the board of directors, a body performing a function similar to the board,
or the senior officer of the organization, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="HA35738F07D1F479F8A5F87B860F7CB12"><enum>(D)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="H007268D936A24C0DB81C4935CC5C55B5"><enum>(E)</enum><text>ensure compliance
with this Act (including regulations) relating to swaps, including each rule
prescribed by the Commission under this section;</text>
</subparagraph><subparagraph id="H731F3A877FB44E99B7A79894AB9CF003"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="H3D150977BC9341D288201AA88BE445DB"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="H31BF46A1CA88408DA02253E96B554A34"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="H99C0C03933284899886CEA70A149AF02"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="H72B1150292814F779DFFE38C7C6FDA1D"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="H0D88BA4A494541E2B80031AB25FE1A8D"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="H8211C494C8BC4543B0B88E9FAFD5FFA0"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="H668BD773CBEA4F77BFB6F11867033930"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="H22639A0184B74B9FB3F74F2738CE50AF"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="H24953A385F71491585E388C1E65B6D69"><enum>(i)</enum><text>the compliance of
the swap dealer or major swap participant with respect to this Act (including
regulations); and</text>
</clause><clause id="H97F7F6E965C84B2F8A586195126DF01C"><enum>(ii)</enum><text>each policy and
procedure of the swap dealer or major swap participant of the chief compliance
officer (including the code of ethics and conflict of interest
policies).</text>
</clause></subparagraph><subparagraph id="HC5A281C180A44264B496C08A8DCA90C6"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="H44AB65EE363543F6A8C5FD0F644E58C3"><enum>(i)</enum><text>accompany each
appropriate financial report of the swap dealer or major swap participant that
is required to be furnished to the Commission pursuant to this section;
and</text>
</clause><clause id="H39BDE806EA0D4A08BD077FED920FD9E6"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9CC5F4E462C54C3A979F48FBA4DF9215"><enum>732.</enum><header>Conflicts of
interest</header><text display-inline="no-display-inline">Section 4d of the
Commodity Exchange Act (7 U.S.C. 6d) is amended—</text>
<paragraph id="H4C946E1497F04866849C4A12413F53B1"><enum>(1)</enum><text>by redesignating
subsection (c) as subsection (e); and</text>
</paragraph><paragraph id="H247173BDBDF64100AF5AEF432C98AF3D"><enum>(2)</enum><text>by inserting after
subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="H96F72420B1D64CDF8F01AF57112B15EE" style="OLC">
<subsection id="H5A1FEFE9C35143A095AF1F427464F180"><enum>(c)</enum><header>Conflicts of
interest</header><text>The Commission shall require that futures commission
merchants and introducing brokers implement conflict-of-interest systems and
procedures that—</text>
<paragraph id="HE1CE66E12C55439BB7DC9D9DC9C56F71"><enum>(1)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any commodity are separated by appropriate informational partitions within
the firm from the review, pressure, or oversight of persons whose involvement
in trading or clearing activities might potentially bias the judgment or
supervision of the persons; and</text>
</paragraph><paragraph id="HC5C935058E2E4A498C99A31B7BCCD098"><enum>(2)</enum><text>address such other
issues as the Commission determines to be appropriate.</text>
</paragraph></subsection><subsection id="HAF2F3CBAACAC4F139FEB18F448D258F0"><enum>(d)</enum><header>Designation of
Chief Compliance Officer</header><text>Each futures commission merchant shall
designate an individual to serve as its Chief Compliance Officer and perform
such duties and responsibilities as shall be set forth in regulations to be
adopted by the Commission or rules to be adopted by a futures association
registered under section
17.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HAB8A608DA9414D03AC39F5D43AC42025"><enum>733.</enum><header>Swap execution
facilities</header><text display-inline="no-display-inline">The Commodity
Exchange Act is amended by inserting after section 5g (7 U.S.C. 7b–2) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H063187C329574289BE1D7AEC41BC4ACB" style="OLC">
<section id="H4E3EFF1CE224499B9D281E1A33DD504D"><enum>5h.</enum><header>Swap execution
facilities</header>
<subsection id="H8ABBABAE3A3D4DDE9B7C9B14327ADB33"><enum>(a)</enum><header>Registration</header>
<paragraph id="H1647AD2D365A4DC885B50E51CE681B99"><enum>(1)</enum><header>In
general</header><text>No person may operate a facility for the trading or
processing of swaps unless the facility is registered as a swap execution
facility or as a designated contract market under this section.</text>
</paragraph><paragraph id="H9181BA418D4945F0ACF5AE6FEA6AC4B7"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is registered as a swap execution
facility under this section shall register with the Commission regardless of
whether the person also is registered with the Securities and Exchange
Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="H87E66AD3928A4D2D842CD3F08556B44F"><enum>(b)</enum><header>Trading and
trade processing</header>
<paragraph id="H8B0350F02C554390BF3500F70EDB2437"><enum>(1)</enum><header>In
general</header><text>Except as specified in paragraph (2), a swap execution
facility that is registered under subsection (a) may—</text>
<subparagraph id="H3E9E3231836341AA9C3FB12404A0B326"><enum>(A)</enum><text>make available for
trading any swap; and</text>
</subparagraph><subparagraph id="H7DDA7EB3C6514EA89A78109065E0136B"><enum>(B)</enum><text>facilitate trade
processing of any swap.</text>
</subparagraph></paragraph><paragraph id="H611DD76B3B9F4DB1A09D3CDFD1A7AAFA"><enum>(2)</enum><header>Agricultural
swaps</header><text>A swap execution facility may not list for trading or
confirm the execution of any swap in an agricultural commodity (as defined by
the Commission) except pursuant to a rule or regulation of the Commission
allowing the swap under such terms and conditions as the Commission shall
prescribe.</text>
</paragraph></subsection><subsection id="H06D06B5ED330449193E2CC8278CDD382"><enum>(c)</enum><header>Identification
of facility used To trade swaps by contract markets</header><text>A board of
trade that operates a contract market shall, to the extent that the board of
trade also operates a swap execution facility and uses the same electronic
trade execution system for listing and executing trades of swaps on or through
the contract market and the swap execution facility, identify whether the
electronic trading of such swaps is taking place on or through the contract
market or the swap execution facility.</text>
</subsection><subsection id="H681F1EED92BB4216BBF7C14CB18261FC"><enum>(d)</enum><header>Rule-writing</header>
<paragraph id="H3694A226C1124E6D9207D215826C0B79"><enum>(1)</enum><text>The Securities and
Exchange Commission and Commodity Futures Trading Commission may promulgate
rules defining the universe of swaps that can be executed on a swap execution
facility. These rules shall take into account the price and nonprice
requirements of the counterparties to a swap and the goal of this section as
set forth in subsection (e).</text>
</paragraph><paragraph id="H7A130588BA974711A4BA8A442735C9E6"><enum>(2)</enum><text>For all swaps that
are not required to be executed through a swap execution facility as defined in
paragraph (1), such trades may be executed through any other available means of
interstate commerce.</text>
</paragraph><paragraph id="H5D72B8BD4B8B4D208CE37104497F3103"><enum>(3)</enum><text>The Securities and
Exchange Commission and Commodity Futures Trading Commission shall update these
rules as necessary to account for technological and other innovation.</text>
</paragraph></subsection><subsection id="H1635522B998649758F26C4732F47809F"><enum>(e)</enum><header>Rule of
construction</header><text>The goal of this section is to promote the trading
of swaps on swap execution facilities and to promote pre-trade price
transparency in the swaps market.</text>
</subsection><subsection id="H477F883983E24FC2A55368739999411F"><enum>(f)</enum><header>Core principles
for swap execution facilities</header>
<paragraph id="HA9BA95D894074C2D900106C270E81D5E"><enum>(1)</enum><header>Compliance with
core principles</header>
<subparagraph id="H23FDD00104864293A90E3C1E447B0DEC"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a swap
execution facility, the swap execution facility shall comply with—</text>
<clause id="H187996CD2A2345CFAEFA62342CBBCD35"><enum>(i)</enum><text>the core
principles described in this subsection; and</text>
</clause><clause id="HFB7BCAA54E7C4EB4A2A05C3A5C2F5AD3"><enum>(ii)</enum><text>any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</clause></subparagraph><subparagraph id="H12E15D0D2FA94F2285B574843AF9569F"><enum>(B)</enum><header>Reasonable
discretion of swap execution facility</header><text>Unless otherwise determined
by the Commission by rule or regulation, a swap execution facility described in
subparagraph (A) shall have reasonable discretion in establishing the manner in
which the swap execution facility complies with the core principles described
in this subsection.</text>
</subparagraph></paragraph><paragraph id="H378326D7094E49A3936C52631514A1BC"><enum>(2)</enum><header>Compliance with
rules</header><text>A swap execution facility shall—</text>
<subparagraph id="H21B9FE84AAC14F3982A08E10D59FD2BE"><enum>(A)</enum><text>establish and
enforce compliance with any rule of the swap execution facility,
including—</text>
<clause id="H9B90A40AB892406E89ABF91007C3D384"><enum>(i)</enum><text>the terms and
conditions of the swaps traded or processed on or through the swap execution
facility; and</text>
</clause><clause id="H468C7641942B46EB9127DF8C47FF97D4"><enum>(ii)</enum><text>any limitation on
access to the swap execution facility;</text>
</clause></subparagraph><subparagraph id="HD43581DB3AA7458085B98FC07C36FE89"><enum>(B)</enum><text>establish and
enforce trading, trade processing, and participation rules that will deter
abuses and have the capacity to detect, investigate, and enforce those rules,
including means—</text>
<clause id="H5A6020D7C65344B69759268A0AE3F1A6"><enum>(i)</enum><text>to
provide market participants with impartial access to the market; and</text>
</clause><clause id="H44CE4C7278B34B03AF92E46061203FAB"><enum>(ii)</enum><text>to capture
information that may be used in establishing whether rule violations have
occurred;</text>
</clause></subparagraph><subparagraph id="HFC5CBABA0FA84E0FAB81E17D11ED7AF0"><enum>(C)</enum><text>establish rules
governing the operation of the facility, including rules specifying trading
procedures to be used in entering and executing orders traded or posted on the
facility, including block trades; and</text>
</subparagraph><subparagraph id="HA8B37966012C4B45B9767C3E1682DFA3"><enum>(D)</enum><text>provide by its
rules that when a swap dealer or major swap participant enters into or
facilitates a swap that is subject to the mandatory clearing requirement of
section 2(h), the swap dealer or major swap participant shall be responsible
for compliance with the mandatory trading requirement under section
2(h)(8).</text>
</subparagraph></paragraph><paragraph id="HB482F915381B4843AF66E49A5B218DC2"><enum>(3)</enum><header>Swaps not
readily susceptible to manipulation</header><text>The swap execution facility
shall permit trading only in swaps that are not readily susceptible to
manipulation.</text>
</paragraph><paragraph id="HA48881DA42F44D7CA9F2420FEB5D9FAC"><enum>(4)</enum><header>Monitoring of
trading and trade processing</header><text>The swap execution facility
shall—</text>
<subparagraph id="H6DB543A0A0534DA880105930BB61FB10"><enum>(A)</enum><text>establish and
enforce rules or terms and conditions defining, or specifications
detailing—</text>
<clause id="H2364D8E7A2724012891B404C8E379CD5"><enum>(i)</enum><text>trading procedures
to be used in entering and executing orders traded on or through the facilities
of the swap execution facility; and</text>
</clause><clause id="HC2758E9C60684C95BF26229966E42483"><enum>(ii)</enum><text>procedures for
trade processing of swaps on or through the facilities of the swap execution
facility; and</text>
</clause></subparagraph><subparagraph id="H79125F69E15748B0BF378A501057C0A4"><enum>(B)</enum><text>monitor trading in
swaps to prevent manipulation, price distortion, and disruptions of the
delivery or cash settlement process through surveillance, compliance, and
disciplinary practices and procedures, including methods for conducting
real-time monitoring of trading and comprehensive and accurate trade
reconstructions.</text>
</subparagraph></paragraph><paragraph id="HC029495A92D5466786A0299115D30BA6"><enum>(5)</enum><header>Ability to
obtain information</header><text>The swap execution facility shall—</text>
<subparagraph id="HDCAAFE6EE4694F358DD81B534A855E47"><enum>(A)</enum><text>establish and
enforce rules that will allow the facility to obtain any necessary information
to perform any of the functions described in this section;</text>
</subparagraph><subparagraph id="H6105FF1A97F24937894C663B7F740C3A"><enum>(B)</enum><text>provide the
information to the Commission on request; and</text>
</subparagraph><subparagraph id="HED9B06C7E31B4B7FBB22A8AC46F17F44"><enum>(C)</enum><text>have the capacity
to carry out such international information-sharing agreements as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="HD5C484922EC54FD3AE031E0ABFDFBC52"><enum>(6)</enum><header>Position limits
or accountability</header>
<subparagraph id="H2439ED865D9C4E038C2B14C17C346C9A"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion, especially during trading in the delivery month, a swap execution
facility that is a trading facility shall adopt for each of the contracts of
the facility, as is necessary and appropriate, position limitations or position
accountability for speculators.</text>
</subparagraph><subparagraph id="HF2BAEEC21BCE47E4AAC5AAA8CE58CA40"><enum>(B)</enum><header>Position
limits</header><text>For any contract that is subject to a position limitation
established by the Commission pursuant to section 4a(a), the swap execution
facility shall—</text>
<clause id="H455D9091A82840C784F59D5D783FD414"><enum>(i)</enum><text>set its position
limitation at a level no higher than the Commission limitation; and</text>
</clause><clause id="H358549DC13EE498ABD0B852F0DE7C8EB"><enum>(ii)</enum><text>monitor positions
established on or through the swap execution facility for compliance with the
limit set by the Commission and the limit, if any, set by the swap execution
facility.</text>
</clause></subparagraph></paragraph><paragraph id="H1A1A3DED87C442EE833E44E8BB2FB0F0"><enum>(7)</enum><header>Financial
integrity of transactions</header><text>The swap execution facility shall
establish and enforce rules and procedures for ensuring the financial integrity
of swaps entered on or through the facilities of the swap execution facility,
including the clearance and settlement of the swaps pursuant to section
2(h)(1).</text>
</paragraph><paragraph id="H38E5A27775944873918FFF36F6BA5752"><enum>(8)</enum><header>Emergency
authority</header><text>The swap execution facility shall adopt rules to
provide for the exercise of emergency authority, in consultation or cooperation
with the Commission, as is necessary and appropriate, including the authority
to liquidate or transfer open positions in any swap or to suspend or curtail
trading in a swap.</text>
</paragraph><paragraph id="H25026ADDC4D745FF9B167FB3F1D58F32"><enum>(9)</enum><header>Timely
publication of trading information</header>
<subparagraph id="HDB506A3A5C89475F8791C1F5311DC23A"><enum>(A)</enum><header>In
general</header><text>The swap execution facility shall make public timely
information on price, trading volume, and other trading data on swaps to the
extent prescribed by the Commission.</text>
</subparagraph><subparagraph id="H819485539BB74DB789B7790EF128DFF0"><enum>(B)</enum><header>Capacity of swap
execution facility</header><text>The swap execution facility shall be required
to have the capacity to electronically capture and transmit trade information
with respect to transactions executed on the facility.</text>
</subparagraph></paragraph><paragraph id="H74180714F3EB45A795818BD09B93A5AC"><enum>(10)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="H798076BA87B443F5A6EBB67E912266BD"><enum>(A)</enum><header>In
general</header><text>A swap execution facility shall—</text>
<clause id="H9E2CEB6EFD0A4066AE1148E16C930E54"><enum>(i)</enum><text>maintain records
of all activities relating to the business of the facility, including a
complete audit trail, in a form and manner acceptable to the Commission for a
period of 5 years;</text>
</clause><clause id="HD7000FDD01884FE1A0F428EFFA48EE89"><enum>(ii)</enum><text>report to the
Commission, in a form and manner acceptable to the Commission, such information
as the Commission determines to be necessary or appropriate for the Commission
to perform the duties of the Commission under this Act; and</text>
</clause><clause id="H87B1BA6A309B470ABE779E9EFB29E0C2"><enum>(iii)</enum><text>shall keep any
such records relating to swaps defined in section 1a(47)(A)(v) open to
inspection and examination by the Securities and Exchange Commission.”</text>
</clause></subparagraph><subparagraph id="HCBACE40045C64E84BBC5DE7C7BF2115C"><enum>(B)</enum><header>Requirements</header><text>The
Commission shall adopt data collection and reporting requirements for swap
execution facilities that are comparable to corresponding requirements for
derivatives clearing organizations and swap data repositories.</text>
</subparagraph></paragraph><paragraph id="HB3EDAE4EFF6043ECBD76F6C8EE5CA4D0"><enum>(11)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the swap execution facility shall not—</text>
<subparagraph id="HD56B594EA33A4D19BF3B954016EC9C26"><enum>(A)</enum><text>adopt any rules or
taking any actions that result in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="H38075BC4043445319F8E3A51C25F4085"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="H2B08480471B440A89F3F3C1B5C9D5952"><enum>(12)</enum><header>Conflicts of
interest</header><text>The swap execution facility shall—</text>
<subparagraph id="H01C32A90B62143F8929EC0AFD98D4DC9"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in its decision-making process;
and</text>
</subparagraph><subparagraph id="HD238B8702BBB458B88DC329D9838F93A"><enum>(B)</enum><text>establish a
process for resolving the conflicts of interest.</text>
</subparagraph></paragraph><paragraph id="HD4F9E90597F041CCAD30FDB6B8BF4E08"><enum>(13)</enum><header>Financial
resources</header>
<subparagraph id="H013C380621EF4CFEAA0A07EDE785E493"><enum>(A)</enum><header>In
general</header><text>The swap execution facility shall have adequate
financial, operational, and managerial resources to discharge each
responsibility of the swap execution facility.</text>
</subparagraph><subparagraph id="H78DB69ED0CFE4EE0A7A75FD0E23D732F"><enum>(B)</enum><header>Determination of
resource adequacy</header><text>The financial resources of a swap execution
facility shall be considered to be adequate if the value of the financial
resources exceeds the total amount that would enable the swap execution
facility to cover the operating costs of the swap execution facility for a
1-year period, as calculated on a rolling basis.</text>
</subparagraph></paragraph><paragraph id="H72AB7A4377AF4A21A9E0A7198DA1057E"><enum>(14)</enum><header>System
safeguards</header><text>The swap execution facility shall—</text>
<subparagraph id="HEF9A556C367E42659904C1B8C8DB8DB6"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and automated systems, that—</text>
<clause id="HBCC37405877D4597AB2A8CE25D61727A"><enum>(i)</enum><text>are reliable and
secure; and</text>
</clause><clause id="HFDC783ECA8AE4ABF963421B02725CFF7"><enum>(ii)</enum><text>have adequate
scalable capacity;</text>
</clause></subparagraph><subparagraph id="H407F714B372A436AB5416863BA783F6C"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allow for—</text>
<clause id="HD67E58EFAEF24984B755E4DDB74B20D7"><enum>(i)</enum><text>the timely
recovery and resumption of operations; and</text>
</clause><clause id="H38A4CB857E9A4AF3921A5F7FEC323C79"><enum>(ii)</enum><text>the fulfillment
of the responsibilities and obligations of the swap execution facility;
and</text>
</clause></subparagraph><subparagraph id="H6F9EFCB06EDD48CBA66F0124D6343E89"><enum>(C)</enum><text>periodically
conduct tests to verify that the backup resources of the swap execution
facility are sufficient to ensure continued—</text>
<clause id="HA768C3AA1D09468CAE899B60265FBB17"><enum>(i)</enum><text>order processing
and trade matching;</text>
</clause><clause id="HBA736EC8368D420DA58214F8A99CE096"><enum>(ii)</enum><text>price
reporting;</text>
</clause><clause id="H0DC7F8DF634A48229A122711FB98A1D8"><enum>(iii)</enum><text>market
surveillance and</text>
</clause><clause id="H90B2B913B0E14E479886A10A56D8BDB7"><enum>(iv)</enum><text>maintenance of a
comprehensive and accurate audit trail.</text>
</clause></subparagraph></paragraph><paragraph id="HCC097E43963749DFA8117CFA1C8C5575"><enum>(15)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="H0D34A7648ACF4658B166C96C6E9D563C"><enum>(A)</enum><header>In
general</header><text>Each swap execution facility shall designate an
individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="HA26D8278766047D38F8FF1F5209466A7"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="HE9A5ACBB12F440C9B8EC849977D6C43D"><enum>(i)</enum><text>report directly to
the board or to the senior officer of the facility;</text>
</clause><clause id="H0CFB6143DCF54022A607B2F4CFC65D7D"><enum>(ii)</enum><text>review compliance
with the core principles in this subsection;</text>
</clause><clause id="H8C4A3032FC7C4F3DBD6DCA910BB8B739"><enum>(iii)</enum><text>in consultation
with the board of the facility, a body performing a function similar to that of
a board, or the senior officer of the facility, resolve any conflicts of
interest that may arise;</text>
</clause><clause id="HB85BF4104CC043B3902A8224ACE4CABA"><enum>(iv)</enum><text>be responsible
for establishing and administering the policies and procedures required to be
established pursuant to this section;</text>
</clause><clause id="H40CD2482E90A4C478524355F908A788B"><enum>(v)</enum><text>ensure compliance
with this Act and the rules and regulations issued under this Act, including
rules prescribed by the Commission pursuant to this section; and</text>
</clause><clause id="H0560BEE5BDA841F48B8AB58E97D1D400"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues found during compliance
office reviews, look backs, internal or external audit findings, self-reported
errors, or through validated complaints.</text>
</clause></subparagraph><subparagraph id="H551988893C654EC993230D51DB5E2469"><enum>(C)</enum><header>Requirements for
procedures</header><text>In establishing procedures under subparagraph (B)(vi),
the chief compliance officer shall design the procedures to establish the
handling, management response, remediation, retesting, and closing of
noncompliance issues.</text>
</subparagraph><subparagraph id="HF4F0F271FC0E47699C66454D8FADAADE"><enum>(D)</enum><header>Annual
reports</header>
<clause id="HE39FD757A5D743A6BF56848A78ED3E60"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="HF5689AB7B069435082F73D13A696B9DD"><enum>(I)</enum><text>the compliance of
the swap execution facility with this Act; and</text>
</subclause><subclause id="HD3DAB4A18AB3422BA6F3284DA6541309"><enum>(II)</enum><text>the policies and
procedures, including the code of ethics and conflict of interest policies, of
the swap execution facility.</text>
</subclause></clause><clause id="H35B60E57C8D64DE78D14221F714ABD21"><enum>(ii)</enum><header>Requirements</header><text>The
chief compliance officer shall—</text>
<subclause id="HDD65A0D8805E4494BF5778111D764A08"><enum>(I)</enum><text>submit each report
described in clause (i) with the appropriate financial report of the swap
execution facility that is required to be submitted to the Commission pursuant
to this section; and</text>
</subclause><subclause id="HAD2E88E50845456B8DA15BD97B151CC2"><enum>(II)</enum><text>include in the
report a certification that, under penalty of law, the report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H0A8B259F2A714502BD5D18366427286D"><enum>(g)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a swap execution
facility from registration under this section if the Commission finds that the
facility is subject to comparable, comprehensive supervision and regulation on
a consolidated basis by the Securities and Exchange Commission, a prudential
regulator, or the appropriate governmental authorities in the home country of
the facility.</text>
</subsection><subsection id="H829F2E2F5553424C92EB0936DE4BEEC5"><enum>(h)</enum><header>Rules</header><text>The
Commission shall prescribe rules governing the regulation of alternative swap
execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="H8EB92C6BCBDD4EF4AAC1D7C8A710433B"><enum>734.</enum><header>Derivatives
transaction execution facilities and exempt boards of trade</header>
<subsection id="HCE5073031EE745A49E9DA4E6C041C468"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Sections 5a and 5d of
the Commodity Exchange Act (7 U.S.C. 7a, 7a–3) are repealed.</text>
</subsection><subsection id="HE29996B2F1ED40DCB4C33ED359E61445"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H6303DAFF416741BEB7475D502F9C506B"><enum>(1)</enum><text>Section 2 of the
Commodity Exchange Act (7 U.S.C. 2) is amended—</text>
<subparagraph id="HC4305D82601F427589506A2BAE4608D5"><enum>(A)</enum><text>in subsection
(a)(1)(A), in the first sentence, by striking <quote>or 5a</quote>; and</text>
</subparagraph><subparagraph id="H62ABCFFDE71942849F381D399C71D4B7"><enum>(B)</enum><text>in paragraph (2)
of subsection (g) (as redesignated by section 723(a)(1)(B)), by striking
<quote>section 5a of this Act</quote> and all that follows through <quote>5d of
this Act</quote> and inserting <quote>section 5b of this Act</quote>.</text>
</subparagraph></paragraph><paragraph id="H5091E52FC3AF484485D8C604D0779BD2"><enum>(2)</enum><text>Section 6(g)(1)(A)
of the Securities Exchange Act of 1934 (15 U.S.C. 78f(g)(1)(A)) is
amended—</text>
<subparagraph id="H8DA8659E0DEC43B59D4E4E0536F77FD6"><enum>(A)</enum><text>by striking
<quote>that—</quote> and all that follows through <quote>(i) has been
designated</quote> and inserting <quote>that has been
designated</quote>;</text>
</subparagraph><subparagraph id="HE756BAB5D373450B9D4C4CF57C678DA8"><enum>(B)</enum><text>by striking
<quote>; or</quote> and inserting <quote>; and</quote> and</text>
</subparagraph><subparagraph id="H88E45380B4CA4107B2346133327CB778"><enum>(C)</enum><text>by striking clause
(ii).</text>
</subparagraph></paragraph></subsection><subsection id="H0AFB89B075814D6393E8F76297B2CBAC"><enum>(c)</enum><header>Ability to
petition Commission</header>
<paragraph id="HF4014C55749D4A2F94FEE03066EBE844"><enum>(1)</enum><header>In
general</header><text>Prior to the final effective dates in this title, a
person may petition the Commodity Futures Trading Commission to remain subject
to the provisions of section 5d of the Commodity Exchange Act, as such
provisions existed prior to the effective date of this subtitle.</text>
</paragraph><paragraph id="HFD4626B51D8D4027B3F881EA51EBD352"><enum>(2)</enum><header>Consideration of
petition</header><text>The Commodity Futures Trading Commission shall consider
any petition submitted under paragraph (1) in a prompt manner and may allow a
person to continue operating subject to the provisions of section 5d of the
Commodity Exchange Act for up to 1 year after the effective date of this
subtitle.</text>
</paragraph></subsection></section><section id="HEB27D17A4DF84084BD125179EEBEB460"><enum>735.</enum><header>Designated
contract markets</header>
<subsection id="H9147448C4E13479BBCFE3F69D63745C9"><enum>(a)</enum><header>Criteria for
Designation</header><text>Section 5 of the Commodity Exchange Act (7 U.S.C. 7)
is amended by striking subsection (b).</text>
</subsection><subsection id="HBD2CC9A34D244355A0D2C06CCB5E5025"><enum>(b)</enum><header>Core principles
for contract markets</header><text>Section 5 of the Commodity Exchange Act (7
U.S.C. 7) is amended by striking subsection (d) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H4203F78C98A845D2B1525DC30B82C655" style="OLC">
<subsection id="H7A862D5940AA4660A816F2A1A7D93F9E"><enum>(d)</enum><header>Core principles
for contract markets</header>
<paragraph id="HC997A3AEA807432BBB56849C416566B3"><enum>(1)</enum><header>Designation as
contract market</header>
<subparagraph id="HBC2FBB93AD4B4FAE9BF9669EA2BF6D43"><enum>(A)</enum><header>In
general</header><text>To be designated, and maintain a designation, as a
contract market, a board of trade shall comply with—</text>
<clause id="H4079269C0CB0440283F798A782411147"><enum>(i)</enum><text>any core principle
described in this subsection; and</text>
</clause><clause id="H0FF3AB510EB34B8C933CA84038AC9D8F"><enum>(ii)</enum><text>any requirement
that the Commission may impose by rule or regulation pursuant to section
8a(5).</text>
</clause></subparagraph><subparagraph id="HE5CBF024466949CBAE43D0FFABBE1A9D"><enum>(B)</enum><header>Reasonable
discretion of contract market</header><text>Unless otherwise determined by the
Commission by rule or regulation, a board of trade described in subparagraph
(A) shall have reasonable discretion in establishing the manner in which the
board of trade complies with the core principles described in this
subsection.</text>
</subparagraph></paragraph><paragraph id="H80C66B4B375543B4A9D15DA7341197FD"><enum>(2)</enum><header>Compliance with
rules</header>
<subparagraph id="H14F474FA141940FB80D98D4AA9670DF8"><enum>(A)</enum><header>In
general</header><text>The board of trade shall establish, monitor, and enforce
compliance with the rules of the contract market, including—</text>
<clause id="H9205205EC7944AAFAB3169DAAFB2B3EC"><enum>(i)</enum><text>access
requirements;</text>
</clause><clause id="HADFD0DFADDA34270A9D1EC4C8B768902"><enum>(ii)</enum><text>the terms and
conditions of any contracts to be traded on the contract market; and</text>
</clause><clause id="H56B8679C79B24A41A170051A3FEF49FD"><enum>(iii)</enum><text>rules
prohibiting abusive trade practices on the contract market.</text>
</clause></subparagraph><subparagraph id="H9EAB5B0E437A48DF99BC8DC2A42DC378"><enum>(B)</enum><header>Capacity of
contract market</header><text>The board of trade shall have the capacity to
detect, investigate, and apply appropriate sanctions to any person that
violates any rule of the contract market.</text>
</subparagraph><subparagraph id="H303D1F4EC5B442B0913016214727E97D"><enum>(C)</enum><header>Requirement of
rules</header><text>The rules of the contract market shall provide the board of
trade with the ability and authority to obtain any necessary information to
perform any function described in this subsection, including the capacity to
carry out such international information-sharing agreements as the Commission
may require.</text>
</subparagraph></paragraph><paragraph id="HD9E1B430C91646349E77F657C8346755"><enum>(3)</enum><header>Contracts not
readily subject to manipulation</header><text>The board of trade shall list on
the contract market only contracts that are not readily susceptible to
manipulation.</text>
</paragraph><paragraph id="H9B24E87C09FF4B64A9CCA435012BF792"><enum>(4)</enum><header>Prevention of
market disruption</header><text>The board of trade shall have the capacity and
responsibility to prevent manipulation, price distortion, and disruptions of
the delivery or cash-settlement process through market surveillance,
compliance, and enforcement practices and procedures, including—</text>
<subparagraph id="H2EE9B9FE493A4DFB81F38CCB85D019EB"><enum>(A)</enum><text>methods for
conducting real-time monitoring of trading; and</text>
</subparagraph><subparagraph id="HF14E6CF7B447498FA7B1C2479992E3D6"><enum>(B)</enum><text>comprehensive and
accurate trade reconstructions.</text>
</subparagraph></paragraph><paragraph id="H90928811D1844581B3EDD3A54FF80E57"><enum>(5)</enum><header>Position
limitations or accountability</header>
<subparagraph id="H3AB719ABBC4A4CA18C6E4767E3FAD246"><enum>(A)</enum><header>In
general</header><text>To reduce the potential threat of market manipulation or
congestion (especially during trading in the delivery month), the board of
trade shall adopt for each contract of the board of trade, as is necessary and
appropriate, position limitations or position accountability for
speculators.</text>
</subparagraph><subparagraph id="H5EA3A943EC0F4AFEAFAC78B2C442211D"><enum>(B)</enum><header>Maximum
allowable position limitation</header><text>For any contract that is subject to
a position limitation established by the Commission pursuant to section 4a(a),
the board of trade shall set the position limitation of the board of trade at a
level not higher than the position limitation established by the
Commission.</text>
</subparagraph></paragraph><paragraph id="H412F471A53E04026BFEAD3D0FCF929A1"><enum>(6)</enum><header>Emergency
authority</header><text>The board of trade, in consultation or cooperation with
the Commission, shall adopt rules to provide for the exercise of emergency
authority, as is necessary and appropriate, including the authority—</text>
<subparagraph id="H5C191B5C3C424B488D991079CB1AB7BD"><enum>(A)</enum><text>to liquidate or
transfer open positions in any contract;</text>
</subparagraph><subparagraph id="H11B027F6B58547A29495C48415FADB61"><enum>(B)</enum><text>to suspend or
curtail trading in any contract; and</text>
</subparagraph><subparagraph id="H6C681826E2E84B21A88B38B1F613844F"><enum>(C)</enum><text>to require market
participants in any contract to meet special margin requirements.</text>
</subparagraph></paragraph><paragraph id="HDA72CB621A43444ABC3C46B6661224D3"><enum>(7)</enum><header>Availability of
general information</header><text>The board of trade shall make available to
market authorities, market participants, and the public accurate information
concerning—</text>
<subparagraph id="H1570C4FB11734B0ABBBD0A9B21AA5972"><enum>(A)</enum><text>the terms and
conditions of the contracts of the contract market; and</text>
</subparagraph><subparagraph id="HBAD458948A914D94B81FE8C5AD22C0D1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H45EA1197823E42BDA7AC63E660CEF94C"><enum>(i)</enum><text>the rules, regulations,
and mechanisms for executing transactions on or through the facilities of the
contract market; and</text>
</clause><clause id="H8FFE609FA78A4ED99256C550491ECBCF" indent="up1"><enum>(ii)</enum><text>the rules and specifications
describing the operation of the contract market’s—</text>
<subclause id="H6B660AF35C284875A04C1A127CF869A7"><enum>(I)</enum><text>electronic matching platform; or</text>
</subclause><subclause id="H16589ECAAEA24403982D8204EA6B4E1B"><enum>(II)</enum><text>trade execution facility.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H62B8FBA7C41D495E9D3FCD27C100F65C"><enum>(8)</enum><header>Daily
publication of trading information</header><text>The board of trade shall make
public daily information on settlement prices, volume, open interest, and
opening and closing ranges for actively traded contracts on the contract
market.</text>
</paragraph><paragraph id="H8A4AFB4121B14D24812604A5F6DAFEB7"><enum>(9)</enum><header>Execution of
transactions</header>
<subparagraph id="HC1D77FF969484CD3960141712F6C5BED"><enum>(A)</enum><header>In
general</header><text>The board of trade shall provide a competitive, open, and
efficient market and mechanism for executing transactions that protects the
price discovery process of trading in the centralized market of the board of
trade.</text>
</subparagraph><subparagraph id="HA44F28A11AB64F00AFBD6FC5D8DC32F8"><enum>(B)</enum><header>Rules</header><text>The
rules of the board of trade may authorize, for bona fide business
purposes—</text>
<clause id="HA0EFE22EDDC145B6B8FD5378C132443B"><enum>(i)</enum><text>transfer trades or
office trades;</text>
</clause><clause id="H9DE970A827024E11A030B77500670787"><enum>(ii)</enum><text>an exchange
of—</text>
<subclause id="H37455E803ECF450A8962B2A3AE3E96B4"><enum>(I)</enum><text>futures in
connection with a cash commodity transaction;</text>
</subclause><subclause id="H3F17659B515F46C98F7878AC0C4421E2"><enum>(II)</enum><text>futures for cash
commodities; or</text>
</subclause><subclause id="HBC30C208FCDB460E800763D5782A7471"><enum>(III)</enum><text>futures for
swaps; or</text>
</subclause></clause><clause id="H54E867DF560E418FAB50D387073830F6"><enum>(iii)</enum><text>a futures
commission merchant, acting as principal or agent, to enter into or confirm the
execution of a contract for the purchase or sale of a commodity for future
delivery if the contract is reported, recorded, or cleared in accordance with
the rules of the contract market or a derivatives clearing organization.</text>
</clause></subparagraph></paragraph><paragraph id="H1E2CCA8ACBA642D59BB883D683D09C18"><enum>(10)</enum><header>Trade
information</header><text>The board of trade shall maintain rules and
procedures to provide for the recording and safe storage of all identifying
trade information in a manner that enables the contract market to use the
information—</text>
<subparagraph id="H1A0159B94AC74DED8DC97DAD7B199319"><enum>(A)</enum><text>to assist in the
prevention of customer and market abuses; and</text>
</subparagraph><subparagraph id="HAA7EA65164494B99BC15EEF13D3379DF"><enum>(B)</enum><text>to provide
evidence of any violations of the rules of the contract market.</text>
</subparagraph></paragraph><paragraph id="H857F8FD578604B318C7F74B25DFE189A"><enum>(11)</enum><header>Financial
integrity of transactions</header><text>The board of trade shall establish and
enforce—</text>
<subparagraph id="H659C6E00A9B241E58386F3AF833C9918"><enum>(A)</enum><text>rules and
procedures for ensuring the financial integrity of transactions entered into on
or through the facilities of the contract market (including the clearance and
settlement of the transactions with a derivatives clearing organization);
and</text>
</subparagraph><subparagraph id="HDB490BECBC03483CB32D981E13A2A328"><enum>(B)</enum><text>rules to
ensure—</text>
<clause id="HF27FC66BB10D4221A96D4EBD2637A429"><enum>(i)</enum><text>the financial
integrity of any—</text>
<subclause id="H12BFB56E1E6A4665B299E29B44E6A1AF"><enum>(I)</enum><text>futures commission
merchant; and</text>
</subclause><subclause id="H04773635D1E849B2B0117E4F94D7D5D9"><enum>(II)</enum><text>introducing
broker; and</text>
</subclause></clause><clause id="H2AE066C0260B44FE98F770EBFEB787CC"><enum>(ii)</enum><text>the protection of
customer funds.</text>
</clause></subparagraph></paragraph><paragraph id="H38BA53BEE9764F0392B5FC133D798240"><enum>(12)</enum><header>Protection of
markets and market participants</header><text>The board of trade shall
establish and enforce rules—</text>
<subparagraph id="H94B32CCBB37A4739BB1A35B1E34B5A43"><enum>(A)</enum><text>to protect markets
and market participants from abusive practices committed by any party,
including abusive practices committed by a party acting as an agent for a
participant; and</text>
</subparagraph><subparagraph id="H2D5484C60BE646B58F3C9A74BE12DE11"><enum>(B)</enum><text>to promote fair
and equitable trading on the contract market.</text>
</subparagraph></paragraph><paragraph id="H62D25A1109F24B8AA3015AEB7E9673CD"><enum>(13)</enum><header>Disciplinary
procedures</header><text>The board of trade shall establish and enforce
disciplinary procedures that authorize the board of trade to discipline,
suspend, or expel members or market participants that violate the rules of the
board of trade, or similar methods for performing the same functions, including
delegation of the functions to third parties.</text>
</paragraph><paragraph id="H4CFC54C178924C078BE3CE0D1F841998"><enum>(14)</enum><header>Dispute
resolution</header><text>The board of trade shall establish and enforce rules
regarding, and provide facilities for alternative dispute resolution as
appropriate for, market participants and any market intermediaries.</text>
</paragraph><paragraph id="HBD6F5D79B15A43E6A43497793C515D0F"><enum>(15)</enum><header>Governance
fitness standards</header><text>The board of trade shall establish and enforce
appropriate fitness standards for directors, members of any disciplinary
committee, members of the contract market, and any other person with direct
access to the facility (including any party affiliated with any person
described in this paragraph).</text>
</paragraph><paragraph id="H29B3C6EE9EBC44938D321FEE54C7FD67"><enum>(16)</enum><header>Conflicts of
interest</header><text>The board of trade shall establish and enforce
rules—</text>
<subparagraph id="HFA5AFF9EB968461EAEC5ABA013F166E6"><enum>(A)</enum><text>to minimize
conflicts of interest in the decision-making process of the contract market;
and</text>
</subparagraph><subparagraph id="HC037C7C7C13F4FD995D754EA8A8BC8A6"><enum>(B)</enum><text>to establish a
process for resolving conflicts of interest described in subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="HD4BEEE71C5AF466CA895509E53DD5591"><enum>(17)</enum><header>Composition of
governing boards of contract markets</header><text>The governance arrangements
of the board of trade shall be designed to permit consideration of the views of
market participants.</text>
</paragraph><paragraph id="H98D6C5735C024C33B970F2291CFCBBA5"><enum>(18)</enum><header>Recordkeeping</header><text>The
board of trade shall maintain records of all activities relating to the
business of the contract market—</text>
<subparagraph id="H3B9C27A5EEBB442BA904479D9CF7F077"><enum>(A)</enum><text>in a form and
manner that is acceptable to the Commission; and</text>
</subparagraph><subparagraph id="HC66D13130EA34F37BAA9140E45304381"><enum>(B)</enum><text>for a period of at
least 5 years.</text>
</subparagraph></paragraph><paragraph id="H3B2442C5B99045C19F2E122797EDD028"><enum>(19)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the board of trade shall not—</text>
<subparagraph id="H1EA5C0FABBEE4B59A31366FAD05AF077"><enum>(A)</enum><text>adopt any rule or
taking any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="H63BAAD32450C42CABBA5FC95101A640D"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading on the contract market.</text>
</subparagraph></paragraph><paragraph id="H1B1390FF7AC749BCA952775A18618D21"><enum>(20)</enum><header>System
safeguards</header><text>The board of trade shall—</text>
<subparagraph id="H4080417D1E834623B2FB484378DC819A"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and the development of automated systems, that are reliable,
secure, and have adequate scalable capacity;</text>
</subparagraph><subparagraph id="H980978DFABC54922909154FD8F964AD4"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allow for the timely recovery and resumption of operations and
the fulfillment of the responsibilities and obligations of the board of trade;
and</text>
</subparagraph><subparagraph id="HC7CB4E8F38074BF9A8481CC6C683F2C5"><enum>(C)</enum><text>periodically
conduct tests to verify that backup resources are sufficient to ensure
continued order processing and trade matching, price reporting, market
surveillance, and maintenance of a comprehensive and accurate audit
trail.</text>
</subparagraph></paragraph><paragraph id="HDEC05F71DBDE404787781035D564F578"><enum>(21)</enum><header>Financial
resources</header>
<subparagraph id="HAD05281630744FD0A58EB4B8B62BC775"><enum>(A)</enum><header>In
general</header><text>The board of trade shall have adequate financial,
operational, and managerial resources to discharge each responsibility of the
board of trade.</text>
</subparagraph><subparagraph id="H083B72286A704E90AFDC048DAFDAE38E"><enum>(B)</enum><header>Determination of
adequacy</header><text>The financial resources of the board of trade shall be
considered to be adequate if the value of the financial resources exceeds the
total amount that would enable the contract market to cover the operating costs
of the contract market for a 1-year period, as calculated on a rolling
basis.</text>
</subparagraph></paragraph><paragraph id="HAA1ADBBE1FF4443EAB10EA879202E7C0"><enum>(22)</enum><header>Diversity of
board of directors</header><text>The board of trade, if a publicly traded
company, shall endeavor to recruit individuals to serve on the board of
directors and the other decision-making bodies (as determined by the
Commission) of the board of trade from among, and to have the composition of
the bodies reflect, a broad and culturally diverse pool of qualified
candidates.</text>
</paragraph><paragraph id="H29EAF052DA3E4A09AF30E0FD41BD76F8"><enum>(23)</enum><header>Securities and
Exchange Commission</header><text>The board of trade shall keep any such
records relating to swaps defined in section 1a(47)(A)(v) open to inspection
and examination by the Securities and Exchange
Commission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HE9F5B1756ECB4D448EE7A4B3AE883BA5"><enum>736.</enum><header>Margin</header><text display-inline="no-display-inline">Section 8a(7) of the Commodity Exchange Act
(7 U.S.C. 12a(7)) is amended—</text>
<paragraph id="H09F8D3F3E291402BA3B11ECF610A34B4"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>,
excepting the setting of levels of margin</quote>;</text>
</paragraph><paragraph id="H102FA26AEB114F889CB51761ADAC6A5A"><enum>(2)</enum><text>by redesignating
subparagraphs (D) through (F) as subparagraphs (E) through (G), respectively;
and</text>
</paragraph><paragraph id="H2EE9D63B1BD946F9AF92793A437773C4"><enum>(3)</enum><text>by inserting after
subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="H22C27B3D249E434680937C79E09F5CA5" style="OLC">
<subparagraph id="HFF18A3075F214EEF81507C1EC13DA933"><enum>(D)</enum><text>margin
requirements, provided that the rules, regulations, or orders shall—</text>
<clause id="H8DFF3FF19C9A472CB2B2E99410F25601"><enum>(i)</enum><text>be
limited to protecting the financial integrity of the derivatives clearing
organization;</text>
</clause><clause id="H5ABB6EBBF10B434999583674720B99CE"><enum>(ii)</enum><text>be designed for
risk management purposes to protect the financial integrity of transactions;
and</text>
</clause><clause id="H810BB5932D424E3989BC063A5866F71F"><enum>(iii)</enum><text>not set specific
margin
amounts;</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H0CFFD10F569940A380597F1B96DDAE0F"><enum>737.</enum><header>Position
limits</header>
<subsection id="HBF692F5E764741F9B26E72EECF3CC88A"><enum>(a)</enum><header>Aggregate
position limits</header><text>Section 4a(a) of the Commodity Exchange Act (7
U.S.C. 6a(a)) is amended—</text>
<paragraph id="HD91C3663E6474AFCB8805CC34EE4AC7E"><enum>(1)</enum><text>by inserting after
<quote>(a)</quote> the following:</text>
<quoted-block display-inline="no-display-inline" id="H69288027F6014229A5B5D194D143CFE1" style="OLC">
<paragraph id="HCC598D4E5D12431782D6375EE95C9B0A"><enum>(1)</enum><header>In
general</header>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H419DFF85D41E4CE892FE4555D0E4B805"><enum>(2)</enum><text>in the first
sentence, by striking <quote>on electronic trading facilities with respect to a
significant price discovery contract</quote> and inserting <quote>swaps that
perform or affect a significant price discovery function with respect to
registered entities</quote>;</text>
</paragraph><paragraph id="H0D37693D84E6412BADFBEF7ECE106101"><enum>(3)</enum><text>in the second
sentence—</text>
<subparagraph id="H3DD8FCB6F5C9429FA482936A0D4FBE2E"><enum>(A)</enum><text>by inserting
<quote>, including any group or class of traders,</quote> after <quote>held by
any person</quote>; and</text>
</subparagraph><subparagraph id="HBDB11CE2C8964FB9B22970FA073AB830"><enum>(B)</enum><text>by striking
<quote>on an electronic trading facility with respect to a significant price
discovery contract,</quote> and inserting <quote>swaps traded on or subject to
the rules of a designated contract market or a swap execution facility, or
swaps not traded on or subject to the rules of a designated contract market or
a swap execution facility that performs a significant price discovery function
with respect to a registered entity,</quote>; and</text>
</subparagraph></paragraph><paragraph id="HAD43F9258A674207A494013A309A2E51"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H767B36ACB12A453AA12C57A699371B52" style="OLC">
<paragraph id="H91944C8370B045AAA5EC5961C024F773"><enum>(2)</enum><header>Establishment of
limitations</header>
<subparagraph id="H30C9025DA8F441279AAB10CBC3A05985"><enum>(A)</enum><header>In
general</header><text>In accordance with the standards set forth in paragraph
(1) of this subsection and consistent with the good faith exception cited in
subsection (b)(2), with respect to physical commodities other than excluded
commodities as defined by the Commission, the Commission shall by rule,
regulation, or order establish limits on the amount of positions, as
appropriate, other than bona fide hedge positions, that may be held by any
person with respect to contracts of sale for future delivery or with respect to
options on the contracts or commodities traded on or subject to the rules of a
designated contract market.</text>
</subparagraph><subparagraph id="HE9CFE773ABA047E583B08CBC5191AD07"><enum>(B)</enum><header>Timing</header>
<clause id="HDEF346FB93A8428EB564FF72464E38C8"><enum>(i)</enum><header>Exempt
commodities</header><text>For exempt commodities, the limits required under
subparagraph (A) shall be established within 180 days after the date of the
enactment of this paragraph.</text>
</clause><clause id="HA1FCD1C49781419B85ED29A5B6F3F1BB"><enum>(ii)</enum><header>Agricultural
commodities</header><text>For agricultural commodities, the limits required
under subparagraph (A) shall be established within 270 days after the date of
the enactment of this paragraph.</text>
</clause></subparagraph><subparagraph id="HD19232FC930A4B4C9673850B091CEB10"><enum>(C)</enum><header>Goal</header><text>In
establishing the limits required under subparagraph (A), the Commission shall
strive to ensure that trading on foreign boards of trade in the same commodity
will be subject to comparable limits and that any limits to be imposed by the
Commission will not cause price discovery in the commodity to shift to trading
on the foreign boards of trade.</text>
</subparagraph></paragraph><paragraph id="H3BD8C1ADADFF463FA8F319D4B7698FFE"><enum>(3)</enum><header>Specific
Limitations</header><text>In establishing the limits required in paragraph (2),
the Commission, as appropriate, shall set limits—</text>
<subparagraph id="HD938BAC2241B4D628433DAFE84648C18"><enum>(A)</enum><text>on the number of
positions that may be held by any person for the spot month, each other month,
and the aggregate number of positions that may be held by any person for all
months; and</text>
</subparagraph><subparagraph id="H2EB4CB5E6A9349C1889A1EC799823E77"><enum>(B)</enum><text>to the maximum
extent practicable, in its discretion—</text>
<clause id="HC674411AA7544A59AE2306DA4DD0674D"><enum>(i)</enum><text>to
diminish, eliminate, or prevent excessive speculation as described under this
section;</text>
</clause><clause id="H84392498F3674F34A311A66B73FC3AAD"><enum>(ii)</enum><text>to deter and
prevent market manipulation, squeezes, and corners;</text>
</clause><clause id="H053DFCB2BF33493E9204025828EFE985"><enum>(iii)</enum><text>to ensure
sufficient market liquidity for bona fide hedgers; and</text>
</clause><clause id="HAAC5A0B262004BDFA5A1E94DFAA543A0"><enum>(iv)</enum><text>to ensure that
the price discovery function of the underlying market is not disrupted.</text>
</clause></subparagraph></paragraph><paragraph id="H6C92C3D1F73540D2AF458B5D5E8BE060"><enum>(4)</enum><header>Significant
price discovery function</header><text>In making a determination whether a swap
performs or affects a significant price discovery function with respect to
regulated markets, the Commission shall consider, as appropriate:</text>
<subparagraph id="HF1685F26A626472CB3A60A5FDD253214"><enum>(A)</enum><header>Price
linkage</header><text>The extent to which the swap uses or otherwise relies on
a daily or final settlement price, or other major price parameter, of another
contract traded on a regulated market based upon the same underlying commodity,
to value a position, transfer or convert a position, financially settle a
position, or close out a position.</text>
</subparagraph><subparagraph id="HCE037903EEB041358846D77B721D2BCD"><enum>(B)</enum><header>Arbitrage</header><text>The
extent to which the price for the swap is sufficiently related to the price of
another contract traded on a regulated market based upon the same underlying
commodity so as to permit market participants to effectively arbitrage between
the markets by simultaneously maintaining positions or executing trades in the
swaps on a frequent and recurring basis.</text>
</subparagraph><subparagraph id="HDE1B2E49691A402A8304812D52CCD3F1"><enum>(C)</enum><header>Material price
reference</header><text>The extent to which, on a frequent and recurring basis,
bids, offers, or transactions in a contract traded on a regulated market are
directly based on, or are determined by referencing, the price generated by the
swap.</text>
</subparagraph><subparagraph id="H1D20097FD60E47879D73674AE58A65BD"><enum>(D)</enum><header>Material
liquidity</header><text>The extent to which the volume of swaps being traded in
the commodity is sufficient to have a material effect on another contract
traded on a regulated market.</text>
</subparagraph><subparagraph id="H54FC932647FD4FC0A96B446516E0E62B"><enum>(E)</enum><header>Other material
factors</header><text>Such other material factors as the Commission specifies
by rule or regulation as relevant to determine whether a swap serves a
significant price discovery function with respect to a regulated market.</text>
</subparagraph></paragraph><paragraph id="HCE192874FB89429F8D5FC60CA7ADB923"><enum>(5)</enum><header>Economically
equivalent contracts</header>
<subparagraph id="HC03E3564E32540F7877BF0C734EC2BD2"><enum>(A)</enum><text>Notwithstanding
any other provision of this section, the Commission shall establish limits on
the amount of positions, including aggregate position limits, as appropriate,
other than bona fide hedge positions, that may be held by any person with
respect to swaps that are economically equivalent to contracts of sale for
future delivery or to options on the contracts or commodities traded on or
subject to the rules of a designated contract market subject to paragraph
(2).</text>
</subparagraph><subparagraph id="H9087D1626E8D49038DBDA140CFCF14A9"><enum>(B)</enum><text>In establishing
limits pursuant to subparagraph (A), the Commission shall—</text>
<clause id="H23692B5D95854AAFB1C4ECBF6A43B4DE"><enum>(i)</enum><text>develop the limits
concurrently with limits established under paragraph (2), and the limits shall
have similar requirements as under paragraph (3)(B); and</text>
</clause><clause id="HBDAD642E3D164D00A733A189B68F3C2F"><enum>(ii)</enum><text>establish the
limits simultaneously with limits established under paragraph (2).</text>
</clause></subparagraph></paragraph><paragraph id="H674B1ABC26BD4DB3ABC955254930145C"><enum>(6)</enum><header>Aggregate
position limits</header><text>The Commission shall, by rule or regulation,
establish limits (including related hedge exemption provisions) on the
aggregate number or amount of positions in contracts based upon the same
underlying commodity (as defined by the Commission) that may be held by any
person, including any group or class of traders, for each month across—</text>
<subparagraph id="HB3E63B65B33247F4B3CCCC85922A2F02"><enum>(A)</enum><text>contracts listed
by designated contract markets;</text>
</subparagraph><subparagraph id="HEC7F0003E9FB435294CA88A2DB1F651D"><enum>(B)</enum><text>with respect to an
agreement contract, or transaction that settles against any price (including
the daily or final settlement price) of 1 or more contracts listed for trading
on a registered entity, contracts traded on a foreign board of trade that
provides members or other participants located in the United States with direct
access to its electronic trading and order matching system; and</text>
</subparagraph><subparagraph id="H53A60CB100C84F29A0A8383F4B8DDCA7"><enum>(C)</enum><text>swap contracts
that perform or affect a significant price discovery function with respect to
regulated entities.</text>
</subparagraph></paragraph><paragraph id="H1D018DD7E5E4469D8C6B129D9B3A6AE3"><enum>(7)</enum><header>Exemptions</header><text>The
Commission, by rule, regulation, or order, may exempt, conditionally or
unconditionally, any person or class of persons, any swap or class of swaps,
any contract of sale of a commodity for future delivery or class of such
contracts, any option or class of options, or any transaction or class of
transactions from any requirement it may establish under this section with
respect to position
limits.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBD4E5B2A7FE54BCFA4B3AD6E0DA14BB3"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 4a(b) of the Commodity Exchange Act (7 U.S.C.
6a(b)) is amended—</text>
<paragraph id="HE3E8986AE6914A648F2C4CE3B06394C5"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>or derivatives transaction execution facility or facilities
or electronic trading facility</quote> and inserting <quote>or swap execution
facility or facilities</quote>; and</text>
</paragraph><paragraph id="H076E2B2B3BA04BF49D028D84F88B24B4"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>or derivatives transaction execution facility or facilities
or electronic trading facility</quote> and inserting <quote>or swap execution
facility</quote>.</text>
</paragraph></subsection><subsection id="H0DA3407217D841CDA13AED535AB231ED"><enum>(c)</enum><header>Bona fide
hedging transaction</header><text>Section 4a(c) of the Commodity Exchange Act
is amended—</text>
<paragraph id="H62F223313F2449BFAED730E1BCBB0D80"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> after <quote>(c)</quote>; and</text>
</paragraph><paragraph id="H3FF19DEE3BB6498297161309B082704A"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H712270A50CB34BFDB18D1FDA33ED06B3" style="OLC">
<paragraph id="H6844D49DEB8C41589F2DA210733F3DA5"><enum>(2)</enum><text>For the purposes
of implementation of subsection (a)(2) for contracts of sale for future
delivery or options on the contracts or commodities, the Commission shall
define what constitutes a bona fide hedging transaction or position as a
transaction or position that—</text>
<subparagraph id="H6ADA7965796F476AA6C53AF2C5AAF2CE"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H92BEFA084243431E97F8FC98C1459AE2"><enum>(i)</enum><text>represents a substitute
for transactions made or to be made or positions taken or to be taken at a
later time in a physical marketing channel;</text>
</clause><clause id="HA9D737C0960E40F4B4E461C478E3E774" indent="up1"><enum>(ii)</enum><text>is economically appropriate to the
reduction of risks in the conduct and management of a commercial enterprise;
and</text>
</clause><clause id="H4CBE9D82D59F48E48EB91A3B13F0A9E8" indent="up1"><enum>(iii)</enum><text>arises from the potential change
in the value of—</text>
<subclause id="H57A67AE77E004460BD88DD83E217766D"><enum>(I)</enum><text>assets that a person owns, produces,
manufactures, processes, or merchandises or anticipates owning, producing,
manufacturing, processing, or merchandising;</text>
</subclause><subclause id="H695C596CCC2747E78D7F8D7826985077"><enum>(II)</enum><text>liabilities that a person owns or
anticipates incurring; or</text>
</subclause><subclause id="H79D089A942C143639FE8AD5E774D9F0D"><enum>(III)</enum><text>services that a person provides,
purchases, or anticipates providing or purchasing; or</text>
</subclause></clause></subparagraph><subparagraph id="H3CA0A81E847C4EC58E4B74A0374C2354"><enum>(B)</enum><text>reduces risks
attendant to a position resulting from a swap that—</text>
<clause id="HCF680EDD2A764EC6B34A968E95A38481"><enum>(i)</enum><text>was executed
opposite a counterparty for which the transaction would qualify as a bona fide
hedging transaction pursuant to subparagraph (A); or</text>
</clause><clause id="H9944ED1435D148F7B6ED2A0CA75358FD"><enum>(ii)</enum><text>meets the
requirements of subparagraph
(A).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2F9051DFCF664ABBA46686B897B10731"><enum>(d)</enum><header>Effective
date</header><text>This section and the amendments made by this section shall
become effective on the date of the enactment of this section.</text>
</subsection></section><section id="H556EF3B1C3A6444094D674C8F3FC8E13"><enum>738.</enum><header>Foreign boards
of trade</header>
<subsection id="HEDCFE6DDDA6A4ADFAF063356D99BA742"><enum>(a)</enum><header>In
general</header><text>Section 4(b) of the Commodity Exchange Act (7 U.S.C.
6(b)) is amended—</text>
<paragraph id="HC5F2D16445384A9FB5A45CC640AF61C7"><enum>(1)</enum><text>in the first
sentence, by striking <quote>The Commission</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H35779A0207364F08AC9C7A40B39A6B63" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H63C16285E8CF4B7999721867CBE12884"><enum>(2)</enum><header display-inline="yes-display-inline">Persons located in the United
States</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H0BE3FF7AC4034C7292330522D964C167"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>The
Commission</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC63549498E0445E98D460C729AACF9F8"><enum>(2)</enum><text>in the second
sentence, by striking <quote>Such rules and regulations</quote> and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H8FDE883CC8A74DAD8B99255B7CE6C41E" style="OLC">
<subparagraph id="HA6E371AF511B4CE0801AD59AE790A88C"><enum>(B)</enum><header>Different
requirements</header><text>Rules and regulations described in subparagraph
(A)</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H953B561E1C7B44B8A08DD063CCA81FA7"><enum>(3)</enum><text>in the third
sentence—</text>
<subparagraph id="HCCB1F3415C79487DBA8391A2F20FA348"><enum>(A)</enum><text>by striking
<quote>No rule or regulation</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H235447D922A34217A5C9A99B9FC18E01" style="OLC">
<subparagraph id="HA17196DDF08641EABA6C1AA7EDBF4145"><enum>(C)</enum><header>Prohibition</header><text>Except
as provided in paragraphs (1) and (2), no rule or
regulation</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H1426724671254DA39034B786E1C98EBF"><enum>(B)</enum><text>by striking
<quote>that (1) requires</quote> and inserting the following: “that—</text>
<quoted-block display-inline="no-display-inline" id="H241500DF8F3F4EAE94FDEB3811506369" style="OLC">
<clause id="H67BCB2BDBABD45068CC572B094434FCB"><enum>(i)</enum><text>requires</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H146C6A439DDA4A3E8CEF37F96C772041"><enum>(C)</enum><text>by striking
<quote>market, or (2) governs</quote> and inserting the following: “market;
or</text>
<quoted-block display-inline="no-display-inline" id="H7C70768DC5B3465EB29BA757B1E161DF" style="OLC">
<clause id="H26B6D5AB02E54C438E6E99EDE3B6ED42"><enum>(ii)</enum><text>governs</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA5229E2D438243928FDAE0C8985AF59B"><enum>(4)</enum><text>by inserting
before paragraph (2) (as designated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HBED9B9B2B76A423797C7DCFF85F52249" style="OLC">
<paragraph id="H39DF010F3B064A8DAF91FE738174AFEF"><enum>(1)</enum><header>Foreign Boards
of trade</header>
<subparagraph id="H462398DA455240BFB8DE7CCDA35B0ED1"><enum>(A)</enum><header>Registration</header><text>The
Commission may adopt rules and regulations requiring registration with the
Commission for a foreign board of trade that provides the members of the
foreign board of trade or other participants located in the United States with
direct access to the electronic trading and order matching system of the
foreign board of trade, including rules and regulations prescribing procedures
and requirements applicable to the registration of such foreign boards of
trade. For purposes of this paragraph, ‘direct access’ refers to an explicit
grant of authority by a foreign board of trade to an identified member or other
participant located in the United States to enter trades directly into the
trade matching system of the foreign board of trade. In adopting such rules and
regulations, the commission shall consider—</text>
<clause id="H6E8F5479D7A744D0B977AE59ADCF1FFC"><enum>(i)</enum><text>whether any such
foreign board of trade is subject to comparable, comprehensive supervision and
regulation by the appropriate governmental authorities in the foreign board of
trade's home country; and</text>
</clause><clause id="H176BE97BDAA34F2F96FD2DC3F2A429B3"><enum>(ii)</enum><text>any previous
commission findings that the foreign board of trade is subject to comparable
comprehensive supervision and regulation by the appropriate government
authorities in the foreign board of trade's home country.</text>
</clause></subparagraph><subparagraph id="HE7456E021F5B440388761E41440EA196"><enum>(B)</enum><header>Linked
contracts</header><text>The Commission may not permit a foreign board of trade
to provide to the members of the foreign board of trade or other participants
located in the United States direct access to the electronic trading and
order-matching system of the foreign board of trade with respect to an
agreement, contract, or transaction that settles against any price (including
the daily or final settlement price) of 1 or more contracts listed for trading
on a registered entity, unless the Commission determines that—</text>
<clause id="HC65404548C2E46C9891F0DB5477EAD9D"><enum>(i)</enum><text>the foreign board
of trade makes public daily trading information regarding the agreement,
contract, or transaction that is comparable to the daily trading information
published by the registered entity for the 1 or more contracts against which
the agreement, contract, or transaction traded on the foreign board of trade
settles; and</text>
</clause><clause id="HEBE262FA8CB34F299BBDCE410D174E69"><enum>(ii)</enum><text>the foreign board
of trade (or the foreign futures authority that oversees the foreign board of
trade)—</text>
<subclause id="H3CB643F670B54C369C1FC2F0AF88E7CA"><enum>(I)</enum><text>adopts position
limits (including related hedge exemption provisions) for the agreement,
contract, or transaction that are comparable to the position limits (including
related hedge exemption provisions) adopted by the registered entity for the 1
or more contracts against which the agreement, contract, or transaction traded
on the foreign board of trade settles;</text>
</subclause><subclause id="H90EA5B8FBF934B25A05E3AB2EF36F819"><enum>(II)</enum><text>has the authority
to require or direct market participants to limit, reduce, or liquidate any
position the foreign board of trade (or the foreign futures authority that
oversees the foreign board of trade) determines to be necessary to prevent or
reduce the threat of price manipulation, excessive speculation as described in
section 4a, price distortion, or disruption of delivery or the cash settlement
process;</text>
</subclause><subclause id="H13CBFCEA6E4647448E5C7753127DA950"><enum>(III)</enum><text>agrees to
promptly notify the Commission, with regard to the agreement, contract, or
transaction that settles against any price (including the daily or final
settlement price) of 1 or more contracts listed for trading on a registered
entity, of any change regarding—</text>
<item id="H709E6ABFCA204CC6920EDBE5A1332F67"><enum>(aa)</enum><text>the
information that the foreign board of trade will make publicly
available;</text>
</item><item id="H49977A87785142C99EB99B41279035E5"><enum>(bb)</enum><text>the
position limits that the foreign board of trade or foreign futures authority
will adopt and enforce;</text>
</item><item id="HBF864EE1A0154A179FA183591BFA032B"><enum>(cc)</enum><text>the
position reductions required to prevent manipulation, excessive speculation as
described in section 4a, price distortion, or disruption of delivery or the
cash settlement process; and</text>
</item><item id="H817875C54AC84D3ABF61B016DA1954FD"><enum>(dd)</enum><text>any
other area of interest expressed by the Commission to the foreign board of
trade or foreign futures authority;</text>
</item></subclause><subclause id="H303D2A88C30246A8A6E8D827FE50685C"><enum>(IV)</enum><text>provides
information to the Commission regarding large trader positions in the
agreement, contract, or transaction that is comparable to the large trader
position information collected by the Commission for the 1 or more contracts
against which the agreement, contract, or transaction traded on the foreign
board of trade settles; and</text>
</subclause><subclause id="H7E3E5D56ABC74FF380476185B7DA5E2E"><enum>(V)</enum><text>provides the
Commission such information as is necessary to publish reports on aggregate
trader positions for the agreement, contract, or transaction traded on the
foreign board of trade that are comparable to such reports on aggregate trader
positions for the 1 or more contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles.</text>
</subclause></clause></subparagraph><subparagraph id="H4B6F9D1FBC0A4B23B9BD617C0D8FD9DA"><enum>(C)</enum><header>Existing foreign
boards of trade</header><text>Subparagraphs (A) and (B) shall not be effective
with respect to any foreign board of trade to which, prior to the date of
enactment of this paragraph, the Commission granted direct access permission
until the date that is 180 days after that date of
enactment.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4341F4154EDC4848A6B00E69239A953E"><enum>(b)</enum><header>Liability of
registered persons trading on a foreign board of trade</header><text>Section 4
of the Commodity Exchange Act (7 U.S.C. 6) is amended—</text>
<paragraph id="H1B794FE9131D47BDA43ED2C31CC8539A"><enum>(1)</enum><text>in subsection (a),
in the matter preceding paragraph (1), by inserting <quote>or by subsection
(e)</quote> after <quote>Unless exempted by the Commission pursuant to
subsection (c)</quote>; and</text>
</paragraph><paragraph commented="no" id="H8DD909425CFC499E9F0C0B767DDB24B1"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBBC2C54B53DC4564B712EE309969BEB5" style="OLC">
<subsection id="H6ED75CB21CD046BF8903C255F17CE913"><enum>(e)</enum><header>Liability of
registered persons trading on a foreign board of trade</header>
<paragraph id="H73374D8FE701422DBAD9EAFE563CE3B4"><enum>(1)</enum><header>In
general</header><text>A person registered with the Commission, or exempt from
registration by the Commission, under this Act may not be found to have
violated subsection (a) with respect to a transaction in, or in connection
with, a contract of sale of a commodity for future delivery if the
person—</text>
<subparagraph id="HD8C29E31A247494C99ED2E8822792C67"><enum>(A)</enum><text>has reason to
believe that the transaction and the contract is made on or subject to the
rules of a foreign board of trade that is—</text>
<clause id="H2DCFF74B4BBD463586D7E97E2A683F44"><enum>(i)</enum><text>legally organized
under the laws of a foreign country;</text>
</clause><clause id="H9F6774A8C3C9405197874486A3A42987"><enum>(ii)</enum><text>authorized to act
as a board of trade by a foreign futures authority; and</text>
</clause><clause id="H3332248DE697475981DC15528B4F5293"><enum>(iii)</enum><text>subject to
regulation by the foreign futures authority; and</text>
</clause></subparagraph><subparagraph id="H6BFC51AB53B9496393399E84F7CCD62C"><enum>(B)</enum><text>has not been
determined by the Commission to be operating in violation of subsection
(a).</text>
</subparagraph></paragraph><paragraph id="HAEE9DBFEC09541D28B18DBF44C2EB2DD"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this subsection shall be construed as
implying or creating any presumption that a board of trade, exchange, or market
is located outside the United States, or its territories or possessions, for
purposes of subsection (a).</text>
</paragraph></subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H66F880D5C11049E5AC9401F8FCDCE001"><enum>(c)</enum><header>Contract
enforcement for foreign futures contracts</header><text>Section 22(a) of the
Commodity Exchange Act (7 U.S.C. 25(a)) (as amended by section 739) is amended
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H28D1223EF9924E7C9612737DB1730054" style="OLC">
<paragraph id="HD707F8A4C734438584D394635CE4685E" indent="up1"><enum>(6)</enum><header>Contract enforcement for foreign
futures contracts</header><text>A contract of sale of a commodity for future
delivery traded or executed on or through the facilities of a board of trade,
exchange, or market located outside the United States for purposes of section
4(a) shall not be void, voidable, or unenforceable, and a party to such a
contract shall not be entitled to rescind or recover any payment made with
respect to the contract, based on the failure of the foreign board of trade to
comply with any provision of this
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H1A619647E9B7466795717783D03B4E5E"><enum>739.</enum><header>Legal certainty
for swaps</header><text display-inline="no-display-inline">Section 22(a) of the
Commodity Exchange Act (7 U.S.C. 25(a)) is amended by striking paragraph (4)
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9DFA36E1EDBF413F802BE9102ED2C969" style="OLC">
<paragraph id="H9BE11E080D5240A19FB3C8F4B18D331B" indent="up1"><enum>(4)</enum><header>Contract enforcement between
eligible counterparties</header>
<subparagraph id="H1FFAB6BE61CD4F91896CA8E841C7F261"><enum>(A)</enum><header>In general</header><text>No hybrid
instrument sold to any investor shall be void, voidable, or unenforceable, and
no party to a hybrid instrument shall be entitled to rescind, or recover any
payment made with respect to, the hybrid instrument under this section or any
other provision of Federal or State law, based solely on the failure of the
hybrid instrument to comply with the terms or conditions of section 2(f) or
regulations of the Commission.</text>
</subparagraph><subparagraph id="HE89D36E2957F499092A919B1E4483B52"><enum>(B)</enum><header>Swaps</header><text>No agreement,
contract, or transaction between eligible contract participants or persons
reasonably believed to be eligible contract participants shall be void,
voidable, or unenforceable, and no party to such agreement, contract, or
transaction shall be entitled to rescind, or recover any payment made with
respect to, the agreement, contract, or transaction under this section or any
other provision of Federal or State law, based solely on the failure of the
agreement, contract, or transaction—</text>
<clause id="H53CC018817C749B4BA6F876E69F7A248"><enum>(i)</enum><text>to meet the definition of a swap
under section 1a; or</text>
</clause><clause id="H7F32FF135ADB4677872B27C427D9D79B"><enum>(ii)</enum><text>to be cleared in accordance with
section 2(h)(1).</text>
</clause></subparagraph></paragraph><paragraph id="H51D7475F52DE4E58BC52D3BEC230ED39" indent="up1"><enum>(5)</enum><header>Legal certainty for long-term swaps
entered into before the date of enactment of the Wall Street Transparency and
Accountability Act of 2010</header>
<subparagraph id="H26AF4FD9D1664A7BA7D6F96D32EE594B"><enum>(A)</enum><header>Effect on swaps</header><text>Unless
specifically reserved in the applicable swap, neither the enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>, nor any requirement under that Act or an amendment
made by that Act, shall constitute a termination event, force majeure,
illegality, increased costs, regulatory change, or similar event under a swap
(including any related credit support arrangement) that would permit a party to
terminate, renegotiate, modify, amend, or supplement 1 or more transactions
under the swap.</text>
</subparagraph><subparagraph id="H32619A59DD4D430EA3AC2E7BB8B89E4E"><enum>(B)</enum><header>Position limits</header><text>Any
position limit established under the Wall Street Transparency and
Accountability Act of 2010 shall not apply to a position acquired in good faith
prior to the effective date of any rule, regulation, or order under the Act
that establishes the position limit; provided, however, that such positions
shall be attributed to the trader if the trader’s position is increased after
the effective date of such position limit rule, regulation, or
order.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB66A35AF36CB4A96AED8C15DA9E06C15"><enum>740.</enum><header>Multilateral
clearing organizations</header><text display-inline="no-display-inline">Sections 408 and 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4421, 4422) are
repealed.</text>
</section><section id="HE881D0C83DCB48BEAB4F99305AAF01D4"><enum>741.</enum><header>Enforcement</header>
<subsection id="HA8AD57107C8C471ABFC0DDF52395B17B"><enum>(a)</enum><header>Enforcement
authority</header><text>The <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name> is amended by inserting after section 4b (7 U.S.C. 6b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H1F7ADEE5CF274CFB81B6CDE4F9A02201" style="OLC">
<section id="H16D8A6ABD02C4EF897CCF814E0CC08CB"><enum>4b–1.</enum><header>Enforcement
authority</header>
<subsection id="HD73648B863824A92B074042EA27501EA"><enum>(a)</enum><header>Commodity
Futures Trading Commission</header><text>Except as provided in subsections (b),
(c), and (d), the Commission shall have exclusive authority to enforce the
provisions of subtitle A of the Wall Street Transparency and Accountability Act
of 2010 with respect to any person.</text>
</subsection><subsection id="HFCBFD833CC6A45BE9FF1EF730C2D491B"><enum>(b)</enum><header>Prudential
regulators</header><text>The prudential regulators shall have exclusive
authority to enforce the provisions of section 4s(e) with respect to swap
dealers or major swap participants for which they are the prudential
regulator.</text>
</subsection><subsection id="H5B71CD547E3D4D14A465BD27245563CA"><enum>(c)</enum><header>Referrals</header>
<paragraph id="H34649E6E2AC249458018DD0B9522A316"><enum>(1)</enum><header>Prudential
regulators</header><text>If the prudential regulator for a swap dealer or major
swap participant has cause to believe that the swap dealer or major swap
participant, or any affiliate or division of the swap dealer or major swap
participant, may have engaged in conduct that constitutes a violation of the
nonprudential requirements of this Act (including section 4s or rules adopted
by the Commission under that section), the prudential regulator may promptly
notify the Commission in a written report that includes—</text>
<subparagraph id="H1B5C49C97C4842A7BD0311603755168D"><enum>(A)</enum><text>a request that the
Commission initiate an enforcement proceeding under this Act; and</text>
</subparagraph><subparagraph id="H5DDDD06708C440E696D50F7FCA8718D2"><enum>(B)</enum><text>an explanation of
the facts and circumstances that led to the preparation of the written
report.</text>
</subparagraph></paragraph><paragraph id="H5B78F5D52107421DA5DE9C0BF6BA175B"><enum>(2)</enum><header>Commission</header><text>If
the Commission has cause to believe that a swap dealer or major swap
participant that has a prudential regulator may have engaged in conduct that
constitutes a violation of any prudential requirement of section 4s or rules
adopted by the Commission under that section, the Commission may notify the
prudential regulator of the conduct in a written report that includes—</text>
<subparagraph id="HA1F96231B396461DA404CBB8A4353D1B"><enum>(A)</enum><text>a request that the
prudential regulator initiate an enforcement proceeding under this Act or any
other Federal law (including regulations); and</text>
</subparagraph><subparagraph id="HC98637522B5A44769D4B7074D2E4C852"><enum>(B)</enum><text>an explanation of
the concerns of the Commission, and a description of the facts and
circumstances, that led to the preparation of the written report.</text>
</subparagraph></paragraph></subsection><subsection id="H82EF5073D35D4D1C98AED1E0E8FD0C8C"><enum>(d)</enum><header>Backstop
enforcement authority</header>
<paragraph id="HC837401647954050A385AE8C9333C989"><enum>(1)</enum><header>Initiation of
enforcement proceeding by prudential regulator</header><text>If the Commission
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the Commission receives a written report under
subsection (c)(1), the prudential regulator may initiate an enforcement
proceeding.</text>
</paragraph><paragraph id="HEDF251B5F035430AAEA60CA40F973311"><enum>(2)</enum><header>Initiation of
enforcement proceeding by Commission</header><text>If the prudential regulator
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the prudential regulator receives a written
report under subsection (c)(2), the Commission may initiate an enforcement
proceeding.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H26E4DB5246854932AF76502A352BD730"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HB0302CE59EC84E6391FCB2F5ABBA85AF"><enum>(1)</enum><text>Section 4b of the
Commodity Exchange Act (7 U.S.C. 6b) is amended—</text>
<subparagraph id="H74F79B0179BD45D8A2F2D8CD78C3E781"><enum>(A)</enum><text>in subsection
(a)(2), by striking <quote>or other agreement, contract, or transaction subject
to paragraphs (1) and (2) of section 5a(g),</quote> and inserting <quote>or
swap,</quote>;</text>
</subparagraph><subparagraph id="H33B5277A49E64B32AE914F9497604BB8"><enum>(B)</enum><text>in subsection (b),
by striking <quote>or other agreement, contract or transaction subject to
paragraphs (1) and (2) of section 5a(g),</quote> and inserting <quote>or
swap,</quote>; and</text>
</subparagraph><subparagraph id="HB1E4F0072384406FAD7F2916BE5B6D73"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE5ED1F23A01145E88A4F5D8770B3FBBE" style="OLC">
<subsection id="HA3831BFF9B0C4514B0B7D57BE470E207"><enum>(e)</enum><text>It shall be
unlawful for any person, directly or indirectly, by the use of any means or
instrumentality of interstate commerce, or of the mails, or of any facility of
any registered entity, in or in connection with any order to make, or the
making of, any contract of sale of any commodity for future delivery (or option
on such a contract), or any swap, on a group or index of securities (or any
interest therein or based on the value thereof)—</text>
<paragraph id="H7034C2360BDB4BC6B12B61102AE5D16C"><enum>(1)</enum><text>to employ any
device, scheme, or artifice to defraud;</text>
</paragraph><paragraph id="HA2CD479FB01F47D3B5F5B48F6ABB1B46"><enum>(2)</enum><text>to make any untrue
statement of a material fact or to omit to state a material fact necessary in
order to make the statements made, in the light of the circumstances under
which they were made, not misleading; or</text>
</paragraph><paragraph id="H7A0FC306FD2145748243B43CEB515FD7"><enum>(3)</enum><text>to engage in any
act, practice, or course of business which operates or would operate as a fraud
or deceit upon any
person.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA42CFFFA6E944913B5AA6B37FEB12BD5"><enum>(2)</enum><text>Section 4c(a)(1)
of the Commodity Exchange Act (7 U.S.C. 6c(a)(1)) is amended by inserting
<quote>or swap</quote> before <quote>if the transaction is used or may be
used</quote>.</text>
</paragraph><paragraph id="H89815DF5C1C244EA8B88E9D6E6345D8E"><enum>(3)</enum><text>Section 6(c) of
the Commodity Exchange Act (7 U.S.C. 9) is amended in the first sentence by
inserting <quote>or of any swap,</quote> before <quote>or has willfully
made</quote>.</text>
</paragraph><paragraph id="H78AD02CBBDAC4D6AAA5E4E3232C51831"><enum>(4)</enum><text>Section 6(d) of
the Commodity Exchange Act (7 U.S.C. 13b) is amended in the first sentence, in
the matter preceding the proviso, by inserting <quote>or of any swap,</quote>
before <quote>or otherwise is violating</quote>.</text>
</paragraph><paragraph id="HB3C013A0E29F417790E04A870B60A618"><enum>(5)</enum><text>Section 6c(a) of
the Commodity Exchange Act (7 U.S.C. 13a–1(a)) is amended in the matter
preceding the proviso by inserting <quote>or any swap</quote> after
<quote>commodity for future delivery</quote>.</text>
</paragraph><paragraph id="H35D87271CEC74C5296B0771D7F6C5BDD"><enum>(6)</enum><text>Section 9 of the
Commodity Exchange Act (7 U.S.C. 13) is amended—</text>
<subparagraph id="H658E77E70346478BA6EA68D3E256BF87"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H1604A4733C2C4DCBB9C575FEB5CD1335"><enum>(i)</enum><text>in
paragraph (2), by inserting <quote>or of any swap,</quote> before <quote>or to
corner</quote>; and</text>
</clause><clause id="H3886291A9301408D951A8CA13F8CF3EF"><enum>(ii)</enum><text>in
paragraph (4), by inserting <quote>swap data repository,</quote> before
<quote>or futures association</quote> and</text>
</clause></subparagraph><subparagraph id="H2676692C306A483EB34714C61956C7E2"><enum>(B)</enum><text>in subsection
(e)(1)—</text>
<clause id="HC762213803E3421FB1D3926B4F530FB7"><enum>(i)</enum><text>by
inserting <quote>swap data repository,</quote> before <quote>or registered
futures association</quote>; and</text>
</clause><clause id="H18820B6A27564C2183098CFDF2B7FCE6"><enum>(ii)</enum><text>by
inserting <quote>, or swaps,</quote> before <quote>on the basis</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="H6F2B1A159802416B88D3F2ABF4C3929E"><enum>(7)</enum><text>Section 9(a) of
the Commodity Exchange Act (7 U.S.C. 13(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA9EEFC12B5714C4DA4F59FA2F57FD5AF" style="OLC">
<paragraph id="HF27C0D84BCF444B987519868538BA088"><enum>(6)</enum><text>Any person to
abuse the end user clearing exemption under section 2(h)(4), as determined by
the
Commission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAAFD8C4C89484BC0814F5995974988E6"><enum>(8)</enum><text>Section 2(c)(2)(B)
of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)) is amended—</text>
<subparagraph id="HBB27B2462157447A991F39DFC67FFE27"><enum>(A)</enum><text>by striking
<quote>(dd),</quote> each place it appears;</text>
</subparagraph><subparagraph id="H752996BEB77C455388CEE47298EAC150"><enum>(B)</enum><text>in clause (iii),
by inserting <quote>, and accounts or pooled investment vehicles described in
clause (vi),</quote> before <quote>shall be subject to</quote>; and</text>
</subparagraph><subparagraph id="H031625B68AE64839968022FE7E33173D"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H98BFC6540DB44606AB10C021541C6957" style="OLC">
<clause id="HBE2BDC50C8174CB99B68192ADC3A07D8"><enum>(vi)</enum><text>This Act applies
to, and the Commission shall have jurisdiction over, an account or pooled
investment vehicle that is offered for the purpose of trading, or that trades,
any agreement, contract, or transaction in foreign currency described in clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2535CFAA6A6F431C929D902C315A4857"><enum>(9)</enum><text>Section 2(c)(2)(C)
of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(C)) is amended—</text>
<subparagraph id="HD0322FF4853E4742A92A8A7CF2B3BDC9"><enum>(A)</enum><text>by striking
<quote>(dd),</quote> each place it appears;</text>
</subparagraph><subparagraph id="HA75B2AE7C9E446C6A765672D43CFB398"><enum>(B)</enum><text>in clause (ii)(I),
by inserting <quote>, and accounts or pooled investment vehicles described in
clause (vii),</quote> before <quote>shall be subject to</quote>; and</text>
</subparagraph><subparagraph id="H39D52762CCD04FFB96EA5A4C956EF6EC"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6289B299735A48A586C62A13A59C4600" style="OLC">
<clause id="H2E36BF600D0742DB8918135736F88912"><enum>(vii)</enum><text>This Act applies
to, and the Commission shall have jurisdiction over, an account or pooled
investment vehicle that is offered for the purpose of trading, or that trades,
any agreement, contract, or transaction in foreign currency described in clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HDAE3AA380B9C43E9BDF2CFAA7D507FCA"><enum>(10)</enum><text>Section
1a(19)(A)(iv)(II) of the Commodity Exchange Act (7 U.S.C. 1a(19)(A)(iv)(II))
(as redesignated by section 721(a)(1)) is amended by inserting before the
semicolon at the end the following: <quote>provided, however, that for purposes
of section 2(c)(2)(B)(vi) and section 2(c)(2)(C)(vii), the term <term>eligible
contract participant</term> shall not include a commodity pool in which any
participant is not otherwise an eligible contract participant</quote>.</text>
</paragraph><paragraph id="H707C705DABF14419A21B124C56AB508B"><enum>(11)</enum><text>Section 6(e) of
the Commodity Exchange Act (7 U.S.C. 9a) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD1884D89CA9E4355B17283C0742793F2" style="OLC">
<paragraph id="H6EC2026471534034A7950FCC4EF4442D"><enum>(4)</enum><text>Any designated
clearing organization that knowingly or recklessly evades or participates in or
facilitates an evasion of the requirements of section 2(h) shall be liable for
a civil money penalty in twice the amount otherwise available for a violation
of section 2(h).</text>
</paragraph><paragraph id="H424DE7FDF35C463796E8797047E0920B"><enum>(5)</enum><text>Any swap dealer or
major swap participant that knowingly or recklessly evades or participates in
or facilitates an evasion of the requirements of section 2(h) shall be liable
for a civil money penalty in twice the amount otherwise available for a
violation of section
2(h).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H440A3B3D5F0A42B38E166D6120D78119"><enum>(c)</enum><header>Savings
clause</header><text>Notwithstanding any other provision of this title, nothing
in this subtitle shall be construed as divesting any appropriate Federal
banking agency of any authority it may have to establish or enforce, with
respect to a person for which such agency is the appropriate Federal banking
agency, prudential or other standards pursuant to authority granted by Federal
law other than this title.</text>
</subsection></section><section id="H1096C5D2EC4C483E8C4DB0AE41D0DCEA"><enum>742.</enum><header>Retail
commodity transactions</header>
<subsection id="HC05B3A9115314293B48612B1C6ED221C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 2(c) of the
Commodity Exchange Act (7 U.S.C. 2(c)) is amended—</text>
<paragraph id="H1C672B652A7C4B84A4D55048F17DDF0E"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>5a (to the extent provided in section 5a(g)), 5b, 5d, or
12(e)(2)(B))</quote> and inserting <quote>, 5b, or 12(e)(2)(B))</quote>;
and</text>
</paragraph><paragraph id="H0D6846BB4E58420BB48CC26D9C95F4CE"><enum>(2)</enum><text>in paragraph (2),
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4C2BD9B5E4F447A4BB6B8EE1FCF55B81" style="OLC">
<subparagraph id="HA9C5413870B44119931F743014CFD1D2"><enum>(D)</enum><header>Retail commodity
transactions</header>
<clause id="HB3F654000B944575B79816A9032F7DDB"><enum>(i)</enum><header>Applicability</header><text>Except
as provided in clause (ii), this subparagraph shall apply to any agreement,
contract, or transaction in any commodity that is—</text>
<subclause id="H347065ADFBBA41F9B68807D96B68E1BE"><enum>(I)</enum><text>entered into with,
or offered to (even if not entered into with), a person that is not an eligible
contract participant or eligible commercial entity; and</text>
</subclause><subclause id="H43A46C99E33E4043B668111B136E9CA8"><enum>(II)</enum><text>entered into, or
offered (even if not entered into), on a leveraged or margined basis, or
financed by the offeror, the counterparty, or a person acting in concert with
the offeror or counterparty on a similar basis.</text>
</subclause></clause><clause id="H35D9A7A580BD4321BBA9CB5865ACE342"><enum>(ii)</enum><header>Exceptions</header><text>This
subparagraph shall not apply to—</text>
<subclause id="HACF6FE9D6ACE45C496CC10287D59E253"><enum>(I)</enum><text>an agreement,
contract, or transaction described in paragraph (1) or subparagraphs (A), (B),
or (C), including any agreement, contract, or transaction specifically excluded
from subparagraph (A), (B), or (C);</text>
</subclause><subclause id="H0F5A20513A6749458A1FA1BFA74B837D"><enum>(II)</enum><text>any
security;</text>
</subclause><subclause id="HFB1A3A1944D74B23AC3F7A394DECBB1C"><enum>(III)</enum><text>a contract of
sale that—</text>
<item id="H102DD7C945BB473D8395125B4D96C231"><enum>(aa)</enum><text>results in actual
delivery within 28 days or such other longer period as the Commission may
determine by rule or regulation based upon the typical commercial practice in
cash or spot markets for the commodity involved; or</text>
</item><item id="H808B722C09844A4BA4F1F9ADB402B811"><enum>(bb)</enum><text>creates an
enforceable obligation to deliver between a seller and a buyer that have the
ability to deliver and accept delivery, respectively, in connection with the
line of business of the seller and buyer; or</text>
</item></subclause><subclause id="H9A97C449837B410DA26044C0DDF4A518"><enum>(IV)</enum><text>an agreement,
contract, or transaction that is listed on a national securities exchange
registered under section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</subclause><subclause id="H47542B9FB360490EBB3BB3A7345554C1"><enum>(V)</enum><text>an identified
banking product, as defined in section 402(b) of the Legal Certainty for Bank
Products Act of 2000 (7 U.S.C.27(b)).</text>
</subclause></clause><clause id="H512EF5159AD7497F9AF6EE80433C4D8C"><enum>(iii)</enum><header>Enforcement</header><text>Sections
4(a), 4(b), and 4b apply to any agreement, contract, or transaction described
in clause (i), as if the agreement, contract, or transaction was a contract of
sale of a commodity for future delivery.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HADECA505F6C245729B933E151BC82B78"><enum>(iv)</enum><header>Eligible
commercial entity</header><text display-inline="yes-display-inline">For
purposes of this subparagraph, an agricultural producer, packer, or handler
shall be considered to be an eligible commercial entity for any agreement,
contract, or transaction for a commodity in connection with the line of
business of the agricultural producer, packer, or
handler.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBB3888C5257A4B0B9BF226CA7E836543"><enum>(b)</enum><header>Gramm-Leach-Bliley
Act</header><text>Section 206(a) of the Gramm-Leach-Bliley Act (Public Law
106–102; 15 U.S.C. 78c note) is amended, in the matter preceding paragraph (1),
by striking <quote>For purposes of</quote> and inserting <quote>Except as
provided in subsection (e), for purposes of</quote>.</text>
</subsection><subsection id="HF3AA1C3F35B34F54B865AE917B5AAB73"><enum>(c)</enum><header>Conforming
amendments relating to retail foreign exchange transactions</header>
<paragraph id="HC6BA5C562033477DBC2329095FA5DD7C"><enum>(1)</enum><text>Section
2(c)(2)(B)(i)(II) of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(B)(i)(II)) is
amended—</text>
<subparagraph id="HB21BB1CCC57E40B99E6E66300FE781BB"><enum>(A)</enum><text>in item (aa), by
inserting <quote>United States</quote> before <quote>financial
institution</quote>;</text>
</subparagraph><subparagraph id="HCAAB4AA87C4641E5A7D2C883162018B3"><enum>(B)</enum><text>by striking items
(dd) and (ff);</text>
</subparagraph><subparagraph id="H52BBDFCC6C44456C82AA772588AC1CE8"><enum>(C)</enum><text>by redesignating
items (ee) and (gg) as items (dd) and (ff), respectively; and</text>
</subparagraph><subparagraph id="H8817505C2A974AFE938E3D3D33BE8365"><enum>(D)</enum><text>in item (dd) (as
so redesignated), by striking the semicolon and inserting <quote>;
or</quote>.</text>
</subparagraph></paragraph><paragraph id="H1C25D1931F5E4F74BEDA5D9EE03D4A0B"><enum>(2)</enum><text>Section 2(c)(2) of
the Commodity Exchange Act (7 U.S.C. 2(c)(2)) (as amended by subsection (a)(2))
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H467F94D1F5624DAFB2F406DE0761488E" style="OLC">
<subparagraph id="HA64FC6DC4B804B99819597E35EFDC712"><enum>(E)</enum><header>Prohibition</header>
<clause id="H5CDDB3CF4DC244A0B735CB88860B7767"><enum>(i)</enum><header>Definition of
Federal regulatory agency</header><text>In this subparagraph, the term
<term>Federal regulatory agency</term> means—</text>
<subclause id="HF09FA34D05F049B29AFEFACF2D5CBAA6"><enum>(I)</enum><text>the
Commission;</text>
</subclause><subclause id="H2B4004BB9FCA44B0A452C62D7EB1E757"><enum>(II)</enum><text>the Securities
and Exchange Commission;</text>
</subclause><subclause id="H851E932E3C494C808603B18717012886"><enum>(III)</enum><text>an appropriate
Federal banking agency;</text>
</subclause><subclause id="H0C89190393CC407A87982B3D837F1B0A"><enum>(IV)</enum><text>the National
Credit Union Association; and</text>
</subclause><subclause id="HB38CAC3F12DF47148BC619E40BD8B02D"><enum>(V)</enum><text>the Farm Credit
Administration.</text>
</subclause></clause><clause id="HD6DBAE4756094B91A15EC714A011DD9D"><enum>(ii)</enum><header>Prohibition</header>
<subclause id="H75E9834D67084EA0B30D83E6EAC43CFA"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclause (II), a person described
in subparagraph (B)(i)(II) for which there is a Federal regulatory agency shall
not offer to, or enter into with, a person that is not an eligible contract
participant, any agreement, contract, or transaction in foreign currency
described in subparagraph (B)(i)(I) except pursuant to a rule or regulation of
a Federal regulatory agency allowing the agreement, contract, or transaction
under such terms and conditions as the Federal regulatory agency shall
prescribe.</text>
</subclause><subclause id="H3A5A552FFE8D449CA831AF3247AB4239"><enum>(II)</enum><header>Effective
date</header><text>With regard to persons described in subparagraph (B)(i)(II)
for which a Federal regulatory agency has issued a proposed rule concerning
agreements, contracts, or transactions in foreign currency described in
subparagraph (B)(i)(I) prior to the date of enactment of this subclause,
subclause (I) shall take effect 90 days after the date of enactment of this
subclause.</text>
</subclause></clause><clause id="H68E7262A0C7444E0A61F294496AF189A"><enum>(iii)</enum><header>Requirements
of rules and regulations</header>
<subclause id="HC7C53B0E9F5645D785A00701F2CB38B6"><enum>(I)</enum><header>In
general</header><text>The rules and regulations described in clause (ii) shall
prescribe appropriate requirements with respect to—</text>
<item id="H0591E34AF4B4497FB748C0D8F537CB44"><enum>(aa)</enum><text>disclosure;</text>
</item><item id="H15AE4DF71B114D7FA935E57B1F65ADB9"><enum>(bb)</enum><text>recordkeeping;</text>
</item><item id="H1151E96ADE4C463A97C0E2CB6D313380"><enum>(cc)</enum><text>capital and
margin;</text>
</item><item id="HABE8F1FF8E904464A6DD07ABB2DC0E36"><enum>(dd)</enum><text>reporting;</text>
</item><item id="HD5E1FAD1844645BCAA6012BB07573E9B"><enum>(ee)</enum><text>business
conduct;</text>
</item><item id="H56DD4408C9644F1B9B06D9293A2A019D"><enum>(ff)</enum><text>documentation;
and</text>
</item><item id="HCF1D6204D87E46C59F44DAE42E452BDE"><enum>(gg)</enum><text>such other
standards or requirements as the Federal regulatory agency shall determine to
be necessary.</text>
</item></subclause><subclause id="H3BFCB1F81F5947AC91E5A1CECDFC0C48"><enum>(II)</enum><header>Treatment</header><text>The
rules or regulations described in clause (ii) shall treat all agreements,
contracts, and transactions in foreign currency described in subparagraph
(B)(i)(I), and all agreements, contracts, and transactions in foreign currency
that are functionally or economically similar to agreements, contracts, or
transactions described in subparagraph (B)(i)(I),
similarly.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H7F23B9BE89E94BA090BBFBBD13DE299F"><enum>743.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by the amendments made by this subtitle, the amendments made by this
subtitle do not divest any appropriate Federal banking agency, the Commodity
Futures Trading Commission, the Securities and Exchange Commission, or other
Federal or State agency of any authority derived from any other applicable
law.</text>
</section><section id="HBECEC02C411F468A9630A9097E9159F8"><enum>744.</enum><header>Restitution
remedies</header><text display-inline="no-display-inline">Section 6c(d) of the
Commodity Exchange Act (7 U.S.C. 13a–1(d)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H410DBD4E3B2449F1872DBF0207D65F03" style="OLC">
<paragraph id="H7E6A554A36A24A39A1F561C9C23DACF8"><enum>(3)</enum><header>Equitable
remedies</header><text>In any action brought under this section, the Commission
may seek, and the court may impose, on a proper showing, on any person found in
the action to have committed any violation, equitable remedies
including—</text>
<subparagraph id="H2D34EFB33D084E539B178265BC08C451"><enum>(A)</enum><text>restitution to
persons who have sustained losses proximately caused by such violation (in the
amount of such losses); and</text>
</subparagraph><subparagraph id="H0C92A3814EF64E7F83E41D1FAEB4092B"><enum>(B)</enum><text>disgorgement of
gains received in connection with such
violation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H935FBE43F4F9411DBFA13C1C1AC974D6"><enum>745.</enum><header>Enhanced
compliance by registered entities</header>
<subsection id="H0313C6E7CA4F44FF82517E75FD83C880"><enum>(a)</enum><header>Effect of
interpretation</header><text>Section 5c(a) of the Commodity Exchange Act (7
U.S.C. 7a–2(a)) is amended by striking paragraph (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H0F0F7EBCA15D4BFE919EA852E30024EB" style="OLC">
<paragraph id="H6EA33D52E9254EAEBD4FCF5AF660B7BE"><enum>(2)</enum><header>Effect of
interpretation</header><text>An interpretation issued under paragraph (1) may
provide the exclusive means for complying with each section described in
paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H7EE5876829494EC9B5EC9DCB4276FC67"><enum>(b)</enum><header>New contracts,
new rules, and rule amendments</header><text>Section 5c of the Commodity
Exchange Act (7 U.S.C. 7a–2) is amended by striking subsection (c) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC7CEDB60F9B64DB583C19B33FAB2A89C" style="OLC">
<subsection id="HC0BC4EAAAC3547A3BEFE18945F5F9DE7"><enum>(c)</enum><header>New contracts,
new rules, and rule amendments</header>
<paragraph commented="no" id="H3A0D430EC13045A589917A5F10E5358A"><enum>(1)</enum><header>In
general</header><text>A registered entity may elect to list for trading or
accept for clearing any new contract, or other instrument, or may elect to
approve and implement any new rule or rule amendment, by providing to the
Commission (and the Secretary of the Treasury, in the case of a contract of
sale of a government security for future delivery (or option on such a
contract) or a rule or rule amendment specifically related to such a contract)
a written certification that the new contract or instrument or clearing of the
new contract or instrument, new rule, or rule amendment complies with this Act
(including regulations under this Act).</text>
</paragraph><paragraph commented="no" id="H764AFD6819CE441A808BE6F6C911188E"><enum>(2)</enum><header>Rule
review</header><text>The new rule or rule amendment described in paragraph (1)
shall become effective, pursuant to the certification of the registered entity
and notice of such certification to its members (in a manner to be determined
by the Commission), on the date that is 10 business days after the date on
which the Commission receives the certification (or such shorter period as
determined by the Commission by rule or regulation) unless the Commission
notifies the registered entity within such time that it is staying the
certification because there exist novel or complex issues that require
additional time to analyze, an inadequate explanation by the submitting
registered entity, or a potential inconsistency with this Act (including
regulations under this Act).</text>
</paragraph><paragraph commented="no" id="H81E140F2AF1448BFBC19D5DA64957F8C"><enum>(3)</enum><header>Stay of
certification for rules</header>
<subparagraph commented="no" id="HEB3FC88C63D649809ABA15CA9DE957B8"><enum>(A)</enum><text>A notification by
the Commission pursuant to paragraph (2) shall stay the certification of the
new rule or rule amendment for up to an additional 90 days from the date of the
notification.</text>
</subparagraph><subparagraph commented="no" id="HC3D50BABB5FE40248BB31680297CBCD8"><enum>(B)</enum><text>A rule or rule
amendment subject to a stay pursuant to subparagraph (A) shall become
effective, pursuant to the certification of the registered entity, at the
expiration of the period described in subparagraph (A) unless the
Commission—</text>
<clause commented="no" id="H9A2D5C9074DE44D99DEA5389423A4DAB"><enum>(i)</enum><text>withdraws the stay
prior to that time; or</text>
</clause><clause commented="no" id="HDCA467034B72477EA8DFAD705C74008F"><enum>(ii)</enum><text>notifies the
registered entity during such period that it objects to the proposed
certification on the grounds that it is inconsistent with this Act (including
regulations under this Act).</text>
</clause></subparagraph><subparagraph commented="no" id="H35CF4A9A597347B98454109D114C978A"><enum>(C)</enum><text>The Commission
shall provide a not less than 30-day public comment period, within the 90-day
period in which the stay is in effect as described in subparagraph (A),
whenever the Commission reviews a rule or rule amendment pursuant to a
notification by the Commission under this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" id="H425A22D1A3964056ABBF8D10447C9067"><enum>(4)</enum><header>Prior
approval</header>
<subparagraph commented="no" id="H356E7102ABE24C5B8F395D0C698FEEED"><enum>(A)</enum><header>In
general</header><text>A registered entity may request that the Commission grant
prior approval to any new contract or other instrument, new rule, or rule
amendment.</text>
</subparagraph><subparagraph commented="no" id="H0D1BA01889434B02A48BE0ACE66C8BEE"><enum>(B)</enum><header>Prior approval
required</header><text>Notwithstanding any other provision of this section, a
designated contract market shall submit to the Commission for prior approval
each rule amendment that materially changes the terms and conditions, as
determined by the Commission, in any contract of sale for future delivery of a
commodity specifically enumerated in section 1a(10) (or any option thereon)
traded through its facilities if the rule amendment applies to contracts and
delivery months which have already been listed for trading and have open
interest.</text>
</subparagraph><subparagraph commented="no" id="H71FE2A0BC30C4F1CB1E60C2E1D16B96B"><enum>(C)</enum><header>Deadline</header><text>If
prior approval is requested under subparagraph (A), the Commission shall take
final action on the request not later than 90 days after submission of the
request, unless the person submitting the request agrees to an extension of the
time limitation established under this subparagraph.</text>
</subparagraph></paragraph><paragraph commented="no" id="H16CD636BFE434FDEBDA73F821D5CA851"><enum>(5)</enum><header>Approval</header>
<subparagraph commented="no" id="HC32DE8E538AC417BBDE84A63E81093BD"><enum>(A)</enum><header>Rules</header><text>The
Commission shall approve a new rule, or rule amendment, of a registered entity
unless the Commission finds that the new rule, or rule amendment, is
inconsistent with this subtitle (including regulations).</text>
</subparagraph><subparagraph commented="no" id="HD09924C8DADE4B95999A64A021D4FC81"><enum>(B)</enum><header>Contracts and
instruments</header><text>The Commission shall approve a new contract or other
instrument unless the Commission finds that the new contract or other
instrument would violate this Act (including regulations).</text>
</subparagraph><subparagraph commented="no" id="HD328F64B695940CE8C860ADC56CA6AC6"><enum>(C)</enum><header>Special rule for
review and approval of event contracts and swaps contracts</header>
<clause commented="no" id="H5205768521C04C609F320F027516C61B"><enum>(i)</enum><header>Event
contracts</header><text>In connection with the listing of agreements,
contracts, transactions, or swaps in excluded commodities that are based upon
the occurrence, extent of an occurrence, or contingency (other than a change in
the price, rate, value, or levels of a commodity described in section
1a(2)(i)), by a designated contract market or swap execution facility, the
Commission may determine that such agreements, contracts, or transactions are
contrary to the public interest if the agreements, contracts, or transactions
involve—</text>
<subclause commented="no" id="HCD3E21FFB7604E208F082FBB50AAA0E2"><enum>(I)</enum><text>activity that is
unlawful under any Federal or State law;</text>
</subclause><subclause commented="no" id="H46C091F358D44F64BF64B545E65D2EF4"><enum>(II)</enum><text>terrorism;</text>
</subclause><subclause commented="no" id="HACF115E04D834986B5ADC4043009C121"><enum>(III)</enum><text>assassination;</text>
</subclause><subclause commented="no" id="H0757FF74F1C24FFFB5F8189309BEEEF0"><enum>(IV)</enum><text>war;</text>
</subclause><subclause commented="no" id="HC72D7FAFB0D34F4DAFEA28DD16163D8A"><enum>(V)</enum><text>gaming; or</text>
</subclause><subclause commented="no" id="HBCDE3B3FD8544FDDA1927A27C84E474D"><enum>(VI)</enum><text>other similar
activity determined by the Commission, by rule or regulation, to be contrary to
the public interest.</text>
</subclause></clause><clause commented="no" id="HB5EE067311DC45EFBFD3CFCD581B81AB"><enum>(ii)</enum><header>Prohibition</header><text>No
agreement, contract, or transaction determined by the Commission to be contrary
to the public interest under clause (i) may be listed or made available for
clearing or trading on or through a registered entity.</text>
</clause><clause commented="no" id="H2444ADA9CF304E169182EB34608722A9"><enum>(iii)</enum><header>Swaps
contracts</header>
<subclause commented="no" id="HACF264D2027642FBA3B5BA62301B8F10"><enum>(I)</enum><header>In
general</header><text>In connection with the listing of a swap for clearing by
a derivatives clearing organization, the Commission shall determine, upon
request or on its own motion, the initial eligibility, or the continuing
qualification, of a derivatives clearing organization to clear such a swap
under those criteria, conditions, or rules that the Commission, in its
discretion, determines.</text>
</subclause><subclause id="H17E2145C20EA45C7AED9FA9D07181AC8"><enum>(II)</enum><header>Requirements</header><text>Any
such criteria, conditions, or rules shall consider—</text>
<item id="H0756EEE4F7994C3ABE41475BA44AB5DC"><enum>(aa)</enum><text>the
financial integrity of the derivatives clearing organization; and</text>
</item><item id="HA6A6DC408DC04C4E9D7A09086E1A4819"><enum>(bb)</enum><text>any
other factors which the Commission determines may be appropriate.</text>
</item></subclause></clause><clause commented="no" id="H25289BA5DF7140C480841B182E24F745"><enum>(iv)</enum><header>Deadline</header><text>The
Commission shall take final action under clauses (i) and (ii) in not later than
90 days from the commencement of its review unless the party seeking to offer
the contract or swap agrees to an extension of this time
limitation.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF8854B0089EB4FF894FCBBB5F0FD484B"><enum>(c)</enum><header>Violation of
core principles</header><text>Section 5c of the Commodity Exchange Act (7
U.S.C. 7a–2) is amended by striking subsection (d).</text>
</subsection></section><section id="H32C10786D04148B6B3B980681CF6A594"><enum>746.</enum><header>Insider
trading</header><text display-inline="no-display-inline">Section 4c(a) of the
Commodity Exchange Act (7 U.S.C. 6c(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H5F19BE0CF5FC4E1398F14BC93557D1FD" style="OLC">
<paragraph id="H2A494D34A97040E18FE679375E98C2CB"><enum>(3)</enum><header>Contract of
sale</header><text>It shall be unlawful for any employee or agent of any
department or agency of the Federal Government who, by virtue of the employment
or position of the employee or agent, acquires information that may affect or
tend to affect the price of any commodity in interstate commerce, or for future
delivery, or any swap, and which information has not been disseminated by the
department or agency of the Federal Government holding or creating the
information in a manner which makes it generally available to the trading
public, or disclosed in a criminal, civil, or administrative hearing, or in a
congressional, administrative, or Government Accountability Office report,
hearing, audit, or investigation, to use the information in his personal
capacity and for personal gain to enter into, or offer to enter into—</text>
<subparagraph id="HF3C431664B874B4F9BC4DF953211F800"><enum>(A)</enum><text>a contract of sale
of a commodity for future delivery (or option on such a contract);</text>
</subparagraph><subparagraph id="HB382E15E5B83432782F9D23E72AA6209"><enum>(B)</enum><text>an option (other
than an option executed or traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</subparagraph><subparagraph id="H8165ADAF79824BE3A4EEFCB18F0C697E"><enum>(C)</enum><text>a swap.</text>
</subparagraph></paragraph><paragraph id="H9C32467AFD9A42DE9A4612DD89F3B65A"><enum>(4)</enum><header>Nonpublic
information</header>
<subparagraph id="H391C531B6379499084B8854655A1E652"><enum>(A)</enum><header>Imparting of
nonpublic information</header><text>It shall be unlawful for any employee or
agent of any department or agency of the Federal Government who, by virtue of
the employment or position of the employee or agent, acquires information that
may affect or tend to affect the price of any commodity in interstate commerce,
or for future delivery, or any swap, and which information has not been
disseminated by the department or agency of the Federal Government holding or
creating the information in a manner which makes it generally available to the
trading public, or disclosed in a criminal, civil, or administrative hearing,
or in a congressional, administrative, or Government Accountability Office
report, hearing, audit, or investigation, to impart the information in his
personal capacity and for personal gain with intent to assist another person,
directly or indirectly, to use the information to enter into, or offer to enter
into—</text>
<clause id="H29B520CF188D461CB535E50F65325D80"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="HA790058319294C06A0CA8FD6FBF364B1"><enum>(ii)</enum><text>an option (other
than an option executed or traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</clause><clause id="H0B4A7F1CDE794BAFA97539C3952A760C"><enum>(iii)</enum><text>a swap.</text>
</clause></subparagraph><subparagraph id="H17D60E4113C84B5F9B5F2C5FA7065CAE"><enum>(B)</enum><header>Knowing
use</header><text>It shall be unlawful for any person who receives information
imparted by any employee or agent of any department or agency of the Federal
Government as described in subparagraph (A) to knowingly use such information
to enter into, or offer to enter into—</text>
<clause id="H7B83A15D2ACC459AAF26072C418758C3"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="H59E376A71F884F1895FA51A535DF1BE0"><enum>(ii)</enum><text>an option (other
than an option executed or traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</clause><clause id="HF8581C70C1EA426CA95C5F3C49B9204C"><enum>(iii)</enum><text>a swap.</text>
</clause></subparagraph><subparagraph id="HEA8BE0BEE4A64F0FB777AA9B5365E29F"><enum>(C)</enum><header>Theft of
nonpublic information</header><text>It shall be unlawful for any person to
steal, convert, or misappropriate, by any means whatsoever, information held or
created by any department or agency of the Federal Government that may affect
or tend to affect the price of any commodity in interstate commerce, or for
future delivery, or any swap, where such person knows, or acts in reckless
disregard of the fact, that such information has not been disseminated by the
department or agency of the Federal Government holding or creating the
information in a manner which makes it generally available to the trading
public, or disclosed in a criminal, civil, or administrative hearing, or in a
congressional, administrative, or Government Accountability Office report,
hearing, audit, or investigation, and to use such information, or to impart
such information with the intent to assist another person, directly or
indirectly, to use such information to enter into, or offer to enter
into—</text>
<clause id="H80F13DC3776C4B6980790D5D04899A99"><enum>(i)</enum><text>a
contract of sale of a commodity for future delivery (or option on such a
contract);</text>
</clause><clause id="H6B754EE6FD794D6D8C9C3250603E2EFD"><enum>(ii)</enum><text>an option (other
than an option executed or traded on a national securities exchange registered
pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78f(a)); or</text>
</clause><clause id="H066F0A3252AA4733BDA8443A742C76DA"><enum>(iii)</enum><text>a swap,
provided, however, that nothing in this subparagraph shall preclude a person
that has provided information concerning, or generated by, the person, its
operations or activities, to any employee or agent of any department or agency
of the Federal Government, voluntarily or as required by law, from using such
information to enter into, or offer to enter into, a contract of sale, option,
or swap described in clauses (i), (ii), or
(iii).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H628A5D685143422BB18B4228FE290BB3"><enum>747.</enum><header>Antidisruptive
practices authority</header><text display-inline="no-display-inline">Section
4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) (as amended by section
746) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4937A86EE1BC418ABEC9420A4074482C" style="OLC">
<paragraph id="HC1F593F5BE3A45D7B25F9AFA91FAABC9"><enum>(5)</enum><header>Disruptive
practices</header><text>It shall be unlawful for any person to engage in any
trading, practice, or conduct on or subject to the rules of a registered entity
that—</text>
<subparagraph id="H001890A6652A4E6F9F871DEC3FE90D05"><enum>(A)</enum><text>violates bids or
offers;</text>
</subparagraph><subparagraph id="H621B02DAAC974CBBAE736B2B8D3D0B67"><enum>(B)</enum><text>demonstrates
intentional or reckless disregard for the orderly execution of transactions
during the closing period; or</text>
</subparagraph><subparagraph id="H662C4D3C7C9349CCACB683CB33B3BFAB"><enum>(C)</enum><text>is, is of the
character of, or is commonly known to the trade as, <quote>spoofing</quote>
(bidding or offering with the intent to cancel the bid or offer before
execution).</text>
</subparagraph></paragraph><paragraph id="HCCACB3D5D3D0498A9791DF83E5AD9B63"><enum>(6)</enum><header>Rulemaking
authority</header><text>The Commission may make and promulgate such rules and
regulations as, in the judgment of the Commission, are reasonably necessary to
prohibit the trading practices described in paragraph (5) and any other trading
practice that is disruptive of fair and equitable trading.</text>
</paragraph><paragraph id="HA0245ED2C85542DC912EE268D38C4139"><enum>(7)</enum><header>Use of swaps to
defraud</header><text>It shall be unlawful for any person to enter into a swap
knowing, or acting in reckless disregard of the fact, that its counterparty
will use the swap as part of a device, scheme, or artifice to defraud any third
party.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H2AB13E5AABE44395B8A54FDC6335A3C0"><enum>748.</enum><header>Commodity
whistleblower incentives and protection</header><text display-inline="no-display-inline">The <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (7 U.S.C. 1 et seq.) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E74E49351694BA9B118012DA2A16A77" style="OLC">
<section commented="no" id="H8943E16BF92E4025B9D323EF6F3EE355"><enum>23.</enum><header>Commodity
whistleblower incentives and protection</header>
<subsection id="H4D0804C690644401AAF4DAD36B9A2CB6"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H85B1CA222EF140779317C6D17A2FF74D"><enum>(1)</enum><header>Covered judicial
or administrative action</header><text>The term <term>covered judicial or
administrative action</term> means any judicial or administrative action
brought by the Commission under this Act that results in monetary sanctions
exceeding $1,000,000.</text>
</paragraph><paragraph id="H1CF1429DB6094259A9EE069B01DBFEB5"><enum>(2)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Commodity Futures Trading Commission Customer
Protection Fund established under subsection (g).</text>
</paragraph><paragraph id="H944C7D326E7A49DD8EE6C78C77BE6176"><enum>(3)</enum><header>Monetary
sanctions</header><text>The term <term>monetary sanctions</term>, when used
with respect to any judicial or administrative action means—</text>
<subparagraph id="H9287A15C83C048E3A76B54F97763DA32"><enum>(A)</enum><text>any monies,
including penalties, disgorgement, restitution, and interest ordered to be
paid; and</text>
</subparagraph><subparagraph id="HF9881705E0FC484F8769930028F86CCD"><enum>(B)</enum><text>any monies
deposited into a disgorgement fund or other fund pursuant to section 308(b) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(b)), as a result of such action
or any settlement of such action.</text>
</subparagraph></paragraph><paragraph id="H44A2452B9A1848CA8318F2A157B2F052"><enum>(4)</enum><header>Original
information</header><text>The term <term>original information</term> means
information that—</text>
<subparagraph id="H40154D233FA94702BDC21B28A8DA0FD4"><enum>(A)</enum><text>is derived from
the independent knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph id="HF7110497F3DF4AA3B5993A73F9CF7A1A"><enum>(B)</enum><text>is not known to
the Commission from any other source, unless the whistleblower is the original
source of the information; and</text>
</subparagraph><subparagraph id="HEB3A3D3B52744472B25DD677D30AC1DD"><enum>(C)</enum><text>is not exclusively
derived from an allegation made in a judicial or administrative hearing, in a
governmental report, hearing, audit, or investigation, or from the news media,
unless the whistleblower is a source of the information.</text>
</subparagraph></paragraph><paragraph id="H3997562F4AB14EF68138E77F352E29A8"><enum>(5)</enum><header>Related
action</header><text>The term <term>related action</term>, when used with
respect to any judicial or administrative action brought by the Commission
under this Act, means any judicial or administrative action brought by an
entity described in subclauses (I) through (VI) of subsection (h)(2)(C) that is
based upon the original information provided by a whistleblower pursuant to
subsection (a) that led to the successful enforcement of the Commission
action.</text>
</paragraph><paragraph id="H79F93E5E5BF14421A81C5F5E62E67A7B"><enum>(6)</enum><header>Successful
resolution</header><text>The term <term>successful resolution</term>, when used
with respect to any judicial or administrative action brought by the Commission
under this Act, includes any settlement of such action.</text>
</paragraph><paragraph id="HE6CAEFBB341A4C43933E783E62F2DDF6"><enum>(7)</enum><header>Whistleblower</header><text>The
term <term>whistleblower</term> means any individual, or 2 or more individuals
acting jointly, who provides information relating to a violation of this Act to
the Commission, in a manner established by rule or regulation by the
Commission.</text>
</paragraph></subsection><subsection id="H5F21798BF92143D9B61A8F84FEF57FDA"><enum>(b)</enum><header>Awards</header>
<paragraph id="H86BFBAB333C34B64A13899203A0FB591"><enum>(1)</enum><header>In
general</header><text>In any covered judicial or administrative action, or
related action, the Commission, under regulations prescribed by the Commission
and subject to subsection (c), shall pay an award or awards to 1 or more
whistleblowers who voluntarily provided original information to the Commission
that led to the successful enforcement of the covered judicial or
administrative action, or related action, in an aggregate amount equal
to—</text>
<subparagraph id="H99D1B73A580246C4A531345059A677F8"><enum>(A)</enum><text>not less than 10
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions; and</text>
</subparagraph><subparagraph id="H06FA53F33828473194BA0EF047791FB0"><enum>(B)</enum><text>not more than 30
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions.</text>
</subparagraph></paragraph><paragraph id="HC2F977FE820A433FBD2A38989E5FE26C"><enum>(2)</enum><header>Payment of
awards</header><text>Any amount paid under paragraph (1) shall be paid from the
Fund.</text>
</paragraph></subsection><subsection id="H2CB2CA1B6061448A9F6A0EAA640C390A"><enum>(c)</enum><header>Determination of
amount of award; denial of award</header>
<paragraph id="H95C43B860E5E4C06AFF413F120771DA0"><enum>(1)</enum><header>Determination of
amount of award</header>
<subparagraph id="HAB4E9646913243098F48548D4B1FE8FA"><enum>(A)</enum><header>Discretion</header><text>The
determination of the amount of an award made under subsection (b) shall be in
the discretion of the Commission.</text>
</subparagraph><subparagraph id="H7BF3537FCBB64C0B83E2867796621686"><enum>(B)</enum><header>Criteria</header><text>In
determining the amount of an award made under subsection (b), the
Commission—</text>
<clause id="H3C843D07AD4B420F80BF24E8EB5E9F94"><enum>(i)</enum><text>shall take into
consideration—</text>
<subclause id="HC043DA2C645C4D28948D0B25CFA39C07"><enum>(I)</enum><text>the significance
of the information provided by the whistleblower to the success of the covered
judicial or administrative action;</text>
</subclause><subclause id="HC20B0F5F790D4996A4F33E2B42FFC18A"><enum>(II)</enum><text>the degree of
assistance provided by the whistleblower and any legal representative of the
whistleblower in a covered judicial or administrative action;</text>
</subclause><subclause id="H0AE8139A01C6476EBE4AB52798B198BC"><enum>(III)</enum><text>the programmatic
interest of the Commission in deterring violations of the Act (including
regulations under the Act) by making awards to whistleblowers who provide
information that leads to the successful enforcement of such laws; and</text>
</subclause><subclause id="H8559E4BC8D084436A6D4A691D723240D"><enum>(IV)</enum><text>such additional
relevant factors as the Commission may establish by rule or regulation;
and</text>
</subclause></clause><clause id="H567BD2634A5B4679BB3C12F669A0F9ED"><enum>(ii)</enum><text>shall not take
into consideration the balance of the Fund.</text>
</clause></subparagraph></paragraph><paragraph id="H340AF5B6E04E483C94E23D0CCDA2F0A6"><enum>(2)</enum><header>Denial of
award</header><text>No award under subsection (b) shall be made—</text>
<subparagraph id="H6C9C7D70C93A421CBAE252CC7389AE88"><enum>(A)</enum><text>to any
whistleblower who is, or was at the time the whistleblower acquired the
original information submitted to the Commission, a member, officer, or
employee of—</text>
<clause id="H61F4B57087AE44C799AFD33EECD10BD1"><enum>(i)</enum><text>a
appropriate regulatory agency;</text>
</clause><clause id="H9D9AE00C0376443FA3B6E55365165B6C"><enum>(ii)</enum><text>the Department of
Justice;</text>
</clause><clause id="HD11DDDA5D923408982853A2914C7F0A0"><enum>(iii)</enum><text>a registered
entity;</text>
</clause><clause id="HD8B049192EC641888771DF3B30DB7FD9"><enum>(iv)</enum><text>a
registered futures association;</text>
</clause><clause id="H043761AB33A64EA18010F131367CABA8"><enum>(v)</enum><text>a
self-regulatory organization as defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)); or</text>
</clause><clause id="HCFEBB319BB374923940A5AD1BB732F59"><enum>(vi)</enum><text>a
law enforcement organization;</text>
</clause></subparagraph><subparagraph id="HD2A96FD0410346D6A7681DEEE14B096D"><enum>(B)</enum><text>to any
whistleblower who is convicted of a criminal violation related to the judicial
or administrative action for which the whistleblower otherwise could receive an
award under this section;</text>
</subparagraph><subparagraph id="HBBE3F9B17B7248478A958550D1F952F4"><enum>(C)</enum><text>to any
whistleblower who submits information to the Commission that is based on the
facts underlying the covered action submitted previously by another
whistleblower;</text>
</subparagraph><subparagraph id="H75ADABD4DEE5456A9B1A3358F4CD2D25"><enum>(D)</enum><text>to any
whistleblower who fails to submit information to the Commission in such form as
the Commission may, by rule or regulation, require.</text>
</subparagraph></paragraph></subsection><subsection id="HFFC083432CEC43BE890FEC5A0FE195A6"><enum>(d)</enum><header>Representation</header>
<paragraph id="HDB9AE6692EF0433DB9E7713039B75B9C"><enum>(1)</enum><header>Permitted
representation</header><text>Any whistleblower who makes a claim for an award
under subsection (b) may be represented by counsel.</text>
</paragraph><paragraph id="H2F60D25895AD43CC98753869A6830CE3"><enum>(2)</enum><header>Required
representation</header>
<subparagraph id="H58A2B63D573F4DAF9275FABAEB6423AB"><enum>(A)</enum><header>In
general</header><text>Any whistleblower who anonymously makes a claim for an
award under subsection (b) shall be represented by counsel if the whistleblower
submits the information upon which the claim is based.</text>
</subparagraph><subparagraph id="HECA5347F2905495BA735F3FDC4F8CED0"><enum>(B)</enum><header>Disclosure of
identity</header><text>Prior to the payment of an award, a whistleblower shall
disclose the identity of the whistleblower and provide such other information
as the Commission may require, directly or through counsel for the
whistleblower.</text>
</subparagraph></paragraph></subsection><subsection id="HA151F5C5F98C4829B7D565EE256E420D"><enum>(e)</enum><header>No contract
necessary</header><text>No contract with the Commission is necessary for any
whistleblower to receive an award under subsection (b), unless otherwise
required by the Commission, by rule or regulation.</text>
</subsection><subsection id="H9E1D23EE3DB44AE0A792A9331AFFDF9D"><enum>(f)</enum><header>Appeals</header>
<paragraph id="H7C7F101304304191A0207E4B17196ED0"><enum>(1)</enum><header>In
general</header><text>Any determination made under this section, including
whether, to whom, or in what amount to make awards, shall be in the discretion
of the Commission.</text>
</paragraph><paragraph id="H5D6501DC95FB49E29F2989D5E4B03939"><enum>(2)</enum><header>Appeals</header><text>Any
determination described in paragraph (1) may be appealed to the appropriate
court of appeals of the United States not more than 30 days after the
determination is issued by the Commission.</text>
</paragraph><paragraph id="H77F0CD02CC5A446EB9FA24F192830A48"><enum>(3)</enum><header>Review</header><text>The
court shall review the determination made by the Commission in accordance with
section 7064 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="H0CDECFE6B77247CE9CD0EC88A4487369"><enum>(g)</enum><header>Commodity
futures trading commission customer protection fund</header>
<paragraph id="H134AC07AF1D647D188EE5245001D79E9"><enum>(1)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a revolving fund to be
known as the <term>Commodity Futures Trading Commission Customer Protection
Fund</term>.</text>
</paragraph><paragraph id="H98C17B142C6747B0A6D832190627F353"><enum>(2)</enum><header>Use of
fund</header><text>The Fund shall be available to the Commission, without
further appropriation or fiscal year limitation, for—</text>
<subparagraph id="H6C450D84EC2842429ACEF97576F1104C"><enum>(A)</enum><text>the payment of
awards to whistleblowers as provided in subsection (a); and</text>
</subparagraph><subparagraph id="H363C0F27AC3F4E52B8FB8CD949333F9C"><enum>(B)</enum><text>the funding of
customer education initiatives designed to help customers protect themselves
against fraud or other violations of this Act, or the rules and regulations
thereunder.</text>
</subparagraph></paragraph><paragraph id="HCDC123F88B244A3BAFC1601B425E3A31"><enum>(3)</enum><header>Deposits and
credits</header><text>There shall be deposited into or credited to the
Fund:</text>
<subparagraph id="H0AAEDB2AAF0847AD86BEA0D432CE00C1"><enum>(A)</enum><header>Monetary
sanctions</header><text>Any monetary sanctions collected by the Commission in
any covered judicial or administrative action that is not otherwise distributed
to victims of a violation of this Act or the rules and regulations thereunder
underlying such action, unless the balance of the Fund at the time the monetary
judgment is collected exceeds $100,000,000.</text>
</subparagraph><subparagraph id="H5DA3831C3734432DA1F2FB14241E5CC1"><enum>(B)</enum><header>Additional
amounts</header><text>If the amounts deposited into or credited to the Fund
under subparagraph (A) are not sufficient to satisfy an award made under
subsection (b), there shall be deposited into or credited to the Fund an amount
equal to the unsatisfied portion of the award from any monetary sanction
collected by the Commission in any judicial or administrative action brought by
the Commission under this Act that is based on information provided by a
whistleblower.</text>
</subparagraph><subparagraph id="H0FF4A7F3883A4D85B2D4EFFDF02BBBC1"><enum>(C)</enum><header>Investment
income</header><text>All income from investments made under paragraph
(4).</text>
</subparagraph></paragraph><paragraph id="HAA3F8668EB484CB9BBA5049792416241"><enum>(4)</enum><header>Investments</header>
<subparagraph id="H922C1480B3C749548C10D0645B249208"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Commission may request the Secretary of the
Treasury to invest the portion of the Fund that is not, in the Commission’s
judgment, required to meet the current needs of the Fund.</text>
</subparagraph><subparagraph id="H4392A12648734319AD98EC03A42A9198"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary of the
Treasury in obligations of the United States or obligations that are guaranteed
as to principal and interest by the United States, with maturities suitable to
the needs of the Fund as determined by the Commission.</text>
</subparagraph><subparagraph id="H6B0BB94F1BB346BEAF03538CA6F9BC36"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Fund shall be credited to, and
form a part of, the Fund.</text>
</subparagraph></paragraph><paragraph id="H91809EFAA91246F9865662104281C286"><enum>(5)</enum><header>Reports to
congress</header><text>Not later than October 30 of each year, the Commission
shall transmit to the Committee on Agriculture, Nutrition, and Forestry of the
Senate, and the Committee on Agriculture of the House of Representatives a
report on—</text>
<subparagraph id="H46B7F7EF244B48A48A913153652C39B3"><enum>(A)</enum><text>the Commission’s
whistleblower award program under this section, including a description of the
number of awards granted and the types of cases in which awards were granted
during the preceding fiscal year;</text>
</subparagraph><subparagraph id="HC3ADFFF880D749B1AFCD9A4750440A5F"><enum>(B)</enum><text>customer education
initiatives described in paragraph (2)(B) that were funded by the Fund during
the preceding fiscal year;</text>
</subparagraph><subparagraph id="HD87B4AFCD5A84516BAF5A52F4DF88D60"><enum>(C)</enum><text>the balance of the
Fund at the beginning of the preceding fiscal year;</text>
</subparagraph><subparagraph id="H889FDE76DFA44366B81D776CBADAF1F6"><enum>(D)</enum><text>the amounts
deposited into or credited to the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="H00924C7A912C487687B048F3B3457E01"><enum>(E)</enum><text>the amount of
earnings on investments of amounts in the Fund during the preceding fiscal
year;</text>
</subparagraph><subparagraph id="H59E48C64A64A49C0A263EC119E6E8003"><enum>(F)</enum><text>the amount paid
from the Fund during the preceding fiscal year to whistleblowers pursuant to
subsection (b);</text>
</subparagraph><subparagraph id="H9DBD153F0E674E7EB9CBD200695392D2"><enum>(G)</enum><text>the amount paid
from the Fund during the preceding fiscal year for customer education
initiatives described in paragraph (2)(B);</text>
</subparagraph><subparagraph id="H621BC9F29D414877B9F7EA474BBA0F46"><enum>(H)</enum><text>the balance of the
Fund at the end of the preceding fiscal year; and</text>
</subparagraph><subparagraph id="H71C627B432AF47DDB22DE9431636D137"><enum>(I)</enum><text>a complete set of
audited financial statements, including a balance sheet, income statement, and
cash flow analysis.</text>
</subparagraph></paragraph></subsection><subsection id="HAF397E0CAB024DFA8C8E1BD5147444A8"><enum>(h)</enum><header>Protection of
whistleblowers</header>
<paragraph id="HF71AC175C6AC4D6A9FAE81783830C856"><enum>(1)</enum><header>Prohibition
against retaliation</header>
<subparagraph id="H571AC67C20B643AF8FD40671302BE897"><enum>(A)</enum><header>In
general</header><text>No employer may discharge, demote, suspend, threaten,
harass, directly or indirectly, or in any other manner discriminate against, a
whistleblower in the terms and conditions of employment because of any lawful
act done by the whistleblower—</text>
<clause id="HBCDA57ACC9824195A3F74488936C0417"><enum>(i)</enum><text>in
providing information to the Commission in accordance with subsection (b);
or</text>
</clause><clause id="H9007544F68EC4F6197CB85A8DCBA3E6E"><enum>(ii)</enum><text>in assisting in
any investigation or judicial or administrative action of the Commission based
upon or related to such information.</text>
</clause></subparagraph><subparagraph id="H7B5A4E5CF8054F7D8F249F68B68C172D"><enum>(B)</enum><header>Enforcement</header>
<clause id="H9D7593318ABD40E193623B5C21327DAC"><enum>(i)</enum><header>Cause of
action</header><text>An individual who alleges discharge or other
discrimination in violation of subparagraph (A) may bring an action under this
subsection in the appropriate district court of the United States for the
relief provided in subparagraph (C), unless the individual who is alleging
discharge or other discrimination in violation of subparagraph (A) is an
employee of the Federal Government, in which case the individual shall only
bring an action under section 1221 of title 5, United States Code.</text>
</clause><clause id="HBA2DC5EBDA014DAF8EE63698F24862EE"><enum>(ii)</enum><header>Subpoenas</header><text>A
subpoena requiring the attendance of a witness at a trial or hearing conducted
under this subsection may be served at any place in the United States.</text>
</clause><clause id="H7C04C30CE6B1477A9D51FDE4E0A9A9F4"><enum>(iii)</enum><header>Statute of
limitations</header><text>An action under this subsection may not be brought
more than 2 years after the date on which the violation reported in
subparagraph (A) is committed.</text>
</clause></subparagraph><subparagraph id="H2CB1C31FE2364089B76F32A703A6080E"><enum>(C)</enum><header>Relief</header><text>Relief
for an individual prevailing in an action brought under subparagraph (B) shall
include—</text>
<clause id="H9AD73162BF1F4E4C99E7AE561014358A"><enum>(i)</enum><text>reinstatement with
the same seniority status that the individual would have had, but for the
discrimination;</text>
</clause><clause id="H29B2E500FD674B85BF93EA0211929FE6"><enum>(ii)</enum><text>the amount of
back pay otherwise owed to the individual, with interest; and</text>
</clause><clause id="H94F7C7C7096B4F44A9B964271B12DE86"><enum>(iii)</enum><text>compensation for
any special damages sustained as a result of the discharge or discrimination,
including litigation costs, expert witness fees, and reasonable attorney’s
fees.</text>
</clause></subparagraph></paragraph><paragraph id="H3B7C6225218F4A4DB69D7885631F935E"><enum>(2)</enum><header>Confidentiality</header>
<subparagraph id="H1556EB7EC60346FAB36E3BF29EBBFB56"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraphs (B) and (C), the
Commission, and any officer or employee of the Commission, shall not disclose
any information, including information provided by a whistleblower to the
Commission, which could reasonably be expected to reveal the identity of a
whistleblower, except in accordance with the provisions of section 552a of
title 5, United States Code, unless and until required to be disclosed to a
defendant or respondent in connection with a public proceeding instituted by
the Commission or any entity described in subparagraph (C). 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.</text>
</subparagraph><subparagraph id="H2E7EC717C23742D298ACD3165A169614"><enum>(B)</enum><header>Effect</header><text>Nothing
in this paragraph is intended to limit the ability of the Attorney General to
present such evidence to a grand jury or to share such evidence with potential
witnesses or defendants in the course of an ongoing criminal
investigation.</text>
</subparagraph><subparagraph id="HD557E16A0DD343A3862602E4162C708E"><enum>(C)</enum><header>Availability to
government agencies</header>
<clause id="H90CC173F01234507861B3740B061D389"><enum>(i)</enum><header>In
general</header><text>Without the loss of its status as confidential in the
hands of the Commission, all information referred to in subparagraph (A) may,
in the discretion of the Commission, when determined by the Commission to be
necessary or appropriate to accomplish the purposes of this Act and protect
customers and in accordance with clause (ii), be made available to—</text>
<subclause id="H0EDD6C93BE5649A1B56B3E8D015B56ED"><enum>(I)</enum><text>the Department of
Justice;</text>
</subclause><subclause id="H43959BB963594A0281FDB3FB8F8D25D3"><enum>(II)</enum><text>an appropriate
department or agency of the Federal Government, acting within the scope of its
jurisdiction;</text>
</subclause><subclause id="H29986AC151AD4E89BC0899D632CCE9C7"><enum>(III)</enum><text>a registered
entity, registered futures association, or self-regulatory organization as
defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a));</text>
</subclause><subclause id="H764BFFEC799743DABAAF1605A65E52B4"><enum>(IV)</enum><text>a State attorney
general in connection with any criminal investigation;</text>
</subclause><subclause id="H435155FB18A448CB87E207CD075468E7"><enum>(V)</enum><text>an appropriate
department or agency of any State, acting within the scope of its jurisdiction;
and</text>
</subclause><subclause id="H5355D086D7894E5CB0A55D7A874DC5C0"><enum>(VI)</enum><text>a foreign futures
authority.</text>
</subclause></clause><clause id="HD50810301C2443848BB19677D7B9B677"><enum>(ii)</enum><header>Maintenance of
information</header><text>Each of the entities, agencies, or persons described
in clause (i) shall maintain information described in that clause as
confidential, in accordance with the requirements in subparagraph (A).</text>
</clause><clause id="H2C5E453D6E5A47B3A769E372A163213A"><enum>(iii)</enum><header>Study on
impact of FOIA exemption on Commodity Futures Trading Commission</header>
<subclause id="H1D726C60E5F9402ABF21D1380F746C32"><enum>(I)</enum><header>Study</header><text>The
Inspector General of the Commission shall conduct a study—</text>
<item id="H70BE039BEFAC483EA54D5DB5304BB7C8"><enum>(aa)</enum><text>on
whether the exemption under section 552(b)(3) of title 5, United States Code
(known as the Freedom of Information Act) established in paragraph (2)(A) aids
whistleblowers in disclosing information to the Commission;</text>
</item><item id="H4F1611C18FE34A418CD002E462A718B4"><enum>(bb)</enum><text>on
what impact the exemption has had on the public’s ability to access information
about the Commission’s regulation of commodity futures and option markets;
and</text>
</item><item id="H4F9D6325F87E4FF4A0EFA1B43140AD87"><enum>(cc)</enum><text>to
make any recommendations on whether the Commission should continue to use the
exemption.</text>
</item></subclause><subclause id="H31F5DA365A22434E9B664762D0DBEB37"><enum>(II)</enum><header>Report</header><text>Not
later than 30 months after the date of enactment of this clause, the Inspector
General shall—</text>
<item id="H8E08B5B70B3747F289BC58A28817ACAB"><enum>(aa)</enum><text>submit a report
on the findings of the study required under this clause to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives; and</text>
</item><item id="H1222364A06614278A35D2B2AF10F0601"><enum>(bb)</enum><text>make the report
available to the public through publication of a report on the website of the
Commission.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph id="H9388E7DE914248BE97180EE85506C616"><enum>(3)</enum><header>Rights
retained</header><text>Nothing in this section shall be deemed to diminish the
rights, privileges, or remedies of any whistleblower under any Federal or State
law, or under any collective bargaining agreement.</text>
</paragraph></subsection><subsection id="H692EF07768C14769BA5B7E1D751CA888"><enum>(i)</enum><header>Rulemaking
authority</header><text>The Commission shall have the authority to issue such
rules and regulations as may be necessary or appropriate to implement the
provisions of this section consistent with the purposes of this section.</text>
</subsection><subsection id="HFA4983FA052E418290A948E37573FCA7"><enum>(j)</enum><header>Implementing
rules</header><text>The Commission shall issue final rules or regulations
implementing the provisions of this section not later than 270 days after the
date of enactment of the <short-title>Wall Street
Transparency and Accountability Act of 2010</short-title>.</text>
</subsection><subsection id="HC2D2D0B8BC9C49AE93329227679B428C"><enum>(k)</enum><header>Original
information</header><text>Information submitted to the Commission by a
whistleblower in accordance with rules or regulations implementing this section
shall not lose its status as original information solely because the
whistleblower submitted such information prior to the effective date of such
rules or regulations, provided such information was submitted after the date of
enactment of the <short-title>Wall Street Transparency and
Accountability Act of 2010</short-title>.</text>
</subsection><subsection id="HF6105C882F814FF4AD44C1904FECDAE4"><enum>(l)</enum><header>Awards</header><text>A
whistleblower may receive an award pursuant to this section regardless of
whether any violation of a provision of this Act, or a rule or regulation
thereunder, underlying the judicial or administrative action upon which the
award is based occurred prior to the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>.</text>
</subsection><subsection id="H98FA5BAC50044A7D8CED8BA9FFFE649F"><enum>(m)</enum><header>Provision of
false information</header><text>A whistleblower who knowingly and willfully
makes any false, fictitious, or fraudulent statement or representation, or who
makes or uses any false writing or document knowing the same to contain any
false, fictitious, or fraudulent statement or entry, shall not be entitled to
an award under this section and shall be subject to prosecution under section
1001 of title 18, United States Code.</text>
</subsection><subsection id="HE40B6EA8D5174DD5A3ECA53641E27BF2"><enum>(n)</enum><header>Nonenforceability
of Certain Provisions Waiving Rights and Remedies or Requiring Arbitration of
Disputes</header>
<paragraph id="H8F2236AD1D96471CB717CDAC19CCD34F"><enum>(1)</enum><header>Waiver of rights
and remedies</header><text>The rights and remedies provided for in this section
may not be waived by any agreement, policy form, or condition of employment
including by a predispute arbitration agreement.</text>
</paragraph><paragraph id="H8014475A011E449A9B0706C4AC4F96D8"><enum>(2)</enum><header>Predispute
arbitration agreements</header><text>No predispute arbitration agreement shall
be valid or enforceable, if the agreement requires arbitration of a dispute
arising under this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAE08C037E28C4B3C97C95588DD45C17D"><enum>749.</enum><header>Conforming
amendments</header>
<subsection id="H2BD36E06979B47ECBF9DF358B0356DCD"><enum>(a)</enum><text display-inline="yes-display-inline">Section 4d of the Commodity Exchange Act (7
U.S.C. 6d) (as amended by section 724) is amended—</text>
<paragraph id="H91670E9D9AFB4B0D8D69E1E430D31C80"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H47B25BC5DF6A41B9B95E05B692DA97FA"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="H5ED040C9013843509557BEF71862234E"><enum>(i)</enum><text>by
striking <quote>engage as</quote> and inserting <quote>be a</quote>; and</text>
</clause><clause id="H8C0858B740C748BD85032272FB5998E4"><enum>(ii)</enum><text>by
striking <quote>or introducing broker</quote> and all that follows through
<quote>or derivatives transaction execution facility</quote>;</text>
</clause></subparagraph><subparagraph id="H0AA6E78E9D434BAC81C80A1FCEF4F19E"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>or introducing broker</quote>; and</text>
</subparagraph><subparagraph id="H3A48DF18BED2470E93EE65B3FE5AE27D"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>if a futures commission merchant,</quote>; and</text>
</subparagraph></paragraph><paragraph id="HC6D28424100B4BB896290F6172B18885"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H641B92361D7F4C8C9074FE7B5F17C80B" style="OLC">
<subsection id="HDD280BF68C6F4DE6B0931B0DD6A036A0"><enum>(g)</enum><text>It shall be
unlawful for any person to be an introducing broker unless such person shall
have registered under this Act with the Commission as an introducing broker and
such registration shall not have expired nor been suspended nor
revoked.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H324C8D4F90904CDA980F878BD5BBDF8D"><enum>(b)</enum><text>Section 4m(3) of
the Commodity Exchange Act (7 U.S.C. 6m(3)) is amended—</text>
<paragraph id="H3E7B3C5852D34E2A925EA8F03D945ACF"><enum>(1)</enum><text>by striking
<quote>(3) Subsection (1) of this section</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H92B0F51A4DAA4105BFB651D499F7E0E2" style="OLC">
<paragraph id="HCBCEA3F28DDD4FA6A6E02F95566759C1" indent="up1"><enum>(3)</enum><header>Exception</header>
<subparagraph id="HD146AAFBFD4443F1AF9E589B975479D8"><enum>(A)</enum><header>In general</header><text>Paragraph
(1)</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H315AF778D38D42B3B2A218ECC2A4B6B0"><enum>(2)</enum><text>by striking
<quote>to any investment trust</quote> and all that follows through the period
at the end and inserting the following: “to any commodity pool that is engaged
primarily in trading commodity interests.</text>
<quoted-block display-inline="no-display-inline" id="HE61707210DF248E7B3F74502899972E9" style="OLC">
<subparagraph id="HBBCBC77934134F99AAE82BFDEDE472DF" indent="up1"><enum>(B)</enum><header>Engaged primarily</header><text>For
purposes of subparagraph (A), a commodity trading advisor or a commodity pool
shall be considered to be <quote>engaged primarily</quote> in the business of
being a commodity trading advisor or commodity pool if it is or holds itself
out to the public as being engaged primarily, or proposes to engage primarily,
in the business of advising on commodity interests or investing, reinvesting,
owning, holding, or trading in commodity interests, respectively.</text>
</subparagraph><subparagraph id="H6EA256BD46E54FD3A75603606EE9FA3F" indent="up1"><enum>(C)</enum><header>Commodity
interests</header><text>For purposes of this paragraph, commodity interests
shall include contracts of sale of a commodity for future delivery, options on
such contracts, security futures, swaps, leverage contracts, foreign exchange,
spot and forward contracts on physical commodities, and any monies held in an
account used for trading commodity
interests.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H7385F1CB0AD845FFB6E0F11125470B15"><enum>(c)</enum><text>Section 5c of the
Commodity Exchange Act (7 U.S.C. 7a–2) is amended—</text>
<paragraph id="HEA19455FA9264BC3A5F7B699CB1DB8AB"><enum>(1)</enum><text>in subsection
(a)(1)—</text>
<subparagraph id="HD6B38B84DBB248D4BB19815B3FBB6948"><enum>(A)</enum><text>by striking
<quote>, 5a(d),</quote>; and</text>
</subparagraph><subparagraph id="H72A3592B82BE46A1ACDBAC153A0C1737"><enum>(B)</enum><text>by striking
<quote>and section (2)(h)(7) with respect to significant price discovery
contracts,</quote>; and</text>
</subparagraph></paragraph><paragraph id="H9FD790BF00734AE98E35C74CDAB7E227"><enum>(2)</enum><text>in subsection
(f)(1), by striking <quote>section 4d(c) of this Act</quote> and inserting
<quote>section 4d(e)</quote>.</text>
</paragraph></subsection><subsection id="HFA6B3C8D42B34DA2976B9D30F82B6AF6"><enum>(d)</enum><text>Section 5e of the
Commodity Exchange Act (7 U.S.C. 7b) is amended by striking <quote>or
revocation of the right of an electronic trading facility to rely on the
exemption set forth in section 2(h)(3) with respect to a significant price
discovery contract,</quote>.</text>
</subsection><subsection id="HD28241D242634A33915B10C52D20B9A4"><enum>(e)</enum><text>Section 6(b) of
the Commodity Exchange Act (7 U.S.C. 8(b)) is amended in the first sentence by
striking <quote>, or to revoke the right of an electronic trading facility to
rely on the exemption set forth in section 2(h)(3) with respect to a
significant price discovery contract,</quote>.</text>
</subsection><subsection id="HEACA5561D324446FBDA8CAB861E6DFB7"><enum>(f)</enum><text>Section
12(e)(2)(B) of the Commodity Exchange Act (7 U.S.C. 16(e)(2)(B)) is
amended—</text>
<paragraph id="H6901A82EE3E74EE1B3E6CF7E3910C127"><enum>(1)</enum><text>by striking
<quote>section 2(c), 2(d), 2(f), or 2(g) of this Act</quote> and inserting
<quote>section 2(c) or 2(f) of this Act</quote>; and</text>
</paragraph><paragraph id="H7BB98183475F438597894A0EFC7D054D"><enum>(2)</enum><text>by striking
<quote>2(h) or</quote>.</text>
</paragraph></subsection><subsection id="H447E868E2D514A1C8CEC9B6E5D600C47"><enum>(g)</enum><text>Section 17(r)(1)
of the Commodity Exchange Act (7 U.S.C. 21(r)(1)) is amended by striking
<quote>section 4d(c) of this Act</quote> and inserting <quote>section
4d(e)</quote>.</text>
</subsection><subsection id="H8E777FE3B0114BB49EED9B945B0E24C1"><enum>(h)</enum><text>Section 22 of the
Commodity Exchange Act is amended—</text>
<paragraph id="HE71C8A6A20AB42FEBBE344DE0AC43F2A"><enum>(1)</enum><text>in subsection
(a)(1)(B), by—</text>
<subparagraph id="H966ABB2F39744826BA8D0AD1B1F498DA"><enum>(A)</enum><text>inserting
<quote>or any swap</quote> after <quote>commodity)</quote>; and</text>
</subparagraph><subparagraph id="H91C184E20314476F9DB874BA943E66A5"><enum>(B)</enum><text>inserting
<quote>or any swap</quote> after <quote>such contract</quote>;</text>
</subparagraph></paragraph><paragraph id="HA9A2D8E0D87341728AD75CA0EA7745B7"><enum>(2)</enum><text>in subsection
(a)(1)(C), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H57205213634446F4B41B51AF33EFD881" style="OLC">
<clause id="HC197016630164D7E99F6E86CB8A855B6"><enum>(iv)</enum><text>a
swap; or</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA4AD523B5A814241966C2C26126064D6"><enum>(3)</enum><text>in subsection
(b)(1)(A), by striking <quote>section 2(h)(7) or sections 5 through 5c</quote>
and inserting <quote>section 5, 5b, 5c, 5h, or 21</quote>.</text>
</paragraph></subsection><subsection id="H8DC4D45A9B1347DF99EE2EB03F8E73CF"><enum>(i)</enum><text>Section 408(2)(C)
of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4421(2)(C)) is amended—</text>
<paragraph id="HC22A640E35CE45B084FBE7F195B0B7FF"><enum>(1)</enum><text>by striking
<quote>section 2(c), 2(d), 2(f), or (2)(g) of such Act</quote> and inserting
<quote>section 2(c), 2(f), or 2(i) of that Act</quote>; and</text>
</paragraph><paragraph id="HC8996AB53C5E4D769C8EE4EA1392EDA1"><enum>(2)</enum><text>by striking
<quote>2(h) or</quote>.</text>
</paragraph></subsection></section><section id="H6C14986C4BCD4F46A0BC7EAF89770B02"><enum>750.</enum><header>Study on
oversight of carbon markets</header>
<subsection id="H59410598A64146F6B2D423C374B98E60"><enum>(a)</enum><header>Interagency
working group</header><text display-inline="yes-display-inline">There is
established to carry out this section an interagency working group (referred to
in this section as the <quote>interagency group</quote>) composed of the
following members or designees:</text>
<paragraph id="H55B7EBB2F50C4C44B43397B11011AB4D"><enum>(1)</enum><text display-inline="yes-display-inline">The Chairman of the Commodity Futures
Trading Commission (referred to in this section as the
<quote>Commission</quote>), who shall serve as Chairman of the interagency
group.</text>
</paragraph><paragraph id="H28D946860FA34B8A9743378ADF5D4948"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary of Agriculture.</text>
</paragraph><paragraph id="H4A3756FCAF254992855417293DB06185"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary of the Treasury.</text>
</paragraph><paragraph id="H3DC73571ACD2432987DA6B473B34EE0F"><enum>(4)</enum><text display-inline="yes-display-inline">The Chairman of the Securities and Exchange
Commission.</text>
</paragraph><paragraph id="HDACCA9BE03D949EDAA3137925AE9CC1C"><enum>(5)</enum><text display-inline="yes-display-inline">The Administrator of the Environmental
Protection Agency.</text>
</paragraph><paragraph id="H07A26C32FAA4449BA614E2066145B41A"><enum>(6)</enum><text display-inline="yes-display-inline">The Chairman of the Federal Energy
Regulatory Commission.</text>
</paragraph><paragraph id="HE61F11096DBA49D6AED435CA3F4BC749"><enum>(7)</enum><text>The Commissioner
of the Federal Trade Commission.</text>
</paragraph><paragraph id="HE698696B618F437FA6ECD62BB05A1B47"><enum>(8)</enum><text>The Administrator
of the Energy Information Administration.</text>
</paragraph></subsection><subsection id="HA9DE9E0BF71A45B6B2EB73661C271A42"><enum>(b)</enum><header>Administrative
support</header><text>The Commission shall provide the interagency group such
administrative support services as are necessary to enable the interagency
group to carry out the functions of the interagency group under this
section.</text>
</subsection><subsection id="H86B6881EF0964A0BA0411F6D8CE43982"><enum>(c)</enum><header>Consultation</header><text>In
carrying out this section, the interagency group shall consult with
representatives of exchanges, clearinghouses, self-regulatory bodies, major
carbon market participants, consumers, and the general public, as the
interagency group determines to be appropriate.</text>
</subsection><subsection id="HD27454533C3D4AD68FF1C8D4F2432DB6"><enum>(d)</enum><header>Study</header><text display-inline="yes-display-inline">The interagency group shall conduct a study
on the oversight of existing and prospective carbon markets to ensure an
efficient, secure, and transparent carbon market, including oversight of spot
markets and derivative markets.</text>
</subsection><subsection id="HDFE0C557B047437584CFE010B2DB597D"><enum>(e)</enum><header>Report</header><text>Not
later than 180 days after the date of enactment of this Act, the interagency
group shall submit to Congress a report on the results of the study conducted
under subsection (b), including recommendations for the oversight of existing
and prospective carbon markets to ensure an efficient, secure, and transparent
carbon market, including oversight of spot markets and derivative
markets.</text>
</subsection></section><section id="H71A3B8028EC644EDA27595A708EC4E33"><enum>751.</enum><header>Energy and
environmental markets advisory committee</header><text display-inline="no-display-inline">Section 2(a) of the Commodity Exchange Act
(7 U.S.C. 2(a)) (as amended by section 727) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF2F8EBC1AFD04560B6FFBFA46FF9A92A" style="OLC">
<paragraph id="H6A7D7294DB0B4CAA9FA4E6690BFCF599"><enum>(15)</enum><header>Energy and
environmental markets advisory committee</header>
<subparagraph id="HFD6FE79BF2E14961AAB0FF8605C5787B"><enum>(A)</enum><header>Establishment</header>
<clause id="H6E825459DC7046819D3A5A5D0A24346A"><enum>(i)</enum><header>In
general</header><text>An Energy and Environmental Markets Advisory Committee is
hereby established.</text>
</clause><clause id="HAD4AD5931ADC492AB8C4A9071AC93BB2"><enum>(ii)</enum><header>Membership</header><text>The
Committee shall have 9 members.</text>
</clause><clause id="HF435ABACDB934D7F8A1CAA38AF96F1DE"><enum>(iii)</enum><header>Activities</header><text>The
Committee’s objectives and scope of activities shall be—</text>
<subclause id="H01478D9A79E844B6905DF4A248F6B707"><enum>(I)</enum><text>to conduct public
meetings;</text>
</subclause><subclause id="H45697C99A68F4E60935228E9C52206CC"><enum>(II)</enum><text>to submit reports
and recommendations to the Commission (including dissenting or minority views,
if any); and</text>
</subclause><subclause id="HA6FEB914A994476DBFDC717CA97D99DA"><enum>(III)</enum><text>otherwise to
serve as a vehicle for discussion and communication on matters of concern to
exchanges, firms, end users, and regulators regarding energy and environmental
markets and their regulation by the Commission.</text>
</subclause></clause></subparagraph><subparagraph id="HFE2B5E9BE6524D4DB73381CF80118746"><enum>(B)</enum><header>Requirements</header>
<clause id="H39B87C720E7E445291720F02F62D01EA"><enum>(i)</enum><header>In
general</header><text>The Committee shall hold public meetings at such
intervals as are necessary to carry out the functions of the Committee, but not
less frequently than 2 times per year.</text>
</clause><clause id="HD54C3E225D0743089CE43DE8B0EE62E5"><enum>(ii)</enum><header>Members</header><text>Members
shall be appointed to 3-year terms, but may be removed for cause by vote of the
Commission.</text>
</clause></subparagraph><subparagraph id="HB3722218997F422A9B3B7E78F8CB9D9D"><enum>(C)</enum><header>Appointment</header><text>The
Commission shall appoint members with a wide diversity of opinion and who
represent a broad spectrum of interests, including hedgers and
consumers.</text>
</subparagraph><subparagraph id="HF3979E51603B4F1C871EC99B4361A2CA"><enum>(D)</enum><header>Reimbursement</header><text>Members
shall be entitled to per diem and travel expense reimbursement by the
Commission.</text>
</subparagraph><subparagraph id="HCAA45B94BB554AD4A03AC1C8AD54FE81"><enum>(E)</enum><header>FACA</header><text>The
Committee shall not be subject to the <act-name parsable-cite="FACA">Federal
Advisory Committee Act</act-name> (5 U.S.C.
App.).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAC20199E7D01454AB8E5576337FC4823"><enum>752.</enum><header>International
harmonization</header>
<subsection id="HEFB652A71E904416AD49CE7AE07E9777"><enum>(a)</enum><text>In order to
promote effective and consistent global regulation of swaps and security-based
swaps, the Commodity Futures Trading Commission, the Securities and Exchange
Commission, and the prudential regulators (as that term is defined in section
1a(39) of the Commodity Exchange Act), as appropriate, shall consult and
coordinate with foreign regulatory authorities on the establishment of
consistent international standards with respect to the regulation (including
fees) of swaps, security-based swaps, swap entities, and security-based swap
entities and may agree to such information-sharing arrangements as may be
deemed to be necessary or appropriate in the public interest or for the
protection of investors, swap counterparties, and security-based swap
counterparties.</text>
</subsection><subsection id="H25832546AE144A6BB1B282CB11C40EF3"><enum>(b)</enum><text>In order to
promote effective and consistent global regulation of contracts of sale of a
commodity for future delivery and options on such contracts, the Commodity
Futures Trading Commission shall consult and coordinate with foreign regulatory
authorities on the establishment of consistent international standards with
respect to the regulation of contracts of sale of a commodity for future
delivery and options on such contracts, and may agree to such
information-sharing arrangements as may be deemed necessary or appropriate in
the public interest for the protection of users of contracts of sale of a
commodity for future delivery.</text>
</subsection></section><section id="HC3A6A59B17684132BE7E8B4A546BC261"><enum>753.</enum><header>Anti-manipulation
authority</header>
<subsection id="H1B951F93FA9643AA9C6440AE973DB918"><enum>(a)</enum><header>Prohibition
regarding manipulation and false information</header><text>Subsection (c) of
section 6 of the Commodity Exchange Act (7 U.S.C. 9, 15) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H3499A086AEEC4D59AC5FE932785805C6" style="OLC">
<subsection id="H08D54EC9949646F2874C7FC289AC46E5"><enum>(c)</enum><header>Prohibition
regarding manipulation and false information</header>
<paragraph id="HCE852741632740CF9EA11083661FE308"><enum>(1)</enum><header>Prohibition
against manipulation</header><text>It shall be unlawful for any person,
directly or indirectly, to use or employ, or attempt to use or employ, in
connection with any swap, or a contract of sale of any commodity in interstate
commerce, or for future delivery on or subject to the rules of any registered
entity, any manipulative or deceptive device or contrivance, in contravention
of such rules and regulations as the Commission shall promulgate by not later
than 1 year after the date of enactment of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, provided no rule or regulation promulgated by the
Commission shall require any person to disclose to another person nonpublic
information that may be material to the market price, rate, or level of the
commodity transaction, except as necessary to make any statement made to the
other person in or in connection with the transaction not misleading in any
material respect.</text>
<subparagraph id="HE4A00969D8EB4B5C9CE4F400A65D98B2"><enum>(A)</enum><header>Special
provision for manipulation by false reporting</header><text>Unlawful
manipulation for purposes of this paragraph shall include, but not be limited
to, delivering, or causing to be delivered for transmission through the mails
or interstate commerce, by any means of communication whatsoever, a false or
misleading or inaccurate report concerning crop or market information or
conditions that affect or tend to affect the price of any commodity in
interstate commerce, knowing, or acting in reckless disregard of the fact that
such report is false, misleading or inaccurate.</text>
</subparagraph><subparagraph id="H4C7C9FC1A9CF4511938D0F405DC91BFD"><enum>(B)</enum><header>Effect on other
law</header><text>Nothing in this paragraph shall affect, or be construed to
affect, the applicability of section 9(a)(2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE433A1D448E74F09A05A53FC8183799A"><enum>(C)</enum><header display-inline="yes-display-inline">Good faith mistakes</header><text display-inline="yes-display-inline">Mistakenly transmitting, in good faith,
false or misleading or inaccurate information to a price reporting service
would not be sufficient to violate subsection (c)(1)(A).</text>
</subparagraph></paragraph><paragraph id="H950D6616BEB04F4C84DE21A377571D53"><enum>(2)</enum><header>Prohibition
regarding false information</header><text>It shall be unlawful for any person
to make any false or misleading statement of a material fact to the Commission,
including in any registration application or any report filed with the
Commission under this Act, or any other information relating to a swap, or a
contract of sale of a commodity, in interstate commerce, or for future delivery
on or subject to the rules of any registered entity, or to omit to state in any
such statement any material fact that is necessary to make any statement of a
material fact made not misleading in any material respect, if the person knew,
or reasonably should have known, the statement to be false or
misleading.</text>
</paragraph><paragraph id="H2013F54974B14FB9B4477A15029E555B"><enum>(3)</enum><header>Other
manipulation</header><text>In addition to the prohibition in paragraph (1), it
shall be unlawful for any person, directly or indirectly, to manipulate or
attempt to manipulate the price of any swap, or of any commodity in interstate
commerce, or for future delivery on or subject to the rules of any registered
entity.</text>
</paragraph><paragraph id="H5C1985DA7DD24F3FBFC0D3867B6FC32F"><enum>(4)</enum><header>Enforcement</header>
<subparagraph id="H2F1FB9564B1F4A1A8B6020075ED6E502"><enum>(A)</enum><header>Authority of
commission</header><text>If the Commission has reason to believe that any
person (other than a registered entity) is violating or has violated this
subsection, or any other provision of this Act (including any rule, regulation,
or order of the Commission promulgated in accordance with this subsection or
any other provision of this Act), the Commission may serve upon the person a
complaint.</text>
</subparagraph><subparagraph id="H3550BB8A4DAF4853A2E98A105BC95165"><enum>(B)</enum><header>Contents of
complaint</header><text>A complaint under subparagraph (A) shall—</text>
<clause id="HC1553F29B8F94591AAAFB826FDE55E65"><enum>(i)</enum><text>contain a
description of the charges against the person that is the subject of the
complaint; and</text>
</clause><clause id="HC4CC5B63BDC74F27BE6DA09EECE8B215"><enum>(ii)</enum><text>have attached or
contain a notice of hearing that specifies the date and location of the hearing
regarding the complaint.</text>
</clause></subparagraph><subparagraph id="HA6603B0B3FF24B9CB0E577D1A9BF0F57"><enum>(C)</enum><header>Hearing</header><text>A
hearing described in subparagraph (B)(ii)—</text>
<clause id="HB855E53CE27B4BD7B44CD9F1BC952E4A"><enum>(i)</enum><text>shall be held not
later than 3 days after service of the complaint described in subparagraph
(A);</text>
</clause><clause id="H96CD04AE188D4BB882053E1DC8BF25F1"><enum>(ii)</enum><text>shall require the
person to show cause regarding why—</text>
<subclause id="HF15026777828466A979BF91EAF60AFC0"><enum>(I)</enum><text>an order should
not be made—</text>
<item id="HAA08692468B642EBA9C4B741A32E42DA"><enum>(aa)</enum><text>to
prohibit the person from trading on, or subject to the rules of, any registered
entity; and</text>
</item><item id="H864B14BCAAB045409BA9D3AAB05DC654"><enum>(bb)</enum><text>to
direct all registered entities to refuse all privileges to the person until
further notice of the Commission; and</text>
</item></subclause><subclause id="HD09F51AA1DF94B8691C6C297D7C5AC80"><enum>(II)</enum><text>the registration
of the person, if registered with the Commission in any capacity, should not be
suspended or revoked; and</text>
</subclause></clause><clause id="H1E696499E89B40AFA3EBD8563E5AD1C1"><enum>(iii)</enum><text>may be held
before—</text>
<subclause id="H730FB1B31FD54E49BA086F10889BD979"><enum>(I)</enum><text>the Commission;
or</text>
</subclause><subclause id="H5CA3494FB72E4B40A25181234F3FFE6D"><enum>(II)</enum><text>an administrative
law judge designated by the Commission, under which the administrative law
judge shall ensure that all evidence is recorded in written form and submitted
to the Commission.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HCC54CCD9EE874F1BAC746171E6DD568B"><enum>(5)</enum><header>Subpoena</header><text>For
the purpose of securing effective enforcement of the provisions of this Act,
for the purpose of any investigation or proceeding under this Act, and for the
purpose of any action taken under section 12(f), any member of the Commission
or any Administrative Law Judge or other officer designated by the Commission
(except as provided in paragraph (7)) may administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence, and require the
production of any books, papers, correspondence, memoranda, or other records
that the Commission deems relevant or material to the inquiry.</text>
</paragraph><paragraph id="HDB49E2F916784FF1A813B03ADB38FCEF"><enum>(6)</enum><header>Witnesses</header><text>The
attendance of witnesses and the production of any such records may be required
from any place in the United States, any State, or any foreign country or
jurisdiction at any designated place of hearing.</text>
</paragraph><paragraph id="HF81AFF97ABA44456B67ADB6FBC470732"><enum>(7)</enum><header>Service</header><text>A
subpoena issued under this section may be served upon any person who is not to
be found within the territorial jurisdiction of any court of the United States
in such manner as the Federal Rules of Civil Procedure prescribe for service of
process in a foreign country, except that a subpoena to be served on a person
who is not to be found within the territorial jurisdiction of any court of the
United States may be issued only on the prior approval of the
Commission.</text>
</paragraph><paragraph id="H030464AC370146AEB2A89DB7F48596EA"><enum>(8)</enum><header>Refusal to
obey</header><text>In case of contumacy by, or refusal to obey a subpoena
issued to, any person, the Commission may invoke the aid of any court of the
United States within the jurisdiction in which the investigation or proceeding
is conducted, or where such person resides or transacts business, in requiring
the attendance and testimony of witnesses and the production of books, papers,
correspondence, memoranda, and other records. Such court may issue an order
requiring such person to appear before the Commission or member or
Administrative Law Judge or other officer designated by the Commission, there
to produce records, if so ordered, or to give testimony touching the matter
under investigation or in question.</text>
</paragraph><paragraph id="HAC214574A12D47D5BE3403100A255766"><enum>(9)</enum><header>Failure to
obey</header><text>Any failure to obey such order of the court may be punished
by the court as a contempt thereof. All process in any such case may be served
in the judicial district wherein such person is an inhabitant or transacts
business or wherever such person may be found.</text>
</paragraph><paragraph id="HA9B4406F737F4FEF8A2B25BCFF3EBCA8"><enum>(10)</enum><header>Evidence</header><text>On
the receipt of evidence under paragraph (4)(C)(iii), the Commission may—</text>
<subparagraph id="H17D5FB82ECCC4D429AC19F3669D1626B"><enum>(A)</enum><text>prohibit the
person that is the subject of the hearing from trading on, or subject to the
rules of, any registered entity and require all registered entities to refuse
the person all privileges on the registered entities for such period as the
Commission may require in the order;</text>
</subparagraph><subparagraph id="H1789E51B8E7A49F9BC70920CE0620FC5"><enum>(B)</enum><text>if the person is
registered with the Commission in any capacity, suspend, for a period not to
exceed 180 days, or revoke, the registration of the person;</text>
</subparagraph><subparagraph id="HA2FEDF8F34B54454914D810F67F93E77"><enum>(C)</enum><text>assess such
person—</text>
<clause id="HA546186F1097449D9717F3E7A2D5146E"><enum>(i)</enum><text>a
civil penalty of not more than an amount equal to the greater of—</text>
<subclause id="HF8A38F0286C5415BAC8BF2CA33B6D14F"><enum>(I)</enum><text>$140,000;
or</text>
</subclause><subclause id="HC7A261B5B60042F1A2D39B906B0501E5"><enum>(II)</enum><text>triple the
monetary gain to such person for each such violation; or</text>
</subclause></clause><clause id="H8E9CC48C5CB64BD89B09C152C8B9AB83"><enum>(ii)</enum><text>in any case of
manipulation or attempted manipulation in violation of this subsection or
section 9(a)(2), a civil penalty of not more than an amount equal to the
greater of—</text>
<subclause id="HE363C50B0A64442DBCD40D76766A2986"><enum>(I)</enum><text>$1,000,000;
or</text>
</subclause><subclause id="HF44D5FDE150B4B9FBF7514688F44ABE9"><enum>(II)</enum><text>triple the
monetary gain to the person for each such violation; and</text>
</subclause></clause></subparagraph><subparagraph id="H52D0A55971634AD19B64FF0BE0F86C4A"><enum>(D)</enum><text>require
restitution to customers of damages proximately caused by violations of the
person.</text>
</subparagraph></paragraph><paragraph id="H066BB919D330404B8350BA05E4759AA5"><enum>(11)</enum><header>Orders</header>
<subparagraph id="H041A51A85C274E1FA3AB092A78411942"><enum>(A)</enum><header>Notice</header><text>The
Commission shall provide to a person described in paragraph (10) and the
appropriate governing board of the registered entity notice of the order
described in paragraph (10) by—</text>
<clause id="H596ADF2746BA4DFD84B0AEEC6FD7FB59"><enum>(i)</enum><text>registered
mail;</text>
</clause><clause id="HFBBD172DF3354051B381414E85CD87AF"><enum>(ii)</enum><text>certified mail;
or</text>
</clause><clause id="H5545DEC1EB734F57B799D4AA4FBE08F6"><enum>(iii)</enum><text>personal
delivery.</text>
</clause></subparagraph><subparagraph id="H0F4AADE119774D9BAC76FF480E805F75"><enum>(B)</enum><header>Review</header>
<clause id="H2E87B2F5C8754CF799B3D9A986EBC349"><enum>(i)</enum><header>In
general</header><text>A person described in paragraph (10) may obtain a review
of the order or such other equitable relief as determined to be appropriate by
a court described in clause (ii).</text>
</clause><clause id="H1512979A489B45D6ABAFF33C623652A1"><enum>(ii)</enum><header>Petition</header><text>To
obtain a review or other relief under clause (i), a person may, not later than
15 days after notice is given to the person under clause (i), file a written
petition to set aside the order with the United States Court of Appeals—</text>
<subclause id="HD8183920BA1245F18FD677E31F3244FD"><enum>(I)</enum><text>for the circuit in
which the petitioner carries out the business of the petitioner; or</text>
</subclause><subclause id="HBF6F8960634D4886A4327ED33F73C158"><enum>(II)</enum><text>in the case of an
order denying registration, the circuit in which the principal place of
business of the petitioner is located, as listed on the application for
registration of the petitioner.</text>
</subclause></clause></subparagraph><subparagraph id="H2FD1B01B0FF042E2B8746767F128158D"><enum>(C)</enum><header>Procedure</header>
<clause id="HC4AA8D8F965A4F97A700AAEBB5F5D4A7"><enum>(i)</enum><header>Duty of clerk of
appropriate court</header><text>The clerk of the appropriate court under
subparagraph (B)(ii) shall transmit to the Commission a copy of a petition
filed under subparagraph (B)(ii).</text>
</clause><clause id="H2973C08A74874E8793F11017AC9D6CB7"><enum>(ii)</enum><header>Duty of
commission</header><text>In accordance with section 2112 of title 28, United
States Code, the Commission shall file in the appropriate court described in
subparagraph (B)(ii) the record theretofore made.</text>
</clause><clause id="HAEC5DFF3692E43768F900ED2E19D20BB"><enum>(iii)</enum><header>Jurisdiction
of appropriate court</header><text>Upon the filing of a petition under
subparagraph (B)(ii), the appropriate court described in subparagraph (B)(ii)
may affirm, set aside, or modify the order of the
Commission.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H21F171F73E374606BBEE4CCDFB4C7A9C"><enum>(b)</enum><header>Cease and desist
orders, fines</header><text>Section 6(d) of the Commodity Exchange Act (7
U.S.C. 13b) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4E940BC76DA7483AB1EB49ED43C0B3FB" style="OLC">
<subsection id="H552472D037634FABBFE0E9CFB6EBCA43"><enum>(d)</enum><text>If any person
(other than a registered entity), is violating or has violated subsection (c)
or any other provisions of this Act or of the rules, regulations, or orders of
the Commission thereunder, the Commission may, upon notice and hearing, and
subject to appeal as in other cases provided for in subsection (c), make and
enter an order directing that such person shall cease and desist therefrom and,
if such person thereafter and after the lapse of the period allowed for appeal
of such order or after the affirmance of such order, shall knowingly fail or
refuse to obey or comply with such order, such person, upon conviction thereof,
shall be fined not more than the higher of $140,000 or triple the monetary gain
to such person, or imprisoned for not more than 1 year, or both, except that if
such knowing failure or refusal to obey or comply with such order involves any
offense within subsection (a) or (b) of section 9, such person, upon conviction
thereof, shall be subject to the penalties of said subsection (a) or
(b):<italic> Provided</italic>, That any such cease and desist order under this
subsection against any respondent in any case of manipulation shall be issued
only in conjunction with an order issued against such respondent under
subsection
(c).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFBDD06C076D94C4EAA52D8BE9DB2672F"><enum>(c)</enum><header>Manipulations;
private rights of action</header><text>Section 22(a)(1) of the Commodity
Exchange Act (7 U.S.C. 25(a)(1)) is amended by striking subparagraph (D) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H84BF530762CB4B97B6AC5B33EB67F7AA" style="OLC">
<subparagraph id="H88EF3D8E9E9542E8BB982B9E5715145F" indent="up1"><enum>(D)</enum><text>who purchased or sold a contract
referred to in subparagraph (B) hereof or swap if the violation
constitutes—</text>
<clause id="H96BE1884E1A547D9A428C5B8496C39F7"><enum>(i)</enum><text>the use or employment of, or an
attempt to use or employ, in connection with a swap, or a contract of sale of a
commodity, in interstate commerce, or for future delivery on or subject to the
rules of any registered entity, any manipulative device or contrivance in
contravention of such rules and regulations as the Commission shall promulgate
by not later than 1 year after the date of enactment of the Dodd-Frank Wall
Street Reform and Consumer Protection Act; or</text>
</clause><clause id="HD669191FA61A4D26952934BC8440B337"><enum>(ii)</enum><text>a manipulation of the price of any
such contract or swap or the price of the commodity underlying such contract or
swap.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H14CF5028BFF34C098DA0C0CF48D42497"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H3FCA458DC4B54D368F5A14A5994A91F3"><enum>(1)</enum><text>The amendments
made by this section shall take effect on the date on which the final rule
promulgated by the Commodity Futures Trading Commission pursuant to this Act
takes effect.</text>
</paragraph><paragraph id="H54FEA2049F44486A8C2E7CEBB39D1B31"><enum>(2)</enum><text>Paragraph (1)
shall not preclude the Commission from undertaking prior to the effective date
any rulemaking necessary to implement the amendments contained in this
section.</text>
</paragraph></subsection></section><section id="H91710B193CE74188ACB079282916ABB3"><enum>754.</enum><header>Effective
date</header><text display-inline="no-display-inline">Unless otherwise provided
in this title, the provisions of this subtitle shall take effect on the later
of 360 days after the date of the enactment of this subtitle or, to the extent
a provision of this subtitle requires a rulemaking, not less than 60 days after
publication of the final rule or regulation implementing such provision of this
subtitle.</text>
</section></part></subtitle><subtitle id="H69D247289E7E42B1A775F57D0BF55ADE"><enum>B</enum><header>Regulation of
Security-Based Swap Markets</header>
<section id="HF94310CB7E104984AF9F59BFC3FD09F9"><enum>761.</enum><header>Definitions
under the Securities Exchange Act of 1934</header>
<subsection id="H0896EB8D37244655A887D6FF007EC1C0"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)) is amended—</text>
<paragraph id="H80CD60307E0E418B92A02A2E50875521"><enum>(1)</enum><text>in subparagraphs
(A) and (B) of paragraph (5), by inserting <quote>(not including security-based
swaps, other than security-based swaps with or for persons that are not
eligible contract participants)</quote> after <quote>securities</quote> each
place that term appears;</text>
</paragraph><paragraph id="H06E6CBB8982F438196C9F38C046DB54C"><enum>(2)</enum><text>in paragraph (10),
by inserting <quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph id="H6C2F425F27084547ADC1C79C8F85791F"><enum>(3)</enum><text>in paragraph (13),
by adding at the end the following: <quote>For security-based swaps, such terms
include the execution, termination (prior to its scheduled maturity date),
assignment, exchange, or similar transfer or conveyance of, or extinguishing of
rights or obligations under, a security-based swap, as the context may
require.</quote>;</text>
</paragraph><paragraph id="H9A2E490A88D744AAB88912FEE71E485F"><enum>(4)</enum><text>in paragraph (14),
by adding at the end the following: <quote>For security-based swaps, such terms
include the execution, termination (prior to its scheduled maturity date),
assignment, exchange, or similar transfer or conveyance of, or extinguishing of
rights or obligations under, a security-based swap, as the context may
require.</quote>;</text>
</paragraph><paragraph id="H2D459748E2E44A6D9967C88A42C0A164"><enum>(5)</enum><text>in paragraph
(39)—</text>
<subparagraph id="HA498EADEEAFD435FA944708144BD7AE7"><enum>(A)</enum><text>in subparagraph
(B)(i)—</text>
<clause id="H061255324F5D41159EC9634F74A02FF1"><enum>(i)</enum><text>in
subclause (I), by striking <quote>or government securities dealer</quote> and
inserting <quote>government securities dealer, security-based swap dealer, or
major security-based swap participant</quote>; and</text>
</clause><clause id="H2852362860E94351B2CA41B9CFB81C4E"><enum>(ii)</enum><text>in
subclause (II), by inserting <quote>security-based swap dealer, major
security-based swap participant,</quote> after <quote>government securities
dealer,</quote>;</text>
</clause></subparagraph><subparagraph id="H51811D98B41B44ACBE5B8636340FB997"><enum>(B)</enum><text>in subparagraph
(C), by striking <quote>or government securities dealer</quote> and inserting
<quote>government securities dealer, security-based swap dealer, or major
security-based swap participant</quote>; and</text>
</subparagraph><subparagraph id="HCEF52AB019A24AD9B47AC9D97FD4939A"><enum>(C)</enum><text>in subparagraph
(D), by inserting <quote>security-based swap dealer, major security-based swap
participant,</quote> after <quote>government securities dealer,</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H032ABC1DB63E4D1097F895FB67C60939"><enum>(6)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HC58622BAA2754E80B31859269897CF65" style="OLC">
<paragraph id="H9AD962D78AA247D8892135C789FC0FF6"><enum>(65)</enum><header>Eligible
contract participant</header><text>The term <term>eligible contract
participant</term> has the same meaning as in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="H029F53E067CC4B488378785156969098"><enum>(66)</enum><header>Major swap
participant</header><text>The term <term>major swap participant</term> has the
same meaning as in section 1a of the Commodity Exchange Act (7 U.S.C.
1a).</text>
</paragraph><paragraph id="H983C0C0AD07C41D092C3BA5365300867"><enum>(67)</enum><header>Major
security-based swap participant</header>
<subparagraph id="H47301B8F586244D49BA37B527061AA61"><enum>(A)</enum><header>In
general</header><text>The term <term>major security-based swap
participant</term> means any person—</text>
<clause id="HCDAD30CEEC4C42E2994CF6388FEC6ECC"><enum>(i)</enum><text>who is not a
security-based swap dealer; and</text>
</clause><clause id="HB83FB30CC9CE4D83B0DC806695BFBE72"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HB2417B1182C64E58A476DBEABDD54F67"><enum>(I)</enum><text>who maintains a
substantial position in security-based swaps for any of the major
security-based swap categories, as such categories are determined by the
Commission, excluding both positions held for hedging or mitigating commercial
risk and positions maintained by any employee benefit plan (or any contract
held by such a plan) as defined in paragraphs (3) and (32) of section 3 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002) for the
primary purpose of hedging or mitigating any risk directly associated with the
operation of the plan;</text>
</subclause><subclause id="HEF9F4D83AB9B401294ADC79EBCEB4818" indent="up1"><enum>(II)</enum><text>whose outstanding security-based swaps
create substantial counterparty exposure that could have serious adverse
effects on the financial stability of the United States banking system or
financial markets; or</text>
</subclause><subclause id="H2C161985AA1443F4B3EC41129327BD62" indent="up1"><enum>(III)</enum><text>that is a financial entity that—</text>
<item id="HEED8B258B8C849BF946B36A849EF8FB5"><enum>(aa)</enum><text>is highly leveraged relative to the
amount of capital such entity holds and that is not subject to capital
requirements established by an appropriate Federal banking agency; and</text>
</item><item id="H497D0AF2143C411A870C8D75E97F1A0D"><enum>(bb)</enum><text>maintains a substantial position in
outstanding security-based swaps in any major security-based swap category, as
such categories are determined by the Commission.</text>
</item></subclause></clause></subparagraph><subparagraph id="H8E6CD3B1D86D4C0FB87C5B3699A0EA15"><enum>(B)</enum><header>Definition of
substantial position</header><text>For purposes of subparagraph (A), the
Commission shall define, by rule or regulation, the term <term>substantial
position</term> at the threshold that the Commission determines to be prudent
for the effective monitoring, management, and oversight of entities that are
systemically important or can significantly impact the financial system of the
United States. In setting the definition under this subparagraph, the
Commission shall consider the person’s relative position in uncleared as
opposed to cleared security-based swaps and may take into consideration the
value and quality of collateral held against counterparty exposures.</text>
</subparagraph><subparagraph id="HBFA2559A12FF464596FFE2F053DFE207"><enum>(C)</enum><header>Scope of
designation</header><text>For purposes of subparagraph (A), a person may be
designated as a major security-based swap participant for 1 or more categories
of security-based swaps without being classified as a major security-based swap
participant for all classes of security-based swaps.</text>
</subparagraph></paragraph><paragraph id="HE9B126872D7D46C3998883E45641F986"><enum>(68)</enum><header>Security-based
swap</header>
<subparagraph id="H0032F5BAB95E4A4A8A7B952120FA6159"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>security-based swap</term> means any agreement, contract, or transaction
that—</text>
<clause id="HAF0C7C2A7F664654AF2EBB19A63A1AC9"><enum>(i)</enum><text>is
a swap, as that term is defined under section 1a of the Commodity Exchange Act
(without regard to paragraph (47)(B)(x) of such section); and</text>
</clause><clause id="H275970E32AD849F5B436B6BD6D3F37DE"><enum>(ii)</enum><text>is based
on—</text>
<subclause id="HDA4FF3C27EA7428EBCDE7681C31167D0"><enum>(I)</enum><text>an index that is a
narrow-based security index, including any interest therein or on the value
thereof;</text>
</subclause><subclause id="H4782BACE3ABC40AFA27C41146B0354B6"><enum>(II)</enum><text>a single security
or loan, including any interest therein or on the value thereof; or</text>
</subclause><subclause id="H48385DA2871042B5B4A22237DE8134DA"><enum>(III)</enum><text>the occurrence,
nonoccurrence, or extent of the occurrence of an event relating to a single
issuer of a security or the issuers of securities in a narrow-based security
index, provided that such event directly affects the financial statements,
financial condition, or financial obligations of the issuer.</text>
</subclause></clause></subparagraph><subparagraph id="HA9E83B7D9FBB41ADBEB015B40228E1C4"><enum>(B)</enum><header>Rule of
construction regarding master agreements</header><text>The term
<term>security-based swap</term> shall be construed to include a master
agreement that provides for an agreement, contract, or transaction that is a
security-based swap pursuant to subparagraph (A), together with all supplements
to any such master agreement, without regard to whether the master agreement
contains an agreement, contract, or transaction that is not a security-based
swap pursuant to subparagraph (A), except that the master agreement shall be
considered to be a security-based swap only with respect to each agreement,
contract, or transaction under the master agreement that is a security-based
swap pursuant to subparagraph (A).</text>
</subparagraph><subparagraph id="H3192448C2B414E64A1E5A227852F2D90"><enum>(C)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The term <term>security-based swap</term>
does not include any agreement, contract, or transaction that meets the
definition of a security-based swap only because such agreement, contract, or
transaction references, is based upon, or settles through the transfer,
delivery, or receipt of an exempted security under paragraph (12), as in effect
on the date of enactment of the Futures Trading Act of 1982 (other than any
municipal security as defined in paragraph (29) as in effect on the date of
enactment of the Futures Trading Act of 1982), unless such agreement, contract,
or transaction is of the character of, or is commonly known in the trade as, a
put, call, or other option.</text>
</subparagraph><subparagraph id="HA1E345EAA1FA426AA7DD06D54E0DC679"><enum>(D)</enum><header>Mixed
swap</header><text>The term <quote>security-based swap</quote> includes any
agreement, contract, or transaction that is as described in subparagraph (A)
and also is based on the value of 1 or more interest or other rates,
currencies, commodities, instruments of indebtedness, indices, quantitative
measures, other financial or economic interest or property of any kind (other
than a single security or a narrow-based security index), or the occurrence,
non-occurrence, or the extent of the occurrence of an event or contingency
associated with a potential financial, economic, or commercial consequence
(other than an event described in subparagraph (A)(ii)(III)).</text>
</subparagraph><subparagraph id="H5952C05C126940149CAF014B86C2FCD8"><enum>(E)</enum><header>Rule of
construction regarding use of the term index</header><text>The term
<quote>index</quote> means an index or group of securities, including any
interest therein or based on the value thereof.</text>
</subparagraph></paragraph><paragraph id="HA3342CEE83024831BEBD29C4508C5449"><enum>(69)</enum><header>Swap</header><text>The
term <term>swap</term> has the same meaning as in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="HC53ADC123DE549F0AA5F9907D625182F"><enum>(70)</enum><header>Person
associated with a security-based swap dealer or major security-based swap
participant</header>
<subparagraph id="H3D0394F438AA4FE49FD9644411F83A7C"><enum>(A)</enum><header>In
general</header><text>The term <term>person associated with a security-based
swap dealer or major security-based swap participant</term> or <term>associated
person of a security-based swap dealer or major security-based swap
participant</term> means—</text>
<clause id="H01721C6F499C42D29D9A1EADF034C1DE"><enum>(i)</enum><text>any partner,
officer, director, or branch manager of such security-based swap dealer or
major security-based swap participant (or any person occupying a similar status
or performing similar functions);</text>
</clause><clause id="HA54CC1C16B214853BFBDB76E1E6872E3"><enum>(ii)</enum><text>any person
directly or indirectly controlling, controlled by, or under common control with
such security-based swap dealer or major security-based swap participant;
or</text>
</clause><clause id="H00BC8C48F6D54BFCBA5DBEB66F38572C"><enum>(iii)</enum><text>any employee of
such security-based swap dealer or major security-based swap
participant.</text>
</clause></subparagraph><subparagraph id="H11125B43F0CD47138732ED45F4AE4585"><enum>(B)</enum><header>Exclusion</header><text>Other
than for purposes of section 15F(l)(2), the term <term>person associated with a
security-based swap dealer or major security-based swap participant</term> or
<term>associated person of a security-based swap dealer or major security-based
swap participant</term> does not include any person associated with a
security-based swap dealer or major security-based swap participant whose
functions are solely clerical or ministerial.</text>
</subparagraph></paragraph><paragraph id="HBDE2EF6406CE432AA862A5632FC3093A"><enum>(71)</enum><header>Security-based
swap dealer</header>
<subparagraph id="H960E07B945D04A0FB51A09029464ECEC"><enum>(A)</enum><header>In
general</header><text>The term <term>security-based swap dealer</term> means
any person who—</text>
<clause id="HE9BD5F8961D14E84845DA2FB1E58B6B4"><enum>(i)</enum><text display-inline="yes-display-inline">holds themself out as a dealer in
security-based swaps;</text>
</clause><clause id="H006F137CFCB6497B80666B8F1AA11C32"><enum>(ii)</enum><text>makes a market in
security-based swaps;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9AE38B905FA947ABAB7CED33C99E5E84"><enum>(iii)</enum><text display-inline="yes-display-inline">regularly enters into security-based swaps
with counterparties as an ordinary course of business for its own account;
or</text>
</clause><clause id="H625887DB04C148C9ABD553DBE1B19149"><enum>(iv)</enum><text>engages in any
activity causing it to be commonly known in the trade as a dealer or market
maker in security-based swaps.</text>
</clause></subparagraph><subparagraph id="H8F721C6E15984A0487FA06D201BF32B8"><enum>(B)</enum><header>Designation by
type or class</header><text>A person may be designated as a security-based swap
dealer for a single type or single class or category of security-based swap or
activities and considered not to be a security-based swap dealer for other
types, classes, or categories of security-based swaps or activities.</text>
</subparagraph><subparagraph id="H536D9638255443ECA0F60D4A573566D6"><enum>(C)</enum><header>Exception</header><text>The
term <term>security-based swap dealer</term> does not include a person that
enters into security-based swaps for such person’s own account, either
individually or in a fiduciary capacity, but not as a part of regular
business.</text>
</subparagraph><subparagraph id="H2E904C3F984B4041978AA6FA2E6F1DD4"><enum>(D)</enum><header>De minimis
exception</header><text>The Commission shall exempt from designation as a
security-based swap dealer an entity that engages in a de minimis quantity of
security-based swap dealing in connection with transactions with or on behalf
of its customers. The Commission shall promulgate regulations to establish
factors with respect to the making of any determination to exempt.</text>
</subparagraph></paragraph><paragraph id="HD53A9A59AABC4A26853FFE66D9820316"><enum>(72)</enum><header>Appropriate
Federal banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the same meaning as in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="H7528F35F926D4B478D6292E6740DC798"><enum>(73)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><paragraph id="HBFA4B7F37FC04B6D8D876DD49C475FC5"><enum>(74)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term> has the same
meaning as in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="HA2DB974E54B34FBDA44401094CD4A722"><enum>(75)</enum><header>Security-based
swap data repository</header><text display-inline="yes-display-inline">The term
<term>security-based swap data repository</term> means any person that collects
and maintains information or records with respect to transactions or positions
in, or the terms and conditions of, security-based swaps entered into by third
parties for the purpose of providing a centralized recordkeeping facility for
security-based swaps.</text>
</paragraph><paragraph id="H93EAC4A1C2614E138CD7293623B4DCEF"><enum>(76)</enum><header>Swap
dealer</header><text>The term <term>swap dealer</term> has the same meaning as
in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="H77CF309356CE4F14B88D5F0108EB12DC"><enum>(77)</enum><header>Security-based
swap execution facility</header><text>The term <quote>security-based swap
execution facility</quote> means a trading system or platform in which multiple
participants have the ability to execute or trade security-based swaps by
accepting bids and offers made by multiple participants in the facility or
system, through any means of interstate commerce, including any trading
facility, that—</text>
<subparagraph id="HB65EF404325345829A866EA923EC9AE6"><enum>(A)</enum><text>facilitates the
execution of security-based swaps between persons; and</text>
</subparagraph><subparagraph id="HB505E08B51554B6DAE43BBE81F03B5C0"><enum>(B)</enum><text>is not a national
securities exchange.</text>
</subparagraph></paragraph><paragraph id="H05D01C27EBA94626BDD172C558D3890C"><enum>(78)</enum><header>Security-based
swap agreement</header>
<subparagraph id="HC281780CC3D04F888CBB38293D1AFD19"><enum>(A)</enum><header>In
general</header><text>For purposes of sections 9, 10, 16, 20, and 21A of this
Act, and section 17 of the Securities Act of 1933 (15 U.S.C. 77q), the term
<quote>security-based swap agreement</quote> means a swap agreement as defined
in section 206A of the Gramm-Leach-Bliley Act (15 U.S.C. 78c note) of which a
material term is based on the price, yield, value, or volatility of any
security or any group or index of securities, or any interest therein.</text>
</subparagraph><subparagraph id="H2AF99E7FCE3E40A5B4347F23967A7CFA"><enum>(B)</enum><header>Exclusions</header><text>The
term <quote>security-based swap agreement</quote> does not include any
security-based
swap.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2C396A9715AD4A79BDA9DFC57E1C3B96"><enum>(b)</enum><header>Authority To
further define terms</header><text display-inline="yes-display-inline">The
Securities and Exchange Commission may, by rule, further define—</text>
<paragraph id="HAD7FE8C1E2DF4DA6AED457D9FAF7AAD1"><enum>(1)</enum><text>the term
<term>commercial risk</term>;</text>
</paragraph><paragraph id="HA24677078E084B4E96A81DD7DE328BE4"><enum>(2)</enum><text>any other term
included in an amendment to the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)) made by this subtitle; and</text>
</paragraph><paragraph id="HB51FC0244DF546A6943F34FBACD0CF1F"><enum>(3)</enum><text display-inline="yes-display-inline">the terms <term>security-based swap</term>,
<term>security-based swap dealer</term>, <term>major security-based swap
participant</term>, and <term>eligible contract participant</term>, with regard
to security-based swaps (as such terms are defined in the amendments made by
subsection (a)) for the purpose of including transactions and entities that
have been structured to evade this subtitle or the amendments made by this
subtitle.</text>
</paragraph></subsection></section><section id="H7D66C0A45E484249A8C769C295465008"><enum>762.</enum><header>Repeal of
prohibition on regulation of security-based swap agreements</header>
<subsection id="H21AB3107559B442CA27D5425A4FB57D4"><enum>(a)</enum><header>Repeal</header><text>Sections
206B and 206C of the Gramm-Leach-Bliley Act (Public Law 106–102; 15 U.S.C. 78c
note) are repealed.</text>
</subsection><subsection id="H280994FBBA5142729DEFA17F76AF2B0E"><enum>(b)</enum><header>Conforming
amendments to Gramm-Leach-Bliley</header><text>Section 206A(a) of the
Gramm-Leach-Bliley Act (15 U.S.C. 78c note) is amended in the material
preceding paragraph (1), by striking <quote>Except as</quote> and all that
follows through <quote>that—</quote> and inserting the following: <quote>Except
as provided in subsection (b), as used in this section, the term <quote>swap
agreement</quote> means any agreement, contract, or transaction that—</quote>
.</text>
</subsection><subsection id="HF6ECDCE8CD544ABA80B848D08C716A03"><enum>(c)</enum><header>Conforming
amendments to the Securities Act of 1933</header>
<paragraph id="H5307C1BCC10F47158A96865740224EF2"><enum>(1)</enum><text>Section 2A of the
Securities Act of 1933 (15 U.S.C. 77b–1) is amended—</text>
<subparagraph id="HF9BD18799EB34FEFBBF14D000829FE16"><enum>(A)</enum><text>by striking
subsection (a) and reserving that subsection; and</text>
</subparagraph><subparagraph id="H3BD7685BB8154C34B1342672FA733264"><enum>(B)</enum><text>by striking
<quote>(as defined in section 206B of the Gramm-Leach-Bliley Act)</quote> each
place that such term appears and inserting <quote>(as defined in section
3(a)(78) of the Securities Exchange Act of 1934)</quote>.</text>
</subparagraph></paragraph><paragraph id="H208F01AA4237445FA24A899D857AC37D"><enum>(2)</enum><text>Section 17 of the
Securities Act of 1933 (15 U.S.C. 77q) is amended—</text>
<subparagraph id="HBBC94B8B53C445C0903249DD3D1A5072"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H2FC1DDE2369A482887AD621360C1A616"><enum>(i)</enum><text>by
inserting <quote>(including security-based swaps)</quote> after
<quote>securities</quote>; and</text>
</clause><clause id="HC5EE8D7FE8014F4AA5E129266780F693"><enum>(ii)</enum><text>by
striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote> and inserting <quote>(as defined in section 3(a)(78) of the
Securities Exchange Act)</quote>; and</text>
</clause></subparagraph><subparagraph id="H06B47515B55544CDBE923E4355409454"><enum>(B)</enum><text>in subsection (d),
by striking “206B of the Gramm-Leach-Bliley Act” and inserting <quote>3(a)(78)
of the Securities Exchange Act of 1934</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HD9F4AABBF53A4BBEBA16EC7F87DCFB3E"><enum>(d)</enum><header>Conforming
amendments to the Securities Exchange Act of 1934</header><text>The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<paragraph id="H114574D7557C4BFB9919CC4BEC9D2073"><enum>(1)</enum><text>in section 3A (15
U.S.C. 78c–1)—</text>
<subparagraph id="HC58603FC7D7F451FA06BAB46B06C4206"><enum>(A)</enum><text>by striking
subsection (a) and reserving that subsection; and</text>
</subparagraph><subparagraph id="HFEEA892EA1B143149706C1001EBBC2CF"><enum>(B)</enum><text>by striking “(as
defined in section 206B of the Gramm-Leach-Bliley Act)” each place that the
term appears;</text>
</subparagraph></paragraph><paragraph id="HDFC8C6AA627B42A7BF6AA36B96A19BFD"><enum>(2)</enum><text>in section 9 (15
U.S.C. 78i)—</text>
<subparagraph id="H4A4B1025F2B4405A8C347050AFA1EE36"><enum>(A)</enum><text>in subsection (a),
by striking paragraphs (2) through (5) and inserting the following:</text>
<quoted-block id="H5AA537A3A14A47749CF131FA13B01FFF" style="OLC">
<paragraph id="HC6F03C854A4E4E1383817432C8B8B648" indent="up1"><enum>(2)</enum><text>To effect, alone or with 1 or more
other persons, a series of transactions in any security registered on a
national securities exchange, any security not so registered, or in connection
with any security-based swap or security-based swap agreement with respect to
such security creating actual or apparent active trading in such security, or
raising or depressing the price of such security, for the purpose of inducing
the purchase or sale of such security by others.</text>
</paragraph><paragraph id="H9B5F63C0FEA74D639B12384B1CFBCF2F" indent="up1"><enum>(3)</enum><text>If a dealer, broker, security-based
swap dealer, major security-based swap participant, or other person selling or
offering for sale or purchasing or offering to purchase the security, a
security-based swap, or a security-based swap agreement with respect to such
security, to induce the purchase or sale of any security registered on a
national securities exchange, any security not so registered, any
security-based swap, or any security-based swap agreement with respect to such
security by the circulation or dissemination in the ordinary course of business
of information to the effect that the price of any such security will or is
likely to rise or fall because of market operations of any 1 or more persons
conducted for the purpose of raising or depressing the price of such
security.</text>
</paragraph><paragraph id="H92688AA567CB4421BE55AE7BB5933AC9" indent="up1"><enum>(4)</enum><text>If a dealer, broker, security-based
swap dealer, major security-based swap participant, or other person selling or
offering for sale or purchasing or offering to purchase the security, a
security-based swap, or security-based swap agreement with respect to such
security, to make, regarding any security registered on a national securities
exchange, any security not so registered, any security-based swap, or any
security-based swap agreement with respect to such security, for the purpose of
inducing the purchase or sale of such security, such security-based swap, or
such security-based swap agreement any statement which was at the time and in
the light of the circumstances under which it was made, false or misleading
with respect to any material fact, and which that person knew or had reasonable
ground to believe was so false or misleading.</text>
</paragraph><paragraph id="HE86305F9BCDC4D86BF9178BDA0F00735" indent="up1"><enum>(5)</enum><text>For a consideration, received
directly or indirectly from a broker, dealer, security-based swap dealer, major
security-based swap participant, or other person selling or offering for sale
or purchasing or offering to purchase the security, a security-based swap, or
security-based swap agreement with respect to such security, to induce the
purchase of any security registered on a national securities exchange, any
security not so registered, any security-based swap, or any security-based swap
agreement with respect to such security by the circulation or dissemination of
information to the effect that the price of any such security will or is likely
to rise or fall because of the market operations of any 1 or more persons
conducted for the purpose of raising or depressing the price of such
security.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HEC374B2E49ED41DC83BF5D75992E83E6"><enum>(B)</enum><text>in subsection (i),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="HFE466526237D411FB957F9792E35699D"><enum>(3)</enum><text>in section 10 (15
U.S.C. 78j)—</text>
<subparagraph id="H05106D37C0E6437A91531BFFEEA80CDB"><enum>(A)</enum><text>in subsection (b),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act),</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="HCE59DE0D6916465DA131DA98A5C5FE8C"><enum>(B)</enum><text>in the matter
following subsection (b), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act), in each place that such terms appear</quote>;</text>
</subparagraph></paragraph><paragraph id="H3F14B552BEA5470CAF22E3D0F62C8552"><enum>(4)</enum><text>in section 15 (15
U.S.C. 78o)—</text>
<subparagraph id="H15FC7F1336864E37A1B841D0B22EEA7B"><enum>(A)</enum><text>in subsection
(c)(1)(A), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act),</quote>;</text>
</subparagraph><subparagraph id="H7E67A6C8B888482DAD1C699E45EBDFFC"><enum>(B)</enum><text>in subparagraphs
(B) and (C) of subsection (c)(1), by striking <quote>(as defined in section
206B of the Gramm-Leach-Bliley Act)</quote> each place that term
appears;</text>
</subparagraph><subparagraph id="H37EE35DA97A84345902AB0C764F7B937"><enum>(C)</enum><text>by redesignating
subsection (i), as added by section 303(f) of the Commodity Futures
Modernization Act of 2000 (Public Law 106–554; 114 Stat. 2763A–455)), as
subsection (j); and</text>
</subparagraph><subparagraph id="H7439E29B24334EEBB82654AA5B14B877"><enum>(D)</enum><text>in subsection (j),
as redesignated by subparagraph (C), by striking <quote>(as defined in section
206B of the Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="H3E8AF25E26FF4F4BB84968F31A6486EA"><enum>(5)</enum><text>in section 16 (15
U.S.C. 78p)—</text>
<subparagraph id="H432E1FE7185C42228CC0384818DABB49"><enum>(A)</enum><text>in subsection
(a)(2)(C), by striking <quote>(as defined in section 206(b) of the
Gramm-Leach-Bliley Act (15 U.S.C. 78c note))</quote>;</text>
</subparagraph><subparagraph id="HA30AD362363B4494885E84A9FC3367A6"><enum>(B)</enum><text>in subsection
(a)(3)(B), by inserting <quote>or security-based swaps</quote> after
<quote>security-based swap agreement</quote>;</text>
</subparagraph><subparagraph id="H6F5152CFA01945CA84B7E1BE5CA32330"><enum>(C)</enum><text>in the first
sentence of subsection (b), by striking <quote>(as defined in section 206B of
the Gramm-Leach-Bliley Act)</quote>;</text>
</subparagraph><subparagraph id="HB01E9114493B4B40B95533D59C94960C"><enum>(D)</enum><text>in the third
sentence of subsection (b), by striking <quote>(as defined in section 206B of
the Gramm-Leach Bliley Act)</quote> and inserting <quote>or a security-based
swap</quote>; and</text>
</subparagraph><subparagraph id="H07EA4FE805874A968D1445EBA552D9B4"><enum>(E)</enum><text>in subsection (g),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</subparagraph></paragraph><paragraph id="HFE2B02081D294DD18F05F1B607BDCB1C"><enum>(6)</enum><text>in section 20 (15
U.S.C. 78t),</text>
<subparagraph id="H070D83E472B64C1CA851C8D01AA22626"><enum>(A)</enum><text>in subsection (d),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>; and</text>
</subparagraph><subparagraph id="HD0FA4E3FD0304713BAA134C8F956FDAB"><enum>(B)</enum><text>in subsection (f),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>; and</text>
</subparagraph></paragraph><paragraph id="H37F9C2B6AE0F4006821A27B68CE3E28D"><enum>(7)</enum><text>in section 21A (15
U.S.C. 78u–1)—</text>
<subparagraph id="HFE9D17BE3BFA4E748A8C7D8EDBC351BA"><enum>(A)</enum><text>in subsection
(a)(1), by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote>; and</text>
</subparagraph><subparagraph id="H3EEDDAF98A01404BB371F9BC13900506"><enum>(B)</enum><text>in subsection (g),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="HCB30EBEAC7224E1E8F717AB753514D86"><enum>763.</enum><header>Amendments to
the Securities Exchange Act of 1934</header>
<subsection id="H6FC106F6988B4651B9F747C87951781A"><enum>(a)</enum><header>Clearing for
security-based swaps</header><text>The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3B (as added by
section 717 of this Act):</text>
<quoted-block display-inline="no-display-inline" id="H4EF359645FAF43BE8602A50CD1CB6616" style="OLC">
<section id="H7DE8FC15288241CCB032752883EE88DD"><enum>3C.</enum><header>Clearing for
security-based swaps</header>
<subsection id="HB1E9927C21FB4C219CC6D23C51417337"><enum>(a)</enum><header>In
general</header>
<paragraph id="H1D3273A3C7A6429EB02842089169CB2E"><enum>(1)</enum><header>Standard for
clearing</header><text>It shall be unlawful for any person to engage in a
security-based swap unless that person submits such security-based swap for
clearing to a clearing agency that is registered under this Act or a clearing
agency that is exempt from registration under this Act if the security-based
swap is required to be cleared.</text>
</paragraph><paragraph id="H4616EE69E0CA4ABFA0F4C14EC625E2C4"><enum>(2)</enum><header>Open
access</header><text>The rules of a clearing agency described in paragraph (1)
shall—</text>
<subparagraph id="H60A0E1A76EE249BBB5EF6F1D36332167"><enum>(A)</enum><text>prescribe that all
security-based swaps submitted to the clearing agency with the same terms and
conditions are economically equivalent within the clearing agency and may be
offset with each other within the clearing agency; and</text>
</subparagraph><subparagraph id="HDD40F263DBF24EAAAE403925C1DEE02C"><enum>(B)</enum><text>provide for
non-discriminatory clearing of a security-based swap executed bilaterally or on
or through the rules of an unaffiliated national securities exchange or
security-based swap execution facility.</text>
</subparagraph></paragraph></subsection><subsection id="H2833BFB729F34CB78B835DEE0C57C602"><enum>(b)</enum><header>Commission
review</header>
<paragraph id="H6A23475A711640D7A2DDAD19B8B52982"><enum>(1)</enum><header>Commission-initiated
review</header>
<subparagraph id="HF978D92420D447AD873F0221D3384C07"><enum>(A)</enum><text>The Commission on
an ongoing basis shall review each security-based swap, or any group, category,
type, or class of security-based swaps to make a determination that such
security-based swap, or group, category, type, or class of security-based swaps
should be required to be cleared.</text>
</subparagraph><subparagraph id="HFC5FB0988A23432AA5FDB5CCB2FB1FCE"><enum>(B)</enum><text>The Commission
shall provide at least a 30-day public comment period regarding any
determination under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H9D35B0CC49B74F4F83B84B47548BC8C7"><enum>(2)</enum><header>Swap
submissions</header>
<subparagraph id="HB8DB68AC98C94817A0A4999D90AF973C"><enum>(A)</enum><text>A clearing agency
shall submit to the Commission each security-based swap, or any group,
category, type, or class of security-based swaps that it plans to accept for
clearing and provide notice to its members (in a manner to be determined by the
Commission) of such submission.</text>
</subparagraph><subparagraph id="H11C076F454514C3FA7A7C87748D09F54"><enum>(B)</enum><text>Any security-based
swap or group, category, type, or class of security-based swaps listed for
clearing by a clearing agency as of the date of enactment of this subsection
shall be considered submitted to the Commission.</text>
</subparagraph><subparagraph id="H4D05CB9874A042C4B9DC65042C5FBAD7"><enum>(C)</enum><text>The Commission
shall—</text>
<clause id="HB14DC9A5EDA947C7943EDC2CEBA02FA5"><enum>(i)</enum><text>make available to
the public any submission received under subparagraphs (A) and (B);</text>
</clause><clause id="H3875395AB9424C0CA2DED0997427170C"><enum>(ii)</enum><text>review each
submission made under subparagraphs (A) and (B), and determine whether the
security-based swap, or group, category, type, or class of security-based
swaps, described in the submission is required to be cleared; and</text>
</clause><clause id="HCA8D53C7554E43C1B9F36F57A58CC1EE"><enum>(iii)</enum><text>provide at least
a 30-day public comment period regarding its determination whether the clearing
requirement under subsection (a)(1) shall apply to the submission.</text>
</clause></subparagraph></paragraph><paragraph id="H3864F8BEB579429EA0EFCFF4E7CF172D"><enum>(3)</enum><header>Deadline</header><text>The
Commission shall make its determination under paragraph (2)(C) not later than
90 days after receiving a submission made under paragraphs (2)(A) and (2)(B),
unless the submitting clearing agency agrees to an extension for the time
limitation established under this paragraph.</text>
</paragraph><paragraph id="HA32ABDB577A149EEB29BB8AF98D46BA5"><enum>(4)</enum><header>Determination</header>
<subparagraph id="H26F1BDBFF47A436AB8E8EC1FD62CC91D"><enum>(A)</enum><text>In reviewing a
submission made under paragraph (2), the Commission shall review whether the
submission is consistent with section 17A.</text>
</subparagraph><subparagraph id="H594F4A62FB124CA48C8DCC14EF496FBF"><enum>(B)</enum><text>In reviewing a
security-based swap, group of security-based swaps or class of security-based
swaps pursuant to paragraph (1) or a submission made under paragraph (2), the
Commission shall take into account the following factors:</text>
<clause id="HF234F66B7701497DB2FDB91D3956FE3F"><enum>(i)</enum><text>The existence of
significant outstanding notional exposures, trading liquidity and adequate
pricing data.</text>
</clause><clause id="H477B654270A7406B9F99690A8D93B1D5"><enum>(ii)</enum><text>The availability
of rule framework, capacity, operational expertise and resources, and credit
support infrastructure to clear the contract on terms that are consistent with
the material terms and trading conventions on which the contract is then
traded.</text>
</clause><clause id="H8694080F84134D949A4C31A500191580"><enum>(iii)</enum><text>The effect on
the mitigation of systemic risk, taking into account the size of the market for
such contract and the resources of the clearing agency available to clear the
contract.</text>
</clause><clause id="H8E4F876B47994E41BE799CD5424CC118"><enum>(iv)</enum><text>The effect on
competition, including appropriate fees and charges applied to clearing.</text>
</clause><clause id="H5AEA8BB535C24D758397E1FAD9396659"><enum>(v)</enum><text>The existence of
reasonable legal certainty in the event of the insolvency of the relevant
clearing agency or 1 or more of its clearing members with regard to the
treatment of customer and security-based swap counterparty positions, funds,
and property.</text>
</clause></subparagraph><subparagraph id="H9CBAA7A77DCF4FDFA289650BE8B6B7D9"><enum>(C)</enum><text>In making a
determination under subsection (b)(1) or paragraph (2)(C) that the clearing
requirement shall apply, the Commission may require such terms and conditions
to the requirement as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="H6EC03BB3800C45C3AA288F6F9C37C5A0"><enum>(5)</enum><header>Rules</header><text>Not
later than 1 year after the date of the enactment of this section, the
Commission shall adopt rules for a clearing agency’s submission for review,
pursuant to this subsection, of a security-based swap, or a group, category,
type, or class of security-based swaps, that it seeks to accept for clearing.
Nothing in this paragraph limits the Commission from making a determination
under paragraph (2)(C) for security-based swaps described in paragraph
(2)(B).</text>
</paragraph></subsection><subsection id="H0488A608FB3E4DC0AA6224B1CA93A5EB"><enum>(c)</enum><header>Stay of clearing
requirement</header>
<paragraph id="HEA5790FA890643EF90D8A12795843E49"><enum>(1)</enum><header>In
general</header><text>After making a determination pursuant to subsection
(b)(2), the Commission, on application of a counterparty to a security-based
swap or on its own initiative, may stay the clearing requirement of subsection
(a)(1) until the Commission completes a review of the terms of the
security-based swap (or the group, category, type, or class of security-based
swaps) and the clearing arrangement.</text>
</paragraph><paragraph id="H516E7F685C484E7CA31F77E612363767"><enum>(2)</enum><header>Deadline</header><text>The
Commission shall complete a review undertaken pursuant to paragraph (1) not
later than 90 days after issuance of the stay, unless the clearing agency that
clears the security-based swap, or group, category, type, or class of
security-based swaps, agrees to an extension of the time limitation established
under this paragraph.</text>
</paragraph><paragraph id="HA0D2C1FA19984A34B7C2E39B4CCB3206"><enum>(3)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to paragraph (1), the Commission
may—</text>
<subparagraph id="HB49ECF76F06445F2A01A3D24574EC879"><enum>(A)</enum><text>determine,
unconditionally or subject to such terms and conditions as the Commission
determines to be appropriate, that the security-based swap, or group, category,
type, or class of security-based swaps, must be cleared pursuant to this
subsection if it finds that such clearing is consistent with subsection (b)(4);
or</text>
</subparagraph><subparagraph id="H530048A2F7E64F278DDFD952CAB31A93"><enum>(B)</enum><text>determine that the
clearing requirement of subsection (a)(1) shall not apply to the security-based
swap, or group, category, type, or class of security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H3FCE4CEE6BE54168B8B24FB87EA1D978"><enum>(4)</enum><header>Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of this section, the Commission shall adopt rules for reviewing,
pursuant to this subsection, a clearing agency’s clearing of a security-based
swap, or a group, category, type, or class of security-based swaps, that it has
accepted for clearing.</text>
</paragraph></subsection><subsection id="HACD56FF35AD44B419CA98DAC5DB10944"><enum>(d)</enum><header>Prevention of
evasion</header>
<paragraph id="H0D45CF05FBE6404E82A60F2BE3941909"><enum>(1)</enum><header>In
general</header><text>The Commission shall prescribe rules under this section
(and issue interpretations of rules prescribed under this section), as
determined by the Commission to be necessary to prevent evasions of the
mandatory clearing requirements under this Act.</text>
</paragraph><paragraph id="H496F3CAB36104CECA08BB0B4A4335BAB"><enum>(2)</enum><header>Duty of
Commission to investigate and take certain actions</header><text>To the extent
the Commission finds that a particular security-based swap or any group,
category, type, or class of security-based swaps that would otherwise be
subject to mandatory clearing but no clearing agency has listed the
security-based swap or the group, category, type, or class of security-based
swaps for clearing, the Commission shall—</text>
<subparagraph id="HF9FD7F3714654D5A99E5B8D539F51501"><enum>(A)</enum><text>investigate the
relevant facts and circumstances;</text>
</subparagraph><subparagraph id="H8772581AF55349859675AC181795E76E"><enum>(B)</enum><text>within 30 days
issue a public report containing the results of the investigation; and</text>
</subparagraph><subparagraph id="HEBEB9B382C124A408D3D42E862E58173"><enum>(C)</enum><text>take such actions
as the Commission determines to be necessary and in the public interest, which
may include requiring the retaining of adequate margin or capital by parties to
the security-based swap or the group, category, type, or class of
security-based swaps.</text>
</subparagraph></paragraph><paragraph id="HA3DDE24E69494CAFA8EC748199272FC5"><enum>(3)</enum><header>Effect on
authority</header><text>Nothing in this subsection—</text>
<subparagraph id="H940BF81EDB314D488F1842FC95885F3B"><enum>(A)</enum><text>authorizes the
Commission to adopt rules requiring a clearing agency to list for clearing a
security-based swap or any group, category, type, or class of security-based
swaps if the clearing of the security-based swap or the group, category, type,
or class of security-based swaps would threaten the financial integrity of the
clearing agency; and</text>
</subparagraph><subparagraph id="HF23713D429264FE48C812E5DA90396CA"><enum>(B)</enum><text>affects the
authority of the Commission to enforce the open access provisions of subsection
(a)(2) with respect to a security-based swap or the group, category, type, or
class of security-based swaps that is listed for clearing by a clearing
agency.</text>
</subparagraph></paragraph></subsection><subsection id="H23C92854DE1942C8A26F41327929357F"><enum>(e)</enum><header>Reporting
transition rules</header><text>Rules adopted by the Commission under this
section shall provide for the reporting of data, as follows:</text>
<paragraph id="HF0AEC1732F214AD7A22FD45836A378E7"><enum>(1)</enum><text>Security-based
swaps entered into before the date of the enactment of this section shall be
reported to a registered security-based swap data repository or the Commission
no later than 180 days after the effective date of this section.</text>
</paragraph><paragraph id="H2604D0B7C5694D71A1672AB5C0DCC9D1"><enum>(2)</enum><text>Security-based
swaps entered into on or after such date of enactment shall be reported to a
registered security-based swap data repository or the Commission no later than
the later of—</text>
<subparagraph id="HC36A94A1BB9C46BF939B2F34896CE851"><enum>(A)</enum><text>90 days after such
effective date; or</text>
</subparagraph><subparagraph id="H6C76665246464CC58CC24F40EE5E6BCD"><enum>(B)</enum><text>such other time
after entering into the security-based swap as the Commission may prescribe by
rule or regulation.</text>
</subparagraph></paragraph></subsection><subsection id="H75B520743A924BF1A15393B2DCF491F3"><enum>(f)</enum><header>Clearing
transition rules</header>
<paragraph id="H960B4512EEF24FCF8AD2FA51CC111711"><enum>(1)</enum><text>Security-based
swaps entered into before the date of the enactment of this section are exempt
from the clearing requirements of this subsection if reported pursuant to
subsection (e)(1).</text>
</paragraph><paragraph id="H09E2E2BFCA1F446792B969A129AD2E55"><enum>(2)</enum><text>Security-based
swaps entered into before application of the clearing requirement pursuant to
this section are exempt from the clearing requirements of this section if
reported pursuant to subsection (e)(2).</text>
</paragraph></subsection><subsection id="HA119745E6577456D8D05D2779655D611"><enum>(g)</enum><header>Exceptions</header>
<paragraph id="H071C8BBF51764BC4A921CD8EA9C81347"><enum>(1)</enum><header>In
general</header><text>The requirements of subsection (a)(1) shall not apply to
a security-based swap if 1 of the counterparties to the security-based
swap—</text>
<subparagraph id="HC13F4615CAA344C1AF639F4D41994C8D"><enum>(A)</enum><text>is not a financial
entity;</text>
</subparagraph><subparagraph id="H7F20888FC7FD42C8A5D376E27921DA8E"><enum>(B)</enum><text>is using
security-based swaps to hedge or mitigate commercial risk; and</text>
</subparagraph><subparagraph id="HAD46D2A76E2E4C0BA0BC012BA8158C69"><enum>(C)</enum><text>notifies the
Commission, in a manner set forth by the Commission, how it generally meets its
financial obligations associated with entering into non-cleared security-based
swaps.</text>
</subparagraph></paragraph><paragraph id="H09D517DA31264954997C9DD2CD6B7804"><enum>(2)</enum><header>Option to
clear</header><text>The application of the clearing exception in paragraph (1)
is solely at the discretion of the counterparty to the security-based swap that
meets the conditions of subparagraphs (A) through (C) of paragraph (1).</text>
</paragraph><paragraph id="H491F1B9B5FBC475A9CA87645CCA4D550"><enum>(3)</enum><header>Financial entity
definition</header>
<subparagraph id="H9D861243A28B47839A4A50F83896F2D3"><enum>(A)</enum><header>In
general</header><text>For the purposes of this subsection, the term
<quote>financial entity</quote> means—</text>
<clause id="H76DD540F54CE47A09F8E3BBDB79E09E9"><enum>(i)</enum><text>a
swap dealer;</text>
</clause><clause id="HBE329DEE3D6C4DEDB70FFF322D44200A"><enum>(ii)</enum><text>a
security-based swap dealer;</text>
</clause><clause id="H8351ECD1984847398BC9FED730FA860B"><enum>(iii)</enum><text>a major swap
participant;</text>
</clause><clause id="H7FEC6E31920F4DE7A142658167097B9F"><enum>(iv)</enum><text>a
major security-based swap participant;</text>
</clause><clause id="H1C8C679F1B5347E591A1B02C5E67B5E9"><enum>(v)</enum><text>a
commodity pool as defined in section 1a(10) of the Commodity Exchange
Act;</text>
</clause><clause id="H57EE2CF913884B2B806DCA4D50A4D8E1"><enum>(vi)</enum><text>a
private fund as defined in section 202(a) of the Investment Advisers Act of
1940 (15 U.S.C. 80–b–2(a));</text>
</clause><clause id="HB0E1128D0E424659B545C6C83BF41841"><enum>(vii)</enum><text>an employee
benefit plan as defined in paragraphs (3) and (32) of section 3 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002);</text>
</clause><clause id="H63A8397C052D40EBA630E2184BFA552E"><enum>(viii)</enum><text>a person
predominantly engaged in activities that are in the business of banking or
financial in nature, as defined in section 4(k) of the Bank Holding Company Act
of 1956.</text>
</clause></subparagraph><subparagraph id="H248CD68BD06A4712A08DB778883256B2"><enum>(B)</enum><header>Exclusion</header><text>The
Commission shall consider whether to exempt small banks, savings associations,
farm credit system institutions, and credit unions, including—</text>
<clause id="HCA83F06149244E6FB7ABDC49FC0F6FE1"><enum>(i)</enum><text>depository
institutions with total assets of $10,000,000,000 or less;</text>
</clause><clause id="HE0B2F6C4621F4690A6A2F818B8515E00"><enum>(ii)</enum><text>farm credit
system institutions with total assets of $10,000,000,000 or less; or</text>
</clause><clause id="H736C0DC17441426DB830A26737A3BFB0"><enum>(iii)</enum><text>credit unions
with total assets of $10,000,000,000 or less.</text>
</clause></subparagraph></paragraph><paragraph id="H6A341180A78D4F91AB865B8D3C911A24"><enum>(4)</enum><header>Treatment of
affiliates</header>
<subparagraph id="H17B39BC736064CC9820954E8EEDABBA3"><enum>(A)</enum><header>In
general</header><text>An affiliate of a person that qualifies for an exception
under this subsection (including affiliate entities predominantly engaged in
providing financing for the purchase of the merchandise or manufactured goods
of the person) may qualify for the exception only if the affiliate, acting on
behalf of the person and as an agent, uses the security-based swap to hedge or
mitigate the commercial risk of the person or other affiliate of the person
that is not a financial entity.</text>
</subparagraph><subparagraph id="H4DC09984C4AD4B1B9727283E1B5E1E79"><enum>(B)</enum><header>Prohibition
relating to certain affiliates</header><text>The exception in subparagraph (A)
shall not apply if the affiliate is—</text>
<clause id="H1EC2AFB5C309441A82E6B35A094B397D"><enum>(i)</enum><text>a
swap dealer;</text>
</clause><clause id="H004ACE989C8840CFB2973EEEE6A40D1C"><enum>(ii)</enum><text>a
security-based swap dealer;</text>
</clause><clause id="HD23FD3C819D14281B76B750A5187AFE6"><enum>(iii)</enum><text>a major swap
participant;</text>
</clause><clause id="HD001F276C59A461EB2EACC4062334BFA"><enum>(iv)</enum><text>a
major security-based swap participant;</text>
</clause><clause id="HBAEF2373F9A24E56B1EDCDFEFF1C53DB"><enum>(v)</enum><text>an
issuer that would be an investment company, as defined in section 3 of the
Investment Company Act of 1940 (15 U.S.C. 80a–3), but for paragraph (1) or (7)
of subsection (c) of that Act (15 U.S.C. 80a–3(c));</text>
</clause><clause id="H8F5F3653FCF14A15A8452619B715623B"><enum>(vi)</enum><text>a
commodity pool; or</text>
</clause><clause id="H0191BBE487F34316A71949909420DBFF"><enum>(vii)</enum><text>a bank holding
company with over $50,000,000,000 in consolidated assets.</text>
</clause></subparagraph><subparagraph id="HF7F59276D0234C5588063FEAD7428429"><enum>(C)</enum><header>Transition rule
for affiliates</header><text>An affiliate, subsidiary, or a wholly owned entity
of a person that qualifies for an exception under subparagraph (A) and is
predominantly engaged in providing financing for the purchase or lease of
merchandise or manufactured goods of the person shall be exempt from the margin
requirement described in section 15F(e) and the clearing requirement described
in subsection (a) with regard to security-based swaps entered into to mitigate
the risk of the financing activities for not less than a 2-year period
beginning on the date of enactment of this subparagraph.</text>
</subparagraph></paragraph><paragraph id="H27DD5D423636488D8C99823560878669"><enum>(5)</enum><header>Election of
counterparty</header>
<subparagraph id="H8A596404B8314BB8A49076684B3829E7"><enum>(A)</enum><header>Security-based
swaps required to be cleared</header><text>With respect to any security-based
swap that is subject to the mandatory clearing requirement under subsection (a)
and entered into by a security-based swap dealer or a major security-based swap
participant with a counterparty that is not a swap dealer, major swap
participant, security-based swap dealer, or major security-based swap
participant, the counterparty shall have the sole right to select the clearing
agency at which the security-based swap will be cleared.</text>
</subparagraph><subparagraph id="H96D6982768D64FCAB5CBE2AB54061B0E"><enum>(B)</enum><header>Security-based
swaps not required to be cleared</header><text>With respect to any
security-based swap that is not subject to the mandatory clearing requirement
under subsection (a) and entered into by a security-based swap dealer or a
major security-based swap participant with a counterparty that is not a swap
dealer, major swap participant, security-based swap dealer, or major
security-based swap participant, the counterparty—</text>
<clause id="H150AC49CBC6244A38FA7C1A4120CE694"><enum>(i)</enum><text>may elect to
require clearing of the security-based swap; and</text>
</clause><clause id="H1F39AFF010EA4B3B99D6530ACAB69792"><enum>(ii)</enum><text>shall have the
sole right to select the clearing agency at which the security-based swap will
be cleared.</text>
</clause></subparagraph></paragraph><paragraph id="HE927FDF658A74DBCAF780BC54373B5C8"><enum>(6)</enum><header>Abuse of
exception</header><text>The Commission may prescribe such rules or issue
interpretations of the rules as the Commission determines to be necessary to
prevent abuse of the exceptions described in this subsection. The Commission
may also request information from those persons claiming the clearing exception
as necessary to prevent abuse of the exceptions described in this
subsection.</text>
</paragraph></subsection><subsection id="HD5CBE2ECB01C4150A43F45CFE3AB4C4C"><enum>(h)</enum><header>Trade
execution</header>
<paragraph id="H75443B81F7BC4D6EBE97DD05C1AE6C66"><enum>(1)</enum><header>In
general</header><text>With respect to transactions involving security-based
swaps subject to the clearing requirement of subsection (a)(1), counterparties
shall—</text>
<subparagraph id="H12D7E3B66DF74181A313C75A5E364296"><enum>(A)</enum><text>execute the
transaction on an exchange; or</text>
</subparagraph><subparagraph id="H4DB3B5F443194B1F8AD402850603CB64"><enum>(B)</enum><text>execute the
transaction on a security-based swap execution facility registered under
section 3D or a security-based swap execution facility that is exempt from
registration under section 3D(e).</text>
</subparagraph></paragraph><paragraph id="HC2EDE8BF6D064A2094D60BD7C83EDB5A"><enum>(2)</enum><header>Exception</header><text>The
requirements of subparagraphs (A) and (B) of paragraph (1) shall not apply if
no exchange or security-based swap execution facility makes the security-based
swap available to trade or for security-based swap transactions subject to the
clearing exception under subsection (g).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H854725C6B42A4EB0BC810822585230EB"><enum>(i)</enum><header display-inline="yes-display-inline">Board
approval</header><text display-inline="yes-display-inline">Exemptions from the
requirements of this section to clear a security-based swap or execute a
security-based swap through a national securities exchange or security-based
swap execution facility shall be available to a counterparty that is an issuer
of securities that are registered under section 12 or that is required to file
reports pursuant to section 15(d), only if an appropriate committee of the
issuer's board or governing body has reviewed and approved the issuer's
decision to enter into security-based swaps that are subject to such
exemptions.</text>
</subsection><subsection id="H15BA061272EA49139A0C1079D87F8F74"><enum>(j)</enum><header>Designation of
chief compliance officer</header>
<paragraph id="H23C3FFA066544AFDBA8E0EDD5459EA86"><enum>(1)</enum><header>In
general</header><text>Each registered clearing agency shall designate an
individual to serve as a chief compliance officer.</text>
</paragraph><paragraph id="H914BC08B74EE4DB7B932CEC3510768F8"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="H53FC8F34D8894A808D02B674EE00723F"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the clearing agency;</text>
</subparagraph><subparagraph id="H3DE8944BCCBD4CE9B2134C254585F130"><enum>(B)</enum><text>in consultation
with its board, a body performing a function similar thereto, or the senior
officer of the registered clearing agency, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="H4111A502364F491B88D8C9AED142AA82"><enum>(C)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="H6DA19F26E19F4996B4D480E37F330939"><enum>(D)</enum><text>ensure compliance
with this title (including regulations issued under this title) relating to
agreements, contracts, or transactions, including each rule prescribed by the
Commission under this section;</text>
</subparagraph><subparagraph id="HF5D14EEDA7A04A019A2427BC7E553B4A"><enum>(E)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the
compliance officer through any—</text>
<clause id="H906285A732BD48079C042E5FE92FC20F"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="H4EEAD99EFBFA4669839BDD0581BA62E6"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="H6E8AB2EBE5554D60B8F600C6A4AE0D5B"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="H242AE8C7D1CE47DB86CECE7596790E49"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="H3F3D77926EDF45ACBE701E768C8C5AFA"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="H4C5955125AA54D19BCB2B556BE4762A6"><enum>(F)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="H49A3C96A27BC4957995E82BB5FED9802"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="HD352E49D7B724DC58D8020B0400F02AF"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="HBDBADEE6720C46CDACA96F845A302F7E"><enum>(i)</enum><text>the compliance of
the registered clearing agency or security-based swap execution facility of the
compliance officer with respect to this title (including regulations under this
title); and</text>
</clause><clause id="H0B3C93DDD1BB455DB4F47E9500B99726"><enum>(ii)</enum><text>each policy and
procedure of the registered clearing agency of the compliance officer
(including the code of ethics and conflict of interest policies of the
registered clearing agency).</text>
</clause></subparagraph><subparagraph id="HB9F80D495E2A4628805823D055649655"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="H4188E20F4B564DF09AB03B3B2D6B2048"><enum>(i)</enum><text>accompany each
appropriate financial report of the registered clearing agency that is required
to be furnished to the Commission pursuant to this section; and</text>
</clause><clause id="H54E0C10890854357A7FCDEF2FCE16468"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H841599E8060E42BE937D0CBA0ED11143"><enum>(b)</enum><header>Clearing agency
requirements</header><text>Section 17A of the Securities Exchange Act of 1934
(15 U.S.C. 78q–1) is amended by adding at the end the following:</text>
<quoted-block id="H1EFE0ED265BE4B21B687835E62109348" style="OLC">
<subsection commented="no" id="HF68083209C9C4448BADF89CD73BAC9FB"><enum>(g)</enum><header>Registration
requirement</header><text>It shall be unlawful for a clearing agency, unless
registered with the Commission, directly or indirectly to make use of the mails
or any means or instrumentality of interstate commerce to perform the functions
of a clearing agency with respect to a security-based swap.</text>
</subsection><subsection commented="no" id="HBF900FB6EE424C9794DEE16DFB8C76F7"><enum>(h)</enum><header>Voluntary
registration</header><text>A person that clears agreements, contracts, or
transactions that are not required to be cleared under this title may register
with the Commission as a clearing agency.</text>
</subsection><subsection display-inline="no-display-inline" id="H9A5C710F0A2C4E0385F150DEF1A3982C"><enum>(i)</enum><header>Standards for
clearing agencies clearing security-based swap transactions</header><text display-inline="yes-display-inline">To be registered and to maintain
registration as a clearing agency that clears security-based swap transactions,
a clearing agency shall comply with such standards as the Commission may
establish by rule. In establishing any such standards, and in the exercise of
its oversight of such a clearing agency pursuant to this title, the Commission
may conform such standards or oversight to reflect evolving United States and
international standards. Except where the Commission determines otherwise by
rule or regulation, a clearing agency shall have reasonable discretion in
establishing the manner in which it complies with any such standards.</text>
</subsection><subsection commented="no" id="H01DDF9B5E85D4CA9A294D0FDDB032ADE"><enum>(j)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered as clearing agencies for security-based swaps under
this title.</text>
</subsection><subsection id="H7A19A6B287AB4ABBAEDC54A4D5215AAF"><enum>(k)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a clearing agency from
registration under this section for the clearing of security-based swaps if the
Commission determines that the clearing agency is subject to comparable,
comprehensive supervision and regulation by the Commodity Futures Trading
Commission or the appropriate government authorities in the home country of the
agency. Such conditions may include, but are not limited to, requiring that the
clearing agency be available for inspection by the Commission and make
available all information requested by the Commission.</text>
</subsection><subsection id="H21CE731A64BA4CEF8D30EE50F467BBB2"><enum>(l)</enum><header>Existing
depository institutions and derivative clearing organizations</header>
<paragraph id="HBB45300CB73F4004936A324B01269D79"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A depository
institution or derivative clearing organization registered with the Commodity
Futures Trading Commission under the Commodity Exchange Act that is required to
be registered as a clearing agency under this section is deemed to be
registered under this section solely for the purpose of clearing security-based
swaps to the extent that, before the date of enactment of this
subsection—</text>
<subparagraph id="HE5F4E272085C4FDAA53671F0B3563EB8"><enum>(A)</enum><text>the depository
institution cleared swaps as a multilateral clearing organization; or</text>
</subparagraph><subparagraph id="H81C4F609BBB34B98803A5036062E56A5"><enum>(B)</enum><text>the derivative
clearing organization cleared swaps pursuant to an exemption from registration
as a clearing agency.</text>
</subparagraph></paragraph><paragraph id="HFD5FC5AC3656425089877BD407338E67"><enum>(2)</enum><header>Conversion of
depository institutions</header><text>A depository institution to which this
subsection applies may, by the vote of the shareholders owning not less than 51
percent of the voting interests of the depository institution, be converted
into a State corporation, partnership, limited liability company, or similar
legal form pursuant to a plan of conversion, if the conversion is not in
contravention of applicable State law.</text>
</paragraph><paragraph id="H5F0A18DBC80841BE8402C4B9BA55E3CB"><enum>(3)</enum><header>Sharing of
information</header><text>The Commodity Futures Trading Commission shall make
available to the Commission, upon request, all information determined to be
relevant by the Commodity Futures Trading Commission regarding a derivatives
clearing organization deemed to be registered with the Commission under
paragraph (1).</text>
</paragraph></subsection><subsection commented="no" id="H2B8CC822C2324DC6B4C6C082A144462E"><enum>(m)</enum><header>Modification of
core principles</header><text>The Commission may conform the core principles
established in this section to reflect evolving United States and international
standards.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE1C1D7906C7F4346AF3227168AA62DDE"><enum>(c)</enum><header>Security-based
swap execution facilities</header><text>The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3C (as added by
subsection (a) of this section) the following:</text>
<quoted-block display-inline="no-display-inline" id="H8168BE51661E413E932D2C925D85CE25" style="OLC">
<section id="HFB7EB74243B744EF884E1684927DDE08"><enum>3D.</enum><header>Security-based
swap execution facilities</header>
<subsection id="HDDC828527B3D4905B565E4D722BC1951"><enum>(a)</enum><header>Registration</header>
<paragraph id="HC677524039FB4481A7B9C4C86209ED17"><enum>(1)</enum><header>In
general</header><text>No person may operate a facility for the trading or
processing of security-based swaps, unless the facility is registered as a
security-based swap execution facility or as a national securities exchange
under this section.</text>
</paragraph><paragraph id="H506D5538FEC74F968F06404B8F5BA85D"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is registered as a security-based
swap execution facility under this section shall register with the Commission
regardless of whether the person also is registered with the Commodity Futures
Trading Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="HF4A31EF6515C497A866E0042E92D9AFD"><enum>(b)</enum><header>Trading and
trade processing</header><text>A security-based swap execution facility that is
registered under subsection (a) may—</text>
<paragraph id="H99FCC8ACDE5549E687C09DFD92E4D7EE"><enum>(1)</enum><text>make available for
trading any security-based swap; and</text>
</paragraph><paragraph id="HEB7C29A193C24D0FAD80AAC26529F7CF"><enum>(2)</enum><text>facilitate trade
processing of any security-based swap.</text>
</paragraph></subsection><subsection commented="no" id="H26A387F8AB2D4F02B2F8750A1AB46AEF"><enum>(c)</enum><header>Identification
of facility used To trade security-based swaps by national securities
exchanges</header><text>A national securities exchange shall, to the extent
that the exchange also operates a security-based swap execution facility and
uses the same electronic trade execution system for listing and executing
trades of security-based swaps on or through the exchange and the facility,
identify whether electronic trading of such security-based swaps is taking
place on or through the national securities exchange or the security-based swap
execution facility.</text>
</subsection><subsection id="HFCFE66EADB4545EDB9DD8383A7AF8D62"><enum>(d)</enum><header>Core principles
for security-based swap execution facilities</header>
<paragraph id="H7DB462B998444BC699CB440C0FEB75E4"><enum>(1)</enum><header>Compliance with
core principles</header>
<subparagraph id="HCBB84DFF3D354DE3AC3C2773687ACBA7"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a
security-based swap execution facility, the security-based swap execution
facility shall comply with—</text>
<clause id="H4DD607FC9893474D834DE639B218FC73"><enum>(i)</enum><text>the core
principles described in this subsection; and</text>
</clause><clause id="H14A6FBB75BF743AB98682903EA34DE58"><enum>(ii)</enum><text>any requirement
that the Commission may impose by rule or regulation.</text>
</clause></subparagraph><subparagraph id="H9CACB9CCBCE345C6BABD5D7F5CC0700E"><enum>(B)</enum><header>Reasonable
discretion of security-based swap execution facility</header><text>Unless
otherwise determined by the Commission, by rule or regulation, a security-based
swap execution facility described in subparagraph (A) shall have reasonable
discretion in establishing the manner in which it complies with the core
principles described in this subsection.</text>
</subparagraph></paragraph><paragraph id="H4DD3FE67AA4C4503A1D06BD814B91FED"><enum>(2)</enum><header>Compliance with
rules</header><text>A security-based swap execution facility shall—</text>
<subparagraph id="HAD0B55BD257043DBB70B1EDFE91D4739"><enum>(A)</enum><text>establish and
enforce compliance with any rule established by such security-based swap
execution facility, including—</text>
<clause id="HB3865F6352494376AB4E7521BE161EFE"><enum>(i)</enum><text>the terms and
conditions of the security-based swaps traded or processed on or through the
facility; and</text>
</clause><clause id="H1C6DE4568F364C4880F44A7037F1DC01"><enum>(ii)</enum><text>any limitation on
access to the facility;</text>
</clause></subparagraph><subparagraph id="H14AAC4F665314F688F16E9F373B82D28"><enum>(B)</enum><text>establish and
enforce trading, trade processing, and participation rules that will deter
abuses and have the capacity to detect, investigate, and enforce those rules,
including means—</text>
<clause id="H4C133F4DE20247188155F513941785FE"><enum>(i)</enum><text>to
provide market participants with impartial access to the market; and</text>
</clause><clause id="H757261F14E0E4669BD38D842B54A491E"><enum>(ii)</enum><text>to capture
information that may be used in establishing whether rule violations have
occurred; and</text>
</clause></subparagraph><subparagraph id="HD7555BB3052B4939A39EF2E35EA97990"><enum>(C)</enum><text>establish rules
governing the operation of the facility, including rules specifying trading
procedures to be used in entering and executing orders traded or posted on the
facility, including block trades.</text>
</subparagraph></paragraph><paragraph id="H4395FF8ED6794FCBA929B54199D4E569"><enum>(3)</enum><header>Security-based
swaps not readily susceptible to manipulation</header><text>The security-based
swap execution facility shall permit trading only in security-based swaps that
are not readily susceptible to manipulation.</text>
</paragraph><paragraph id="H1D0E4883FAC446689F17DCF3D23277DE"><enum>(4)</enum><header>Monitoring of
trading and trade processing</header><text>The security-based swap execution
facility shall—</text>
<subparagraph id="H2077DEFBF4234951907F0D9CE99E73D0"><enum>(A)</enum><text>establish and
enforce rules or terms and conditions defining, or specifications
detailing—</text>
<clause id="HE9822F7FF71E4148A5C1668A6D92D17D"><enum>(i)</enum><text>trading procedures
to be used in entering and executing orders traded on or through the facilities
of the security-based swap execution facility; and</text>
</clause><clause id="H5121E9A3A7EB4A3A9429EDD2A66DACFC"><enum>(ii)</enum><text>procedures for
trade processing of security-based swaps on or through the facilities of the
security-based swap execution facility; and</text>
</clause></subparagraph><subparagraph id="H57B3B666C94540DE8BF0486879090A6A"><enum>(B)</enum><text>monitor trading in
security-based swaps to prevent manipulation, price distortion, and disruptions
of the delivery or cash settlement process through surveillance, compliance,
and disciplinary practices and procedures, including methods for conducting
real-time monitoring of trading and comprehensive and accurate trade
reconstructions.</text>
</subparagraph></paragraph><paragraph id="H9E83EA03CE6F476D9A9D1DBDC8B2180D"><enum>(5)</enum><header>Ability to
obtain information</header><text>The security-based swap execution facility
shall—</text>
<subparagraph id="H4BDCD80CE821422C8D62AC0229F8A273"><enum>(A)</enum><text>establish and
enforce rules that will allow the facility to obtain any necessary information
to perform any of the functions described in this subsection;</text>
</subparagraph><subparagraph id="HC749B5BC887147809AE64B5D568FDF90"><enum>(B)</enum><text>provide the
information to the Commission on request; and</text>
</subparagraph><subparagraph id="H97F23F412F3F4CE89A68CD39C83A1EE5"><enum>(C)</enum><text>have the capacity
to carry out such international information-sharing agreements as the
Commission may require.</text>
</subparagraph></paragraph><paragraph id="HFB252EB5481348C9BF774FA33D652EAF"><enum>(6)</enum><header>Financial
integrity of transactions</header><text>The security-based swap execution
facility shall establish and enforce rules and procedures for ensuring the
financial integrity of security-based swaps entered on or through the
facilities of the security-based swap execution facility, including the
clearance and settlement of security-based swaps pursuant to section
3C(a)(1).</text>
</paragraph><paragraph id="HD363A414E2254FC6AFDD345EBFDCA810"><enum>(7)</enum><header>Emergency
authority</header><text>The security-based swap execution facility shall adopt
rules to provide for the exercise of emergency authority, in consultation or
cooperation with the Commission, as is necessary and appropriate, including the
authority to liquidate or transfer open positions in any security-based swap or
to suspend or curtail trading in a security-based swap.</text>
</paragraph><paragraph id="HFC2E9AAFB169404485E0668D8D0D76D8"><enum>(8)</enum><header>Timely
publication of trading information</header>
<subparagraph id="HD200418D7AD54CA9B916F71422F13573"><enum>(A)</enum><header>In
general</header><text>The security-based swap execution facility shall make
public timely information on price, trading volume, and other trading data on
security-based swaps to the extent prescribed by the Commission.</text>
</subparagraph><subparagraph id="H311CEE374B674232AFB43DA3DE6CCB3F"><enum>(B)</enum><header>Capacity of
security-based swap execution facility</header><text>The security-based swap
execution facility shall be required to have the capacity to electronically
capture and transmit and disseminate trade information with respect to
transactions executed on or through the facility.</text>
</subparagraph></paragraph><paragraph id="H8EC8061A3B1A4575B61A5D51EAD9BEB0"><enum>(9)</enum><header>Recordkeeping
and reporting</header>
<subparagraph id="H7C1C61891F58447EBB9D32424DFF848B"><enum>(A)</enum><header>In
general</header><text>A security-based swap execution facility shall—</text>
<clause id="HFB7222A0C6E84CBE987E043613BE4DBD"><enum>(i)</enum><text>maintain records
of all activities relating to the business of the facility, including a
complete audit trail, in a form and manner acceptable to the Commission for a
period of 5 years; and</text>
</clause><clause id="HC366221409D8476286259DCCD7533328"><enum>(ii)</enum><text>report to the
Commission, in a form and manner acceptable to the Commission, such information
as the Commission determines to be necessary or appropriate for the Commission
to perform the duties of the Commission under this title.</text>
</clause></subparagraph><subparagraph id="H8C1453C087FC4A4084D2AB994B8957FA"><enum>(B)</enum><header>Requirements</header><text>The
Commission shall adopt data collection and reporting requirements for
security-based swap execution facilities that are comparable to corresponding
requirements for clearing agencies and security-based swap data
repositories.</text>
</subparagraph></paragraph><paragraph id="H010E20C32F1D4D95A5EC6704504441BA"><enum>(10)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the security-based swap execution facility shall
not—</text>
<subparagraph id="H16C41BD5E2274F6EB6F9056A0D11CA23"><enum>(A)</enum><text>adopt any rules or
taking any actions that result in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="HC0B156588FE04F6796DB1152BFE2E6B4"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="H216B787B7E554F4F8AE249A6FE9E911D"><enum>(11)</enum><header>Conflicts of
interest</header><text>The security-based swap execution facility shall—</text>
<subparagraph id="HB2DD6262B3AE482D9AC77C8A4212DF43"><enum>(A)</enum><text>establish and
enforce rules to minimize conflicts of interest in its decision-making process;
and</text>
</subparagraph><subparagraph id="H6D586C97EF7A4F4AAB52ED7D10D82CAC"><enum>(B)</enum><text>establish a
process for resolving the conflicts of interest.</text>
</subparagraph></paragraph><paragraph id="HBCB3B544056F4299B536CFC45004F295"><enum>(12)</enum><header>Financial
resources</header>
<subparagraph id="H9BE567BB7E344C15B6F47378C10C091E"><enum>(A)</enum><header>In
general</header><text>The security-based swap execution facility shall have
adequate financial, operational, and managerial resources to discharge each
responsibility of the security-based swap execution facility, as determined by
the Commission.</text>
</subparagraph><subparagraph id="H885F9EE7D2EB4A7197F46890308F9F13"><enum>(B)</enum><header>Determination of
resource adequacy</header><text>The financial resources of a security-based
swap execution facility shall be considered to be adequate if the value of the
financial resources—</text>
<clause id="HE090ED95C4B34773A1D0E77CF734D9B1"><enum>(i)</enum><text>enables the
organization to meet its financial obligations to its members and participants
notwithstanding a default by the member or participant creating the largest
financial exposure for that organization in extreme but plausible market
conditions; and</text>
</clause><clause id="H3D7632B4AC154FFEBE2DE316DC517B0E"><enum>(ii)</enum><text>exceeds the total
amount that would enable the security-based swap execution facility to cover
the operating costs of the security-based swap execution facility for a 1-year
period, as calculated on a rolling basis.</text>
</clause></subparagraph></paragraph><paragraph id="H5050B2C5EC964681A793E8DCF3E45406"><enum>(13)</enum><header>System
safeguards</header><text>The security-based swap execution facility
shall—</text>
<subparagraph id="H5E83D8E595AD4E57AFD30BE7BC683A9E"><enum>(A)</enum><text>establish and
maintain a program of risk analysis and oversight to identify and minimize
sources of operational risk, through the development of appropriate controls
and procedures, and automated systems, that—</text>
<clause id="H7DD8B1D655B54BE5A0A5D28CCD6D302D"><enum>(i)</enum><text>are reliable and
secure; and</text>
</clause><clause id="H41118BFA82A9438D8A247C8A1C6965AE"><enum>(ii)</enum><text>have adequate
scalable capacity;</text>
</clause></subparagraph><subparagraph id="H0BD7BD0A487F462AA468A119C5A23319"><enum>(B)</enum><text>establish and
maintain emergency procedures, backup facilities, and a plan for disaster
recovery that allow for—</text>
<clause id="HD959E3C5725A473584964187F89FEFCC"><enum>(i)</enum><text>the timely
recovery and resumption of operations; and</text>
</clause><clause id="H9E3B4E6894CB40938EF9D99A9811504C"><enum>(ii)</enum><text>the fulfillment
of the responsibilities and obligations of the security-based swap execution
facility; and</text>
</clause></subparagraph><subparagraph id="HF45CA8409CB3430098088DC2FE5030F9"><enum>(C)</enum><text>periodically
conduct tests to verify that the backup resources of the security-based swap
execution facility are sufficient to ensure continued—</text>
<clause id="H08634BE3335D46F4974CACD0AD0859EA"><enum>(i)</enum><text>order processing
and trade matching;</text>
</clause><clause id="HD2EE9CB7C9B8467A80B045EC195B82BA"><enum>(ii)</enum><text>price
reporting;</text>
</clause><clause id="HB49DBBB388374686A9E70F6BE201F80E"><enum>(iii)</enum><text>market
surveillance; and</text>
</clause><clause id="H6812041CE0124DDAAB7496A01941EF22"><enum>(iv)</enum><text>maintenance of a
comprehensive and accurate audit trail.</text>
</clause></subparagraph></paragraph><paragraph id="H7F304C3CB3734816BDA42BE6DEB171B5"><enum>(14)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="H5ED4A8AE13DC4C65BE0164645BFB45DE"><enum>(A)</enum><header>In
general</header><text>Each security-based swap execution facility shall
designate an individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="H7D76EF97D4C242F89B9D94EA869B2D80"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="H9992E8DDADF2445FA758CD9133D96A98"><enum>(i)</enum><text>report directly to
the board or to the senior officer of the facility;</text>
</clause><clause id="H19357A66658D495BA71575F31D94A2C6"><enum>(ii)</enum><text>review compliance
with the core principles in this subsection;</text>
</clause><clause id="H625939B716154014AC8601E4D4FFD385"><enum>(iii)</enum><text>in consultation
with the board of the facility, a body performing a function similar to that of
a board, or the senior officer of the facility, resolve any conflicts of
interest that may arise;</text>
</clause><clause id="H5AED60E8A30C4C3AAC9E07534A18683C"><enum>(iv)</enum><text>be responsible
for establishing and administering the policies and procedures required to be
established pursuant to this section;</text>
</clause><clause id="H9C094FBE7C6546DCAB41132F92881617"><enum>(v)</enum><text>ensure compliance
with this title and the rules and regulations issued under this title,
including rules prescribed by the Commission pursuant to this section;</text>
</clause><clause id="H3502407FA88246AC8CF2DA13B52F3A52"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues found during—</text>
<subclause id="H96BD726FF65546A3997DCEBD670503A7"><enum>(I)</enum><text>compliance office
reviews;</text>
</subclause><subclause id="HF352E41D7B514C9983F3B886F4982BB7"><enum>(II)</enum><text>look
backs;</text>
</subclause><subclause id="HD229E212D4524C499C9CF662E93C533B"><enum>(III)</enum><text>internal or
external audit findings;</text>
</subclause><subclause id="H2EA764783FA24564936581A4A7BCE958"><enum>(IV)</enum><text>self-reported
errors; or</text>
</subclause><subclause id="H76A627224AC44326B1E23EAEEABA6026"><enum>(V)</enum><text>through validated
complaints; and</text>
</subclause></clause><clause id="H60178C0BBF4E4A5DB9FC27EA1200A548"><enum>(vii)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</clause></subparagraph><subparagraph id="HE0F28969A70B4C14AB7E4CA5BBE55ED0"><enum>(C)</enum><header>Annual
reports</header>
<clause id="H125F66336AB847EEA4AB56938F17DACC"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="HEDE334E5438E46A8B2B965E6F7A5A7BA"><enum>(I)</enum><text>the compliance of
the security-based swap execution facility with this title; and</text>
</subclause><subclause id="H868D51EC9CB545CC856338795AE77251"><enum>(II)</enum><text>the policies and
procedures, including the code of ethics and conflict of interest policies, of
the security-based security-based swap execution facility.</text>
</subclause></clause><clause id="H96DC99ADABF640CFACB5EDAD591A5CB5"><enum>(ii)</enum><header>Requirements</header><text>The
chief compliance officer shall—</text>
<subclause id="H0CDDF40F1DCF4CCCAFAE586B41C3108F"><enum>(I)</enum><text>submit each report
described in clause (i) with the appropriate financial report of the
security-based swap execution facility that is required to be submitted to the
Commission pursuant to this section; and</text>
</subclause><subclause id="H1DCF629B899144F1BEB33F4D806598A0"><enum>(II)</enum><text>include in the
report a certification that, under penalty of law, the report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HA0235B3270B947D59243498A73B26F6E"><enum>(e)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a security-based swap
execution facility from registration under this section if the Commission finds
that the facility is subject to comparable, comprehensive supervision and
regulation on a consolidated basis by the Commodity Futures Trading
Commission.</text>
</subsection><subsection id="H2581FCA7BD694629A8D4841086DE12D6"><enum>(f)</enum><header>Rules</header><text>The
Commission shall prescribe rules governing the regulation of security-based
swap execution facilities under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H68BAE0015DC94B9EA340F8885DB49327"><enum>(d)</enum><header>Segregation of
assets held as collateral in security-based swap transactions</header><text display-inline="yes-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 3D (as added by
subsection (b)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H671170A83E754B3697266244053F8AFA" style="OLC">
<section commented="no" id="HF5E3CF826E1D4A82A4A0722DB63DF69F"><enum>3E.</enum><header>Segregation of
assets held as collateral in security-based swap transactions</header>
<subsection id="HD39D088010004AAFB2E6218F70E4C6B7"><enum>(a)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person to accept any
money, securities, or property (or to extend any credit in lieu of money,
securities, or property) from, for, or on behalf of a security-based swaps
customer to margin, guarantee, or secure a security-based swap cleared by or
through a clearing agency (including money, securities, or property accruing to
the customer as the result of such a security-based swap), unless the person
shall have registered under this title with the Commission as a broker, dealer,
or security-based swap dealer, and the registration shall not have expired nor
been suspended nor revoked.</text>
</subsection><subsection id="H2A1AEF7AC2224BC0BB2709962590664C"><enum>(b)</enum><header>Cleared
security-based swaps</header>
<paragraph id="H10ABD55E14744EFEA0FC78B075CBF500"><enum>(1)</enum><header>Segregation
required</header><text>A broker, dealer, or security-based swap dealer shall
treat and deal with all money, securities, and property of any security-based
swaps customer received to margin, guarantee, or secure a security-based swap
cleared by or though a clearing agency (including money, securities, or
property accruing to the security-based swaps customer as the result of such a
security-based swap) as belonging to the security-based swaps customer.</text>
</paragraph><paragraph id="H6CD43D94F0C545F7A58660DF9365AA24"><enum>(2)</enum><header>Commingling
prohibited</header><text>Money, securities, and property of a security-based
swaps customer described in paragraph (1) shall be separately accounted for and
shall not be commingled with the funds of the broker, dealer, or security-based
swap dealer or be used to margin, secure, or guarantee any trades or contracts
of any security-based swaps customer or person other than the person for whom
the same are held.</text>
</paragraph></subsection><subsection id="H570189938C304013A20EE1A9A5645BCF"><enum>(c)</enum><header>Exceptions</header>
<paragraph id="H3ED5422273264ECDBCB24B349B145862"><enum>(1)</enum><header>Use of
funds</header>
<subparagraph id="H4BDBA90590A84647ADCA8FBDB34C9603"><enum>(A)</enum><header>In
general</header><text>Notwithstanding subsection (b), money, securities, and
property of a security-based swaps customer of a broker, dealer, or
security-based swap dealer described in subsection (b) may, for convenience, be
commingled and deposited in the same 1 or more accounts with any bank or trust
company or with a clearing agency.</text>
</subparagraph><subparagraph id="H5292C7783E684E409058444A19575B90"><enum>(B)</enum><header>Withdrawal</header><text>Notwithstanding
subsection (b), such share of the money, securities, and property described in
subparagraph (A) as in the normal course of business shall be necessary to
margin, guarantee, secure, transfer, adjust, or settle a cleared security-based
swap with a clearing agency, or with any member of the clearing agency, may be
withdrawn and applied to such purposes, including the payment of commissions,
brokerage, interest, taxes, storage, and other charges, lawfully accruing in
connection with the cleared security-based swap.</text>
</subparagraph></paragraph><paragraph id="H857740CBF660401C9A069C96A9228575"><enum>(2)</enum><header>Commission
action</header><text>Notwithstanding subsection (b), in accordance with such
terms and conditions as the Commission may prescribe by rule, regulation, or
order, any money, securities, or property of the security-based swaps customer
of a broker, dealer, or security-based swap dealer described in subsection (b)
may be commingled and deposited as provided in this section with any other
money, securities, or property received by the broker, dealer, or
security-based swap dealer and required by the Commission to be separately
accounted for and treated and dealt with as belonging to the security-based
swaps customer of the broker, dealer, or security-based swap dealer.</text>
</paragraph></subsection><subsection id="H952F0FFD9345407B87160C8E3AEC63A1"><enum>(d)</enum><header>Permitted
investments</header><text>Money described in subsection (b) may be invested in
obligations of the United States, in general obligations of any State or of any
political subdivision of a State, and in obligations fully guaranteed as to
principal and interest by the United States, or in any other investment that
the Commission may by rule or regulation prescribe, and such investments shall
be made in accordance with such rules and regulations and subject to such
conditions as the Commission may prescribe.</text>
</subsection><subsection id="H298E2562D9BD4E3A9F408934E1F015D8"><enum>(e)</enum><header>Prohibition</header><text>It
shall be unlawful for any person, including any clearing agency and any
depository institution, that has received any money, securities, or property
for deposit in a separate account or accounts as provided in subsection (b) to
hold, dispose of, or use any such money, securities, or property as belonging
to the depositing broker, dealer, or security-based swap dealer or any person
other than the swaps customer of the broker, dealer, or security-based swap
dealer.</text>
</subsection><subsection id="H2271B348963D4330B334512157E50373"><enum>(f)</enum><header>Segregation
requirements for uncleared security-based swaps</header>
<paragraph id="HAC1EF8668F8A40A4BB7710AC1C06B402"><enum>(1)</enum><header>Segregation of
assets held as collateral in uncleared security-based swap
transactions</header>
<subparagraph id="HB6317AAFCA69436992FC3C8C9D87311D"><enum>(A)</enum><header>Notification</header><text>A
security-based swap dealer or major security-based swap participant shall be
required to notify the counterparty of the security-based swap dealer or major
security-based swap participant at the beginning of a security-based swap
transaction that the counterparty has the right to require segregation of the
funds of other property supplied to margin, guarantee, or secure the
obligations of the counterparty.</text>
</subparagraph><subparagraph id="HB385A42C4A0F4E898DCB3B36BE1FD206"><enum>(B)</enum><header>Segregation and
maintenance of funds</header><text>At the request of a counterparty to a
security-based swap that provides funds or other property to a security-based
swap dealer or major security-based swap participant to margin, guarantee, or
secure the obligations of the counterparty, the security-based swap dealer or
major security-based swap participant shall—</text>
<clause id="H48AA0848DF0A459D9FDF47D1AECF0AED"><enum>(i)</enum><text>segregate the
funds or other property for the benefit of the counterparty; and</text>
</clause><clause id="H79B48231690A41C6B0EB9822DD07A282"><enum>(ii)</enum><text>in accordance
with such rules and regulations as the Commission may promulgate, maintain the
funds or other property in a segregated account separate from the assets and
other interests of the security-based swap dealer or major security-based swap
participant.</text>
</clause></subparagraph></paragraph><paragraph id="H5ABDE246B57F430ABDCFCD9C780BBEF3"><enum>(2)</enum><header>Applicability</header><text display-inline="yes-display-inline">The requirements described in paragraph (1)
shall—</text>
<subparagraph id="H133EC4EFD8394589AEFE97B218DD3911"><enum>(A)</enum><text>apply only to a
security-based swap between a counterparty and a security-based swap dealer or
major security-based swap participant that is not submitted for clearing to a
clearing agency; and</text>
</subparagraph><subparagraph id="H399BABD94B85459A9471F7F3294A90CD"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HBF9B0E5D226B4EE5A2980A31A9DBF47D"><enum>(i)</enum><text>not apply to variation
margin payments; or</text>
</clause><clause id="H9A352C6E768949F0B88F055984F0771A" indent="up1"><enum>(ii)</enum><text>not preclude any commercial
arrangement regarding—</text>
<subclause id="HD3539A16160644C69051A743A11B5D52"><enum>(I)</enum><text>the investment of segregated funds or
other property that may only be invested in such investments as the Commission
may permit by rule or regulation; and</text>
</subclause><subclause id="HE5796C6EBF724FA58B74E8DD2D3B5B89"><enum>(II)</enum><text>the related allocation of gains and
losses resulting from any investment of the segregated funds or other
property.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H7DD54E182B08422BA744BAA11FDCB67B"><enum>(3)</enum><header>Use of
independent third-party custodians</header><text>The segregated account
described in paragraph (1) shall be—</text>
<subparagraph id="HF24EEEA92A384235A25673AB43CFE6ED"><enum>(A)</enum><text>carried by an
independent third-party custodian; and</text>
</subparagraph><subparagraph id="H3EE9B80EFD8C4C87B48066058840325F"><enum>(B)</enum><text>designated as a
segregated account for and on behalf of the counterparty.</text>
</subparagraph></paragraph><paragraph id="HEA4A72159C694715A84A743661421CD6"><enum>(4)</enum><header>Reporting
requirement</header><text>If the counterparty does not choose to require
segregation of the funds or other property supplied to margin, guarantee, or
secure the obligations of the counterparty, the security-based swap dealer or
major security-based swap participant shall report to the counterparty of the
security-based swap dealer or major security-based swap participant on a
quarterly basis that the back office procedures of the security-based swap
dealer or major security-based swap participant relating to margin and
collateral requirements are in compliance with the agreement of the
counterparties.</text>
</paragraph></subsection><subsection id="H8EC94C209654409A8730AEF30BD0B191"><enum>(g)</enum><header>Bankruptcy</header><text>A
security-based swap, as defined in section 3(a)(68) shall be considered to be a
security as such term is used in section 101(53A)(B) and subchapter III of
title 11, United States Code. An account that holds a security-based swap,
other than a portfolio margining account referred to in section 15(c)(3)(C)
shall be considered to be a securities account, as that term is defined in
section 741 of title 11, United States Code. The definitions of the terms
<quote>purchase</quote> and <quote>sale</quote> in section 3(a)(13) and (14)
shall be applied to the terms <quote>purchase</quote> and <quote>sale</quote>,
as used in section 741 of title 11, United States Code. The term
<term>customer</term>, as defined in section 741 of title 11, United States
Code, excludes any person, to the extent that such person has a claim based on
any open repurchase agreement, open reverse repurchase agreement, stock
borrowed agreement, non-cleared option, or non-cleared security-based swap
except to the extent of any margin delivered to or by the customer with respect
to which there is a customer protection requirement under section 15(c)(3) or a
segregation
requirement.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEF2A0786E4374EFA97771E935109F729"><enum>(e)</enum><header>Trading in
security-based swaps</header><text>Section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f) is amended by adding at the end the following:</text>
<quoted-block id="H4E4A42270717455486A63F6F6FCDE875" style="OLC">
<subsection id="H593BDCE7983948BEB0E6C6FFBF2FC3C8"><enum>(l)</enum><header>Security-based
swaps</header><text>It shall be unlawful for any person to effect a transaction
in a security-based swap with or for a person that is not an eligible contract
participant, unless such transaction is effected on a national securities
exchange registered pursuant to subsection
(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF24045549C3E47C588701DFF99812B8A"><enum>(f)</enum><header>Additions of
security-based swaps to certain enforcement provisions</header><text>Section
9(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is amended by
striking paragraphs (1) through (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H00E4F91160A440D1A91501036CF8CB4C" style="OLC">
<paragraph id="H1F00CD2F8DCE48058F4BA990C013D94D"><enum>(1)</enum><text>any transaction in
connection with any security whereby any party to such transaction
acquires—</text>
<subparagraph id="H9FA718E2CDE64BA191133C029D788F88"><enum>(A)</enum><text>any put, call,
straddle, or other option or privilege of buying the security from or selling
the security to another without being bound to do so;</text>
</subparagraph><subparagraph id="HC66B90D8F450411FB9D875D1A7B0B9D6"><enum>(B)</enum><text>any security
futures product on the security; or</text>
</subparagraph><subparagraph id="H5E548E1757184836AB4CD19D77296FAB"><enum>(C)</enum><text>any security-based
swap involving the security or the issuer of the security;</text>
</subparagraph></paragraph><paragraph id="H0F8C73B098CA4A7783DF4266F9B2B853"><enum>(2)</enum><text>any transaction in
connection with any security with relation to which such person has, directly
or indirectly, any interest in any—</text>
<subparagraph id="HB34F3CD0FBE04B5699545867EA0A6485"><enum>(A)</enum><text>such put, call,
straddle, option, or privilege;</text>
</subparagraph><subparagraph id="H119BF36CF8E54ECB926A39487F32BF62"><enum>(B)</enum><text>such security
futures product; or</text>
</subparagraph><subparagraph id="HE359046F078E4A62A128DFF6907921BA"><enum>(C)</enum><text>such
security-based swap; or</text>
</subparagraph></paragraph><paragraph id="H94C42E976AAB4B41A3224BB8B9243B5D"><enum>(3)</enum><text>any transaction in
any security for the account of any person who such person has reason to
believe has, and who actually has, directly or indirectly, any interest in
any—</text>
<subparagraph id="HE7220B394ADA4E67AE8236025F3F09C9"><enum>(A)</enum><text>such put, call,
straddle, option, or privilege;</text>
</subparagraph><subparagraph id="HAE0083E9F79044C799748A3E8465C480"><enum>(B)</enum><text>such security
futures product with relation to such security; or</text>
</subparagraph><subparagraph id="H259F04CBA77A4374B4E4949BE28DF95F"><enum>(C)</enum><text>any security-based
swap involving such security or the issuer of such
security.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEF9BEA78FA6645C5A1D72E81632A82E0"><enum>(g)</enum><header>Rulemaking
authority To prevent fraud, manipulation and deceptive conduct in
security-based swaps</header><text>Section 9 of the Securities Exchange Act of
1934 (15 U.S.C. 78i) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5197E60FCFD64C5B9220BF5919C3CB85" style="OLC">
<subsection id="HB6382E9C22D64A5A88933C3B72AF2846"><enum>(j)</enum><text>It shall be
unlawful for any person, directly or indirectly, by the use of any means or
instrumentality of interstate commerce or of the mails, or of any facility of
any national securities exchange, to effect any transaction in, or to induce or
attempt to induce the purchase or sale of, any security-based swap, in
connection with which such person engages in any fraudulent, deceptive, or
manipulative act or practice, makes any fictitious quotation, or engages in any
transaction, practice, or course of business which operates as a fraud or
deceit upon any person. The Commission shall, for the purposes of this
subsection, by rules and regulations define, and prescribe means reasonably
designed to prevent, such transactions, acts, practices, and courses of
business as are fraudulent, deceptive, or manipulative, and such quotations as
are
fictitious.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA1BD56F7168D4E8D9867BA9B3D3A3B66"><enum>(h)</enum><header>Position limits
and position accountability for security-based swaps</header><text>The
Securities Exchange Act of 1934 is amended by inserting after section 10A (15
U.S.C. 78j–1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H11F7EEA8D7DD4D9EB0573DBE44A309F4" style="OLC">
<section id="HEB4B8826A8294D4482F6FB0BBB1923AB"><enum>10B.</enum><header>Position limits
and position accountability for security-based swaps and large trader
reporting</header>
<subsection id="HF0F4D77CBEB749AAB726594CD408CB2D"><enum>(a)</enum><header>Position
limits</header><text display-inline="yes-display-inline">As a means reasonably
designed to prevent fraud and manipulation, the Commission shall, by rule or
regulation, as necessary or appropriate in the public interest or for the
protection of investors, establish limits (including related hedge exemption
provisions) on the size of positions in any security-based swap that may be
held by any person. In establishing such limits, the Commission may require any
person to aggregate positions in—</text>
<paragraph id="H9E8A0A458D314EA1A915100F6398AF67"><enum>(1)</enum><text>any security-based
swap and any security or loan or group of securities or loans on which such
security-based swap is based, which such security-based swap references, or to
which such security-based swap is related as described in paragraph (68) of
section 3(a), and any other instrument relating to such security or loan or
group or index of securities or loans; or</text>
</paragraph><paragraph id="H8433F72BF4384FA189D1085ADD077CC0"><enum>(2)</enum><text>any security-based
swap and—</text>
<subparagraph id="H3A200049452340388FF87C65BA1E1722"><enum>(A)</enum><text>any security or
group or index of securities, the price, yield, value, or volatility of which,
or of which any interest therein, is the basis for a material term of such
security-based swap as described in paragraph (68) of section 3(a); and</text>
</subparagraph><subparagraph id="H180EA6ACC28B484D9A5CE501C7A9F925"><enum>(B)</enum><text>any other
instrument relating to the same security or group or index of securities
described under subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="HDEA9570C2395413BB405C60F277BF6A4"><enum>(b)</enum><header>Exemptions</header><text>The
Commission, by rule, regulation, or order, may conditionally or unconditionally
exempt any person or class of persons, any security-based swap or class of
security-based swaps, or any transaction or class of transactions from any
requirement the Commission may establish under this section with respect to
position limits.</text>
</subsection><subsection id="H0EF5A345D4704754A17552E96C718417"><enum>(c)</enum><header>SRO
Rules</header>
<paragraph id="HD91DF7581CED4475AC7759DEBBFE3E12"><enum>(1)</enum><header>In
general</header><text>As a means reasonably designed to prevent fraud or
manipulation, the Commission, by rule, regulation, or order, as necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title, may direct a
self-regulatory organization—</text>
<subparagraph id="H620AB82F81144CF9ABEB28B4A2EEF487"><enum>(A)</enum><text>to adopt rules
regarding the size of positions in any security-based swap that may be held
by—</text>
<clause id="HCD05485365BF4726816D07045C61925A"><enum>(i)</enum><text>any member of such
self-regulatory organization; or</text>
</clause><clause id="HE6299BB6A1DC4E6EA0CBCA98FB0E7740"><enum>(ii)</enum><text>any person for
whom a member of such self-regulatory organization effects transactions in such
security-based swap; and</text>
</clause></subparagraph><subparagraph id="HF2E7094CC54C44BFAD1D9D8A8BB886F7"><enum>(B)</enum><text>to adopt rules
reasonably designed to ensure compliance with requirements prescribed by the
Commission under this subsection.</text>
</subparagraph></paragraph><paragraph id="HB0CBE06049BD4409B76D9392495B9BCD"><enum>(2)</enum><header>Requirement to
aggregate positions</header><text>In establishing the limits under paragraph
(1), the self-regulatory organization may require such member or person to
aggregate positions in—</text>
<subparagraph id="HB6B774E81CCE47BBB2FF43770C29CF26"><enum>(A)</enum><text>any security-based
swap and any security or loan or group or narrow-based security index of
securities or loans on which such security-based swap is based, which such
security-based swap references, or to which such security-based swap is related
as described in section 3(a)(68), and any other instrument relating to such
security or loan or group or narrow-based security index of securities or
loans; or</text>
</subparagraph><subparagraph id="H5BB377BCD1A94C088927AEEDD369E10B"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H0D73A938751A4AC48D8E0242FBCF4EDC"><enum>(i)</enum><text>any security-based swap;
and</text>
</clause><clause id="H729B245FF01E4BAD871E55BDB7C82EFA" indent="up1"><enum>(ii)</enum><text>any security-based swap and any
other instrument relating to the same security or group or narrow-based
security index of securities.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HE13692A5D21548E8A206A44D5253E578"><enum>(d)</enum><header>Large trader
reporting</header><text display-inline="yes-display-inline">The Commission, by
rule or regulation, may require any person that effects transactions for such
person’s own account or the account of others in any securities-based swap or
uncleared security-based swap and any security or loan or group or narrow-based
security index of securities or loans as set forth in paragraphs (1) and (2) of
subsection (a) under this section to report such information as the Commission
may prescribe regarding any position or positions in any security-based swap or
uncleared security-based swap and any security or loan or group or narrow-based
security index of securities or loans and any other instrument relating to such
security or loan or group or narrow-based security index of securities or loans
as set forth in paragraphs (1) and (2) of subsection (a) under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H59B943D08757435C9324870AB731852A"><enum>(i)</enum><header>Public reporting
and repositories for security-based swaps</header><text>Section 13 of the
Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HBF5838DFF2E9460BB5E7DF60F71E92F8" style="OLC">
<subsection id="H177078DAB42B4B2C8DCB1D6C6D394AFA"><enum>(m)</enum><header>Public
availability of security-based swap transaction data</header>
<paragraph id="H5FB57B3C38E84F28BAFEE35CB6784E1C"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H0DE64D5720664976A16035B57EC7E122"><enum>(A)</enum><header>Definition of
real-time public reporting</header><text>In this paragraph, the term
<term>real-time public reporting</term> means to report data relating to a
security-based swap transaction, including price and volume, as soon as
technologically practicable after the time at which the security-based swap
transaction has been executed.</text>
</subparagraph><subparagraph id="HF5320488AE2E40C7ADF8EC519B299D83"><enum>(B)</enum><header>Purpose</header><text>The
purpose of this subsection is to authorize the Commission to make
security-based swap transaction and pricing data available to the public in
such form and at such times as the Commission determines appropriate to enhance
price discovery.</text>
</subparagraph><subparagraph id="H7A8294BE092D4D3CAD6D2F3A4B2D0794"><enum>(C)</enum><header>General
rule</header><text>The Commission is authorized to provide by rule for the
public availability of security-based swap transaction, volume, and pricing
data as follows:</text>
<clause id="H3D3AE46ABDE74470845E09074336C308"><enum>(i)</enum><text>With respect to
those security-based swaps that are subject to the mandatory clearing
requirement described in section 3C(a)(1) (including those security-based swaps
that are excepted from the requirement pursuant to section 3C(g)), the
Commission shall require real-time public reporting for such
transactions.</text>
</clause><clause id="H5A7CC23DA5F64A47A29CA629963F4772"><enum>(ii)</enum><text>With respect to
those security-based swaps that are not subject to the mandatory clearing
requirement described in section 3C(a)(1), but are cleared at a registered
clearing agency, the Commission shall require real-time public reporting for
such transactions.</text>
</clause><clause id="HD2B5A1A390B541A19EEB0B51AD40FAF5"><enum>(iii)</enum><text>With respect to
security-based swaps that are not cleared at a registered clearing agency and
which are reported to a security-based swap data repository or the Commission
under section 3C(a)(6), the Commission shall require real-time public reporting
for such transactions, in a manner that does not disclose the business
transactions and market positions of any person.</text>
</clause><clause id="H3DB7B60D99A94EF9A75F76FDCD312AAB"><enum>(iv)</enum><text>With respect to
security-based swaps that are determined to be required to be cleared under
section 3C(b) but are not cleared, the Commission shall require real-time
public reporting for such transactions.</text>
</clause></subparagraph><subparagraph id="HC62D2A02233848D3B07AD52ACAE038D8"><enum>(D)</enum><header>Registered
entities and public reporting</header><text>The Commission may require
registered entities to publicly disseminate the security-based swap transaction
and pricing data required to be reported under this paragraph.</text>
</subparagraph><subparagraph id="HD54A782B361E4715A63CCB9CBA1E6F75"><enum>(E)</enum><header>Rulemaking
required</header><text>With respect to the rule providing for the public
availability of transaction and pricing data for security-based swaps described
in clauses (i) and (ii) of subparagraph (C), the rule promulgated by the
Commission shall contain provisions—</text>
<clause id="HF91D6DE1A29D4EB0B6DDAFC785C92A5C"><enum>(i)</enum><text>to
ensure such information does not identify the participants;</text>
</clause><clause id="H04205AB8C6BA4F149F746B874EA1B935"><enum>(ii)</enum><text>to specify the
criteria for determining what constitutes a large notional security-based swap
transaction (block trade) for particular markets and contracts;</text>
</clause><clause id="HDDEAFDBF73C944DDBC6DD29A3C3B48B0"><enum>(iii)</enum><text>to specify the
appropriate time delay for reporting large notional security-based swap
transactions (block trades) to the public; and</text>
</clause><clause id="HF33A6967D495411EAC49567223971D7B"><enum>(iv)</enum><text>that take into
account whether the public disclosure will materially reduce market
liquidity.</text>
</clause></subparagraph><subparagraph id="H0D04D2E572BB46B9A30E7CBC2E4CF03F"><enum>(F)</enum><header>Timeliness of
reporting</header><text>Parties to a security-based swap (including agents of
the parties to a security-based swap) shall be responsible for reporting
security-based swap transaction information to the appropriate registered
entity in a timely manner as may be prescribed by the Commission.</text>
</subparagraph><subparagraph id="HDCA09E85473B49709655E4C8B4AAC005"><enum>(G)</enum><header>Reporting of
swaps to registered security-based swap data repositories</header><text display-inline="yes-display-inline">Each security-based swap (whether cleared
or uncleared) shall be reported to a registered security-based swap data
repository.</text>
</subparagraph><subparagraph id="H099A98D4966D4D3D9EC284753D13E580"><enum>(H)</enum><header>Registration of
clearing agencies</header><text>A clearing agency may register as a
security-based swap data repository.</text>
</subparagraph></paragraph><paragraph commented="no" id="HF1D8B73AC10640E190961C2768A1901C"><enum>(2)</enum><header>Semiannual and
annual public reporting of aggregate security-based swap data</header>
<subparagraph commented="no" id="H53CBF01F278743B0A7DD9477F0FAF5E5"><enum>(A)</enum><header>In
general</header><text>In accordance with subparagraph (B), the Commission shall
issue a written report on a semiannual and annual basis to make available to
the public information relating to—</text>
<clause commented="no" id="HC6D5B6D0D74F48469CA7BB680B5128CA"><enum>(i)</enum><text>the trading and
clearing in the major security-based swap categories; and</text>
</clause><clause commented="no" id="H9505ACB107BC4C37A4A264010011E05E"><enum>(ii)</enum><text>the market
participants and developments in new products.</text>
</clause></subparagraph><subparagraph commented="no" id="HA1333EDCBEFC44878E2638B8E62290A1"><enum>(B)</enum><header>Use;
consultation</header><text>In preparing a report under subparagraph (A), the
Commission shall—</text>
<clause commented="no" id="H783A6269CD5346E7B648F97F569FEF4E"><enum>(i)</enum><text>use information
from security-based swap data repositories and clearing agencies; and</text>
</clause><clause commented="no" id="H917F0B1F728F48DAA621BCFB773B986F"><enum>(ii)</enum><text>consult with the
Office of the Comptroller of the Currency, the Bank for International
Settlements, and such other regulatory bodies as may be necessary.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3F68672FC5DE43249B79D03C79BA6F0D"><enum>(C)</enum><header display-inline="yes-display-inline">Authority of Commission</header><text display-inline="yes-display-inline">The Commission may, by rule, regulation, or
order, delegate the public reporting responsibilities of the Commission under
this paragraph in accordance with such terms and conditions as the Commission
determines to be appropriate and in the public interest.</text>
</subparagraph></paragraph></subsection><subsection id="H2D7C59D87A9B4EEE9878CE70244098F8"><enum>(n)</enum><header>Security-based
swap data repositories</header>
<paragraph id="H2317A3F833584D7AA9E2E5A6D8ADD0CA"><enum>(1)</enum><header>Registration
requirement</header><text>It shall be unlawful for any person, unless
registered with the Commission, directly or indirectly, to make use of the
mails or any means or instrumentality of interstate commerce to perform the
functions of a security-based swap data repository.</text>
</paragraph><paragraph id="H1F2AC0DE07124697A6895DCDB8403B92"><enum>(2)</enum><header>Inspection and
examination</header><text>Each registered security-based swap data repository
shall be subject to inspection and examination by any representative of the
Commission.</text>
</paragraph><paragraph id="H33683B8CD77F4D7D87C5D073874C504F"><enum>(3)</enum><header>Compliance with
core principles</header>
<subparagraph id="H5716F0EEB1E44FD0B93F7C037D05AFB7"><enum>(A)</enum><header>In
general</header><text>To be registered, and maintain registration, as a
security-based swap data repository, the security-based swap data repository
shall comply with—</text>
<clause id="HC1A63289290B410FADAE65091748B643"><enum>(i)</enum><text>the requirements
and core principles described in this subsection; and</text>
</clause><clause id="HA3EDC0C2475A4761B3F15CCAC3F68E5D"><enum>(ii)</enum><text>any requirement
that the Commission may impose by rule or regulation.</text>
</clause></subparagraph><subparagraph id="HD2ED819FD987488B9212D2A1936EEF1E"><enum>(B)</enum><header>Reasonable
discretion of security-based swap data repository</header><text>Unless
otherwise determined by the Commission, by rule or regulation, a security-based
swap data repository described in subparagraph (A) shall have reasonable
discretion in establishing the manner in which the security-based swap data
repository complies with the core principles described in this
subsection.</text>
</subparagraph></paragraph><paragraph id="H36D7AC4082404F51AC4FF2B44ECD6F42"><enum>(4)</enum><header>Standard
setting</header>
<subparagraph id="H0BBDA00201EF494888B2B255F4416889"><enum>(A)</enum><header>Data
identification</header>
<clause id="HFEA79133BCDB4373BDCEE67CFD01F067"><enum>(i)</enum><header>In
general</header><text>In accordance with clause (ii), the Commission shall
prescribe standards that specify the data elements for each security-based swap
that shall be collected and maintained by each registered security-based swap
data repository.</text>
</clause><clause id="HC6E9477E54F04F5CAFF30B31F48D1D0B"><enum>(ii)</enum><header>Requirement</header><text>In
carrying out clause (i), the Commission shall prescribe consistent data element
standards applicable to registered entities and reporting
counterparties.</text>
</clause></subparagraph><subparagraph id="H723A85C1C2564FDDA24C2CF661DE892C"><enum>(B)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for security-based swap data
repositories.</text>
</subparagraph><subparagraph id="H90F6E6DF9B0A4B2E99BC2BAAE1E25844"><enum>(C)</enum><header>Comparability</header><text>The
standards prescribed by the Commission under this subsection shall be
comparable to the data standards imposed by the Commission on clearing agencies
in connection with their clearing of security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H10A7062D7AB24D67A3D60F422BF2593B"><enum>(5)</enum><header>Duties</header><text>A
security-based swap data repository shall—</text>
<subparagraph id="HB47D97681B9D492ABC7A958A98D4CF16"><enum>(A)</enum><text>accept data
prescribed by the Commission for each security-based swap under subsection
(b);</text>
</subparagraph><subparagraph id="H0E8CD4B41F1C42FFBF17BEE95F22EA33"><enum>(B)</enum><text>confirm with both
counterparties to the security-based swap the accuracy of the data that was
submitted;</text>
</subparagraph><subparagraph id="HC0F32082D2464268AD0C56FBDB829766"><enum>(C)</enum><text>maintain the data
described in subparagraph (A) in such form, in such manner, and for such period
as may be required by the Commission;</text>
</subparagraph><subparagraph id="HE6A9630A96E64ABFA487F361A5E579ED"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H6EC7FC0A44A84E4CA4D9A7ED5551FA39"><enum>(i)</enum><text>provide direct
electronic access to the Commission (or any designee of the Commission,
including another registered entity); and</text>
</clause><clause id="HAA23ACFB0CE3463DA4D1F709396C51AF" indent="up1"><enum>(ii)</enum><text>provide the information described
in subparagraph (A) in such form and at such frequency as the Commission may
require to comply with the public reporting requirements set forth in
subsection (m);</text>
</clause></subparagraph><subparagraph id="HAA6C503AC85D4A0D853A328F947212A2"><enum>(E)</enum><text>at the direction
of the Commission, establish automated systems for monitoring, screening, and
analyzing security-based swap data;</text>
</subparagraph><subparagraph id="H9D27B34E32254656BCC8D84D036D0437"><enum>(F)</enum><text>maintain the
privacy of any and all security-based swap transaction information that the
security-based swap data repository receives from a security-based swap dealer,
counterparty, or any other registered entity; and</text>
</subparagraph><subparagraph id="H02AFFA5ABD014FFEA692553ECD31572F"><enum>(G)</enum><text>on a confidential
basis pursuant to section 24, upon request, and after notifying the Commission
of the request, make available all data obtained by the security-based swap
data repository, including individual counterparty trade and position data,
to—</text>
<clause id="H8C20A9A55E2F431D82C97C4FD07F2EF9"><enum>(i)</enum><text>each appropriate
prudential regulator;</text>
</clause><clause id="H86FCDA60D3A24F3BA5BD739B7BAFB023"><enum>(ii)</enum><text>the Financial
Stability Oversight Council;</text>
</clause><clause id="H005954296BDA4D9AB811AA3CB67DB50D"><enum>(iii)</enum><text>the Commodity
Futures Trading Commission;</text>
</clause><clause id="HE38D534805EE4D3796BB52CC6F7339B3"><enum>(iv)</enum><text>the Department of
Justice; and</text>
</clause><clause id="HC6AEFD90E8D3457BA44F69AC4449E352"><enum>(v)</enum><text>any other person
that the Commission determines to be appropriate, including—</text>
<subclause id="HE88F86C65F704C9DACB0AB0E3F1FD05C"><enum>(I)</enum><text>foreign financial
supervisors (including foreign futures authorities);</text>
</subclause><subclause id="H1A8513E6DF8E49F4A07484BE37974E27"><enum>(II)</enum><text>foreign central
banks; and</text>
</subclause><subclause id="HB80518B1CC184ABDBB9AA81D4929F672"><enum>(III)</enum><text>foreign
ministries.</text>
</subclause></clause></subparagraph><subparagraph id="HCA9D9AC0D3094BFC805177668A35CB7A"><enum>(H)</enum><header>Confidentiality
and indemnification agreement</header><text>Before the security-based swap data
repository may share information with any entity described in subparagraph
(G)—</text>
<clause id="HC8C20CA0CB874ECFA9A61E117100F55E"><enum>(i)</enum><text>the security-based
swap data repository shall receive a written agreement from each entity stating
that the entity shall abide by the confidentiality requirements described in
section 24 relating to the information on security-based swap transactions that
is provided; and</text>
</clause><clause id="HB9E4AF762F8C4810A1BFFF79F2B2D705"><enum>(ii)</enum><text>each entity shall
agree to indemnify the security-based swap data repository and the Commission
for any expenses arising from litigation relating to the information provided
under section 24.</text>
</clause></subparagraph></paragraph><paragraph id="HD1A00DBA33044320B224EAA5C71B8F28"><enum>(6)</enum><header>Designation of
chief compliance officer</header>
<subparagraph id="HFCD32AE87C814BD28E6DB12BE55D20BD"><enum>(A)</enum><header>In
general</header><text>Each security-based swap data repository shall designate
an individual to serve as a chief compliance officer.</text>
</subparagraph><subparagraph id="HB73EDE20197D4B54B37EE4AA631DE8EF"><enum>(B)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<clause id="H780D766B3A004E82BC4B807F3D049E14"><enum>(i)</enum><text>report directly to
the board or to the senior officer of the security-based swap data
repository;</text>
</clause><clause id="H9C4300852AC94C7AA1370B42D64DBEF6"><enum>(ii)</enum><text>review the
compliance of the security-based swap data repository with respect to the
requirements and core principles described in this subsection;</text>
</clause><clause id="HCA261193383947CAA9A811CE4AE8C777"><enum>(iii)</enum><text>in consultation
with the board of the security-based swap data repository, a body performing a
function similar to the board of the security-based swap data repository, or
the senior officer of the security-based swap data repository, resolve any
conflicts of interest that may arise;</text>
</clause><clause id="H15B95295633E47CB80B0E6DF8918AC94"><enum>(iv)</enum><text>be responsible
for administering each policy and procedure that is required to be established
pursuant to this section;</text>
</clause><clause id="H1943EB3267444407A35A834D2E64EBF0"><enum>(v)</enum><text>ensure compliance
with this title (including regulations) relating to agreements, contracts, or
transactions, including each rule prescribed by the Commission under this
section;</text>
</clause><clause id="HF76518D803364325B0139B4319D66BC1"><enum>(vi)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<subclause id="H107AB58E7FEA41998025C80DBFB06CAD"><enum>(I)</enum><text>compliance office
review;</text>
</subclause><subclause id="H13944FF5AC8F442496A2B214D83D8A02"><enum>(II)</enum><text>look-back;</text>
</subclause><subclause id="H563E3CD3358646F38C47025756CFE05C"><enum>(III)</enum><text>internal or
external audit finding;</text>
</subclause><subclause id="H4C7E954391CE48369D0446C0529A46D9"><enum>(IV)</enum><text>self-reported
error; or</text>
</subclause><subclause id="H2034E0193D5144BA9DEF1E39A5CF1768"><enum>(V)</enum><text>validated
complaint; and</text>
</subclause></clause><clause id="HA4F4C4C575EF4F2C93C84DA9D1A6B29B"><enum>(vii)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</clause></subparagraph><subparagraph id="H1C9A263F3B2E47299077CF0AEB0FFC2F"><enum>(C)</enum><header>Annual
reports</header>
<clause id="HEE1B6F01F91F4A74B497EEE6379898D8"><enum>(i)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<subclause id="H1235296FC5B546F18C737797F89A1D6D"><enum>(I)</enum><text>the compliance of
the security-based swap data repository of the chief compliance officer with
respect to this title (including regulations); and</text>
</subclause><subclause id="H16B5BC6199B24122A003D0256C7BA263"><enum>(II)</enum><text>each policy and
procedure of the security-based swap data repository of the chief compliance
officer (including the code of ethics and conflict of interest policies of the
security-based swap data repository).</text>
</subclause></clause><clause id="H2DBA8B1425F84C44A2AEB4F617745B38"><enum>(ii)</enum><header>Requirements</header><text>A
compliance report under clause (i) shall—</text>
<subclause id="H2284B2BB9CF5404D89F2CC3E0199EC0B"><enum>(I)</enum><text>accompany each
appropriate financial report of the security-based swap data repository that is
required to be furnished to the Commission pursuant to this section; and</text>
</subclause><subclause id="H32482FAFA0664EF191309DE09A36E15E"><enum>(II)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HBB642FF2D5024974AF1CFA87F8DF3BF3"><enum>(7)</enum><header>Core principles
applicable to security-based swap data repositories</header>
<subparagraph commented="no" id="H6C25F16847F74D29B7E5AC4B51CF1058"><enum>(A)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the swap data repository shall not—</text>
<clause commented="no" id="HBA06376EA20D43BA9002B5AD6BF1738B"><enum>(i)</enum><text>adopt any rule or
take any action that results in any unreasonable restraint of trade; or</text>
</clause><clause commented="no" id="HC2000A79541C48FCBB507069E4E83665"><enum>(ii)</enum><text>impose any
material anticompetitive burden on the trading, clearing, or reporting of
transactions.</text>
</clause></subparagraph><subparagraph commented="no" id="H132B51468EBF4B0AB031FF81B2D02FE8"><enum>(B)</enum><header>Governance
arrangements</header><text>Each security-based swap data repository shall
establish governance arrangements that are transparent—</text>
<clause commented="no" id="H90058FD355CF47E3BA208AF6A5749685"><enum>(i)</enum><text>to fulfill public
interest requirements; and</text>
</clause><clause commented="no" id="H38EBB184AF3A4A35A20673709B04839A"><enum>(ii)</enum><text>to support the
objectives of the Federal Government, owners, and participants.</text>
</clause></subparagraph><subparagraph commented="no" id="HA269347D849043458193AB942F3A9915"><enum>(C)</enum><header>Conflicts of
interest</header><text>Each security-based swap data repository shall—</text>
<clause commented="no" id="HEBBE86EE84C84ADAB5AB02D39C176922"><enum>(i)</enum><text>establish and
enforce rules to minimize conflicts of interest in the decision-making process
of the security-based swap data repository; and</text>
</clause><clause commented="no" id="HDF66B651BB5A4495B4EE845DED40D8B5"><enum>(ii)</enum><text>establish a
process for resolving any conflicts of interest described in clause (i).</text>
</clause></subparagraph><subparagraph id="HEBF72D6F84DB47D78A7E392D3BA7CD6E"><enum>(D)</enum><header>Additional
duties developed by Commission</header>
<clause id="HACDE217A12FD41E894325D723C82EF6D"><enum>(i)</enum><header>In
general</header><text>The Commission may develop 1 or more additional duties
applicable to security-based swap data repositories.</text>
</clause><clause id="H9C6B243F440043D2A8AF81D8DBE43C0C"><enum>(ii)</enum><header>Consideration
of evolving standards</header><text>In developing additional duties under
subparagraph (A), the Commission may take into consideration any evolving
standard of the United States or the international community.</text>
</clause><clause id="HF9C6036B880148A4A3DA1780BFCF1E82"><enum>(iii)</enum><header>Additional
duties for Commission designees</header><text>The Commission shall establish
additional duties for any registrant described in section 13(m)(2)(C) in order
to minimize conflicts of interest, protect data, ensure compliance, and
guarantee the safety and security of the security-based swap data
repository.</text>
</clause></subparagraph></paragraph><paragraph id="HB657178211F149839E126AAC74DB593E"><enum>(8)</enum><header>Required
registration for security-based swap data repositories</header><text display-inline="yes-display-inline">Any person that is required to be
registered as a security-based swap data repository under this subsection shall
register with the Commission, regardless of whether that person is also
licensed under the Commodity Exchange Act as a swap data repository.</text>
</paragraph><paragraph id="H4E4B93158C884CB78B788FBDD47D7A0C"><enum>(9)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall adopt rules governing
persons that are registered under this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H76F97E862C8C472B98711EE0C461F55A"><enum>764.</enum><header>Registration
and regulation of security-based swap dealers and major security-based swap
participants</header>
<subsection id="HB2FD9E81032F4B41BD92B009A4EB1B02"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after
section 15E (15 U.S.C. 78o–7) the following:</text>
<quoted-block display-inline="no-display-inline" id="H154C9F85B93F45E78AEB544CBDD52689" style="OLC">
<section id="H66CF9A464E2F414191A15757970CD92A"><enum>15F.</enum><header>Registration
and regulation of security-based swap dealers and major security-based swap
participants</header>
<subsection id="H16E55606916F46B9BFDE3C5D282D8E13"><enum>(a)</enum><header>Registration</header>
<paragraph id="H038BDCFFEE4549E9982A8B514502CE19"><enum>(1)</enum><header>security-based
swap dealers</header><text>It shall be unlawful for any person to act as a
security-based swap dealer unless the person is registered as a security-based
swap dealer with the Commission.</text>
</paragraph><paragraph id="H68670104B12C4F259B910751D21F5E1F"><enum>(2)</enum><header>Major
security-based swap participants</header><text>It shall be unlawful for any
person to act as a major security-based swap participant unless the person is
registered as a major security-based swap participant with the
Commission.</text>
</paragraph></subsection><subsection id="H3C10624A214D4657BA914CF9E96176B0"><enum>(b)</enum><header>Requirements</header>
<paragraph id="HE4CB84582A5D4A9FB01487D1F5DB7AE5"><enum>(1)</enum><header>In
general</header><text>A person shall register as a security-based swap dealer
or major security-based swap participant by filing a registration application
with the Commission.</text>
</paragraph><paragraph id="H1DBC2AD74B5C440490C06915816A2E6A"><enum>(2)</enum><header>Contents</header>
<subparagraph id="H72A5B7B6F4EF4F9796CC3364832CFE14"><enum>(A)</enum><header>In
general</header><text>The application shall be made in such form and manner as
prescribed by the Commission, and shall contain such information, as the
Commission considers necessary concerning the business in which the applicant
is or will be engaged.</text>
</subparagraph><subparagraph id="HC79EA5FEC1014B72BB86C06C39A2E707"><enum>(B)</enum><header>Continual
reporting</header><text>A person that is registered as a security-based swap
dealer or major security-based swap participant shall continue to submit to the
Commission reports that contain such information pertaining to the business of
the person as the Commission may require.</text>
</subparagraph></paragraph><paragraph id="H6C130E59E7364C8CACE51A4C0CF3D65A"><enum>(3)</enum><header>Expiration</header><text>Each
registration under this section shall expire at such time as the Commission may
prescribe by rule or regulation.</text>
</paragraph><paragraph id="HF38A83F5EC354E1CA0FF147AB6AE92FA"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (d) and (e), the Commission may prescribe rules
applicable to security-based swap dealers and major security-based swap
participants, including rules that limit the activities of non-bank
security-based swap dealers and major security-based swap participants.</text>
</paragraph><paragraph id="HE7B960EBC9EC439ABF6FDF8E47ED82C8"><enum>(5)</enum><header>Transition</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Wall Street Transparency and Accountability
Act of 2010</short-title>, the Commission shall issue rules under this section
to provide for the registration of security-based swap dealers and major
security-based swap participants.</text>
</paragraph><paragraph id="HFCD75B187A054BED9517D95B866AD67F"><enum>(6)</enum><header>Statutory
disqualification</header><text>Except to the extent otherwise specifically
provided by rule, regulation, or order of the Commission, it shall be unlawful
for a security-based swap dealer or a major security-based swap participant to
permit any person associated with a security-based swap dealer or a major
security-based swap participant who is subject to a statutory disqualification
to effect or be involved in effecting security-based swaps on behalf of the
security-based swap dealer or major security-based swap participant, if the
security-based swap dealer or major security-based swap participant knew, or in
the exercise of reasonable care should have known, of the statutory
disqualification.</text>
</paragraph></subsection><subsection id="HF389A97E6B0145699F21E8BD38BCE23A"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="HF4B25DFBB2FD4F05BB48747852D42044"><enum>(1)</enum><header>Security-based
swap dealer</header><text>Any person that is required to be registered as a
security-based swap dealer under this section shall register with the
Commission, regardless of whether the person also is registered with the
Commodity Futures Trading Commission as a swap dealer.</text>
</paragraph><paragraph id="HED64045BE2FF4CB28D75070029FFBCF4"><enum>(2)</enum><header>Major
security-based swap participant</header><text>Any person that is required to be
registered as a major security-based swap participant under this section shall
register with the Commission, regardless of whether the person also is
registered with the Commodity Futures Trading Commission as a major swap
participant.</text>
</paragraph></subsection><subsection id="HEFB469F422F7491E8AEBB0EBD47225F6"><enum>(d)</enum><header>Rulemaking</header>
<paragraph id="H7460E9864C8C45D4BCD7B77794E3131C"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt rules for persons that are
registered as security-based swap dealers or major security-based swap
participants under this section.</text>
</paragraph><paragraph id="HE68F6DEFADBB4C0FA65D7794A144FF53"><enum>(2)</enum><header>Exception for
prudential requirements</header>
<subparagraph id="HDEB2ED84311A4A46B8CE5E09481F4C4E"><enum>(A)</enum><header>In
general</header><text>The Commission may not prescribe rules imposing
prudential requirements on security-based swap dealers or major security-based
swap participants for which there is a prudential regulator.</text>
</subparagraph><subparagraph id="H820EE56913CE4146AE50B34AF6B18EAC"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not limit the authority of the Commission to prescribe rules as
directed under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H92D51784CD12479DA8D59F03256A5FEA"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="H536295CB9CBB44179CFB3317C613A76D"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H3B9542205DD849048E435E6EAF66FEC8"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are
banks</header><text>Each registered security-based swap dealer and major
security-based swap participant for which there is not a prudential regulator
shall meet such minimum capital requirements and minimum initial and variation
margin requirements as the prudential regulator shall by rule or regulation
prescribe under paragraph (2)(A).</text>
</subparagraph><subparagraph id="HB7596478BD3D436E8BB6521A16A92B09"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not
banks</header><text>Each registered security-based swap dealer and major
security-based swap participant for which there is not a prudential regulator
shall meet such minimum capital requirements and minimum initial and variation
margin requirements as the Commission shall by rule or regulation prescribe
under paragraph (2)(B).</text>
</subparagraph></paragraph><paragraph id="HA39F6A5EAF4940308685533BD46DFA0C"><enum>(2)</enum><header>Rules</header>
<subparagraph id="HEC1E88196C9E45198B6A208DD3C6DA5A"><enum>(A)</enum><header>Security-based
swap dealers and major security-based swap participants that are
banks</header><text>The prudential regulators, in consultation with the
Commission and the Commodity Futures Trading Commission, shall adopt rules for
security-based swap dealers and major security-based swap participants, with
respect to their activities as a swap dealer or major swap participant, for
which there is a prudential regulator imposing—</text>
<clause id="H76F4243CF3DF47E0B8F9203188D069D4"><enum>(i)</enum><text>capital
requirements; and</text>
</clause><clause id="HAA2EBEF091CC4E31BED30312E11C6AB2"><enum>(ii)</enum><text>both initial and
variation margin requirements on all security-based swaps that are not cleared
by a registered clearing agency.</text>
</clause></subparagraph><subparagraph id="HAB904EBD9FE541F8BFD831AB174DE0D7"><enum>(B)</enum><header>Security-based
swap dealers and major security-based swap participants that are not
banks</header><text>The Commission shall adopt rules for security-based swap
dealers and major security-based swap participants, with respect to their
activities as a swap dealer or major swap participant, for which there is not a
prudential regulator imposing—</text>
<clause id="HEA4E4AB4D38B4A4CBB8053AFEE45483D"><enum>(i)</enum><text>capital
requirements; and</text>
</clause><clause id="H8E728615C0D942DABF0ED9F1E742F76F"><enum>(ii)</enum><text>both initial and
variation margin requirements on all swaps that are not cleared by a registered
clearing agency.</text>
</clause></subparagraph><subparagraph id="HBAEF0B0346974A498A43FB1688F6D301"><enum>(C)</enum><header>Capital</header><text>In
setting capital requirements for a person that is designated as a
security-based swap dealer or a major security-based swap participant for a
single type or single class or category of security-based swap or activities,
the prudential regulator and the Commission shall take into account the risks
associated with other types of security-based swaps or classes of
security-based swaps or categories of security-based swaps engaged in and the
other activities conducted by that person that are not otherwise subject to
regulation applicable to that person by virtue of the status of the
person.</text>
</subparagraph></paragraph><paragraph id="H7FF72340AA2F4492A3C3E0852201A74B"><enum>(3)</enum><header>Standards for
capital and margin</header>
<subparagraph id="HB65E5DE6EC5A4E5DAC7F68281FD83DAC"><enum>(A)</enum><header>In
general</header><text>To offset the greater risk to the security-based swap
dealer or major security-based swap participant and the financial system
arising from the use of security-based swaps that are not cleared, the
requirements imposed under paragraph (2) shall —</text>
<clause id="H3CC3E5150F814625B67691AE8E937547"><enum>(i)</enum><text>help ensure the
safety and soundness of the security-based swap dealer or major security-based
swap participant; and</text>
</clause><clause id="H632F22C2B7EB4A628B6F7AF8861596C8"><enum>(ii)</enum><text>be appropriate
for the risk associated with the non-cleared security-based swaps held as a
security-based swap dealer or major security-based swap participant.</text>
</clause></subparagraph><subparagraph id="H81A89B919504485C8BB5A28B3492478D"><enum>(B)</enum><header>Rule of
construction</header>
<clause id="HC452AD41E06845C4ACFCC700F746EDC5"><enum>(i)</enum><header>In
general</header><text>Nothing in this section shall limit, or be construed to
limit, the authority—</text>
<subclause id="H87EE485897F8486AB3186528437E2D3E"><enum>(I)</enum><text>of the Commission
to set financial responsibility rules for a broker or dealer registered
pursuant to section 15(b) (except for section 15(b)(11) thereof) in accordance
with section 15(c)(3); or</text>
</subclause><subclause id="HE76E1DAAF3384D9E9BCBBBD14335D7EC"><enum>(II)</enum><text>of the Commodity
Futures Trading Commission to set financial responsibility rules for a futures
commission merchant or introducing broker registered pursuant to section 4f(a)
of the Commodity Exchange Act (except for section 4f(a)(3) thereof) in
accordance with section 4f(b) of the Commodity Exchange Act.</text>
</subclause></clause><clause id="HE40EBB6935EA4FDFA0CFB3D767F7C3D9"><enum>(ii)</enum><header>Futures
commission merchants and other dealers</header><text>A futures commission
merchant, introducing broker, broker, or dealer shall maintain sufficient
capital to comply with the stricter of any applicable capital requirements to
which such futures commission merchant, introducing broker, broker, or dealer
is subject to under this title or the Commodity Exchange Act.</text>
</clause></subparagraph><subparagraph id="H73C017228BFD463CA50DA9B2898F1FFE"><enum>(C)</enum><header>Margin
requirements</header><text>In prescribing margin requirements under this
subsection, the prudential regulator with respect to security-based swap
dealers and major security-based swap participants that are depository
institutions, and the Commission with respect to security-based swap dealers
and major security-based swap participants that are not depository institutions
shall permit the use of noncash collateral, as the regulator or the Commission
determines to be consistent with—</text>
<clause id="H843E53962C254F8AB597BD58A8035BA0"><enum>(i)</enum><text>preserving the
financial integrity of markets trading security-based swaps; and</text>
</clause><clause id="H71EEB6DE615140E4960EB74A029DEC0A"><enum>(ii)</enum><text>preserving the
stability of the United States financial system.</text>
</clause></subparagraph><subparagraph id="H4783C818D8664534BDDED5C46319C398"><enum>(D)</enum><header>Comparability of
capital and margin requirements</header>
<clause id="HED18FF80C81F4D23B7FAFE3E21413BD5"><enum>(i)</enum><header>In
general</header><text>The prudential regulators, the Commission, and the
Securities and Exchange Commission shall periodically (but not less frequently
than annually) consult on minimum capital requirements and minimum initial and
variation margin requirements.</text>
</clause><clause id="HCF6D99C3FA54419AB0D6017C42849F18"><enum>(ii)</enum><header>Comparability</header><text>The
entities described in clause (i) shall, to the maximum extent practicable,
establish and maintain comparable minimum capital requirements and minimum
initial and variation margin requirements, including the use of noncash
collateral, for—</text>
<subclause id="H68A64FC5307549FEAB87FF822B8CAAE3"><enum>(I)</enum><text>security-based
swap dealers; and</text>
</subclause><subclause id="H7E16DDC8FB994FD49B65459EB08BA2A3"><enum>(II)</enum><text>major
security-based swap participants.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HD76B6F57595949D58B16D00FE8086073"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="H5985F4604BC940A8A919885DD9465D9C"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant—</text>
<subparagraph id="HE8AD5CF524C24262B58493C24DE6787D"><enum>(A)</enum><text>shall make such
reports as are required by the Commission, by rule or regulation, regarding the
transactions and positions and financial condition of the registered
security-based swap dealer or major security-based swap participant;</text>
</subparagraph><subparagraph id="H2D19169694904BB18B5CB8BBD74D0076"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H4C82F6C802B14A4981EF376A339E699A"><enum>(i)</enum><text>for which there is a
prudential regulator, shall keep books and records of all activities related to
the business as a security-based swap dealer or major security-based swap
participant in such form and manner and for such period as may be prescribed by
the Commission by rule or regulation; and</text>
</clause><clause id="H97DECE5A46D14C52B240CC34A7A29B23" indent="up1"><enum>(ii)</enum><text>for which there is no prudential
regulator, shall keep books and records in such form and manner and for such
period as may be prescribed by the Commission by rule or regulation; and</text>
</clause></subparagraph><subparagraph id="H8F77325C7D664CBBABB17C2C79C75F5B"><enum>(C)</enum><text>shall keep books
and records described in subparagraph (B) open to inspection and examination by
any representative of the Commission.</text>
</subparagraph></paragraph><paragraph id="H74E4E85352F64F69884551B2DEBAC94E"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing reporting and recordkeeping for
security-based swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="HB2367ECCFFDF4C80B2821AAFBA6F5F3A"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="HE4762F65747F4C16B6A2B94F16C9BB86"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain daily trading records of the
security-based swaps of the registered security-based swap dealer and major
security-based swap participant and all related records (including related cash
or forward transactions) and recorded communications, including electronic
mail, instant messages, and recordings of telephone calls, for such period as
may be required by the Commission by rule or regulation.</text>
</paragraph><paragraph id="H6BFFD2DFB742478CA4FDA08F50A27826"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall require by rule or regulation.</text>
</paragraph><paragraph id="HA3020B5BA37D4D288766BDCE941E81D3"><enum>(3)</enum><header>Counterparty
records</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain daily trading records for each
counterparty in a manner and form that is identifiable with each security-based
swap transaction.</text>
</paragraph><paragraph id="HD27B3EFEB6734DEE88A27A952F703BB8"><enum>(4)</enum><header>Audit
trail</header><text>Each registered security-based swap dealer and major
security-based swap participant shall maintain a complete audit trail for
conducting comprehensive and accurate trade reconstructions.</text>
</paragraph><paragraph id="HF83E95B631FD46C2B4EFEA9D3B9385AE"><enum>(5)</enum><header>Rules</header><text>The
Commission shall adopt rules governing daily trading records for security-based
swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="HAC95F44C4B574B7BA528AF6880062596"><enum>(h)</enum><header>Business Conduct
Standards</header>
<paragraph id="HCFAC26661B854C558132D65D677615E0"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with such business conduct
standards as prescribed in paragraph (3) and as may be prescribed by the
Commission by rule or regulation that relate to—</text>
<subparagraph id="H41A5FAC37921464F884B8F5685989439"><enum>(A)</enum><text>fraud,
manipulation, and other abusive practices involving security-based swaps
(including security-based swaps that are offered but not entered into);</text>
</subparagraph><subparagraph id="H6C64E7B11D5D4212A80C6DA6C28F899C"><enum>(B)</enum><text>diligent
supervision of the business of the registered security-based swap dealer and
major security-based swap participant;</text>
</subparagraph><subparagraph id="HA0957EB81C4A453DBD222AD03CD9A280"><enum>(C)</enum><text>adherence to all
applicable position limits; and</text>
</subparagraph><subparagraph id="H4C031BB6F4B9482DB0C74A6D991A99D8"><enum>(D)</enum><text>such other matters
as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="H021AFCFFC38A48D7B62583B87FC7CAED"><enum>(2)</enum><header>Responsibilities
with respect to special entities</header>
<subparagraph id="H731AA179783043EDB731E04F7E3FEEB8"><enum>(A)</enum><header>Advising special
entities</header><text>A security-based swap dealer or major security-based
swap participant that acts as an advisor to special entity regarding a
security-based swap shall comply with the requirements of paragraph (4) with
respect to such special entity.</text>
</subparagraph><subparagraph id="HB9A7C653C52E44A5AC7121BAB7B5BAAB"><enum>(B)</enum><header>Entering of
security-based swaps with respect to special entities</header><text>A
security-based swap dealer that enters into or offers to enter into
security-based swap with a special entity shall comply with the requirements of
paragraph (5) with respect to such special entity.</text>
</subparagraph><subparagraph id="H729CB0AEC85D4654B542E6B0621001A4"><enum>(C)</enum><header>Special entity
defined</header><text>For purposes of this subsection, the term <quote>special
entity</quote> means—</text>
<clause id="H430CA9F4B6C64C61B04A9314AE465282"><enum>(i)</enum><text>a
Federal agency;</text>
</clause><clause id="H541F4F58733B4F34A4B24C54ACF78709"><enum>(ii)</enum><text>a
State, State agency, city, county, municipality, or other political subdivision
of a State or;</text>
</clause><clause id="H284CB7B93E3E4E8DB17655986CE11F16"><enum>(iii)</enum><text>any employee
benefit plan, as defined in section 3 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002);</text>
</clause><clause id="H7B06C9BB2FA94B778CE1F07209FB5D42"><enum>(iv)</enum><text>any governmental
plan, as defined in section 3 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002); or</text>
</clause><clause id="H9480CC8D534D48AB9C64E1B9794C2877"><enum>(v)</enum><text>any endowment,
including an endowment that is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986.</text>
</clause></subparagraph></paragraph><paragraph id="H4DACA631C02A44EE90E3B05E899C2E50"><enum>(3)</enum><header>Business conduct
requirements</header><text>Business conduct requirements adopted by the
Commission shall—</text>
<subparagraph id="HF7F10A68FB754AA3A33C68086861517B"><enum>(A)</enum><text>establish a duty
for a security-based swap dealer or major security-based swap participant to
verify that any counterparty meets the eligibility standards for an eligible
contract participant;</text>
</subparagraph><subparagraph id="HE9B50505084C452D9F9F637104034B17"><enum>(B)</enum><text>require disclosure
by the security-based swap dealer or major security-based swap participant to
any counterparty to the transaction (other than a security-based swap dealer,
major security-based swap participant, security-based swap dealer, or major
security-based swap participant) of—</text>
<clause id="HF25D6CD2E7DF44E0AD2C3AD30E2954B3"><enum>(i)</enum><text>information about
the material risks and characteristics of the security-based swap;</text>
</clause><clause id="H046C866288864693B4DBB6C7D6AF0B31"><enum>(ii)</enum><text>any material
incentives or conflicts of interest that the security-based swap dealer or
major security-based swap participant may have in connection with the
security-based swap; and</text>
</clause><clause id="H279C48DA201442C1AA83987656BCFF07"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H8C5B46D0385D4D68B5241F2F729EDF74"><enum>(I)</enum><text>for cleared
security-based swaps, upon the request of the counterparty, receipt of the
daily mark of the transaction from the appropriate derivatives clearing
organization; and</text>
</subclause><subclause id="H3A6472C15F8C4C6E8D8C921B0543A40D" indent="up1"><enum>(II)</enum><text>for uncleared security-based swaps,
receipt of the daily mark of the transaction from the security-based swap
dealer or the major security-based swap participant;</text>
</subclause></clause></subparagraph><subparagraph id="H35D6E1E626A549DA80EFB809D5B97FD7"><enum>(C)</enum><text>establish a duty
for a security-based swap dealer or major security-based swap participant to
communicate in a fair and balanced manner based on principles of fair dealing
and good faith; and</text>
</subparagraph><subparagraph id="HF1ABBA782E3F4C96BE70E2546E434F1C"><enum>(D)</enum><text>establish such
other standards and requirements as the Commission may determine are
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="HB572A1420DFF4D1499C97DCB1C206D62"><enum>(4)</enum><header>Special
requirements for security-based swap dealers acting as advisors</header>
<subparagraph id="HA4930290F20845FCA38746F94048B536"><enum>(A)</enum><header>In
general</header><text>It shall be unlawful for a security-based swap dealer or
major security-based swap participant—</text>
<clause id="H15782C39E942472DA604344965D1F14D"><enum>(i)</enum><text>to
employ any device, scheme, or artifice to defraud any special entity or
prospective customer who is a special entity;</text>
</clause><clause id="H2806F3E25AFB43F0A9998DD41A097E86"><enum>(ii)</enum><text>to engage in any
transaction, practice, or course of business that operates as a fraud or deceit
on any special entity or prospective customer who is a special entity;
or</text>
</clause><clause id="H4AD684A5D875459EBEB1341B29B19131"><enum>(iii)</enum><text>to engage in any
act, practice, or course of business that is fraudulent, deceptive, or
manipulative.</text>
</clause></subparagraph><subparagraph id="HF89BD06C0D33464EB5DA29D5327CC864"><enum>(B)</enum><header>Duty</header><text>Any
security-based swap dealer that acts as an advisor to a special entity shall
have a duty to act in the best interests of the special entity.</text>
</subparagraph><subparagraph id="H5722DBB428C24896AFEFF402C6B0F8A0"><enum>(C)</enum><header>Reasonable
efforts</header><text>Any security-based swap dealer that acts as an advisor to
a special entity shall make reasonable efforts to obtain such information as is
necessary to make a reasonable determination that any security-based swap
recommended by the security-based swap dealer is in the best interests of the
special entity, including information relating to—</text>
<clause id="H4490F322D7D846D3A3130E240AB843FF"><enum>(i)</enum><text>the financial
status of the special entity;</text>
</clause><clause id="H7703865E47BA4B29AF2E2BBE8CD961CD"><enum>(ii)</enum><text>the tax status of
the special entity;</text>
</clause><clause id="HE14B30D4469245B2B52833A3B0518780"><enum>(iii)</enum><text>the investment
or financing objectives of the special entity; and</text>
</clause><clause id="H52AEB531217D468CA67A2427FA47B05B"><enum>(iv)</enum><text>any other
information that the Commission may prescribe by rule or regulation.</text>
</clause></subparagraph></paragraph><paragraph id="H89631487216048219A3D65EE5A47CC30"><enum>(5)</enum><header>Special
requirements for security-based swap dealers as counterparties to special
entities</header>
<subparagraph id="H67AA7D5637B24FA288D4C75CF96E7DE8"><enum>(A)</enum><header>In
general</header><text>Any security-based swap dealer or major security-based
swap participant that offers to or enters into a security-based swap with a
special entity shall—</text>
<clause id="HEBF88BF189B8421EBECF3A2BCCE5C494"><enum>(i)</enum><text>comply with any
duty established by the Commission for a security-based swap dealer or major
security-based swap participant, with respect to a counterparty that is an
eligible contract participant within the meaning of subclause (I) or (II) of
clause (vii) of section 1a(18) of the Commodity Exchange Act, that requires the
security-based swap dealer or major security-based swap participant to have a
reasonable basis to believe that the counterparty that is a special entity has
an independent representative that—</text>
<subclause id="HB1E27CCC6EAD43D1957AA33FC3EBD9FC"><enum>(I)</enum><text>has sufficient
knowledge to evaluate the transaction and risks;</text>
</subclause><subclause id="HCE65F553E6064A4FB6570021ACEE003D"><enum>(II)</enum><text>is not subject to
a statutory disqualification;</text>
</subclause><subclause id="H65D4238D85F342CB83FEDA07BC6B35E9"><enum>(III)</enum><text>is independent
of the security-based swap dealer or major security-based swap
participant;</text>
</subclause><subclause id="H690666C8000C41E6BA6C56A593161411"><enum>(IV)</enum><text>undertakes a duty
to act in the best interests of the counterparty it represents;</text>
</subclause><subclause id="H4CF251F6823B46B9A779B83204BE9156"><enum>(V)</enum><text>makes appropriate
disclosures;</text>
</subclause><subclause id="H0218310E63104CADA8722F99A91A8B9D"><enum>(VI)</enum><text>will provide
written representations to the special entity regarding fair pricing and the
appropriateness of the transaction; and</text>
</subclause><subclause id="HA7A111892B004E1DB03E98082E5B06A0"><enum>(VII)</enum><text>in the case of
employee benefit plans subject to the Employee Retirement Income Security act
of 1974, is a fiduciary as defined in section 3 of that Act (29 U.S.C. 1002);
and</text>
</subclause></clause><clause id="HD0D1FCEA516946FB9F3440CF85D484D0"><enum>(ii)</enum><text>before the
initiation of the transaction, disclose to the special entity in writing the
capacity in which the security-based swap dealer is acting.</text>
</clause></subparagraph><subparagraph id="H4E07DE3755044BD7926977313B814926"><enum>(B)</enum><header>Commission
authority</header><text>The Commission may establish such other standards and
requirements under this paragraph as the Commission may determine are
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this Act.</text>
</subparagraph></paragraph><paragraph id="H77C4D9CB364B455D9C4540633CD576B6"><enum>(6)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing business
conduct standards for security-based swap dealers and major security-based swap
participants.</text>
</paragraph><paragraph id="H0A8C855D89064835A8BAD4C3679BD31D"><enum>(7)</enum><header>Applicability</header><text>This
subsection shall not apply with respect to a transaction that is—</text>
<subparagraph id="HB7681D7A77E347E18EB051E3456731C8"><enum>(A)</enum><text>initiated by a
special entity on an exchange or security-based swaps execution facility;
and</text>
</subparagraph><subparagraph id="HA6B8E7747EFA45D4988187F45218F290"><enum>(B)</enum><text>the security-based
swap dealer or major security-based swap participant does not know the identity
of the counterparty to the transaction.”</text>
</subparagraph></paragraph></subsection><subsection id="H28FE9979CD2A44AFB1F764730792C80D"><enum>(i)</enum><header>Documentation
standards</header>
<paragraph id="HF8BC95748C6247119CF3C0159BEC4698"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with such standards as may be
prescribed by the Commission, by rule or regulation, that relate to timely and
accurate confirmation, processing, netting, documentation, and valuation of all
security-based swaps.</text>
</paragraph><paragraph id="H41893CD65DC84CB48C55C5481E91DB74"><enum>(2)</enum><header>Rules</header><text>The
Commission shall adopt rules governing documentation standards for
security-based swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="HED704373D0CB454AB406937D23893BC9"><enum>(j)</enum><header>Duties</header><text display-inline="yes-display-inline">Each registered security-based swap dealer
and major security-based swap participant shall, at all times, comply with the
following requirements:</text>
<paragraph id="HB9D67A069501422CB6C0080711DBA8B6"><enum>(1)</enum><header>Monitoring of
trading</header><text>The security-based swap dealer or major security-based
swap participant shall monitor its trading in security-based swaps to prevent
violations of applicable position limits.</text>
</paragraph><paragraph id="HE4224075399D4E4B8E4702FCC95DF695"><enum>(2)</enum><header>Risk management
procedures</header><text>The security-based swap dealer or major security-based
swap participant shall establish robust and professional risk management
systems adequate for managing the day-to-day business of the security-based
swap dealer or major security-based swap participant.</text>
</paragraph><paragraph id="H6D1F24386B7843DB9A98C9ED0FFDA0B2"><enum>(3)</enum><header>Disclosure of
general information</header><text>The security-based swap dealer or major
security-based swap participant shall disclose to the Commission and to the
prudential regulator for the security-based swap dealer or major security-based
swap participant, as applicable, information concerning—</text>
<subparagraph id="H1917464450864AA6A9892007335E1CF1"><enum>(A)</enum><text>terms and
conditions of its security-based swaps;</text>
</subparagraph><subparagraph id="HC2D3FFBE9B09430EB5078C0F89F73C77"><enum>(B)</enum><text>security-based
swap trading operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="H3AE0B86E419741FE92B7FE7A857B0417"><enum>(C)</enum><text>financial
integrity protections relating to security-based swaps; and</text>
</subparagraph><subparagraph id="HD5A05DAFBA824B1C82AABB27AC52A994"><enum>(D)</enum><text>other information
relevant to its trading in security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H77948CA007734F0988940C8BE57555D9"><enum>(4)</enum><header>Ability to
obtain information</header><text>The security-based swap dealer or major
security-based swap participant shall—</text>
<subparagraph id="H5B9C32558B3D4EFB8A56403C8C8CFE8A"><enum>(A)</enum><text>establish and
enforce internal systems and procedures to obtain any necessary information to
perform any of the functions described in this section; and</text>
</subparagraph><subparagraph id="H8F8207EC82634706AFB8F970DC36C2D3"><enum>(B)</enum><text>provide the
information to the Commission and to the prudential regulator for the
security-based swap dealer or major security-based swap participant, as
applicable, on request.</text>
</subparagraph></paragraph><paragraph id="H0D0E17CE2F9F4CF0AF303263FAAA8D88"><enum>(5)</enum><header>Conflicts of
interest</header><text>The security-based swap dealer and major security-based
swap participant shall implement conflict-of-interest systems and procedures
that—</text>
<subparagraph id="H0C15180CF9EB45A3950F40BE5F834D27"><enum>(A)</enum><text>establish
structural and institutional safeguards to ensure that the activities of any
person within the firm relating to research or analysis of the price or market
for any security-based swap or acting in a role of providing clearing
activities or making determinations as to accepting clearing customers are
separated by appropriate informational partitions within the firm from the
review, pressure, or oversight of persons whose involvement in pricing,
trading, or clearing activities might potentially bias their judgment or
supervision and contravene the core principles of open access and the business
conduct standards described in this title; and</text>
</subparagraph><subparagraph id="HCC7B10389115453C9936EFAD6D40C39A"><enum>(B)</enum><text>address such other
issues as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="H3571CC7C64254F98A0A2E0F4A8143793"><enum>(6)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this title, the security-based swap dealer or major security-based
swap participant shall not—</text>
<subparagraph id="H158544724067489A9281D0A08D4B9A21"><enum>(A)</enum><text>adopt any process
or take any action that results in any unreasonable restraint of trade;
or</text>
</subparagraph><subparagraph id="HC3133D30C95D462BB591121C3E9A62E0"><enum>(B)</enum><text>impose any
material anticompetitive burden on trading or clearing.</text>
</subparagraph></paragraph><paragraph id="HCD1988E02D9F4B84994019A2BEB1E60D"><enum>(7)</enum><header>Rules</header><text>The
Commission shall prescribe rules under this subsection governing duties of
security-based swap dealers and major security-based swap participants.</text>
</paragraph></subsection><subsection id="HE5C846AAB70B4B9F828B263362627FD8"><enum>(k)</enum><header>Designation of
Chief Compliance Officer</header>
<paragraph id="H692FB55EE9CC4EFDBD0C36ABFAE02DB0"><enum>(1)</enum><header>In
general</header><text>Each security-based swap dealer and major security-based
swap participant shall designate an individual to serve as a chief compliance
officer.</text>
</paragraph><paragraph id="HD0920EE07ABA4A6F9CE533358A949580"><enum>(2)</enum><header>Duties</header><text>The
chief compliance officer shall—</text>
<subparagraph id="H419416C307C94E0A873DC859E06FC15E"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the security-based swap dealer or major
security-based swap participant;</text>
</subparagraph><subparagraph id="H4A984417258E455EB5EDE52F9F4A96CC"><enum>(B)</enum><text>review the
compliance of the security-based swap dealer or major security-based swap
participant with respect to the security-based swap dealer and major
security-based swap participant requirements described in this section;</text>
</subparagraph><subparagraph id="HF20E500191F241548B5138F5B7F57CE4"><enum>(C)</enum><text>in consultation
with the board of directors, a body performing a function similar to the board,
or the senior officer of the organization, resolve any conflicts of interest
that may arise;</text>
</subparagraph><subparagraph id="HB0B2136048B34180A2FCA5F500F4316E"><enum>(D)</enum><text>be responsible for
administering each policy and procedure that is required to be established
pursuant to this section;</text>
</subparagraph><subparagraph id="H6011B8E267AC4DB885C18094DD5AD85E"><enum>(E)</enum><text>ensure compliance
with this title (including regulations) relating to security-based swaps,
including each rule prescribed by the Commission under this section;</text>
</subparagraph><subparagraph id="HD1231DFB4507492D8CB079A6CBC579C0"><enum>(F)</enum><text>establish
procedures for the remediation of noncompliance issues identified by the chief
compliance officer through any—</text>
<clause id="HEC3C4F3DFD2A4FE987D16D6F8A877542"><enum>(i)</enum><text>compliance office
review;</text>
</clause><clause id="H92C17049305E4DDAAF1856ED67BAFFC4"><enum>(ii)</enum><text>look-back;</text>
</clause><clause id="H9B9B88D8618F453E91E76546E3B71878"><enum>(iii)</enum><text>internal or
external audit finding;</text>
</clause><clause id="H8A34FC84787E4DE68EB74E4306AA53A8"><enum>(iv)</enum><text>self-reported
error; or</text>
</clause><clause id="HA4C542DD0451431588CB2A7B6E998A46"><enum>(v)</enum><text>validated
complaint; and</text>
</clause></subparagraph><subparagraph id="H92818B6875E34E6BA9DF92AF4285D676"><enum>(G)</enum><text>establish and
follow appropriate procedures for the handling, management response,
remediation, retesting, and closing of noncompliance issues.</text>
</subparagraph></paragraph><paragraph id="HC39EE8D920A34ABF88E0A6E6D8E244CD"><enum>(3)</enum><header>Annual
reports</header>
<subparagraph id="HED9F442D51A344328411F8D608BD2CC1"><enum>(A)</enum><header>In
general</header><text>In accordance with rules prescribed by the Commission,
the chief compliance officer shall annually prepare and sign a report that
contains a description of—</text>
<clause id="HFB4E4ACA5A60417ABEE1A96DE0920F76"><enum>(i)</enum><text>the compliance of
the security-based swap dealer or major swap participant with respect to this
title (including regulations); and</text>
</clause><clause id="H3078D26C42B544FC86212B3AD8327B1C"><enum>(ii)</enum><text>each policy and
procedure of the security-based swap dealer or major security-based swap
participant of the chief compliance officer (including the code of ethics and
conflict of interest policies).</text>
</clause></subparagraph><subparagraph id="H0320254FA9C74405B372171D1671D28C"><enum>(B)</enum><header>Requirements</header><text>A
compliance report under subparagraph (A) shall—</text>
<clause id="H6F82FCC846EC40AB9206B3BD909DFCF5"><enum>(i)</enum><text>accompany each
appropriate financial report of the security-based swap dealer or major
security-based swap participant that is required to be furnished to the
Commission pursuant to this section; and</text>
</clause><clause id="HFE365579E11B4DCD985BC57BA475F98B"><enum>(ii)</enum><text>include a
certification that, under penalty of law, the compliance report is accurate and
complete.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H2E6D4FC764CB4B8EB22AC405589E279A"><enum>(l)</enum><header>Enforcement and
administrative proceeding authority</header>
<paragraph id="H3B891EF9B37E41B195F2DA93509BB2B6"><enum>(1)</enum><header>Primary
enforcement authority</header>
<subparagraph id="H22581209B73B4E909E04E69EE944BEEB"><enum>(A)</enum><header>Securities and
Exchange Commission</header><text>Except as provided in subparagraph (B), (C),
or (D), the Commission shall have primary authority to enforce subtitle B, and
the amendments made by subtitle B of the Wall Street Transparency and
Accountability Act of 2010, with respect to any person.</text>
</subparagraph><subparagraph id="H67A85D2A1512480FB87ADDFB65FC93D0"><enum>(B)</enum><header>Prudential
regulators</header><text>The prudential regulators shall have exclusive
authority to enforce the provisions of subsection (e) and other prudential
requirements of this title (including risk management standards), with respect
to security-based swap dealers or major security-based swap participants for
which they are the prudential regulator.</text>
</subparagraph><subparagraph id="HB474D662C945453B9539D25A5A391BFB"><enum>(C)</enum><header>Referral</header>
<clause id="H3234945C09C14FF0AD71E0A9D83D02B6"><enum>(i)</enum><header>Violations of
nonprudential requirements</header><text>If the appropriate Federal banking
agency for security-based swap dealers or major security-based swap
participants that are depository institutions has cause to believe that such
security-based swap dealer or major security-based swap participant may have
engaged in conduct that constitutes a violation of the nonprudential
requirements of this section or rules adopted by the Commission thereunder, the
agency may recommend in writing to the Commission that the Commission initiate
an enforcement proceeding as authorized under this title. The recommendation
shall be accompanied by a written explanation of the concerns giving rise to
the recommendation.</text>
</clause><clause id="HD564D156D5A74FD987B1359FD2EDBFEB"><enum>(ii)</enum><header>Violations of
prudential requirements</header><text display-inline="yes-display-inline">If
the Commission has cause to believe that a securities-based swap dealer or
major securities-based swap participant that has a prudential regulator may
have engaged in conduct that constitute a violation of the prudential
requirements of subsection (e) or rules adopted thereunder, the Commission may
recommend in writing to the prudential regulator that the prudential regulator
initiate an enforcement proceeding as authorized under this title. The
recommendation shall be accompanied by a written explanation of the concerns
giving rise to the recommendation.</text>
</clause></subparagraph><subparagraph id="HCB4ED10D9EF94B6A95193265D6933E2A"><enum>(D)</enum><header>Backstop
enforcement authority</header>
<clause id="H3851C3CC813544F18184CC82AB7DA18C"><enum>(i)</enum><header>Initiation of
enforcement proceeding by prudential regulator</header><text>If the Commission
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the Commission receives a written report under
subsection (C)(i), the prudential regulator may initiate an enforcement
proceeding.</text>
</clause><clause id="HB963244A13CB43A19C657916A054699E"><enum>(ii)</enum><header>Initiation of
enforcement proceeding by Commission</header><text>If the prudential regulator
does not initiate an enforcement proceeding before the end of the 90-day period
beginning on the date on which the prudential regulator receives a written
report under subsection (C)(ii), the Commission may initiate an enforcement
proceeding.</text>
</clause></subparagraph></paragraph><paragraph id="H5905574CCE024128BA9BEE34BD442C58"><enum>(2)</enum><header>Censure, denial,
suspension; notice and hearing</header><text>The Commission, by order, shall
censure, place limitations on the activities, functions, or operations of, or
revoke the registration of any security-based swap dealer or major
security-based swap participant that has registered with the Commission
pursuant to subsection (b) if the Commission finds, on the record after notice
and opportunity for hearing, that such censure, placing of limitations, or
revocation is in the public interest and that such security-based swap dealer
or major security-based swap participant, or any person associated with such
security-based swap dealer or major security-based swap participant effecting
or involved in effecting transactions in security-based swaps on behalf of such
security-based swap dealer or major security-based swap participant, whether
prior or subsequent to becoming so associated—</text>
<subparagraph id="HFC0DA0B389B94D9E921CF92A63EEE9DE"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of paragraph (4) of section 15(b);</text>
</subparagraph><subparagraph id="HC2D2C6DA283240D1BD069CB04A4EA9E2"><enum>(B)</enum><text>has been convicted
of any offense specified in subparagraph (B) of such paragraph (4) within 10
years of the commencement of the proceedings under this subsection;</text>
</subparagraph><subparagraph id="HF2B1514D5EC645CEB7D65188F8469979"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="H3FFEDF3A9CC54E8AB7022607B8AF4DA3"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
such paragraph (4); or</text>
</subparagraph><subparagraph id="H2360E16E660D4BAE83F5CB3E351563CD"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in subparagraph (G)
of such paragraph (4).</text>
</subparagraph></paragraph><paragraph id="HCB391A6F9D6C4E2CAF4C28AAA95BE569"><enum>(3)</enum><header>Associated
persons</header><text>With respect to any person who is associated, who is
seeking to become associated, or, at the time of the alleged misconduct, who
was associated or was seeking to become associated with a security-based swap
dealer or major security-based swap participant for the purpose of effecting or
being involved in effecting security-based swaps on behalf of such
security-based swap dealer or major security-based swap participant, the
Commission, by order, shall censure, place limitations on the activities or
functions of such person, or suspend for a period not exceeding 12 months, or
bar such person from being associated with a security-based swap dealer or
major security-based swap participant, if the Commission finds, on the record
after notice and opportunity for a hearing, that such censure, placing of
limitations, suspension, or bar is in the public interest and that such
person—</text>
<subparagraph id="HFD7154BEBE8E4FC1B31635C36623ABC3"><enum>(A)</enum><text>has committed or
omitted any act, or is subject to an order or finding, enumerated in
subparagraph (A), (D), or (E) of paragraph (4) of section 15(b);</text>
</subparagraph><subparagraph id="H8E0AFFCCD4D6420D89ABC28572E72EC8"><enum>(B)</enum><text>has been convicted
of any offense specified in subparagraph (B) of such paragraph (4) within 10
years of the commencement of the proceedings under this subsection;</text>
</subparagraph><subparagraph id="H51A1B65E77CF4D1EB818F0B73A0CB238"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="H9E6882DAC631420991FA2537E6807C38"><enum>(D)</enum><text>is subject to an
order or a final order specified in subparagraph (F) or (H), respectively, of
such paragraph (4); or</text>
</subparagraph><subparagraph id="HE7BA5738891845B499A6968B00C6ABB1"><enum>(E)</enum><text>has been found by
a foreign financial regulatory authority to have committed or omitted any act,
or violated any foreign statute or regulation, enumerated in subparagraph (G)
of such paragraph (4).</text>
</subparagraph></paragraph><paragraph id="H5C3ED805A4FF4D93BA7994024C4C23E5"><enum>(4)</enum><header>Unlawful
conduct</header><text>It shall be unlawful—</text>
<subparagraph id="H662CD0076D474E04A029A9A1A6268770"><enum>(A)</enum><text>for any person as
to whom an order under paragraph (3) is in effect, without the consent of the
Commission, willfully to become, or to be, associated with a security-based
swap dealer or major security-based swap participant in contravention of such
order; or</text>
</subparagraph><subparagraph id="H26C9CA77A1554E07A5C408A515B247C4"><enum>(B)</enum><text>for any
security-based swap dealer or major security-based swap participant to permit
such a person, without the consent of the Commission, to become or remain a
person associated with the security-based swap dealer or major security-based
swap participant in contravention of such order, if such security-based swap
dealer or major security-based swap participant knew, or in the exercise of
reasonable care should have known, of such
order.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H67BCE1B2FB8B4D4F8903B5792161ECF2"><enum>(b)</enum><header>Savings
clause</header><text>Notwithstanding any other provision of this title, nothing
in this subtitle shall be construed as divesting any appropriate Federal
banking agency of any authority it may have to establish or enforce, with
respect to a person for which such agency is the appropriate Federal banking
agency, prudential or other standards pursuant to authority by Federal law
other than this title.</text>
</subsection></section><section id="HD8A4CA13EE634C89B525D17E2774F501"><enum>765.</enum><header>Rulemaking on
conflict of interest</header>
<subsection id="H7A471F0F26EB49C99A367E6370866269"><enum>(a)</enum><header>In
general</header><text>In order to mitigate conflicts of interest, not later
than 180 days after the date of enactment of the Wall Street Transparency and
Accountability Act of 2010, the Securities and Exchange Commission shall adopt
rules which may include numerical limits on the control of, or the voting
rights with respect to, any clearing agency that clears security-based swaps,
or on the control of any security-based swap execution facility or national
securities exchange that posts or makes available for trading security-based
swaps, by a bank holding company (as defined in section 2 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841)) with total consolidated assets of
$50,000,000,000 or more, a nonbank financial company (as defined in section
102) supervised by the Board of Governors of the Federal Reserve System,
affiliate of such a bank holding company or nonbank financial company, a
security-based swap dealer, major security-based swap participant, or person
associated with a security-based swap dealer or major security-based swap
participant.</text>
</subsection><subsection id="H5C8AFC92602A45EC93F7DAE765AE41F4"><enum>(b)</enum><header>Purposes</header><text>The
Securities and Exchange Commission shall adopt rules if the Commission
determines, after the review described in subsection (a), that such rules are
necessary or appropriate to improve the governance of, or to mitigate systemic
risk, promote competition, or mitigate conflicts of interest in connection with
a security-based swap dealer or major security-based swap participant’s conduct
of business with, a clearing agency, national securities exchange, or
security-based swap execution facility that clears, posts, or makes available
for trading security-based swaps and in which such security-based swap dealer
or major security-based swap participant has a material debt or equity
investment.</text>
</subsection><subsection id="H16501076125D44A7ABCFEE62C079DAF1"><enum>(c)</enum><header>Considerations</header><text>In
adopting rules pursuant to this section, the Securities and Exchange Commission
shall consider any conflicts of interest arising from the amount of equity
owned by a single investor, the ability to vote, cause the vote of, or withhold
votes entitled to be cast on any matters by the holders of the ownership
interest, and the governance arrangements of any derivatives clearing
organization that clears swaps, or swap execution facility or board of trade
designated as a contract market that posts swaps or makes swaps available for
trading.</text>
</subsection></section><section id="H78F694E0F39F4E1F90A04A8209D9E060"><enum>766.</enum><header>Reporting and
recordkeeping</header>
<subsection id="H9EFA80B9C7AD43F08B4F111E1B49AA9D"><enum>(a)</enum><header>In
general</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.) is amended by inserting after section 13 the following:</text>
<quoted-block display-inline="no-display-inline" id="H95A32904A2DA49518D16893399ADDC38" style="OLC">
<section id="HA3487D6CE8974E1DB4240400E9DA3B41"><enum>13A.</enum><header>Reporting and
recordkeeping for certain security-based swaps</header>
<subsection id="HD200675B03C9445A8CC93398ECDF46CB"><enum>(a)</enum><header>Required
reporting of security-based swaps not accepted by any clearing agency or
derivatives clearing organization</header>
<paragraph id="H034C63BAD19349F594F4AAFB8862059B"><enum>(1)</enum><header>In
general</header><text>Each security-based swap that is not accepted for
clearing by any clearing agency or derivatives clearing organization shall be
reported to—</text>
<subparagraph id="H314A287BCB6C4AA7A53C9A2DF06B7BF6"><enum>(A)</enum><text>a security-based
swap data repository described in section 13(n); or</text>
</subparagraph><subparagraph id="H25C265BDA3E047429D34EB9451371640"><enum>(B)</enum><text>in the case in
which there is no security-based swap data repository that would accept the
security-based swap, to the Commission pursuant to this section within such
time period as the Commission may by rule or regulation prescribe.</text>
</subparagraph></paragraph><paragraph id="HEF6C2E0ACED94444A0FDC8BCC6FF77AC"><enum>(2)</enum><header>Transition rule
for preenactment security-based swaps</header>
<subparagraph id="HE2C30B90E92140E68D735F58071C0062"><enum>(A)</enum><header>Security-based
swaps entered into before the date of enactment of the Wall Street Transparency
and Accountability Act of 2010</header><text>Each security-based swap entered
into before the date of enactment of the <short-title>Wall
Street Transparency and Accountability Act of 2010</short-title>, the terms of
which have not expired as of the date of enactment of that Act, shall be
reported to a registered security-based swap data repository or the Commission
by a date that is not later than—</text>
<clause id="HC6B99F1242BE4D81A971030BE2111593"><enum>(i)</enum><text>30
days after issuance of the interim final rule; or</text>
</clause><clause id="H72894DC15DD64047A569C560A377DC8E"><enum>(ii)</enum><text>such other period
as the Commission determines to be appropriate.</text>
</clause></subparagraph><subparagraph id="H08A5973CDC2B477D8756F5616EAB45E6"><enum>(B)</enum><header>Commission
rulemaking</header><text>The Commission shall promulgate an interim final rule
within 90 days of the date of enactment of this section providing for the
reporting of each security-based swap entered into before the date of enactment
as referenced in subparagraph (A).</text>
</subparagraph><subparagraph id="H283537610B5543749B16664854F83BB6"><enum>(C)</enum><header>Effective
date</header><text>The reporting provisions described in this section shall be
effective upon the date of the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="H76DF4CDC47F140318F65EF2E05F1EB34"><enum>(3)</enum><header>Reporting
obligations</header>
<subparagraph id="HD7CE8584818441BC98D9D4DD60D2E87E"><enum>(A)</enum><header>Security-based
swaps in which only 1 counterparty is a security-based swap dealer or major
security-based swap participant</header><text>With respect to a security-based
swap in which only 1 counterparty is a security-based swap dealer or major
security-based swap participant, the security-based swap dealer or major
security-based swap participant shall report the security-based swap as
required under paragraphs (1) and (2).</text>
</subparagraph><subparagraph id="H8A95CF006F78485DA83BA1AEBF398E28"><enum>(B)</enum><header>Security-based
swaps in which 1 counterparty is a security-based swap dealer and the other a
major security-based swap participant</header><text>With respect to a
security-based swap in which 1 counterparty is a security-based swap dealer and
the other a major security-based swap participant, the security-based swap
dealer shall report the security-based swap as required under paragraphs (1)
and (2).</text>
</subparagraph><subparagraph id="HCC93A19D16014896972E039553F410C9"><enum>(C)</enum><header>Other
security-based swaps</header><text>With respect to any other security-based
swap not described in subparagraph (A) or (B), the counterparties to the
security-based swap shall select a counterparty to report the security-based
swap as required under paragraphs (1) and (2).</text>
</subparagraph></paragraph></subsection><subsection id="HB83DDC8803C7430A95DD76E45E381076"><enum>(b)</enum><header>Duties of
certain individuals</header><text>Any individual or entity that enters into a
security-based swap shall meet each requirement described in subsection (c) if
the individual or entity did not—</text>
<paragraph id="HC4C0E82B8D4C4F0997FEEE57CEFCE371"><enum>(1)</enum><text>clear the
security-based swap in accordance with section 3C(a)(1); or</text>
</paragraph><paragraph id="H0DA69D9743294B43B72CD67FB3BE07C2"><enum>(2)</enum><text>have the data
regarding the security-based swap accepted by a security-based swap data
repository in accordance with rules (including timeframes) adopted by the
Commission under this title.</text>
</paragraph></subsection><subsection id="H745AAF71A34249F7B4C6F364ED140352"><enum>(c)</enum><header>Requirements</header><text>An
individual or entity described in subsection (b) shall—</text>
<paragraph id="H686308C435E24D11B6DEB8339F87390E"><enum>(1)</enum><text>upon written
request from the Commission, provide reports regarding the security-based swaps
held by the individual or entity to the Commission in such form and in such
manner as the Commission may request; and</text>
</paragraph><paragraph id="HB6D19566129E48A08AE61C33AD3E3A08"><enum>(2)</enum><text>maintain books and
records pertaining to the security-based swaps held by the individual or entity
in such form, in such manner, and for such period as the Commission may
require, which shall be open to inspection by—</text>
<subparagraph id="H99A12E863CBD46F7AAF7186778519CC3"><enum>(A)</enum><text>any representative
of the Commission;</text>
</subparagraph><subparagraph id="H76AB453CA6284B9DBFC23366C629EDA9"><enum>(B)</enum><text>an appropriate
prudential regulator;</text>
</subparagraph><subparagraph id="H926FF595C48843A395B6185AF0956F8C"><enum>(C)</enum><text>the Commodity
Futures Trading Commission;</text>
</subparagraph><subparagraph id="H35B2C11564C34AC791EC2A6AD4542775"><enum>(D)</enum><text>the Financial
Stability Oversight Council; and</text>
</subparagraph><subparagraph id="HC3FBFBCCAD1443EAB82B9E02EA90E329"><enum>(E)</enum><text>the Department of
Justice.</text>
</subparagraph></paragraph></subsection><subsection id="HAF19262DDB504D96B1684DCF543663CD"><enum>(d)</enum><header>Identical
data</header><text>In prescribing rules under this section, the Commission
shall require individuals and entities described in subsection (b) to submit to
the Commission a report that contains data that is not less comprehensive than
the data required to be collected by security-based swap data repositories
under this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H74F6A42711BD460D8A91A7D9A78A99A1"><enum>(b)</enum><header>Beneficial
ownership reporting</header><text>Section 13 of the Securities Exchange Act of
1934 (15 U.S.C. 78m) is amended—</text>
<paragraph id="H0E6A6E6900DD4003A23DB9208A7BC252"><enum>(1)</enum><text>in subsection
(d)(1), by inserting <quote>or otherwise becomes or is deemed to become a
beneficial owner of any of the foregoing upon the purchase or sale of a
security-based swap that the Commission may define by rule, and</quote> after
<quote>Alaska Native Claims Settlement Act,</quote>; and</text>
</paragraph><paragraph id="H0BDC43AA72AD4B1FA7B7869C1C930BBB"><enum>(2)</enum><text>in subsection
(g)(1), by inserting <quote>or otherwise becomes or is deemed to become a
beneficial owner of any security of a class described in subsection (d)(1) upon
the purchase or sale of a security-based swap that the Commission may define by
rule</quote> after <quote>subsection (d)(1) of this section</quote>.</text>
</paragraph></subsection><subsection id="HA3F94D72E7CF4F2DB0E5E0CB95B5381B"><enum>(c)</enum><header>Reports by
institutional investment managers</header><text>Section 13(f)(1) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m(f)(1)) is amended by inserting
<quote>or otherwise becomes or is deemed to become a beneficial owner of any
security of a class described in subsection (d)(1) upon the purchase or sale of
a security-based swap that the Commission may define by rule,</quote> after
<quote>subsection (d)(1) of this section</quote>.</text>
</subsection><subsection id="H4F899C9A732B4E8B9DF289FA8CAC8A9A"><enum>(d)</enum><header>Administrative
proceeding authority</header><text>Section 15(b)(4) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o(b)(4)) is amended—</text>
<paragraph id="HC8183CF366D349DBBEEEC6D92FB79D92"><enum>(1)</enum><text>in subparagraph
(C), by inserting <quote>security-based swap dealer, major security-based swap
participant,</quote> after <quote>government securities dealer,</quote>;
and</text>
</paragraph><paragraph id="H6D4D0B78062847A2BC3B7CDB08CAE6B5"><enum>(2)</enum><text>in subparagraph
(F), by striking <quote>broker or dealer</quote> and inserting <quote>broker,
dealer, security-based swap dealer, or a major security-based swap
participant</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HA58CBC0F5D184FC38B165FD0AE3970D3"><enum>(e)</enum><header>Security-based
swap beneficial ownership</header><text>Section 13 of the Securities Exchange
Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H330D8823D1D34E1B9B4691B13980ACC3" style="OLC">
<subsection id="HFCCAC416C90C4550B9D38D1513AF237B"><enum>(o)</enum><header>Beneficial
ownership</header><text display-inline="yes-display-inline">For purposes of
this section and section 16, a person shall be deemed to acquire beneficial
ownership of an equity security based on the purchase or sale of a
security-based swap, only to the extent that the Commission, by rule,
determines after consultation with the prudential regulators and the Secretary
of the Treasury, that the purchase or sale of the security-based swap, or class
of security-based swap, provides incidents of ownership comparable to direct
ownership of the equity security, and that it is necessary to achieve the
purposes of this section that the purchase or sale of the security-based swaps,
or class of security-based swap, be deemed the acquisition of beneficial
ownership of the equity
security.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H18F8E12AF5014B9A8D8D37D62DCF0DDF"><enum>767.</enum><header>State gaming
and bucket shop laws</header><text display-inline="no-display-inline">Section
28(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78bb(a)) is amended to
read as follows:</text>
<quoted-block id="H206AEE1C92A644E082469421A860E936" style="OLC">
<subsection id="HCC3FE66C7A044B6F918F35E36BCB542C"><enum>(a)</enum><header>Limitation on
judgments</header>
<paragraph id="H31C50B3687ED4DD9B6FB929DF28DFAD6"><enum>(1)</enum><header>In
general</header><text>No person permitted to maintain a suit for damages under
the provisions of this title shall recover, through satisfaction of judgment in
1 or more actions, a total amount in excess of the actual damages to that
person on account of the act complained of. Except as otherwise specifically
provided in this title, nothing in this title shall affect the jurisdiction of
the securities commission (or any agency or officer performing like functions)
of any State over any security or any person insofar as it does not conflict
with the provisions of this title or the rules and regulations under this
title.</text>
</paragraph><paragraph id="H4D92DDD211CC4BA0802432204A44C494"><enum>(2)</enum><header>Rule of
construction</header><text>Except as provided in subsection (f), the rights and
remedies provided by this title shall be in addition to any and all other
rights and remedies that may exist at law or in equity.</text>
</paragraph><paragraph id="H8250C9931994478BBDCDF8A8A44CCCE5"><enum>(3)</enum><header>State Bucket
shop laws</header><text>No State law which prohibits or regulates the making or
promoting of wagering or gaming contracts, or the operation of <quote>bucket
shops</quote> or other similar or related activities, shall invalidate—</text>
<subparagraph id="HC445FCF0D6D7468FBB44E393832E439F"><enum>(A)</enum><text>any put, call,
straddle, option, privilege, or other security subject to this title (except
any security that has a pari-mutuel payout or otherwise is determined by the
Commission, acting by rule, regulation, or order, to be appropriately subject
to such laws), or apply to any activity which is incidental or related to the
offer, purchase, sale, exercise, settlement, or closeout of any such
security;</text>
</subparagraph><subparagraph id="HA1D8481455E34EA08F1EF1C863A043A8"><enum>(B)</enum><text>any security-based
swap between eligible contract participants; or</text>
</subparagraph><subparagraph id="HE729E635ECBE452AA575CA93F951F9F8"><enum>(C)</enum><text>any security-based
swap effected on a national securities exchange registered pursuant to section
6(b).</text>
</subparagraph></paragraph><paragraph id="H694FDEFFF242477184B9ED8D9D1A27F8"><enum>(4)</enum><header>Other State
provisions</header><text>No provision of State law regarding the offer, sale,
or distribution of securities shall apply to any transaction in a
security-based swap or a security futures product, except that this paragraph
may not be construed as limiting any State antifraud law of general
applicability. A security-based swap may not be regulated as an insurance
contract under any provision of State
law.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9F2C42B1335C481F9814BBF05F3295FC"><enum>768.</enum><header>Amendments to
the Securities Act of 1933; treatment of security-based swaps</header>
<subsection id="H20EA67DF86DA4505A16A2BE8A8AE0D35"><enum>(a)</enum><header>Definitions</header><text>Section
2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended—</text>
<paragraph id="H6D83C6C0479245BFA7BD83B13F3716E6"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph id="H03B33AFF748C42888B853934C254DAAC"><enum>(2)</enum><text>in paragraph (3),
by adding at the end the following: <quote>Any offer or sale of a
security-based swap by or on behalf of the issuer of the securities upon which
such security-based swap is based or is referenced, an affiliate of the issuer,
or an underwriter, shall constitute a contract for sale of, sale of, offer for
sale, or offer to sell such securities.</quote>; and</text>
</paragraph><paragraph id="HF94940A22CB147DB8760DAD6FF2D773C"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H97EE98B5B6B045658C3AE2DB0382AF34" style="OLC">
<paragraph id="HF756CE789C674F1DAEFD80D71943CF22"><enum>(17)</enum><text>The terms
<term>swap</term> and <term>security-based swap</term> have the same meanings
as in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).</text>
</paragraph><paragraph id="HDF1F21785C93429CB661B6F908A40C53"><enum>(18)</enum><text>The terms
<term>purchase</term> or <term>sale</term> of a security-based swap shall be
deemed to mean the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance of, or
extinguishing of rights or obligations under, a security-based swap, as the
context may
require.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H803305D3FA294207BDE49CC8C3B199E5"><enum>(b)</enum><header>Registration of
security-based swaps</header><text>Section 5 of the Securities Act of 1933 (15
U.S.C. 77e) is amended by adding at the end the following:</text>
<quoted-block id="H099F9EAF24AC46E4ABB5C9F639631F41" style="OLC">
<subsection id="H497B83E289DB4F8AA83955AB6B32F143"><enum>(d)</enum><text>Notwithstanding
the provisions of section 3 or 4, unless a registration statement meeting the
requirements of section 10(a) is in effect as to a security-based swap, it
shall be unlawful for any person, directly or indirectly, to make use of any
means or instruments of transportation or communication in interstate commerce
or of the mails to offer to sell, offer to buy or purchase or sell a
security-based swap to any person who is not an eligible contract participant
as defined in section 1a(18) of the Commodity Exchange Act (7 U.S.C.
1a(18)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5573F2F8F0C9412EB2F74087A9B1A874"><enum>769.</enum><header>Definitions
under the Investment Company Act of 1940</header><text display-inline="no-display-inline">Section 2(a) of the Investment Company Act
of 1940 (15 U.S.C. 80a–2) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2A4EAC76A6AC4C99A712ED15EBF0D112" style="OLC">
<paragraph id="HFE40284374914EBCBFB9BFF24769960A"><enum>(54)</enum><text>The terms
<term>commodity pool</term>, <quote>commodity pool operator</quote>,
<quote>commodity trading advisor</quote>, <term>major swap participant</term>,
<term>swap</term>, <term>swap dealer</term>, and <term>swap execution
facility</term> have the same meanings as in section 1a of the Commodity
Exchange Act (7 U.S.C.
1a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFCE043F8EF864FE1B8E35F9EEBEE5DA9"><enum>770.</enum><header>Definitions
under the Investment Advisers Act of 1940</header><text display-inline="no-display-inline">Section 202(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–2) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H52BA46EC9E5E47748CFD9A627F7C8C34" style="OLC">
<paragraph id="HB5C493AC05CE4443BB28A126906ACE7F"><enum>(29)</enum><text>The terms
<term>commodity pool</term>, <term>commodity pool operator</term>,
<term>commodity trading advisor</term>, <term>major swap participant</term>,
<term>swap</term>, <term>swap dealer</term>, and <term>swap execution
facility</term> have the same meanings as in section 1a of the Commodity
Exchange Act (7 U.S.C.
1a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0721B67B20A94AB0944041226B9DCA46"><enum>771.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by its terms, this subtitle does not divest any appropriate Federal
banking agency, the Securities and Exchange Commission, the Commodity Futures
Trading Commission, or any other Federal or State agency, of any authority
derived from any other provision of applicable law.</text>
</section><section id="H0220805869114DCA80E81CFA213BBCCC"><enum>772.</enum><header>Jurisdiction</header>
<subsection id="H34237B581B6E4A3C819F40142627915A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 36 of the
Securities Exchange Act of 1934 (15 U.S.C. 78mm) is amended by adding at the
end the following:</text>
<quoted-block id="H0F9E7A71717E4EBAB7D4235E0E7B34B9" style="OLC">
<subsection id="HDD078447E1F1436C8621736DD8B13E01"><enum>(c)</enum><header>Derivatives</header><text>Unless
the Commission is expressly authorized by any provision described in this
subsection to grant exemptions, the Commission shall not grant exemptions, with
respect to amendments made by subtitle B of the Wall Street Transparency and
Accountability Act of 2010, with respect to paragraphs (65), (66), (68), (69),
(70), (71), (72), (73), (74), (75), (76), and (79) of section 3(a), and
sections 10B(a), 10B(b), 10B(c), 13A, 15F, 17A(g), 17A(h), 17A(i), 17A(j),
17A(k), and 17A(l); provided that the Commission shall have exemptive authority
under this title with respect to security-based swaps as to the same matters
that the Commodity Futures Trading Commission has under the Wall Street
Transparency and Accountability Act of 2010 with respect to swaps, including
under section 4(c) of the Commodity Exchange
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7E220EFC70C643B89337A3E1C8E5C9BF"><enum>(b)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Section 30 of
the Securities Exchange Act of 1934 (15 U.S.C. 78dd) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H87BA069AF63E46D39B24F8406BAE5144" style="OLC">
<subsection commented="no" id="HCBDB21784E084D24880AA38A79DB51DB"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">No provision of
this title that was added by the Wall Street Transparency and Accountability
Act of 2010, or any rule or regulation thereunder, shall apply to any person
insofar as such person transacts a business in security-based swaps without the
jurisdiction of the United States, unless such person transacts such business
in contravention of such rules and regulations as the Commission may prescribe
as necessary or appropriate to prevent the evasion of any provision of this
title that was added by the Wall Street Transparency and Accountability Act of
2010. This subsection shall not be construed to limit the jurisdiction of the
Commission under any provision of this title, as in effect prior to the date of
enactment of the Wall Street Transparency and Accountability Act of
2010.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H3441839BE6944BAEAD1834133D1F630B"><enum>773.</enum><header>Civil
Penalties</header><text display-inline="no-display-inline">Section 21B of the
Securities Exchange Act of 1934 (15 U.S.C. 78p-2) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H964BBA757B754AE48921F4571FB2FF14" style="OLC">
<subsection id="HD74F15EDFEE74CA89F4606F8476583B5"><enum>(f)</enum><header>Security-based
swaps</header>
<paragraph id="H894D701235954403AEEE07EB0FA15C15"><enum>(1)</enum><header>Clearing
agency</header><text>Any clearing agency that knowingly or recklessly evades or
participates in or facilitates an evasion of the requirements of section 3C
shall be liable for a civil money penalty in twice the amount otherwise
available for a violation of section 3C.</text>
</paragraph><paragraph id="HD8104B744BD746AFA42553321987A160"><enum>(2)</enum><header>Security-based
swap dealer or major security-based swap participant</header><text>Any
security-based swap dealer or major security-based swap participant that
knowingly or recklessly evades or participates in or facilitates an evasion of
the requirements of section 3C shall be liable for a civil money penalty in
twice the amount otherwise available for a violation of section
3C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H67889468E6D840C190F7CC325E1AA4EA" section-type="subsequent-section"><enum>774.</enum><header>Effective
date</header><text display-inline="no-display-inline">Unless otherwise
provided, the provisions of this subtitle shall take effect on the later of 360
days after the date of the enactment of this subtitle or, to the extent a
provision of this subtitle requires a rulemaking, not less than 60 days after
publication of the final rule or regulation implementing such provision of this
subtitle.</text>
</section></subtitle><enum>VIII</enum><header>Payment,
clearing, and settlement supervision</header>
<section id="HD784FF7AB5904EFA987DEC2BEF086240"><enum>801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Payment, Clearing, and
Settlement Supervision Act of 2010</short-title></quote>.</text>
</section><section id="HABADD0917F9F42679CD9B45DD52C4570"><enum>802.</enum><header>Findings and
purposes</header>
<subsection id="H2E76D323E7C84BADB453063CA03A6F6E"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="H6991838341B647569F0612D94A54F2DC"><enum>(1)</enum><text>The proper
functioning of the financial markets is dependent upon safe and efficient
arrangements for the clearing and settlement of payment, securities, and other
financial transactions.</text>
</paragraph><paragraph id="H9F7BEC6758D74C0F9C4E6BA62EB693E0"><enum>(2)</enum><text>Financial market
utilities that conduct or support multilateral payment, clearing, or settlement
activities may reduce risks for their participants and the broader financial
system, but such utilities may also concentrate and create new risks and thus
must be well designed and operated in a safe and sound manner.</text>
</paragraph><paragraph id="H05040402BAD146B6B031B14B0C78AB8F"><enum>(3)</enum><text>Payment, clearing,
and settlement activities conducted by financial institutions also present
important risks to the participating financial institutions and to the
financial system.</text>
</paragraph><paragraph id="H0EF9544AA6674538882A038A5CCB0B3A"><enum>(4)</enum><text>Enhancements to
the regulation and supervision of systemically important financial market
utilities and the conduct of systemically important payment, clearing, and
settlement activities by financial institutions are necessary—</text>
<subparagraph id="H90529570B7A04BA5BC75DB0B6FD32FBD"><enum>(A)</enum><text>to provide
consistency;</text>
</subparagraph><subparagraph id="H47B98AB17DB44CD3AE843B24B2360857"><enum>(B)</enum><text>to promote robust
risk management and safety and soundness;</text>
</subparagraph><subparagraph id="H1AC9C714D3D64CB6BCF8F1917A4B3320"><enum>(C)</enum><text>to reduce systemic
risks; and</text>
</subparagraph><subparagraph id="H299B6C1CEF7E4FD48D4377E07E4EFA71"><enum>(D)</enum><text>to support the
stability of the broader financial system.</text>
</subparagraph></paragraph></subsection><subsection id="H958784C3381947EBBA1D2A74258C7A9F"><enum>(b)</enum><header>Purpose</header><text>The
purpose of this title is to mitigate systemic risk in the financial system and
promote financial stability by—</text>
<paragraph id="HA8292C53B8314DBE92754A2A9BC2C47C"><enum>(1)</enum><text>authorizing the
Board of Governors to promote uniform standards for the—</text>
<subparagraph id="H222ED83EB0934D4EB1E329D479559957"><enum>(A)</enum><text>management of
risks by systemically important financial market utilities; and</text>
</subparagraph><subparagraph id="H984BE4519F4141ADAD856D57B99E660B"><enum>(B)</enum><text>conduct of
systemically important payment, clearing, and settlement activities by
financial institutions;</text>
</subparagraph></paragraph><paragraph id="HA2B893E8C3A34684944BFDE42D6207B6"><enum>(2)</enum><text>providing the
Board of Governors an enhanced role in the supervision of risk management
standards for systemically important financial market utilities;</text>
</paragraph><paragraph id="HB781C5E7685A4734992B3F5CF70E6C5D"><enum>(3)</enum><text>strengthening the
liquidity of systemically important financial market utilities; and</text>
</paragraph><paragraph id="HB3BAA4A8B20944BB8E1861727BB8FECD"><enum>(4)</enum><text>providing the
Board of Governors an enhanced role in the supervision of risk management
standards for systemically important payment, clearing, and settlement
activities by financial institutions.</text>
</paragraph></subsection></section><section id="H8FC69D88AAF24E38BF39BA2F3ABA68FC"><enum>803.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="HB6E1A2162EAA4EB5A77C5E53161CC749"><enum>(1)</enum><header>Appropriate
financial regulator</header><text>The term <quote>appropriate financial
regulator</quote> means—</text>
<subparagraph id="H677F1D6A76134CDBA04439ED7E7FB0E7"><enum>(A)</enum><text>the primary
financial regulatory agency, as defined in section 2 of this Act;</text>
</subparagraph><subparagraph id="H26478B507F22405C9F832D269170BE0D"><enum>(B)</enum><text>the National
Credit Union Administration, with respect to any insured credit union under the
Federal Credit Union Act (12 U.S.C. 1751 et seq.); and</text>
</subparagraph><subparagraph id="H163443379E9C41628727B5B25610760C"><enum>(C)</enum><text>the Board of
Governors, with respect to organizations operating under section 25A of the
Federal Reserve Act (12 U.S.C. 611), and any other financial institution
engaged in a designated activity.</text>
</subparagraph></paragraph><paragraph id="HB42A2CE0009B4953960C9B7C9B8C7AA5"><enum>(2)</enum><header>Designated
activity</header><text>The term <term>designated activity</term> means a
payment, clearing, or settlement activity that the Council has designated as
systemically important under section 804.</text>
</paragraph><paragraph id="HA232FC95AA0740339818E217ED245AAD"><enum>(3)</enum><header>Designated
clearing entity</header><text>The term <term>designated clearing entity</term>
means a designated financial market utility that is a derivatives clearing
organization registered under section 5b of the Commodity Exchange Act (7
U.S.C. 7a-1) or a clearing agency registered with the Securities and Exchange
Commission under section 17A of the Securities Exchange Act of 1934 (15 U.S.C.
78q-1).</text>
</paragraph><paragraph id="HD72C0142ACF341B09927417594E77E74"><enum>(4)</enum><header>Designated
financial market utility</header><text>The term <term>designated financial
market utility</term> means a financial market utility that the Council has
designated as systemically important under section 804.</text>
</paragraph><paragraph id="H5EB879444FF7438BAD08EB1A79CDFB27"><enum>(5)</enum><header>Financial
institution</header>
<subparagraph id="H14A4DEE4AB46443EA574FE897E0F4392"><enum>(A)</enum><header>In
general</header><text>The term <term>financial institution</term> means—</text>
<clause id="H43B15588B46E4FDF9ABEF58E41A1B8F7"><enum>(i)</enum><text>a
depository institution, as defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813);</text>
</clause><clause id="HC2E5D8A24E47402D889F8253434464AD"><enum>(ii)</enum><text>a
branch or agency of a foreign bank, as defined in section 1(b) of the
International Banking Act of 1978 (12 U.S.C. 3101);</text>
</clause><clause id="H61BA370925FA4342A60CEEE4512C8AA8"><enum>(iii)</enum><text>an
organization operating under section 25 or 25A of the Federal Reserve Act (12
U.S.C. 601–604a and 611 through 631);</text>
</clause><clause id="H268E8EFF7D14475997FF0CD04FE5E02E"><enum>(iv)</enum><text>a
credit union, as defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752);</text>
</clause><clause id="H40972807FF8A4F159EC9854D0808B60B"><enum>(v)</enum><text>a
broker or dealer, as defined in section 3 of the Securities Exchange Act of
1934 (15 U.S.C. 78c);</text>
</clause><clause id="HF1079DA56EA4471C9D86FE9C294D9623"><enum>(vi)</enum><text>an
investment company, as defined in section 3 of the Investment Company Act of
1940 (15 U.S.C. 80a–3);</text>
</clause><clause id="H0B4D5CC38DA947F3AF4716B5F1310282"><enum>(vii)</enum><text>an
insurance company, as defined in section 2 of the Investment Company Act of
1940 (15 U.S.C. 80a–2);</text>
</clause><clause id="HAE512DF415E443ECB7F7CDA8A95A7C79"><enum>(viii)</enum><text>an investment
adviser, as defined in section 202 of the Investment Advisers Act of 1940 (15
U.S.C. 80b–2);</text>
</clause><clause id="H60EF9E324337437088071CBEB80FEA71"><enum>(ix)</enum><text>a
futures commission merchant, commodity trading advisor, or commodity pool
operator, as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a);
and</text>
</clause><clause id="H8422104FEB1041F6A129E86539112F78"><enum>(x)</enum><text>any
company engaged in activities that are financial in nature or incidental to a
financial activity, as described in section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(k)).</text>
</clause></subparagraph><subparagraph id="H9DD0BE0590D246FAA8C966F5924EF5A2"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>financial institution</term> does not include designated contract
markets, registered futures associations, swap data repositories, and swap
execution facilities registered under the Commodity Exchange Act (7 U.S.C. 1 et
seq.), or national securities exchanges, national securities associations,
alternative trading systems, securities information processors solely with
respect to the activities of the entity as a securities information processor,
security-based swap data repositories, and swap execution facilities registered
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), or
designated clearing entities, provided that the exclusions in this subparagraph
apply only with respect to the activities that require the entity to be so
registered.</text>
</subparagraph></paragraph><paragraph id="H1285C8A08EAA4D7DB2F0166AE2F5769B"><enum>(6)</enum><header>Financial market
utility</header>
<subparagraph id="HF9EE9790350B48C4BD40DF3B645BEB20"><enum>(A)</enum><header>Inclusion</header><text>The
term <term>financial market utility</term> means any person that manages or
operates a multilateral system for the purpose of transferring, clearing, or
settling payments, securities, or other financial transactions among financial
institutions or between financial institutions and the person.</text>
</subparagraph><subparagraph id="H3661AF53CD6344D1AB7FF6FAE7AA9E1D"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>financial market utility</term> does not include—</text>
<clause id="HE41CAC101C4740DB91BCF96E3FA765F7"><enum>(i)</enum><text>designated
contract markets, registered futures associations, swap data repositories, and
swap execution facilities registered under the Commodity Exchange Act (7 U.S.C.
1 et seq.), or national securities exchanges, national securities associations,
alternative trading systems, security-based swap data repositories, and swap
execution facilities registered under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), solely by reason of their providing facilities for
comparison of data respecting the terms of settlement of securities or futures
transactions effected on such exchange or by means of any electronic system
operated or controlled by such entities, provided that the exclusions in this
clause apply only with respect to the activities that require the entity to be
so registered; and</text>
</clause><clause id="HFC5D8A21E4B44DC3A03424D83B1E02A4"><enum>(ii)</enum><text>any
broker, dealer, transfer agent, or investment company, or any futures
commission merchant, introducing broker, commodity trading advisor, or
commodity pool operator, solely by reason of functions performed by such
institution as part of brokerage, dealing, transfer agency, or investment
company activities, or solely by reason of acting on behalf of a financial
market utility or a participant therein in connection with the furnishing by
the financial market utility of services to its participants or the use of
services of the financial market utility by its participants, provided that
services performed by such institution do not constitute critical risk
management or processing functions of the financial market utility.</text>
</clause></subparagraph></paragraph><paragraph id="H2F222CE1D12B47ECA770397C0245BBC4"><enum>(7)</enum><header>Payment,
clearing, or settlement activity</header>
<subparagraph id="HA878112EB6434E9C881954277E8BD583"><enum>(A)</enum><header>In
general</header><text>The term <term>payment, clearing, or settlement
activity</term> means an activity carried out by 1 or more financial
institutions to facilitate the completion of financial transactions, but shall
not include any offer or sale of a security under the Securities Act of 1933
(15 U.S.C. 77a et seq.), or any quotation, order entry, negotiation, or other
pre-trade activity or execution activity.</text>
</subparagraph><subparagraph id="H80F958AE08CE45FDA3DE391C7C95FF76"><enum>(B)</enum><header>Financial
transaction</header><text>For the purposes of subparagraph (A), the term
<quote>financial transaction</quote> includes—</text>
<clause id="H9847B8988C4E48A3B938CDD4706C4421"><enum>(i)</enum><text>funds
transfers;</text>
</clause><clause id="HCEA4F823E0F345C3AAFD348102DAB296"><enum>(ii)</enum><text>securities
contracts;</text>
</clause><clause id="H907D2AF0D0B94860A60B404D49EBAE1F"><enum>(iii)</enum><text>contracts of
sale of a commodity for future delivery;</text>
</clause><clause id="HFAF5ABFD02E14D4998EC7A3A5101366A"><enum>(iv)</enum><text>forward
contracts;</text>
</clause><clause id="HEF526A6632BA426A81CFB246A333C7C4"><enum>(v)</enum><text>repurchase
agreements;</text>
</clause><clause id="HFC09B245C30340D6A47A94268028EC6B"><enum>(vi)</enum><text>swaps;</text>
</clause><clause id="HBFABC64E5B6F4B83BC72D9B14F28B5D7"><enum>(vii)</enum><text>security-based
swaps;</text>
</clause><clause id="H29A2F3FA09E44084BD617B0A34A43DED"><enum>(viii)</enum><text>swap
agreements;</text>
</clause><clause id="HD2F3BB58C7324893954A3E884222E933"><enum>(ix)</enum><text>security-based
swap agreements;</text>
</clause><clause id="HE6ABE3AA8F7D4916B6F8F55326ABDDD9"><enum>(x)</enum><text>foreign exchange
contracts;</text>
</clause><clause id="HFB756AE8D7B3413E8CD3743F6D61B2B4"><enum>(xi)</enum><text>financial
derivatives contracts; and</text>
</clause><clause id="H17759E61FB874866983E0E4A453A0323"><enum>(xii)</enum><text>any similar
transaction that the Council determines to be a financial transaction for
purposes of this title.</text>
</clause></subparagraph><subparagraph id="HCD6D84E7F4114FDFA4D906A1FD91BC0A"><enum>(C)</enum><header>Included
activities</header><text>When conducted with respect to a financial
transaction, payment, clearing, and settlement activities may include—</text>
<clause id="HD5B049F22D2E4832BCB5E0E2FF5FCA53"><enum>(i)</enum><text>the
calculation and communication of unsettled financial transactions between
counterparties;</text>
</clause><clause id="H2A5B24DF905E42418913087527D243B3"><enum>(ii)</enum><text>the
netting of transactions;</text>
</clause><clause id="H97E7A8208692472B81C505CA8A7E005E"><enum>(iii)</enum><text>provision and
maintenance of trade, contract, or instrument information;</text>
</clause><clause id="H7FF7F34CADE64C05BDEFA2E206351E67"><enum>(iv)</enum><text>the
management of risks and activities associated with continuing financial
transactions;</text>
</clause><clause id="H1CB9EDF6F3124B4CA08B1100723E4EE7"><enum>(v)</enum><text>transmittal and
storage of payment instructions;</text>
</clause><clause id="H8C929EBD8C13404B8905950F25D60A62"><enum>(vi)</enum><text>the
movement of funds;</text>
</clause><clause id="HE552727F09ED43249751DA5A360B6098"><enum>(vii)</enum><text>the final
settlement of financial transactions; and</text>
</clause><clause id="HFD9FE91F741F424B9BAD7EAFAD64AB33"><enum>(viii)</enum><text>other similar
functions that the Council may determine.</text>
</clause></subparagraph><subparagraph id="H38533F7E4FDA44AB9CA89FA4A3198D0D"><enum>(D)</enum><header>Exclusion</header><text>Payment,
clearing, and settlement activities shall not include public reporting of swap
transaction data under section 727 or 763(i) of the Wall Street Transparency
and Accountability Act of 2010.</text>
</subparagraph></paragraph><paragraph commented="no" id="H06584BE94369490BB5D25FE87CFD7102"><enum>(8)</enum><header>Supervisory
agency</header>
<subparagraph commented="no" id="HF2CBCE397BBC42749A23E4ED411062D5"><enum>(A)</enum><header>In
general</header><text>The term <term>Supervisory Agency</term> means the
Federal agency that has primary jurisdiction over a designated financial market
utility under Federal banking, securities, or commodity futures laws, as
follows:</text>
<clause commented="no" id="H3E13B2D5330C44DD96887EC9F531117C"><enum>(i)</enum><text>The Securities and
Exchange Commission, with respect to a designated financial market utility that
is a clearing agency registered with the Securities and Exchange
Commission.</text>
</clause><clause commented="no" id="H7B656FC1F5584520B86F30A28BB95032"><enum>(ii)</enum><text>The Commodity
Futures Trading Commission, with respect to a designated financial market
utility that is a derivatives clearing organization registered with the
Commodity Futures Trading Commission.</text>
</clause><clause commented="no" id="HBB8FC4FB0A964025854EF976BEA68A9D"><enum>(iii)</enum><text>The appropriate
Federal banking agency, with respect to a designated financial market utility
that is an institution described in section 3(q) of the Federal Deposit
Insurance Act.</text>
</clause><clause commented="no" id="HC1B5DB15BC1B4D2890D48D58478908BA"><enum>(iv)</enum><text>The Board of
Governors, with respect to a designated financial market utility that is
otherwise not subject to the jurisdiction of any agency listed in clauses (i),
(ii), and (iii).</text>
</clause></subparagraph><subparagraph commented="no" id="H6497B8EFAF314A46B374376BA1300BEE"><enum>(B)</enum><header>Multiple agency
jurisdiction</header><text>If a designated financial market utility is subject
to the jurisdictional supervision of more than 1 agency listed in subparagraph
(A), then such agencies should agree on 1 agency to act as the Supervisory
Agency, and if such agencies cannot agree on which agency has primary
jurisdiction, the Council shall decide which agency is the Supervisory Agency
for purposes of this title.</text>
</subparagraph></paragraph><paragraph id="H39A6C14DE2994872B2CD31DCF29ACE80"><enum>(9)</enum><header>Systemically
important and systemic importance</header><text>The terms <term>systemically
important</term> and <term>systemic importance</term> mean a situation where
the failure of or a disruption to the functioning of a financial market utility
or the conduct of a payment, clearing, or settlement activity could create, or
increase, the risk of significant liquidity or credit problems spreading among
financial institutions or markets and thereby threaten the stability of the
financial system of the United States.</text>
</paragraph></section><section id="HD9DB35BCED8E49FAAC049D1B68CF4436"><enum>804.</enum><header>Designation of
systemic importance</header>
<subsection id="HBFE951FD1B9C4626A6AFEC3C6E52D04B"><enum>(a)</enum><header>Designation</header>
<paragraph id="HF5FF9567271944FAAB09162E5A630A26"><enum>(1)</enum><header>Financial
Stability Oversight Council</header><text>The Council, on a nondelegable basis
and by a vote of not fewer than <fraction>2/3</fraction> of members then
serving, including an affirmative vote by the Chairperson of the Council, shall
designate those financial market utilities or payment, clearing, or settlement
activities that the Council determines are, or are likely to become,
systemically important.</text>
</paragraph><paragraph id="H3DF2D70571CF4AA7BC32609382A96D80"><enum>(2)</enum><header>Considerations</header><text>In
determining whether a financial market utility or payment, clearing, or
settlement activity is, or is likely to become, systemically important, the
Council shall take into consideration the following:</text>
<subparagraph id="H6CC4B72F39C34914AE2193F1ACC926FC"><enum>(A)</enum><text>The aggregate
monetary value of transactions processed by the financial market utility or
carried out through the payment, clearing, or settlement activity.</text>
</subparagraph><subparagraph id="HA610EBD613454AE1956E5A6BC698612A"><enum>(B)</enum><text>The aggregate
exposure of the financial market utility or a financial institution engaged in
payment, clearing, or settlement activities to its counterparties.</text>
</subparagraph><subparagraph id="HF810F42514534A05BCE07143A3800365"><enum>(C)</enum><text>The relationship,
interdependencies, or other interactions of the financial market utility or
payment, clearing, or settlement activity with other financial market utilities
or payment, clearing, or settlement activities.</text>
</subparagraph><subparagraph id="H6B1C81C084C741D0A2EE88199B55E0DF"><enum>(D)</enum><text>The effect that
the failure of or a disruption to the financial market utility or payment,
clearing, or settlement activity would have on critical markets, financial
institutions, or the broader financial system.</text>
</subparagraph><subparagraph id="H54D3275CC069415386432FBCBA3F6B7B"><enum>(E)</enum><text>Any other factors
that the Council deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H3136D1CEF95A47939075B05F72A1EA1B"><enum>(b)</enum><header>Rescission of
designation</header>
<paragraph id="HA92DA5BAC24D4208956AC540B95FB416"><enum>(1)</enum><header>In
general</header><text>The Council, on a nondelegable basis and by a vote of not
fewer than <fraction>2/3</fraction> of members then serving, including an
affirmative vote by the Chairperson of the Council, shall rescind a designation
of systemic importance for a designated financial market utility or designated
activity if the Council determines that the utility or activity no longer meets
the standards for systemic importance.</text>
</paragraph><paragraph id="H6D024C11D40E4AC490F73D8A60589F24"><enum>(2)</enum><header>Effect of
rescission</header><text>Upon rescission, the financial market utility or
financial institutions conducting the activity will no longer be subject to the
provisions of this title or any rules or orders prescribed under this
title.</text>
</paragraph></subsection><subsection id="H65A4BE1A9B5244B491650E4B5D731967"><enum>(c)</enum><header>Consultation and
notice and opportunity for hearing</header>
<paragraph id="H5CBF0F4BC8614EFC917A5D8C9DD001E9"><enum>(1)</enum><header>Consultation</header><text>Before
making any determination under subsection (a) or (b), the Council shall consult
with the relevant Supervisory Agency and the Board of Governors.</text>
</paragraph><paragraph id="H819509C2754E4A7D8DDC50B8E33CB316"><enum>(2)</enum><header>Advance notice
and opportunity for hearing</header>
<subparagraph id="H6D04306BC9124B87AD9182EACA3B64FD"><enum>(A)</enum><header>In
general</header><text>Before making any determination under subsection (a) or
(b), the Council shall provide the financial market utility or, in the case of
a payment, clearing, or settlement activity, financial institutions with
advance notice of the proposed determination of the Council.</text>
</subparagraph><subparagraph id="H5BFB9547BA994E6BA2CF5CAD57FA276D"><enum>(B)</enum><header>Notice in
Federal register</header><text>The Council shall provide such advance notice to
financial institutions by publishing a notice in the Federal Register.</text>
</subparagraph><subparagraph id="HAAC7D556BA40430189360B523BAE2C2F"><enum>(C)</enum><header>Requests for
hearing</header><text>Within 30 days from the date of any notice of the
proposed determination of the Council, the financial market utility or, in the
case of a payment, clearing, or settlement activity, a financial institution
engaged in the designated activity may request, in writing, an opportunity for
a written or oral hearing before the Council to demonstrate that the proposed
designation or rescission of designation is not supported by substantial
evidence.</text>
</subparagraph><subparagraph id="H767DDF9DB97C4EB5A60B66616BF8FD29"><enum>(D)</enum><header>Written
submissions</header><text>Upon receipt of a timely request, the Council shall
fix a time, not more than 30 days after receipt of the request, unless extended
at the request of the financial market utility or financial institution, and
place at which the financial market utility or financial institution may
appear, personally or through counsel, to submit written materials, or, at the
sole discretion of the Council, oral testimony or oral argument.</text>
</subparagraph></paragraph><paragraph id="HE2F5C26A3C24451AB531843AF36B642B"><enum>(3)</enum><header>Emergency
exception</header>
<subparagraph id="H36289227634F4B5B8F87476776642F6A"><enum>(A)</enum><header>Waiver or
modification by vote of the Council</header><text>The Council may waive or
modify the requirements of paragraph (2) if the Council determines, by an
affirmative vote of not fewer than <fraction>2/3</fraction> of members then
serving, including an affirmative vote by the Chairperson of the Council, that
the waiver or modification is necessary to prevent or mitigate an immediate
threat to the financial system posed by the financial market utility or the
payment, clearing, or settlement activity.</text>
</subparagraph><subparagraph id="H3488676468C54D0082D959441AC892AA"><enum>(B)</enum><header>Notice of waiver
or modification</header><text>The Council shall provide notice of the waiver or
modification to the financial market utility concerned or, in the case of a
payment, clearing, or settlement activity, to financial institutions, as soon
as practicable, which shall be no later than 24 hours after the waiver or
modification in the case of a financial market utility and 3 business days in
the case of financial institutions. The Council shall provide the notice to
financial institutions by posting a notice on the website of the Council and by
publishing a notice in the Federal Register.</text>
</subparagraph></paragraph></subsection><subsection id="H84FA885152874F45BEFAD816FCDE743B"><enum>(d)</enum><header>Notification of
final determination</header>
<paragraph id="H253FEA1DDC874DB18B15CDF2096BC6CD"><enum>(1)</enum><header>After
hearing</header><text>Within 60 days of any hearing under subsection (c)(2),
the Council shall notify the financial market utility or financial institutions
of the final determination of the Council in writing, which shall include
findings of fact upon which the determination of the Council is based.</text>
</paragraph><paragraph id="HEDF12F7B5F5C488E8827AD577CD4EB68"><enum>(2)</enum><header>When no hearing
requested</header><text>If the Council does not receive a timely request for a
hearing under subsection (c)(2), the Council shall notify the financial market
utility or financial institutions of the final determination of the Council in
writing not later than 30 days after the expiration of the date by which a
financial market utility or a financial institution could have requested a
hearing. All notices to financial institutions under this subsection shall be
published in the Federal Register.</text>
</paragraph></subsection><subsection id="H2CA9B2A722D043B78B3FDAA908E02199"><enum>(e)</enum><header>Extension of
time periods</header><text>The Council may extend the time periods established
in subsections (c) and (d) as the Council determines to be necessary or
appropriate.</text>
</subsection></section><section id="HA7AD179B5171414E85DAF48DB40AE9AB"><enum>805.</enum><header>Standards for
systemically important financial market utilities and payment, clearing, or
settlement activities</header>
<subsection id="H3209222892D24CE28AC8F086422C5DF3"><enum>(a)</enum><header>Authority to
prescribe standards</header>
<paragraph id="HD65FB0986D6A405CB567732EFDD54413"><enum>(1)</enum><header>Board of
Governors</header><text>Except as provided in paragraph (2), the Board of
Governors, by rule or order, and in consultation with the Council and the
Supervisory Agencies, shall prescribe risk management standards, taking into
consideration relevant international standards and existing prudential
requirements, governing—</text>
<subparagraph id="H93E2EE85CC14488B9123EC7F28A3B0B9"><enum>(A)</enum><text>the operations
related to the payment, clearing, and settlement activities of designated
financial market utilities; and</text>
</subparagraph><subparagraph id="H739F8EAFB0D34140ADAF63878815A2F3"><enum>(B)</enum><text>the conduct of
designated activities by financial institutions.</text>
</subparagraph></paragraph><paragraph id="HD484AF29803D4DA3A5189D661D716B30"><enum>(2)</enum><header>Special
procedures for designated clearing entities and designated activities of
certain financial institutions</header>
<subparagraph id="HF768DECCD7304178B186564437187B52"><enum>(A)</enum><header>CFTC and
Commission</header><text>The Commodity Futures Trading Commission and the
Commission may each prescribe regulations, in consultation with the Council and
the Board of Governors, containing risk management standards, taking into
consideration relevant international standards and existing prudential
requirements, for those designated clearing entities and financial institutions
engaged in designated activities for which each is the Supervisory Agency or
the appropriate financial regulator, governing—</text>
<clause id="HE05A920F708A4B6CB69276B464FF0CFD"><enum>(i)</enum><text>the
operations related to payment, clearing, and settlement activities of such
designated clearing entities; and</text>
</clause><clause id="H943D14096A254E0292A6620266D86398"><enum>(ii)</enum><text>the
conduct of designated activities by such financial institutions.</text>
</clause></subparagraph><subparagraph id="HCC5E9F0D2F8844FFB8D62968912EFA34"><enum>(B)</enum><header>Review and
determination</header><text>The Board of Governors may determine that existing
prudential requirements of the Commodity Futures Trading Commission, the
Commission, or both (including requirements prescribed pursuant to subparagraph
(A)) with respect to designated clearing entities and financial institutions
engaged in designated activities for which the Commission or the Commodity
Futures Trading Commission is the Supervisory Agency or the appropriate
financial regulator are insufficient to prevent or mitigate significant
liquidity, credit, operational, or other risks to the financial markets or to
the financial stability of the United States.</text>
</subparagraph><subparagraph id="H2456C417D5D145F2A657F884F8F34A9A"><enum>(C)</enum><header>Written
determination</header><text>Any determination by the Board of Governors under
subparagraph (B) shall be provided in writing to the Commodity Futures Trading
Commission or the Commission, as applicable, and the Council, and shall explain
why existing prudential requirements, considered as a whole, are insufficient
to ensure that the operations and activities of the designated clearing
entities or the activities of financial institutions described in subparagraph
(B) will not pose significant liquidity, credit, operational, or other risks to
the financial markets or to the financial stability of the United States. The
Board of Governors’ determination shall contain a detailed analysis supporting
its findings and identify the specific prudential requirements that are
insufficient.</text>
</subparagraph><subparagraph id="HEF527D7B420845B3BB755A956BA94BBE"><enum>(D)</enum><header>CFTC and
commission response</header><text>The Commodity Futures Trading Commission or
the Commission, as applicable, shall within 60 days either object to the Board
of Governors' determination with a detailed analysis as to why existing
prudential requirements are sufficient, or submit an explanation to the Council
and the Board of Governors describing the actions to be taken in response to
the Board of Governors' determination.</text>
</subparagraph><subparagraph id="H654B46E668054C43AC5386A234A8CF20"><enum>(E)</enum><header>Authorization</header><text>Upon
an affirmative vote by not fewer than 2/3 of members then serving on the
Council, the Council shall either find that the response submitted under
subparagraph (D) is sufficient, or require the Commodity Futures Trading
Commission, or the Commission, as applicable, to prescribe such risk management
standards as the Council determines is necessary to address the specific
prudential requirements that are determined to be insufficient.”</text>
</subparagraph></paragraph></subsection><subsection id="HE55A9D40CD5C47A9ABD5249FCFFD31DA"><enum>(b)</enum><header>Objectives and
principles</header><text>The objectives and principles for the risk management
standards prescribed under subsection (a) shall be to—</text>
<paragraph id="H11C31169A8294BCF849C4DCBB97C9123"><enum>(1)</enum><text>promote robust
risk management;</text>
</paragraph><paragraph id="H247EED7E08CC47A296F0F0CB70EA4C7F"><enum>(2)</enum><text>promote safety and
soundness;</text>
</paragraph><paragraph id="H7324C586D7714956B3038CAF358F6FF9"><enum>(3)</enum><text>reduce systemic
risks; and</text>
</paragraph><paragraph id="H8031AAF031D84713838D12EBC1C7CF32"><enum>(4)</enum><text>support the
stability of the broader financial system.</text>
</paragraph></subsection><subsection id="H8C6BB1E50E29423D8E0D6F2478800915"><enum>(c)</enum><header>Scope</header><text>The
standards prescribed under subsection (a) may address areas such as—</text>
<paragraph id="HDDF1C800A19A425CADB8E37F9ED70B09"><enum>(1)</enum><text>risk management
policies and procedures;</text>
</paragraph><paragraph id="H53D4F473D01C4111A4BFB13A35C2F3C7"><enum>(2)</enum><text>margin and
collateral requirements;</text>
</paragraph><paragraph id="H9F263DA7F6694853936F867A08E15D2E"><enum>(3)</enum><text>participant or
counterparty default policies and procedures;</text>
</paragraph><paragraph id="H71C3E8CB20184EDBB174F31EA563098B"><enum>(4)</enum><text>the ability to
complete timely clearing and settlement of financial transactions;</text>
</paragraph><paragraph id="HE60DC425E89141C4970FB048DBC420B1"><enum>(5)</enum><text>capital and
financial resource requirements for designated financial market utilities;
and</text>
</paragraph><paragraph id="HB4306AEEE91A453097E5032A94F9DAB1"><enum>(6)</enum><text>other areas that
are necessary to achieve the objectives and principles in subsection
(b).</text>
</paragraph></subsection><subsection id="HD279DE4EDF154601A22CA5036EAD164A"><enum>(d)</enum><header>Limitation on
scope</header><text>Except as provided in subsections (e) and (f) of section
807, nothing in this title shall be construed to permit the Council or the
Board of Governors to take any action or exercise any authority granted to the
Commodity Futures Trading Commission under section 2(h) of the Commodity
Exchange Act or the Securities and Exchange Commission under section 3C(a) of
the Securities Exchange Act of 1934, including—</text>
<paragraph id="HD27BB4C75FDD4DF185A28EC572F954CC"><enum>(1)</enum><text>the approval of,
disapproval of, or stay of the clearing requirement for any group, category,
type, or class of swaps that a designated clearing entity may accept for
clearing;</text>
</paragraph><paragraph id="H6A012F7E44244BCAA7DE946A384318AD"><enum>(2)</enum><text>the determination
that any group, category, type, or class of swaps shall be subject to the
mandatory clearing requirement of section 2(h)(1) of the Commodity Exchange Act
or section 3C(a)(1) of the Securities Exchange Act of 1934;</text>
</paragraph><paragraph id="H0E97515D2810453A8724CD46639CE39B"><enum>(3)</enum><text>the determination
that any person is exempt from the mandatory clearing requirement of section
2(h)(1) of the Commodity Exchange Act or section 3C(a)(1) of the Securities
Exchange Act of 1934; or</text>
</paragraph><paragraph id="H91A57A137256487EAD1B1195A121A571"><enum>(4)</enum><text>any authority
granted to the Commodity Futures Trading Commission or the Securities and
Exchange Commission with respect to transaction reporting or trade
execution.</text>
</paragraph></subsection><subsection id="HA5A64A45E5EF404A8BEBF799E35DD8A5"><enum>(e)</enum><header>Threshold
level</header><text>The standards prescribed under subsection (a) governing the
conduct of designated activities by financial institutions shall, where
appropriate, establish a threshold as to the level or significance of
engagement in the activity at which a financial institution will become subject
to the standards with respect to that activity.</text>
</subsection><subsection id="H66DC72D9AD0D4E31BEB6B09685B90280"><enum>(f)</enum><header>Compliance
required</header><text>Designated financial market utilities and financial
institutions subject to the standards prescribed under subsection (a) for a
designated activity shall conduct their operations in compliance with the
applicable risk management standards.</text>
</subsection></section><section id="H1248CD068EAF4B6D8B53930EA1678E50"><enum>806.</enum><header>Operations of
designated financial market utilities</header>
<subsection id="HA0E45ED5AB9540D48AB3CC8209F896F6"><enum>(a)</enum><header>Federal reserve
account and services</header><text>The Board of Governors may authorize a
Federal Reserve Bank to establish and maintain an account for a designated
financial market utility and provide the services listed in section 11A(b) of
the Federal Reserve Act (12 U.S.C. 248a(b)) and deposit accounts under the
first undesignated paragraph of section 13 of the Federal Reserve Act (12
U.S.C. 342) to the designated financial market utility that the Federal Reserve
Bank is authorized under the Federal Reserve Act to provide to a depository
institution, subject to any applicable rules, orders, standards, or guidelines
prescribed by the Board of Governors.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H62E77F204C20421686295749911F4D30"><enum>(b)</enum><header display-inline="yes-display-inline">Advances</header><text display-inline="yes-display-inline">The Board of Governors may authorize a
Federal Reserve bank under section 10B of the Federal Reserve Act (12 U.S.C.
347b) to provide to a designated financial market utility discount and
borrowing privileges only in unusual or exigent circumstances, upon the
affirmative vote of a majority of the Board of Governors then serving (or such
other number in accordance with the provisions of section 11(r)(2) of the
Federal Reserve Act (12 U.S.C. 248(r)(2)) after consultation with the
Secretary, and upon a showing by the designated financial market utility that
it is unable to secure adequate credit accommodations from other banking
institutions. All such discounts and borrowing privileges shall be subject to
such other limitations, restrictions, and regulations as the Board of Governors
may prescribe. Access to discount and borrowing privileges under section 10B of
the Federal Reserve Act as authorized in this section does not require a
designated financial market utility to be or become a bank or bank holding
company.</text>
</subsection><subsection id="H115EF1894A1542ECBAE4672BED2AD528"><enum>(c)</enum><header>Earnings on
Federal reserve balances</header><text>A Federal Reserve Bank may pay earnings
on balances maintained by or on behalf of a designated financial market utility
in the same manner and to the same extent as the Federal Reserve Bank may pay
earnings to a depository institution under the Federal Reserve Act, subject to
any applicable rules, orders, standards, or guidelines prescribed by the Board
of Governors.</text>
</subsection><subsection id="HD6814311B7014722A50293EE3A942177"><enum>(d)</enum><header>Reserve
requirements</header><text>The Board of Governors may exempt a designated
financial market utility from, or modify any, reserve requirements under
section 19 of the Federal Reserve Act (12 U.S.C. 461) applicable to a
designated financial market utility.</text>
</subsection><subsection id="H97040F2DFBBF4025849F946CB08542D2"><enum>(e)</enum><header>Changes to
rules, procedures, or operations</header>
<paragraph id="H0CF5EF2ED5424F9D84F7D825DAE3DE19"><enum>(1)</enum><header>Advance
notice</header>
<subparagraph id="HE8525A3FC761492D9F247A1830781E70"><enum>(A)</enum><header>Advance notice
of proposed changes required</header><text>A designated financial market
utility shall provide notice 60 days in advance notice to its Supervisory
Agency of any proposed change to its rules, procedures, or operations that
could, as defined in rules of each Supervisory Agency, materially affect, the
nature or level of risks presented by the designated financial market
utility.</text>
</subparagraph><subparagraph id="H7C0E24EA82E44A38BCB2417184F7B7B4"><enum>(B)</enum><header>Terms and
standards prescribed by the Supervisory Agencies</header><text>Each Supervisory
Agency, in consultation with the Board of Governors, shall prescribe
regulations that define and describe the standards for determining when notice
is required to be provided under subparagraph (A).</text>
</subparagraph><subparagraph id="H9228D8728DE94D3EAE12C45B750A7335"><enum>(C)</enum><header>Contents of
notice</header><text>The notice of a proposed change shall describe—</text>
<clause id="H242087019AB54CB7999A49F51C40FC19"><enum>(i)</enum><text>the
nature of the change and expected effects on risks to the designated financial
market utility, its participants, or the market; and</text>
</clause><clause id="HB830029BE46946C8BA63DED49840F8FD"><enum>(ii)</enum><text>how
the designated financial market utility plans to manage any identified
risks.</text>
</clause></subparagraph><subparagraph id="H35C5D2D5EDFE47DE919F8ACF5303321C"><enum>(D)</enum><header>Additional
information</header><text>The Supervisory Agency may require a designated
financial market utility to provide any information necessary to assess the
effect the proposed change would have on the nature or level of risks
associated with the designated financial market utility's payment, clearing, or
settlement activities and the sufficiency of any proposed risk management
techniques.</text>
</subparagraph><subparagraph id="HE381E25BA7D345F596519641A4918357"><enum>(E)</enum><header>Notice of
objection</header><text>The Supervisory Agency shall notify the designated
financial market utility of any objection regarding the proposed change within
60 days from the later of—</text>
<clause id="H2BFE4411A5504CE4BABEF985C1FB018B"><enum>(i)</enum><text>the
date that the notice of the proposed change is received; or</text>
</clause><clause id="HF9EE48C15F2441CBB2419ED7DA7F1CDA"><enum>(ii)</enum><text>the
date any further information requested for consideration of the notice is
received.</text>
</clause></subparagraph><subparagraph id="H08CBE58DC38E45049AFC1D0AD7E32A35"><enum>(F)</enum><header>Change not
allowed if objection</header><text>A designated financial market utility shall
not implement a change to which the Supervisory Agency has an objection.</text>
</subparagraph><subparagraph id="H3298B32CFC6248388DF55C58C89FBF95"><enum>(G)</enum><header>Change allowed
if no objection within 60 days</header><text>A designated financial market
utility may implement a change if it has not received an objection to the
proposed change within 60 days of the later of—</text>
<clause id="H0671EC5D09364500864B25958988FFDD"><enum>(i)</enum><text>the
date that the Supervisory Agency receives the notice of proposed change;
or</text>
</clause><clause id="H0798FB9E1A034166B6FCA80039ED9648"><enum>(ii)</enum><text>the
date the Supervisory Agency receives any further information it requests for
consideration of the notice.</text>
</clause></subparagraph><subparagraph id="HBEE13668C08E49418365A3A5F6DD4B3A"><enum>(H)</enum><header>Review extension
for novel or complex issues</header><text>The Supervisory Agency may, during
the 60-day review period, extend the review period for an additional 60 days
for proposed changes that raise novel or complex issues, subject to the
Supervisory Agency providing the designated financial market utility with
prompt written notice of the extension. Any extension under this subparagraph
will extend the time periods under subparagraphs (E) and (G).</text>
</subparagraph><subparagraph id="H9F4C2E504AC448598A5FFEF801A6DE99"><enum>(I)</enum><header>Change allowed
earlier if notified of no objection</header><text>A designated financial market
utility may implement a change in less than 60 days from the date of receipt of
the notice of proposed change by the Supervisory Agency, or the date the
Supervisory Agency receives any further information it requested, if the
Supervisory Agency notifies the designated financial market utility in writing
that it does not object to the proposed change and authorizes the designated
financial market utility to implement the change on an earlier date, subject to
any conditions imposed by the Supervisory Agency.</text>
</subparagraph></paragraph><paragraph id="HA19466701C674FC6BA8D6D71BD3CCAB6"><enum>(2)</enum><header>Emergency
changes</header>
<subparagraph id="H72AAEB4A63104D7D8E1D33BC0D8A29F6"><enum>(A)</enum><header>In
general</header><text>A designated financial market utility may implement a
change that would otherwise require advance notice under this subsection if it
determines that—</text>
<clause id="H8EF1DC39BE6F4C009F1D07FB770DEF57"><enum>(i)</enum><text>an
emergency exists; and</text>
</clause><clause id="HD6824A984BEB46249ED83BBD2E560397"><enum>(ii)</enum><text>immediate
implementation of the change is necessary for the designated financial market
utility to continue to provide its services in a safe and sound manner.</text>
</clause></subparagraph><subparagraph id="HCE176DEC85CF455887798376D5782207"><enum>(B)</enum><header>Notice required
within 24 hours</header><text>The designated financial market utility shall
provide notice of any such emergency change to its Supervisory Agency, as soon
as practicable, which shall be no later than 24 hours after implementation of
the change.</text>
</subparagraph><subparagraph id="HB374AC16BB7B4187B4EA74DA2FF38E19"><enum>(C)</enum><header>Contents of
emergency notice</header><text>In addition to the information required for
changes requiring advance notice, the notice of an emergency change shall
describe—</text>
<clause id="H7AA51348E53D4F5D86DD23D07EBFAD56"><enum>(i)</enum><text>the
nature of the emergency; and</text>
</clause><clause id="H75279C766F214E0DA14ED7521AEAF965"><enum>(ii)</enum><text>the
reason the change was necessary for the designated financial market utility to
continue to provide its services in a safe and sound manner.</text>
</clause></subparagraph><subparagraph id="HA49AFBF51FDE40888B87149D82C8EE0A"><enum>(D)</enum><header>Modification or
rescission of change may be required</header><text>The Supervisory Agency may
require modification or rescission of the change if it finds that the change is
not consistent with the purposes of this Act or any applicable rules, orders,
or standards prescribed under section 805(a).</text>
</subparagraph></paragraph><paragraph id="H9757BD1C2F1E4848A5A66585B22D037D"><enum>(3)</enum><header>Copying the
Board of Governors</header><text>The Supervisory Agency shall provide the Board
of Governors concurrently with a complete copy of any notice, request, or other
information it issues, submits, or receives under this subsection.</text>
</paragraph><paragraph id="HFD69FA8805F54C3EA063C14594615A6D"><enum>(4)</enum><header>Consultation
with Board of Governors</header><text>Before taking any action on, or
completing its review of, a change proposed by a designated financial market
utility, the Supervisory Agency shall consult with the Board of
Governors.</text>
</paragraph></subsection></section><section id="H60D7AEDDD2E54FB39C1998BEC4CC37EC"><enum>807.</enum><header>Examination of
and enforcement actions against designated financial market utilities</header>
<subsection id="H08C5984BC2E744F5959FE4F7CBA6BC82"><enum>(a)</enum><header>Examination</header><text>Notwithstanding
any other provision of law and subject to subsection (d), the Supervisory
Agency shall conduct examinations of a designated financial market utility at
least once annually in order to determine the following:</text>
<paragraph id="HA6392F8BADB84EC9AAE6620DA6B04D3B"><enum>(1)</enum><text>The nature of the
operations of, and the risks borne by, the designated financial market
utility.</text>
</paragraph><paragraph id="H080B4A5A8FA74F0AA069AC9B7FB9F803"><enum>(2)</enum><text>The financial and
operational risks presented by the designated financial market utility to
financial institutions, critical markets, or the broader financial
system.</text>
</paragraph><paragraph id="HF3519BEF36784219ADCA3E935FF1A368"><enum>(3)</enum><text>The resources and
capabilities of the designated financial market utility to monitor and control
such risks.</text>
</paragraph><paragraph id="H20C4C215A1AD4176A7B4BB50A097DD8D"><enum>(4)</enum><text>The safety and
soundness of the designated financial market utility.</text>
</paragraph><paragraph id="H00B37C5CE2134ACCA05E6084CEFDF2D4"><enum>(5)</enum><text>The designated
financial market utility’s compliance with—</text>
<subparagraph id="H11C6604107A44F74990E6419F054064B"><enum>(A)</enum><text>this title;
and</text>
</subparagraph><subparagraph id="H10B78A310EC24DA88DF3B80850777570"><enum>(B)</enum><text>the rules and
orders prescribed under this title.</text>
</subparagraph></paragraph></subsection><subsection id="H0695FF36A1F74AAEB95D3502D1B4DE7E"><enum>(b)</enum><header>Service
providers</header><text>Whenever a service integral to the operation of a
designated financial market utility is performed for the designated financial
market utility by another entity, whether an affiliate or non-affiliate and
whether on or off the premises of the designated financial market utility, the
Supervisory Agency may examine whether the provision of that service is in
compliance with applicable law, rules, orders, and standards to the same extent
as if the designated financial market utility were performing the service on
its own premises.</text>
</subsection><subsection id="HE0A4A40128934F7FBCC513E363541CFA"><enum>(c)</enum><header>Enforcement</header><text>For
purposes of enforcing the provisions of this title, a designated financial
market utility shall be subject to, and the appropriate Supervisory Agency
shall have authority under the provisions of subsections (b) through (n) of
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the same
manner and to the same extent as if the designated financial market utility was
an insured depository institution and the Supervisory Agency was the
appropriate Federal banking agency for such insured depository
institution.</text>
</subsection><subsection id="HCB487785E5A24C47987A83D834214735"><enum>(d)</enum><header>Board of
Governors involvement in examinations</header>
<paragraph id="H24ADA06E7E4D4C50B487871DC09107DE"><enum>(1)</enum><header>Board of
Governors consultation on examination planning</header><text>The Supervisory
Agency shall consult annually with the Board of Governors regarding the scope
and methodology of any examination conducted under subsections (a) and (b). The
Supervisory Agency shall lead all examinations conducted under subsections (a)
and (b)</text>
</paragraph><paragraph id="HDFC30CFF32AD41648D7DCD094219548D"><enum>(2)</enum><header>Board of
Governors participation in examination</header><text>The Board of Governors
may, in its discretion, participate in any examination led by a Supervisory
Agency and conducted under subsections (a) and (b).</text>
</paragraph></subsection><subsection id="H3182FC2D0BA34BF4B230F1D2E3DF7845"><enum>(e)</enum><header>Board of
Governors enforcement recommendations</header>
<paragraph id="HE10CC30096574EDC918DB873FEE56522"><enum>(1)</enum><header>Recommendation</header><text>The
Board of Governors may, after consulting with the Council and the Supervisory
Agency, at any time recommend to the Supervisory Agency that such agency take
enforcement action against a designated financial market utility in order to
prevent or mitigate significant liquidity, credit, operational, or other risks
to the financial markets or to the financial stability of the United States.
Any such recommendation for enforcement action shall provide a detailed
analysis supporting the recommendation of the Board of Governors.</text>
</paragraph><paragraph id="H4F5C4A8E519345ACAD8A7B9CE3833A44"><enum>(2)</enum><header>Consideration</header><text>The
Supervisory Agency shall consider the recommendation of the Board of Governors
and submit a response to the Board of Governors within 60 days.</text>
</paragraph><paragraph id="H2AE0B2DBE4704A47A7392F2FFCD4B8B6"><enum>(3)</enum><header>Binding
arbitration</header><text>If the Supervisory Agency rejects, in whole or in
part, the recommendation of the Board of Governors, the Board of Governors may
refer the recommendation to the Council for a binding decision on whether an
enforcement action is warranted.</text>
</paragraph><paragraph id="H6C0FE99DE5124D8EB9E940926B959592"><enum>(4)</enum><header>Enforcement
action</header><text>Upon an affirmative vote by a majority of the Council in
favor of the Board of Governors’ recommendation under paragraph (3), the
Council may require the Supervisory Agency to—</text>
<subparagraph id="H87036B0ADB8443B1897FB873A76A1444"><enum>(A)</enum><text>exercise the
enforcement authority referenced in subsection (c); and</text>
</subparagraph><subparagraph id="H64F62C45C453418294BF82D9719D23EB"><enum>(B)</enum><text>take enforcement
action against the designated financial market utility.</text>
</subparagraph></paragraph></subsection><subsection id="H8998910F546C435588E6B346A74C6267"><enum>(f)</enum><header>Emergency
enforcement actions by the Board of Governors</header>
<paragraph id="HC08A3A14BD7E4C6BB0839EA911D86231"><enum>(1)</enum><header>Imminent risk of
substantial harm</header><text>The Board of Governors may, after consulting
with the Supervisory Agency and upon an affirmative vote by a majority the
Council, take enforcement action against a designated financial market utility
if the Board of Governors has reasonable cause to conclude that—</text>
<subparagraph id="H705FE0D6CE1340CBBB93B11F6604844C"><enum>(A)</enum><text>either—</text>
<clause id="H2D8DF90D608E4E60BB9BC918737BBB90"><enum>(i)</enum><text>an
action engaged in, or contemplated by, a designated financial market utility
(including any change proposed by the designated financial market utility to
its rules, procedures, or operations that would otherwise be subject to section
806(e)) poses an imminent risk of substantial harm to financial institutions,
critical markets, or the broader financial system of the United States;
or</text>
</clause><clause id="H140F3F68AA6B40F8939715A9CE8E7ABA"><enum>(ii)</enum><text>the
condition of a designated financial market utility poses an imminent risk of
substantial harm to financial institutions, critical markets, or the broader
financial system; and</text>
</clause></subparagraph><subparagraph id="H2FD6C676EC774DD881753855A6A978EE"><enum>(B)</enum><text>the imminent risk
of substantial harm precludes the Board of Governors’ use of the procedures in
subsection (e).</text>
</subparagraph></paragraph><paragraph id="H8DE295F6B3D54923B8B52622063C9D26"><enum>(2)</enum><header>Enforcement
authority</header><text>For purposes of taking enforcement action under
paragraph (1), a designated financial market utility shall be subject to, and
the Board of Governors shall have authority under the provisions of subsections
(b) through (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818) in the same manner and to the same extent as if the designated financial
market utility was an insured depository institution and the Board of Governors
was the appropriate Federal banking agency for such insured depository
institution.</text>
</paragraph></subsection></section><section id="HC8F012FCA6114A41A51A401E0BE76BB3"><enum>808.</enum><header>Examination of
and enforcement actions against financial institutions subject to standards for
designated activities</header>
<subsection id="H3CFB2D8AC38C4FC5A5CF023FBB71831C"><enum>(a)</enum><header>Examination</header><text>The
appropriate financial regulator is authorized to examine a financial
institution subject to the standards prescribed under section 805(a) for a
designated activity in order to determine the following:</text>
<paragraph id="H78F69277FF58448580CAF6FB6AB15D95"><enum>(1)</enum><text>The nature and
scope of the designated activities engaged in by the financial
institution.</text>
</paragraph><paragraph id="HBE5BCFB55A93433BB4C8A4B0B015B2DA"><enum>(2)</enum><text>The financial and
operational risks the designated activities engaged in by the financial
institution may pose to the safety and soundness of the financial
institution.</text>
</paragraph><paragraph id="H63F1FC28E8004B7F88F6C9EE8CC6AEC3"><enum>(3)</enum><text>The financial and
operational risks the designated activities engaged in by the financial
institution may pose to other financial institutions, critical markets, or the
broader financial system.</text>
</paragraph><paragraph id="HEEEC5F19117240DEA410208DC3556D3C"><enum>(4)</enum><text>The resources
available to and the capabilities of the financial institution to monitor and
control the risks described in paragraphs (2) and (3).</text>
</paragraph><paragraph id="H9A9C8E7E7BE64FFDB11EC712409D66BB"><enum>(5)</enum><text>The financial
institution’s compliance with this title and the rules and orders prescribed
under section 805(a).</text>
</paragraph></subsection><subsection id="HED08CFEE4E1047C1B45C4A235A8F3844"><enum>(b)</enum><header>Enforcement</header><text>For
purposes of enforcing the provisions of this title, and the rules and orders
prescribed under this section, a financial institution subject to the standards
prescribed under section 805(a) for a designated activity shall be subject to,
and the appropriate financial regulator shall have authority under the
provisions of subsections (b) through (n) of section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818) in the same manner and to the same extent as if
the financial institution was an insured depository institution and the
appropriate financial regulator was the appropriate Federal banking agency for
such insured depository institution.</text>
</subsection><subsection id="H20D772A0273A48EDA9800080AC158737"><enum>(c)</enum><header>Technical
assistance</header><text>The Board of Governors shall consult with and provide
such technical assistance as may be required by the appropriate financial
regulators to ensure that the rules and orders prescribed under this title are
interpreted and applied in as consistent and uniform a manner as
practicable.</text>
</subsection><subsection id="H46A56ACF6C734B8DA8F9CB7FD67A1148"><enum>(d)</enum><header>Delegation</header>
<paragraph id="HEF2A2AC8EEF24EEABBC8159C44B65D86"><enum>(1)</enum><header>Examination</header>
<subparagraph id="HEB4E85D98096481DB4F5CF3CC41074C7"><enum>(A)</enum><header>Request to Board
of Governors</header><text>The appropriate financial regulator may request the
Board of Governors to conduct or participate in an examination of a financial
institution subject to the standards prescribed under section 805(a) for a
designated activity in order to assess the compliance of such financial
institution with—</text>
<clause id="H17283C8F17F94AD6BEED66DFC5CFBAFC"><enum>(i)</enum><text>this
title; or</text>
</clause><clause id="H393934D61A254F9694D7FA13043F4CD4"><enum>(ii)</enum><text>the
rules or orders prescribed under this title.</text>
</clause></subparagraph><subparagraph id="HD9F53EE3965B488687DC0E8B20354DA1"><enum>(B)</enum><header>Examination by
Board of Governors</header><text>Upon receipt of an appropriate written
request, the Board of Governors will conduct the examination under such terms
and conditions to which the Board of Governors and the appropriate financial
regulator mutually agree.</text>
</subparagraph></paragraph><paragraph id="H06935E8240C1428691F0E4FE5BFC412E"><enum>(2)</enum><header>Enforcement</header>
<subparagraph id="H02B773E047E741B383314B617D1AAC3F"><enum>(A)</enum><header>Request to Board
of Governors</header><text>The appropriate financial regulator may request the
Board of Governors to enforce this title or the rules or orders prescribed
under this title against a financial institution that is subject to the
standards prescribed under section 805(a) for a designated activity.</text>
</subparagraph><subparagraph id="H63C8015F7C0A460BAF8698D151E5A51A"><enum>(B)</enum><header>Enforcement by
Board of Governors</header><text>Upon receipt of an appropriate written
request, the Board of Governors shall determine whether an enforcement action
is warranted, and, if so, it shall enforce compliance with this title or the
rules or orders prescribed under this title and, if so, the financial
institution shall be subject to, and the Board of Governors shall have
authority under the provisions of subsections (b) through (n) of section 8 of
the Federal Deposit Insurance Act (12 U.S.C. 1818) in the same manner and to
the same extent as if the financial institution was an insured depository
institution and the Board of Governors was the appropriate Federal banking
agency for such insured depository institution.</text>
</subparagraph></paragraph></subsection><subsection id="HFE1EF76BA7CE421F9BD1F1A799322E51"><enum>(e)</enum><header>Back-up
authority of the Board of Governors</header>
<paragraph id="HD767EC1857C24BA995D25B9EECFE59BD"><enum>(1)</enum><header>Examination and
enforcement</header><text>Notwithstanding any other provision of law, the Board
of Governors may—</text>
<subparagraph id="H381A29E612FB4CA9A9EA0F61AC8AE19C"><enum>(A)</enum><text>conduct an
examination of the type described in subsection (a) of any financial
institution that is subject to the standards prescribed under section 805(a)
for a designated activity; and</text>
</subparagraph><subparagraph id="H0528F57EB16745B4BFF8DB148E4A5CFA"><enum>(B)</enum><text>enforce the
provisions of this title or any rules or orders prescribed under this title
against any financial institution that is subject to the standards prescribed
under section 805(a) for a designated activity.</text>
</subparagraph></paragraph><paragraph id="H080E7FD1A3A7454C916A35A9FA1D5800"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H060BE04C4927468D951D89E968D053A6"><enum>(A)</enum><header>Examination</header><text>The
Board of Governors may exercise the authority described in paragraph (1)(A)
only if the Board of Governors has—</text>
<clause id="H00B5F492BAC842DCB94F5364B78E223B"><enum>(i)</enum><text>reasonable cause
to believe that a financial institution is not in compliance with this title or
the rules or orders prescribed under this title with respect to a designated
activity;</text>
</clause><clause id="H2DD43843E42E43C49090982F77F5575B"><enum>(ii)</enum><text>notified, in
writing, the appropriate financial regulator and the Council of its belief
under clause (i) with supporting documentation included;</text>
</clause><clause id="HEEED0C8F58B04B6EBBE4B854AB9E0340"><enum>(iii)</enum><text>requested the
appropriate financial regulator to conduct a prompt examination of the
financial institution;</text>
</clause><clause id="H9F796EA5CE1E41938ACA2F5034899D85"><enum>(iv)</enum><text>either—</text>
<subclause id="H2C2A76B0FB9B413297D40708E49628F2"><enum>(I)</enum><text>not been afforded
a reasonable opportunity to participate in an examination of the financial
institution by the appropriate financial regulator within 30 days after the
date of the Board’s notification under clause (ii); or</text>
</subclause><subclause id="HA897601E5B34484FB9C9F100DAAD23AE"><enum>(II)</enum><text>reasonable cause
to believe that the financial institution’s noncompliance with this title or
the rules or orders prescribed under this title poses a substantial risk to
other financial institutions, critical markets, or the broader financial
system, subject to the Board of Governors affording the appropriate financial
regulator a reasonable opportunity to participate in the examination;
and</text>
</subclause></clause><clause id="H6ADC42874C98426FBE75F787CBFEFF78"><enum>(v)</enum><text>obtained the
approval of the Council upon an affirmative vote by a majority of the
Council.</text>
</clause></subparagraph><subparagraph id="H5DCE2BAA118F479D8A11E9C4922D33DE"><enum>(B)</enum><header>Enforcement</header><text>The
Board of Governors may exercise the authority described in paragraph (1)(B)
only if the Board of Governors has—</text>
<clause id="H9A900FAF1FB44A9D910734778D90499F"><enum>(i)</enum><text>reasonable cause
to believe that a financial institution is not in compliance with this title or
the rules or orders prescribed under this title with respect to a designated
activity;</text>
</clause><clause id="HD039171FDD28472DB16B1C22B3C4332B"><enum>(ii)</enum><text>notified, in
writing, the appropriate financial regulator and the Council of its belief
under clause (i) with supporting documentation included and with a
recommendation that the appropriate financial regulator take 1 or more specific
enforcement actions against the financial institution;</text>
</clause><clause id="HBC6FF8AFB4C043D4AE561AB4DC723122"><enum>(iii)</enum><text>either—</text>
<subclause id="HC968176B79BC4A9C81C1884B5F16CDA8"><enum>(I)</enum><text>not been notified,
in writing, by the appropriate financial regulator of the commencement of an
enforcement action recommended by the Board of Governors against the financial
institution within 60 days from the date of the notification under clause (ii);
or</text>
</subclause><subclause id="HB7B6A21781CB490E8125898D88BD771A"><enum>(II)</enum><text>reasonable cause
to believe that the financial institution’s noncompliance with this title or
the rules or orders prescribed under this title poses significant liquidity,
credit, operational, or other risks to the financial markets or to the
financial stability of the United States, subject to the Board of Governors
notifying the appropriate financial regulator of the Board’s enforcement
action; and</text>
</subclause></clause><clause id="H234666CF70BC4327A989FADF8072C2EE"><enum>(iv)</enum><text>obtained the
approval of the Council upon an affirmative vote by a majority of the
Council.</text>
</clause></subparagraph></paragraph><paragraph id="H1547C3D1261D4326992B1C7D98ACB3D0"><enum>(3)</enum><header>Enforcement
provisions</header><text>For purposes of taking enforcement action under
paragraph (1), the financial institution shall be subject to, and the Board of
Governors shall have authority under the provisions of subsections (b) through
(n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) in the
same manner and to the same extent as if the financial institution was an
insured depository institution and the Board of Governors was the appropriate
Federal banking agency for such insured depository institution.</text>
</paragraph></subsection></section><section id="H83570146B4164411B80660FA8B683F31"><enum>809.</enum><header>Requests for
information, reports, or records</header>
<subsection id="HFEF8B1433B4643E887D9D7DE5562430A"><enum>(a)</enum><header>Information To
assess systemic importance</header>
<paragraph id="H1038DFABAAD647D49FC56CE941E423EE"><enum>(1)</enum><header>Financial market
utilities</header><text>The Council is authorized to require any financial
market utility to submit such information as the Council may require for the
sole purpose of assessing whether that financial market utility is systemically
important, but only if the Council has reasonable cause to believe that the
financial market utility meets the standards for systemic importance set forth
in section 804.</text>
</paragraph><paragraph id="H4A1AD379F1D74923AF8EBF59A983BDB1"><enum>(2)</enum><header>Financial
institutions engaged in payment, clearing, or settlement
activities</header><text>The Council is authorized to require any financial
institution to submit such information as the Council may require for the sole
purpose of assessing whether any payment, clearing, or settlement activity
engaged in or supported by a financial institution is systemically important,
but only if the Council has reasonable cause to believe that the activity meets
the standards for systemic importance set forth in section 804.</text>
</paragraph></subsection><subsection id="H59ACC0A8ED604FDF967AA93A16B9FD89"><enum>(b)</enum><header>Reporting after
designation</header>
<paragraph id="H1ECEB2F6A3D046EC80034102B34D1440"><enum>(1)</enum><header>Designated
financial market utilities</header><text>The Board of Governors and the Council
may each require a designated financial market utility to submit reports or
data to the Board of Governors and the Council in such frequency and form as
deemed necessary by the Board of Governors or the Council in order to assess
the safety and soundness of the utility and the systemic risk that the
utility’s operations pose to the financial system.</text>
</paragraph><paragraph id="H5EB67341A8E948C482901E9EFC191AA7"><enum>(2)</enum><header>Financial
institutions subject to standards for designated activities</header><text>The
Board of Governors and the Council may each require 1 or more financial
institutions subject to the standards prescribed under section 805(a) for a
designated activity to submit, in such frequency and form as deemed necessary
by the Board of Governors or the Council, reports and data to the Board of
Governors and the Council solely with respect to the conduct of the designated
activity and solely to assess whether—</text>
<subparagraph id="H99B822AEECCA4C58BAF05554D577A4E6"><enum>(A)</enum><text>the rules, orders,
or standards prescribed under section 805(a) with respect to the designated
activity appropriately address the risks to the financial system presented by
such activity; and</text>
</subparagraph><subparagraph id="H13989CD5EAD14855885428A8763818E4"><enum>(B)</enum><text>the financial
institutions are in compliance with this title and the rules and orders
prescribed under section 805(a) with respect to the designated activity.</text>
</subparagraph></paragraph><paragraph id="H6998FDDBBED943A9A13162165F97049F"><enum>(3)</enum><header>Limitation</header><text>The
Board of Governors may, upon an affirmative vote by a majority of the Council,
prescribe regulations under this section that impose a recordkeeping or
reporting requirement on designated clearing entities or financial institutions
engaged in designated activities that are subject to standards that have been
prescribed under section 805(a)(2).</text>
</paragraph></subsection><subsection id="HFBFF36C76F0E417C88A29EBA5DD8D5E9"><enum>(c)</enum><header>Coordination
with appropriate Federal supervisory agency</header>
<paragraph id="H39950D34647D4FACA670BE5229B3A325"><enum>(1)</enum><header>Advance
coordination</header><text>Before requesting any material information from, or
imposing reporting or recordkeeping requirements on, any financial market
utility or any financial institution engaged in a payment, clearing, or
settlement activity, the Board of Governors or the Council shall coordinate
with the Supervisory Agency for a financial market utility or the appropriate
financial regulator for a financial institution to determine if the information
is available from or may be obtained by the agency in the form, format, or
detail required by the Board of Governors or the Council.</text>
</paragraph><paragraph id="H73814ADDE2714AFF96E9D9926656B3FF"><enum>(2)</enum><header>Supervisory
reports</header><text>Notwithstanding any other provision of law, the
Supervisory Agency, the appropriate financial regulator, and the Board of
Governors are authorized to disclose to each other and the Council copies of
its examination reports or similar reports regarding any financial market
utility or any financial institution engaged in payment, clearing, or
settlement activities.</text>
</paragraph></subsection><subsection id="HD453A00C66C844628615720FB199E25F"><enum>(d)</enum><header>Timing of
response from appropriate Federal supervisory agency</header><text>If the
information, report, records, or data requested by the Board of Governors or
the Council under subsection (c)(1) are not provided in full by the Supervisory
Agency or the appropriate financial regulator in less than 15 days after the
date on which the material is requested, the Board of Governors or the Council
may request the information or impose recordkeeping or reporting requirements
directly on such persons as provided in subsections (a) and (b) with notice to
the agency.</text>
</subsection><subsection id="H093A735051BC4D13A9168224E6454FCC"><enum>(e)</enum><header>Sharing of
information</header>
<paragraph id="H3A03ADA6D0AF412DA07F49F9557CBE24"><enum>(1)</enum><header>Material
concerns</header><text>Notwithstanding any other provision of law, the Board of
Governors, the Council, the appropriate financial regulator, and any
Supervisory Agency are authorized to—</text>
<subparagraph id="HF7EC57847C404B02B2B51840521C2974"><enum>(A)</enum><text>promptly notify
each other of material concerns about a designated financial market utility or
any financial institution engaged in designated activities; and</text>
</subparagraph><subparagraph id="H7CDC2346F78B47C2B8FC52AEDAD7FF7A"><enum>(B)</enum><text>share appropriate
reports, information, or data relating to such concerns.</text>
</subparagraph></paragraph><paragraph id="H9F36A012EC6E46709ECC3778483185AA"><enum>(2)</enum><header>Other
information</header><text>Notwithstanding any other provision of law, the Board
of Governors, the Council, the appropriate financial regulator, or any
Supervisory Agency may, under such terms and conditions as it deems
appropriate, provide confidential supervisory information and other information
obtained under this title to each other, and to the Secretary, Federal Reserve
Banks, State financial institution supervisory agencies, foreign financial
supervisors, foreign central banks, and foreign finance ministries, subject to
reasonable assurances of confidentiality, provided, however, that no person or
entity receiving information pursuant to this section may disseminate such
information to entities or persons other than those listed in this paragraph
without complying with applicable law, including section 8 of the Commodity
Exchange Act (7 U.S.C. 12).</text>
</paragraph></subsection><subsection id="H7BFEAD00627F467CA46D594D94206F8A"><enum>(f)</enum><header>Privilege
maintained</header><text>The Board of Governors, the Council, the appropriate
financial regulator, and any Supervisory Agency providing reports or data under
this section shall not be deemed to have waived any privilege applicable to
those reports or data, or any portion thereof, by providing the reports or data
to the other party or by permitting the reports or data, or any copies thereof,
to be used by the other party.</text>
</subsection><subsection id="HFDE8FFB4C74C4599B6A2BF430203973B"><enum>(g)</enum><header>Disclosure
exemption</header><text>Information obtained by the Board of Governors, the
Supervisory Agencies, or the Council under this section and any materials
prepared by the Board of Governors, the Supervisory Agencies, or the Council
regarding their assessment of the systemic importance of financial market
utilities or any payment, clearing, or settlement activities engaged in by
financial institutions, and in connection with their supervision of designated
financial market utilities and designated activities, shall be confidential
supervisory information exempt from disclosure under section 552 of title 5,
United States Code. For purposes of such section 552, this subsection shall be
considered a statute described in subsection (b)(3) of such section 552.</text>
</subsection></section><section id="HCDC9E57F7DE94601927F4BFB0A17C754"><enum>810.</enum><header>Rulemaking</header><text display-inline="no-display-inline">The Board of Governors, the Supervisory
Agencies, and the Council are authorized to prescribe such rules and issue such
orders as may be necessary to administer and carry out their respective
authorities and duties granted under this title and prevent evasions
thereof.</text>
</section><section id="HFC1A1617E8284496B45935673693866D"><enum>811.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by its terms, this title does not divest any appropriate financial
regulator, any Supervisory Agency, or any other Federal or State agency, of any
authority derived from any other applicable law, except that any standards
prescribed by the Board of Governors under section 805 shall supersede any less
stringent requirements established under other authority to the extent of any
conflict.</text>
</section><section id="HEDD198C5C65746538DA6CD5EE85FFEEC"><enum>812.</enum><header>Consultation</header>
<subsection id="H2FD205FCBAD845C78D36527A35893490"><enum>(a)</enum><header>CFTC</header><text>The
Commodity Futures Trading Commission shall consult with the Board of
Governors—</text>
<paragraph id="H9D607608D22345D5B1A21608B38123E1"><enum>(1)</enum><text>prior to
exercising its authorities under sections 2(h)(2)(C), 2(h)(3)(A), 2(h)(3)(C),
2(h)(4)(A), and 2(h)(4)(B) of the Commodity Exchange Act, as amended by the
Wall Street Transparency and Accountability Act of 2010;</text>
</paragraph><paragraph id="H1ADBF3C5F17E4E2EA898EE0AC44FC8F0"><enum>(2)</enum><text>with respect to
any rule or rule amendment of a derivatives clearing organization for which a
stay of certification has been issued under section 745(b)(3) of the Wall
Street Transparency and Accountability Act of 2010; and</text>
</paragraph><paragraph id="H69ABD845160A4DF485EA54C755D532A1"><enum>(3)</enum><text>prior to
exercising its rulemaking authorities under section 728 of the Wall Street
Transparency and Accountability Act of 2010.</text>
</paragraph></subsection><subsection id="H79D6338A3CEF464FA4C6F237E41AD5AE"><enum>(b)</enum><header>SEC</header><text>The
Commission shall consult with the Board of Governors—</text>
<paragraph id="H240603D78D1442999DD55791A945EC60"><enum>(1)</enum><text>prior to
exercising its authorities under sections 3C(a)(2)(C), 3C(a)(3)(A),
3C(a)(3)(C), 3C(a)(4)(A), and 3C(a)(4)(B) of the Securities Exchange Act of
1934, as amended by the Wall Street Transparency and Accountability Act of
2010;</text>
</paragraph><paragraph id="H868A4AA6D57F4A5F9C5D85D431DE8339"><enum>(2)</enum><text>with respect to
any proposed rule change of a clearing agency for which an extension of the
time for review has been designated under section 19(b)(2) of the Securities
Exchange Act of 1934; and</text>
</paragraph><paragraph id="HA3140D0B97CF41058E7AACDCE1DA24D2"><enum>(3)</enum><text>prior to
exercising its rulemaking authorities under section 13(n) of the Securities
Exchange Act of 1934, as added by section 763(i) of the Wall Street
Transparency and Accountability Act of 2010.</text>
</paragraph></subsection></section><section id="H7CB2271F028141FF8424A0BBDFFA95A5"><enum>813.</enum><header>Common
framework for designated clearing entity risk management</header><text display-inline="no-display-inline">The Commodity Futures Trading Commission and
the Commission shall coordinate with the Board of Governors to jointly develop
risk management supervision programs for designated clearing entities. Not
later than 1 year after the date of enactment of this Act, the Commodity
Futures Trading Commission, the Commission, and the Board of Governors shall
submit a joint report to the Committee on Banking, Housing, and Urban Affairs
and the Committee on Agriculture, Nutrition, and Forestry of the Senate, and
the Committee on Financial Services and the Committee on Agriculture of the
House of Representatives recommendations for—</text>
<paragraph id="HDEDA5F9A410C48439526E1F0F2DF9F70"><enum>(1)</enum><text>improving
consistency in the designated clearing entity oversight programs of the
Commission and the Commodity Futures Trading Commission;</text>
</paragraph><paragraph id="HC3A05E3839E44296AA89E4810AE953A4"><enum>(2)</enum><text>promoting robust
risk management by designated clearing entities;</text>
</paragraph><paragraph id="HA93539627617420594A205FE2828A6F3"><enum>(3)</enum><text>promoting robust
risk management oversight by regulators of designated clearing entities;
and</text>
</paragraph><paragraph id="H58552B2E01AA4B31870F7263F9295454"><enum>(4)</enum><text>improving
regulators’ ability to monitor the potential effects of designated clearing
entity risk management on the stability of the financial system of the United
States.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H765656C011F842CA82E75047F63DF5E3" section-type="subsequent-section"><enum>814.</enum><header>Effective
date</header><text display-inline="no-display-inline">This title is effective
as of the date of enactment of this Act.</text>
</section><enum>IX</enum><header>Investor
protections and improvements to the regulation of securities</header>
<section id="HE531845F4D5C463099077F4290E9DA59"><enum>901.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Investor Protection and Securities Reform Act of
2010</quote>.</text>
</section><subtitle id="H49D2D16C46C34291B37A346611B64B45"><enum>A</enum><header>Increasing
investor protection</header>
<section id="HA315673CF79D495AA42C4DA1E0325424"><enum>911.</enum><header>Investor
Advisory Committee established</header><text display-inline="no-display-inline">Title I of the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HA9AE7712551C43668AE28EA0FFC86118" style="OLC">
<section id="HFB785A868EC142848E428C6C5D3CCCCC"><enum>39.</enum><header>Investor
Advisory Committee</header>
<subsection id="HE5D7847582C34844BB33EBAEA8E3ECBF"><enum>(a)</enum><header>Establishment
and purpose</header>
<paragraph id="H0415C275A90E42AA9183222B2C1663C3"><enum>(1)</enum><header>Establishment</header><text>There
is established within the Commission the Investor Advisory Committee (referred
to in this section as the <quote>Committee</quote>).</text>
</paragraph><paragraph id="H47E12462CE674F3C906BAEA96119421D"><enum>(2)</enum><header>Purpose</header><text>The
Committee shall—</text>
<subparagraph id="H11F00377DE82465FA5FC6B4FC945BB98"><enum>(A)</enum><text>advise and consult
with the Commission on—</text>
<clause id="H60CD58AEAF82476C9D10D1BF96F9D4AC"><enum>(i)</enum><text>regulatory
priorities of the Commission;</text>
</clause><clause id="H3599E2BA7C4E4CD6ACA9F86B69548648"><enum>(ii)</enum><text>issues relating
to the regulation of securities products, trading strategies, and fee
structures, and the effectiveness of disclosure;</text>
</clause><clause id="H5826EC6C1FD44304A7005EDAE7E93145"><enum>(iii)</enum><text>initiatives to
protect investor interest; and</text>
</clause><clause id="HB12DD6585F314C7293B527918E842AD8"><enum>(iv)</enum><text>initiatives to
promote investor confidence and the integrity of the securities marketplace;
and</text>
</clause></subparagraph><subparagraph id="H5C6F7BC995AE418D9C26F668E23386BF"><enum>(B)</enum><text>submit to the
Commission such findings and recommendations as the Committee determines are
appropriate, including recommendations for proposed legislative changes.</text>
</subparagraph></paragraph></subsection><subsection id="H76B1A4132BB44C08B727AB0006674F02"><enum>(b)</enum><header>Membership</header>
<paragraph id="H38C60F66DDF84FFA9F2A5AD740256A02"><enum>(1)</enum><header>In
general</header><text>The members of the Committee shall be—</text>
<subparagraph id="H1956A6038F8643C2A6673612831C1607"><enum>(A)</enum><text>the Investor
Advocate;</text>
</subparagraph><subparagraph id="H854A6C250651424AA563E2F78D0F961D"><enum>(B)</enum><text>a representative
of State securities commissions;</text>
</subparagraph><subparagraph id="H7ABA6870B7E84CC3B8A8F8E9038CAA5A"><enum>(C)</enum><text>a representative
of the interests of senior citizens; and</text>
</subparagraph><subparagraph id="HC6D88278452343E3A68FD5B3D9163BEC"><enum>(D)</enum><text>not fewer than 10,
and not more than 20, members appointed by the Commission, from among
individuals who—</text>
<clause id="HD6FB1C00D8824906997C11FE0DF1B9BB"><enum>(i)</enum><text>represent the
interests of individual equity and debt investors, including investors in
mutual funds;</text>
</clause><clause id="H4F605FD817EC4E88A0F218D53D595346"><enum>(ii)</enum><text>represent the
interests of institutional investors, including the interests of pension funds
and registered investment companies;</text>
</clause><clause id="H6E32EAA235BF4FD990C7F89F2929D952"><enum>(iii)</enum><text>are
knowledgeable about investment issues and decisions; and</text>
</clause><clause id="H8953742DBE0C481FBA8978FBF521E492"><enum>(iv)</enum><text>have reputations
of integrity.</text>
</clause></subparagraph></paragraph><paragraph id="HAB6F1FDFA0FB421A86EA38B4E1822F36"><enum>(2)</enum><header>Term</header><text>Each
member of the Committee appointed under paragraph (1)(B) shall serve for a term
of 4 years.</text>
</paragraph><paragraph id="H0F2EC7E0DAB2412A9429B4D0B55D8CF9"><enum>(3)</enum><header>Members not
commission employees</header><text>Members appointed under paragraph (1)(B)
shall not be deemed to be employees or agents of the Commission solely because
of membership on the Committee.</text>
</paragraph></subsection><subsection id="H90527F20811F425BB903FEB47AA501E6"><enum>(c)</enum><header>Chairman; Vice
Chairman; Secretary; Assistant Secretary</header>
<paragraph id="H4D1060646C014B76BEEEA4C5ABBAB9B0"><enum>(1)</enum><header>In
general</header><text>The members of the Committee shall elect, from among the
members of the Committee—</text>
<subparagraph id="H6299FB5E2CAF42E49DA7381204DD34E1"><enum>(A)</enum><text>a chairman, who
may not be employed by an issuer;</text>
</subparagraph><subparagraph id="H4DBAD88B99D841CC933C473FF1EC9035"><enum>(B)</enum><text>a vice chairman,
who may not be employed by an issuer;</text>
</subparagraph><subparagraph id="HD6760EBC7CA44447B08B0DA68779F7D5"><enum>(C)</enum><text>a secretary;
and</text>
</subparagraph><subparagraph id="HD292D17FD8EF484B9B577F6DE6F88986"><enum>(D)</enum><text>an assistant
secretary.</text>
</subparagraph></paragraph><paragraph id="HFCE4F12579E24047A5799BD6FB8136CB"><enum>(2)</enum><header>Term</header><text>Each
member elected under paragraph (1) shall serve for a term of 3 years in the
capacity for which the member was elected under paragraph (1).</text>
</paragraph></subsection><subsection id="H51B5E4B6E1574798B364A976E4598308"><enum>(d)</enum><header>Meetings</header>
<paragraph id="H2576845399AD4AEF94DE62804DAAAD10"><enum>(1)</enum><header>Frequency of
meetings</header><text>The Committee shall meet—</text>
<subparagraph id="HE4B115FE73C04D11B378E510120CA2B5"><enum>(A)</enum><text>not less
frequently than twice annually, at the call of the chairman of the Committee;
and</text>
</subparagraph><subparagraph id="HE10556B36F16444EB174FBF62E94C539"><enum>(B)</enum><text>from time to time,
at the call of the Commission.</text>
</subparagraph></paragraph><paragraph id="HF4F09068C0E042569F3846B22221CC7B"><enum>(2)</enum><header>Notice</header><text>The
chairman of the Committee shall give the members of the Committee written
notice of each meeting, not later than 2 weeks before the date of the
meeting.</text>
</paragraph></subsection><subsection id="HC8BBE6BC536C487F98844B5709589291"><enum>(e)</enum><header>Compensation and
travel expenses</header><text>Each member of the Committee who is not a
full-time employee of the United States shall—</text>
<paragraph commented="no" id="HDF7495C1344A434CBAF81644B9524320"><enum>(1)</enum><text>be entitled to
receive compensation at a rate not to exceed the daily equivalent of the annual
rate of basic pay in effect for a position at level V of the Executive Schedule
under section 5316 of title 5, United States Code, for each day during which
the member is engaged in the actual performance of the duties of the Committee;
and</text>
</paragraph><paragraph commented="no" id="H6C62055E9D2F485480D45E20091203BC"><enum>(2)</enum><text>while away from
the home or regular place of business of the member in the performance of
services for the Committee, be allowed travel expenses, including per diem in
lieu of subsistence, in the same manner as persons employed intermittently in
the Government service are allowed expenses under section 5703(b) of title 5,
United States Code.</text>
</paragraph></subsection><subsection commented="no" id="H65C3CDCDE71F465593DB71738332FB2C"><enum>(f)</enum><header>Staff</header><text>The
Commission shall make available to the Committee such staff as the chairman of
the Committee determines are necessary to carry out this section.</text>
</subsection><subsection id="HDCDD4F3EFB384B07AC6B01547E4F9F74"><enum>(g)</enum><header>Review by
Commission</header><text>The Commission shall—</text>
<paragraph id="H6DBEBA601B004A59AED2B2031B102C3B"><enum>(1)</enum><text>review the
findings and recommendations of the Committee; and</text>
</paragraph><paragraph id="H2D3F039D189F4CC4824A99FA2BB73CD8"><enum>(2)</enum><text>each time the
Committee submits a finding or recommendation to the Commission, promptly issue
a public statement—</text>
<subparagraph id="H48039F1376C5486B93B3AB6EC5F4A487"><enum>(A)</enum><text>assessing the
finding or recommendation of the Committee; and</text>
</subparagraph><subparagraph id="H87717B28326A4A818906DD9451364154"><enum>(B)</enum><text>disclosing the
action, if any, the Commission intends to take with respect to the finding or
recommendation.</text>
</subparagraph></paragraph></subsection><subsection id="H39F38B88461448E3AEFFCF01E63B1414"><enum>(h)</enum><header>Committee
findings</header><text>Nothing in this section shall require the Commission to
agree to or act upon any finding or recommendation of the Committee.</text>
</subsection><subsection id="H5A9945CC463643179B09AF44BBA1ECB1"><enum>(i)</enum><header>Federal Advisory
Committee Act</header><text>The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply with respect to the Committee and its activities.</text>
</subsection><subsection id="H62F268FCFD444D6C892112070AA258FD"><enum>(j)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to the
Commission such sums as are necessary to carry out this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5C763A44191D44F99FCBF8B726A263E6"><enum>912.</enum><header>Clarification
of authority of the Commission to engage in investor testing</header><text display-inline="no-display-inline">Section 19 of the Securities Act of 1933 (15
U.S.C. 77s) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDF0CA1CF95A940D2B47175E246C12029" style="OLC">
<subsection id="HC9CF42A217314F35BC48F5E198BBAA9D"><enum>(e)</enum><header>Evaluation of
rules or programs</header><text>For the purpose of evaluating any rule or
program of the Commission issued or carried out under any provision of the
securities laws, as defined in section 3 of the Securities Exchange Act of 1934
(15 U.S.C. 78c), and the purposes of considering, proposing, adopting, or
engaging in any such rule or program or developing new rules or programs, the
Commission may—</text>
<paragraph id="HE09F6029F49F47159C9BD3AE54D5A9C4"><enum>(1)</enum><text>gather information
from and communicate with investors or other members of the public;</text>
</paragraph><paragraph id="HCAC70047C42A43449A728865D513BA63"><enum>(2)</enum><text>engage in such
temporary investor testing programs as the Commission determines are in the
public interest or would protect investors; and</text>
</paragraph><paragraph id="HF468FA5344A14BBA8B6363F43F67F203"><enum>(3)</enum><text>consult with
academics and consultants, as necessary to carry out this subsection.</text>
</paragraph></subsection><subsection id="HDF03935EAEDE4465974B41AA655FDDD9"><enum>(f)</enum><header>Rule of
construction</header><text>For purposes of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.), any action taken under subsection (e) shall not be
construed to be a collection of
information.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HCE332B98071B438DAAE11CBB7B4D66DA"><enum>913.</enum><header>Study and
rulemaking regarding obligations of brokers, dealers, and investment
advisers</header>
<subsection display-inline="no-display-inline" id="HB36FF25996484E29B49EC65B2D09CF46"><enum>(a)</enum><header>Definition</header><text>For
purposes of this section, the term <term>retail customer</term> means a natural
person, or the legal representative of such natural person, who—</text>
<paragraph id="H924ADE3EC1044D3D851A730AA5A4AB6D"><enum>(1)</enum><text>receives
personalized investment advice about securities from a broker or dealer or
investment adviser; and</text>
</paragraph><paragraph id="H423AF1005C5D4B53B8A8B2D0ACB322D5"><enum>(2)</enum><text>uses such advice
primarily for personal, family, or household purposes.</text>
</paragraph></subsection><subsection id="H8C3654A007BD49CE89D7695DFD5C3198"><enum>(b)</enum><header>Study</header><text display-inline="yes-display-inline">The Commission shall conduct a study to
evaluate—</text>
<paragraph id="HFF3E2D376901455582F91A73C59751F6"><enum>(1)</enum><text display-inline="yes-display-inline">the effectiveness of existing legal or
regulatory standards of care for brokers, dealers, investment advisers, persons
associated with brokers or dealers, and persons associated with investment
advisers for providing personalized investment advice and recommendations about
securities to retail customers imposed by the Commission and a national
securities association, and other Federal and State legal or regulatory
standards; and</text>
</paragraph><paragraph id="HAD694EAA8EE5458AB405BDA433F674C8"><enum>(2)</enum><text>whether there are
legal or regulatory gaps, shortcomings, or overlaps in legal or regulatory
standards in the protection of retail customers relating to the standards of
care for brokers, dealers, investment advisers, persons associated with brokers
or dealers, and persons associated with investment advisers for providing
personalized investment advice about securities to retail customers that should
be addressed by rule or statute.</text>
</paragraph></subsection><subsection id="H1AB6B045F11840029E2174353B5F1093"><enum>(c)</enum><header>Considerations</header><text>In
conducting the study required under subsection (b), the Commission shall
consider—</text>
<paragraph id="HDCC014F83BEA48EF8630A9FCD07CE965"><enum>(1)</enum><text>the effectiveness
of existing legal or regulatory standards of care for brokers, dealers,
investment advisers, persons associated with brokers or dealers, and persons
associated with investment advisers for providing personalized investment
advice and recommendations about securities to retail customers imposed by the
Commission and a national securities association, and other Federal and State
legal or regulatory standards;</text>
</paragraph><paragraph id="H33201E3F5A8E4ECD92E6E3BD12A10AD4"><enum>(2)</enum><text>whether there are
legal or regulatory gaps, shortcomings, or overlaps in legal or regulatory
standards in the protection of retail customers relating to the standards of
care for brokers, dealers, investment advisers, persons associated with brokers
or dealers, and persons associated with investment advisers for providing
personalized investment advice about securities to retail customers that should
be addressed by rule or statute;</text>
</paragraph><paragraph id="H0BD22F60FF924BB7B72334E17B6A9FD5"><enum>(3)</enum><text>whether retail
customers understand that there are different standards of care applicable to
brokers, dealers, investment advisers, persons associated with brokers or
dealers, and persons associated with investment advisers in the provision of
personalized investment advice about securities to retail customers;</text>
</paragraph><paragraph id="H9EB94A63812B42B1B9FE7CF739706AA8"><enum>(4)</enum><text>whether the
existence of different standards of care applicable to brokers, dealers,
investment advisers, persons associated with brokers or dealers, and persons
associated with investment advisers is a source of confusion for retail
customers regarding the quality of personalized investment advice that retail
customers receive;</text>
</paragraph><paragraph id="HD2576F70EE224CA7944470CCB79B8F69"><enum>(5)</enum><text>the regulatory,
examination, and enforcement resources devoted to, and activities of, the
Commission, the States, and a national securities association to enforce the
standards of care for brokers, dealers, investment advisers, persons associated
with brokers or dealers, and persons associated with investment advisers when
providing personalized investment advice and recommendations about securities
to retail customers, including—</text>
<subparagraph id="HB68A384C0F76429F900E317B225B1884"><enum>(A)</enum><text>the effectiveness
of the examinations of brokers, dealers, and investment advisers in determining
compliance with regulations;</text>
</subparagraph><subparagraph id="H1A71BFD40B80449686DED99D10E0620E"><enum>(B)</enum><text>the frequency of
the examinations; and</text>
</subparagraph><subparagraph id="H17C655E9B3E84D84A421A11DA55D11DC"><enum>(C)</enum><text>the length of time
of the examinations;</text>
</subparagraph></paragraph><paragraph id="H2542324F54854592918DA11F8BF1864F"><enum>(6)</enum><text>the substantive
differences in the regulation of brokers, dealers, and investment advisers,
when providing personalized investment advice and recommendations about
securities to retail customers;</text>
</paragraph><paragraph id="H9CBFB2CFC547443F9D50C7EA725EFBA6"><enum>(7)</enum><text>the specific
instances related to the provision of personalized investment advice about
securities in which—</text>
<subparagraph id="H4944929B6C634DC1AAA0C10D145D7AA8"><enum>(A)</enum><text>the regulation and
oversight of investment advisers provide greater protection to retail customers
than the regulation and oversight of brokers and dealers; and</text>
</subparagraph><subparagraph id="H6125C341088444B083C40DAF39D5A605"><enum>(B)</enum><text>the regulation and
oversight of brokers and dealers provide greater protection to retail customers
than the regulation and oversight of investment advisers;</text>
</subparagraph></paragraph><paragraph id="HAAEA0E70C0AC4B2C862850636B1951C3"><enum>(8)</enum><text>the existing legal
or regulatory standards of State securities regulators and other regulators
intended to protect retail customers;</text>
</paragraph><paragraph id="HDBB255BE03FC41F2B5D0A06DC8F033F0"><enum>(9)</enum><text>the potential
impact on retail customers, including the potential impact on access of retail
customers to the range of products and services offered by brokers and dealers,
of imposing upon brokers, dealers, and persons associated with brokers or
dealers—</text>
<subparagraph id="H5BE57E3D0AA943FAAB551141F8D0A3A8"><enum>(A)</enum><text display-inline="yes-display-inline">the standard of care applied under the
Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) for providing
personalized investment advice about securities to retail customers of
investment advisers, as interpreted by the Commission and the courts;
and</text>
</subparagraph><subparagraph id="HD654BE564E2445C2BFE7B3994289851A"><enum>(B)</enum><text>other requirements
of the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.);</text>
</subparagraph></paragraph><paragraph id="H07654CD39388424299A4F608F60133B0"><enum>(10)</enum><text>the potential
impact of eliminating the broker and dealer exclusion from the definition of
<quote>investment adviser</quote> under section 202(a)(11)(C) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)(C)), in terms of—</text>
<subparagraph id="HB9D2CE226FE1444CA49050A786745DAF"><enum>(A)</enum><text>the impact and
potential benefits and harm to retail customers that could result from such a
change, including any potential impact on access to personalized investment
advice and recommendations about securities to retail customers or the
availability of such advice and recommendations;</text>
</subparagraph><subparagraph id="HF82A14387B864F48B3786D2D39F003C4"><enum>(B)</enum><text>the number of
additional entities and individuals that would be required to register under,
or become subject to, the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et
seq.), and the additional requirements to which brokers, dealers, and persons
associated with brokers and dealers would become subject, including—</text>
<clause id="H9AE20C5B9C3F42B2BCF892EFA1A962B5"><enum>(i)</enum><text>any
potential additional associated person licensing, registration, and examination
requirements; and</text>
</clause><clause id="HC130986E89204CC69AFF2A4024F55AD1"><enum>(ii)</enum><text>the
additional costs, if any, to the additional entities and individuals;
and</text>
</clause></subparagraph><subparagraph id="H1DEDA5816CCF406B9F649BE7D49D8D58"><enum>(C)</enum><text>the impact on
Commission and State resources to—</text>
<clause id="HF5E0CD5B9B594C7AA8F926372330EAB7"><enum>(i)</enum><text>conduct
examinations of registered investment advisers and the representatives of
registered investment advisers, including the impact on the examination cycle;
and</text>
</clause><clause id="H8E37807DA9394742B807F56E5375A95E"><enum>(ii)</enum><text>enforce the
standard of care and other applicable requirements imposed under the Investment
Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.);</text>
</clause></subparagraph></paragraph><paragraph id="HE1CCD6E74AD844A691CBE6BB40B9F2E3"><enum>(11)</enum><text>the varying level
of services provided by brokers, dealers, investment advisers, persons
associated with brokers or dealers, and persons associated with investment
advisers to retail customers and the varying scope and terms of retail customer
relationships of brokers, dealers, investment advisers, persons associated with
brokers or dealers, and persons associated with investment advisers with such
retail customers;</text>
</paragraph><paragraph id="H5DC3FCB9D90B4423A2D68F2B701162E9"><enum>(12)</enum><text>the potential
impact upon retail customers that could result from potential changes in the
regulatory requirements or legal standards of care affecting brokers, dealers,
investment advisers, persons associated with brokers or dealers, and persons
associated with investment advisers relating to their obligations to retail
customers regarding the provision of investment advice, including any potential
impact on—</text>
<subparagraph id="H579612A98E6F47F39B66BA4032797A73"><enum>(A)</enum><text>protection from
fraud;</text>
</subparagraph><subparagraph id="HED6B541CDFC84B3581450257C05D08C2"><enum>(B)</enum><text>access to
personalized investment advice, and recommendations about securities to retail
customers; or</text>
</subparagraph><subparagraph id="H101B0F58CFB847F1BD22DF25F6D86240"><enum>(C)</enum><text>the availability
of such advice and recommendations;</text>
</subparagraph></paragraph><paragraph id="H769ED5BC0E194E9EA196AADC97641147"><enum>(13)</enum><text>the potential
additional costs and expenses to—</text>
<subparagraph id="H417A0610EF314A5CA87B63FF86E73B56"><enum>(A)</enum><text>retail customers
regarding and the potential impact on the profitability of their investment
decisions; and</text>
</subparagraph><subparagraph id="H94CDB6118D9345FD91683ECAF378EC51"><enum>(B)</enum><text>brokers, dealers,
and investment advisers resulting from potential changes in the regulatory
requirements or legal standards affecting brokers, dealers, investment
advisers, persons associated with brokers or dealers, and persons associated
with investment advisers relating to their obligations, including duty of care,
to retail customers; and</text>
</subparagraph></paragraph><paragraph id="HD07F1ED7F64944E08EEB5F4BA7346B75"><enum>(14)</enum><text>any other
consideration that the Commission considers necessary and appropriate in
determining whether to conduct a rulemaking under subsection (f).</text>
</paragraph></subsection><subsection id="HDCE8B6044D7848A5A256C79DFF774187"><enum>(d)</enum><header>Report</header>
<paragraph id="H070F7EB4397847E5A2DF7404D44A0493"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the date of enactment of
this Act, the Commission shall submit a report on the study required under
subsection (b) to—</text>
<subparagraph id="H1ABF25E6DB19445FAF59895F91F74AC4"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate; and</text>
</subparagraph><subparagraph id="H0C9CAB748D6A4EB28CDB3AF286E09CA6"><enum>(B)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="H4B39775269CC43C1B62E7BEC6F6E7AB2"><enum>(2)</enum><header>Content
requirements</header><text>The report required under paragraph (1) shall
describe the findings, conclusions, and recommendations of the Commission from
the study required under subsection (b), including—</text>
<subparagraph id="HE03199BB7D894CB9A4F26A106A110166"><enum>(A)</enum><text>a description of
the considerations, analysis, and public and industry input that the Commission
considered, as required under subsection (b), to make such findings,
conclusions, and policy recommendations; and</text>
</subparagraph><subparagraph id="H3879AAA0A63D40F29A0682513ABDD77A"><enum>(B)</enum><text>an analysis of
whether any identified legal or regulatory gaps, shortcomings, or overlap in
legal or regulatory standards in the protection of retail customers relating to
the standards of care for brokers, dealers, investment advisers, persons
associated with brokers or dealers, and persons associated with investment
advisers for providing personalized investment advice about securities to
retail customers.</text>
</subparagraph></paragraph></subsection><subsection id="H94718D516B0F488C9F7ADA0B1345DDF7"><enum>(e)</enum><header>Public
Comment</header><text>The Commission shall seek and consider public input,
comments, and data in order to prepare the report required under subsection
(d).</text>
</subsection><subsection id="H287D862522F3403ABF4F9BE89114F361"><enum>(f)</enum><header>Rulemaking</header><text>The
Commission may commence a rulemaking, as necessary or appropriate in the public
interest and for the protection of retail customers (and such other customers
as the Commission may by rule provide), to address the legal or regulatory
standards of care for brokers, dealers, investment advisers, persons associated
with brokers or dealers, and persons associated with investment advisers for
providing personalized investment advice about securities to such retail
customers. The Commission shall consider the findings conclusions, and
recommendations of the study required under subsection (b).</text>
</subsection><subsection id="H93EEC633A79649EBBB9798C12C304D13"><enum>(g)</enum><header>Authority to
Establish a Fiduciary Duty for Brokers and Dealers</header>
<paragraph id="HF042B5A342764EA3BBF12569D1815CE6"><enum>(1)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">Section
15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H44730312A2C641A585552EE1E79D6BD5" style="OLC">
<subsection id="H52DA4A7C1D3A4AE094BDE80881B7DA18"><enum>(k)</enum><header>Standard of
Conduct</header>
<paragraph id="HCE0E0483813C471BA14DDD172C75C697"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this Act or the
Investment Advisers Act of 1940, the Commission may promulgate rules to provide
that, with respect to a broker or dealer, when providing personalized
investment advice about securities to a retail customer (and such other
customers as the Commission may by rule provide), the standard of conduct for
such broker or dealer with respect to such customer shall be the same as the
standard of conduct applicable to an investment adviser under section 211 of
the Investment Advisers Act of 1940. The receipt of compensation based on
commission or other standard compensation for the sale of securities shall not,
in and of itself, be considered a violation of such standard applied to a
broker or dealer. Nothing in this section shall require a broker or dealer or
registered representative to have a continuing duty of care or loyalty to the
customer after providing personalized investment advice about
securities.</text>
</paragraph><paragraph id="HFCBDB40E3F10483296CE835CF54A34E7"><enum>(2)</enum><header>Disclosure of
range of products offered</header><text>Where a broker or dealer sells only
proprietary or other limited range of products, as determined by the
Commission, the Commission may by rule require that such broker or dealer
provide notice to each retail customer and obtain the consent or acknowledgment
of the customer. The sale of only proprietary or other limited range of
products by a broker or dealer shall not, in and of itself, be considered a
violation of the standard set forth in paragraph (1).</text>
</paragraph></subsection><subsection id="H81BC5C9B72804B2296EA41C9CDCF96C7"><enum>(l)</enum><header>Other
matters</header><text>The Commission shall—</text>
<paragraph id="H5DB703ACC026465EA0FCC4DD0C644D8E"><enum>(1)</enum><text>facilitate the
provision of simple and clear disclosures to investors regarding the terms of
their relationships with brokers, dealers, and investment advisers, including
any material conflicts of interest; and</text>
</paragraph><paragraph id="HEF01BCEA0DF8494A8A619893B46577E8"><enum>(2)</enum><text>examine and, where
appropriate, promulgate rules prohibiting or restricting certain sales
practices, conflicts of interest, and compensation schemes for brokers,
dealers, and investment advisers that the Commission deems contrary to the
public interest and the protection of
investors.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3FB1A80089A5410D94A7C7E889515CA2"><enum>(2)</enum><header>Investment
advisers Act of 1940</header><text>Section 211 of the Investment Advisers Act
of 1940, is further amended by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="HDE9B307A468940A7B69D017BCAA0E3D3" style="OLC">
<subsection id="H1042894B764F480AB6F4FAC3B711D1D9"><enum>(g)</enum><header>Standard of
Conduct</header>
<paragraph id="HD249633CAD4F4B588B1D3F84E05D7396"><enum>(1)</enum><header>In
general</header><text>The Commission may promulgate rules to provide that the
standard of conduct for all brokers, dealers, and investment advisers, when
providing personalized investment advice about securities to retail customers
(and such other customers as the Commission may by rule provide), shall be to
act in the best interest of the customer without regard to the financial or
other interest of the broker, dealer, or investment adviser providing the
advice. In accordance with such rules, any material conflicts of interest shall
be disclosed and may be consented to by the customer. Such rules shall provide
that such standard of conduct shall be no less stringent than the standard
applicable to investment advisers under section 206(1) and (2) of this Act when
providing personalized investment advice about securities, except the
Commission shall not ascribe a meaning to the term ‘customer’ that would
include an investor in a private fund managed by an investment adviser, where
such private fund has entered into an advisory contract with such adviser. The
receipt of compensation based on commission or fees shall not, in and of
itself, be considered a violation of such standard applied to a broker, dealer,
or investment adviser.</text>
</paragraph><paragraph id="H2E7AAA03454744D2A0DC917023FE56DE"><enum>(2)</enum><header>Retail customer
defined</header><text>For purposes of this subsection, the term <term>retail
customer</term> means a natural person, or the legal representative of such
natural person, who—</text>
<subparagraph id="H014E469B11F944F88CBC5098D88D1A79"><enum>(A)</enum><text>receives
personalized investment advice about securities from a broker, dealer, or
investment adviser; and</text>
</subparagraph><subparagraph id="H69625BAEE5E842C68E04769E475864E1"><enum>(B)</enum><text>uses such advice
primarily for personal, family, or household purposes.</text>
</subparagraph></paragraph></subsection><subsection id="H3C9D067D298246B9B22CEC7AF81D2CED"><enum>(h)</enum><header>Other
matters</header><text>The Commission shall—</text>
<paragraph id="H7EA12BCB48E74B3F9A6744B1B38D383F"><enum>(1)</enum><text>facilitate the
provision of simple and clear disclosures to investors regarding the terms of
their relationships with brokers, dealers, and investment advisers, including
any material conflicts of interest; and</text>
</paragraph><paragraph id="H57F71C48296B475A874D47E57CF667B3"><enum>(2)</enum><text>examine and, where
appropriate, promulgate rules prohibiting or restricting certain sales
practices, conflicts of interest, and compensation schemes for brokers,
dealers, and investment advisers that the Commission deems contrary to the
public interest and the protection of
investors.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB3FDE356DC0A48EBA0AE6966802FED24"><enum>(h)</enum><header>Harmonization of
enforcement</header>
<paragraph id="HD57112766B604262B4A9B2200314A2DB"><enum>(1)</enum><header>Securities
exchange act of 1934</header><text>Section 15 of the Securities Exchange Act of
1934, as amended by subsection (g)(1), is further amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8DECBA0F3A284CA897E42A2758BABF51" style="OLC">
<subsection id="HF08059079D75470B8A8B0A687D353B90"><enum>(m)</enum><header>Harmonization of
enforcement</header><text>The enforcement authority of the Commission with
respect to violations of the standard of conduct applicable to a broker or
dealer providing personalized investment advice about securities to a retail
customer shall include—</text>
<paragraph id="H310359B1702A496197076862B6D72BCD"><enum>(1)</enum><text>the enforcement
authority of the Commission with respect to such violations provided under this
Act; and</text>
</paragraph><paragraph id="H3C9DF1414C024D3CB2F2360C14095C8D"><enum>(2)</enum><text>the enforcement
authority of the Commission with respect to violations of the standard of
conduct applicable to an investment adviser under the Investment Advisers Act
of 1940, including the authority to impose sanctions for such violations,
and</text>
</paragraph><continuation-text continuation-text-level="subsection">the
Commission shall seek to prosecute and sanction violators of the standard of
conduct applicable to a broker or dealer providing personalized investment
advice about securities to a retail customer under this Act to same extent as
the Commission prosecutes and sanctions violators of the standard of conduct
applicable to an investment advisor under the Investment Advisers Act of
1940.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1E463210745646AAB469136CCCA4D4D5"><enum>(2)</enum><header>Investment
advisers act of 1940</header><text>Section 211 of the Investment Advisers Act
of 1940, as amended by subsection (g)(2), is further amended by adding at the
end the following new subsection:</text>
<quoted-block id="H8EF0B64FC93E497C85BAED54AE341896" style="OLC">
<subsection id="H081646F6290A4FB79EAE8FCD3FA43EA6"><enum>(i)</enum><header>Harmonization of
enforcement</header><text>The enforcement authority of the Commission with
respect to violations of the standard of conduct applicable to an investment
adviser shall include—</text>
<paragraph id="HDB64FEB0259143EEB2B4C4091A119D7C"><enum>(1)</enum><text>the enforcement
authority of the Commission with respect to such violations provided under this
Act; and</text>
</paragraph><paragraph id="HEEA69B9B8C1348139EE7BFCB30BCD775"><enum>(2)</enum><text>the enforcement
authority of the Commission with respect to violations of the standard of
conduct applicable to a broker or dealer providing personalized investment
advice about securities to a retail customer under the Securities Exchange Act
of 1934, including the authority to impose sanctions for such violations,
and</text>
</paragraph><continuation-text continuation-text-level="subsection">the
Commission shall seek to prosecute and sanction violators of the standard of
conduct applicable to an investment adviser under this Act to same extent as
the Commission prosecutes and sanctions violators of the standard of conduct
applicable to a broker or dealer providing personalized investment advice about
securities to a retail customer under the Securities Exchange Act of
1934.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" id="HFF735270B5674B0F8D4140566705579E"><enum>914.</enum><header>Study on
enhancing investment adviser examinations</header>
<subsection commented="no" id="H8FAA003C5AB0462A8F2F3061994A8057"><enum>(a)</enum><header>Study
required</header>
<paragraph commented="no" id="H5D4DFE1E47B648468E9C0882359FA108"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
review and analyze the need for enhanced examination and enforcement resources
for investment advisers.</text>
</paragraph><paragraph commented="no" id="HF5C6AB64744A4DEABC0152F0266A8CCD"><enum>(2)</enum><header>Areas of
consideration</header><text>The study required by this subsection shall
examine—</text>
<subparagraph commented="no" id="H7EAA12D15EA84DB08109D383D9FD20D3"><enum>(A)</enum><text>the number and
frequency of examinations of investment advisers by the Commission over the 5
years preceding the date of the enactment of this subtitle;</text>
</subparagraph><subparagraph commented="no" id="HEC393653FB9B439F8DB88A735D426B55"><enum>(B)</enum><text>the extent to
which having Congress authorize the Commission to designate one or more
self-regulatory organizations to augment the Commission’s efforts in overseeing
investment advisers would improve the frequency of examinations of investment
advisers; and</text>
</subparagraph><subparagraph commented="no" id="H7B7DDE9ED8204D8B8C7C462C5E0D7AF3"><enum>(C)</enum><text>current and
potential approaches to examining the investment advisory activities of dually
registered broker-dealers and investment advisers or affiliated broker-dealers
and investment advisers.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H04FF49F6CB0242B38909ADA0D92C9C18"><enum>(b)</enum><header>Report
required</header><text>The Commission shall report its findings to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate, not later than
180 days after the date of enactment of this subtitle, and shall use such
findings to revise its rules and regulations, as necessary. The report shall
include a discussion of regulatory or legislative steps that are recommended or
that may be necessary to address concerns identified in the study.</text>
</subsection></section><section id="H0DACE29CC0D547129E770D7660C63AD9"><enum>915.</enum><header>Office of the
Investor Advocate</header><text display-inline="no-display-inline">Section 4 of
the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF834C66D553E41B780D84D21F9686201" style="OLC">
<subsection id="H99315EA1C0894107858DCEEEBCFDF8A1"><enum>(g)</enum><header>Office of the
Investor Advocate</header>
<paragraph id="HCF5EB645118649598A500EC939AFED6A"><enum>(1)</enum><header>Office
Established</header><text>There is established within the Commission the Office
of the Investor Advocate (in this subsection referred to as the
<quote>Office</quote>).</text>
</paragraph><paragraph id="HE58DFAC021484C318DFE1DC2A04162BE"><enum>(2)</enum><header>Investor
Advocate</header>
<subparagraph id="H6D5A586B257C4D16AA77C9F3265E0D6C"><enum>(A)</enum><header>In
General</header><text>The head of the Office shall be the Investor Advocate,
who shall—</text>
<clause id="H04BBB1E17759488B93C49EC7F30CBCEB"><enum>(i)</enum><text>report directly to
the Chairman; and</text>
</clause><clause id="H73E5F1214A874E0591A0AD2AA6CA5839"><enum>(ii)</enum><text>be appointed by
the Chairman, in consultation with the Commission, from among individuals
having experience in advocating for the interests of investors in securities
and investor protection issues, from the perspective of investors.</text>
</clause></subparagraph><subparagraph id="HF8C25E8A49F348E2A2B086A79FD76C6E"><enum>(B)</enum><header>Compensation</header><text display-inline="yes-display-inline">The annual rate of pay for the Investor
Advocate shall be equal to the highest rate of annual pay for other senior
executives who report to the Chairman of the Commission.</text>
</subparagraph><subparagraph id="H71D389698967454B967835F50A26752F"><enum>(C)</enum><header>Limitation on
service</header><text>An individual who serves as the Investor Advocate may not
be employed by the Commission—</text>
<clause id="HB101BD0ED5464EA6A6611384CE82C14B"><enum>(i)</enum><text>during the 2-year
period ending on the date of appointment as Investor Advocate; or</text>
</clause><clause id="HBCF2C8953FE74515B99E90B26D4D3500"><enum>(ii)</enum><text>during the 5-year
period beginning on the date on which the person ceases to serve as the
Investor Advocate.</text>
</clause></subparagraph></paragraph><paragraph id="H3687EADC78314858902E515BB543E18C"><enum>(3)</enum><header>Staff of
Office</header><text>The Investor Advocate, after consultation with the
Chairman of the Commission, may retain or employ independent counsel, research
staff, and service staff, as the Investor Advocate deems necessary to carry out
the functions, powers, and duties of the Office.</text>
</paragraph><paragraph id="HFA94E9B146F2460EB3925D96A925CC5B"><enum>(4)</enum><header>Functions of the
Investor Advocate</header><text>The Investor Advocate shall—</text>
<subparagraph id="HE3B3ACA790C94B7E99863E08A20DEF3E"><enum>(A)</enum><text>assist retail
investors in resolving significant problems such investors may have with the
Commission or with self-regulatory organizations;</text>
</subparagraph><subparagraph id="H074E248BB948475DABCF2F549555FD32"><enum>(B)</enum><text>identify areas in
which investors would benefit from changes in the regulations of the Commission
or the rules of self-regulatory organizations;</text>
</subparagraph><subparagraph id="H41C901E31B4C4C13BBDDE211C76BA4FA"><enum>(C)</enum><text>identify problems
that investors have with financial service providers and investment
products;</text>
</subparagraph><subparagraph id="HFCEDB25A273746DD851BFF12CEF143DA"><enum>(D)</enum><text>analyze the
potential impact on investors of—</text>
<clause id="H81C39330CF7A4AA4AA3D0F5AE38B4920"><enum>(i)</enum><text>proposed
regulations of the Commission; and</text>
</clause><clause id="HF0B4C441352B4B159EBD0C57895BB2A7"><enum>(ii)</enum><text>proposed rules of
self-regulatory organizations registered under this title; and</text>
</clause></subparagraph><subparagraph id="H424A9102EF864DE6B777DA2E9FDC7F7C"><enum>(E)</enum><text>to the extent
practicable, propose to the Commission changes in the regulations or orders of
the Commission and to Congress any legislative, administrative, or personnel
changes that may be appropriate to mitigate problems identified under this
paragraph and to promote the interests of investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="HFBAA23D9B5F14C19BB764D175F28A60F"><enum>(5)</enum><header>Access to
documents</header><text>The Commission shall ensure that the Investor Advocate
has full access to the documents of the Commission and any self-regulatory
organization, as necessary to carry out the functions of the Office.</text>
</paragraph><paragraph id="H291B2E9608C448C3A90B0C62B47DD3C5"><enum>(6)</enum><header>Annual
Reports</header>
<subparagraph id="H191BE16634844E08A91E27F073453D86"><enum>(A)</enum><header>Report on
objectives</header>
<clause id="HF793C7A8113D44BFBE66827112F58BAA"><enum>(i)</enum><header>In
general</header><text>Not later than June 30 of each year after 2010, the
Investor Advocate shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives a report on the objectives of the Investor Advocate for the
following fiscal year.</text>
</clause><clause commented="no" id="HDD7B58F43CAD4C66AD93CE4294E3BD34"><enum>(ii)</enum><header>Contents</header><text>Each
report required under clause (i) shall contain full and substantive analysis
and explanation.</text>
</clause></subparagraph><subparagraph id="H8619FDD9CB064EF2BB761A8F40EB1685"><enum>(B)</enum><header>Report on
activities</header>
<clause id="H08C842BCF4FE4A5CAB7E28AAABCF30BA"><enum>(i)</enum><header>In
General</header><text>Not later than December 31 of each year after 2010, the
Investor Advocate shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives a report on the activities of the Investor Advocate during the
immediately preceding fiscal year.</text>
</clause><clause id="H63E905B5D2F3424EBA3965652C65390C"><enum>(ii)</enum><header>Contents</header><text>Each
report required under clause (i) shall include—</text>
<subclause id="HFC826CB0C8C34D3D810B2667C913B0C8"><enum>(I)</enum><text>appropriate
statistical information and full and substantive analysis;</text>
</subclause><subclause id="H19E440A1F89544F0A1B26DF07CDB373F"><enum>(II)</enum><text>information on
steps that the Investor Advocate has taken during the reporting period to
improve investor services and the responsiveness of the Commission and
self-regulatory organizations to investor concerns;</text>
</subclause><subclause id="H13069D3CF456474AB7FD4569B1C3B9C8"><enum>(III)</enum><text>a summary of the
most serious problems encountered by investors during the reporting
period;</text>
</subclause><subclause id="HBA704473885740E98B5968A0B42C425B"><enum>(IV)</enum><text>an inventory of
the items described in subclause (III) that includes—</text>
<item id="HE5527BB9A31A43E39660B66BB1B08883"><enum>(aa)</enum><text>identification of
any action taken by the Commission or the self-regulatory organization and the
result of such action;</text>
</item><item id="HEB967528DE9C45D6988F36A4CFE2DD62"><enum>(bb)</enum><text>the
length of time that each item has remained on such inventory; and</text>
</item><item id="H8F228516C3874B71B0C4B0CD53FE3057"><enum>(cc)</enum><text>for
items on which no action has been taken, the reasons for inaction, and an
identification of any official who is responsible for such action;</text>
</item></subclause><subclause id="HA9F5ED6887CB4D5B8870BBACACE77B22"><enum>(V)</enum><text>recommendations
for such administrative and legislative actions as may be appropriate to
resolve problems encountered by investors; and</text>
</subclause><subclause id="HB080CE5083B944CA91921B1CA84E981D"><enum>(VI)</enum><text>any other
information, as determined appropriate by the Investor Advocate.</text>
</subclause></clause><clause id="HF7378B7911E34946B5D99167D2DB3579"><enum>(iii)</enum><header>Independence</header><text>Each
report required under this paragraph shall be provided directly to the
Committees listed in clause (i) without any prior review or comment from the
Commission, any commissioner, any other officer or employee of the Commission,
or the Office of Management and Budget.</text>
</clause><clause id="H2C169997AEE1424EBF1EFF2E25C7CE19"><enum>(iv)</enum><header>Confidentiality</header><text>No
report required under clause (i) may contain confidential information.</text>
</clause></subparagraph></paragraph><paragraph id="H6428E622625940D49014FEDF89C75129"><enum>(7)</enum><header>Regulations</header><text>The
Commission shall, by regulation, establish procedures requiring a formal
response to all recommendations submitted to the Commission by the Investor
Advocate, not later than 3 months after the date of such
submission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HF53A2918900849AABF301D85A6FFBEB6"><enum>916.</enum><header>Streamlining of
filing procedures for self-regulatory organizations</header>
<subsection id="HCE83306A72864AF98C485725D6527F83"><enum>(a)</enum><header>Filing
procedures</header><text>Section 19(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)) is amended by striking paragraph (2) (including the
undesignated matter immediately following subparagraph (B)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3F24FB5736084A50BB757C5E5F1352E3" style="OLC">
<paragraph id="H4C58B1211A084B5FAA70DCD6B7A5A7AD"><enum>(2)</enum><header>Approval
process</header>
<subparagraph id="HBC5C0D2E774E418DA0F1F310D58B21B3"><enum>(A)</enum><header>Approval process
established</header>
<clause id="HAEDCA6FC261E4D55A2AE720D56620773"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), not later than 45 days
after the date of publication of a proposed rule change under paragraph (1),
the Commission shall—</text>
<subclause id="HEED26A5CE4104FA0A86F663AF213FB15"><enum>(I)</enum><text>by order, approve
or disapprove the proposed rule change; or</text>
</subclause><subclause id="H59AA95E9B5804F95A0424E647823A0ED"><enum>(II)</enum><text>institute
proceedings under subparagraph (B) to determine whether the proposed rule
change should be disapproved.</text>
</subclause></clause><clause id="HD1B756136D7F4AF28D07FD5DB1AC652B"><enum>(ii)</enum><header>Extension of
time period</header><text>The Commission may extend the period established
under clause (i) by not more than an additional 45 days, if—</text>
<subclause id="HF6B4D37E154E45C8A35AE8C5ABFD97F0"><enum>(I)</enum><text>the Commission
determines that a longer period is appropriate and publishes the reasons for
such determination; or</text>
</subclause><subclause id="H5A419E6A46FA4424B9026F520A612C41"><enum>(II)</enum><text>the
self-regulatory organization that filed the proposed rule change consents to
the longer period.</text>
</subclause></clause></subparagraph><subparagraph id="H5A12ECEE4DE346B7B29B9562D743F3D1"><enum>(B)</enum><header>Proceedings</header>
<clause id="H69276572759D45178F3F97CD7D19C5C3"><enum>(i)</enum><header>Notice and
hearing</header><text>If the Commission does not approve or disapprove a
proposed rule change under subparagraph (A), the Commission shall provide to
the self-regulatory organization that filed the proposed rule change—</text>
<subclause id="H36AB5E7B0E91471FBE09A5165812DF1D"><enum>(I)</enum><text>notice of the
grounds for disapproval under consideration; and</text>
</subclause><subclause id="H21763993AB6B477F90AB8DEAB757BE68"><enum>(II)</enum><text>opportunity for
hearing, to be concluded not later than 180 days after the date of publication
of notice of the filing of the proposed rule change.</text>
</subclause></clause><clause id="H92BEC8C6526D4BBBBF41C68E8C63FE20"><enum>(ii)</enum><header>Order of
approval or disapproval</header>
<subclause id="HFB24896310944E69BF1B8820DF85D4DE"><enum>(I)</enum><header>In
general</header><text>Except as provided in subclause (II), not later than 180
days after the date of publication under paragraph (1), the Commission shall
issue an order approving or disapproving the proposed rule change.</text>
</subclause><subclause id="H057CEDB3D9BC44AAB035AB57CC66F5FD"><enum>(II)</enum><header>Extension of
time period</header><text>The Commission may extend the period for issuance
under clause (I) by not more than 60 days, if—</text>
<item id="H0962345735734AD1A6D8A9BD4D28DEEE"><enum>(aa)</enum><text>the
Commission determines that a longer period is appropriate and publishes the
reasons for such determination; or</text>
</item><item id="HEBEFBAEED0764BF0B4DF094BD11C48E2"><enum>(bb)</enum><text>the
self-regulatory organization that filed the proposed rule change consents to
the longer period.</text>
</item></subclause></clause></subparagraph><subparagraph id="H18832B05D7E14D85ACE03726DFADA9C1"><enum>(C)</enum><header>Standards for
approval and disapproval</header>
<clause id="H22440BC99E174E4A8ED63A2BB73B0225"><enum>(i)</enum><header>Approval</header><text>The
Commission shall approve a proposed rule change of a self-regulatory
organization if it finds that such proposed rule change is consistent with the
requirements of this title and the rules and regulations issued under this
title that are applicable to such organization.</text>
</clause><clause id="H0659DCA204AE443F82DB7BCDC0E88299"><enum>(ii)</enum><header>Disapproval</header><text>The
Commission shall disapprove a proposed rule change of a self-regulatory
organization if it does not make a finding described in clause (i).</text>
</clause><clause id="HF0274901C2654AD6B457289BD71E318E"><enum>(iii)</enum><header>Time for
approval</header><text>The Commission may not approve a proposed rule change
earlier than 30 days after the date of publication under paragraph (1), unless
the Commission finds good cause for so doing and publishes the reason for the
finding.</text>
</clause></subparagraph><subparagraph id="HAEEB26FE74F34A98A2ED7C0F18B4E62F"><enum>(D)</enum><header>Result of
failure to institute or conclude proceedings</header><text>A proposed rule
change shall be deemed to have been approved by the Commission, if—</text>
<clause id="H549673B4C7B948F9B4BB84C2FC1FB22E"><enum>(i)</enum><text>the Commission
does not approve or disapprove the proposed rule change or begin proceedings
under subparagraph (B) within the period described in subparagraph (A);
or</text>
</clause><clause id="H6358DEDD9B6A449792E89BF65B239D30"><enum>(ii)</enum><text>the Commission
does not issue an order approving or disapproving the proposed rule change
under subparagraph (B) within the period described in subparagraph
(B)(ii).</text>
</clause></subparagraph><subparagraph id="H161E38A0DF504F909B742870A7CCDA31"><enum>(E)</enum><header>Publication date
based on Federal Register publishing</header><text>For purposes of this
paragraph, if, after filing a proposed rule change with the Commission pursuant
to paragraph (1), a self-regulatory organization publishes a notice of the
filing of such proposed rule change, together with the substantive terms of
such proposed rule change, on a publicly accessible website, the Commission
shall thereafter send the notice to the Federal Register for publication
thereof under paragraph (1) within 15 days of the date on which such website
publication is made. If the Commission fails to send the notice for publication
thereof within such 15 day period, then the date of publication shall be deemed
to be the date on which such website publication was made.</text>
</subparagraph><subparagraph id="H09137AFEE83E437F8587FD01A845DECB"><enum>(F)</enum><header>Rulemaking</header>
<clause id="HA4907AB53824499EB248988DFD506A15"><enum>(i)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
the Investor Protection and Securities Reform Act of 2010, after consultation
with other regulatory agencies, the Commission shall promulgate rules setting
forth the procedural requirements of the proceedings required under this
paragraph.</text>
</clause><clause commented="no" id="HCF43493AEF3E48528567DEC506B7D30C"><enum>(ii)</enum><header>Notice and
comment not required</header><text>The rules promulgated by the Commission
under clause (i) are not required to include republication of proposed rule
changes or solicitation of public
comment.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB40411775D964B39817BF4C2688C2FC2"><enum>(b)</enum><header>Clarification of
filing date</header>
<paragraph id="H54E1DFCC2013455388C4B508E692F4FA"><enum>(1)</enum><header>Rule of
construction</header><text>Section 19(b) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8CD9174FDC5E4C4FBB7449ED1B1F4E4E" style="OLC">
<paragraph id="H8BA5E804BEB84B7D8D17399E62DD81E8"><enum>(10)</enum><header>Rule of
construction relating to filing date of proposed rule changes</header>
<subparagraph id="H0CED60F71FCA42C4B99532FBE18D227B"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the date of filing of a
proposed rule change shall be deemed to be the date on which the Commission
receives the proposed rule change.</text>
</subparagraph><subparagraph id="H73D23F38C1CA4AB89E105955DE01B0C0"><enum>(B)</enum><header>Exception</header><text>A
proposed rule change has not been received by the Commission for purposes of
subparagraph (A) if, not later than 7 business days after the date of receipt
by the Commission, the Commission notifies the self-regulatory organization
that such proposed rule change does not comply with the rules of the Commission
relating to the required form of a proposed rule change, except that if the
Commission determines that the proposed rule change is unusually lengthy and is
complex or raises novel regulatory issues, the Commission shall inform the
self-regulatory organization of such determination not later than 7 business
days after the date of receipt by the Commission and, for the purposes of
subparagraph (A), a proposed rule change has not been received by the
Commission, if, not later than 21 days after the date of receipt by the
Commission, the Commission notifies the self-regulatory organization that such
proposed rule change does not comply with the rules of the Commission relating
to the required form of a proposed rule
change.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H674E414D240748F3A0113E88F117068A"><enum>(2)</enum><header>Publication</header><text>Section
19(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)(1)) is
amended by striking <quote>upon</quote> and inserting <quote>as soon as
practicable after the date of</quote>.</text>
</paragraph></subsection><subsection id="H101E1E440A554837BCDC983F217E0061"><enum>(c)</enum><header>Effective date
of proposed rules</header><text>Section 19(b)(3) of the Securities Exchange Act
of 1934 (15 U.S.C. 78s(b)(3)) is amended—</text>
<paragraph id="HCF1A132325024C178A0E439FD2A78D21"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="H429987AB41E54F6DA5408F6E59F486BE"><enum>(A)</enum><text>by striking
<quote>may take effect</quote> and inserting <quote>shall take effect</quote>;
and</text>
</subparagraph><subparagraph id="HA3184EDDBA304E43970BA2C8C537141B"><enum>(B)</enum><text>by inserting
<quote>on any person, whether or not the person is a member of the
self-regulatory organization</quote> after <quote>charge imposed by the
self-regulatory organization</quote>; and</text>
</subparagraph></paragraph><paragraph id="H1583E1009EAB497080C12FCC71F61598"><enum>(2)</enum><text>in subparagraph
(C)—</text>
<subparagraph id="H6B881A5CA89B4CF8B2A32EEBEDB042FF"><enum>(A)</enum><text>by amending the
second sentence to read as follows: <quote>At any time within the 60-day period
beginning on the date of filing of such a proposed rule change in accordance
with the provisions of paragraph (1), the Commission summarily may temporarily
suspend the change in the rules of the self-regulatory organization made
thereby, if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</quote>;</text>
</subparagraph><subparagraph id="H30FDE05039704592A2AF0357BD3BF429"><enum>(B)</enum><text>by inserting after
the second sentence the following: <quote>If the Commission takes such action,
the Commission shall institute proceedings under paragraph (2)(B) to determine
whether the proposed rule should be approved or disapproved.</quote>;
and</text>
</subparagraph><subparagraph id="HCDCDA505B902427997D2AF6F7959FE27"><enum>(C)</enum><text>in the third
sentence, by striking <quote>the preceding sentence</quote> and inserting
<quote>this subparagraph</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HA7714CA001594D83A34249BC0283233B"><enum>(d)</enum><header>Conforming
change</header><text>Section 19(b)(4)(D) of the Securities Exchange Act of 1934
(15 U.S.C. 78s(b)(4)(D)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA56509E81D9442408142B52E3C7C2D8A" style="OLC">
<subparagraph id="HEB780CFE02864BBD8DEB987DEC1BE248"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H969D53DF90284056AB80BD76DAA4455F"><enum>(i)</enum><text>The Commission shall
order the temporary suspension of any change in the rules of a clearing agency
made by a proposed rule change that has taken effect under paragraph (3), if
the appropriate regulatory agency for the clearing agency notifies the
Commission not later than 30 days after the date on which the proposed rule
change was filed of—</text>
<subclause id="HE714A0664B7D4C61891F291061CD1C6E" indent="up1"><enum>(I)</enum><text>the determination by the appropriate
regulatory agency that the rules of such clearing agency, as so changed, may be
inconsistent with the safeguarding of securities or funds in the custody or
control of such clearing agency or for which it is responsible; and</text>
</subclause><subclause id="HE7E3774EECCA45208A1D9C42D93D2375" indent="up1"><enum>(II)</enum><text>the reasons for the determination
described in subclause (I).</text>
</subclause></clause><clause id="H8D394800D96B429C83A7F730BED322B5" indent="up1"><enum>(ii)</enum><text>If the Commission takes action
under clause (i), the Commission shall institute proceedings under paragraph
(2)(B) to determine if the proposed rule change should be approved or
disapproved.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H3A92325C2D2A4FE19426D443A3E7A180"><enum>917.</enum><header>Study regarding
financial literacy among investors</header>
<subsection id="H2993D9AA59E042B68A81953D95CD62B4"><enum>(a)</enum><header>In
general</header><text>The Commission shall conduct a study to identify—</text>
<paragraph id="H99F64023543D4B438CAF09B75A27E3D4"><enum>(1)</enum><text>the existing level
of financial literacy among retail investors, including subgroups of investors
identified by the Commission;</text>
</paragraph><paragraph id="HD29AF76D8B6A4FCDA196A6ABC956A9D7"><enum>(2)</enum><text>methods to improve
the timing, content, and format of disclosures to investors with respect to
financial intermediaries, investment products, and investment services;</text>
</paragraph><paragraph id="HFCBE90E68D624213B9F21F069FD7E635"><enum>(3)</enum><text>the most useful
and understandable relevant information that retail investors need to make
informed financial decisions before engaging a financial intermediary or
purchasing an investment product or service that is typically sold to retail
investors, including shares of open-end companies, as that term is defined in
section 5 of the Investment Company Act of 1940 (15 U.S.C. 80a–5) that are
registered under section 8 of that Act;</text>
</paragraph><paragraph id="H6E1AA9B4F3304EEC9AEECDF8820217BF"><enum>(4)</enum><text>methods to
increase the transparency of expenses and conflicts of interests in
transactions involving investment services and products, including shares of
open-end companies described in paragraph (3);</text>
</paragraph><paragraph id="H04A60AE95A824EC8A1A015EB88B7532A"><enum>(5)</enum><text>the most effective
existing private and public efforts to educate investors; and</text>
</paragraph><paragraph id="H65272588EA52435CB5BF04C7FD743793"><enum>(6)</enum><text>in consultation
with the Financial Literacy and Education Commission, a strategy (including, to
the extent practicable, measurable goals and objectives) to increase the
financial literacy of investors in order to bring about a positive change in
investor behavior.</text>
</paragraph></subsection><subsection id="HCE19365C6E6F45139CD2512EC79E0F0B"><enum>(b)</enum><header>Report</header><text>Not
later than 2 years after the date of enactment of this Act, the Commission
shall submit a report on the study required under subsection (a) to—</text>
<paragraph id="H6185F82EE7B24F99B0C792E46E235DA4"><enum>(1)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate; and</text>
</paragraph><paragraph id="H620C91DE4F304C3CAB964AA67A3F71BB"><enum>(2)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</paragraph></subsection></section><section id="H7C4716592B7A447C9CE8094E2E887938"><enum>918.</enum><header>Study regarding
mutual fund advertising</header>
<subsection id="H3C77A81FE5AC4E3B88ACD1D74C28D6CE"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study on mutual fund advertising to identify—</text>
<paragraph id="HC464EB9DD15341B88BB1A1E649542764"><enum>(1)</enum><text>existing and
proposed regulatory requirements for open-end investment company
advertisements;</text>
</paragraph><paragraph id="HFEC9ABC983054A188E54B7E7CDDB07A1"><enum>(2)</enum><text>current marketing
practices for the sale of open-end investment company shares, including the use
of past performance data, funds that have merged, and incubator funds;</text>
</paragraph><paragraph id="H225680F92DD24D9D9C2B43AEF698DC7B"><enum>(3)</enum><text>the impact of such
advertising on consumers; and</text>
</paragraph><paragraph id="H81CFA05C6F134163A36C705DC12A3316"><enum>(4)</enum><text>recommendations to
improve investor protections in mutual fund advertising and additional
information necessary to ensure that investors can make informed financial
decisions when purchasing shares.</text>
</paragraph></subsection><subsection id="H20260AC1C44644A48FF42110DC5C53CE"><enum>(b)</enum><header>Report</header><text>Not
later than 18 months 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 subsection (a) to—</text>
<paragraph id="H140ACE7E07B94B97B7CAA8E19E83CD43"><enum>(1)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the United States Senate; and</text>
</paragraph><paragraph id="HED77129611E54168850D0B3D27E12D7F"><enum>(2)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</paragraph></subsection></section><section id="H1F887123B3C0431B80DC6D6CE50E5A90"><enum>919.</enum><header>Clarification
of Commission authority to require investor disclosures before purchase of
investment products and services</header><text display-inline="no-display-inline">Section 15 of the Securities Exchange Act of
1934 (15 U.S.C. 78o) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD398A370F1574CA2B7462392A09A7797" style="OLC">
<subsection id="H762CE362FB9D4E99807DC46D029071A9"><enum>(n)</enum><header>Disclosures to
retail investors</header>
<paragraph id="H5BA736526AA8486DA28F776A8660D998"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of the securities laws, the Commission may issue rules
designating documents or information that shall be provided by a broker or
dealer to a retail investor before the purchase of an investment product or
service by the retail investor.</text>
</paragraph><paragraph id="HE67DB8C3CCC04D71AACDE5AB61BA138C"><enum>(2)</enum><header>Considerations</header><text>In
developing any rules under paragraph (1), the Commission shall consider whether
the rules will promote investor protection, efficiency, competition, and
capital formation.</text>
</paragraph><paragraph id="H41404426DB0E407292ACE6CBA06E4796"><enum>(3)</enum><header>Form and
contents of documents and information</header><text>Any documents or
information designated under a rule promulgated under paragraph (1)
shall—</text>
<subparagraph id="H41607B2EB5B744E3BB5B8707B1CEAFE2"><enum>(A)</enum><text>be in a summary
format; and</text>
</subparagraph><subparagraph id="HA6FAB9375B7842DFBC398F334341A75B"><enum>(B)</enum><text>contain clear and
concise information about—</text>
<clause id="H4AE9C3F7A5774ECAAE69ADC871DACC9E"><enum>(i)</enum><text>investment
objectives, strategies, costs, and risks; and</text>
</clause><clause id="H21997E721D96431E820CAE12E62B5EF6"><enum>(ii)</enum><text>any compensation
or other financial incentive received by a broker, dealer, or other
intermediary in connection with the purchase of retail investment
products.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB0D19A68196549E48EB289C71B018058"><enum>919A.</enum><header>Study on
conflicts of interest</header>
<subsection id="H930ED467C0124034BE17D6D420ED6D26"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study—</text>
<paragraph id="H35A7432D8C224094BEB262361AB65A55"><enum>(1)</enum><text>to identify and
examine potential conflicts of interest that exist between the staffs of the
investment banking and equity and fixed income securities analyst functions
within the same firm; and</text>
</paragraph><paragraph id="HB091736544394ACE97C72C4DEEB031A4"><enum>(2)</enum><text>to make
recommendations to Congress designed to protect investors in light of such
conflicts.</text>
</paragraph></subsection><subsection commented="no" id="HC714EAAFDC1A4B31B5788DC2EC7C1B15"><enum>(b)</enum><header>Considerations</header><text>In
conducting the study under subsection (a), the Comptroller General
shall—</text>
<paragraph commented="no" id="H9EEE99FE7BAF4AF9A9EE349F9783D85F"><enum>(1)</enum><text>consider—</text>
<subparagraph commented="no" id="H62F325E7CDF045C3B5F4C72A85C830FE"><enum>(A)</enum><text>the potential for
investor harm resulting from conflicts, including consideration of the forms of
misconduct engaged in by the several securities firms and individuals that
entered into the Global Analyst Research Settlements in 2003 (also known as the
<quote>Global Settlement</quote>);</text>
</subparagraph><subparagraph commented="no" id="HD459766CAFA449089B0A37818FEE0B92"><enum>(B)</enum><text>the nature and
benefits of the undertakings to which those firms agreed in enforcement
proceedings, including firewalls between research and investment banking,
separate reporting lines, dedicated legal and compliance staffs, allocation of
budget, physical separation, compensation, employee performance evaluations,
coverage decisions, limitations on soliciting investment banking business,
disclosures, transparency, and other measures;</text>
</subparagraph><subparagraph commented="no" id="H0DA9C52FD0034B3CAF45BE171633D43C"><enum>(C)</enum><text>whether any such
undertakings should be codified and applied permanently to securities firms, or
whether the Commission should adopt rules applying any such undertakings to
securities firms; and</text>
</subparagraph><subparagraph commented="no" id="H5DE7AE87B5794F1D924DB7F2E3414B44"><enum>(D)</enum><text>whether to
recommend regulatory or legislative measures designed to mitigate possible
adverse consequences to investors arising from the conflicts of interest or to
enhance investor protection or confidence in the integrity of the securities
markets; and</text>
</subparagraph></paragraph><paragraph commented="no" id="HE55887A26CB343108065A2181D940747"><enum>(2)</enum><text>consult with State
attorneys general, State securities officials, the Commission, the Financial
Industry Regulatory Authority (<quote>FINRA</quote>), NYSE Regulation, investor
advocates, brokers, dealers, retail investors, institutional investors, and
academics.</text>
</paragraph></subsection><subsection commented="no" id="H6A45BE2CF1EC41A09EA05C78C406ED47"><enum>(c)</enum><header>Report</header><text>The
Comptroller General shall submit a report on the results of the study required
by this section to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives,
not later than 18 months after the date of enactment of this Act.</text>
</subsection></section><section id="H49DBFDCDB19947ED973ACE96FE16DB8C"><enum>919B.</enum><header>Study on
improved investor access to information on investment advisers and
broker-dealers</header>
<subsection id="H183F8A45AFFD45999C9A1285BE1D23C2"><enum>(a)</enum><header>Study</header>
<paragraph id="H1F2105F09694490A8E1B6582EDC9B289"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the date of enactment of
this Act, the Commission shall complete a study, including recommendations, of
ways to improve the access of investors to registration information (including
disciplinary actions, regulatory, judicial, and arbitration proceedings, and
other information) about registered and previously registered investment
advisers, associated persons of investment advisers, brokers and dealers and
their associated persons on the existing Central Registration Depository and
Investment Adviser Registration Depository systems, as well as identify
additional information that should be made publicly available.</text>
</paragraph><paragraph id="HFE9FB59175E74DFDA36A9D56AD7AAE08"><enum>(2)</enum><header>Contents</header><text>The
study required by subsection (a) shall include an analysis of the advantages
and disadvantages of further centralizing access to the information contained
in the 2 systems, including—</text>
<subparagraph id="HDDBDA3BB46CE4D65B39403921F88B4C3"><enum>(A)</enum><text>identification of
those data pertinent to investors; and</text>
</subparagraph><subparagraph id="H471146C6EE504949A63D253BE611CD7E"><enum>(B)</enum><text>the identification
of the method and format for displaying and publishing such data to enhance
accessibility by and utility to investors.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE67B74063CE24A57B57D06F5E994734C"><enum>(b)</enum><header>Implementation</header><text>Not
later than 18 months after the date of completion of the study required by
subsection (a), the Commission shall implement any recommendations of the
study.</text>
</subsection></section><section id="H172E850900E8447887F85021B68187EF"><enum>919C.</enum><header>Study on
financial planners and the use of financial designations</header>
<subsection id="H3EE60F56DBD341448CE4068E36B0CC38"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall conduct a study to evaluate—</text>
<paragraph id="HCD13224FBD9B481893F74A56111A6863"><enum>(1)</enum><text>the effectiveness
of State and Federal regulations to protect investors and other consumers from
individuals who hold themselves out as financial planners through the use of
misleading titles, designations, or marketing materials;</text>
</paragraph><paragraph id="HF1490649DB0A4DF780546F0684752368"><enum>(2)</enum><text>current State and
Federal oversight structure and regulations for financial planners; and</text>
</paragraph><paragraph id="H2877434B6EDA4ACCB0D63C38F493D716"><enum>(3)</enum><text>legal or
regulatory gaps in the regulation of financial planners and other individuals
who provide or offer to provide financial planning services to
consumers.</text>
</paragraph></subsection><subsection id="H4D3947FE5988485A9804CF3C9C340A2D"><enum>(b)</enum><header>Considerations</header><text>In
conducting the study required under subsection (a), the Comptroller General
shall consider—</text>
<paragraph id="H6E72D48230D44F24A4D6FD52EA2D7E76"><enum>(1)</enum><text>the role of
financial planners in providing advice regarding the management of financial
resources, including investment planning, income tax planning, education
planning, retirement planning, estate planning, and risk management;</text>
</paragraph><paragraph id="H14CBD5498EDA43E890DA4834A9C07CDC"><enum>(2)</enum><text>whether current
regulations at the State and Federal level provide adequate ethical and
professional standards for financial planners;</text>
</paragraph><paragraph commented="no" id="HB3E6061909C84A93B90833BC8D56BDB0"><enum>(3)</enum><text display-inline="yes-display-inline">the possible risk posed to investors and
other consumers by individuals who hold themselves out as financial planners or
as otherwise providing financial planning services in connection with the sale
of financial products, including insurance and securities;</text>
</paragraph><paragraph commented="no" id="H25E0D05A70C84D4AB2495D11E89F6895"><enum>(4)</enum><text display-inline="yes-display-inline">the possible risk posed to investors and
other consumers by individuals who otherwise use titles, designations, or
marketing materials in a misleading way in connection with the delivery of
financial advice;</text>
</paragraph><paragraph id="HBB761818C6A9440C97F549D0C7DFA46D"><enum>(6)</enum><text>the ability of
investors and other consumers to understand licensing requirements and
standards of care that apply to individuals who hold themselves out as
financial planners or as otherwise providing financial planning
services;</text>
</paragraph><paragraph id="H771C394BDD61465BB1DB9C39E0840148"><enum>(7)</enum><text display-inline="yes-display-inline">the possible benefits to investors and
other consumers of regulation and professional oversight of financial planners;
and</text>
</paragraph><paragraph id="H2CF06CDEC5D64421B67556E27731A248"><enum>(8)</enum><text>any other
consideration that the Comptroller General deems necessary or appropriate to
effectively execute the study required under subsection (a).</text>
</paragraph></subsection><subsection id="HF4FDFC97C5794C80AD80A54F88887332"><enum>(c)</enum><header>Recommendations</header><text display-inline="yes-display-inline">In providing recommendations for the
appropriate regulation of financial planners and other individuals who provide
or offer to provide financial planning services, in order to protect investors
and other consumers of financial planning services, the Comptroller General
shall consider—</text>
<paragraph id="HDEF7C0ABB49F424B8850967BC2CD431F"><enum>(1)</enum><text>the appropriate
structure for regulation of financial planners and individuals providing
financial planning services; and</text>
</paragraph><paragraph id="H4B6D42802F674BA7B149DDE98A7246A1"><enum>(2)</enum><text display-inline="yes-display-inline">the appropriate scope of the regulations
needed to protect investors and other consumers, including but not limited to
the need to establish competency standards, practice standards, ethical
guidelines, disciplinary authority, and transparency to investors and other
consumers.</text>
</paragraph></subsection><subsection id="H54B4F21002214F5AA102548DF1C98449"><enum>(d)</enum><header>Report</header>
<paragraph id="HFB476F62D4DB4B0ABA2E582FA216F2A5"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit a report on the study required
under subsection (a) to—</text>
<subparagraph id="H9E45C5B9C4BD49DBB2555FA93AE3FCB3"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate;</text>
</subparagraph><subparagraph id="HCB8A7CC6448744BAB0E81D38BFB9D40F"><enum>(B)</enum><text>the Special
Committee on Aging of the Senate; and</text>
</subparagraph><subparagraph id="H753BD87E16654E0F97DD5BB537A52EA0"><enum>(C)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30A75CA9F58840EB9F0DADD14ECDDADC"><enum>(2)</enum><header>Content
requirements</header><text>The report required under paragraph (1) shall
describe the findings and determinations made by the Comptroller General in
carrying out the study required under subsection (a), including a description
of the considerations, analysis, and government, public, industry, nonprofit
and consumer input that the Comptroller General considered to make such
findings, conclusions, and legislative, regulatory, or other
recommendations.</text>
</paragraph></subsection></section><section commented="no" id="H6715DEBBC8D644E7BCB42D86ECCA9B1D"><enum>919D.</enum><header>Ombudsman</header><text display-inline="no-display-inline">Section 4(g) of the Securities Exchange Act
of 1934, as added by section 914, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H4E4696A6CA484A80A51C28B5B128927C" style="OLC">
<paragraph commented="no" id="HF328552172F5415C87C8A338C56D5E9D"><enum>(8)</enum><header>Ombudsman</header>
<subparagraph commented="no" id="H7E5BFB7ABD6B4DB2A864278AD86C98BF"><enum>(A)</enum><header>Appointment</header><text>Not
later than 180 days after the date on which the first Investor Advocate is
appointed under paragraph (2)(A)(i), the Investor Advocate shall appoint an
Ombudsman, who shall report directly to the Investor Advocate.</text>
</subparagraph><subparagraph commented="no" id="H8B5EF354FF134FFDB83A9383F7B261EC"><enum>(B)</enum><header>Duties</header><text>The
Ombudsman appointed under subparagraph (A) shall—</text>
<clause commented="no" id="H1A1AF639F80C42DA83425A7B8B5C28AC"><enum>(i)</enum><text>act as a liaison
between the Commission and any retail investor in resolving problems that
retail investors may have with the Commission or with self-regulatory
organizations;</text>
</clause><clause commented="no" id="HEF02EE2FBC2741C69BD1F6BF7BFDBD39"><enum>(ii)</enum><text>review and make
recommendations regarding policies and procedures to encourage persons to
present questions to the Investor Advocate regarding compliance with the
securities laws; and</text>
</clause><clause commented="no" id="H09C10FC4D9F8431499938C9937C79CB5"><enum>(iii)</enum><text>establish
safeguards to maintain the confidentiality of communications between the
persons described in clause (ii) and the Ombudsman.</text>
</clause></subparagraph><subparagraph commented="no" id="HEA66B4838E6C4E1A9BB0EC84B5D3D251"><enum>(C)</enum><header>Limitation</header><text>In
carrying out the duties of the Ombudsman under subparagraph (B), the Ombudsman
shall utilize personnel of the Commission to the extent practicable. Nothing in
this paragraph shall be construed as replacing, altering, or diminishing the
activities of any ombudsman or similar office of any other agency.</text>
</subparagraph><subparagraph commented="no" id="H5386061AF5F648D38CDDB687CBF2D729"><enum>(D)</enum><header>Report</header><text>The
Ombudsman shall submit a semiannual report to the Investor Advocate that
describes the activities and evaluates the effectiveness of the Ombudsman
during the preceding year. The Investor Advocate shall include the reports
required under this section in the reports required to be submitted by the
Inspector Advocate under paragraph
(6).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="HB4A5569C6B7442CCA489D66A67476A07"><enum>B</enum><header>Increasing
regulatory enforcement and remedies</header>
<section commented="no" id="HFDF0D3D24B0C46C0875895A969F6C638"><enum>921.</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header>
<subsection commented="no" id="HECBDC20D537942AFB25F1CF725829B5A"><enum>(a)</enum><header>Amendment to
Securities Exchange Act of 1934</header><text>Section 15 of the Securities
Exchange Act of 1934 (15 U.S.C. 78o), as amended by this title, is further
amended by adding at the end the following new subsection:</text>
<quoted-block id="HD52F2550F0174D61A19B61459FF602AA" style="OLC">
<subsection commented="no" id="H7B6C2686EB39417CACFC9693ABFE739B"><enum>(o)</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header><text>The Commission, by
rule, may prohibit, or impose conditions or limitations on the use of,
agreements that require customers or clients of any broker, dealer, or
municipal securities dealer to arbitrate any future dispute between them
arising under the Federal securities laws, the rules and regulations
thereunder, or the rules of a self-regulatory organization if it finds that
such prohibition, imposition of conditions, or limitations are in the public
interest and for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H69FE3556618441F6A26723F8039A981A"><enum>(b)</enum><header>Amendment to
Investment Advisers Act of 1940</header><text>Section 205 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–5) is amended by adding at the end the
following new subsection:</text>
<quoted-block id="H55546D3EA6BE44C4876182AE8A2D6351" style="OLC">
<subsection commented="no" id="H4575E5B83BBE473EACB9C4B5CBB28873"><enum>(f)</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header><text>The Commission, by
rule, may prohibit, or impose conditions or limitations on the use of,
agreements that require customers or clients of any investment adviser to
arbitrate any future dispute between them arising under the Federal securities
laws, the rules and regulations thereunder, or the rules of a self-regulatory
organization if it finds that such prohibition, imposition of conditions, or
limitations are in the public interest and for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H94F4CAE6BE254CC8BDB9831452E1C3C6"><enum>922.</enum><header>Whistleblower
protection</header>
<subsection id="HA44F292508CD42478FB34316B2ED9904"><enum>(a)</enum><header>In
general</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.) is amended by inserting after section 21E the following:</text>
<quoted-block display-inline="no-display-inline" id="HB665D7D10FEC4518A34A65448B7AAF6F" style="OLC">
<section id="H588B735D5CC24666AD89E8EB15C56DA9"><enum>21F.</enum><header>Securities
whistleblower incentives and protection</header>
<subsection id="H9544B5E8EEF3459EA7DD9DE893EA50FA"><enum>(a)</enum><header>Definitions</header><text>In
this section the following definitions shall apply:</text>
<paragraph id="HCFC5977D72C144AFA6B7C1D4888E87DF"><enum>(1)</enum><header>Covered judicial
or administrative action</header><text>The term <term>covered judicial or
administrative action</term> means any judicial or administrative action
brought by the Commission under the securities laws that results in monetary
sanctions exceeding $1,000,000.</text>
</paragraph><paragraph id="H3F7A6711CEC3461E9C2121AA74E60AEE"><enum>(2)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Securities and Exchange Commission Investor
Protection Fund.</text>
</paragraph><paragraph id="H330CF37EC9DE4FCFA56BC4D3A81D8BA8"><enum>(3)</enum><header>Original
information</header><text>The term <term>original information</term> means
information that—</text>
<subparagraph id="H2F2026714D4C45E18A41ABF2B785D912"><enum>(A)</enum><text>is derived from
the independent knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph id="H0CBAF4E63D824DA8A05618C68D564AAE"><enum>(B)</enum><text>is not known to
the Commission from any other source, unless the whistleblower is the original
source of the information; and</text>
</subparagraph><subparagraph id="HA65FB99707EC417396F8904695BC7AF8"><enum>(C)</enum><text>is not exclusively
derived from an allegation made in a judicial or administrative hearing, in a
governmental report, hearing, audit, or investigation, or from the news media,
unless the whistleblower is a source of the information.</text>
</subparagraph></paragraph><paragraph id="H07322BD4F8AE426B9FCB09BBC60D1FFA"><enum>(4)</enum><header>Monetary
sanctions</header><text>The term <term>monetary sanctions</term>, when used
with respect to any judicial or administrative action, means—</text>
<subparagraph id="HD8B68EC4D2B840D8B2D0F06DD600CE1D"><enum>(A)</enum><text>any monies,
including penalties, disgorgement, and interest, ordered to be paid; and</text>
</subparagraph><subparagraph id="HF9798BC6D09B419C84E6041BD23E66E7"><enum>(B)</enum><text>any monies
deposited into a disgorgement fund or other fund pursuant to section 308(b) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(b)), as a result of such action
or any settlement of such action.</text>
</subparagraph></paragraph><paragraph id="H6CFA47E717714DE98474F3223FFE75F2"><enum>(5)</enum><header>Related
action</header><text>The term <term>related action</term>, when used with
respect to any judicial or administrative action brought by the Commission
under the securities laws, means any judicial or administrative action brought
by an entity described in subclauses (I) through (IV) of subsection
(h)(2)(D)(i) that is based upon the original information provided by a
whistleblower pursuant to subsection (a) that led to the successful enforcement
of the Commission action.</text>
</paragraph><paragraph commented="no" id="H407C5E8F4C7849B982333D5D523A22F9"><enum>(6)</enum><header>Whistleblower</header><text>The
term <term>whistleblower</term> means any individual who provides, or 2 or more
individuals acting jointly who provide, information relating to a violation of
the securities laws to the Commission, in a manner established, by rule or
regulation, by the Commission.</text>
</paragraph></subsection><subsection id="HC515BF40EFE344C1B339F75E730FBD2D"><enum>(b)</enum><header>Awards</header>
<paragraph id="HB5F25FEFE91648A196BE73E4E8DB019D"><enum>(1)</enum><header>In
general</header><text>In any covered judicial or administrative action, or
related action, the Commission, under regulations prescribed by the Commission
and subject to subsection (c), shall pay an award or awards to 1 or more
whistleblowers who voluntarily provided original information to the Commission
that led to the successful enforcement of the covered judicial or
administrative action, or related action, in an aggregate amount equal
to—</text>
<subparagraph id="H341B42BC8F284FACBCD0DD3787F4FA76"><enum>(A)</enum><text>not less than 10
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions; and</text>
</subparagraph><subparagraph id="H46EDE459E83B4C9EA166B3A2FC69C3F0"><enum>(B)</enum><text>not more than 30
percent, in total, of what has been collected of the monetary sanctions imposed
in the action or related actions.</text>
</subparagraph></paragraph><paragraph id="HDDC1A98D21DD4F2ABC54FCC7F49515B7"><enum>(2)</enum><header>Payment of
awards</header><text>Any amount paid under paragraph (1) shall be paid from the
Fund.</text>
</paragraph></subsection><subsection id="HBD16DE91BD80424BA29640E011A70ABD"><enum>(c)</enum><header>Determination of
amount of award; denial of award</header>
<paragraph id="H470C77942B534BC8876E9E98B4BC1AF6"><enum>(1)</enum><header>Determination of
amount of award</header>
<subparagraph id="H33AEB7C63E5645D4A3D66E9781A3A6C7"><enum>(A)</enum><header>Discretion</header><text>The
determination of the amount of an award made under subsection (b) shall be in
the discretion of the Commission.</text>
</subparagraph><subparagraph id="H0024496C63AB457996956436E12C90E6"><enum>(B)</enum><header>Criteria</header><text>In
determining the amount of an award made under subsection (b), the
Commission—</text>
<clause id="H621239253AD8401EBF5ADB97567FD463"><enum>(i)</enum><text>shall take into
consideration—</text>
<subclause id="H9B77C3B954D14471A75145F7F0795BD3"><enum>(I)</enum><text>the significance
of the information provided by the whistleblower to the success of the covered
judicial or administrative action;</text>
</subclause><subclause id="H3553873FA1284087B8332D1414A34595"><enum>(II)</enum><text>the degree of
assistance provided by the whistleblower and any legal representative of the
whistleblower in a covered judicial or administrative action;</text>
</subclause><subclause id="H4194C1CA6D3C4AD79C5D87EA9EE7643A"><enum>(III)</enum><text>the programmatic
interest of the Commission in deterring violations of the securities laws by
making awards to whistleblowers who provide information that lead to the
successful enforcement of such laws; and</text>
</subclause><subclause id="H19486B90FE064716AE28988A7F3EF859"><enum>(IV)</enum><text>such additional
relevant factors as the Commission may establish by rule or regulation;
and</text>
</subclause></clause><clause id="HABBB6247AF0B42BA88913C70196C8AF3"><enum>(ii)</enum><text>shall not take
into consideration the balance of the Fund.</text>
</clause></subparagraph></paragraph><paragraph id="H11401A2240AB4CB8992D9E7516DD507A"><enum>(2)</enum><header>Denial of
award</header><text>No award under subsection (b) shall be made—</text>
<subparagraph id="H4FDD330B3F604D77B97AA97B62D81E0E"><enum>(A)</enum><text>to any
whistleblower who is, or was at the time the whistleblower acquired the
original information submitted to the Commission, a member, officer, or
employee of—</text>
<clause id="HC67080ED13D2441E9B3A7A0F47258D4F"><enum>(i)</enum><text>an
appropriate regulatory agency;</text>
</clause><clause id="H3E14B69285B44077838A071F3F854A50"><enum>(ii)</enum><text>the Department of
Justice;</text>
</clause><clause id="H66F31D9F9364483386938B8A0DADABAE"><enum>(iii)</enum><text>a
self-regulatory organization;</text>
</clause><clause id="H8584369FD64B444FAF096CE7426B1C27"><enum>(iv)</enum><text>the Public
Company Accounting Oversight Board; or</text>
</clause><clause id="H9F80D0A88D614B32A380D0BA22B5EFDE"><enum>(v)</enum><text>a
law enforcement organization;</text>
</clause></subparagraph><subparagraph id="HE58CC05BE0644AFEA278102E89F4D01A"><enum>(B)</enum><text>to any
whistleblower who is convicted of a criminal violation related to the judicial
or administrative action for which the whistleblower otherwise could receive an
award under this section;</text>
</subparagraph><subparagraph id="H270340564CEE4E27AEC6C99596D52F64"><enum>(C)</enum><text>to any
whistleblower who gains the information through the performance of an audit of
financial statements required under the securities laws and for whom such
submission would be contrary to the requirements of section 10A of the
Securities Exchange Act of 1934 (15 U.S.C. 78j–1); or</text>
</subparagraph><subparagraph id="H40F25C8F5C4347BB9F0D9A899DE66916"><enum>(D)</enum><text>to any
whistleblower who fails to submit information to the Commission in such form as
the Commission may, by rule, require.</text>
</subparagraph></paragraph></subsection><subsection id="H4CFF73DCE6FA4602AF7DA7F3CB56709C"><enum>(d)</enum><header>Representation</header>
<paragraph id="H775E7970751D4D6EA6DB41C402883FFA"><enum>(1)</enum><header>Permitted
representation</header><text>Any whistleblower who makes a claim for an award
under subsection (b) may be represented by counsel.</text>
</paragraph><paragraph id="HCD783AFD9D1B4397AB6066801CD5327F"><enum>(2)</enum><header>Required
representation</header>
<subparagraph id="HA02D7690AB3546B2821266B79226B238"><enum>(A)</enum><header>In
general</header><text>Any whistleblower who anonymously makes a claim for an
award under subsection (b) shall be represented by counsel if the whistleblower
anonymously submits the information upon which the claim is based.</text>
</subparagraph><subparagraph id="HD732EB3F02BE4F4FBBBC7E242A9EE0D1"><enum>(B)</enum><header>Disclosure of
identity</header><text>Prior to the payment of an award, a whistleblower shall
disclose the identity of the whistleblower and provide such other information
as the Commission may require, directly or through counsel for the
whistleblower.</text>
</subparagraph></paragraph></subsection><subsection id="H1FDB517EF6A24288990650BB3E96AA3D"><enum>(e)</enum><header>No contract
necessary</header><text>No contract with the Commission is necessary for any
whistleblower to receive an award under subsection (b), unless otherwise
required by the Commission by rule or regulation.</text>
</subsection><subsection id="H42ADD5F05A6F499CB56BBC8DCFD944FA"><enum>(f)</enum><header>Appeals</header><text display-inline="yes-display-inline">Any determination made under this section,
including whether, to whom, or in what amount to make awards, shall be in the
discretion of the Commission. Any such determination, except the determination
of the amount of an award if the award was made in accordance with subsection
(b), may be appealed to the appropriate court of appeals of the United States
not more than 30 days after the determination is issued by the Commission. The
court shall review the determination made by the Commission in accordance with
section 706 of title 5, United States Code.</text>
</subsection><subsection id="HB21B0C254C7E4873BE7266DC8A15E1F8"><enum>(g)</enum><header>Investor
Protection Fund</header>
<paragraph id="HDF42F4AAB3C44785BF0DC8E94C15071C"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a fund to be known as the <quote>Securities and Exchange Commission
Investor Protection Fund</quote>.</text>
</paragraph><paragraph id="H4D30AF451D6C4B30AA416D30539DB88C"><enum>(2)</enum><header>Use of
Fund</header><text>The Fund shall be available to the Commission, without
further appropriation or fiscal year limitation, for—</text>
<subparagraph id="H890D728217294160801DD0DFA947D455"><enum>(A)</enum><text>paying awards to
whistleblowers as provided in subsection (b); and</text>
</subparagraph><subparagraph id="H269D92BC599D4327BE703887FC0B39A3"><enum>(B)</enum><text>funding the
activities of the Inspector General of the Commission under section
4(i).</text>
</subparagraph></paragraph><paragraph id="H19DD8358E90142BBB0E73653586C0631"><enum>(3)</enum><header>Deposits and
credits</header>
<subparagraph id="H70F9A3FD4D1E4C8B8F9BBA89D714C586"><enum>(A)</enum><header> In
general</header><text>There shall be deposited into or credited to the Fund an
amount equal to—</text>
<clause id="H2F2665BD5AF541129F3F435B191E8602"><enum>(i)</enum><text>any monetary
sanction collected by the Commission in any judicial or administrative action
brought by the Commission under the securities laws that is not added to a
disgorgement fund or other fund under section 308 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7246) or otherwise distributed to victims of a violation of the
securities laws, or the rules and regulations thereunder, underlying such
action, unless the balance of the Fund at the time the monetary sanction is
collected exceeds $300,000,000;</text>
</clause><clause id="HC5001FB3D9334CE689A5E9B8A974F0D3"><enum>(ii)</enum><text>any monetary
sanction added to a disgorgement fund or other fund under section 308 of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246) that is not distributed to the
victims for whom the Fund was established, unless the balance of the
disgorgement fund at the time the determination is made not to distribute the
monetary sanction to such victims exceeds $200,000,000; and</text>
</clause><clause id="H06DAC51ADDB442C5B055700C3EE62720"><enum>(iii)</enum><text>all income from
investments made under paragraph (4).</text>
</clause></subparagraph><subparagraph id="HD5110D01955A44DE88603B625BDDC284"><enum>(B)</enum><header>Additional
amounts</header><text>If the amounts deposited into or credited to the Fund
under subparagraph (A) are not sufficient to satisfy an award made under
subsection (b), there shall be deposited into or credited to the Fund an amount
equal to the unsatisfied portion of the award from any monetary sanction
collected by the Commission in the covered judicial or administrative action on
which the award is based.</text>
</subparagraph></paragraph><paragraph id="HE629AF8460B3458A8F08138FB78E94DC"><enum>(4)</enum><header>Investments</header>
<subparagraph id="H9297D302404D407F868285E2470FB6F5"><enum>(A)</enum><header>Amounts in fund
may be invested</header><text>The Commission may request the Secretary of the
Treasury to invest the portion of the Fund that is not, in the discretion of
the Commission, required to meet the current needs of the Fund.</text>
</subparagraph><subparagraph id="H4AB57B1E61AA4DBC829AC45F30AB3941"><enum>(B)</enum><header>Eligible
investments</header><text>Investments shall be made by the Secretary of the
Treasury in obligations of the United States or obligations that are guaranteed
as to principal and interest by the United States, with maturities suitable to
the needs of the Fund as determined by the Commission on the record.</text>
</subparagraph><subparagraph id="H373CE084EAEB4AD8BDF2B94B69E7BC98"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Fund shall be credited to the
Fund.</text>
</subparagraph></paragraph><paragraph id="HD04AB9C7B5D448D495E156988144E561"><enum>(5)</enum><header>Reports to
Congress</header><text>Not later than October 30 of each fiscal year beginning
after the date of enactment of this subsection, the Commission shall submit to
the Committee on Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of Representatives a report
on—</text>
<subparagraph id="H1DB0FCEB37B34EEBBF3C64082F9D2D3B"><enum>(A)</enum><text>the whistleblower
award program, established under this section, including—</text>
<clause id="HEBB97233A0A74003A60D41E1EF005A31"><enum>(i)</enum><text>a
description of the number of awards granted; and</text>
</clause><clause id="HC96A18B2244647ADB701C6B6D04C4E5F"><enum>(ii)</enum><text>the types of
cases in which awards were granted during the preceding fiscal year;</text>
</clause></subparagraph><subparagraph id="H21B335AB341A497AAFA1C1A83A56A355"><enum>(B)</enum><text>the balance of the
Fund at the beginning of the preceding fiscal year;</text>
</subparagraph><subparagraph id="H8D2C9B82CC144C938D7759DA2A56BF9D"><enum>(C)</enum><text>the amounts
deposited into or credited to the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="H5F2EABAAD8C44856AF3D394F6BF4D9C7"><enum>(D)</enum><text>the amount of
earnings on investments made under paragraph (4) during the preceding fiscal
year;</text>
</subparagraph><subparagraph id="HBBA5ADB301CC4B8E81265CA48C78CC52"><enum>(E)</enum><text>the amount paid
from the Fund during the preceding fiscal year to whistleblowers pursuant to
subsection (b);</text>
</subparagraph><subparagraph id="H80D74EAEBF944927BD876A9D2174C4C9"><enum>(F)</enum><text>the balance of the
Fund at the end of the preceding fiscal year; and</text>
</subparagraph><subparagraph id="H7051E8ECB55C4ED597F451CE2C4260D7"><enum>(G)</enum><text>a complete set of
audited financial statements, including—</text>
<clause id="HCB60DF1DF3C24CF8BBA7517F79E1B331"><enum>(i)</enum><text>a
balance sheet;</text>
</clause><clause id="H54EBD8719143420AA01DE8D1646F26EA"><enum>(ii)</enum><text>income statement;
and</text>
</clause><clause id="HBF88D04BD2B541E0B1C96D4470DCC3EF"><enum>(iii)</enum><text>cash flow
analysis.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HCEC51AE2E2FF44C98730C29A54A4164E"><enum>(h)</enum><header>Protection of
whistleblowers</header>
<paragraph id="H04CD2067B967493D92236D5DEA701591"><enum>(1)</enum><header>Prohibition
against retaliation</header>
<subparagraph id="HA18140B78FBD463CA1860D6E683C6FBA"><enum>(A)</enum><header>In
general</header><text>No employer may discharge, demote, suspend, threaten,
harass, directly or indirectly, or in any other manner discriminate against, a
whistleblower in the terms and conditions of employment because of any lawful
act done by the whistleblower—</text>
<clause id="H3B69B8FCC1824AC6820DDE0876DF2D46"><enum>(i)</enum><text>in
providing information to the Commission in accordance with this section;</text>
</clause><clause id="H2B16AC9030B045C8BD2C6FABAAAFD119"><enum>(ii)</enum><text>in initiating,
testifying in, or assisting in any investigation or judicial or administrative
action of the Commission based upon or related to such information; or</text>
</clause><clause id="HE4B498EA8DEF44AFB5DD888020525081"><enum>(iii)</enum><text>in making
disclosures that are required or protected under the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7201 et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.), including section 10A(m) of such Act (15 U.S.C. 78f(m)), section 1513(e)
of title 18, United States Code, and any other law, rule, or regulation subject
to the jurisdiction of the Commission.</text>
</clause></subparagraph><subparagraph id="HA32C1FD6A93F49A6B40F14183834BA89"><enum>(B)</enum><header>Enforcement</header>
<clause id="H46934E85D6F946E8A7733CFB59EC1686"><enum>(i)</enum><header>Cause of
action</header><text>An individual who alleges discharge or other
discrimination in violation of subparagraph (A) may bring an action under this
subsection in the appropriate district court of the United States for the
relief provided in subparagraph (C).</text>
</clause><clause id="H87B9A89BC9DF465384B659FC2F8E196F"><enum>(ii)</enum><header>Subpoenas</header><text>A
subpoena requiring the attendance of a witness at a trial or hearing conducted
under this section may be served at any place in the United States.</text>
</clause><clause id="H80D663531C174E78B7FC9F1A4EA0A5F8"><enum>(iii)</enum><header>Statute of
limitations</header>
<subclause id="H04E8DB8430BD4F5DA4C30C9146BC442D"><enum>(I)</enum><header>In
general</header><text>An action under this subsection may not be
brought—</text>
<item id="H5EBEE1643FA44F2FBB6890C3A9B55235"><enum>(aa)</enum><text>more than 6 years
after the date on which the violation of subparagraph (A) occurred; or</text>
</item><item id="H7F5907947C1A48478DBDDA888973F88D"><enum>(bb)</enum><text>more than 3 years
after the date when facts material to the right of action are known or
reasonably should have been known by the employee alleging a violation of
subparagraph (A).</text>
</item></subclause><subclause id="HED0C75EFD41F4FA3AC618CE8B21D6E10"><enum>(II)</enum><header>Required action
within 10 years</header><text>Notwithstanding subclause (I), an action under
this subsection may not in any circumstance be brought more than 10 years after
the date on which the violation occurs.</text>
</subclause></clause></subparagraph><subparagraph id="HFD671D61563C4906870EBF400F99BF2C"><enum>(C)</enum><header>Relief</header><text>Relief
for an individual prevailing in an action brought under subparagraph (B) shall
include—</text>
<clause id="HD8E0221D6D6D42C3AD6B059253683D97"><enum>(i)</enum><text>reinstatement with
the same seniority status that the individual would have had, but for the
discrimination;</text>
</clause><clause id="H18B3D30C4B904C35B6DCC15B2DF20B87"><enum>(ii)</enum><text>2
times the amount of back pay otherwise owed to the individual, with interest;
and</text>
</clause><clause id="HB81535B5B0F1477597C00CD2AEDDF31A"><enum>(iii)</enum><text>compensation for
litigation costs, expert witness fees, and reasonable attorneys’ fees.</text>
</clause></subparagraph></paragraph><paragraph id="H8E2E1C0E376541FA959CFEC6914EB22D"><enum>(2)</enum><header>Confidentiality</header>
<subparagraph id="H8D0BA8A555DA4949819E16A03BDB0C35"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraphs (B) and (C), the Commission and any officer or employee of the
Commission shall not disclose any information, including information provided
by a whistleblower to the Commission, which could reasonably be expected to
reveal the identity of a whistleblower, except in accordance with the
provisions of section 552a of title 5, United States Code, unless and until
required to be disclosed to a defendant or respondent in connection with a
public proceeding instituted by the Commission or any entity described in
subparagraph (C). 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.</text>
</subparagraph><subparagraph id="H6A3ABDDFAD484887A003969C2D0446AF"><enum>(B)</enum><header>Exempted
statute</header><text>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.</text>
</subparagraph><subparagraph id="H63B9FEA56BFD4E73BA5E09F6F30AE884"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in this section is intended to limit, or
shall be construed to limit, the ability of the Attorney General to present
such evidence to a grand jury or to share such evidence with potential
witnesses or defendants in the course of an ongoing criminal
investigation.</text>
</subparagraph><subparagraph id="H64D98D16BC8D4B99873E0C91BD978395"><enum>(D)</enum><header>Availability to
government agencies</header>
<clause id="H53CD9750162A40788E61C642C831DE86"><enum>(i)</enum><header>In
general</header><text>Without the loss of its status as confidential in the
hands of the Commission, all information referred to in subparagraph (A) may,
in the discretion of the Commission, when determined by the Commission to be
necessary to accomplish the purposes of this Act and to protect investors, be
made available to—</text>
<subclause id="HD07189034E4A4A32A5D96DD171D56C3E"><enum>(I)</enum><text>the Attorney
General of the United States;</text>
</subclause><subclause id="HCB645DE971614FED8B808DDAD7A706A1"><enum>(II)</enum><text>an appropriate
regulatory authority;</text>
</subclause><subclause id="HCCE391E5204F49B8B31CA083F3F74E6C"><enum>(III)</enum><text>a
self-regulatory organization;</text>
</subclause><subclause id="H631CB3B14C974839A9348637D1E1F6C8"><enum>(IV)</enum><text>a State attorney
general in connection with any criminal investigation;</text>
</subclause><subclause id="H3019AB53955D4289A114E6B08EE1D0E1"><enum>(V)</enum><text>any appropriate
State regulatory authority;</text>
</subclause><subclause id="H8A3655E072694C4F855CF8F172E800B0"><enum>(VI)</enum><text>the Public
Company Accounting Oversight Board;</text>
</subclause><subclause id="HDA479DCA1C3E406EA4C16A5C97B374EF"><enum>(VII)</enum><text>a foreign
securities authority; and</text>
</subclause><subclause id="HEE29C89F3FC34F9DAC069A2E08879E66"><enum>(VIII)</enum><text>a foreign law
enforcement authority.</text>
</subclause></clause><clause id="H6FA2194C575A40F897D18D1E4DAFD355"><enum>(ii)</enum><header>Confidentiality</header>
<subclause id="H868C8360203B4C06ACA52182574155FE"><enum>(I)</enum><header>In
general</header><text>Each of the entities described in subclauses (I) through
(VI) of clause (i) shall maintain such information as confidential in
accordance with the requirements established under subparagraph (A).</text>
</subclause><subclause id="H8F4B3CBC0F10442EA6F319362943004C"><enum>(II)</enum><header>Foreign
authorities</header><text>Each of the entities described in subclauses (VII)
and (VIII) of clause (i) shall maintain such information in accordance with
such assurances of confidentiality as the Commission determines
appropriate.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H2AB1FDD410884A209A7F3E373B9AE372"><enum>(3)</enum><header>Rights
retained</header><text>Nothing in this section shall be deemed to diminish the
rights, privileges, or remedies of any whistleblower under any Federal or State
law, or under any collective bargaining agreement.</text>
</paragraph></subsection><subsection id="H2EB49B9961D74951A69B5B3168DA6C93"><enum>(i)</enum><header>Provision of
false information</header><text>A whistleblower shall not be entitled to an
award under this section if the whistleblower—</text>
<paragraph id="HE8F6321758CB494FBC65C3DA14AE88CF"><enum>(1)</enum><text>knowingly and
willfully makes any false, fictitious, or fraudulent statement or
representation; or</text>
</paragraph><paragraph id="HDF98314F6F5F4292A960ECE21C557299"><enum>(2)</enum><text>uses any false
writing or document knowing the writing or document contains any false,
fictitious, or fraudulent statement or entry.</text>
</paragraph></subsection><subsection id="H866D5F28C07E426DA74A4B85431B22EE"><enum>(j)</enum><header>Rulemaking
authority</header><text>The Commission shall have the authority to issue such
rules and regulations as may be necessary or appropriate to implement the
provisions of this section consistent with the purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF7D96F8A91AE46C186D364FE3D03BBED"><enum>(b)</enum><header>Protection for
employees of nationally recognized statistical rating
organizations</header><text>Section 1514A(a) of title 18, United States Code,
is amended—</text>
<paragraph id="H3C4084E689EF4DB3A023D2F761FA0EA6"><enum>(1)</enum><text>by inserting
<quote>or nationally recognized statistical rating organization (as defined in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c),</quote>
after <quote>78o(d)),</quote>; and</text>
</paragraph><paragraph id="H495D27BB7A7B49A3AE08604F2AEA681E"><enum>(2)</enum><text>by inserting
<quote>or nationally recognized statistical rating organization</quote> after
<quote>such company</quote>.</text>
</paragraph></subsection><subsection id="H0CAA6C0A1B35436BA7182F5D484C26D8"><enum>(c)</enum><header>Section 1514A of
title 18, United States Code</header>
<paragraph id="H61C4A6C8C9F540D1AE5828E432A85533"><enum>(1)</enum><header>Statute of
limitations; jury trial</header><text>Section 1514A(b)(2) of title 18, United
States Code, is amended—</text>
<subparagraph id="H77E55A858D574D5881AFA77DEBA062CE"><enum>(A)</enum><text>in subparagraph
(D)—</text>
<clause id="HF023DD72500042F5A03A10FD3B102634"><enum>(i)</enum><text>by
striking <quote>90</quote> and inserting <quote>180</quote>; and</text>
</clause><clause id="HB2898B52F40B483FAD2240FEC3D87ECC"><enum>(ii)</enum><text>by
striking the period at the end and inserting <quote>, or after the date on
which the employee became aware of the violation.</quote>; and</text>
</clause></subparagraph><subparagraph id="HA67F0F94F9BF4CBA9DAA16A97426A3E8"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H91FEAC2FD3084D26B14FA97BB437B11B" style="OLC">
<subparagraph id="H070CF4B02646469EBA18C0586F31B12C"><enum>(E)</enum><header>Jury
trial</header><text>A party to an action brought under paragraph (1)(B) shall
be entitled to trial by
jury.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5F0DEB3CC24040B7ADB3B31985F0FA86"><enum>(2)</enum><header>Private
securities litigation witnesses; nonenforceability;
information</header><text>Section 1514A of title 18, United States Code, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9335970E3F9F4D59A115F8FC46F1705B" style="OLC">
<subsection id="H5A5492A7DF234C8090EBA07345412730"><enum>(e)</enum><header>Nonenforceability
of certain provisions waiving rights and remedies or requiring arbitration of
disputes</header>
<paragraph id="H0C9C12601CD24E70B657B120624BB34E"><enum>(1)</enum><header>Waiver of rights
and remedies</header><text>The rights and remedies provided for in this section
may not be waived by any agreement, policy form, or condition of employment,
including by a predispute arbitration agreement.</text>
</paragraph><paragraph id="H4F733E97D84B427BA6C3D8CBB161CDE5"><enum>(2)</enum><header>Predispute
arbitration agreements</header><text>No predispute arbitration agreement shall
be valid or enforceable, if the agreement requires arbitration of a dispute
arising under this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H630816EDFD994A699890679142287625"><enum>(d)</enum><header>Study of
whistleblower protection program</header>
<paragraph id="HE7D0CAC5CE934FD09AF49299B6D07A9A"><enum>(1)</enum><header>Study</header><text>The
Inspector General of the Commission shall conduct a study of the whistleblower
protections established under the amendments made by this section,
including—</text>
<subparagraph id="HB44DC956AFC84F69A86A7273DDFBB485"><enum>(A)</enum><text>whether the final
rules and regulation issued under the amendments made by this section have made
the whistleblower protection program (referred to in this subsection as the
<quote>program</quote>) clearly defined and user-friendly;</text>
</subparagraph><subparagraph id="H14BC2D22B22F4952A5DC9DDCADDD5B2B"><enum>(B)</enum><text>whether the
program is promoted on the website of the Commission and has been widely
publicized;</text>
</subparagraph><subparagraph id="H6C5E0B63435A4543B7A3BACE8B3581D3"><enum>(C)</enum><text>whether the
Commission is prompt in—</text>
<clause id="HE53338F3F009478A98B8AA633A957FE9"><enum>(i)</enum><text>responding
to—</text>
<subclause id="H8DC165378A4440469FA0009E216E56B5"><enum>(I)</enum><text>information
provided by whistleblowers; and</text>
</subclause><subclause id="H6EE265180C2B426FB47A938D20BB05CA"><enum>(II)</enum><text>applications for
awards filed by whistleblowers;</text>
</subclause></clause><clause id="H8FEE16D348224B54AD7953BF9BAAF639"><enum>(ii)</enum><text>updating
whistleblowers about the status of their applications; and</text>
</clause><clause id="H37634246197940A68199E7765724BBAF"><enum>(iii)</enum><text>otherwise
communicating with the interested parties;</text>
</clause></subparagraph><subparagraph id="HAF9A3134F1BA400FA327AA655EF5D318"><enum>(D)</enum><text>whether the
minimum and maximum reward levels are adequate to entice whistleblowers to come
forward with information and whether the reward levels are so high as to
encourage illegitimate whistleblower claims;</text>
</subparagraph><subparagraph id="H914369F01BF6491494219756846B64BF"><enum>(E)</enum><text>whether the
appeals process has been unduly burdensome for the Commission;</text>
</subparagraph><subparagraph id="H6FA948E61A3448B69DF2F18BED700C43"><enum>(F)</enum><text>whether the
funding mechanism for the Investor Protection Fund is adequate;</text>
</subparagraph><subparagraph id="HD6059C9BFB154300AA0DC75D5C41DEE6"><enum>(G)</enum><text>whether, in the
interest of protecting investors and identifying and preventing fraud, it would
be useful for Congress to consider empowering whistleblowers or other
individuals, who have already attempted to pursue the case through the
Commission, to have a private right of action to bring suit based on the facts
of the same case, on behalf of the Government and themselves, against persons
who have committee securities fraud;</text>
</subparagraph><subparagraph commented="no" id="HF3742F384AB040BA913B50B96F3A4296"><enum>(H)</enum><clause commented="no" display-inline="yes-display-inline" id="HB641CB6F7FB64C52A865234F9DF98B90"><enum>(i)</enum><text>whether the exemption
under section 552(b)(3) of title 5 (known as the Freedom of Information Act)
established in section 21F(h)(2)(A) of the Securities Exchange Act of 1934, as
added by this Act, aids whistleblowers in disclosing information to the
Commission;</text>
</clause><clause commented="no" id="H8DBC361DF0D94842ADC1536AE429FE74" indent="up1"><enum>(ii)</enum><text>what impact the exemption
described in clause (i) has had on the ability of the public to access
information about the regulation and enforcement by the Commission of
securities; and</text>
</clause><clause commented="no" id="HF7710EC6A01149C6A729F2B17AD59A17" indent="up1"><enum>(iii)</enum><text>any recommendations on whether
the exemption described in clause (i) should remain in effect; and</text>
</clause></subparagraph><subparagraph id="H29DB4A36AE4B44CA90EB1F3910751392"><enum>(I)</enum><text>such other matters
as the Inspector General deems appropriate.</text>
</subparagraph></paragraph><paragraph id="H7D7D3E9B338D4F749BAC3836B4120A4F"><enum>(2)</enum><header>Report</header><text>Not
later than 30 months after the date of enactment of this Act, the Inspector
General shall—</text>
<subparagraph id="H84EE106158DB4042B0C3B9380D2D1422"><enum>(A)</enum><text>submit a report on
the findings of the study required under paragraph (1) to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6170B1BF892F4C578AD0AC25C30E1504"><enum>(B)</enum><text>make the report
described in subparagraph (A) available to the public through publication of
the report on the website of the Commission.</text>
</subparagraph></paragraph></subsection></section><section id="HFAE6D7693544466C9FB3B250AA5F87C0"><enum>923.</enum><header>Conforming
amendments for whistleblower protection</header>
<subsection id="H40F639F9CC0848E28A25980A9C6C153A"><enum>(a)</enum><header>In
general</header>
<paragraph id="H8E4E860866E046708DA28034430E7B68"><enum>(1)</enum><header>Securities Act
of 1933</header><text>Section 20(d)(3)(A) of the Securities Act of 1933 (15
U.S.C. 77t(d)(3)(A)) is amended by inserting <quote>and section 21F of the
Securities Exchange Act of 1934</quote> after <quote>the Sarbanes-Oxley Act of
2002</quote>.</text>
</paragraph><paragraph id="H2AEC0379635645F4AAFEDF0BCE8A0944"><enum>(2)</enum><header>Investment
Company Act of 1940</header><text>Section 42(e)(3)(A) of the Investment Company
Act of 1940 (15 U.S.C. 80a–41(e)(3)(A)) is amended by inserting <quote>and
section 21F of the Securities Exchange Act of 1934</quote> after <quote>the
Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph><paragraph id="HC1A27612BDFC4310AF0453456FC110D7"><enum>(3)</enum><header>Investment
Advisers Act of 1940</header><text>Section 209(e)(3)(A) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–9(e)(3)(A)) is amended by inserting
<quote>and section 21F of the Securities Exchange Act of 1934</quote> after
<quote>the Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph></subsection><subsection id="H9C78F3C2CB684A35870E4F8B7A6F9524"><enum>(b)</enum><header>Securities
Exchange Act</header>
<paragraph id="H246D56E65C85442ABECCA9A733A4E92B"><enum>(1)</enum><header>Section
21</header><text>Section 21(d)(3)(C)(i) of the Securities Exchange Act of 1934
(15 U.S.C. 78u(d)(3)(C)(i)) is amended by inserting <quote>and section 21F of
this title</quote> after <quote>the Sarbanes-Oxley Act of 2002</quote>.</text>
</paragraph><paragraph id="HC134121D8343452591CDBD0782331620"><enum>(2)</enum><header>Section
21A</header><text>Section 21A of the Securities Exchange Act of 1934 (15 U.S.C.
78u–1) is amended—</text>
<subparagraph id="HF962772336744F2AB3B553CC9AFBE825"><enum>(A)</enum><text>in subsection
(d)(1) by—</text>
<clause id="HA5A16998A71143DDB697087F1C44C0BF"><enum>(i)</enum><text>striking
<quote>(subject to subsection (e))</quote>; and</text>
</clause><clause id="H62D7098C4CC14179AC995038759F45D1"><enum>(ii)</enum><text>inserting
<quote>and section 21F of this title</quote> after <quote>the Sarbanes-Oxley
Act of 2002</quote>;</text>
</clause></subparagraph><subparagraph id="H184BC633149E4E42B96A1368E1518A0C"><enum>(B)</enum><text>by striking
subsection (e); and</text>
</subparagraph><subparagraph id="HE26C57CB2FA04A37B1A77A63449A3AEA"><enum>(C)</enum><text>by redesignating
subsections (f) and (g) as subsections (e) and (f), respectively.</text>
</subparagraph></paragraph></subsection></section><section id="H72ABB170346D4E7D9F8830AFE10402CA"><enum>924.</enum><header>Implementation
and transition provisions for whistleblower protection</header>
<subsection id="H28205788E3E8404BBAA11AD2E4C8F388"><enum>(a)</enum><header>Implementing
rules</header><text>The Commission shall issue final regulations implementing
the provisions of section 21F of the Securities Exchange Act of 1934, as added
by this subtitle, not later than 270 days after the date of enactment of this
Act.</text>
</subsection><subsection id="H94D52C7A6A77448EA21514284D93272E"><enum>(b)</enum><header>Original
information</header><text>Information provided to the Commission in writing by
a whistleblower shall not lose the status of original information (as defined
in section 21F(a)(3) of the Securities Exchange Act of 1934, as added by this
subtitle) solely because the whistleblower provided the information prior to
the effective date of the regulations, if the information is provided by the
whistleblower after the date of enactment of this subtitle.</text>
</subsection><subsection id="H06C7FCC034034AE3B2EE44255936436B"><enum>(c)</enum><header>Awards</header><text>A
whistleblower may receive an award pursuant to section 21F of the Securities
Exchange Act of 1934, as added by this subtitle, regardless of whether any
violation of a provision of the securities laws, or a rule or regulation
thereunder, underlying the judicial or administrative action upon which the
award is based, occurred prior to the date of enactment of this
subtitle.</text>
</subsection><subsection commented="no" id="HFFD405279E8547AE81531AB31B0B53FC"><enum>(d)</enum><header>Administration
and enforcement</header><text>The Securities and Exchange Commission shall
establish a separate office within the Commission to administer and enforce the
provisions of section 21F of the Securities Exchange Act of 1934 (as add by
section 922(a)). Such office shall report annually to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives on its activities, whistleblower
complaints, and the response of the Commission to such complaints.</text>
</subsection></section><section id="H2F4871F405F6404787C699B5D828814C"><enum>925.</enum><header>Collateral
bars</header>
<subsection id="HBD7F1F951900401181F69A181551393F"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header>
<paragraph id="H85F48764EB3E416C97FA62D2737206DD"><enum>(1)</enum><header>Section
15</header><text>Section 15(b)(6)(A) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b)(6)(A)) is amended by striking <quote>12 months, or bar such
person from being associated with a broker or dealer,</quote> and inserting
<quote>12 months, or bar any such person from being associated with a broker,
dealer, investment adviser, municipal securities dealer, municipal advisor,
transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph><paragraph id="H6B6995B65D394024A366E2121B7185C3"><enum>(2)</enum><header>Section
15b</header><text>Section 15B(c)(4) of the Securities Exchange Act of 1934 (15
U.S.C. 78o–4(c)(4)) is amended by striking <quote>twelve months or bar any such
person from being associated with a municipal securities dealer, </quote> and
inserting <quote>12 months or bar any such person from being associated with a
broker, dealer, investment adviser, municipal securities dealer, municipal
advisor, transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph><paragraph id="HD039AB2A18424418B99A8A8045759E8D"><enum>(3)</enum><header>Section
17a</header><text>Section 17A(c)(4)(C) of the Securities Exchange Act of 1934
(15 U.S.C. 78q–1(c)(4)(C)) is amended by striking <quote>twelve months or bar
any such person from being associated with the transfer agent, </quote> and
inserting <quote>12 months or bar any such person from being associated with
any transfer agent, broker, dealer, investment adviser, municipal securities
dealer, municipal advisor, or nationally recognized statistical rating
organization,</quote>.</text>
</paragraph></subsection><subsection id="HA4D3F2195AE74C94ADD901286792043A"><enum>(b)</enum><header>Investment
Advisers Act of 1940</header><text>Section 203(f) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3(f)) is amended by striking <quote>twelve months or
bar any such person from being associated with an investment adviser, </quote>
and inserting <quote>12 months or bar any such person from being associated
with an investment adviser, broker, dealer, municipal securities dealer,
municipal advisor, transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</subsection></section><section id="H0DBC44E3734947DEAA367C8CD4923043"><enum>926.</enum><header>Disqualifying
felons and other <quote>bad actors</quote> from Regulation D
offerings</header><text display-inline="no-display-inline">Not later than 1
year after the date of enactment of this Act, the Commission shall issue rules
for the disqualification of offerings and sales of securities made under
section 230.506 of title 17, Code of Federal Regulations, that—</text>
<paragraph id="H928BCEEFD56F43CF8B03DC5BBA6C15BF"><enum>(1)</enum><text>are substantially
similar to the provisions of section 230.262 of title 17, Code of Federal
Regulations, or any successor thereto; and</text>
</paragraph><paragraph id="HB212768109AE4BD4A5789B1466C910AD"><enum>(2)</enum><text>disqualify any
offering or sale of securities by a person that—</text>
<subparagraph id="HCC59840E650840C4A5C5DA51AF456C81"><enum>(A)</enum><text>is subject to a
final order of a State securities commission (or an agency or officer of a
State performing like functions), a State authority that supervises or examines
banks, savings associations, or credit unions, a State insurance commission (or
an agency or officer of a State performing like functions), an appropriate
Federal banking agency, or the National Credit Union Administration,
that—</text>
<clause id="H9676D10518B5407F9C1F11E229C65C0E"><enum>(i)</enum><text>bars
the person from—</text>
<subclause id="H2ED60A99A5614D93B3FAD27607EA3C48"><enum>(I)</enum><text>association with
an entity regulated by such commission, authority, agency, or officer;</text>
</subclause><subclause id="H06693533DDCA422DAA4208469834BC1E"><enum>(II)</enum><text>engaging in the
business of securities, insurance, or banking; or</text>
</subclause><subclause id="H2C536BAB4D6849059BF25BDFD8DE3242"><enum>(III)</enum><text>engaging in
savings association or credit union activities; or</text>
</subclause></clause><clause id="H416F029C27C14FB185F0198C9C773745"><enum>(ii)</enum><text>constitutes a
final order based on a violation of any law or regulation that prohibits
fraudulent, manipulative, or deceptive conduct within the 10-year period ending
on the date of the filing of the offer or sale; or</text>
</clause></subparagraph><subparagraph id="HC77B9CC2EE87414B883078704778F736"><enum>(B)</enum><text>has been convicted
of any felony or misdemeanor in connection with the purchase or sale of any
security or involving the making of any false filing with the
Commission.</text>
</subparagraph></paragraph></section><section id="H7F3694D37B1A4968975A0B3A8175DC98"><enum>927.</enum><header>Equal treatment
of self-regulatory organization rules</header><text display-inline="no-display-inline">Section 29(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78cc(a)) is amended by striking <quote>an exchange required
thereby</quote> and inserting <quote>a self-regulatory
organization,</quote>.</text>
</section><section id="H8F7B64780D7042228BF3AFF9D2272CA7"><enum>928.</enum><header>Clarification
that section 205 of the Investment Advisers Act of 1940 does not apply to
State-registered advisers</header><text display-inline="no-display-inline">Section 205(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–5(a)) is amended, in the matter preceding paragraph
(1)—</text>
<paragraph id="H872DB4E636EA432A9D28BA35AD9A6BA0"><enum>(1)</enum><text>by striking
<quote>, unless exempt from registration pursuant to section 203(b),</quote>
and inserting <quote>registered or required to be registered with the
Commission</quote>;</text>
</paragraph><paragraph id="H9B521419421C4863A48E11F83EF4F903"><enum>(2)</enum><text>by striking
<quote>make use of the mails or any means or instrumentality of interstate
commerce, directly or indirectly, to</quote>; and</text>
</paragraph><paragraph id="H18621BB0EFB84FB880E393CB12045AF4"><enum>(3)</enum><text>by striking
<quote>to</quote> after <quote>in any way</quote>.</text>
</paragraph></section><section id="HB44698740D6540F3A8C55D2FB986297A"><enum>929.</enum><header>Unlawful margin
lending</header><text display-inline="no-display-inline">Section 7(c)(1)(A) of
the Securities Exchange Act of 1934 (15 U.S.C. 78g(c)(1)(A)) is amended by
striking <quote>; and</quote> and inserting <quote>; or</quote>.</text>
</section><section id="H4F7C7C65410C44B893CD8BAA716EF8C1"><enum>929A.</enum><header>Protection for
employees of subsidiaries and affiliates of publicly traded
companies</header><text display-inline="no-display-inline">Section 1514A of
title 18, United States Code, is amended by inserting <quote>including any
subsidiary or affiliate whose financial information is included in the
consolidated financial statements of such company</quote> after <quote>the
Securities Exchange Act of 1934 (15 U.S.C. 78o(d))</quote>.</text>
</section><section id="H7E5D141FC8314FFC930DCD3B134D4EB0"><enum>929B.</enum><header>Fair Fund
amendments</header><text display-inline="no-display-inline">Section 308 of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(a)) is amended—</text>
<paragraph id="HED6C77C32AE8417A8AB2C2A2E652E9E7"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE0581024CB31488D9195CA29541C557F" style="OLC">
<subsection id="HF200D6F8B87342EF9794DF8AA917C5BA"><enum>(a)</enum><header>Civil penalties
to be used for the relief of victims</header><text display-inline="yes-display-inline">If, in any judicial or administrative
action brought by the Commission under the securities laws, the Commission
obtains a civil penalty against any person for a violation of such laws, or
such person agrees, in settlement of any such action, to such civil penalty,
the amount of such civil penalty shall, on the motion or at the direction of
the Commission, be added to and become part of a disgorgement fund or other
fund established for the benefit of the victims of such
violation.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE93FD70E238D499EB915B75F64A65FBC"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H397C4603A9C142A4A942A95E0198E764"><enum>(A)</enum><text>by striking
<quote>for a disgorgement fund described in subsection (a)</quote> and
inserting <quote>for a disgorgement fund or other fund described in subsection
(a)</quote>; and</text>
</subparagraph><subparagraph id="H5D2FE22E05664DE7AF4B6F7AE0A1ABB0"><enum>(B)</enum><text>by striking
<quote>in the disgorgement fund</quote> and inserting <quote>in such
fund</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCD98EDFF86CF41C1A2DE5546AAA24DB0"><enum>(3)</enum><text>by striking
subsection (e).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HF4AD0E8E08FB4D4B87A04E16E9423C23" section-type="subsequent-section"><enum>929C.</enum><header>Increasing the
borrowing limit on Treasury loans</header><text display-inline="no-display-inline">Section 4(h) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78ddd(h)) is amended in the first sentence,
by striking <quote>$1,000,000,000</quote> and inserting
<quote>$2,500,000,000</quote>.</text>
</section><section id="H99AB1050FDEC4A3EB346E509DC0C8FE0"><enum>929D.</enum><header>Lost and
stolen securities</header><text display-inline="no-display-inline">Section
17(f)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(f)(1)) is
amended—</text>
<paragraph id="HF07F920137C044D0A934DE67E0E19750"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>missing, lost, counterfeit, or stolen
securities</quote> and inserting <quote>securities that are missing, lost,
counterfeit, stolen, or cancelled</quote>; and</text>
</paragraph><paragraph id="H54160C1D72B6426189665DDCB43C7346"><enum>(2)</enum><text>in subparagraph
(B), by striking <quote>or stolen</quote> and inserting <quote>stolen,
cancelled, or reported in such other manner as the Commission, by rule, may
prescribe</quote>.</text>
</paragraph></section><section display-inline="no-display-inline" id="H238813D88A054EB597440B537BA88533"><enum>929E.</enum><header>Nationwide
service of subpoenas</header>
<subsection id="H918DB7EB7B6D4421B9DABF5033DD2EAB"><enum>(a)</enum><header>Securities Act
of 1933</header><text>Section 22(a) of the Securities Act of 1933 (15 U.S.C.
77v(a)) is amended by inserting after the second sentence the following:
<quote>In any action or proceeding instituted by the Commission under this
title in a United States district court for any judicial district, a subpoena
issued to compel the attendance of a witness or the production of documents or
tangible things (or both) at a hearing or trial may be served at any place
within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil
Procedure shall not apply to a subpoena issued under the preceding
sentence.</quote>.</text>
</subsection><subsection id="HB08F0EF152CF4B77A7F1D3F55494FE84"><enum>(b)</enum><header>Securities
Exchange Act of 1934</header><text>Section 27 of the Securities Exchange Act of
1934 (15 U.S.C. 78aa) is amended by inserting after the third sentence the
following: <quote>In any action or proceeding instituted by the Commission
under this title in a United States district court for any judicial district, a
subpoena issued to compel the attendance of a witness or the production of
documents or tangible things (or both) at a hearing or trial may be served at
any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules
of Civil Procedure shall not apply to a subpoena issued under the preceding
sentence.</quote>.</text>
</subsection><subsection id="H94B53CF0B6D24B95AEC0DCF8D51B57AD"><enum>(c)</enum><header>Investment
Company Act of 1940</header><text>Section 44 of the Investment Company Act of
1940 (15 U.S.C. 80a–43) is amended by inserting after the fourth sentence the
following: <quote>In any action or proceeding instituted by the Commission
under this title in a United States district court for any judicial district, a
subpoena issued to compel the attendance of a witness or the production of
documents or tangible things (or both) at a hearing or trial may be served at
any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules
of Civil Procedure shall not apply to a subpoena issued under the preceding
sentence.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H63CF2529441043F495992E0DA443A435"><enum>(d)</enum><header>Investment
Advisers Act of 1940</header><text>Section 214 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–14) is amended by inserting after the third sentence the
following: <quote>In any action or proceeding instituted by the Commission
under this title in a United States district court for any judicial district, a
subpoena issued to compel the attendance of a witness or the production of
documents or tangible things (or both) at a hearing or trial may be served at
any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules
of Civil Procedure shall not apply to a subpoena issued under the preceding
sentence.</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="H6F6A62D67C764F2A9B08E2D412E05E55"><enum>929F.</enum><header>Formerly
associated persons</header>
<subsection id="H1DB95E05C4184FFA81AB6DDF12650D12"><enum>(a)</enum><header>Member or
employee of the municipal securities rulemaking board</header><text>Section
15B(c)(8) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–4(c)(8)) is
amended by striking <quote>any member or employee</quote> and inserting
<quote>any person who is, or at the time of the alleged violation or abuse was,
a member or employee</quote>.</text>
</subsection><subsection id="H91C08909AA2B424D93EBFC091CEA13B9"><enum>(b)</enum><header>Person
associated with a government securities broker or dealer</header><text>Section
15C(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–5(c)) is
amended—</text>
<paragraph id="HE673E611F8664D6DA93AF21A60FF2CE3"><enum>(1)</enum><text>in paragraph
(1)(C), by striking <quote>any person associated, or seeking to become
associated,</quote> and inserting <quote>any person who is, or at the time of
the alleged misconduct was, associated or seeking to become associated</quote>;
and</text>
</paragraph><paragraph id="H9A7EC99E5A614656A3949E5A79BB3C0B"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HAE4F49A240C542F1909A5CAC5123E90B"><enum>(A)</enum><text>in subparagraph
(A), by inserting <quote>, seeking to become associated, or, at the time of the
alleged misconduct, associated or seeking to become associated</quote> after
<quote>any person associated</quote>; and</text>
</subparagraph><subparagraph id="H00FE25C7170C4242A9B3422AA85729CD"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>, seeking to become associated, or, at the time of the
alleged misconduct, associated or seeking to become associated</quote> after
<quote>any person associated</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H0DD0EF69BD7343E19106F95B64834973"><enum>(c)</enum><header>Person
associated with a member of a national securities exchange or registered
securities association</header><text>Section 21(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended, in the first sentence,
by inserting <quote>, or, as to any act or practice, or omission to act, while
associated with a member, formerly associated</quote> after <quote>member or a
person associated</quote>.</text>
</subsection><subsection id="HBDA5786DEE024D7DB505C57D02F5766A"><enum>(d)</enum><header>Participant of a
registered clearing agency</header><text>Section 21(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended, in the first sentence,
by inserting <quote>or, as to any act or practice, or omission to act, while a
participant, was a participant,</quote> after <quote>in which such person is a
participant,</quote>.</text>
</subsection><subsection id="HD5656C0BFBAD420DA615FC8AC1CC35AD"><enum>(e)</enum><header>Officer or
director of a self-regulatory organization</header><text>Section 19(h)(4) of
the Securities Exchange Act of 1934 (15 U.S.C. 78s(h)(4)) is amended—</text>
<paragraph id="HFE731EECBB9744BD8750C86E7E94C937"><enum>(1)</enum><text>by striking
<quote>any officer or director</quote> and inserting <quote>any person who is,
or at the time of the alleged misconduct was, an officer or director</quote>;
and</text>
</paragraph><paragraph id="H062E9EEEFEA84220B5E384A90536A7CF"><enum>(2)</enum><text>by striking
<quote>such officer or director</quote> and inserting <quote>such
person</quote>.</text>
</paragraph></subsection><subsection id="H6497CB28D9644675B1396CA9B49A9F32"><enum>(f)</enum><header>Officer or
director of an investment company</header><text>Section 36(a) of the Investment
Company Act of 1940 (15 U.S.C. 80a–35(a)) is amended—</text>
<paragraph id="HF2526B43900F413490E18E63A2391C24"><enum>(1)</enum><text>by striking
<quote>a person serving or acting</quote> and inserting <quote>a person who is,
or at the time of the alleged misconduct was, serving or acting</quote>;
and</text>
</paragraph><paragraph id="HA50883C51E144C43ACBDE027BEAEFE85"><enum>(2)</enum><text>by striking
<quote>such person so serves or acts</quote> and inserting <quote>such person
so serves or acts, or at the time of the alleged misconduct, so served or
acted</quote>.</text>
</paragraph></subsection><subsection id="H0E3A4D20F4244C3F93E0093365DCA6A1"><enum>(g)</enum><header>Person
associated with a public accounting firm</header>
<paragraph id="HAE53CE020F9A4A228B1773C24302C23E"><enum>(1)</enum><header>Sarbanes-Oxley
Act of 2002 amendment</header><text>Section 2(a)(9) of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7201(9)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H70506FD81F984683A316E5229F43CF5A" style="OLC">
<subparagraph id="H8D20842906F04D648EF27BF1B593ED97"><enum>(C)</enum><header>Investigative
and enforcement authority</header><text display-inline="yes-display-inline">For
purposes of sections 3(c), 101(c), 105, and 107(c) and the rules of the Board
and Commission issued thereunder, except to the extent specifically excepted by
such rules, the terms defined in subparagraph (A) shall include any person
associated, seeking to become associated, or formerly associated with a public
accounting firm, except that—</text>
<clause id="HF28516B9DD4047AC8C1DD3CC5BD2CE47"><enum>(i)</enum><text>the authority to
conduct an investigation of such person under section 105(b) shall apply only
with respect to any act or practice, or omission to act, by the person while
such person was associated or seeking to become associated with a registered
public accounting firm; and</text>
</clause><clause id="H63AF0B5A4B42462EA3573BB3294414FA"><enum>(ii)</enum><text>the authority to
commence a disciplinary proceeding under section 105(c)(1), or impose sanctions
under section 105(c)(4), against such person shall apply only with respect
to—</text>
<subclause id="H8CDA080DA6DA4687B36A40AB372154FF"><enum>(I)</enum><text>conduct occurring
while such person was associated or seeking to become associated with a
registered public accounting firm; or</text>
</subclause><subclause id="H8A75B6B27086413AA1D8192FB16350BF"><enum>(II)</enum><text>non-cooperation,
as described in section 105(b)(3), with respect to a demand in a Board
investigation for testimony, documents, or other information relating to a
period when such person was associated or seeking to become associated with a
registered public accounting
firm.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA3C0BA711BF44AAFA86FBA8CFB4026D2"><enum>(2)</enum><header>Securities
Exchange Act of 1934 amendment</header><text display-inline="yes-display-inline">Section 21(a)(1) of the Securities Exchange
Act of 1934 (15 U.S.C. 78u(a)(1)) is amended by striking <quote>or a person
associated with such a firm</quote> and inserting “, a person associated with
such a firm, or, as to any act, practice, or omission to act, while associated
with such firm, a person formerly associated with such a firm”.</text>
</paragraph></subsection><subsection id="H5CC85E1EF16B4EBC87E2E63B397BC1A0"><enum>(h)</enum><header>Supervisory
personnel of an audit firm</header><text>Section 105(c)(6) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(6)) is amended—</text>
<paragraph id="H977BB14D75C9466C9F5D16F1F4D188E8"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>the supervisory personnel</quote> and inserting
<quote>any person who is, or at the time of the alleged failure reasonably to
supervise was, a supervisory person</quote>; and</text>
</paragraph><paragraph id="H6C5B9F5077FF4276A82A8CCE9487DEEC"><enum>(2)</enum><text>in subparagraph
(B)—</text>
<subparagraph id="HDDCF9A6D3BB046C19A220A7BD5B83A42"><enum>(A)</enum><text>by striking
<quote>No associated person</quote> and inserting <quote>No current or former
supervisory person</quote>; and</text>
</subparagraph><subparagraph id="H7879C0E201C54731BEBEC8475533DDD8"><enum>(B)</enum><text>by striking
<quote>any other person</quote> and inserting <quote>any associated
person</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2F47158C04FC4962BCCF50A7BE157DC1"><enum>(i)</enum><header>Member of the
Public Company Accounting Oversight Board</header><text>Section 107(d)(3) of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7217(d)(3)) is amended by striking
<quote>any member</quote> and inserting <quote>any person who is, or at the
time of the alleged misconduct was, a member</quote>.</text>
</subsection></section><section id="H54F6F0A3B549485E89329E0CBE18D795"><enum>929G.</enum><header>Streamlined
hiring authority for market specialists</header>
<subsection id="H8BDFEBCB263446D3873519C1FB5C6DBF"><enum>(a)</enum><header>Appointment
authority</header><text>Section 3114 of title 5, United States Code, is amended
by striking the section heading and all that follows through the end of
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HD591B310F7614D1C998E37D63B1546EB" style="USC">
<section id="H73445C348DB64CDEA4672FDFD9DB6BE7"><enum>3114.</enum><header>Appointment of
candidates to certain positions in the competitive service by the Securities
and Exchange Commission</header>
<subsection id="H19180425CE624923A511263F0F855656"><enum>(a)</enum><header>Applicability</header><text>This
section applies with respect to any position of accountant, economist, and
securities compliance examiner at the Commission that is in the competitive
service, and any position at the Commission in the competitive service that
requires specialized knowledge of financial and capital market formation or
regulation, financial market structures or surveillance, or information
technology.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFF3876DA494A46BE88F1F8A83C2AF9D6"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 31 of title 5, United
States Code, is amended by striking the item relating to section 3114 and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4213E5CB63D34DD69A371A62FD45BB25" style="OLC">
<toc>
<toc-entry bold="off" level="section">3114. Appointment of candidates
to positions in the competitive service by the Securities and Exchange
Commission.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H377F995470D340C6941727CD82D2046B"><enum>(c)</enum><header>Pay
authority</header><text>The Commission may set the rate of pay for experts and
consultants appointed under the authority of section 3109 of title 5, United
States Code, in the same manner in which it sets the rate of pay for employees
of the Commission.</text>
</subsection></section><section id="HA9ACB4286FFC49188365AA035BD406F8"><enum>929H.</enum><header>SIPC
Reforms</header>
<subsection commented="no" display-inline="no-display-inline" id="HC863FE89FBFE4D25B39D0E638DF8F2A3"><enum>(a)</enum><header display-inline="yes-display-inline">Increasing the cash limit of
protection</header><text display-inline="yes-display-inline">Section 9 of the
Securities Investor Protection Act of 1970 (15 U.S.C. 78fff–3) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H11876050F616481B960447B54508B4D7"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>$100,000 for each such customer</quote> and inserting <quote>the
standard maximum cash advance amount for each such customer, as determined in
accordance with subsection (d)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H536D682FF194491CB3C71D2E8D5321CC"><enum>(2)</enum><text display-inline="yes-display-inline">by adding the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="H1DBC1AE04F854669AB5E5971862EE10B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFDD53B9776B945E7AE5585331B8788E5"><enum>(d)</enum><header display-inline="yes-display-inline">Standard maximum cash advance amount
defined</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>standard maximum cash advance amount</term> means
$250,000, as such amount may be adjusted after December 31, 2010, as provided
under subsection (e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9B68D7A65D2B4E49A5DD3E3FC3DEA26E"><enum>(e)</enum><header display-inline="yes-display-inline">Inflation adjustment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H605F2F827A1E47D795D1F58A67964012"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than January 1, 2011, and every 5
years thereafter, and subject to the approval of the Commission as provided
under section 3(e)(2), the Board of Directors of SIPC shall determine whether
an inflation adjustment to the standard maximum cash advance amount is
appropriate. If the Board of Directors of SIPC determines such an adjustment is
appropriate, then the standard maximum cash advance amount shall be an amount
equal to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB7D5778AC2B643E78CE6604865CBDFB3"><enum>(A)</enum><text display-inline="yes-display-inline">$250,000 multiplied by—</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB520461CC1B410BB21A7933687D32E7"><enum>(B)</enum><text display-inline="yes-display-inline">the ratio of the 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 such determination is made, to the published annual
value of such index for the calendar year preceding the year in which this
subsection was enacted.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The index values used in calculations
under this paragraph shall be, as of the date of the calculation, the values
most recently published by the Department of Commerce.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F43B64A15C5402C9EE1C839FDCFD545"><enum>(2)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If the standard maximum cash advance amount
determined under paragraph (1) for any period is not a multiple of $10,000, the
amount so determined shall be rounded down to the nearest $10,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB70E2098F40C4AA6B776A251EFBCDAD6"><enum>(3)</enum><header display-inline="yes-display-inline">Publication and report to the
Congress</header><text display-inline="yes-display-inline">Not later than April
5 of any calendar year in which a determination is required to be made under
paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8C8CB82AE79D4A34BB47D4AE2B102C0B"><enum>(A)</enum><text display-inline="yes-display-inline">the Commission shall publish in the Federal
Register the standard maximum cash advance amount; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7C27E37CFA324E6485AEF9184F3878EB"><enum>(B)</enum><text display-inline="yes-display-inline">the Board of Directors of SIPC shall submit
a report to the Congress stating the standard maximum cash advance
amount.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5DCD42CA8C654EAEAD1270DBB0F1FCBF"><enum>(4)</enum><header display-inline="yes-display-inline">Implementation period</header><text display-inline="yes-display-inline">Any adjustment to the standard maximum cash
advance amount shall take effect on January 1 of the year immediately
succeeding the calendar year in which such adjustment is made.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H606138AAD2314A1CA1BEA9CF37C0EF82"><enum>(5)</enum><header display-inline="yes-display-inline">Inflation adjustment
considerations</header><text display-inline="yes-display-inline">In making any
determination under paragraph (1) to increase the standard maximum cash advance
amount, the Board of Directors of SIPC shall consider—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEC6AF2DF37424929A3F6EAEBF09FF6A4"><enum>(A)</enum><text display-inline="yes-display-inline">the overall state of the fund and the
economic conditions affecting members of SIPC;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7DD8243D2A8C487EB4A65846013DAE77"><enum>(B)</enum><text display-inline="yes-display-inline">the potential problems affecting members of
SIPC; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H187DDFAC59374124BBB465D1D1BFC2FD"><enum>(C)</enum><text display-inline="yes-display-inline">such other factors as the Board of
Directors of SIPC may determine
appropriate.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9ECFB727C9974876A66FE726459A013B"><enum>(b)</enum><header>Liquidation of a
carrying broker-dealer</header><text display-inline="yes-display-inline">Section 5(a)(3) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78eee(a)(3)) is amended—</text>
<paragraph id="HF4294593CB344226BAA974BE89B356B9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the undesignated matter
immediately following subparagraph (B);</text>
</paragraph><paragraph id="HFBD9AB8D916F433F9CB0827062332998"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>any
member of SIPC</quote> and inserting <quote>the member</quote>;</text>
</paragraph><paragraph id="H7D5EBFBD1B174D73857575AEE0B30049"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the comma
at the end and inserting a period;</text>
</paragraph><paragraph id="H9F7D763F751D40F3AF5C72C98ADEA3F6"><enum>(4)</enum><text>by striking
<quote>If SIPC</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HDB9360C2CF974555AF60343302CA9E04" style="OLC">
<subparagraph id="H8C60C958BC884BF9B2AF003C36799C52"><enum>(A)</enum><header>In
general</header><text>SIPC may, upon notice to a member of SIPC, file an
application for a protective decree with any court of competent jurisdiction
specified in section 21(e) or 27 of the Securities Exchange Act of 1934, except
that no such application shall be filed with respect to a member, the only
customers of which are persons whose claims could not be satisfied by SIPC
advances pursuant to section 9, if SIPC</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFD27977BD7D2411D9B512FA683091484"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC0450725B7CC4B318BDB8927CA46DA26" style="OLC">
<subparagraph id="H17DF5E264F834010B6F046B55BBD639E"><enum>(B)</enum><header>Consent
required</header><text>No member of SIPC that has a customer may enter into an
insolvency, receivership, or bankruptcy proceeding, under Federal or State law,
without the specific consent of SIPC, except as provided in title II of the
Dodd-Frank Wall Street Reform and Consumer Protection
Act.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H8374FACD207F46758FD87173FF602895"><enum>929I.</enum><header>Protecting
confidentiality of materials submitted to the Commission</header>
<subsection commented="no" id="HA9F7AE4DD2C84896880B780B4528A41F"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text>Section 24 of the Securities Exchange Act of
1934 (15 U.S.C. 78x) is amended—</text>
<paragraph commented="no" id="H4D0FA7F7C2974C92A10E82D2BC3DD1FF"><enum>(1)</enum><text>in subsection (d),
by striking <quote>subsection (e)</quote> and inserting <quote>subsection
(f)</quote>;</text>
</paragraph><paragraph commented="no" id="H6817B7F2C5BB44C280CB950F7860BCFF"><enum>(2)</enum><text>by redesignating
subsection (e) as subsection (f); and</text>
</paragraph><paragraph commented="no" id="H362575A34CCD47DF8F237F159A642640"><enum>(3)</enum><text>by inserting after
subsection (d) the following:</text>
<quoted-block display-inline="no-display-inline" id="HBEA686C7991B49528B7FF5A4E378F4D5" style="OLC">
<subsection commented="no" id="H5C4BA570E67D48B284B21C75743D14C0"><enum>(e)</enum><header>Records obtained
from registered persons</header>
<paragraph commented="no" id="H369CA800E986465C921D16861228B043"><enum>(1)</enum><header>In
general</header><text>Except as provided in subsection (f), the Commission
shall not be compelled to disclose records or information obtained pursuant to
section 17(b), or records or information based upon or derived from such
records or information, if such records or information have been obtained by
the Commission for use in furtherance of the purposes of this title, including
surveillance, risk assessments, or other regulatory and oversight
activities.</text>
</paragraph><paragraph commented="no" id="HAA9E53116EC946EB8950326E330FB7BD"><enum>(2)</enum><header>Treatment of
information</header><text>For purposes of section 552 of title 5, United States
Code, this subsection shall be considered a statute described in subsection
(b)(3)(B) of such section 552. Collection of information pursuant to section 17
shall be an administrative action involving an agency against specific
individuals or agencies pursuant to section 3518(c)(1) of title 44, United
States
Code.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBCC5E2FAEEBA4C15BA126E7D2070F700"><enum>(b)</enum><header>Investment
Company Act of 1940</header><text>Section 31 of the Investment Company Act of
1940 (15 U.S.C. 80a-30) is amended—</text>
<paragraph id="H3C0FC4D7FD1841D2A59A58F7F9E14793"><enum>(1)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H93F06C3001F246D2BC08660FCFC8B674" style="OLC">
<subsection id="HD567DE381B384389888527D3D3C61DD4"><enum>(c)</enum><header>Limitations on
disclosure by Commission</header><text>Notwithstanding any other provision of
law, the Commission shall not be compelled to disclose any records or
information provided to the Commission under this section, or records or
information based upon or derived from such records or information, if such
records or information have been obtained by the Commission for use in
furtherance of the purposes of this title, including surveillance, risk
assessments, or other regulatory and oversight activities. Nothing in this
subsection authorizes the Commission to withhold information from the Congress
or prevent the Commission from complying with a request for information from
any other Federal department or agency requesting the information for purposes
within the scope of jurisdiction of that department or agency, 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 section shall be considered a statute described in subsection
(b)(3)(B) of such section 552. Collection of information pursuant to section 31
shall be an administrative action involving an agency against specific
individuals or agencies pursuant to section 3518(c)(1) of title 44, United
States
Code.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H10DDE920EFC2439F9AFFDB5F106CA6B8"><enum>(2)</enum><text>by striking
subsection (d); and</text>
</paragraph><paragraph commented="no" id="H170C4F2426D24C1484A74A74B0D15DA5"><enum>(3)</enum><text>by redesignating
subsections (e) and (f) as subsections (d) and (e), respectively.</text>
</paragraph></subsection><subsection id="H1582DBCF87C34A02BD92F9E6E0E8FFD5"><enum>(c)</enum><header>Investment
Advisers Act of 1940</header><text>Section 210 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b-10) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFB07CD7CE8BE48BC9DBE3578712BB5E7" style="OLC">
<subsection id="H277616AF5DEC4AC0A3775B481BE77429"><enum>(d)</enum><header>Limitations on
disclosure by the Commission</header><text>Notwithstanding any other provision
of law, the Commission shall not be compelled to disclose any records or
information provided to the Commission under section 204, or records or
information based upon or derived from such records or information, if such
records or information have been obtained by the Commission for use in
furtherance of the purposes of this title, including surveillance, risk
assessments, or other regulatory and oversight activities. Nothing in this
subsection authorizes the Commission to withhold information from the Congress
or prevent the Commission from complying with a request for information from
any other Federal department or agency requesting the information for purposes
within the scope of jurisdiction of that department or agency, 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 subsection shall be considered a statute described in
subsection (b)(3)(B) of such section 552. Collection of information pursuant to
section 204 shall be an administrative action involving an agency against
specific individuals or agencies pursuant to section 3518(c)(1) of title 44,
United States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HA80A7D31A20B42C5B066A104D7486AE5"><enum>929J.</enum><header>Expansion of
audit information to be produced and exchanged</header><text display-inline="no-display-inline">Section 106 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7216) is amended—</text>
<paragraph id="H24F7A9BB634A49FDA91135C93B7D4E4D"><enum>(1)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3A843EEF5FC94921BAE3DBFA50E47E3C" style="OLC">
<subsection id="H656F195C415249509458B10A563FA6AA"><enum>(b)</enum><header>Production of
documents</header>
<paragraph id="HB8E15AD756AC46F7B86E397D2AECEFD2"><enum>(1)</enum><header>Production by
foreign firms</header><text display-inline="yes-display-inline">If a foreign
public accounting firm performs material services upon which a registered
public accounting firm relies in the conduct of an audit or interim review,
issues an audit report, performs audit work, or conducts interim reviews, the
foreign public accounting firm shall—</text>
<subparagraph id="HF6C1B489D1AC4BDD906E1052C836DAC3"><enum>(A)</enum><text display-inline="yes-display-inline">produce the audit work papers of the
foreign public accounting firm and all other documents of the firm related to
any such audit work or interim review to the Commission or the Board, upon
request of the Commission or the Board; and</text>
</subparagraph><subparagraph id="HAA3B031B292D4ADAB95D638386262C28"><enum>(B)</enum><text display-inline="yes-display-inline">be subject to the jurisdiction of the
courts of the United States for purposes of enforcement of any request for such
documents.</text>
</subparagraph></paragraph><paragraph id="H95EBDDE516994CCDAFD2AE6DFE83167E"><enum>(2)</enum><header>Other
production</header><text display-inline="yes-display-inline">Any registered
public accounting firm that relies, in whole or in part, on the work of a
foreign public accounting firm in issuing an audit report, performing audit
work, or conducting an interim review, shall—</text>
<subparagraph id="H30B96598713B4781B4AF180DC5731666"><enum>(A)</enum><text>produce the audit
work papers of the foreign public accounting firm and all other documents
related to any such work in response to a request for production by the
Commission or the Board; and</text>
</subparagraph><subparagraph id="HDFEF90C48219481D8F4EAEC33E44D168"><enum>(B)</enum><text>secure the
agreement of any foreign public accounting firm to such production, as a
condition of the reliance by the registered public accounting firm on the work
of that foreign public accounting
firm.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAB15D50796484587AD71CE981A35B19B"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subsection (d) as
subsection (g); and</text>
</paragraph><paragraph id="H6228F1E2E08241BFB09DFF3B8EEEE001"><enum>(3)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="H40AA25D2A5F949F3B66C763A0A6742EA" style="OLC">
<subsection id="HC0E4D85B8FFB4D09A3A0C3BB6FDA63EB"><enum>(d)</enum><header>Service of
requests or process</header>
<paragraph id="H266AA7336DC74327B0BEE6142667DFAB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Any foreign public
accounting firm that performs work for a domestic registered public accounting
firm shall furnish to the domestic registered public accounting firm a written
irrevocable consent and power of attorney that designates the domestic
registered public accounting firm as an agent upon whom may be served any
request by the Commission or the Board under this section or upon whom may be
served any process, pleadings, or other papers in any action brought to enforce
this section.</text>
</paragraph><paragraph id="H1B62CEC392AF49E7894477112483E87F"><enum>(2)</enum><header>Specific audit
work</header><text display-inline="yes-display-inline">Any foreign public
accounting firm that performs material services upon which a registered public
accounting firm relies in the conduct of an audit or interim review, issues an
audit report, performs audit work, or, performs interim reviews, shall
designate to the Commission or the Board an agent in the United States upon
whom may be served any request by the Commission or the Board under this
section or upon whom may be served any process, pleading, or other papers in
any action brought to enforce this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H94BB25735ACB450E88BD119C0CC10D69"><enum>(e)</enum><header>Sanctions</header><text>A
willful refusal to comply, in whole in or in part, with any request by the
Commission or the Board under this section, shall be deemed a violation of this
Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2281179BE3ED4A5EA1938F45909ED2AA"><enum>(f)</enum><header>Other means of
satisfying production obligations</header><text>Notwithstanding any other
provisions of this section, the staff of the Commission or the Board may allow
a foreign public accounting firm that is subject to this section to meet
production obligations under this section through alternate means, such as
through foreign counterparts of the Commission or the
Board.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="HD62DF4FAFDB4421A9237D5AC9402ED20"><enum>929K.</enum><header>Sharing
privileged information with other authorities</header><text display-inline="no-display-inline">Section 24 of the Securities Exchange Act of
1934 (15 U.S.C. 78x) is amended—</text>
<paragraph commented="no" id="HF76E85DAECDE4CC89C5302855BCF63A7"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d), as amended by subsection
(d)(1)(A), by striking <quote>subsection (f)</quote> and inserting
<quote>subsection (g)</quote>;</text>
</paragraph><paragraph commented="no" id="HCAFEA56B5A814F48B4BD017C2E4EFF4A"><enum>(2)</enum><text>in subsection (e),
as added by subsection (d)(1)(C), by striking <quote>subsection (f)</quote> and
inserting <quote>subsection (g)</quote>;</text>
</paragraph><paragraph commented="no" id="HA85B237960E446E6A36E3A95C4DECF84"><enum>(3)</enum><text display-inline="yes-display-inline">by redesignating subsection (f) as
subsection (g); and</text>
</paragraph><paragraph commented="no" id="H95C96CBB6ACE431E9D94E48761D1C0AF"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting after subsection (e) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H661CE03E36784B4BB4164E46CF355437" style="OLC">
<subsection id="H1E92F562737F499FBF5ADBDB2E7EE4CB"><enum>(f)</enum><header>Sharing
privileged information with other authorities</header>
<paragraph id="H4BDCE8F79FC643B7B15F10FC8B08CFB9"><enum>(1)</enum><header>Privileged
information provided by the commission</header><text>The Commission 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—</text>
<subparagraph id="H2917FC97D48E45478DDFBBC4BCDCA562"><enum>(A)</enum><text>any agency (as
defined in section 6 of title 18, United States Code);</text>
</subparagraph><subparagraph id="HF7660120E4C04522988478F1C91BF276"><enum>(B)</enum><text>the Public Company
Accounting Oversight Board;</text>
</subparagraph><subparagraph id="HC970A65426AB492E81F06F1CC5A41DC1"><enum>(C)</enum><text>any
self-regulatory organization;</text>
</subparagraph><subparagraph id="H2BF41EE18CBF4F918A159D9F222F70D4"><enum>(D)</enum><text>any foreign
securities authority;</text>
</subparagraph><subparagraph id="H3239A7C95A6F4C1BB495F5E2DF0BB44C"><enum>(E)</enum><text>any foreign law
enforcement authority; or</text>
</subparagraph><subparagraph id="H5897CB5E5E7744C4B00B616D1E8D9313"><enum>(F)</enum><text>any State
securities or law enforcement authority.</text>
</subparagraph></paragraph><paragraph id="H239A41B5613349AA8F15B9A0BC14D6D0"><enum>(2)</enum><header>Nondisclosure of
privileged information provided to the commission</header><text>The Commission
shall not be compelled to disclose privileged information obtained from any
foreign securities authority, or foreign law enforcement authority, if the
authority has in good faith determined and represented to the Commission that
the information is privileged.</text>
</paragraph><paragraph id="H6EC414DD500A49DBBD92899B8252A9C7"><enum>(3)</enum><header>Nonwaiver of
privileged information provided to the commission</header>
<subparagraph id="HB8E505A84A534FC59F7D60AE384415CF"><enum>(A)</enum><header>In
general</header><text>Federal agencies, State securities and law enforcement
authorities, self-regulatory organizations, and the Public Company Accounting
Oversight Board 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 the Commission.</text>
</subparagraph><subparagraph id="H2C24457E6A084A1CB97342F0B8210730"><enum>(B)</enum><header>Exception</header><text>The
provisions of subparagraph (A) shall not apply to a self-regulatory
organization or the Public Company Accounting Oversight Board with respect to
information used by the Commission in an action against such
organization.</text>
</subparagraph></paragraph><paragraph id="H2EE60A8EAE6A47F1B418D0E463106024"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="HDDB4A7F41E1442D0891D4198664C34E7"><enum>(A)</enum><text>the term
<term>privilege</term> includes any work-product privilege, attorney-client
privilege, governmental privilege, or other privilege recognized under Federal,
State, or foreign law;</text>
</subparagraph><subparagraph id="H9E16DACA27BD42E99D188479A0CF4DD4"><enum>(B)</enum><text>the term
<term>foreign law enforcement authority</term> means any foreign authority that
is empowered under foreign law to detect, investigate or prosecute potential
violations of law; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE270F97777264DC5B03C270848E8D863"><enum>(C)</enum><text>the term
<term>State securities or law enforcement authority</term> means the authority
of any State or territory that is empowered under State or territory law to
detect, investigate, or prosecute potential violations of
law.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H9C900EE3B42E4891A0FE27834A7E759C"><enum>929L.</enum><header>Enhanced
application of antifraud provisions</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended—</text>
<paragraph id="H7F0454EECC2B42338F4CB088591F6A5B"><enum>(1)</enum><text>in section
9—</text>
<subparagraph id="H63D5F0E3B472467EB2E6D91C34C86863"><enum>(A)</enum><text>by striking
<quote>registered on a national securities exchange</quote> each place that
term appears and inserting <quote>other than a government
security</quote>;</text>
</subparagraph><subparagraph id="H067685409B4A4297AAEF687E15A7F951"><enum>(B)</enum><text>in subsection (b),
by striking <quote>by use of any facility of a national securities
exchange,</quote>; and</text>
</subparagraph><subparagraph id="HD56441D0EFF4462C95BE90BB809C3EFD"><enum>(C)</enum><text>in subsection (c),
by inserting after <quote>unlawful for any</quote> the following:
<quote>broker, dealer, or</quote>;</text>
</subparagraph></paragraph><paragraph id="H7B736FD7A5F94130AFFFA05B74B568F7"><enum>(2)</enum><text display-inline="yes-display-inline">in section 10(a)(1), by striking
<quote>registered on a national securities exchange</quote> and inserting
<quote>other than a government security</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2CE8AA7D95D457E876F4756B98F2408"><enum>(3)</enum><text>in section
15(c)(1)(A), by striking <quote>otherwise than on a national securities
exchange of which it is a member</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H7EFD1CF61A3640EEBE9C0D4E672C61AB"><enum>929M.</enum><header display-inline="yes-display-inline">Aiding and abetting authority under the
Securities Act and the Investment Company Act</header>
<subsection commented="no" display-inline="no-display-inline" id="HB7161B089592477CAD27B0A34E8A2AF7"><enum>(a)</enum><header display-inline="yes-display-inline">Under the securities act of
1933</header><text display-inline="yes-display-inline">Section 15 of the
Securities Act of 1933 (15 U.S.C. 77o) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFE3BA38B2E3B446EAAE183B363685003"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Every person who</quote>
and inserting <quote>(a) <header-in-text level="subsection" style="OLC">Controlling persons</header-in-text>.—Every person who</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H766BCA68057A44188E2CB44081BEADA9"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC52022E3CD314877A445264A846AC6F9" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H1D75080A7FDB4ACBA39685E860DA4241"><enum>(b)</enum><header display-inline="yes-display-inline">Prosecution of persons who aid and abet
violations</header><text display-inline="yes-display-inline">For purposes of
any action brought by the Commission under subparagraph (b) or (d) of section
20, any person that knowingly or recklessly provides substantial assistance to
another person in violation of a provision of this Act, or of any rule or
regulation issued under this Act, shall be deemed to be in violation of such
provision to the same extent as the person to whom such assistance is
provided.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H58987C7C53D840C6872345BB9D593917"><enum>(b)</enum><header display-inline="yes-display-inline">Under the Investment Company Act of
1940</header><text display-inline="yes-display-inline">Section 48 of the
Investment Company Act of 1940 (15 U.S.C. 80a–48) is amended by redesignating
subsection (b) as subsection (c) and inserting after subsection (a) the
following:</text>
<quoted-block display-inline="no-display-inline" id="H4A446B5BBD3B4B71B4D05D1FC0152533" style="traditional">
<subsection commented="no" display-inline="no-display-inline" id="HD466AD871A934A67883F1A79C2D32ED1"><enum>(b)</enum><text display-inline="yes-display-inline">For purposes of any action brought by the
Commission under subsection (d) or (e) of section 42, any person that knowingly
or recklessly provides substantial assistance to another person in violation of
a provision of this Act, or of any rule or regulation issued under this Act,
shall be deemed to be in violation of such provision to the same extent as the
person to whom such assistance is
provided.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBAEB2D60C072444DBFB9E9D6173D5D84"><enum>929N.</enum><header display-inline="yes-display-inline">Authority to impose penalties for aiding
and abetting violations of the Investment Advisers Act</header><text display-inline="no-display-inline">Section 209 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–9) is amended by inserting at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H648D5A12BA3A4DB0BFB96E240A1F6C4A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEFFCC0B866B84A9DA15A6839CF2EF1E6"><enum>(f)</enum><header display-inline="yes-display-inline">Aiding and abetting</header><text display-inline="yes-display-inline">For purposes of any action brought by the
Commission under subsection (e), any person that knowingly or recklessly has
aided, abetted, counseled, commanded, induced, or procured a violation of any
provision of this Act, or of any rule, regulation, or order hereunder, shall be
deemed to be in violation of such provision, rule, regulation, or order to the
same extent as the person that committed such
violation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H8F827E5B30DB40D99D4F37FD8A952FB3"><enum>929O.</enum><header>Aiding and
abetting standard of knowledge satisfied by recklessness</header><text display-inline="no-display-inline">Section 20(e) of the Securities Exchange Act
of 1934 (15 U.S.C. 78t(e)) is amended by inserting <quote>or recklessly</quote>
after <quote>knowingly</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HCC04EE7B2A93401A8E15C64A762A34B4" section-type="subsequent-section"><enum>929P.</enum><header>Strengthening
enforcement by the Commission</header>
<subsection commented="no" id="H345ACDD6490742B9A2E2F7E2764FA967"><enum>(a)</enum><header>Authority to
impose civil penalties in cease and desist proceedings</header>
<paragraph commented="no" id="H8E0F7B2D8CFF4389828F1292FA220B6B"><enum>(1)</enum><header>Under the
Securities Act of 1933</header><text>Section 8A of the Securities Act of 1933
(15 U.S.C. 77h–1) is amended by adding at the end the following new
subsection:</text>
<quoted-block id="HD4FC1AEED7E444889C61B4072BD16D6A" style="OLC">
<subsection commented="no" id="H252E9333F82C4DE79538125DADD04709"><enum>(g)</enum><header>Authority to
impose money penalties</header>
<paragraph commented="no" id="HD5608936779948A8AD45F4DE43AF9641"><enum>(1)</enum><header>Grounds</header><text>In
any cease-and-desist proceeding under subsection (a), the Commission may impose
a civil penalty on a person if the Commission finds, on the record, after
notice and opportunity for hearing, that—</text>
<subparagraph commented="no" id="HAC0481A3AD7E4441A9DDFAFCE9EF6981"><enum>(A)</enum><text>such
person—</text>
<clause commented="no" id="HC416B7D30CB6481999547C38354AC131"><enum>(i)</enum><text>is violating or
has violated any provision of this title, or any rule or regulation issued
under this title; or</text>
</clause><clause commented="no" id="H1F4D3C93B772450D9910A233E8E4C8CA"><enum>(ii)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
thereunder; and</text>
</clause></subparagraph><subparagraph commented="no" id="H20827D542F4044038084FD1F942E6F21"><enum>(B)</enum><text>such penalty is in
the public interest.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9DF274A4DE9D4A6BA947F20D1A9E0269"><enum>(2)</enum><header>Maximum amount
of penalty</header>
<subparagraph commented="no" id="HF39FC2F05DE64D6A83FD2A5105306411"><enum>(A)</enum><header>First
tier</header><text>The maximum amount of a penalty for each act or omission
described in paragraph (1) shall be $7,500 for a natural person or $75,000 for
any other person.</text>
</subparagraph><subparagraph commented="no" id="HE45EB34EA9C04E69BDAE7A1DE72DC574"><enum>(B)</enum><header>Second
tier</header><text>Notwithstanding subparagraph (A), the maximum amount of
penalty for each such act or omission shall be $75,000 for a natural person or
$375,000 for any other person, if the act or omission described in paragraph
(1) involved fraud, deceit, manipulation, or deliberate or reckless disregard
of a regulatory requirement.</text>
</subparagraph><subparagraph commented="no" id="H301FC3B5E3B7476FB05D5F1BE3533A47"><enum>(C)</enum><header>Third
tier</header><text>Notwithstanding subparagraphs (A) and (B), the maximum
amount of penalty for each such act or omission shall be $150,000 for a natural
person or $725,000 for any other person, if—</text>
<clause commented="no" id="H6D75A9BBF5384D28B7221B7657490660"><enum>(i)</enum><text>the act or
omission described in paragraph (1) involved fraud, deceit, manipulation, or
deliberate or reckless disregard of a regulatory requirement; and</text>
</clause><clause commented="no" id="H7FAEBD85DAA44DA48A9C988669137B6C"><enum>(ii)</enum><text>such act or
omission directly or indirectly resulted in—</text>
<subclause commented="no" id="HBA0EAA7A328F44BD8009DCDE1A99FEE2"><enum>(I)</enum><text>substantial losses
or created a significant risk of substantial losses to other persons; or</text>
</subclause><subclause commented="no" id="H1B49C35E3C4744D59C851C7C29D2B1BD"><enum>(II)</enum><text>substantial
pecuniary gain to the person who committed the act or omission.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H2198E5D1FB2D49A184C29777D486F471"><enum>(3)</enum><header>Evidence
concerning ability to pay</header><text>In any proceeding in which the
Commission may impose a penalty under this section, a respondent may present
evidence of the ability of the respondent to pay such penalty. The Commission
may, in its discretion, consider such evidence in determining whether such
penalty is in the public interest. Such evidence may relate to the extent of
the ability of the respondent to continue in business and the collectability of
a penalty, taking into account any other claims of the United States or third
parties upon the assets of the respondent and the amount of the assets of the
respondent.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H8CC1A583DB25438B97579FDB71CB252C"><enum>(2)</enum><header>Under the
Securities Exchange Act of 1934</header><text>Section 21B(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u–2(a)) is amended—</text>
<subparagraph commented="no" id="HF55AA8F52E564101B4C86E14FE17CF00"><enum>(A)</enum><text>by striking the
matter following paragraph (4);</text>
</subparagraph><subparagraph commented="no" id="HEAAD76F72EBC4201A9CB7C1619C2E630"><enum>(B)</enum><text>in the matter
preceding paragraph (1), by inserting after <quote>opportunity for
hearing,</quote> the following: <quote>that such penalty is in the public
interest and</quote>;</text>
</subparagraph><subparagraph commented="no" id="H6EE2A819571246FFBADC72EBAE716D28"><enum>(C)</enum><text>by redesignating
paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph commented="no" id="H0E494A6B374840DE8B8096829419C808"><enum>(D)</enum><text>by striking
<quote>In any proceeding</quote> and inserting the following:</text>
<quoted-block id="H5D2DD99A20A241E39883197038C62276" style="OLC">
<paragraph commented="no" id="H7BAE64D6CEF1424EBBB3C7AECA28F446"><enum>(1)</enum><header>In
general</header><text>In any proceeding</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="HE8786D4ECFAE41D591459EE4F3E05DD3"><enum>(E)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H821E5142D2FF414F8799A59CD449757B" style="OLC">
<paragraph commented="no" id="HC657D4E4B39E45DF9EAA773FA6E67BC7"><enum>(2)</enum><header>Cease-and-desist
proceedings</header><text>In any proceeding instituted under section 21C
against any person, the Commission may impose a civil penalty, if the
Commission finds, on the record after notice and opportunity for hearing, that
such person—</text>
<subparagraph commented="no" id="HA14A6958BF3E4E2C8893EEA7FD5587AE"><enum>(A)</enum><text>is violating or
has violated any provision of this title, or any rule or regulation issued
under this title; or</text>
</subparagraph><subparagraph commented="no" id="HA62CD8B484324A9B945FCA882D100CCB"><enum>(B)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
issued under this
title.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HFC2A40B0485D443ABBEF4B18525C10E5"><enum>(3)</enum><header>Under the
Investment Company Act of 1940</header><text>Section 9(d)(1) of the Investment
Company Act of 1940 (15 U.S.C. 80a–9(d)(1)) is amended—</text>
<subparagraph commented="no" id="H9B7206F82D474261A8C0B7D5D9310B7C"><enum>(A)</enum><text>by striking the
matter following subparagraph (C);</text>
</subparagraph><subparagraph commented="no" id="H7BD8DC29A0E54E308E94659057978A74"><enum>(B)</enum><text>in the matter
preceding subparagraph (A), by inserting after <quote>opportunity for
hearing,</quote> the following: <quote>that such penalty is in the public
interest, and</quote>;</text>
</subparagraph><subparagraph commented="no" id="H7BF7AF6743F64711A220D2912744B18A"><enum>(C)</enum><text>by redesignating
subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph commented="no" id="H2B50BC5397A64A4FB5B6ACA24A5F732E"><enum>(D)</enum><text>by striking
<quote>In any proceeding</quote> and inserting the following:</text>
<quoted-block id="H82EB0CCC3FB349B3910CF4C08221D287" style="OLC">
<subparagraph commented="no" id="HDF27A55CC7A244F4A9B96AB0B2F6C205"><enum>(A)</enum><header>In
general</header><text>In any proceeding</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="HE6C38792E96742B6AE5CDBFFBA22BEDD"><enum>(E)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H13144BF2AF3D4D98930B0D1966BD2B32" style="OLC">
<subparagraph commented="no" id="H0EBC8D41F31A4F2994EA3E366FB2A098"><enum>(B)</enum><header>Cease-and-desist
proceedings</header><text>In any proceeding instituted pursuant to subsection
(f) against any person, the Commission may impose a civil penalty if the
Commission finds, on the record, after notice and opportunity for hearing, that
such person—</text>
<clause commented="no" id="H79852E73F9B3490AA0D5ABF14990D175"><enum>(i)</enum><text>is violating or
has violated any provision of this title, or any rule or regulation issued
under this title; or</text>
</clause><clause commented="no" id="HE3E73A0CEFAC45E893D30ED385771A22"><enum>(ii)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
issued under this
title.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H358A32A37F9E493E804A0D4CEE1F4355"><enum>(4)</enum><header>Under the
Investment Advisers Act of 1940</header><text>Section 203(i)(1) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b–3(i)(1)) is amended—</text>
<subparagraph commented="no" id="HE16C4E5EB03741B08723C5C0163B325C"><enum>(A)</enum><text>by striking the
matter following subparagraph (D);</text>
</subparagraph><subparagraph commented="no" id="H93B81B1C77EE4F1BB594B79A4BA2DF77"><enum>(B)</enum><text>in the matter
preceding subparagraph (A), by inserting after <quote>opportunity for
hearing,</quote> the following: <quote>that such penalty is in the public
interest and</quote>;</text>
</subparagraph><subparagraph commented="no" id="HFD24E8FEA4E0461188DC99C42DF7F8E5"><enum>(C)</enum><text>by redesignating
subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph commented="no" id="H6F4E8E93BCB146A4828231BF3B026CF7"><enum>(D)</enum><text>by striking
<quote>In any proceeding</quote> and inserting the following:</text>
<quoted-block id="H2BB21E3A01204B5F9A5797AA17AF165B" style="OLC">
<subparagraph commented="no" id="H6CC07E875EAA491C952FE4EC3C3825B0"><enum>(A)</enum><header>In
general</header><text>In any proceeding</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H4F1B798C8CC140D8985E060C852027C0"><enum>(E)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block id="H49EC8EF9348743AA853813131131B1D6" style="OLC">
<subparagraph commented="no" id="H1F3AD1189FD8488C9BB797521FAF4ABE"><enum>(B)</enum><header>Cease-and-desist
proceedings</header><text>In any proceeding instituted pursuant to subsection
(k) against any person, the Commission may impose a civil penalty if the
Commission finds, on the record, after notice and opportunity for hearing, that
such person—</text>
<clause commented="no" id="H60558D36DB404F6F96E439479DF0180C"><enum>(i)</enum><text>is violating or
has violated any provision of this title, or any rule or regulation issued
under this title; or</text>
</clause><clause commented="no" id="H6D185BE58F5A492C9286FB9BC314013F"><enum>(ii)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
issued under this
title.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" id="H7FD7E5758014417AA3E14A6839452BBE"><enum>(b)</enum><header>Extraterritorial
jurisdiction of the antifraud provisions of the Federal securities
laws</header>
<paragraph commented="no" id="H659FBB0C34CF45178416D8E624689189"><enum>(1)</enum><header>Under the
Securities Act of 1933</header><text display-inline="yes-display-inline">Section 22 of the Securities Act of 1933
(15 U.S.C. 77v(a)) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H24D74F7F1EDC4173B116FD22171FE04D" style="OLC">
<subsection commented="no" id="HD341ACA40D194171A72A466FDE6EABE2"><enum>(c)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The district
courts of the United States and the United States courts of any Territory shall
have jurisdiction of an action or proceeding brought or instituted by the
Commission or the United States alleging a violation of section 17(a)
involving—</text>
<paragraph commented="no" id="H2C458A1598D4414990861BEDAE7E6ED9"><enum>(1)</enum><text>conduct within the
United States that constitutes significant steps in furtherance of the
violation, even if the securities transaction occurs outside the United States
and involves only foreign investors; or</text>
</paragraph><paragraph commented="no" id="H863269F1BA134C1CA26A02BB0BF90DE9"><enum>(2)</enum><text>conduct occurring
outside the United States that has a foreseeable substantial effect within the
United
States.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H4D08A5497E5242B686FAFC471D2EC13F"><enum>(2)</enum><header>Under the
Securities Exchange Act of 1934</header><text display-inline="yes-display-inline">Section 27 of the Securities Exchange Act
of 1934 (15 U.S.C. 78aa) is amended—</text>
<subparagraph commented="no" id="H7B53D69B4F8A43ACA9E419C8CE615D78"><enum>(A)</enum><text>by striking
<quote>The district</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H790A7E421C844F9A9E5855378E63912D" style="OLC">
<subsection commented="no" id="HF27267B39C104A3994276DA2A193EC22"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The
district</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H429793D31E5F4D5383433EF2503E4853"><enum>(B)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE286CCD5D0AC4612B1F82C1B7D502337" style="OLC">
<subsection commented="no" id="HABCE922A5A984214B4D84F97898DECD2"><enum>(b)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The district
courts of the United States and the United States courts of any Territory shall
have jurisdiction of an action or proceeding brought or instituted by the
Commission or the United States alleging a violation of the antifraud
provisions of this title involving—</text>
<paragraph commented="no" id="HBE8FFFE28CB04F24A8642A788D371215"><enum>(1)</enum><text>conduct within the
United States that constitutes significant steps in furtherance of the
violation, even if the securities transaction occurs outside the United States
and involves only foreign investors; or</text>
</paragraph><paragraph commented="no" id="H2D78D44A556F4E53928B731617D54AC3"><enum>(2)</enum><text>conduct occurring
outside the United States that has a foreseeable substantial effect within the
United
States.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HE69F1A8C3F234ABFB73739971BD3CDEB"><enum>(3)</enum><header>Under the
Investment Advisers Act of 1940</header><text display-inline="yes-display-inline">Section 214 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–14) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6D8E6C7BC49E437FB32C8E3708D675F2"><enum>(A)</enum><text>by striking
<quote>The district</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H29EA70A3321F4C7AA8219B10278D487B" style="OLC">
<subsection commented="no" id="H0B141E51C0A741EF80E7589D83F59CB4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The
district</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="HDA7441CDE55D489BB28C901193F9FAB6"><enum>(B)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H48C810946B154DFA9B0DED0AE2E037FC" style="OLC">
<subsection commented="no" id="HE59065D31AFB426A909D785981D104F9"><enum>(b)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The district
courts of the United States and the United States courts of any Territory shall
have jurisdiction of an action or proceeding brought or instituted by the
Commission or the United States alleging a violation of section 206
involving—</text>
<paragraph commented="no" id="H5D9EBCE8181540FC914EA75BEF25610E"><enum>(1)</enum><text>conduct within the
United States that constitutes significant steps in furtherance of the
violation, even if the violation is committed by a foreign adviser and involves
only foreign investors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8D8844BC96564146A6D5566C5F0E5022"><enum>(2)</enum><text>conduct occurring
outside the United States that has a foreseeable substantial effect within the
United
States.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" id="H9E8FCC752FCE4A179F6B697CFC293256"><enum>(c)</enum><header>Control person
liability under the Securities Exchange Act of 1934</header><text display-inline="yes-display-inline">Section 20(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78t(a)) is amended by inserting after <quote>controlled
person is liable</quote> the following: <quote>(including to the Commission in
any action brought under paragraph (1) or (3) of section 21(d))</quote>.</text>
</subsection></section><section commented="no" id="H053510A898484C0DBDC02C46F0AC3676"><enum>929Q.</enum><header>Revision to
recordkeeping rule</header>
<subsection commented="no" id="H743DFBE47E4F474B8C56644505F4D97E"><enum>(a)</enum><header>Investment
Company Act of 1940 amendments</header><text display-inline="yes-display-inline">Section 31 of the Investment Company Act of
1940 (15 U.S.C. 80a–30) is amended—</text>
<paragraph commented="no" id="H40585F814B0644008AFFF0B3204F66EB"><enum>(1)</enum><text>in subsection
(a)(1), by adding at the end the following: <quote>Each person having custody
or use of the securities, deposits, or credits of a registered investment
company shall maintain and preserve all records that relate to the custody or
use by such person of the securities, deposits, or credits of the registered
investment company for such period or periods as the Commission, by rule or
regulation, may prescribe, as necessary or appropriate in the public interest
or for the protection of investors.</quote>; and</text>
</paragraph><paragraph commented="no" id="HB71A72A9BD2247DAAA0069AAB99A7EE2"><enum>(2)</enum><text>in subsection (b),
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAEA968AFF0514791834EEAE1DD14DE1D" style="OLC">
<paragraph commented="no" id="H54ACBFACC89C4DD98E185301039C7D7A"><enum>(4)</enum><header>Records of
persons with custody or use</header>
<subparagraph commented="no" id="HA36887A2C22C4D65A7EB33A8CCBD44FC"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Records of persons
having custody or use of the securities, deposits, or credits of a registered
investment company that relate to such custody or use, are subject at any time,
or from time to time, to such reasonable periodic, special, or other
examinations and other information and document requests by representatives of
the Commission, as the Commission deems necessary or appropriate in the public
interest or for the protection of investors.</text>
</subparagraph><subparagraph commented="no" id="HDFE4DB555246422DA93A27B3160E8A72"><enum>(B)</enum><header>Certain persons
subject to other regulation</header><text>Any person that is subject to
regulation and examination by a Federal financial institution regulatory agency
(as such term is defined under section 212(c)(2) of title 18, United States
Code) may satisfy any examination request, information request, or document
request described under subparagraph (A), by providing to the Commission a
detailed listing, in writing, of the securities, deposits, or credits of the
registered investment company within the custody or use of such
person.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H80B00B26F58F415989B9903A34C90F5F"><enum>(b)</enum><header>Investment
Advisers Act of 1940 amendment</header><text display-inline="yes-display-inline">Section 204 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–4) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H981C6A9FF76640FCB5BA73A3EBE61F80" style="OLC">
<subsection commented="no" id="H013D35215D4E4E26B6CB495C70A60B11"><enum>(d)</enum><header>Records of
persons with custody or use</header>
<paragraph commented="no" id="H428E1780D79C41FAAE98BA965A2713FA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Records of persons
having custody or use of the securities, deposits, or credits of a client, that
relate to such custody or use, are subject at any time, or from time to time,
to such reasonable periodic, special, or other examinations and other
information and document requests by representatives of the Commission, as the
Commission deems necessary or appropriate in the public interest or for the
protection of investors.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H257B7B9CCD5146B098AF74E7DECAC757"><enum>(2)</enum><header>Certain persons
subject to other regulation</header><text>Any person that is subject to
regulation and examination by a Federal financial institution regulatory agency
(as such term is defined under section 212(c)(2) of title 18, United States
Code) may satisfy any examination request, information request, or document
request described under paragraph (1), by providing the Commission with a
detailed listing, in writing, of the securities, deposits, or credits of the
client within the custody or use of such
person.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="H4A112C05F2314807A9F63B5699C619A8"><enum>929R.</enum><header>Beneficial
ownership and short-swing profit reporting</header>
<subsection commented="no" id="H85853988398941F98AF9F09A573BAA3E"><enum>(a)</enum><header>Beneficial
ownership reporting</header><text display-inline="yes-display-inline">Section
13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended—</text>
<paragraph commented="no" id="H4D49C74DA0F54905871FFFF4EB81567B"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)(1)—</text>
<subparagraph commented="no" id="H97EB54CE633241C8B3A63AA4171D07C9"><enum>(A)</enum><text>by inserting after
<quote>within ten days after such acquisition</quote> the following: <quote>or
within such shorter time as the Commission may establish by rule</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="HA4E6EE73B84046E4BA2B58A844494C18"><enum>(B)</enum><text>by striking
<quote>send to the issuer of the security at its principal executive office, by
registered or certified mail, send to each exchange where the security is
traded, and</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="HD2FD36D265434F71A0DB02898A0A33C9"><enum>(2)</enum><text>in subsection
(d)(2)—</text>
<subparagraph commented="no" id="HC19C68E24F3D48F9BB42ABB7733F93FA"><enum>(A)</enum><text>by striking
<quote>in the statements to the issuer and the exchange, and</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="H3AFA6C3DF7F944C4A87B8D9C03D9CF19"><enum>(B)</enum><text>by striking
<quote>shall be transmitted to the issuer and the exchange and</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H74D86DEECE924FAFB179D71DC5624056"><enum>(3)</enum><text>in subsection
(g)(1), by striking <quote>shall send to the issuer of the security
and</quote>; and</text>
</paragraph><paragraph commented="no" id="H185FE78EC6C14D129088817275804E23"><enum>(4)</enum><text>in subsection
(g)(2)—</text>
<subparagraph commented="no" id="H57498C19CAC04373B4A34E19A31C96B2"><enum>(A)</enum><text>by striking
<quote>sent to the issuer and</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H5E383513508A4803A4FF6C6E31704E3B"><enum>(B)</enum><text>by striking
<quote>shall be transmitted to the issuer and</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HA1D2AA87FD884844A531D85A1F16EB5E"><enum>(b)</enum><header>Short-swing
profit reporting</header><text display-inline="yes-display-inline">Section
16(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78p(a)) is
amended—</text>
<paragraph commented="no" id="H71D150FF10EF4CBDBC08E58D9A23E38C"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>(and, if such security is registered on a national
securities exchange, also with the exchange)</quote>; and</text>
</paragraph><paragraph commented="no" id="H66A4F7DE3D5E4D29BA2E0A57E217C0BD"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)(B), by inserting after
<quote>officer</quote> the following: <quote>, or within such shorter time as
the Commission may establish by rule</quote>.</text>
</paragraph></subsection></section><section commented="no" id="H596F4C1ED135408FB5A7CD50E28E6F87"><enum>929S.</enum><header>Fingerprinting</header><text display-inline="no-display-inline">Section 17(f)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78q(f)(2)) is amended—</text>
<paragraph commented="no" id="H0A5B692EABC746E0B5F3FFC1F284D89D"><enum>(1)</enum><text>in the first
sentence, by striking <quote>and registered clearing agency,</quote> and
inserting <quote>registered clearing agency, registered securities information
processor, national securities exchange, and national securities
association</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H777D8B481F6A44A4B27E360A58A9D2A5"><enum>(2)</enum><text>in the second
sentence, by striking <quote>or clearing agency,</quote> and inserting
<quote>clearing agency, securities information processor, national securities
exchange, or national securities association,</quote>.</text>
</paragraph></section><section commented="no" id="H18D9CA0F956F42FCAF77AA754418DD39"><enum>929T.</enum><header>Equal
treatment of self-regulatory organization rules</header><text display-inline="no-display-inline">Section 29(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78cc(a)) is amended by striking <quote>an exchange required
thereby</quote> and inserting <quote>a self-regulatory
organization,</quote>.</text>
</section><section commented="no" id="H5659CDCD7EBB406BBD67FE4E25DEF7A0"><enum>929U.</enum><header>Deadline for
completing examinations, inspections and enforcement actions</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 4D the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HBFBB5249058E4FD6A1611ACCA8A2A7EB" style="OLC">
<section commented="no" id="H572E6541FA4C4EEEB42D0285EBF32799"><enum>4E.</enum><header>Deadline for
completing enforcement investigations and compliance examinations and
inspections</header>
<subsection commented="no" id="H83FB5FA466F14ABFA0413F30D2B82D43"><enum>(a)</enum><header>Enforcement
investigations</header>
<paragraph commented="no" id="H5F76FA0228A943A3A504A219C8AA21A4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 180
days after the date on which Commission staff provide a written Wells
notification to any person, the Commission staff shall either file an action
against such person or provide notice to the Director of the Division of
Enforcement of its intent to not file an action.</text>
</paragraph><paragraph commented="no" id="HBEA4A3ABDEDC4E4AA64C4A93BFED453B"><enum>(2)</enum><header>Exceptions for
certain complex actions</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), if the
Director of the Division of Enforcement of the Commission or the Director’s
designee determines that a particular enforcement investigation is sufficiently
complex such that a determination regarding the filing of an action against a
person cannot be completed within the deadline specified in paragraph (1), the
Director of the Division of Enforcement of the Commission or the Director’s
designee may, after providing notice to the Chairman of the Commission, extend
such deadline as needed for one additional 180-day period. If after the
additional 180-day period the Director of the Division of Enforcement of the
Commission or the Director’s designee determines that a particular enforcement
investigation is sufficiently complex such that a determination regarding the
filing of an action against a person cannot be completed within the additional
180-day period, the Director of the Division of Enforcement of the Commission
or the Director’s designee may, after providing notice to and receiving
approval of the Commission, extend such deadline as needed for one or more
additional successive 180-day periods.</text>
</paragraph></subsection><subsection commented="no" id="H0E857BE90DA64085BAF1177E90A001A6"><enum>(b)</enum><header>Compliance
examinations and inspections</header>
<paragraph commented="no" id="H280600FA2BAF47F68B3AE7FBA52CDADA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 180
days after the date on which Commission staff completes the on-site portion of
its compliance examination or inspection or receives all records requested from
the entity being examined or inspected, whichever is later, Commission staff
shall provide the entity being examined or inspected with written notification
indicating either that the examination or inspection has concluded, has
concluded without findings, or that the staff requests the entity undertake
corrective action.</text>
</paragraph><paragraph commented="no" id="H07FFF7B303C54DA3BC55B51630FAF775"><enum>(2)</enum><header>Exception for
certain complex actions</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), if the head
of any division or office within the Commission responsible for compliance
examinations and inspections or his designee determines that a particular
compliance examination or inspection is sufficiently complex such that a
determination regarding concluding the examination or inspection, or regarding
the staff requests the entity undertake corrective action, cannot be completed
within the deadline specified in paragraph (1), the head of any division or
office within the Commission responsible for compliance examinations and
inspections or his designee may, after providing notice to the Chairman of the
Commission, extend such deadline as needed for one additional 180-day
period.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="HBF4685E1A87B4056BFA6A57673EC5179"><enum>929V.</enum><header>Security
Investor Protection Act amendments</header>
<subsection commented="no" id="HEC38F907B3FA4DC799287C5A611741D7"><enum>(a)</enum><header>Increasing the
minimum assessment paid by SIPC members</header><text>Section 4(d)(1)(C) of the
Securities Investor Protection Act of 1970 (15 U.S.C. 78ddd(d)(1)(C)) is
amended by striking <quote>$150 per annum</quote> and inserting the following:
<quote>0.02 percent of the gross revenues from the securities business of such
member of SIPC</quote>.</text>
</subsection><subsection commented="no" id="H8993894CF0CF42D6BBE1747EBAD8A144"><enum>(b)</enum><header>Increasing the
fine for prohibited acts under SIPA</header><text>Section 14(c) of the
Securities Investor Protection Act of 1970 (15 U.S.C. 78jjj(c)) is
amended—</text>
<paragraph commented="no" id="HEFC6623CEFEA4F04AD57DAC06998F9B9"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>$50,000</quote> and inserting <quote>$250,000</quote>;
and</text>
</paragraph><paragraph commented="no" id="H43610B514A9842198C911B852A4AA6FA"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>$50,000</quote> and inserting
<quote>$250,000</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H9AAB531CAEDD42339BFF6C06F7FE7739"><enum>(c)</enum><header>Penalty for
misrepresentation of SIPC membership or protection</header><text>Section 14 of
the Securities Investor Protection Act of 1970 (15 U.S.C. 78jjj) is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF3F284A7D89A43438BA44395D673AD7B" style="OLC">
<subsection commented="no" id="H03EA077E9C1145618E68F397F866D5A2"><enum>(d)</enum><header>Misrepresentation
of SIPC membership or protection</header>
<paragraph commented="no" id="HB98433A6A06E4269806B1CB5B7201D31"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Any person who
falsely represents by any means (including, without limitation, through the
Internet or any other medium of mass communication), with actual knowledge of
the falsity of the representation and with an intent to deceive or cause injury
to another, that such person, or another person, is a member of SIPC or that
any person or account is protected or is eligible for protection under this Act
or by SIPC, shall be liable for any damages caused thereby and shall be fined
not more than $250,000 or imprisoned for not more than 5 years.</text>
</paragraph><paragraph commented="no" id="HE7A36901C0274FF4A0AE3902171BFF24"><enum>(2)</enum><header>Injunctions</header><text>Any
court having jurisdiction of a civil action arising under this Act may grant
temporary injunctions and final injunctions on such terms as the court deems
reasonable to prevent or restrain any violation of paragraph (1). Any such
injunction may be served anywhere in the United States on the person enjoined,
shall be operative throughout the United States, and shall be enforceable, by
proceedings in contempt or otherwise, by any United States court having
jurisdiction over that person. The clerk of the court granting the injunction
shall, when requested by any other court in which enforcement of the injunction
is sought, transmit promptly to the other court a certified copy of all papers
in the case on file in such clerk’s
office.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFF8DEA6D0A204EAFB6195320A1A63CF4" section-type="subsequent-section"><enum>929W.</enum><header>Notice to missing
security holders</header><text display-inline="no-display-inline">Section 17A
of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1) is amended by adding
at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6E9140A62E9E489CA39587268673F13F" style="OLC">
<subsection commented="no" id="H075C408D901940D09651CF958869E188"><enum>(g)</enum><header>Due diligence
for the delivery of dividends, interest, and other valuable property
rights</header>
<paragraph commented="no" id="H03DFA22E1E9741A4AA83DE4FEAC7CD4B"><enum>(1)</enum><header>Revision of
rules required</header><text>The Commission shall revise its regulations in
section 240.17Ad–17 of title 17, Code of Federal Regulations, as in effect on
December 8, 1997, to extend the application of such section to brokers and
dealers and to provide for the following:</text>
<subparagraph commented="no" id="H73486DFBE0C74D109E8877B22918AAAE"><enum>(A)</enum><text>A requirement that
the paying agent provide a single written notification to each missing security
holder that the missing security holder has been sent a check that has not yet
been negotiated. The written notification may be sent along with a check or
other mailing subsequently sent to the missing security holder but must be
provided no later than 7 months after the sending of the not yet negotiated
check.</text>
</subparagraph><subparagraph commented="no" id="HD29E9228ACD3422790BC208C9C26531C"><enum>(B)</enum><text>An exclusion for
paying agents from the notification requirements when the value of the not yet
negotiated check is less than $25.</text>
</subparagraph><subparagraph commented="no" id="HEA98B8C79CD4494A8D245394FA4904F1"><enum>(C)</enum><text>A provision
clarifying that the requirements described in subparagraph (A) shall have no
effect on State escheatment laws.</text>
</subparagraph><subparagraph commented="no" id="H33610012FFAD4301BCD0B18E57ACDFCF"><enum>(D)</enum><text>For purposes of
such revised regulations—</text>
<clause commented="no" id="H223C85F207234B5688B2A864595879C3"><enum>(i)</enum><text>a security holder
shall be considered a <quote>missing security holder</quote> if a check is sent
to the security holder and the check is not negotiated before the earlier of
the paying agent sending the next regularly scheduled check or the elapsing of
6 months after the sending of the not yet negotiated check; and</text>
</clause><clause commented="no" id="H8DF2BBD9FDA440479D6D1CB202CC9DDC"><enum>(ii)</enum><text>the term
<term>paying agent</term> includes any issuer, transfer agent, broker, dealer,
investment adviser, indenture trustee, custodian, or any other person that
accepts payments from the issuer of a security and distributes the payments to
the holders of the security.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HFBF949D329374477B65CEEA8F2899C1D"><enum>(2)</enum><header>Rulemaking</header><text>The
Commission shall adopt such rules, regulations, and orders necessary to
implement this subsection no later than 1 year after the date of enactment of
this subsection. In proposing such rules, the Commission shall seek to minimize
disruptions to current systems used by or on behalf of paying agents to process
payment to account holders and avoid requiring multiple paying agents to send
written notification to a missing security holder regarding the same not yet
negotiated
check.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H9D58FEF1E4EF41F88D75665BB0880B3A"><enum>929X.</enum><header>Short sale
reforms</header>
<subsection commented="no" id="H9C268202E9E9457CB338173D80223C45"><enum>(a)</enum><header>Short sale
disclosure</header><text display-inline="yes-display-inline">Section 13(f) of
the Securities Exchange Act of 1934 (15 U.S.C. 78m(f)) is amended by
redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5),
and (6), respectively, and inserting after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H282047E05D054CCC95BB448B7D097B75" style="OLC">
<paragraph commented="no" id="HB6EB40A2955445B9BE3C35BCE9D1668D"><enum>(2)</enum><text display-inline="yes-display-inline">The Commission shall prescribe rules
providing for the public disclosure of the name of the issuer and the title,
class, CUSIP number, aggregate amount of the number of short sales of each
security, and any additional information determined by the Commission following
the end of the reporting period. At a minimum, such public disclosure shall
occur every
month.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HDFFFAF07DDC1463C9718343561C37385"><enum>(b)</enum><header>Short selling
enforcement</header><text>Section 9 of the Securities Exchange Act of 1934 (15
U.S.C. 78i) is amended—</text>
<paragraph commented="no" id="H86EE78DABE3D4A659C63AAB321A9265D"><enum>(1)</enum><text>by redesignating
subsections (d), (e), (f), (g), (h), and (i) as subsections (e), (f), (g), (h),
(i), and (j), respectively; and</text>
</paragraph><paragraph commented="no" id="H539ABCBD17854D849341EEFFB142A147"><enum>(2)</enum><text>inserting after
subsection (c), the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H27F19A2CC69D4A4FA0A3FD1437EFC123" style="OLC">
<subsection commented="no" id="HB1306CED951E41609DD11800D4DD7189"><enum>(d)</enum><header>Transactions
relating to short sales of securities</header><text display-inline="yes-display-inline">It shall be unlawful for any person,
directly or indirectly, by the use of the mails or any means or instrumentality
of interstate commerce, or of any facility of any national securities exchange,
or for any member of a national securities exchange to effect, alone or with
one or more other persons, a manipulative short sale of any security. The
Commission shall issue such other rules as are necessary or appropriate to
ensure that the appropriate enforcement options and remedies are available for
violations of this subsection in the public interest or for the protection of
investors.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HE4BC511FE82046CF94D59D4B6ADCB7DD"><enum>(c)</enum><header>Investor
notification</header><text display-inline="yes-display-inline">Section 15 of
the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended—</text>
<paragraph commented="no" id="HC93801C475CF4F03987B5E8D199EB861"><enum>(1)</enum><text>by redesignating
subsections (e), (f), (g), (h), and (i) as subsections (f), (g), (h), (i), and
(j), respectively; and</text>
</paragraph><paragraph commented="no" id="H4A26365EC86B47288D3A057049377845"><enum>(2)</enum><text>inserting after
subsection (d) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8FA1055C8BAA4D369DB4C56F4B9FD3E7" style="OLC">
<subsection commented="no" id="HDCF0BAF62ED349588DB8995B5D9F71CA"><enum>(e)</enum><header>Notices to
customers regarding securities lending</header><text display-inline="yes-display-inline">Every registered broker or dealer shall
provide notice to its customers that they may elect not to allow their fully
paid securities to be used in connection with short sales. If a broker or
dealer uses a customer’s securities in connection with short sales, the broker
or dealer shall provide notice to its customer that the broker or dealer may
receive compensation in connection with lending the customer’s securities. The
Commission, by rule, as it deems necessary or appropriate in the public
interest and for the protection of investors, may prescribe the form, content,
time, and manner of delivery of any notice required under this
paragraph.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" id="HD6FF72A2E81943AC981FDA0EED3FB880"><enum>929Y.</enum><header>Study on
extraterritorial private rights of action</header>
<subsection commented="no" id="HFDE51FA7F1214210B9AAE551AC8138EE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Securities and
Exchange Commission of the United States shall solicit public comment and
thereafter conduct a study to determine the extent to which private rights of
action under the antifraud provisions of the Securities and Exchange Act of
1934 (15 U.S.C. 78u-4) should be extended to cover—</text>
<paragraph commented="no" id="H18FB9D6718F44EEE80343A55152B0B60"><enum>(1)</enum><text>conduct within the
United States that constitutes a significant step in the furtherance of the
violation, even if the securities transaction occurs outside the United States
and involves only foreign investors; and</text>
</paragraph><paragraph commented="no" id="H1C537E4BDDB6432C8F598A1561E6BF64"><enum>(2)</enum><text>conduct occurring
outside the United States that has a foreseeable substantial effect within the
United States.</text>
</paragraph></subsection><subsection commented="no" id="HECBCF446CA6C4C90801B2A08408B533D"><enum>(b)</enum><header>Contents</header><text>The
study shall consider and analyze, among other things—</text>
<paragraph commented="no" id="H2B4A780011434B5CA68572A9A0E59783"><enum>(1)</enum><text>the scope of such
a private right of action, including whether it should extend to all private
actors or whether it should be more limited to extend just to institutional
investors or otherwise;</text>
</paragraph><paragraph commented="no" id="H6A2EBCC241184C91911F9FEE0D83D2C8"><enum>(2)</enum><text>what implications
such a private right of action would have on international comity;</text>
</paragraph><paragraph commented="no" id="H7974C7B908C6484C99097C185C74E2CF"><enum>(3)</enum><text>the economic costs
and benefits of extending a private right of action for transnational
securities frauds; and</text>
</paragraph><paragraph commented="no" id="HD428E218288C42D7888C34FB13000288"><enum>(4)</enum><text>whether a narrower
extraterritorial standard should be adopted.</text>
</paragraph></subsection><subsection commented="no" id="HBEA7645A505E4813AE2EAB3D1342F09F"><enum>(c)</enum><header>Report</header><text>A
report of the study shall be submitted and recommendations made to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House not later than 18 months after the
date of enactment of this Act.</text>
</subsection></section><section commented="no" id="H455467543D50444A9F066F9675C59CF1"><enum>929Z.</enum><header>GAO study on
securities litigation</header>
<subsection commented="no" id="H09F0D53F4900413FA89B4650B61ADE21"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study on the impact of authorizing a private right of
action against any person who aids or abets another person in violation of the
securities laws. To the extent feasible, this study shall include—</text>
<paragraph commented="no" id="HBA96BFB8DA914CBE8A56A218AEB407ED"><enum>(1)</enum><text>a review of the
role of secondary actors in companies issuance of securities;</text>
</paragraph><paragraph commented="no" id="H06D40C7BB41847879EB596BB3BB87132"><enum>(2)</enum><text>the courts
interpretation of the scope of liability for secondary actors under Federal
securities laws after January 14, 2008; and</text>
</paragraph><paragraph commented="no" id="H022902093AF34F899A90E760E1960882"><enum>(3)</enum><text>the types of
lawsuits decided under the Private Securities Litigation Act of 1995.</text>
</paragraph></subsection><subsection commented="no" id="H4D33B8EE6B174E478D50982535E6E14E"><enum>(b)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Comptroller
General shall submit a report to Congress on the findings of the study required
under subsection (a).</text>
</subsection></section></subtitle><subtitle id="H9BD76D385AB142B19984529800C249A4"><enum>C</enum><header>Improvements to
the Regulation of Credit Rating Agencies</header>
<section id="H6940234F165F4FE79E1AE23F7CED7FDC"><enum>931.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="H9C82B411EAE54BD28FFF67F67B45E05D"><enum>(1)</enum><text>Because of the
systemic importance of credit ratings and the reliance placed on credit ratings
by individual and institutional investors and financial regulators, the
activities and performances of credit rating agencies, including nationally
recognized statistical rating organizations, are matters of national public
interest, as credit rating agencies are central to capital formation, investor
confidence, and the efficient performance of the United States economy.</text>
</paragraph><paragraph id="HD358C3A3ADA34E3AB9CE4BE286A4FFF6"><enum>(2)</enum><text>Credit rating
agencies, including nationally recognized statistical rating organizations,
play a critical <quote>gatekeeper</quote> role in the debt market that is
functionally similar to that of securities analysts, who evaluate the quality
of securities in the equity market, and auditors, who review the financial
statements of firms. Such role justifies a similar level of public oversight
and accountability.</text>
</paragraph><paragraph id="H2553E50DA0F541C2A0FDC01BF3AA10B4"><enum>(3)</enum><text>Because credit
rating agencies perform evaluative and analytical services on behalf of
clients, much as other financial <quote>gatekeepers</quote> do, the activities
of credit rating agencies are fundamentally commercial in character and should
be subject to the same standards of liability and oversight as apply to
auditors, securities analysts, and investment bankers.</text>
</paragraph><paragraph id="HDEE8B1AF68E948E9A9F895338B06C505"><enum>(4)</enum><text>In certain
activities, particularly in advising arrangers of structured financial products
on potential ratings of such products, credit rating agencies face conflicts of
interest that need to be carefully monitored and that therefore should be
addressed explicitly in legislation in order to give clearer authority to the
Securities and Exchange Commission.</text>
</paragraph><paragraph id="H07A7DB1A6A2B49C298A2A31D05E9FD2C"><enum>(5)</enum><text>In the recent
financial crisis, the ratings on structured financial products have proven to
be inaccurate. This inaccuracy contributed significantly to the mismanagement
of risks by financial institutions and investors, which in turn adversely
impacted the health of the economy in the United States and around the world.
Such inaccuracy necessitates increased accountability on the part of credit
rating agencies.</text>
</paragraph></section><section id="H936FA44BA20A4E49A3A3E1F87F9048E5"><enum>932.</enum><header>Enhanced
regulation, accountability, and transparency of nationally recognized
statistical rating organizations</header>
<subsection id="HE673A3A95E144791A04C897D823DB282"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 15E of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–7) is amended—</text>
<paragraph commented="no" id="H4AA9FE55D3DF481E826493D00842605A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" id="H9E30D7FEAFE943F3A84487842351DC8A"><enum>(A)</enum><text>in paragraph
(1)(A), by striking <quote>furnished</quote> and inserting <quote>filed</quote>
and by striking <quote>furnishing</quote> and inserting
<quote>filing</quote>;</text>
</subparagraph><subparagraph commented="no" id="H96B7460566A4465DAC7FC2F038DCE57D"><enum>(B)</enum><text>in paragraph
(1)(B), by striking <quote>furnishing</quote> and inserting
<quote>filing</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HAAA072F02C4947E6BF4E4321C6F19D23"><enum>(C)</enum><text>in the first
sentence of paragraph (2), by striking <quote>furnish to</quote> and inserting
<quote>file with</quote>;</text>
</subparagraph></paragraph><paragraph id="H4E286B6CB1D64139B750A047EB73F0D5"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="H74E2953AC46F421FA3E3EFF9DBD6E00A"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="H58B0B1C17B7544FA9AAABC11F2E93EA7"><enum>(i)</enum><text>in
the second sentence, by inserting <quote>any other provision of this section,
or</quote> after <quote>Notwithstanding</quote>; and</text>
</clause><clause id="HCDA0B6FBCECC432791B4DF7E6276E32A"><enum>(ii)</enum><text>by
inserting after the period at the end the following: <quote>Nothing in this
paragraph may be construed to afford a defense against any action or proceeding
brought by the Commission to enforce the antifraud provisions of the securities
laws.</quote>; and</text>
</clause></subparagraph><subparagraph id="H82E9FF45E21D47ECA76CA8585A1000C9"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDAA74B2CB5984557903B3DE899643D8D" style="OLC">
<paragraph id="HB6FAA102D08F4B06930129AF404A7A00"><enum>(3)</enum><header>Internal
controls over processes for determining credit ratings</header>
<subparagraph id="HB5221957DC8C4B3CBD54669A9B3BAE52"><enum>(A)</enum><header>In
general</header><text>Each nationally recognized statistical rating
organization shall establish, maintain, enforce, and document an effective
internal control structure governing the implementation of and adherence to
policies, procedures, and methodologies for determining credit ratings, taking
into consideration such factors as the Commission may prescribe, by
rule.</text>
</subparagraph><subparagraph id="HF29B263761154AB28739B9EBB58CCC4B"><enum>(B)</enum><header>Attestation
requirement</header><text>The Commission shall prescribe rules requiring each
nationally recognized statistical rating organization to submit to the
Commission an annual internal controls report, which shall contain—</text>
<clause id="HEC3414BB7F524AC89BA6ACE81E4D243A"><enum>(i)</enum><text>a
description of the responsibility of the management of the nationally
recognized statistical rating organization in establishing and maintaining an
effective internal control structure under subparagraph (A);</text>
</clause><clause id="H308205EF60144B219E2F3D963F0A1CB5"><enum>(ii)</enum><text>an assessment of
the effectiveness of the internal control structure of the nationally
recognized statistical rating organization; and</text>
</clause><clause id="H0D0C13627ECE40B8A28EBB655A7E16EE"><enum>(iii)</enum><text>the attestation
of the chief executive officer, or equivalent individual, of the nationally
recognized statistical rating
organization.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H8C93811196FD42D0997A1EBA3D06875E"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph id="H49F91EE1B37E46F5BEFDA7DC612F8350"><enum>(A)</enum><text>by inserting after
<quote>or revoke the registration of any nationally recognized statistical
rating organization</quote> the following: <quote>, or with respect to any
person who is associated with, who is seeking to become associated with, or, at
the time of the alleged misconduct, who was associated or was seeking to become
associated with a nationally recognized statistical rating organization, the
Commission, by order, shall censure, place limitations on the activities or
functions of such person, suspend for a period not exceeding 1 year, or bar
such person from being associated with a nationally recognized statistical
rating organization,</quote>;</text>
</subparagraph><subparagraph id="H95D740585AA848368CFBB8C0CC26A39D"><enum>(B)</enum><text>by inserting
<quote>bar</quote> after <quote>placing of limitations,
suspension,</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF52195418DD6472E81FF4C934A92E9A8"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>furnished to</quote> and inserting <quote>filed with</quote>;</text>
</subparagraph><subparagraph id="H4985A40DC8824B7BA7922FD3D15AA99C"><enum>(D)</enum><text>in paragraph (2),
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii),
respectively, and adjusting the clause margins accordingly;</text>
</subparagraph><subparagraph id="H7872B4E60D1241BBB29F8470B2EE8D96"><enum>(E)</enum><text>by redesignating
paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and
adjusting the subparagraph margins accordingly;</text>
</subparagraph><subparagraph id="H87E20DCA8B8443EC866D9BA0ADEB5AB5"><enum>(F)</enum><text>in the matter
preceding subparagraph (A), as so redesignated, by striking <quote>The
Commission</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9E35B2953A604C489A0855E96E3E6153" style="OLC">
<paragraph id="HF705B55F83FB4D9AA7C6298D1A5CB619"><enum>(1)</enum><header>In
general</header><text>The
Commission</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H78E6945FA3B5413488A0CFCC64A8B085"><enum>(G)</enum><text>in subparagraph
(D), as so redesignated—</text>
<clause commented="no" id="H7869D201BDF944ADB10CC3620D107197"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>furnish</quote> and
inserting <quote>file</quote>; and</text>
</clause><clause commented="no" id="HABACE67ABD214150B0E7D128E3AF589A"><enum>(ii)</enum><text>by striking
<quote>or</quote> at the end.</text>
</clause></subparagraph><subparagraph id="HA18E72DFCFDD433B8009F025C2A9CD08"><enum>(H)</enum><text>in subparagraph
(E), as so redesignated, by striking the period at the end and inserting a
semicolon; and</text>
</subparagraph><subparagraph id="HDA7B9D81966D486DBA14FDC1F28592FF"><enum>(I)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H01AD2725EBB548F89BEE8454C653360D" style="OLC">
<subparagraph id="H0DF9B50A1AC3423A8C2D95AC4AB5B70E"><enum>(F)</enum><text>has failed
reasonably to supervise, with a view to preventing a violation of the
securities laws, an individual who commits such a violation, if the individual
is subject to the supervision of that person.</text>
</subparagraph><paragraph id="H3B604B142933404FA375B23BFA57FE80"><enum>(2)</enum><header>Suspension or
revocation for particular class of securities</header>
<subparagraph id="HC794A8257C8B44EB856693AFA1000AA5"><enum>(A)</enum><header>In
general</header><text>The Commission may temporarily suspend or permanently
revoke the registration of a nationally recognized statistical rating
organization with respect to a particular class or subclass of securities, if
the Commission finds, on the record after notice and opportunity for hearing,
that the nationally recognized statistical rating organization does not have
adequate financial and managerial resources to consistently produce credit
ratings with integrity.</text>
</subparagraph><subparagraph id="H49900080C5B04A7397B086303D0AAA72"><enum>(B)</enum><header>Considerations</header><text>In
making any determination under subparagraph (A), the Commission shall
consider—</text>
<clause id="H293456BD1E694BE18971FBE9CD8A22CC"><enum>(i)</enum><text>whether the
nationally recognized statistical rating organization has failed over a
sustained period of time, as determined by the Commission, to produce ratings
that are accurate for that class or subclass of securities; and</text>
</clause><clause id="H7D6316FCFA9D4192984D4ED06FFE01A1"><enum>(ii)</enum><text>such other
factors as the Commission may
determine.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1CC7DA2758E3455C8100CF7618108ED1"><enum>(4)</enum><text>in subsection (h),
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H53C4AABD6DCF45E6B6778B8B82C64579" style="OLC">
<paragraph id="HF71410B1440F4E88856EE09A7E0273C4"><enum>(3)</enum><header>Separation of
ratings from sales and marketing</header>
<subparagraph id="H813FEE2B61064D40BC1D2F0FFA361B7F"><enum>(A)</enum><header>Rules
required</header><text>The Commission shall issue rules to prevent the sales
and marketing considerations of a nationally recognized statistical rating
organization from influencing the production of ratings by the nationally
recognized statistical rating organization.</text>
</subparagraph><subparagraph id="H4F222D66D99E44A3A902419421789F83"><enum>(B)</enum><header>Contents of
rules</header><text>The rules issued under subparagraph (A) shall provide
for—</text>
<clause id="HB4F679E35BE84EBD87ED64AE1E9FF460"><enum>(i)</enum><text>exceptions for
small nationally recognized statistical rating organizations with respect to
which the Commission determines that the separation of the production of
ratings and sales and marketing activities is not appropriate; and</text>
</clause><clause id="H62EFE46BA91A41C6858FE17795768F8A"><enum>(ii)</enum><text>suspension or
revocation of the registration of a nationally recognized statistical rating
organization, if the Commission finds, on the record, after notice and
opportunity for a hearing, that—</text>
<subclause id="HFFF000531A1B4C2580D6009F26B5D1D4"><enum>(I)</enum><text>the nationally
recognized statistical rating organization has committed a violation of a rule
issued under this subsection; and</text>
</subclause><subclause id="H11D3FCFDD5BD4711841242B4E245C251"><enum>(II)</enum><text>the violation of
a rule issued under this subsection affected a rating.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF82323FE2E28461A8A1C4381BD16778A"><enum>(4)</enum><header>Look-back
requirement</header>
<subparagraph commented="no" id="H2538A779B4A74C68AC249852AD752E3B"><enum>(A)</enum><header>Review by the
nationally recognized statistical rating organization</header><text display-inline="yes-display-inline">Each nationally recognized statistical
rating organization shall establish, maintain, and enforce policies and
procedures reasonably designed to ensure that, in any case in which an employee
of a person subject to a credit rating of the nationally recognized statistical
rating organization or the issuer, underwriter, or sponsor of a security or
money market instrument subject to a credit rating of the nationally recognized
statistical rating organization was employed by the nationally recognized
statistical rating organization and participated in any capacity in determining
credit ratings for the person or the securities or money market instruments
during the 1-year period preceding the date an action was taken with respect to
the credit rating, the nationally recognized statistical rating organization
shall—</text>
<clause commented="no" id="HE26912C6C0DE4CC28B75ED0E5AE65857"><enum>(i)</enum><text>conduct a review
to determine whether any conflicts of interest of the employee influenced the
credit rating; and</text>
</clause><clause commented="no" id="H56EB595A1F324A08A9384D8ED191BEAB"><enum>(ii)</enum><text>take action to
revise the rating if appropriate, in accordance with such rules as the
Commission shall prescribe.</text>
</clause></subparagraph><subparagraph commented="no" id="H85D1F422B0E84E56AD9ECAEF8C778857"><enum>(B)</enum><header>Review by
commission</header>
<clause commented="no" id="H09B0630D8B2B4441B570FF225C8C62E7"><enum>(i)</enum><header>In
general</header><text>The Commission shall conduct periodic reviews of the
policies described in subparagraph (A) and the implementation of the policies
at each nationally recognized statistical rating organization to ensure they
are reasonably designed and implemented to most effectively eliminate conflicts
of interest.</text>
</clause><clause commented="no" id="H7176F889E569407CBE9561DAF990F495"><enum>(ii)</enum><header>Timing of
reviews</header><text>The Commission shall review the code of ethics and
conflict of interest policy of each nationally recognized statistical rating
organization—</text>
<subclause commented="no" id="HAE58D9E7369B4ACAAE65A7D060FF0CC0"><enum>(I)</enum><text>not less
frequently than annually; and</text>
</subclause><subclause commented="no" id="H92F6454C103A4653943DF1097A45EE27"><enum>(II)</enum><text>whenever such
policies are materially modified or amended.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="HE004EAE663D943BF9445BD305B6A222D"><enum>(5)</enum><header>Report to
Commission on certain employment transitions</header>
<subparagraph commented="no" id="H8D857D393D674D8197ED879BEEFB1146"><enum>(A)</enum><header>Report
required</header><text>Each nationally recognized statistical rating
organization shall report to the Commission any case such organization knows or
can reasonably be expected to know where a person associated with such
organization within the previous 5 years obtains employment with any obligor,
issuer, underwriter, or sponsor of a security or money market instrument for
which the organization issued a credit rating during the 12-month period prior
to such employment, if such employee—</text>
<clause commented="no" id="H4123CAC201C441A5A17E91B071A9F546"><enum>(i)</enum><text>was a senior
officer of such organization;</text>
</clause><clause commented="no" id="HD5552C24DF3540589C9B22CF2A819412"><enum>(ii)</enum><text>participated in
any capacity in determining credit ratings for such obligor, issuer,
underwriter, or sponsor; or</text>
</clause><clause commented="no" id="H4F3E1E8073E449C096CFF7049FF783DE"><enum>(iii)</enum><text display-inline="yes-display-inline">supervised an employee described in clause
(ii).</text>
</clause></subparagraph><subparagraph commented="no" id="HD3AAF57D9C1B42DE9E2E9EF1A9DA98C5"><enum>(B)</enum><header>Public
disclosure</header><text display-inline="yes-display-inline">Upon receiving
such a report, the Commission shall make such information publicly
available.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0AF1D55F289541A19A588DC11ABC01AA"><enum>(5)</enum><text>in subsection
(j)—</text>
<subparagraph id="H367435B7054147A191583950FB858D46"><enum>(A)</enum><text>by striking
<quote>Each</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7B0AACC2FDA04B2FAB41B5353CFF2957" style="OLC">
<paragraph id="H35191C423DA84D9C9E379496B66B3F18"><enum>(1)</enum><header>In
general</header><text>Each</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HB4DFD940C37A40E084A7AAD9B7BDA586"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB18072136B044621B4A60CB9DE2C986B" style="OLC">
<paragraph id="H550233079030453680FE676F4ABA37E3"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H1C143EFFCD864A61BEF882BBAED51B3E"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), an individual
designated under paragraph (1) may not, while serving in the designated
capacity—</text>
<clause id="HBD541F3AED604DB7A2594FE793CAA9AE"><enum>(i)</enum><text>perform credit
ratings;</text>
</clause><clause id="H4B186D9F3E0A461AA369E777C5B8EAD4"><enum>(ii)</enum><text>participate in
the development of ratings methodologies or models;</text>
</clause><clause id="HC0E6954E93B441FCB1D2BB5C3F4E7A92"><enum>(iii)</enum><text>perform
marketing or sales functions; or</text>
</clause><clause id="H5DA810C263B34AA3A7A936FF2D4B7CA2"><enum>(iv)</enum><text>participate in
establishing compensation levels, other than for employees working for that
individual.</text>
</clause></subparagraph><subparagraph id="HBD3F943327CC4175AD0684A483F33E60"><enum>(B)</enum><header>Exception</header><text>The
Commission may exempt a small nationally recognized statistical rating
organization from the limitations under this paragraph, if the Commission finds
that compliance with such limitations would impose an unreasonable burden on
the nationally recognized statistical rating organization.</text>
</subparagraph></paragraph><paragraph id="HD08874F7FF2245D28D2B2271120992F2"><enum>(3)</enum><header>Other
duties</header><text>Each individual designated under paragraph (1) shall
establish procedures for the receipt, retention, and treatment of—</text>
<subparagraph id="HD059C226D2FB4E6C9DC6B0A55D481070"><enum>(A)</enum><text>complaints
regarding credit ratings, models, methodologies, and compliance with the
securities laws and the policies and procedures developed under this section;
and</text>
</subparagraph><subparagraph id="H10780EDD30BF4177BCCFF74B9826B577"><enum>(B)</enum><text>confidential,
anonymous complaints by employees or users of credit ratings.</text>
</subparagraph></paragraph><paragraph id="HFF8FBF46BEE040A0A190C1831A5EC933"><enum>(4)</enum><header>Compensation</header><text display-inline="yes-display-inline">The compensation of each compliance officer
appointed under paragraph (1) shall not be linked to the financial performance
of the nationally recognized statistical rating organization and shall be
arranged so as to ensure the independence of the officer’s judgment.</text>
</paragraph><paragraph id="HEF549F0B2A0E44EFA9B8781C0781A962"><enum>(5)</enum><header>Annual reports
required</header>
<subparagraph id="HBB3E0C12E9B4438E9338BB932DC0E266"><enum>(A)</enum><header>Annual reports
required</header><text>Each individual designated under paragraph (1) shall
submit to the nationally recognized statistical rating organization an annual
report on the compliance of the nationally recognized statistical rating
organization with the securities laws and the policies and procedures of the
nationally recognized statistical rating organization that includes—</text>
<clause id="H7202A7CF90FD4A88AC600C32A4D96A0D"><enum>(i)</enum><text>a
description of any material changes to the code of ethics and conflict of
interest policies of the nationally recognized statistical rating organization;
and</text>
</clause><clause id="H378BE523763748DF8898DC8DB9CB75B7"><enum>(ii)</enum><text>a
certification that the report is accurate and complete.</text>
</clause></subparagraph><subparagraph id="H4742F314659C4E7EB1A74F86F81C55FF"><enum>(B)</enum><header>Submission of
reports to the Commission</header><text>Each nationally recognized statistical
rating organization shall file the reports required under subparagraph (A)
together with the financial report that is required to be submitted to the
Commission under this section.</text>
</subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HAAC1E8B5E1D9424FB2BC684C6148BB2A"><enum>(6)</enum><text>in subsection (k),
by striking <quote>furnish to</quote> and inserting <quote>file
with</quote>;</text>
</paragraph><paragraph commented="no" id="H15A3F6D4BE28443ABBBBE01254C03EF8"><enum>(7)</enum><text>in subsection
(l)(2)(A)(i), by striking <quote>furnished</quote> and inserting
<quote>filed</quote>; and</text>
</paragraph><paragraph id="H06240F35FF2547CD8C72092508D8E3E8"><enum>(8)</enum><text>by striking
subsection (p) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H04374E565CAA446692F38C1D53D541C5" style="OLC">
<subsection id="H6BB99B0273CB46CA9F5C9CFC3D02D493"><enum>(p)</enum><header>Regulation of
nationally recognized statistical rating organizations</header>
<paragraph id="HE89A054A4E154F539A7BC2B0BDDB2111"><enum>(1)</enum><header>Establishment of
Office of Credit Ratings</header>
<subparagraph id="HF6EA7915F53B485CAAF74ABCB71CB5BC"><enum>(A)</enum><header>Office
established</header><text>The Commission shall establish within the Commission
an Office of Credit Ratings (referred to in this subsection as the
<quote>Office</quote>) to administer the rules of the Commission—</text>
<clause id="H272344289B6447BA8312EC314D32DF60"><enum>(i)</enum><text>with respect to
the practices of nationally recognized statistical rating organizations in
determining ratings, for the protection of users of credit ratings and in the
public interest;</text>
</clause><clause id="HDDC4242201C94A108125FDAA428F9C2E"><enum>(ii)</enum><text>to promote
accuracy in credit ratings issued by nationally recognized statistical rating
organizations; and</text>
</clause><clause id="H866344B740FA454CA0CE24C56262EE8F"><enum>(iii)</enum><text>to ensure that
such ratings are not unduly influenced by conflicts of interest.</text>
</clause></subparagraph><subparagraph id="HD2EC5CE598DD456FB1A8F8E24FEFE613"><enum>(B)</enum><header>Director of the
Office</header><text>The head of the Office shall be the Director, who shall
report to the Chairman.</text>
</subparagraph></paragraph><paragraph id="H9FCB7D70944642B3B9D2F764D5E11211"><enum>(2)</enum><header>Staffing</header><text>The
Office established under this subsection shall be staffed sufficiently to carry
out fully the requirements of this section. The staff shall include persons
with knowledge of and expertise in corporate, municipal, and structured debt
finance.</text>
</paragraph><paragraph id="H819F427B737544B2A95773EA1A3327D2"><enum>(3)</enum><header>Commission
examinations</header>
<subparagraph id="H6315DC06D0E54CE194604F36F5B57CF0"><enum>(A)</enum><header>Annual
examinations required</header><text>The Office shall conduct an examination of
each nationally recognized statistical rating organization at least
annually.</text>
</subparagraph><subparagraph id="HD1F077E8299742ECB7C4A0505454B4A9"><enum>(B)</enum><header>Conduct of
examinations</header><text>Each examination under subparagraph (A) shall
include a review of—</text>
<clause id="HE5573FFC780943F7923620BCCB9593DC"><enum>(i)</enum><text>whether the
nationally recognized statistical rating organization conducts business in
accordance with the policies, procedures, and rating methodologies of the
nationally recognized statistical rating organization;</text>
</clause><clause id="H23C7539A120F4FF4AE2E9C04DD40245B"><enum>(ii)</enum><text>the management of
conflicts of interest by the nationally recognized statistical rating
organization;</text>
</clause><clause id="H3822BA183D3A437CB52F9093F613E60E"><enum>(iii)</enum><text>implementation
of ethics policies by the nationally recognized statistical rating
organization;</text>
</clause><clause id="HE7F9726341E847AF8601385B9205468C"><enum>(iv)</enum><text>the internal
supervisory controls of the nationally recognized statistical rating
organization;</text>
</clause><clause id="HA112FF2131B944808BE801D725417F81"><enum>(v)</enum><text>the governance of
the nationally recognized statistical rating organization;</text>
</clause><clause id="H6F88E4D070EA45688F4CDF990F8B9635"><enum>(vi)</enum><text>the activities of
the individual designated by the nationally recognized statistical rating
organization under subsection (j)(1);</text>
</clause><clause id="H663402D330D749AA8464CE7A0511BC52"><enum>(vii)</enum><text>the processing
of complaints by the nationally recognized statistical rating organization;
and</text>
</clause><clause id="HEDFA64F2A1DA4831982D378315669F05"><enum>(viii)</enum><text>the policies of
the nationally recognized statistical rating organization governing the
post-employment activities of former staff of the nationally recognized
statistical rating organization.</text>
</clause></subparagraph><subparagraph id="HAB04E54C2D504A0BAFEC19C9D3417684"><enum>(C)</enum><header>Inspection
reports</header><text>The Commission shall make available to the public, in an
easily understandable format, an annual report summarizing—</text>
<clause id="H143B6A4BCD5D4E13B4122E3C0D3B6C87"><enum>(i)</enum><text>the essential
findings of all examinations conducted under subparagraph (A), as deemed
appropriate by the Commission;</text>
</clause><clause id="H1A058B459AFD499B82EFD8FF5B2A685D"><enum>(ii)</enum><text>the responses by
the nationally recognized statistical rating organizations to any material
regulatory deficiencies identified by the Commission under clause (i);
and</text>
</clause><clause id="H0796AF0DCEC64C66908A893069209AE1"><enum>(iii)</enum><text>whether the
nationally recognized statistical rating organizations have appropriately
addressed the recommendations of the Commission contained in previous reports
under this subparagraph.</text>
</clause></subparagraph></paragraph><paragraph id="H60CC2601E53D42D385012D9436030840"><enum>(4)</enum><header>Rulemaking
authority</header><text>The Commission shall—</text>
<subparagraph id="H74D532EF74194A47B797A20D14CC5A9B"><enum>(A)</enum><text>establish, by
rule, fines, and other penalties applicable to any nationally recognized
statistical rating organization that violates the requirements of this section
and the rules thereunder; and</text>
</subparagraph><subparagraph id="H456ED7C9829E443DA9034CD912E0F8AC"><enum>(B)</enum><text>issue such rules
as may be necessary to carry out this section.</text>
</subparagraph></paragraph></subsection><subsection id="H8A47F12305AF4444B8FCAC11E81317A3"><enum>(q)</enum><header>Transparency of
ratings performance</header>
<paragraph id="H8605EE6D120041639366842FDBD6CD68"><enum>(1)</enum><header>Rulemaking
required</header><text>The Commission shall, by rule, require that each
nationally recognized statistical rating organization publicly disclose
information on the initial credit ratings determined by the nationally
recognized statistical rating organization for each type of obligor, security,
and money market instrument, and any subsequent changes to such credit ratings,
for the purpose of allowing users of credit ratings to evaluate the accuracy of
ratings and compare the performance of ratings by different nationally
recognized statistical rating organizations.</text>
</paragraph><paragraph id="H58E0E3D56FD54C3B9E6EEBD91FBA2595"><enum>(2)</enum><header>Content</header><text>The
rules of the Commission under this subsection shall require, at a minimum,
disclosures that—</text>
<subparagraph id="HE031B9114BB244658F860006D3531401"><enum>(A)</enum><text>are comparable
among nationally recognized statistical rating organizations, to allow users of
credit ratings to compare the performance of credit ratings across nationally
recognized statistical rating organizations;</text>
</subparagraph><subparagraph id="H7E6884F807B748C2918272F92FACE042"><enum>(B)</enum><text>are clear and
informative for investors having a wide range of sophistication who use or
might use credit ratings;</text>
</subparagraph><subparagraph id="HD3378CB67A7F48AD83D41DE416CF12DF"><enum>(C)</enum><text>include
performance information over a range of years and for a variety of types of
credit ratings, including for credit ratings withdrawn by the nationally
recognized statistical rating organization;</text>
</subparagraph><subparagraph id="H2FE26F04DC4B434589A363CEAAB5EA14"><enum>(D)</enum><text>are published and
made freely available by the nationally recognized statistical rating
organization, on an easily accessible portion of its website, and in writing,
when requested;</text>
</subparagraph><subparagraph id="HAF7421B7615143DE8A92DB77A31EDD9C"><enum>(E)</enum><text>are appropriate to
the business model of a nationally recognized statistical rating organization;
and</text>
</subparagraph><subparagraph id="HA3743A80A9AB4550A7A8C82A7148FF8D"><enum>(F)</enum><text display-inline="yes-display-inline">each nationally recognized statistical
rating organization include an attestation with any credit rating it issues
affirming that no part of the rating was influenced by any other business
activities, that the rating was based solely on the merits of the instruments
being rated, and that such rating was an independent evaluation of the risks
and merits of the instrument.</text>
</subparagraph></paragraph></subsection><subsection id="H8E214A5F4E3F4E8EA55DABF9E717AE14"><enum>(r)</enum><header>Credit ratings
methodologies</header><text>The Commission shall prescribe rules, for the
protection of investors and in the public interest, with respect to the
procedures and methodologies, including qualitative and quantitative data and
models, used by nationally recognized statistical rating organizations that
require each nationally recognized statistical rating organization—</text>
<paragraph id="H00D7A51172D74118B313C671168DD043"><enum>(1)</enum><text>to ensure that
credit ratings are determined using procedures and methodologies, including
qualitative and quantitative data and models, that are—</text>
<subparagraph id="H479DA8F8569B432AB1EB024C70029C13"><enum>(A)</enum><text>approved by the
board of the nationally recognized statistical rating organization, a body
performing a function similar to that of a board; and</text>
</subparagraph><subparagraph id="HA64E35F5A4584182AED61D5349BC14F6"><enum>(B)</enum><text>in accordance with
the policies and procedures of the nationally recognized statistical rating
organization for the development and modification of credit rating procedures
and methodologies;</text>
</subparagraph></paragraph><paragraph id="H79706EBA50494680813015079A4B1154"><enum>(2)</enum><text>to ensure that
when material changes to credit rating procedures and methodologies (including
changes to qualitative and quantitative data and models) are made, that—</text>
<subparagraph id="H99DB70D95AED46488659794CF11695C8"><enum>(A)</enum><text>the changes are
applied consistently to all credit ratings to which the changed procedures and
methodologies apply;</text>
</subparagraph><subparagraph id="HB66B3AB7F6A74D4CB49CE7C720033391"><enum>(B)</enum><text>to the extent that
changes are made to credit rating surveillance procedures and methodologies,
the changes are applied to then-current credit ratings by the nationally
recognized statistical rating organization within a reasonable time period
determined by the Commission, by rule; and</text>
</subparagraph><subparagraph id="H5B4F6749F47D42B4B0E8C501937AC932"><enum>(C)</enum><text>the nationally
recognized statistical rating organization publicly discloses the reason for
the change; and</text>
</subparagraph></paragraph><paragraph id="HF8A6CA7997C548B8B4B701C158C422C9"><enum>(3)</enum><text>to notify users of
credit ratings—</text>
<subparagraph id="H574C425177574E9C93EA82338E5CB319"><enum>(A)</enum><text>of the version of
a procedure or methodology, including the qualitative methodology or
quantitative inputs, used with respect to a particular credit rating;</text>
</subparagraph><subparagraph id="H7F0F7603E7B74E97AA95CC2E6AC34DB3"><enum>(B)</enum><text>when a material
change is made to a procedure or methodology, including to a qualitative model
or quantitative inputs;</text>
</subparagraph><subparagraph id="HCEC6CBDD6A6D418FB6978E183A039FDC"><enum>(C)</enum><text>when a significant
error is identified in a procedure or methodology, including a qualitative or
quantitative model, that may result in credit rating actions; and</text>
</subparagraph><subparagraph id="HBD33B263537E45A78823631DFA76675C"><enum>(D)</enum><text>of the likelihood
of a material change described in subparagraph (B) resulting in a change in
current credit ratings.</text>
</subparagraph></paragraph></subsection><subsection id="HEE4552E75F884BC6939DB7FE86DDF484"><enum>(s)</enum><header>Transparency of
credit rating methodologies and information reviewed</header>
<paragraph id="H77DD2BA7213B4832A57F08DB18A696DD"><enum>(1)</enum><header>Form for
disclosures</header><text>The Commission shall require, by rule, each
nationally recognized statistical rating organization to prescribe a form to
accompany the publication of each credit rating that discloses—</text>
<subparagraph id="H85323F43996C4610B22676425EA4139C"><enum>(A)</enum><text>information
relating to—</text>
<clause id="H5E26D6C1355848B7996C4AC583C930B5"><enum>(i)</enum><text>the assumptions
underlying the credit rating procedures and methodologies;</text>
</clause><clause id="HEFA1583A0C5C4E5286F1B879F20123AA"><enum>(ii)</enum><text>the data that was
relied on to determine the credit rating; and</text>
</clause><clause id="HD356C476CE6E4CD180E2A87CA1616C55"><enum>(iii)</enum><text>if applicable,
how the nationally recognized statistical rating organization used servicer or
remittance reports, and with what frequency, to conduct surveillance of the
credit rating; and</text>
</clause></subparagraph><subparagraph id="H4704F78A9E1B40818731E4DDE45EDC7C"><enum>(B)</enum><text>information that
can be used by investors and other users of credit ratings to better understand
credit ratings in each class of credit rating issued by the nationally
recognized statistical rating organization.</text>
</subparagraph></paragraph><paragraph id="H085B844CD5B244A49E09F82E0AC98243"><enum>(2)</enum><header>Format</header><text>The
form developed under paragraph (1) shall—</text>
<subparagraph id="HD387F3210C944F7594F0235BC844E7C2"><enum>(A)</enum><text>be easy to use and
helpful for users of credit ratings to understand the information contained in
the report;</text>
</subparagraph><subparagraph id="HD18350BD0881421F9DBF24C761CC2D05"><enum>(B)</enum><text>require the
nationally recognized statistical rating organization to provide the content
described in paragraph (3)(B) in a manner that is directly comparable across
types of securities; and</text>
</subparagraph><subparagraph id="HA16ADD9B9C864AD9915C77D3C5AC0B19"><enum>(C)</enum><text>be made readily
available to users of credit ratings, in electronic or paper form, as the
Commission may, by rule, determine.</text>
</subparagraph></paragraph><paragraph id="H61F367EF8BF54AECB3781AFD7E71C573"><enum>(3)</enum><header>Content of
form</header>
<subparagraph id="H89D67B970EC24A0D8A9320B4AEEFEDF8"><enum>(A)</enum><header>Qualitative
content</header><text>Each nationally recognized statistical rating
organization shall disclose on the form developed under paragraph (1)—</text>
<clause id="HA79EAE06DDFD4FA083F6CD7233EDA850"><enum>(i)</enum><text>the credit ratings
produced by the nationally recognized statistical rating organization;</text>
</clause><clause id="HEF94F881E83F44768D5D46919EF435CA"><enum>(ii)</enum><text>the main
assumptions and principles used in constructing procedures and methodologies,
including qualitative methodologies and quantitative inputs and assumptions
about the correlation of defaults across underlying assets used in rating
structured products;</text>
</clause><clause id="HC0CFA265371A4F918CD018D8BD960DDF"><enum>(iii)</enum><text>the potential
limitations of the credit ratings, and the types of risks excluded from the
credit ratings that the nationally recognized statistical rating organization
does not comment on, including liquidity, market, and other risks;</text>
</clause><clause id="HEE08E47BCB02406EAB1824BAFD8617C5"><enum>(iv)</enum><text>information on
the uncertainty of the credit rating, including—</text>
<subclause id="HF965EF89F2E24898B1B4B5679371C0B7"><enum>(I)</enum><text>information on the
reliability, accuracy, and quality of the data relied on in determining the
credit rating; and</text>
</subclause><subclause id="H60EF9436C1094334A6D7A156CF713BED"><enum>(II)</enum><text>a statement
relating to the extent to which data essential to the determination of the
credit rating were reliable or limited, including—</text>
<item id="H17714F5C8E244807A5C95BD6D5B94B95"><enum>(aa)</enum><text>any
limits on the scope of historical data; and</text>
</item><item id="H51723385D16244C7AC99508E6C44AB64"><enum>(bb)</enum><text>any
limits in accessibility to certain documents or other types of information that
would have better informed the credit rating;</text>
</item></subclause></clause><clause id="H12F897D50F054423B79C82BF956C24AE"><enum>(v)</enum><text>whether and to
what extent third party due diligence services have been used by the nationally
recognized statistical rating organization, a description of the information
that such third party reviewed in conducting due diligence services, and a
description of the findings or conclusions of such third party;</text>
</clause><clause id="HD3CA8116A82F4EA4BFA63E4C2D335D9B"><enum>(vi)</enum><text>a
description of the data about any obligor, issuer, security, or money market
instrument that were relied upon for the purpose of determining the credit
rating;</text>
</clause><clause id="HFCD81E4D53E24D52BF00858CE008E025"><enum>(vii)</enum><text>a statement
containing an overall assessment of the quality of information available and
considered in producing a rating for an obligor, security, or money market
instrument, in relation to the quality of information available to the
nationally recognized statistical rating organization in rating similar
issuances;</text>
</clause><clause id="HA5420443AD944709B53334B2DE5174EF"><enum>(viii)</enum><text>information
relating to conflicts of interest of the nationally recognized statistical
rating organization; and</text>
</clause><clause id="H6FDC90857F194107B7377EBF07153A99"><enum>(ix)</enum><text>such additional
information as the Commission may require.</text>
</clause></subparagraph><subparagraph id="HCE40117DED474D71A65D6AFEEDBE8468"><enum>(B)</enum><header>Quantitative
content</header><text>Each nationally recognized statistical rating
organization shall disclose on the form developed under this subsection—</text>
<clause id="H8E5BAB12BACF4A23BF9425064B462C41"><enum>(i)</enum><text>an
explanation or measure of the potential volatility of the credit rating,
including—</text>
<subclause id="HFCBF218BF5F3478BBEFE2BB487CBD354"><enum>(I)</enum><text>any factors that
might lead to a change in the credit ratings; and</text>
</subclause><subclause id="H41BC94D369F949679321400685AC6652"><enum>(II)</enum><text>the magnitude of
the change that a user can expect under different market conditions;</text>
</subclause></clause><clause id="HB41D8216984B431EB87D02822DF24AE0"><enum>(ii)</enum><text>information on
the content of the rating, including—</text>
<subclause id="H12E96C6D80194FF08EDC9DA512BCD51D"><enum>(I)</enum><text>the historical
performance of the rating; and</text>
</subclause><subclause id="HB64A0D922DB3488F8A4BD918D9632B76"><enum>(II)</enum><text>the expected
probability of default and the expected loss in the event of default;</text>
</subclause></clause><clause id="HB7FA9A9795854EAABDBDABB6CEA75994"><enum>(iii)</enum><text>information on
the sensitivity of the rating to assumptions made by the nationally recognized
statistical rating organization, including—</text>
<subclause id="H28C6BF5A60D7405C9C656E2B2B78002E"><enum>(I)</enum><text>5 assumptions made
in the ratings process that, without accounting for any other factor, would
have the greatest impact on a rating if the assumptions were proven false or
inaccurate; and</text>
</subclause><subclause id="HDF0D72195130447F8FBC3757A3952A3F"><enum>(II)</enum><text>an analysis,
using specific examples, of how each of the 5 assumptions identified under
subclause (I) impacts a rating;</text>
</subclause></clause><clause id="HC0A83A37E76F46219FB92A9603606FB5"><enum>(iv)</enum><text>such additional
information as may be required by the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="H827C44C31F304934AEAAF65F0D4FDE05"><enum>(4)</enum><header>Due diligence
services for asset-backed securities</header>
<subparagraph id="HE04F9E96C81B4CEE9E3EFA96C48826D1"><enum>(A)</enum><header>Findings</header><text>The
issuer or underwriter of any asset-backed security shall make publicly
available the findings and conclusions of any third-party due diligence report
obtained by the issuer or underwriter.</text>
</subparagraph><subparagraph id="H95E0CDA622C64D709774CCAC99B170A8"><enum>(B)</enum><header>Certification
required</header><text>In any case in which third-party due diligence services
are employed by a nationally recognized statistical rating organization, an
issuer, or an underwriter, the person providing the due diligence services
shall provide to any nationally recognized statistical rating organization that
produces a rating to which such services relate, written certification, as
provided in subparagraph (C).</text>
</subparagraph><subparagraph id="H47702EA0294A4E17BC8D907C4AB541CF"><enum>(C)</enum><header>Format and
content</header><text>The Commission shall establish the appropriate format and
content for the written certifications required under subparagraph (B), to
ensure that providers of due diligence services have conducted a thorough
review of data, documentation, and other relevant information necessary for a
nationally recognized statistical rating organization to provide an accurate
rating.</text>
</subparagraph><subparagraph id="H959DDF9BE49841F5812A29FC12EE9C7F"><enum>(D)</enum><header>Disclosure of
certification</header><text>The Commission shall adopt rules requiring a
nationally recognized statistical rating organization, at the time at which the
nationally recognized statistical rating organization produces a rating, to
disclose the certification described in subparagraph (B) to the public in a
manner that allows the public to determine the adequacy and level of due
diligence services provided by a third party.</text>
</subparagraph></paragraph></subsection><subsection id="H44B60F5534B049B7AF0E1635E367F4A1"><enum>(t)</enum><header>Corporate
governance, organization, and management of conflicts of interest</header>
<paragraph id="H11555B348FCD4BEBA7716006A8BB173B"><enum>(1)</enum><header>Board of
directors</header><text>Each nationally recognized statistical rating
organization shall have a board of directors.</text>
</paragraph><paragraph id="HD54C72187C764724AD92ED8713955888"><enum>(2)</enum><header>Independent
directors</header>
<subparagraph id="HF87B3BD4B11D43E8B7150CB68C1E7598"><enum>(A)</enum><header>In
general</header><text>At least ½ of the board of directors, but not fewer than
2 of the members thereof, shall be independent of the nationally recognized
statistical rating agency. A portion of the independent directors shall include
users of ratings from a nationally recognized statistical rating
organization.</text>
</subparagraph><subparagraph id="HE6406267AF2643808318782A87EB28E4"><enum>(B)</enum><header>Independence
determination</header><text>In order to be considered independent for purposes
of this subsection, a member of the board of directors of a nationally
recognized statistical rating organization—</text>
<clause id="HE4C0E4781B1E42C9A43F1C06AE8CFDD0"><enum>(i)</enum><text>may not, other
than in his or her capacity as a member of the board of directors or any
committee thereof—</text>
<subclause id="HC4C5F1DB943340908951D23144003FF4"><enum>(I)</enum><text>accept any
consulting, advisory, or other compensatory fee from the nationally recognized
statistical rating organization; or</text>
</subclause><subclause id="H60726EB2629A471EA6406C0330550434"><enum>(II)</enum><text>be a person
associated with the nationally recognized statistical rating organization or
with any affiliated company thereof; and</text>
</subclause></clause><clause id="H54CF5DADB8AD4A769898444DA187DF2C"><enum>(ii)</enum><text>shall be
disqualified from any deliberation involving a specific rating in which the
independent board member has a financial interest in the outcome of the
rating.</text>
</clause></subparagraph><subparagraph id="HC0587C566BB44D05B7E937D04209E3B6"><enum>(C)</enum><header>Compensation and
term</header><text>The compensation of the independent members of the board of
directors of a nationally recognized statistical rating organization shall not
be linked to the business performance of the nationally recognized statistical
rating organization, and shall be arranged so as to ensure the independence of
their judgment. The term of office of the independent directors shall be for a
pre-agreed fixed period, not to exceed 5 years, and shall not be
renewable.</text>
</subparagraph></paragraph><paragraph id="HDA66951F896A40EB8C1130A9AEDCCA7D"><enum>(3)</enum><header>Duties of board
of directors</header><text>In addition to the overall responsibilities of the
board of directors, the board shall oversee—</text>
<subparagraph id="HFB333CEB810D4F219C271A5B6AA627C4"><enum>(A)</enum><text>the establishment,
maintenance, and enforcement of policies and procedures for determining credit
ratings;</text>
</subparagraph><subparagraph id="HECCF9DBB0AF24671824564B286E49F1B"><enum>(B)</enum><text>the establishment,
maintenance, and enforcement of policies and procedures to address, manage, and
disclose any conflicts of interest;</text>
</subparagraph><subparagraph id="H5FEA9A3CCEB4485D919F2FADA09048A6"><enum>(C)</enum><text>the effectiveness
of the internal control system with respect to policies and procedures for
determining credit ratings; and</text>
</subparagraph><subparagraph id="H969DB14FAB764A719224DC5503377368"><enum>(D)</enum><text>the compensation
and promotion policies and practices of the nationally recognized statistical
rating organization.</text>
</subparagraph></paragraph><paragraph id="H787AC4417B7946499ADC8FACC29794B2"><enum>(4)</enum><header>Treatment of
nrsro subsidiaries</header><text>If a nationally recognized statistical rating
organization is a subsidiary of a parent entity, the board of the directors of
the parent entity may satisfy the requirements of this subsection by assigning
to a committee of such board of directors the duties under paragraph (3),
if—</text>
<subparagraph id="H9ADC7DCA0C59402AADDE918673E5A931"><enum>(A)</enum><text>at least ½ of the
members of the committee (including the chairperson of the committee) are
independent, as defined in this section; and</text>
</subparagraph><subparagraph id="H9CA96D9BE9B74F38B3DE4C3239B8D3E8"><enum>(B)</enum><text>at least 1 member
of the committee is a user of ratings from a nationally recognized statistical
rating organization.</text>
</subparagraph></paragraph><paragraph id="HC4FDCF9B626D4D2197507C6545DCA468"><enum>(5)</enum><header>Exception
authority</header><text>If the Commission finds that compliance with the
provisions of this subsection present an unreasonable burden on a small
nationally recognized statistical rating organization, the Commission may
permit the nationally recognized statistical rating organization to delegate
such responsibilities to a committee that includes at least one individual who
is a user of ratings of a nationally recognized statistical rating
organization.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H799D45C7E3BB4E2BB055328E9D6C9F59"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section 3(a)(62) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(62)) is amended by
striking subparagraph (A) and redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.</text>
</subsection></section><section id="HF4ED50E6EA1D4C98BEC6D755E5FB16BD"><enum>933.</enum><header>State of mind
in private actions</header>
<subsection id="H8F442BCA73D147D587F8B93948BBE58E"><enum>(a)</enum><header>Accountability</header><text>Section
15E(m) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–7(m)) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3497B1BA33FF48E388E88D76844508D8" style="OLC">
<subsection id="HFD70DA3144244A3DB0B6936D58EC3649"><enum>(m)</enum><header>Accountability</header>
<paragraph id="H0D59AC50A9CA4EF3BF108D38ACE2122E"><enum>(1)</enum><header>In
general</header><text>The enforcement and penalty provisions of this title
shall apply to statements made by a credit rating agency in the same manner and
to the same extent as such provisions apply to statements made by a registered
public accounting firm or a securities analyst under the securities laws, and
such statements shall not be deemed forward-looking statements for the purposes
of section 21E.</text>
</paragraph><paragraph id="H819E2D02A4CA4DC6BC932D07DED34741"><enum>(2)</enum><header>Rulemaking</header><text>The
Commission shall issue such rules as may be necessary to carry out this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCC87B6D197244473BC24F409A327FC11"><enum>(b)</enum><header>State of
mind</header><text display-inline="yes-display-inline">Section 21D(b)(2) of the
Securities Exchange Act of 1934 (15 U.S.C. 78u–4(b)(2)) is amended—</text>
<paragraph id="HBA3FAC5C68AD496CBFC34C72FF304CC6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>In any</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4B26D2B1B6B64A19948E15EBF0B45A4A" style="OLC">
<subparagraph id="H81DEB8F7764847569E62491C458DDCE3"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), in
any</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4B8DD1B8112B4B08B5B2EBA38D497627"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC2300B91065E46A5A92F2A8E1441C43C" style="OLC">
<subparagraph id="H2D13986BD5EF4B3384083235506462D9"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">In the case of an action for money damages
brought against a credit rating agency or a controlling person under this
title, it shall be sufficient, for purposes of pleading any required state of
mind in relation to such action, that the complaint state with particularity
facts giving rise to a strong inference that the credit rating agency knowingly
or recklessly failed—</text>
<clause id="H644EFA2A78A44D10A6058758F3016C2E"><enum>(i)</enum><text display-inline="yes-display-inline">to conduct a reasonable investigation of
the rated security with respect to the factual elements relied upon by its own
methodology for evaluating credit risk; or</text>
</clause><clause id="H971BDEE0092B4CF590196EF66C37F985"><enum>(ii)</enum><text display-inline="yes-display-inline">to obtain reasonable verification of such
factual elements (which verification may be based on a sampling technique that
does not amount to an audit) from other sources that the credit rating agency
considered to be competent and that were independent of the issuer and
underwriter.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H7FE067379BED4120A6E38A0EFDE67806"><enum>934.</enum><header>Referring tips
to law enforcement or regulatory authorities</header><text display-inline="no-display-inline">Section 15E of the Securities Exchange Act
of 1934 (15 U.S.C. 78o–7), as amended by this subtitle, is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC3552E66A7B0446FB4A32AB1FF7FCFA5" style="OLC">
<subsection id="H0E40C627902A4C87962C65CDFA26B18B"><enum>(u)</enum><header>Duty To report
tips alleging material violations of law</header>
<paragraph id="H5D077FBEE9404BCCAE6077B973DE74B8"><enum>(1)</enum><header>Duty to
report</header><text>Each nationally recognized statistical rating organization
shall refer to the appropriate law enforcement or regulatory authorities any
information that the nationally recognized statistical rating organization
receives from a third party and finds credible that alleges that an issuer of
securities rated by the nationally recognized statistical rating organization
has committed or is committing a material violation of law that has not been
adjudicated by a Federal or State court.</text>
</paragraph><paragraph id="HB983598D2F544E76BC8AE5B05545152D"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in paragraph (1) may be construed to require
a nationally recognized statistical rating organization to verify the accuracy
of the information described in paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEB30F736C50246D981AAB7B37A52A1AB"><enum>935.</enum><header>Consideration
of information from sources other than the issuer in rating
decisions</header><text display-inline="no-display-inline">Section 15E of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–7), as amended by this subtitle,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H19B18DFAC8C049F588BE3F81CCBF661B" style="OLC">
<subsection id="H393090EEE6E64CECA21C9183C9C5AE88"><enum>(v)</enum><header>Information from
sources other than the issuer</header><text>In producing a credit rating, a
nationally recognized statistical rating organization shall consider
information about an issuer that the nationally recognized statistical rating
organization has, or receives from a source other than the issuer or
underwriter, that the nationally recognized statistical rating organization
finds credible and potentially significant to a rating
decision.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="HE349635CC553498E975358A1D8787FC6"><enum>936.</enum><header>Qualification
standards for credit rating analysts</header><text display-inline="no-display-inline">Not later than 1 year after the date of
enactment of this Act, the Commission shall issue rules that are reasonably
designed to ensure that any person employed by a nationally recognized
statistical rating organization to perform credit ratings—</text>
<paragraph id="H8DD9F194B63B444ABEF50AF041E31137"><enum>(1)</enum><text display-inline="yes-display-inline">meets standards of training, experience,
and competence necessary to produce accurate ratings for the categories of
issuers whose securities the person rates; and</text>
</paragraph><paragraph id="HA5B880E4D91449F4BAE40051F6FBE1FF"><enum>(2)</enum><text display-inline="yes-display-inline">is tested for knowledge of the credit
rating process.</text>
</paragraph></section><section id="HD2E6AD2D2EEA464E83549AEE2CA5DD81"><enum>937.</enum><header>Timing of
regulations</header><text display-inline="no-display-inline">Unless otherwise
specifically provided in this subtitle, the Commission shall issue final
regulations, as required by this subtitle and the amendments made by this
subtitle, not later than 1 year after the date of enactment of this Act.</text>
</section><section id="HFE42FC13CBB34BAC8DDE896C9811C3AD"><enum>938.</enum><header>Universal
ratings symbols</header>
<subsection id="H76BEC4FB5E4D42C78F56727531CE8C23"><enum>(a)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">The Commission shall require, by rule, each
nationally recognized statistical rating organization to establish, maintain,
and enforce written policies and procedures that—</text>
<paragraph id="H9DBBEE3B14E04AFC804660BF56AF46BB"><enum>(1)</enum><text display-inline="yes-display-inline">assess the probability that an issuer of a
security or money market instrument will default, fail to make timely payments,
or otherwise not make payments to investors in accordance with the terms of the
security or money market instrument;</text>
</paragraph><paragraph id="H5F31C5E415BD4D16945D166DC64B08C8"><enum>(2)</enum><text>clearly define and
disclose the meaning of any symbol used by the nationally recognized
statistical rating organization to denote a credit rating; and</text>
</paragraph><paragraph id="H10E9CAFC0F9B428383C1C9CA1B48706A"><enum>(3)</enum><text>apply any symbol
described in paragraph (2) in a manner that is consistent for all types of
securities and money market instruments for which the symbol is used.</text>
</paragraph></subsection><subsection id="HB0C4527924884A3FB9E922094A2AE8B4"><enum>(b)</enum><header>Rule of
construction</header><text>Nothing in this section shall prohibit a nationally
recognized statistical rating organization from using distinct sets of symbols
to denote credit ratings for different types of securities or money market
instruments.</text>
</subsection></section><section commented="no" id="H7B34BC96174446AA845C7DC1F543C0DB"><enum>939.</enum><header>Removal of
statutory references to credit ratings</header>
<subsection commented="no" id="HAF72376E64E043B6A7B4DBE50C87EE5A"><enum>(a)</enum><header>Federal Deposit
Insurance Act</header><text display-inline="yes-display-inline">The Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—</text>
<paragraph commented="no" id="H06C14C75CC654884A22F70B46EC865A6"><enum>(1)</enum><text>in section
7(b)(1)(E)(i), by striking <quote>credit rating entities, and other private
economic</quote> and insert <quote>private economic, credit,</quote>;</text>
</paragraph><paragraph commented="no" id="H38D6F9ACF94C46149EC9EA9E687D6200"><enum>(2)</enum><text>in section
28(d)—</text>
<subparagraph commented="no" id="HB7431F81B67A4397A0ABD9800948B893"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">not
of investment grade</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="H061FCB5E37BA4A5CBD97B094EC4A0C44"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>not of investment grade</quote> and inserting <quote>that
does not meet standards of credit-worthiness as established by the
Corporation</quote>;</text>
</subparagraph><subparagraph commented="no" id="HC3CB6DAEEA7C42988AD783DB02877085"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>not of investment grade</quote>;</text>
</subparagraph><subparagraph commented="no" id="HD00010F7CBC24CEEAAFCCB7B09733BE8"><enum>(D)</enum><text>by striking
paragraph (3);</text>
</subparagraph><subparagraph commented="no" id="HAE60C007120C45269AC57CFE3AE6B9E6"><enum>(E)</enum><text>by redesignating
paragraph (4) as paragraph (3); and</text>
</subparagraph><subparagraph commented="no" id="H151E94B2904849C48577CBD684AAE7A5"><enum>(F)</enum><text>in paragraph (3),
as so redesignated—</text>
<clause commented="no" id="H47DF1AB761DA4B79A630EC4E8295F1A1"><enum>(i)</enum><text>by striking
subparagraph (A);</text>
</clause><clause commented="no" id="HF7168CAFC49D48FCBEF7A9DC6C0ED0ED"><enum>(ii)</enum><text>by redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively;
and</text>
</clause><clause commented="no" id="H93D1F2906D3C4B91988926D04F2A47F5"><enum>(iii)</enum><text>in subparagraph
(B), as so redesignated, by striking <quote>not of investment grade</quote> and
inserting <quote>that does not meet standards of credit-worthiness as
established by the Corporation</quote>; and</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HED2409CBDE224651BDC1263B9224D8D7"><enum>(3)</enum><text>in section
28(e)—</text>
<subparagraph commented="no" id="HBD895915D9364B84B0090DB0467FE9A4"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">not
of investment grade</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="H0303081997354ABA96EAC18AEE6B0D5E"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>not of
investment grade</quote> and inserting <quote>that does not meet standards of
credit-worthiness as established by the Corporation</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H2304F4FA36314B869D74C218EA8A7AAB"><enum>(C)</enum><text>in paragraphs (2)
and (3), by striking <quote>not of investment grade</quote> each place that it
appears and inserting <quote>that does not meet standards of credit-worthiness
established by the Corporation</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HAAD0E2B726F847D4B63BF2FF106AD580"><enum>(b)</enum><header>Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</header><text display-inline="yes-display-inline">Section 1319 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4519) is
amended by striking <quote>that is a nationally recognized statistical rating
organization, as such term is defined in section 3(a) of the Securities
Exchange Act of 1934,</quote>.</text>
</subsection><subsection commented="no" id="H1C5FBCDAAA134EE3A25C1E6FAC49BDAC"><enum>(c)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">Section
6(a)(5)(A)(iv)(I) Investment Company Act of 1940 (15 U.S.C.
80a–6(a)(5)(A)(iv)(I)) is amended by striking <quote>is rated investment grade
by not less than 1 nationally recognized statistical rating
organization</quote> and inserting <quote>meets such standards of
credit-worthiness as the Commission shall adopt</quote>.</text>
</subsection><subsection commented="no" id="HF4C699CE17B64563AA38FC42C35537EA"><enum>(d)</enum><header>Revised
Statutes</header><text display-inline="yes-display-inline">Section 5136A of
title LXII of the Revised Statutes of the United States (12 U.S.C. 24a) is
amended—</text>
<paragraph commented="no" id="HA8ECA4A9D2694EB090F2915E879D0020"><enum>(1)</enum><text>in subsection
(a)(2)(E), by striking <quote>any applicable rating</quote> and inserting
<quote>standards of credit-worthiness established by the Comptroller of the
Currency</quote>;</text>
</paragraph><paragraph commented="no" id="HEC1C5A06D17141F6B6E113D12BD97918"><enum>(2)</enum><text>in the heading for
subsection (a)(3) by striking <quote><header-in-text level="subsection" style="OLC">Rating or comparable requirement</header-in-text></quote> and
inserting <quote><header-in-text level="subsection" style="OLC">Requirement</header-in-text></quote>;</text>
</paragraph><paragraph commented="no" id="H517844269C9241C2AEB8C3E5070FFEBF"><enum>(3)</enum><text>subsection (a)(3),
by amending subparagraph (A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4DF4DF50D6794291977BB903FC6B1D5D" style="OLC">
<subparagraph commented="no" id="H4F5BA2A9A683442D8D0AFE83BF182EE8"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A national bank meets
the requirements of this paragraph if the bank is one of the 100 largest
insured banks and has not fewer than 1 issue of outstanding debt that meets
standards of credit-worthiness or other criteria as the Secretary of the
Treasury and the Board of Governors of the Federal Reserve System may jointly
establish.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H9E1604E16E9D4F11AD06B6C66B78726A"><enum>(4)</enum><text>in the heading for
subsection (f), by striking <quote><header-in-text level="subsection" style="OLC">maintain public rating or</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">meet standards of
credit-worthiness</header-in-text></quote>; and</text>
</paragraph><paragraph commented="no" id="H1A32EE6595264B01A06A22F4E31B67C6"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (f)(1), by striking
<quote>any applicable rating</quote> and inserting <quote>standards of
credit-worthiness established by the Comptroller of the
Currency</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HDF577DFA8D734A9FA2C772899097290F"><enum>(e)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">Section
3(a) Securities Exchange Act of 1934 (15 U.S.C. 78a(3)(a)) is amended—</text>
<paragraph commented="no" id="HF3C0F00F26314560B2BF13E2289348FA"><enum>(1)</enum><text>in paragraph (41),
by striking <quote>is rated in one of the two highest rating categories by at
least one nationally recognized statistical rating organization</quote> and
inserting <quote>meets standards of credit-worthiness as established by the
Commission</quote>; and</text>
</paragraph><paragraph commented="no" id="HE02D2AF01020433EA4027105325502B7"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (53)(A), by striking <quote>is
rated in 1 of the 4 highest rating categories by at least 1 nationally
recognized statistical rating organization</quote> and inserting <quote>meets
standards of credit-worthiness as established by the Commission</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HE85767FF353D4175A90643F744FEC01F"><enum>(f)</enum><header>World Bank
discussions</header><text display-inline="yes-display-inline">Section 3(a)(6)
of the amendment in the nature of a substitute to the text of H.R. 4645, as
ordered reported from the Committee on Banking, Finance and Urban Affairs on
September 22, 1988, as enacted into law by section 555 of Public Law 100–461,
(22 U.S.C. 286hh(a)(6)), is amended by striking <quote>credit rating</quote>
and inserting <quote>credit-worthiness</quote>.</text>
</subsection><subsection commented="no" id="H07976003FAAB42B0BFA2C2397BCFAB47"><enum>(g)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect 2
years after the date of enactment of this Act.</text>
</subsection><subsection commented="no" id="H9EC0E1777B86429E95C40FE1F4093CBB"><enum>(h)</enum><header>Study and
report</header>
<paragraph commented="no" id="H0B5A8506B88B42CCA8E42CCBF211F138"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Commission shall
undertake a study on the feasability and desirability of—</text>
<subparagraph commented="no" id="HCAFF2DFBFD304462A23FB275B96CC0C7"><enum>(A)</enum><text display-inline="yes-display-inline">standardizing credit ratings terminology,
so that all credit rating agencies issue credit ratings using identical
terms;</text>
</subparagraph><subparagraph commented="no" id="H9A4E7820F17D4BDD8B054829A68ECCA8"><enum>(B)</enum><text>standardizing the
market stress conditions under which ratings are evaluated;</text>
</subparagraph><subparagraph commented="no" id="H5CE327A5C88F44B080343295931F834F"><enum>(C)</enum><text display-inline="yes-display-inline">requiring a quantitative correspondence
between credit ratings and a range of default probabilities and loss
expectations under standardized conditions of economic stress; and</text>
</subparagraph><subparagraph commented="no" id="HEA16D9D076D34C3CB34815131C3B1B0D"><enum>(D)</enum><text display-inline="yes-display-inline">standardizing credit rating terminology
across asset classes, so that named ratings correspond to a standard range of
default probabilities and expected losses independent of asset class and
issuing entity.</text>
</subparagraph></paragraph><paragraph commented="no" id="HF336919874EE467A8F5EFC8B4ACE6FD6"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Commission shall
submit to Congress a report containing the findings of the study under
paragraph (1) and the recommendations, if any, of the Commission with respect
to the study.</text>
</paragraph></subsection></section><section commented="no" id="HC747F722D3064DE29B15E5A8EF0E5ED2"><enum>939A.</enum><header>Review of
reliance on ratings</header>
<subsection commented="no" id="H0E3BCBF208544EC19A15C6B7FD5FDD8A"><enum>(a)</enum><header>Agency
Review</header><text>Not later than 1 year after the date of the enactment of
this subtitle, each Federal agency shall, to the extent applicable,
review—</text>
<paragraph commented="no" id="H35CE26CCD21341F0ABBAB299DC8FC2A8"><enum>(1)</enum><text>any regulation
issued by such agency that requires the use of an assessment of the
credit-worthiness of a security or money market instrument; and</text>
</paragraph><paragraph commented="no" id="HB556A58CD3514D10A44D06F1F730DB0A"><enum>(2)</enum><text display-inline="yes-display-inline">any references to or requirements in such
regulations regarding credit ratings.</text>
</paragraph></subsection><subsection commented="no" id="H08250C046AE84BD48E9E8474EA4C8273"><enum>(b)</enum><header>Modifications
required</header><text>Each such agency shall modify any such regulations
identified by the review conducted under subsection (a) to remove any reference
to or requirement of reliance on credit ratings and to substitute in such
regulations such standard of credit-worthiness as each respective agency shall
determine as appropriate for such regulations. In making such determination,
such agencies shall seek to establish, to the extent feasible, uniform
standards of credit-worthiness for use by each such agency, taking into account
the entities regulated by each such agency and the purposes for which such
entities would rely on such standards of credit-worthiness.</text>
</subsection><subsection commented="no" id="H073F51DA56BA4CE0ACAF4369F6CDD095"><enum>(c)</enum><header>Report</header><text>Upon
conclusion of the review required under subsection (a), each Federal agency
shall transmit a report to Congress containing a description of any
modification of any regulation such agency made pursuant to subsection
(b).</text>
</subsection></section><section commented="no" id="HE9E2FF7372494F819AC10C536C33DE36"><enum>939B.</enum><header>Elimination of
exemption from fair disclosure rule</header><text display-inline="no-display-inline">Not later than 90 days after the date of
enactment of this subtitle, the Securities Exchange Commission shall revise
Regulation FD (17 C.F.R. 243.100) to remove from such regulation the exemption
for entities whose primary business is the issuance of credit ratings (17
C.F.R. 243.100(b)(2)(iii)).</text>
</section><section id="H5284B33497A24D5BA146F5B477241839"><enum>939C.</enum><header>Securities and
Exchange Commission study on strengthening credit rating agency
independence</header>
<subsection id="H7E5510C9A84E4A449FEE62E9A0AF3475"><enum>(a)</enum><header>Study</header><text>The
Commission shall conduct a study of—</text>
<paragraph id="H2B178DA6651F4FAEAE636C118A75EB8A"><enum>(1)</enum><text>the independence
of nationally recognized statistical rating organizations; and</text>
</paragraph><paragraph id="HAEC94937AE5D4DDAA69FE60923CCF8CD"><enum>(2)</enum><text>how the
independence of nationally recognized statistical rating organizations affects
the ratings issued by the nationally recognized statistical rating
organizations.</text>
</paragraph></subsection><subsection id="HA171510C6487476E95D50E1B23345B02"><enum>(b)</enum><header>Subjects for
evaluation</header><text>In conducting the study under subsection (a), the
Commission shall evaluate—</text>
<paragraph id="HE9FA89B334924A74BCC5137CFE8F0257"><enum>(1)</enum><text>the management of
conflicts of interest raised by a nationally recognized statistical rating
organization providing other services, including risk management advisory
services, ancillary assistance, or consulting services;</text>
</paragraph><paragraph id="HCD38A29BC5E141FB8C7F23A59DAFA846"><enum>(2)</enum><text>the potential
impact of rules prohibiting a nationally recognized statistical rating
organization that provides a rating to an issuer from providing other services
to the issuer; and</text>
</paragraph><paragraph id="H5F7821F7BC7840E28FBEBCB29A45EA6E"><enum>(3)</enum><text>any other issue
relating to nationally recognized statistical rating organizations, as the
Chairman of the Commission determines is appropriate.</text>
</paragraph></subsection><subsection id="HD2262FE7A44847738AB0E4579B4558C2"><enum>(c)</enum><header>Report</header><text>Not
later than 3 years after the date of enactment of this Act, the Chairman of the
Commission shall submit to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study conducted under subsection
(a), including recommendations, if any, for improving the integrity of ratings
issued by nationally recognized statistical rating organizations.</text>
</subsection></section><section id="HBDC7A1E59549456296B2834837E2360C"><enum>939D.</enum><header>Government
Accountability Office study on alternative business models</header>
<subsection id="H9FFC1A6103C9435FB1EA08986A550FDF"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study on alternative
means for compensating nationally recognized statistical rating organizations
in order to create incentives for nationally recognized statistical rating
organizations to provide more accurate credit ratings, including any statutory
changes that would be required to facilitate the use of an alternative means of
compensation.</text>
</subsection><subsection id="H60524B17B00843FF833618AC42686A24"><enum>(b)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study conducted under subsection
(a), including recommendations, if any, for providing incentives to credit
rating agencies to improve the credit rating process.</text>
</subsection></section><section id="H3A52276E571D44409A7577579B49C217"><enum>939E.</enum><header>Government
Accountability Office study on the creation of an independent professional
analyst organization</header>
<subsection id="H55F98C32767748389C2CED8A08AE0469"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study on the
feasibility and merits of creating an independent professional organization for
rating analysts employed by nationally recognized statistical rating
organizations that would be responsible for—</text>
<paragraph id="H5C2563B5CF104348B67BCEC554A5AAA8"><enum>(1)</enum><text>establishing
independent standards for governing the profession of rating analysts;</text>
</paragraph><paragraph id="H30E57371D1684D25998C5B3BE9D93F6D"><enum>(2)</enum><text>establishing a
code of ethical conduct; and</text>
</paragraph><paragraph id="H0DEDAFB534B74068861F62D4B007EE65"><enum>(3)</enum><text>overseeing the
profession of rating analysts.</text>
</paragraph></subsection><subsection id="H0C74CD117CF34746AF245795733732D8"><enum>(b)</enum><header>Report</header><text>Not
later than 1 year after the date of publication of the rules issued by the
Commission pursuant to section 936, the Comptroller General shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a report on the
results of the study conducted under subsection (a).</text>
</subsection></section><section commented="no" id="H4B78A54E9E584AAB805D63D6BCD7E38C"><enum>939F.</enum><header>Study and
rulemaking on assigned credit ratings</header>
<subsection commented="no" id="HEA27CD80C739426FA061C3F848200C31"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>structured finance product</term> means an
asset-backed security, as defined in section 3(a)(77) of the Securities
Exchange Act of 1934, as added by section 941, and any structured product based
on an asset-backed security, as determined by the Commission, by rule.</text>
</subsection><subsection commented="no" id="H59E5D4060C9D49B0872D819B4E036FA4"><enum>(b)</enum><header>Study</header><text>The
Commission shall carry out a study of—</text>
<paragraph commented="no" id="HC6E8C728B8BA47AF9600378D8268375B"><enum>(1)</enum><text>the credit rating
process for structured finance products and the conflicts of interest
associated with the issuer-pay and the subscriber-pay models;</text>
</paragraph><paragraph commented="no" id="H0E374437BD0E40C7A0308946DD2A2F43"><enum>(2)</enum><text>the feasibility of
establishing a system in which a public or private utility or a self-regulatory
organization assigns nationally recognized statistical rating organizations to
determine the credit ratings of structured finance products, including—</text>
<subparagraph commented="no" id="HB2EE8CF534164E66869A3ED4D6A96C98"><enum>(A)</enum><text>an assessment of
potential mechanisms for determining fees for the nationally recognized
statistical rating organizations;</text>
</subparagraph><subparagraph commented="no" id="H2B9BF11C5485498E9531332C04C287BF"><enum>(B)</enum><text>appropriate
methods for paying fees to the nationally recognized statistical rating
organizations;</text>
</subparagraph><subparagraph commented="no" id="H6EE94D580F1640F5AA50712C9463360D"><enum>(C)</enum><text>the extent to
which the creation of such a system would be viewed as the creation of moral
hazard by the Federal Government; and</text>
</subparagraph><subparagraph commented="no" id="HBA7EEAC833BD4AC7AFE5D3AB68CE5664"><enum>(D)</enum><text>any constitutional
or other issues concerning the establishment of such a system;</text>
</subparagraph></paragraph><paragraph commented="no" id="H08F3279B718F4763A04466837EB1798A"><enum>(3)</enum><text>the range of
metrics that could be used to determine the accuracy of credit ratings;
and</text>
</paragraph><paragraph commented="no" id="H3F62A59161084384BA9D91E1B338A9BD"><enum>(4)</enum><text>alternative means
for compensating nationally recognized statistical rating organizations that
would create incentives for accurate credit ratings.</text>
</paragraph></subsection><subsection commented="no" id="H42C34F9D1A0946ECB3F11D9ECAF1C110"><enum>(c)</enum><header>Report and
recommendation</header><text>Not later than 24 months after the date of
enactment of this Act, the Commission shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that contains—</text>
<paragraph commented="no" id="H494CEC027FA0449388AD5E4EE93756A6"><enum>(1)</enum><text>the findings of
the study required under subsection (b); and</text>
</paragraph><paragraph commented="no" id="H6A90F168B4084B05BDCC7BE11A8C44B1"><enum>(2)</enum><text>any
recommendations for regulatory or statutory changes that the Commission
determines should be made to implement the findings of the study required under
subsection (b).</text>
</paragraph></subsection><subsection commented="no" id="H5593A74409034BA79D171FB1E0CA22EA"><enum>(d)</enum><header>Rulemaking</header>
<paragraph commented="no" id="H9B81D0C75C4E42C3A055EEE94E3C0DD3"><enum>(1)</enum><header>Rulemaking</header><text>After
submission of the report under subsection (c), the Commission shall, by rule,
as the Commission determines is necessary or appropriate in the public interest
or for the protection of investors, establish a system for the assignment of
nationally recognized statistical rating organizations to determine the initial
credit ratings of structured finance products, in a manner that prevents the
issuer, sponsor, or underwriter of the structured finance product from
selecting the nationally recognized statistical rating organization that will
determine the initial credit ratings and monitor such credit ratings. In
issuing any rule under this paragraph, the Commission shall give thorough
consideration to the provisions of section 15E(w) of the Securities Exchange
Act of 1934, as that provision would have been added by section 939D of H.R.
4173 (111th Congress), as passed by the Senate on May 20, 2010, and shall
implement the system described in such section 939D unless the Commission
determines that an alternative system would better serve the public interest
and the protection of investors.</text>
</paragraph><paragraph commented="no" id="H46109007AB964ED4917589EE436152AC"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this subsection may be construed to limit
or suspend any other rulemaking authority of the Commission.</text>
</paragraph></subsection></section><section commented="no" id="H2B33FC5A0903442594C54D02E72EA86C"><enum>939G.</enum><header>Effect of Rule
436(g)</header><text display-inline="no-display-inline">Rule 436(g),
promulgated by the Securities and Exchange Commission under the Securities Act
of 1933, shall have no force or effect.</text>
</section><section id="HAD5953EA234A478F94EF2F3B5B4264AB"><enum>939H.</enum><header>Sense of
Congress</header><text display-inline="no-display-inline">It is the sense of
Congress that the Securities and Exchange Commission should exercise the
rulemaking authority of the Commission under section 15E(h)(2)(B) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–7(h)(2)(B)) to prevent improper
conflicts of interest arising from employees of nationally recognized
statistical rating organizations providing services to issuers of securities
that are unrelated to the issuance of credit ratings, including consulting,
advisory, and other services.</text>
</section></subtitle><subtitle id="H321E453136CF48E98EA3ED2810FB9CFB"><enum>D</enum><header>Improvements to
the Asset-Backed Securitization Process</header>
<section id="H7D210CB3B28643C8B4F33CF1A2EBEF81"><enum>941.</enum><header>Regulation of
credit risk retention</header>
<subsection id="HA23E99525235462AAB2E4CCE2F198A23"><enum>(a)</enum><header>Definition of
asset-backed security</header><text display-inline="yes-display-inline">Section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4CF819C01844491E80E8D5E4F3E00626" style="OLC">
<paragraph id="H197FBC7218554CED922C3C8CB2BB98D6"><enum>(77)</enum><header>Asset-backed
security</header><text>The term <term>asset-backed security</term>—</text>
<subparagraph id="HF747CE7C78C74341B8FF8DAEBAB2BF4F"><enum>(A)</enum><text>means a
fixed-income or other security collateralized by any type of self-liquidating
financial asset (including a loan, a lease, a mortgage, or a secured or
unsecured receivable) that allows the holder of the security to receive
payments that depend primarily on cash flow from the asset, including—</text>
<clause id="HB68DE79D9B2A461CB73D15C56E707B60"><enum>(i)</enum><text>a
collateralized mortgage obligation;</text>
</clause><clause id="H96D6FEAA36334EAAA88AEFB182E21DBA"><enum>(ii)</enum><text>a
collateralized debt obligation;</text>
</clause><clause id="HB2D699BD3A7A43FD84F79466420B42A9"><enum>(iii)</enum><text>a collateralized
bond obligation;</text>
</clause><clause id="HE6A8F583BD8445338AFEF2C5ACC8808B"><enum>(iv)</enum><text>a
collateralized debt obligation of asset-backed securities;</text>
</clause><clause id="HDD7AA8692B3D41948F51F8C4AB863948"><enum>(v)</enum><text>a
collateralized debt obligation of collateralized debt obligations; and</text>
</clause><clause id="HD61FE1FB3C71481CAC8C3D089A5E858D"><enum>(vi)</enum><text>a
security that the Commission, by rule, determines to be an asset-backed
security for purposes of this section; and</text>
</clause></subparagraph><subparagraph id="HA15D075C690F4FD095D671C2CE2AE775"><enum>(B)</enum><text>does not include a
security issued by a finance subsidiary held by the parent company or a company
controlled by the parent company, if none of the securities issued by the
finance subsidiary are held by an entity that is not controlled by the parent
company.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB27004B71BCC4E0B93FEA0A2D95D42AF"><enum>(b)</enum><header>Credit risk
retention</header><text display-inline="yes-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after
section 15F, as added by this Act, the following:</text>
<quoted-block display-inline="no-display-inline" id="H3A6275865BF6496EB3E4F180B3641903" style="OLC">
<section id="H5FB5D9DE5AD6472EB3C658DEA3ADDD95"><enum>15G.</enum><header>Credit risk
retention</header>
<subsection id="H83E34605F98E48E9A631757875643722"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="HB3F9A05D336E41F49CAFE80405E55744"><enum>(1)</enum><text>the term
<term>Federal banking agencies</term> means the Office of the Comptroller of
the Currency, the Board of Governors of the Federal Reserve System, and the
Federal Deposit Insurance Corporation;</text>
</paragraph><paragraph id="H9DD671E3693242E087E10A05E1284FB3"><enum>(2)</enum><text>the term
<term>insured depository institution</term> has the same meaning as in section
3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));</text>
</paragraph><paragraph id="H8D2FB962A6144DC8B47A0E2426330368"><enum>(3)</enum><text>the term
<term>securitizer</term> means—</text>
<subparagraph id="H1BC992DFC4B24F01ACA86777D9D11D12"><enum>(A)</enum><text>an issuer of an
asset-backed security; or</text>
</subparagraph><subparagraph id="HD87ADA69E6854A0F8F4D12DEEBB241E4"><enum>(B)</enum><text>a person who
organizes and initiates an asset-backed securities transaction by selling or
transferring assets, either directly or indirectly, including through an
affiliate, to the issuer; and</text>
</subparagraph></paragraph><paragraph id="H585A8878A04647E1A47E7CE75DA79A1B"><enum>(4)</enum><text>the term
<term>originator</term> means a person who—</text>
<subparagraph id="HE04FFD7DE471424191156924FCE89C32"><enum>(A)</enum><text>through the
extension of credit or otherwise, creates a financial asset that collateralizes
an asset-backed security; and</text>
</subparagraph><subparagraph id="H2B7B7961F5B24EE2B97FE80E103D7E5A"><enum>(B)</enum><text>sells an asset
directly or indirectly to a securitizer.</text>
</subparagraph></paragraph></subsection><subsection id="H74AAEC3CDAAF44789D79E8FDD00E4FDE"><enum>(b)</enum><header>Regulations
required</header>
<paragraph id="H3B254AEF70F845A990250BBAFC637487"><enum>(1)</enum><header>In
general</header><text>Not later than 270 days after the date of enactment of
this section, the Federal banking agencies and the Commission shall jointly
prescribe regulations to require any securitizer to retain an economic interest
in a portion of the credit risk for any asset that the securitizer, through the
issuance of an asset-backed security, transfers, sells, or conveys to a third
party.</text>
</paragraph><paragraph id="H8A64D14591E64401BF7180C1FF3935D5"><enum>(2)</enum><header>Residential
mortgages</header><text display-inline="yes-display-inline">Not later than 270
days after the date of the enactment of this section, the Federal banking
agencies, the Commission, the Secretary of Housing and Urban Development, and
the Federal Housing Finance Agency, shall jointly prescribe regulations to
require any securitizer to retain an economic interest in a portion of the
credit risk for any residential mortgage asset that the securitizer, through
the issuance of an asset-backed security, transfers, sells, or conveys to a
third party.</text>
</paragraph></subsection><subsection id="HF19891E6245E47C388BDCB3A1D88A294"><enum>(c)</enum><header>Standards for
regulations</header>
<paragraph id="HD8BD2F33D3FC470089312BBF91B7BCB6"><enum>(1)</enum><header>Standards</header><text>The
regulations prescribed under subsection (b) shall—</text>
<subparagraph id="HD5A4183CC9E94771AE45D8FDBC63D974"><enum>(A)</enum><text>prohibit a
securitizer from directly or indirectly hedging or otherwise transferring the
credit risk that the securitizer is required to retain with respect to an
asset;</text>
</subparagraph><subparagraph id="HE55C6659B5444B96A2EA86D69CB8BCBD"><enum>(B)</enum><text>require a
securitizer to retain—</text>
<clause id="H180364A5E16F4DB38F4970AAC5020962"><enum>(i)</enum><text>not less than 5
percent of the credit risk for any asset—</text>
<subclause id="HD8231FBF87B34EB98A6C76174200EB6E"><enum>(I)</enum><text>that is not a
qualified residential mortgage that is transferred, sold, or conveyed through
the issuance of an asset-backed security by the securitizer; or</text>
</subclause><subclause id="HF287C7F0A95049EB832F76819E87803F"><enum>(II)</enum><text>that is a
qualified residential mortgage that is transferred, sold, or conveyed through
the issuance of an asset-backed security by the securitizer, if 1 or more of
the assets that collateralize the asset-backed security are not qualified
residential mortgages; or</text>
</subclause></clause><clause id="H83CF38FCE0E541A5B4291FE476F39289"><enum>(ii)</enum><text>less than 5
percent of the credit risk for an asset that is not a qualified residential
mortgage that is transferred, sold, or conveyed through the issuance of an
asset-backed security by the securitizer, if the originator of the asset meets
the underwriting standards prescribed under paragraph (2)(B);</text>
</clause></subparagraph><subparagraph id="H624F71D656A44EDAADCCCD34C9779F07"><enum>(C)</enum><text>specify—</text>
<clause id="H8CFAC8CCE65A487DA75F4122FB02097D"><enum>(i)</enum><text>the permissible
forms of risk retention for purposes of this section;</text>
</clause><clause id="HDBA43C9420CB476AAAB014EF0550F020"><enum>(ii)</enum><text>the minimum
duration of the risk retention required under this section; and</text>
</clause><clause id="H6736DE902EEE4C2A8AB2448145BD61F7"><enum>(iii)</enum><text>that a
securitizer is not required to retain any part of the credit risk for an asset
that is transferred, sold or conveyed through the issuance of an asset-backed
security by the securitizer, if all of the assets that collateralize the
asset-backed security are qualified residential mortgages;</text>
</clause></subparagraph><subparagraph id="HCC1675D9153B436486D691DDE6C5CAA3"><enum>(D)</enum><text>apply, regardless
of whether the securitizer is an insured depository institution;</text>
</subparagraph><subparagraph id="HF8B75B76B2CD45CF81BD72583DF865AE"><enum>(E)</enum><text display-inline="yes-display-inline">with respect to a commercial mortgage,
specify the permissible types, forms, and amounts of risk retention that would
meet the requirements of subparagraph (B), which in the determination of the
Federal banking agencies and the Commission may include—</text>
<clause id="H3499E737CB124C0DA55D3AE80070BFD3"><enum>(i)</enum><text>retention of a
specified amount or percentage of the total credit risk of the asset;</text>
</clause><clause id="H73335E399A314AA1879B9A0A761B2A26"><enum>(ii)</enum><text>retention of the
first-loss position by a third-party purchaser that specifically negotiates for
the purchase of such first loss position, holds adequate financial resources to
back losses, provides due diligence on all individual assets in the pool before
the issuance of the asset-backed securities, and meets the same standards for
risk retention as the Federal banking agencies and the Commission require of
the securitizer;</text>
</clause><clause id="H1C0CC282096D4B80855DEDA7AAF08FD9"><enum>(iii)</enum><text>a determination
by the Federal banking agencies and the Commission that the underwriting
standards and controls for the asset are adequate; and</text>
</clause><clause id="H401F88F8F757489D95DDB5B4D73849AD"><enum>(iv)</enum><text>provision of
adequate representations and warranties and related enforcement mechanisms;
and</text>
</clause></subparagraph><subparagraph commented="no" id="HD116D0443EA04C009561DAD5AE1AB099"><enum>(F)</enum><text display-inline="yes-display-inline">establish appropriate standards for
retention of an economic interest with respect to collateralized debt
obligations, securities collateralized by collateralized debt obligations, and
similar instruments collateralized by other asset-backed securities; and</text>
</subparagraph><subparagraph id="HAA6233A663F24464863C36FE83082948"><enum>(G)</enum><text>provide
for—</text>
<clause id="H1BC277DF5801492A922EFBF323F8EBB6"><enum>(i)</enum><text>a
total or partial exemption of any securitization, as may be appropriate in the
public interest and for the protection of investors;</text>
</clause><clause id="H617A011108614188904A11DFDD2CF565"><enum>(ii)</enum><text>a
total or partial exemption for the securitization of an asset issued or
guaranteed by the United States, or an agency of the United States, as the
Federal banking agencies and the Commission jointly determine appropriate in
the public interest and for the protection of investors, except that, for
purposes of this clause, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation are not agencies of the United
States;</text>
</clause><clause id="H1604AC423A81484DBEAE6E9707F52252"><enum>(iii)</enum><text>a total or
partial exemption for any asset-backed security that is a security issued or
guaranteed by any State of the United States, or by any political subdivision
of a State or territory, or by any public instrumentality of a State or
territory that is exempt from the registration requirements of the Securities
Act of 1933 by reason of section 3(a)(2) of that Act (15 U.S.C. 77c(a)(2)), or
a security defined as a qualified scholarship funding bond in section 150(d)(2)
of the Internal Revenue Code of 1986, as may be appropriate in the public
interest and for the protection of investors; and</text>
</clause><clause id="H1547C316D1D945A38304D38EB614A445"><enum>(iv)</enum><text>the allocation of
risk retention obligations between a securitizer and an originator in the case
of a securitizer that purchases assets from an originator, as the Federal
banking agencies and the Commission jointly determine appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="HD8A08DCA8A4943BE8D7BACD263E55786"><enum>(2)</enum><header>Asset
classes</header>
<subparagraph id="H1101546219DD4397B6B6EB6211642D40"><enum>(A)</enum><header>Asset
classes</header><text>The regulations prescribed under subsection (b) shall
establish asset classes with separate rules for securitizers of different
classes of assets, including residential mortgages, commercial mortgages,
commercial loans, auto loans, and any other class of assets that the Federal
banking agencies and the Commission deem appropriate.</text>
</subparagraph><subparagraph id="HC5D4CC9335C94E66B0392C50BECD61DB"><enum>(B)</enum><header>Contents</header><text>For
each asset class established under subparagraph (A), the regulations prescribed
under subsection (b) shall include underwriting standards established by the
Federal banking agencies that specify the terms, conditions, and
characteristics of a loan within the asset class that indicate a low credit
risk with respect to the loan.</text>
</subparagraph></paragraph></subsection><subsection id="H27B64CB5A3C94C9B9148BD4EB863C5A9"><enum>(d)</enum><header>Originators</header><text>In
determining how to allocate risk retention obligations between a securitizer
and an originator under subsection (c)(1)(E)(iv), the Federal banking agencies
and the Commission shall—</text>
<paragraph id="H12C991099225407184E046303EB9F2AD"><enum>(1)</enum><text>reduce the
percentage of risk retention obligations required of the securitizer by the
percentage of risk retention obligations required of the originator; and</text>
</paragraph><paragraph id="H3553E36B03E64EEC8FFA54FC31F7C744"><enum>(2)</enum><text>consider—</text>
<subparagraph id="HF05C91F2E0E64A27AC76F54C3FDC3B43"><enum>(A)</enum><text>whether the assets
sold to the securitizer have terms, conditions, and characteristics that
reflect low credit risk;</text>
</subparagraph><subparagraph id="H5F9866FD3A614050BFE11687A3FA8B30"><enum>(B)</enum><text>whether the form
or volume of transactions in securitization markets creates incentives for
imprudent origination of the type of loan or asset to be sold to the
securitizer; and</text>
</subparagraph><subparagraph id="HEA85F618C3654A5BAB11460E6A876044"><enum>(C)</enum><text>the potential
impact of the risk retention obligations on the access of consumers and
businesses to credit on reasonable terms, which may not include the transfer of
credit risk to a third party.</text>
</subparagraph></paragraph></subsection><subsection id="H3400B05F6C6F471186817587074B7E72"><enum>(e)</enum><header>Exemptions,
exceptions, and adjustments</header>
<paragraph id="H30E11B2B7DA6467BA194C56347FA0DF9"><enum>(1)</enum><header>In
general</header><text>The Federal banking agencies and the Commission may
jointly adopt or issue exemptions, exceptions, or adjustments to the rules
issued under this section, including exemptions, exceptions, or adjustments for
classes of institutions or assets relating to the risk retention requirement
and the prohibition on hedging under subsection (c)(1).</text>
</paragraph><paragraph id="HA3CB84F0472B4C2ABF237B433F16CD08"><enum>(2)</enum><header>Applicable
standards</header><text>Any exemption, exception, or adjustment adopted or
issued by the Federal banking agencies and the Commission under this paragraph
shall—</text>
<subparagraph id="H208E69DE4BEF40BEAC8324ECE1EED5D8"><enum>(A)</enum><text>help ensure high
quality underwriting standards for the securitizers and originators of assets
that are securitized or available for securitization; and</text>
</subparagraph><subparagraph id="HEB1D113124CE473991278F6FC2CC5E8A"><enum>(B)</enum><text>encourage
appropriate risk management practices by the securitizers and originators of
assets, improve the access of consumers and businesses to credit on reasonable
terms, or otherwise be in the public interest and for the protection of
investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1B29ECABD0444419BE1C5DE8DEC8D540"><enum>(3)</enum><header>Certain
institutions and programs exempt</header>
<subparagraph commented="no" id="HDDA4F17AC842483EA70453CE5887004E"><enum>(A)</enum><header>Farm credit
system institutions</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
section, the requirements of this section shall not apply to any loan or other
financial asset made, insured, guaranteed, or purchased by any institution that
is subject to the supervision of the Farm Credit Administration, including the
Federal Agricultural Mortgage Corporation.</text>
</subparagraph><subparagraph commented="no" id="H16392FF0F3F3423EAF5357B41812EE26"><enum>(B)</enum><header>Other Federal
programs</header><text display-inline="yes-display-inline">This section shall
not apply to any residential, multifamily, or health care facility mortgage
loan asset, or securitization based directly or indirectly on such an asset,
which is insured or guaranteed by the United States or an agency of the United
States. For purposes of this subsection, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, and the Federal home
loan banks shall not be considered an agency of the United States.</text>
</subparagraph></paragraph><paragraph id="H380F30E8144D4FDDAD6CEF1526E6350D"><enum>(4)</enum><header>Exemption for
qualified residential mortgages</header>
<subparagraph id="H1903759035214AD7A1592470D8209251"><enum>(A)</enum><header>In
general</header><text>The Federal banking agencies, the Commission, the
Secretary of Housing and Urban Development, and the Director of the Federal
Housing Finance Agency shall jointly issue regulations to exempt qualified
residential mortgages from the risk retention requirements of this
subsection.</text>
</subparagraph><subparagraph id="H6F7821DFD07B42889F02A34738188CB1"><enum>(B)</enum><header>Qualified
residential mortgage</header><text>The Federal banking agencies, the
Commission, the Secretary of Housing and Urban Development, and the Director of
the Federal Housing Finance Agency shall jointly define the term
<term>qualified residential mortgage</term> for purposes of this subsection,
taking into consideration underwriting and product features that historical
loan performance data indicate result in a lower risk of default, such
as—</text>
<clause id="HC47F863A82EE44A18A1F44A565D95593"><enum>(i)</enum><text>documentation and
verification of the financial resources relied upon to qualify the
mortgagor;</text>
</clause><clause id="H09095E8606144516B40D6A62267AA3BB"><enum>(ii)</enum><text>standards with
respect to—</text>
<subclause id="HB1863BF7C0404A588D02F8D4367ED34D"><enum>(I)</enum><text>the residual
income of the mortgagor after all monthly obligations;</text>
</subclause><subclause id="H17F6A962E8E240DC9591BC193A98336A"><enum>(II)</enum><text>the ratio of the
housing payments of the mortgagor to the monthly income of the
mortgagor;</text>
</subclause><subclause id="H8808AED1F79B446D85D3DAE9B424075C"><enum>(III)</enum><text>the ratio of
total monthly installment payments of the mortgagor to the income of the
mortgagor;</text>
</subclause></clause><clause id="HA9610D39C56843B09689071CE6EF29ED"><enum>(iii)</enum><text>mitigating the
potential for payment shock on adjustable rate mortgages through product
features and underwriting standards;</text>
</clause><clause commented="no" id="H7D63437DD5724E3AAD86929E856B6EF1"><enum>(iv)</enum><text>mortgage
guarantee insurance or other types of insurance or credit enhancement obtained
at the time of origination, to the extent such insurance or credit enhancement
reduces the risk of default; and</text>
</clause><clause id="HAF11DA25D48A4854A3E32F4B80F55CA2"><enum>(v)</enum><text>prohibiting or
restricting the use of balloon payments, negative amortization, prepayment
penalties, interest-only payments, and other features that have been
demonstrated to exhibit a higher risk of borrower default.</text>
</clause></subparagraph><subparagraph commented="no" id="H2A753E65EFD04259AE5F98ABEE0738EB"><enum>(C)</enum><header>Limitation on
definition</header><text display-inline="yes-display-inline">The Federal
banking agencies, the Commission, the Secretary of Housing and Urban
Development, and the Director of the Federal Housing Finance Agency in defining
the term <term>qualified residential mortgage</term>, as required by
subparagraph (B), shall define that term to be no broader than the definition
<quote>qualified mortgage</quote> as the term is defined under section
129C(c)(2) of the Truth in Lending Act, as amended by the Consumer Financial
Protection Act of 2010, and regulations adopted thereunder.</text>
</subparagraph></paragraph><paragraph id="H05F0EA3EC6274367A4CE637EFC984AE5"><enum>(5)</enum><header>Condition for
qualified residential mortgage exemption</header><text>The regulations issued
under paragraph (4) shall provide that an asset-backed security that is
collateralized by tranches of other asset-backed securities shall not be exempt
from the risk retention requirements of this subsection.</text>
</paragraph><paragraph id="HFEE6ABD22ADE41DBBF626B98AC0B7A0B"><enum>(6)</enum><header>Certification</header><text>The
Commission shall require an issuer to certify, for each issuance of an
asset-backed security collateralized exclusively by qualified residential
mortgages, that the issuer has evaluated the effectiveness of the internal
supervisory controls of the issuer with respect to the process for ensuring
that all assets that collateralize the asset-backed security are qualified
residential mortgages.</text>
</paragraph></subsection><subsection id="H29CF420441904A3E8A41E55F5C29C1E3"><enum>(f)</enum><header>Enforcement</header><text>The
regulations issued under this section shall be enforced by—</text>
<paragraph id="H071A31FA8DDD4912851690F6EFF5032E"><enum>(1)</enum><text>the appropriate
Federal banking agency, with respect to any securitizer that is an insured
depository institution; and</text>
</paragraph><paragraph id="HA50D03C06DD34774BBFC6D4C65D50819"><enum>(2)</enum><text>the Commission,
with respect to any securitizer that is not an insured depository
institution.</text>
</paragraph></subsection><subsection id="HBBCB577F975E4C629DB0DA852FC2C066"><enum>(g)</enum><header>Authority of
Commission</header><text>The authority of the Commission under this section
shall be in addition to the authority of the Commission to otherwise enforce
the securities laws.</text>
</subsection><subsection id="HDC450947FAEA405E8733E083A5AD55FD"><enum>(h)</enum><header>Authority to
coordinate on rulemaking</header><text display-inline="yes-display-inline">The
Chairperson of the Financial Stability Oversight Council shall coordinate all
joint rulemaking required under this section.</text>
</subsection><subsection id="H47C24C3CC7944CE9B695767C9D280228"><enum>(i)</enum><header>Effective date
of regulations</header><text>The regulations issued under this section shall
become effective—</text>
<paragraph id="H48D2349D15454AF1915800B9CD2E19E7"><enum>(1)</enum><text>with respect to
securitizers and originators of asset-backed securities backed by residential
mortgages, 1 year after the date on which final rules under this section are
published in the Federal Register; and</text>
</paragraph><paragraph id="H237408A594264865A99CB4C39421B5B2"><enum>(2)</enum><text>with respect to
securitizers and originators of all other classes of asset-backed securities, 2
years after the date on which final rules under this section are published in
the Federal
Register.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4AEF9D370550428FA2CF47295570B6E8"><enum>(c)</enum><header>Study on risk
retention</header>
<paragraph id="HC446D81839DD408CB7BA5A51C227027E"><enum>(1)</enum><header>Study</header><text>The
Board of Governors of the Federal Reserve System, in coordination and
consultation with the Comptroller of the Currency, the Director of the Office
of Thrift Supervision, the Chairperson of the Federal Deposit Insurance
Corporation, and the Securities and Exchange Commission shall conduct a study
of the combined impact on each individual class of asset-backed security
established under section 15G(c)(2) of the Securities Exchange Act of 1934, as
added by subsection (b), of—</text>
<subparagraph id="H1B170D9C6866442C9A5C077BF6673D45"><enum>(A)</enum><text>the new credit
risk retention requirements contained in the amendment made by subsection (b),
including the effect credit risk retention requirements have on increasing the
market for Federally subsidized loans; and</text>
</subparagraph><subparagraph id="H0928DC0DD1FA47A3B6866E7B436B4A14"><enum>(B)</enum><text>the Financial
Accounting Statements 166 and 167 issued by the Financial Accounting Standards
Board.</text>
</subparagraph></paragraph><paragraph id="H627F87001DFC457FABC5719C5A4340F9"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
enactment of this Act, the Board of Governors of the Federal Reserve System
shall submit to Congress a report on the study conducted under paragraph (1).
Such report shall include statutory and regulatory recommendations for
eliminating any negative impacts on the continued viability of the asset-backed
securitization markets and on the availability of credit for new lending
identified by the study conducted under paragraph (1).</text>
</paragraph></subsection></section><section id="H77964DD31D5B406C9331B4C86C3074BA"><enum>942.</enum><header>Disclosures and
reporting for asset-backed securities</header>
<subsection id="HF8D2A84AA59742FA90B9A09DC0AFC37F"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">Section
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) is
amended—</text>
<paragraph id="H3B1C5712543F43DB904F7D1350785E40"><enum>(1)</enum><text>by striking
<quote>(d) Each</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H15E37E4F384F4525B687D5759E344329" style="OLC">
<subsection id="HBE875BB8DF9F4BFD813DE61C2416E223"><enum>(d)</enum><header>Supplementary
and periodic information</header>
<paragraph id="H35D704E0A9614FEEA5CBBC575DE0A211"><enum>(1)</enum><header>In
general</header><text>Each</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H26AE1525AF404A508EBA28A31BCD86DA"><enum>(2)</enum><text>in the third
sentence, by inserting after <quote>securities of each class</quote> the
following: <quote>, other than any class of asset-backed securities,</quote>;
and</text>
</paragraph><paragraph id="H2AD16AF14D8640809174F20190C27186"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1168FDAF715E465A94C081DB69886C5D" style="OLC">
<paragraph id="HC9EFF1B2917E41A1ADFB4E5D0A87C706"><enum>(2)</enum><header>Asset-backed
securities</header>
<subparagraph id="H51217B3D9882479F94FA89E8A7EE8E08"><enum>(A)</enum><header>Suspension of
duty to file</header><text>The Commission may, by rule or regulation, provide
for the suspension or termination of the duty to file under this subsection for
any class of asset-backed security, on such terms and conditions and for such
period or periods as the Commission deems necessary or appropriate in the
public interest or for the protection of investors.</text>
</subparagraph><subparagraph id="H72A0523EBE8A4502A3E33A295E2B1E20"><enum>(B)</enum><header>Classification
of issuers</header><text>The Commission may, for purposes of this subsection,
classify issuers and prescribe requirements appropriate for each class of
issuers of asset-backed
securities.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2D75F96554254A6A9DF42FCD1E2B6371"><enum>(b)</enum><header>Securities Act
of 1933</header><text>Section 7 of the Securities Act of 1933 (15 U.S.C. 77g)
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H34DE94A8C18D4DFD9D229B2430BAF4ED" style="OLC">
<subsection id="H6E68909BCEC144EFB9C9EF82EAF1793C"><enum>(c)</enum><header>Disclosure
requirements</header>
<paragraph id="HFF080405098848548A4F81E2E2EE19AE"><enum>(1)</enum><header>In
general</header><text>The Commission shall adopt regulations under this
subsection requiring each issuer of an asset-backed security to disclose, for
each tranche or class of security, information regarding the assets backing
that security.</text>
</paragraph><paragraph id="HF55B4F8987BE4539A49DEAF2E0749CD2"><enum>(2)</enum><header>Content of
regulations</header><text>In adopting regulations under this subsection, the
Commission shall—</text>
<subparagraph id="H04904FED3EAF43F19BBF6AD2EC9C5E5F"><enum>(A)</enum><text>set standards for
the format of the data provided by issuers of an asset-backed security, which
shall, to the extent feasible, facilitate comparison of such data across
securities in similar types of asset classes; and</text>
</subparagraph><subparagraph id="H063CB0F9B5174064B4E6A9B892F4235D"><enum>(B)</enum><text>require issuers of
asset-backed securities, at a minimum, to disclose asset-level or loan-level
data, if such data are necessary for investors to independently perform due
diligence, including—</text>
<clause id="H9584427E32D041B99F75F02D5C273719"><enum>(i)</enum><text>data having unique
identifiers relating to loan brokers or originators;</text>
</clause><clause id="H052D8FDE9FAD465589F3FD5B4D616BA1"><enum>(ii)</enum><text>the nature and
extent of the compensation of the broker or originator of the assets backing
the security; and</text>
</clause><clause id="H5682E8C4204644EFB15D5F3BB7032388"><enum>(iii)</enum><text>the amount of
risk retention by the originator and the securitizer of such
assets.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC5679754C53C4D05AFCF7983A83FDCBF"><enum>943.</enum><header>Representations
and warranties in asset-backed offerings</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Securities and Exchange Commission shall prescribe
regulations on the use of representations and warranties in the market for
asset-backed securities (as that term is defined in section 3(a)(77) of the
Securities Exchange Act of 1934, as added by this subtitle) that—</text>
<paragraph id="HF0C13446CCE84068B1C73449F0896DBA"><enum>(1)</enum><text>require each
national recognized statistical rating organization to include in any report
accompanying a credit rating a description of—</text>
<subparagraph id="HE817511038324EB79FF9625E9A9BE9CD"><enum>(A)</enum><text>the
representations, warranties, and enforcement mechanisms available to investors;
and</text>
</subparagraph><subparagraph id="H1D0A0C39DD9E4B36AC3E26C346C5645F"><enum>(B)</enum><text>how they differ
from the representations, warranties, and enforcement mechanisms in issuances
of similar securities; and</text>
</subparagraph></paragraph><paragraph id="H7A8FF468412D406C959F15ADC01186B8"><enum>(2)</enum><text>require any
securitizer (as that term is defined in section 15G(a) of the Securities
Exchange Act of 1934, as added by this subtitle) to disclose fulfilled and
unfulfilled repurchase requests across all trusts aggregated by the
securitizer, so that investors may identify asset originators with clear
underwriting deficiencies.</text>
</paragraph></section><section id="HB427C11F62C642A29A300266D087E8CB"><enum>944.</enum><header>Exempted
transactions under the Securities Act of 1933</header>
<subsection id="H2B4FE097BCC44444AE920220F393F51D"><enum>(a)</enum><header>Exemption
eliminated</header><text>Section 4 of the Securities Act of 1933 (15 U.S.C.
77d) is amended—</text>
<paragraph id="H9665745A517743E787AFF3B9DCC1E666"><enum>(1)</enum><text>by striking
paragraph (5); and</text>
</paragraph><paragraph id="H6191BB2E0BD14F85BF25D103DCA1D0F0"><enum>(2)</enum><text>by striking
<quote>(6) transactions</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H54F2094563B24A6195CA124164FBAB0C" style="OLC">
<paragraph id="HFCD93443C10147AB9B292D332B2FBC41"><enum>(5)</enum><text>transactions</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H39786AD00BE340E7AE9F8648FCED1992"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 3(a)(4)(B)(vii)(I) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(4)(B)(vii)(I)) is amended by striking
<quote>4(6)</quote> and inserting <quote>4(5)</quote>.</text>
</subsection></section><section id="HC5FCD0113FEC4CEFB815A07B0ADBA364"><enum>945.</enum><header>Due diligence
analysis and disclosure in asset-backed securities issues</header><text display-inline="no-display-inline">Section 7 of the Securities Act of 1933 (15
U.S.C. 77g), as amended by this subtitle, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H34AC124236314462A50A7E1CFE850CF7" style="OLC">
<subsection id="HA9DF8EA749D047F5918A4EBEB2F1D684"><enum>(d)</enum><header>Registration
statement for asset-backed securities</header><text>Not later than 180 days
after the date of enactment of this subsection, the Commission shall issue
rules relating to the registration statement required to be filed by any issuer
of an asset-backed security (as that term is defined in section 3(a)(77) of the
Securities Exchange Act of 1934) that require any issuer of an asset-backed
security—</text>
<paragraph id="HC2ABDA2794A64287885E4EAEF8BE7102"><enum>(1)</enum><text>to perform a
review of the assets underlying the asset-backed security; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DF00206B22E476980B3E5271864539F"><enum>(2)</enum><text>to disclose the
nature of the review under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HBCC74DA86A4D4BCF8DBFDE4DD9F74768"><enum>946.</enum><header>Study on the
macroeconomic effects of risk retention requirements</header>
<subsection id="H16356CDA1AA24138AE9321C13C54C5C7"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Chairman of the
Financial Services Oversight Council shall carry out a study on the
macroeconomic effects of the risk retention requirements under this subtitle,
and the amendments made by this subtitle, with emphasis placed on potential
beneficial effects with respect to stabilizing the real estate market. Such
study shall include—</text>
<paragraph id="HC46751FA1C5342F78E5B9F4125A40898"><enum>(1)</enum><text>an analysis of the
effects of risk retention on real estate asset price bubbles, including a
retrospective estimate of what fraction of real estate losses may have been
averted had such requirements been in force in recent years;</text>
</paragraph><paragraph id="H4ABCEEB998B5455D95F3D6E80FD3846C"><enum>(2)</enum><text>an analysis of the
feasibility of minimizing real estate price bubbles by proactively adjusting
the percentage of risk retention that must be borne by creditors and
securitizers of real estate debt, as a function of regional or national market
conditions;</text>
</paragraph><paragraph id="HDEF1F82B433A43F8834D66929226CAC1"><enum>(3)</enum><text>a
comparable analysis for proactively adjusting mortgage origination
requirements;</text>
</paragraph><paragraph id="HC24A153813B5472DB40C9F33931F6E94"><enum>(4)</enum><text>an assessment of
whether such proactive adjustments should be made by an independent regulator,
or in a formulaic and transparent manner;</text>
</paragraph><paragraph id="H297D5C7DD858456E945DF2EC03285B7D"><enum>(5)</enum><text>an assessment of
whether such adjustments should take place independently or in concert with
monetary policy; and</text>
</paragraph><paragraph id="H7518A5C2AB7A438C948791EF3171419E"><enum>(6)</enum><text>recommendations
for implementation and enabling legislation.</text>
</paragraph></subsection><subsection id="H836B68447CF54D52905D560794FE53FB"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the end of the 180-day
period beginning on the date of the enactment of this title, the Chairman of
the Financial Services Oversight Council shall issue a report to the Congress
containing any findings and determinations made in carrying out the study
required under subsection (a).</text>
</subsection></section></subtitle><subtitle id="HF164E0B74E674BB7BD1393A9C5066FB0"><enum>E</enum><header>Accountability and
Executive Compensation</header>
<section commented="no" display-inline="no-display-inline" id="H68B3E7AF5ECD411AB710C1A23522B9A2" section-type="subsequent-section"><enum>951.</enum><header display-inline="yes-display-inline">Shareholder vote on executive compensation
disclosures</header><text display-inline="no-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after
section 14 (15 U.S.C. 78n) the following:</text>
<quoted-block display-inline="no-display-inline" id="HE44185E4FEAD482F94031DCD51FF3FF3" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H4D8D6BF880A7467687CF24ED66829731"><enum>14A.</enum><header display-inline="yes-display-inline">shareholder approval of executive
compensation</header>
<subsection commented="no" display-inline="no-display-inline" id="H678E7098C6B24C82AC6C61562B1C48EF"><enum>(a)</enum><header>Separate
resolution required</header>
<paragraph id="H2F136FBFFC22406E95D2DEDE8CBBB228"><enum>(1)</enum><header>In
general</header><text>Not less frequently than once every 3 years, a proxy or
consent or authorization for an annual or other meeting of the shareholders for
which the proxy solicitation rules of the Commission require compensation
disclosure shall include a separate resolution subject to shareholder vote to
approve the compensation of executives, as disclosed pursuant to section
229.402 of title 17, Code of Federal Regulations, or any successor
thereto.</text>
</paragraph><paragraph id="H54AC9714F7964FACBE3D032FAE6416A6"><enum>(2)</enum><header>Frequency of
vote</header><text>Not less frequently than once every 6 years, a proxy or
consent or authorization for an annual or other meeting of the shareholders for
which the proxy solicitation rules of the Commission require compensation
disclosure shall include a separate resolution subject to shareholder vote to
determine whether votes on the resolutions required under paragraph (1) will
occur every 1, 2, or 3 years.</text>
</paragraph><paragraph id="H092B6ADACE5249F9B8D21BD988A0DE38"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The proxy or consent or
authorization for the first annual or other meeting of the shareholders
occurring after the end of the 6-month period beginning on the date of
enactment of this section shall include—</text>
<subparagraph id="HA8968538F0AC4A8D900848110A8FD61B"><enum>(A)</enum><text>the resolution
described in paragraph (1); and</text>
</subparagraph><subparagraph id="HBE8ED7449D23475B87926833E98CD53E"><enum>(B)</enum><text>a separate
resolution subject to shareholder vote to determine whether votes on the
resolutions required under paragraph (1) will occur every 1, 2, or 3
years.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HE3372F66DDA647A3BBC13A1152D5A8F1"><enum>(b)</enum><header>Shareholder
approval of golden parachute compensation</header>
<paragraph commented="no" id="HA0C635CE3B224390B4124D745DB250E6"><enum>(1)</enum><header>Disclosure</header><text display-inline="yes-display-inline">In any proxy or consent solicitation
material (the solicitation of which is subject to the rules of the Commission
pursuant to subsection (a)) for a meeting of the shareholders occurring after
the end of the 6-month period beginning on the date of enactment of this
section, at which shareholders are asked to approve an acquisition, merger,
consolidation, or proposed sale or other disposition of all or substantially
all the assets of an issuer, the person making such solicitation shall disclose
in the proxy or consent solicitation material, in a clear and simple form in
accordance with regulations to be promulgated by the Commission, any agreements
or understandings that such person has with any named executive officers of
such issuer (or of the acquiring issuer, if such issuer is not the acquiring
issuer) concerning any type of compensation (whether present, deferred, or
contingent) that is based on or otherwise relates to the acquisition, merger,
consolidation, sale, or other disposition of all or substantially all of the
assets of the issuer and the aggregate total of all such compensation that may
(and the conditions upon which it may) be paid or become payable to or on
behalf of such executive officer.</text>
</paragraph><paragraph commented="no" id="H48B3F5B5BF634DA08FDE1E88DFE9609D"><enum>(2)</enum><header>Shareholder
approval</header><text display-inline="yes-display-inline">Any proxy or consent
or authorization relating to the proxy or consent solicitation material
containing the disclosure required by paragraph (1) shall include a separate
resolution subject to shareholder vote to approve such agreements or
understandings and compensation as disclosed, unless such agreements or
understandings have been subject to a shareholder vote under subsection
(a).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4AF04627B1AA4941AC3C031F64B6F474"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">The shareholder
vote referred to in subsections (a) and (b) shall not be binding on the issuer
or the board of directors of an issuer, and may not be construed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCA1DC2D547EE457594343542DEF7865B"><enum>(1)</enum><text display-inline="yes-display-inline">as overruling a decision by such issuer or
board of directors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD26D5504D64440EBBB7521ABCDE71C03"><enum>(2)</enum><text display-inline="yes-display-inline">to create or imply any change to the
fiduciary duties of such issuer or board of directors;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFE3794ADE95D409B8BE0A32105704D3C"><enum>(3)</enum><text display-inline="yes-display-inline">to create or imply any additional fiduciary
duties for such issuer or board of directors; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD419DB52FAE640268F2F4609C20E2EA6"><enum>(4)</enum><text display-inline="yes-display-inline">to restrict or limit the ability of
shareholders to make proposals for inclusion in proxy materials related to
executive compensation.</text>
</paragraph></subsection><subsection id="H3D874A5E50234B499991968F9AEB7E4F"><enum>(d)</enum><header>Disclosure of
votes</header><text display-inline="yes-display-inline">Every institutional
investment manager subject to section 13(f) shall report at least annually how
it voted on any shareholder vote pursuant to subsections (a) and (b), unless
such vote is otherwise required to be reported publicly by rule or regulation
of the Commission.</text>
</subsection><subsection id="H0C5879941D2249B7B4D7ABD2B9B1B6D8"><enum>(e)</enum><header>Exemption</header><text display-inline="yes-display-inline">The Commission may, by rule or order,
exempt an issuer or class of issuers from the requirement under subsection (a)
or (b). In determining whether to make an exemption under this subsection, the
Commission shall take into account, among other considerations, whether the
requirements under subsections (a) and (b) disproportionately burdens small
issuers.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H78A7B937581D4132AC99C1A99A6F825E"><enum>952.</enum><header>Compensation
committee independence</header>
<subsection id="HA6F35168AC254683AF4F5B9753C3C25A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Securities
Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended by inserting after
section 10B, as added by section 753, the following:</text>
<quoted-block display-inline="no-display-inline" id="H48B57CA0E51F46609174F7DF4A2BB1B5" style="OLC">
<section id="HE483D210F3A54E6AAA5B4655D4085F5B"><enum>10C.</enum><header>Compensation
committees</header>
<subsection id="H1B7CE6D3941949CDBDA0B2E72ADB1772"><enum>(a)</enum><header>Independence of
compensation committees</header>
<paragraph id="H807EDAB1623445F7AFE5637E37CEEC5A"><enum>(1)</enum><header>Listing
standards</header><text>The Commission shall, by rule, direct the national
securities exchanges and national securities associations to prohibit the
listing of any equity security of an issuer, other than an issuer that is a
controlled company, limited partnership, company in bankruptcy proceedings,
open-ended management investment company that is registered under the
Investment Company Act of 1940, or a foreign private issuer that provides
annual disclosures to shareholders of the reasons that the foreign private
issuer does not have an independent compensation committee, that does not
comply with the requirements of this subsection.</text>
</paragraph><paragraph id="H65F1A0DB4C9B4AA584EFE10A25B7EE3F"><enum>(2)</enum><header>Independence of
compensation committees</header><text>The rules of the Commission under
paragraph (1) shall require that each member of the compensation committee of
the board of directors of an issuer be—</text>
<subparagraph id="H84411305BAD948B8A54DAF83159B0F5B"><enum>(A)</enum><text>a member of the
board of directors of the issuer; and</text>
</subparagraph><subparagraph id="HE7A80B98ABFD492A997EF0B9C37A66A2"><enum>(B)</enum><text>independent.</text>
</subparagraph></paragraph><paragraph id="H0A21D465BC6042B88BAC4FBA87B0216C"><enum>(3)</enum><header>Independence</header><text>The
rules of the Commission under paragraph (1) shall require that, in determining
the definition of the term <term>independence</term> for purposes of paragraph
(2), the national securities exchanges and the national securities associations
shall consider relevant factors, including—</text>
<subparagraph id="HA0856386C28640939C871BA945DA033B"><enum>(A)</enum><text>the source of
compensation of a member of the board of directors of an issuer, including any
consulting, advisory, or other compensatory fee paid by the issuer to such
member of the board of directors; and</text>
</subparagraph><subparagraph id="HB3607A9E029144A8BF600299106FDD98"><enum>(B)</enum><text>whether a member
of the board of directors of an issuer is affiliated with the issuer, a
subsidiary of the issuer, or an affiliate of a subsidiary of the issuer.</text>
</subparagraph></paragraph><paragraph id="H348A9FAA40CE418E83E3D9FB8B08DF49"><enum>(4)</enum><header>Exemption
authority</header><text>The rules of the Commission under paragraph (1) shall
permit a national securities exchange or a national securities association to
exempt a particular relationship from the requirements of paragraph (2), with
respect to the members of a compensation committee, as the national securities
exchange or national securities association determines is appropriate, taking
into consideration the size of an issuer and any other relevant factors.</text>
</paragraph></subsection><subsection id="H07DECC2CB6EC47D1B9E48E30F40451C0"><enum>(b)</enum><header>Independence of
compensation consultants and other compensation committee advisers</header>
<paragraph id="H5CA793B3ADC64340A0B82B55AAD22D9D"><enum>(1)</enum><header>In
general</header><text>The compensation committee of an issuer may only select a
compensation consultant, legal counsel, or other adviser to the compensation
committee after taking into consideration the factors identified by the
Commission under paragraph (2).</text>
</paragraph><paragraph id="H8F866EC211654743807EEAF5E445F237"><enum>(2)</enum><header>Rules</header><text display-inline="yes-display-inline">The Commission shall identify factors that
affect the independence of a compensation consultant, legal counsel, or other
adviser to a compensation committee of an issuer. Such factors shall be
competitively neutral among categories of consultants, legal counsel, or other
advisers and preserve the ability of compensation committees to retain the
services of members of any such category, and shall include—</text>
<subparagraph id="H39032E8777C94863BDFA5BD27C4466C7"><enum>(A)</enum><text>the provision of
other services to the issuer by the person that employs the compensation
consultant, legal counsel, or other adviser;</text>
</subparagraph><subparagraph id="HE94CF1036A98431584DA257CBFBC141A"><enum>(B)</enum><text>the amount of fees
received from the issuer by the person that employs the compensation
consultant, legal counsel, or other adviser, as a percentage of the total
revenue of the person that employs the compensation consultant, legal counsel,
or other adviser;</text>
</subparagraph><subparagraph id="H1EFC5BD448FF4607BB8D6080D4421EDE"><enum>(C)</enum><text>the policies and
procedures of the person that employs the compensation consultant, legal
counsel, or other adviser that are designed to prevent conflicts of
interest;</text>
</subparagraph><subparagraph id="H262D61B5F737488EAA255FA80EDEF0A0"><enum>(D)</enum><text>any business or
personal relationship of the compensation consultant, legal counsel, or other
adviser with a member of the compensation committee; and</text>
</subparagraph><subparagraph id="H537CECF52A7542FB9732B83C4E14C34C"><enum>(E)</enum><text>any stock of the
issuer owned by the compensation consultant, legal counsel, or other
adviser.</text>
</subparagraph></paragraph></subsection><subsection id="H549F55B406B448BCBC420E4189639868"><enum>(c)</enum><header>Compensation
committee authority relating to compensation consultants</header>
<paragraph id="H3993290DD27E4172999A8582A1636AFF"><enum>(1)</enum><header>Authority to
retain compensation consultant</header>
<subparagraph id="H632C5C261C604FC99833CC84534EBEA2"><enum>(A)</enum><header>In
general</header><text>The compensation committee of an issuer, in its capacity
as a committee of the board of directors, may, in its sole discretion, retain
or obtain the advice of a compensation consultant.</text>
</subparagraph><subparagraph id="H0D061EA39788484AA7908AAA8AAA66F0"><enum>(B)</enum><header>Direct
responsibility of compensation committee</header><text>The compensation
committee of an issuer shall be directly responsible for the appointment,
compensation, and oversight of the work of a compensation consultant.</text>
</subparagraph><subparagraph id="H067F20F73F4447EE871E140C4DCCE029"><enum>(C)</enum><header>Rule of
construction</header><text>This paragraph may not be construed—</text>
<clause id="HABA60AC0589E4DA3A45AA194C4B49C64"><enum>(i)</enum><text>to
require the compensation committee to implement or act consistently with the
advice or recommendations of the compensation consultant; or</text>
</clause><clause id="H1D8ADD70A9744770990DA69B2C863724"><enum>(ii)</enum><text>to affect the
ability or obligation of a compensation committee to exercise its own judgment
in fulfillment of the duties of the compensation committee.</text>
</clause></subparagraph></paragraph><paragraph id="H81E6E4A1E52E4024AA0963D4386553FD"><enum>(2)</enum><header>Disclosure</header><text>In
any proxy or consent solicitation material for an annual meeting of the
shareholders (or a special meeting in lieu of the annual meeting) occurring on
or after the date that is 1 year after the date of enactment of this section,
each issuer shall disclose in the proxy or consent material, in accordance with
regulations of the Commission, whether—</text>
<subparagraph id="H4D7C25BC507A4C89B5F4B373A612A77B"><enum>(A)</enum><text>the compensation
committee of the issuer retained or obtained the advice of a compensation
consultant; and</text>
</subparagraph><subparagraph id="HA9BF756B897845B29B101C5DABA90FF8"><enum>(B)</enum><text>the work of the
compensation consultant has raised any conflict of interest and, if so, the
nature of the conflict and how the conflict is being addressed.</text>
</subparagraph></paragraph></subsection><subsection id="HF7BF4555BD454A549D748AAF04994815"><enum>(d)</enum><header>Authority To
engage independent legal counsel and other advisers</header>
<paragraph id="HC082A28AD485496B9B35D4EBCBD578AF"><enum>(1)</enum><header>In
general</header><text>The compensation committee of an issuer, in its capacity
as a committee of the board of directors, may, in its sole discretion, retain
and obtain the advice of independent legal counsel and other advisers.</text>
</paragraph><paragraph id="H8FEC2B4D6E9942FCAFCC1D591A6F0EEC"><enum>(2)</enum><header>Direct
responsibility of compensation committee</header><text>The compensation
committee of an issuer shall be directly responsible for the appointment,
compensation, and oversight of the work of independent legal counsel and other
advisers.</text>
</paragraph><paragraph id="H1EAC8ADB660543F49A62E8C4F9F69467"><enum>(3)</enum><header>Rule of
construction</header><text>This subsection may not be construed—</text>
<subparagraph id="H6D79F40D61414FC68F046C0B19528745"><enum>(A)</enum><text>to require a
compensation committee to implement or act consistently with the advice or
recommendations of independent legal counsel or other advisers under this
subsection; or</text>
</subparagraph><subparagraph id="H2D94E419613C4E10ADCA136FEA019192"><enum>(B)</enum><text>to affect the
ability or obligation of a compensation committee to exercise its own judgment
in fulfillment of the duties of the compensation committee.</text>
</subparagraph></paragraph></subsection><subsection id="HDA01C6EEFA934A91998FB3970815BCA3"><enum>(e)</enum><header>Compensation of
compensation consultants, independent legal counsel, and other
advisers</header><text>Each issuer shall provide for appropriate funding, as
determined by the compensation committee in its capacity as a committee of the
board of directors, for payment of reasonable compensation—</text>
<paragraph id="H97B6919DFD5E4017AF6144768131FB50"><enum>(1)</enum><text>to a compensation
consultant; and</text>
</paragraph><paragraph id="H7EA6F11274BE4BD98E36819497B912D1"><enum>(2)</enum><text>to independent
legal counsel or any other adviser to the compensation committee.</text>
</paragraph></subsection><subsection id="HDC5B66F31BA945DF8919914061826810"><enum>(f)</enum><header>Commission
rules</header>
<paragraph id="HF336E4ED23BF40C2816ABC64EB08873C"><enum>(1)</enum><header>In
general</header><text>Not later than 360 days after the date of enactment of
this section, the Commission shall, by rule, direct the national securities
exchanges and national securities associations to prohibit the listing of any
security of an issuer that is not in compliance with the requirements of this
section.</text>
</paragraph><paragraph id="H3E6A943CDDD040E88D3702D92A8F8CC1"><enum>(2)</enum><header>Opportunity to
cure defects</header><text>The rules of the Commission under paragraph (1)
shall provide for appropriate procedures for an issuer to have a reasonable
opportunity to cure any defects that would be the basis for the prohibition
under paragraph (1), before the imposition of such prohibition.</text>
</paragraph><paragraph id="HABD1A374BDA34B51AEA40A6994C31EF6"><enum>(3)</enum><header>Exemption
authority</header>
<subparagraph id="H187819BFACDE4B7CA7FB2C821E59F003"><enum>(A)</enum><header>In
general</header><text>The rules of the Commission under paragraph (1) shall
permit a national securities exchange or a national securities association to
exempt a category of issuers from the requirements under this section, as the
national securities exchange or the national securities association determines
is appropriate.</text>
</subparagraph><subparagraph id="HCFC6CA5C71CD49B2BF699E2BD0DDC3F6"><enum>(B)</enum><header>Considerations</header><text>In
determining appropriate exemptions under subparagraph (A), the national
securities exchange or the national securities association shall take into
account the potential impact of the requirements of this section on smaller
reporting issuers.</text>
</subparagraph></paragraph></subsection><subsection id="H5D074B505464471DB3791E16AE641C73"><enum>(g)</enum><header>Controlled
company exemption</header>
<paragraph id="HB73239903A6C4525B394C6A9980F58CF"><enum>(1)</enum><header>In
general</header><text>This section shall not apply to any controlled
company.</text>
</paragraph><paragraph id="H4A48330120C3412D88D04C981AF88CFE"><enum>(2)</enum><header>Definition</header><text>For
purposes of this section, the term <term>controlled company</term> means an
issuer—</text>
<subparagraph id="H845F51FE037C4B808B434302F59EB801"><enum>(A)</enum><text>that is listed on
a national securities exchange or by a national securities association;
and</text>
</subparagraph><subparagraph id="HA8B8B103646F4EDF954EF0C959065E73"><enum>(B)</enum><text>that holds an
election for the board of directors of the issuer in which more than 50 percent
of the voting power is held by an individual, a group, or another
issuer.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD454A05C6FB049269420346DCEA67872"><enum>(b)</enum><header>Study and
report</header>
<paragraph id="H60FAAF943E2E4D0C899359BAAB94E394"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study and review of the use of compensation consultants and the
effects of such use.</text>
</paragraph><paragraph id="HE1663E0B729141A584293CC44A924092"><enum>(2)</enum><header>Report</header><text>Not
later than 2 years after the date of the enactment of this Act, the Commission
shall submit a report to Congress on the results of the study and review
required by this subsection.</text>
</paragraph></subsection></section><section id="H42B5777F8D994DFEAB72BF7152CC84DD"><enum>953.</enum><header>Executive
compensation disclosures</header>
<subsection id="H0A024415F2D443F1B444781C306E40F6"><enum>(a)</enum><header>Disclosure of
pay versus performance</header><text display-inline="yes-display-inline">Section 14 of the Securities Exchange Act
of 1934 (15 U.S.C. 78n), as amended by this title, is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2B27527785F140228E5ED6220D2E41AB" style="OLC">
<subsection id="HF4C125D6C92F4E51931A79BD104E44D0"><enum>(i)</enum><header>Disclosure of
pay versus performance</header><text>The Commission shall, by rule, require
each issuer to disclose in any proxy or consent solicitation material for an
annual meeting of the shareholders of the issuer a clear description of any
compensation required to be disclosed by the issuer under section 229.402 of
title 17, Code of Federal Regulations (or any successor thereto), including
information that shows the relationship between executive compensation actually
paid and the financial performance of the issuer, taking into account any
change in the value of the shares of stock and dividends of the issuer and any
distributions. The disclosure under this subsection may include a graphic
representation of the information required to be
disclosed.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC03161B171374EB9A57F4AFA07710012"><enum>(b)</enum><header>Additional
disclosure requirements</header>
<paragraph id="H8CC225635092486DB088CFBF97C3FAD6"><enum>(1)</enum><header>In
general</header><text>The Commission shall amend section 229.402 of title 17,
Code of Federal Regulations, to require each issuer to disclose in any filing
of the issuer described in section 229.10(a) of title 17, Code of Federal
Regulations (or any successor thereto)—</text>
<subparagraph id="H3AD77A8C768D4A59911E2316C556D080"><enum>(A)</enum><text>the median of the
annual total compensation of all employees of the issuer, except the chief
executive officer (or any equivalent position) of the issuer;</text>
</subparagraph><subparagraph id="HB56CA2D43D6B409AB5F19D5579372A4A"><enum>(B)</enum><text>the annual total
compensation of the chief executive officer (or any equivalent position) of the
issuer; and</text>
</subparagraph><subparagraph id="H4A22021E44ED43B6BA85B3B56F2BF601"><enum>(C)</enum><text>the ratio of the
amount described in subparagraph (A) to the amount described in subparagraph
(B).</text>
</subparagraph></paragraph><paragraph id="H66BE72078C094029B755CFF02259E2F7"><enum>(2)</enum><header>Total
compensation</header><text>For purposes of this subsection, the total
compensation of an employee of an issuer shall be determined in accordance with
section 229.402(c)(2)(x) of title 17, Code of Federal Regulations, as in effect
on the day before the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="HA3A29E1D5CEE47E6B3C9300C39E0945D"><enum>954.</enum><header>Recovery of
erroneously awarded compensation</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 is
amended by inserting after section 10C, as added by section 952, the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFD93C149E6124CCFA8D5831E09292C93" style="OLC">
<section id="H0D202AD8AB464AD18494765EC9D686EB"><enum>10D.</enum><header>Recovery of
erroneously awarded compensation policy</header>
<subsection id="HFCB17DA1A15748FD852EE0A0C146BCB5"><enum>(a)</enum><header>Listing
standards</header><text>The Commission shall, by rule, direct the national
securities exchanges and national securities associations to prohibit the
listing of any security of an issuer that does not comply with the requirements
of this section.</text>
</subsection><subsection id="HE84224238C05454DA18BF016660667E8"><enum>(b)</enum><header>Recovery of
funds</header><text>The rules of the Commission under subsection (a) shall
require each issuer to develop and implement a policy providing—</text>
<paragraph id="HD6ADE54A8CD24F97BCF19B4F0821BF5E"><enum>(1)</enum><text>for disclosure of
the policy of the issuer on incentive-based compensation that is based on
financial information required to be reported under the securities laws;
and</text>
</paragraph><paragraph id="HE10ACB506AD947E6A8DE3CFDF49FFCFA"><enum>(2)</enum><text>that, in the event
that the issuer is required to prepare an accounting restatement due to the
material noncompliance of the issuer with any financial reporting requirement
under the securities laws, the issuer will recover from any current or former
executive officer of the issuer who received incentive-based compensation
(including stock options awarded as compensation) during the 3-year period
preceding the date on which the issuer is required to prepare an accounting
restatement, based on the erroneous data, in excess of what would have been
paid to the executive officer under the accounting
restatement.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HDD44DB36CD6248EEB95BE414658A42D2"><enum>955.</enum><header>Disclosure
regarding employee and director hedging</header><text display-inline="no-display-inline">Section 14 of the Securities Exchange Act of
1934 (15 U.S.C. 78n), as amended by this title, is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HEF39CCF658894E31BD51B471DD991C94" style="OLC">
<subsection id="H6FD2E9388AFA4ABAA6F64D6A5391C3D3"><enum>(j)</enum><header>Disclosure of
hedging by employees and directors</header><text display-inline="yes-display-inline">The Commission shall, by rule, require each
issuer to disclose in any proxy or consent solicitation material for an annual
meeting of the shareholders of the issuer whether any employee or member of the
board of directors of the issuer, or any designee of such employee or member,
is permitted to purchase financial instruments (including prepaid variable
forward contracts, equity swaps, collars, and exchange funds) that are designed
to hedge or offset any decrease in the market value of equity
securities—</text>
<paragraph id="H5B4E0FA4898E45719756123FA9A2A4B4"><enum>(1)</enum><text display-inline="yes-display-inline">granted to the employee or member of the
board of directors by the issuer as part of the compensation of the employee or
member of the board of directors; or</text>
</paragraph><paragraph id="HD323EB68816E42498ED669E60312C3CD"><enum>(2)</enum><text display-inline="yes-display-inline">held, directly or indirectly, by the
employee or member of the board of
directors.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H18FBBD78C04847898A07D7CDAD31E52D"><enum>956.</enum><header>Enhanced
compensation structure reporting</header>
<subsection id="H290ECA6249E444F7BCA4E1FE115F602C"><enum>(a)</enum><header>Enhanced
Disclosure and Reporting of Compensation Arrangements</header>
<paragraph id="H3281209DFC5B4516B4197107FF3A9858"><enum>(1)</enum><header>In
general</header><text>Not later than 9 months after the date of enactment of
this title, the appropriate Federal regulators jointly shall prescribe
regulations or guidelines to require each covered financial institution to
disclose to the appropriate Federal regulator the structures of all
incentive-based compensation arrangements offered by such covered financial
institutions sufficient to determine whether the compensation structure—</text>
<subparagraph id="HB4A4270E66FB4DE4B8AB61D0BFFDAE89"><enum>(A)</enum><text display-inline="yes-display-inline">provides an executive officer, employee,
director, or principal shareholder of the covered financial institution with
excessive compensation, fees, or benefits; or</text>
</subparagraph><subparagraph id="H027A2B4FC20A41FAAF1F60515D4C21EA"><enum>(B)</enum><text display-inline="yes-display-inline">could lead to material financial loss to
the covered financial institution.</text>
</subparagraph></paragraph><paragraph id="H4B035DBD2AEA437087697495E164D555"><enum>(2)</enum><header>rules of
construction</header><text>Nothing in this section shall be construed as
requiring the reporting of the actual compensation of particular individuals.
Nothing in this section shall be construed to require a covered financial
institution that does not have an incentive-based payment arrangement to make
the disclosures required under this subsection.</text>
</paragraph></subsection><subsection id="H3EBC3B8A0E3D4822A395E52CAF4EE74E"><enum>(b)</enum><header>Prohibition on
Certain Compensation Arrangements</header><text>Not later than 9 months after
the date of enactment of this title, the appropriate Federal regulators shall
jointly prescribe regulations or guidelines that prohibit any types of
incentive-based payment arrangement, or any feature of any such arrangement,
that the regulators determine encourages inappropriate risks by covered
financial institutions—</text>
<paragraph commented="no" id="H23F44053E879454B87FCFD55D833C3E8"><enum>(1)</enum><text display-inline="yes-display-inline">by providing an executive officer,
employee, director, or principal shareholder of the covered financial
institution with excessive compensation, fees, or benefits; or</text>
</paragraph><paragraph commented="no" id="H3AF4E7E4629F4384B3C7DE2C6301E23F"><enum>(2)</enum><text display-inline="yes-display-inline">that could lead to material financial loss
to the covered financial institution.</text>
</paragraph></subsection><subsection id="H8432F257EBDC41BE9703407F40D4A393"><enum>(c)</enum><header>Standards</header><text>The
appropriate Federal regulators shall—</text>
<paragraph id="H32E86296411C4A49BC77EB8A56B19EB0"><enum>(1)</enum><text display-inline="yes-display-inline">ensure that any standards for compensation
established under subsections (a) or (b) are comparable to the standards
established under section of the Federal Deposit Insurance Act (12 U.S.C. 2
1831p–1) for insured depository institutions; and</text>
</paragraph><paragraph id="HB9C9B933775844AE8613ECB519AA7D86"><enum>(2)</enum><text display-inline="yes-display-inline">in establishing such standards under such
subsections, take into consideration the compensation standards described in
section 39(c) of the Federal Deposit Insurance Act (12 U.S.C. 1831p– 9
1(c)).</text>
</paragraph></subsection><subsection id="HAF48D4B198464E688F421ADAEED0F1CD"><enum>(d)</enum><header>Enforcement</header><text>The
provisions of this section and the regulations issued under this section shall
be enforced under section 505 of the Gramm-Leach-Bliley Act and, for purposes
of such section, a violation of this section or such regulations shall be
treated as a violation of subtitle A of title V of such Act.</text>
</subsection><subsection id="H2E9E7F3056D34FCEADCD96E1B549A578"><enum>(e)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="H7BE917F7717149CB9EC178A8085E6686"><enum>(1)</enum><text>the term
<quote>appropriate Federal regulator</quote> means the Board of Governors of
the Federal Reserve System, the Office of 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 Securities and Exchange Commission, the Federal Housing Finance
Agency; and</text>
</paragraph><paragraph id="H5FE0C344F4074D0CB56835748CEF48EF"><enum>(2)</enum><text>the term
<quote>covered financial institution</quote> means—</text>
<subparagraph id="H7662658606D34F029F7672BFA44DCCCA"><enum>(A)</enum><text>a depository
institution or depository institution holding company, as such terms are
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813);</text>
</subparagraph><subparagraph id="H519156922A484FD69839A8149220ECE2"><enum>(B)</enum><text>a broker-dealer
registered under section 15 of the Securities Exchange Act of 1934 (15 U.S.C.
78o);</text>
</subparagraph><subparagraph id="HE725D312E2D14E6C952A404A70FB8634"><enum>(C)</enum><text>a credit union, as
described in section 19(b)(1)(A)(iv) of the Federal Reserve Act;</text>
</subparagraph><subparagraph id="H3660D930889042C392A2D8E7C5FF1487"><enum>(D)</enum><text>an investment
advisor, as such term is defined in section 202(a)(11) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-2(a)(11));</text>
</subparagraph><subparagraph id="HDDFC0C0747884682BB8412DAD4B58516"><enum>(E)</enum><text>the Federal
National Mortgage Association;</text>
</subparagraph><subparagraph id="H5D756FD8CE55439CBC76B963C2656BB8"><enum>(F)</enum><text>the Federal Home
Loan Mortgage Corporation; and</text>
</subparagraph><subparagraph id="HB2F626D574374ED2A4742F367EA9F05A"><enum>(G)</enum><text>any other
financial institution that the appropriate Federal regulators, jointly, by
rule, determine should be treated as a covered financial institution for
purposes of this section.</text>
</subparagraph></paragraph></subsection><subsection id="HAB937809D11949108B50225C769605EB"><enum>(f)</enum><header>Exemption for
Certain Financial Institutions</header><text>The requirements of this section
shall not apply to covered financial institutions with assets of less than
$1,000,000,000.</text>
</subsection></section><section id="HE882372372984F9FBAD3982C2433D7E7"><enum>957.</enum><header>Voting by
brokers</header><text display-inline="no-display-inline">Section 6(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78f(b)) is amended—</text>
<paragraph id="H103CBB2A01004FB39D1910F5D7C02542"><enum>(1)</enum><text>in paragraph
(9)—</text>
<subparagraph id="H047BE44366DE479DBA99DD5738505CB8"><enum>(A)</enum><text>in subparagraph
(A), by redesignating clauses (i) through (v) as subclauses (I) through (V),
respectively, and adjusting the margins accordingly;</text>
</subparagraph><subparagraph id="HCEA9E717D6D648CDBEB254570E99A6F1"><enum>(B)</enum><text>by redesignating
subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;</text>
</subparagraph><subparagraph id="HE00417E9BFC646869B3F1588DC2CDB6B"><enum>(C)</enum><text>by inserting
<quote>(A)</quote> after <quote>(9)</quote>; and</text>
</subparagraph><subparagraph id="H229F831148844FEF83E0CED2E6C98065"><enum>(D)</enum><text>in the matter
immediately following clause (iv), as so redesignated, by striking <quote>As
used</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5C2CD5D5C2B0480BAD9DC813AA01E243" style="OLC">
<subparagraph id="H5CFE73A5B3844AFD9375087B598265DE" indent="up1"><enum>(B)</enum><text>As
used</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC25C2E07950B45D4952B14DE83AB7E42"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF86A65F85DA141408071861A1236D616" style="OLC">
<paragraph id="H38DEB190C136490EBDA96237BE7B3267"><enum>(10)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HFFA102FEBE0241F4BA014A7B3837C48D"><enum>(A)</enum><text>The rules of the
exchange prohibit any member that is not the beneficial owner of a security
registered under section 12 from granting a proxy to vote the security in
connection with a shareholder vote described in subparagraph (B), unless the
beneficial owner of the security has instructed the member to vote the proxy in
accordance with the voting instructions of the beneficial owner.</text>
</subparagraph><subparagraph id="H9F56B7F11C7E493D8149DBC3F792572A" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">A
shareholder vote described in this subparagraph is a shareholder vote with
respect to the election of a member of the board of directors of an issuer,
executive compensation, or any other significant matter, as determined by the
Commission, by rule, and does not include a vote with respect to the
uncontested election of a member of the board of directors of any investment
company registered under the Investment Company Act of 1940 (15 U.S.C. 80b–1 et
seq.).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB1C1DEDE83D54876B0F09F92D34EF144" indent="up1"><enum>(C)</enum><text>Nothing in this paragraph shall be
construed to prohibit a national securities exchange from prohibiting a member
that is not the beneficial owner of a security registered under section 12 from
granting a proxy to vote the security in connection with a shareholder vote not
described in subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="H3752FF722C5E44FEA4CA9A6346467697"><enum>F</enum><header>Improvements to
the Management of the Securities and Exchange Commission</header>
<section id="H1A5A924F793441DA8934AB00AEC127CF"><enum>961.</enum><header>Report and
certification of internal supervisory controls</header>
<subsection id="HE9B940130AE34D9CB168E69ACDA206B7"><enum>(a)</enum><header>Annual reports
and certification</header><text>Not later than 90 days after the end of each
fiscal year, the Commission shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives on the conduct by the Commission of
examinations of registered entities, enforcement investigations, and review of
corporate financial securities filings.</text>
</subsection><subsection id="HC922C51EB460428784372F9939EE60C7"><enum>(b)</enum><header>Contents of
reports</header><text>Each report under subsection (a) shall contain—</text>
<paragraph id="HD4728229F4ED46EC83ECE704D7E10482"><enum>(1)</enum><text>an assessment, as
of the end of the most recent fiscal year, of the effectiveness of—</text>
<subparagraph id="H85741F2F8B6E4D6583D83976781ECA23"><enum>(A)</enum><text>the internal
supervisory controls of the Commission; and</text>
</subparagraph><subparagraph id="H20716CD1AD564B4599C2FDECDCE501D3"><enum>(B)</enum><text>the procedures of
the Commission applicable to the staff of the Commission who perform
examinations of registered entities, enforcement investigations, and reviews of
corporate financial securities filings;</text>
</subparagraph></paragraph><paragraph id="H12A177C5BD9A4F7096024CAA4C63983C"><enum>(2)</enum><text>a
certification that the Commission has adequate internal supervisory controls to
carry out the duties of the Commission described in paragraph (1)(B);
and</text>
</paragraph><paragraph id="HF8B04D898FBF425CB7C7A1D96443E231"><enum>(3)</enum><text>a
summary by the Comptroller General of the United States of the review carried
out under subsection (d).</text>
</paragraph></subsection><subsection id="HF27A0B36A9C94F909515B7D145BD5F8F"><enum>(c)</enum><header>Certification</header>
<paragraph id="HED3516D0974541E8B525F0222BCAAA66"><enum>(1)</enum><header>Signature</header><text>The
certification under subsection (b)(2) shall be signed by the Director of the
Division of Enforcement, the Director of the Division of Corporation Finance,
and the Director of the Office of Compliance Inspections and Examinations (or
the head of any successor division or office).</text>
</paragraph><paragraph id="H6DC378305ABE444097567A6536F805E6"><enum>(2)</enum><header>Content of
certification</header><text>Each individual described in paragraph (1) shall
certify that the individual—</text>
<subparagraph id="H5530A08A238549318E382832C570868B"><enum>(A)</enum><text>is directly
responsible for establishing and maintaining the internal supervisory controls
of the Division or Office of which the individual is the head;</text>
</subparagraph><subparagraph id="H417E34AC6FB64B85A5B1CD554F691DC0"><enum>(B)</enum><text>is knowledgeable
about the internal supervisory controls of the Division or Office of which the
individual is the head;</text>
</subparagraph><subparagraph id="HF325957955F84F649A83C2619E752995"><enum>(C)</enum><text>has evaluated the
effectiveness of the internal supervisory controls during the 90-day period
ending on the final day of the fiscal year to which the report relates;
and</text>
</subparagraph><subparagraph id="HE8ACB75688F94D0AAE4912E5D4141456"><enum>(D)</enum><text>has disclosed to
the Commission any significant deficiencies in the design or operation of
internal supervisory controls that could adversely affect the ability of the
Division or Office to consistently conduct inspections, or investigations, or
reviews of filings with professional competence and integrity.</text>
</subparagraph></paragraph></subsection><subsection id="HDD58D09DCAD14FE780B65E86F0EC55BA"><enum>(d)</enum><header>New Director or
Acting Director</header><text>Notwithstanding subsection (a), if the Director
of the Division of Enforcement, the Director of the Division of Corporate
Finance, or the Director of the Office of Compliance Inspections and
Examinations has served as Director of the Division or Office for less than 90
days on the date on which a report is required to be submitted under subsection
(a), the Commission may submit the report on the date on which the Director has
served as Director for 90 days. If there is no Director of the Division of
Enforcement, the Division of Corporate Finance, or the Office of Compliance
Inspections and Examinations, on the date on which a report is required to be
submitted under subsection (a), the Acting Director of the Division or Office
may make the certification required under subsection (c).</text>
</subsection><subsection id="HE13AB7B340AD4002A9936DE77504EBEF"><enum>(e)</enum><header>Review by the
Comptroller General</header>
<paragraph id="HDC15A16F4D0040288296AFCF1A68E539"><enum>(1)</enum><header>Report</header><text>The
Comptroller General of the United States shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report that contains a
review of the adequacy and effectiveness of the internal supervisory control
structure and procedures described in subsection (b)(1), not less frequently
than once every 3 years, at a time to coincide with the publication of the
reports of the Commission under this section.</text>
</paragraph><paragraph id="HE3970F4E171D4B19B14C842F00611474"><enum>(2)</enum><header>Authority to
hire experts</header><text>The Comptroller General of the United States may
hire independent consultants with specialized expertise in any area relevant to
the duties of the Comptroller General described in this section, in order to
assist the Comptroller General in carrying out such duties.</text>
</paragraph></subsection></section><section id="H8F5ED352B6364476B374CF967A0EBFA9"><enum>962.</enum><header>Triennial
report on personnel management</header>
<subsection id="H1C607936D14A4F7C8090F37E2AF3C702"><enum>(a)</enum><header>Triennial report
required</header><text>Once every 3 years, the Comptroller General of the
United States shall submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives on the quality of personnel management by the
Commission.</text>
</subsection><subsection id="H48A7BCD06897440EA3595E43E730ABDF"><enum>(b)</enum><header>Contents of
report</header><text>Each report under subsection (a) shall include—</text>
<paragraph id="H3BFCAC2C8BB44E078206CEEFA62A9378"><enum>(1)</enum><text>an evaluation
of—</text>
<subparagraph id="H5D4FDFBF10DC4ED3A1AAED471466166C"><enum>(A)</enum><text>the effectiveness
of supervisors in using the skills, talents, and motivation of the employees of
the Commission to achieve the goals of the Commission;</text>
</subparagraph><subparagraph id="H69F098D08D2944CC8D54AF1A382E531B"><enum>(B)</enum><text>the criteria for
promoting employees of the Commission to supervisory positions;</text>
</subparagraph><subparagraph id="HAF0F20B20340466AB40F2B44381BBB9D"><enum>(C)</enum><text>the fairness of
the application of the promotion criteria to the decisions of the
Commission;</text>
</subparagraph><subparagraph id="HB9205E50645E4119A5A2CD9296D14804"><enum>(D)</enum><text>the competence of
the professional staff of the Commission;</text>
</subparagraph><subparagraph id="H1F392AD02C0B498A95EFA3F868D973B5"><enum>(E)</enum><text>the efficiency of
communication between the units of the Commission regarding the work of the
Commission (including communication between divisions and between subunits of a
division) and the efforts by the Commission to promote such
communication;</text>
</subparagraph><subparagraph id="H6B1AA12ECA4543A3AA13ED5C46ADC9E5"><enum>(F)</enum><text>the turnover
within subunits of the Commission, including the consideration of supervisors
whose subordinates have an unusually high rate of turnover;</text>
</subparagraph><subparagraph id="H76531D180B7C4779AF01425FA2A52DBB"><enum>(G)</enum><text>whether there are
excessive numbers of low-level, mid-level, or senior-level managers;</text>
</subparagraph><subparagraph id="HA40809A86EC947468076D64277201491"><enum>(H)</enum><text>any initiatives of
the Commission that increase the competence of the staff of the
Commission;</text>
</subparagraph><subparagraph id="HEE8BCAF26C014DA1A20159437FE65310"><enum>(I)</enum><text>the actions taken
by the Commission regarding employees of the Commission who have failed to
perform their duties and circumstances under which the Commission has issued to
employees a notice of termination; and</text>
</subparagraph><subparagraph id="H7E3113CA4D5541ED9A9CCF67F4507B32"><enum>(J)</enum><text>such other factors
relating to the management of the Commission as the Comptroller General
determines are appropriate;</text>
</subparagraph></paragraph><paragraph id="H435E77689290493A81104ED0B5F36AAE"><enum>(2)</enum><text>an evaluation of
any improvements made with respect to the areas described in paragraph (1)
since the date of submission of the previous report; and</text>
</paragraph><paragraph id="HAF09CBCE4DF54BFC9D942B5E67672871"><enum>(3)</enum><text>recommendations
for how the Commission can use the human resources of the Commission more
effectively and efficiently to carry out the mission of the Commission.</text>
</paragraph></subsection><subsection id="H2CEF6A3A3ACD40BE8458586B8B293E75"><enum>(c)</enum><header>Consultation</header><text>In
preparing the report under subsection (a), the Comptroller General shall
consult with current employees of the Commission, retired employees and other
former employees of the Commission, the Inspector General of the Commission,
persons that have business before the Commission, any union representing the
employees of the Commission, private management consultants, academics, and any
other source that the Comptroller General deems appropriate.</text>
</subsection><subsection id="HAC6C4B9665D84017B80247CB07F0B907"><enum>(d)</enum><header>Report by
Commission</header><text>Not later than 90 days after the date on which the
Comptroller General submits each report under subsection (a), the Commission
shall submit to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
a report describing the actions taken by the Commission in response to the
recommendations contained in the report under subsection (a).</text>
</subsection><subsection id="H88784EA486174F91A79FB20654D1881D"><enum>(e)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="H593C51A9A0914A3FA21234428E5DED3C"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under this
section, as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="H7F6BD494D1C442E7B77531D46C722EE6"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="HA039897992234E87ABD2F45D054613AF"><enum>(A)</enum><text>be credited to the
appropriation account <quote>Salaries and Expenses, Government Accountability
Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="H28D3AF11FBE2415A97778AF6A9E0AB92"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection><subsection id="H08609985F6E04A7CA0348D9B714D3C7B"><enum>(f)</enum><header display-inline="yes-display-inline">Authority to hire experts</header><text display-inline="yes-display-inline">The Comptroller General of the United
States may hire independent consultants with specialized expertise in any area
relevant to the duties of the Comptroller General described in this section, in
order to assist the Comptroller General in carrying out such duties.</text>
</subsection></section><section id="HD5598C0DDBB842519E760A7C1F2A5BB7"><enum>963.</enum><header>Annual
financial controls audit</header>
<subsection id="H91A3BF0AD848424A82A479329F1A109F"><enum>(a)</enum><header>Reports of
commission</header>
<paragraph id="H9C83330D34134D68BABEBAD7C7802F56"><enum>(1)</enum><header>Annual reports
required</header><text>Not later than 6 months after the end of each fiscal
year, the Commission shall publish and submit to Congress a report that—</text>
<subparagraph id="HE61A20317FD1459DB2BBD76EBC2C2A8C"><enum>(A)</enum><text>describes the
responsibility of the management of the Commission for establishing and
maintaining an adequate internal control structure and procedures for financial
reporting; and</text>
</subparagraph><subparagraph id="H0631DAE102FD4A11BA4AA2F479B90BC3"><enum>(B)</enum><text>contains an
assessment of the effectiveness of the internal control structure and
procedures for financial reporting of the Commission during that fiscal
year.</text>
</subparagraph></paragraph><paragraph id="H68D433F1159A40EB822BD4B4922FF0BD"><enum>(2)</enum><header>Attestation</header><text>The
reports required under paragraph (1) shall be attested to by the Chairman and
chief financial officer of the Commission.</text>
</paragraph></subsection><subsection id="HED7073C8646E4F88881B6300E9C8C331"><enum>(b)</enum><header>Report by
Comptroller General</header>
<paragraph id="HF268B22819F24C55A75246B4CA332A33"><enum>(1)</enum><header>Report
required</header><text>Not later than 6 months after the end of the first
fiscal year after the date of enactment of this Act, the Comptroller General of
the United States shall submit a report to Congress that assesses—</text>
<subparagraph id="H87408C590121448B884651CE38CA6067"><enum>(A)</enum><text>the effectiveness
of the internal control structure and procedures of the Commission for
financial reporting; and</text>
</subparagraph><subparagraph id="HBA3C53E4EB8A42179801718941C3A59E"><enum>(B)</enum><text>the assessment of
the Commission under subsection (a)(1)(B).</text>
</subparagraph></paragraph><paragraph id="H3164ECDA740D46EEB886307595FDFBA7"><enum>(2)</enum><header>Attestation</header><text>The
Comptroller General shall attest to, and report on, the assessment made by the
Commission under subsection (a).</text>
</paragraph></subsection><subsection id="H9363465715A140599017C02A0B4A480D"><enum>(c)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="HB598B4A113784AB9A0A428BB1227236B"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under subsection
(b), as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="H101436E81DF84F859318B4785A6EF642"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="HDFFFFECF0B044E5FA0BD84413F5486FE"><enum>(A)</enum><text>be credited to the
appropriation account <quote>Salaries and Expenses, Government Accountability
Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="HCCBA94EA93104AD9A0B4C032810874F1"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection></section><section id="H2C2F9B6AD15C44188F792ACA01D2AB59"><enum>964.</enum><header>Report on
oversight of national securities associations</header>
<subsection id="HA2E20A3BE183488BA0C274C3D73FC40A"><enum>(a)</enum><header>Report
required</header><text display-inline="yes-display-inline">Not later than 2
years after the date of enactment of this Act, and every 3 years thereafter,
the Comptroller General of the United States shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report that includes an
evaluation of the oversight by the Commission of national securities
associations registered under section 15A of the Securities Exchange Act of
1934 (15 U.S.C. 78o–3) with respect to—</text>
<paragraph id="H990726D822AB47C2911A579CB259D9DC"><enum>(1)</enum><text>the governance of
such national securities associations, including the identification and
management of conflicts of interest by such national securities associations,
together with an analysis of the impact of any conflicts of interest on the
regulatory enforcement or rulemaking by such national securities
associations;</text>
</paragraph><paragraph id="H8AAA8D6EDC38444EA12A7BDBC4C2F0FD"><enum>(2)</enum><text>the examinations
carried out by the national securities associations, including the expertise of
the examiners;</text>
</paragraph><paragraph id="HFA605D8E648A47B8A21C97ECECBF5CE4"><enum>(3)</enum><text>the executive
compensation practices of such national securities associations;</text>
</paragraph><paragraph id="H103CF58A84E24A3895E7C3C582491B5F"><enum>(4)</enum><text>the arbitration
services provided by the national securities associations;</text>
</paragraph><paragraph id="H0D9C49D0402745D0997429B9951C74F8"><enum>(5)</enum><text>the review
performed by national securities associations of advertising by the members of
the national securities associations;</text>
</paragraph><paragraph id="H9354AC112CFB4BE8B8377EDCF3367652"><enum>(6)</enum><text>the cooperation
with and assistance to State securities administrators by the national
securities associations to promote investor protection;</text>
</paragraph><paragraph id="HE0B92DA38BAD49BEB7C8D9F6EEEEF06F"><enum>(7)</enum><text>how the funding of
national securities associations is used to support the mission of the national
securities associations, including—</text>
<subparagraph id="HB51397D2F91E4099A83A5D854DE1E8EB"><enum>(A)</enum><text>the methods of
funding;</text>
</subparagraph><subparagraph id="HE2267E7D5BAC4816A5EBB0A9F222EB91"><enum>(B)</enum><text>the sufficiency of
funds;</text>
</subparagraph><subparagraph commented="no" id="H791BCFC927FD42809E34FE797DD31982"><enum>(C)</enum><text>how funds are
invested by the national securities association pending use; and</text>
</subparagraph><subparagraph commented="no" id="H83530E8213A84F40BC027417FE29A907"><enum>(D)</enum><text>the impact of the
methods, sufficiency, and investment of funds on regulatory enforcement by the
national securities associations;</text>
</subparagraph></paragraph><paragraph id="HA9FF3EE01FCD475ABCBC406A252DB5AC"><enum>(8)</enum><text>the policies
regarding the employment of former employees of national securities
associations by regulated entities;</text>
</paragraph><paragraph id="H3FC23128606740A6AC1864984DA58A15"><enum>(9)</enum><text>the ongoing
effectiveness of the rules of the national securities associations in achieving
the goals of the rules;</text>
</paragraph><paragraph id="H4FFD1D2437F845FEAA19F69D01156933"><enum>(10)</enum><text>the transparency
of governance and activities of the national securities associations;
and</text>
</paragraph><paragraph id="H9F918350092D4DA1ABFE72677991D627"><enum>(11)</enum><text>any other issue
that has an impact, as determined by the Comptroller General, on the
effectiveness of such national securities associations in performing their
mission and in dealing fairly with investors and members;</text>
</paragraph></subsection><subsection id="H186F02CE02CD46E293CBB15C824A57E1"><enum>(b)</enum><header>Reimbursements
for cost of reports</header>
<paragraph id="H4F03392AA2F64698B2F8ACBC42C12B40"><enum>(1)</enum><header>Reimbursements
required</header><text>The Commission shall reimburse the Government
Accountability Office for the full cost of making the reports under subsection
(a), as billed therefor by the Comptroller General.</text>
</paragraph><paragraph id="HD0B44792EAE8449A94CD226D1F1C5E2C"><enum>(2)</enum><header>Crediting and
use of reimbursements</header><text>Such reimbursements shall—</text>
<subparagraph id="HC9445413CBAC440C84DE497432F065D5"><enum>(A)</enum><text>be credited to the
appropriation account <quote>Salaries and Expenses, Government Accountability
Office</quote> current when the payment is received; and</text>
</subparagraph><subparagraph id="HADDF32F558684109871A9C677BE16324"><enum>(B)</enum><text>remain available
until expended.</text>
</subparagraph></paragraph></subsection></section><section id="H630F65968F3649338B7D0DCDD777E2E5"><enum>965.</enum><header>Compliance
examiners</header><text display-inline="no-display-inline">Section 4 of the
Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HC715333423884BD0871784BCDF0B8A1C" style="OLC">
<subsection id="H9A3D23AABA2D4DF188E609D71F0FA6E5"><enum>(h)</enum><header>Examiners</header>
<paragraph id="H940B3E513F5647AD8E3AA21B9CDA1231"><enum>(1)</enum><header>Division of
Trading and Markets</header><text>The Division of Trading and Markets of the
Commission, or any successor organizational unit, shall have a staff of
examiners who shall—</text>
<subparagraph id="HAD71852623E74A7989EF409415E375C2"><enum>(A)</enum><text>perform compliance
inspections and examinations of entities under the jurisdiction of that
Division; and</text>
</subparagraph><subparagraph id="H8CD2E3C8D79E47FEA3277147AE4B76C3"><enum>(B)</enum><text>report to the
Director of that Division.</text>
</subparagraph></paragraph><paragraph id="H53B3D4DC4D9E4B95A91603E625608D01"><enum>(2)</enum><header>Division of
Investment Management</header><text>The Division of Investment Management of
the Commission, or any successor organizational unit, shall have a staff of
examiners who shall—</text>
<subparagraph id="HC0F0378E3BA0490799C460BA2ACB8E5A"><enum>(A)</enum><text>perform compliance
inspections and examinations of entities under the jurisdiction of that
Division; and</text>
</subparagraph><subparagraph id="HA210D996944A40B3BFCC6DFDBCDB14E1"><enum>(B)</enum><text>report to the
Director of that
Division.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6CF1ECEE1475425F88852D1820171580"><enum>966.</enum><header>Suggestion
program for employees of the Commission</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by inserting after section 4C (15 U.S.C. 78d–3)
the following:</text>
<quoted-block display-inline="no-display-inline" id="H067A82BE1823412695BE9DAEF681FE63" style="OLC">
<section id="H3C7D691CA9A549B59778A28D572FCA2C"><enum>4D.</enum><header>Additional
duties of Inspector General</header>
<subsection id="H31C76A98BF2A453493F519E7DC5C344D"><enum>(a)</enum><header>Suggestion
submissions by Commission employees</header>
<paragraph id="H46B4D81B727E43D7B29B025D597E5C83"><enum>(1)</enum><header>Hotline
established</header><text>The Inspector General of the Commission shall
establish and maintain a telephone hotline or other electronic means for the
receipt of—</text>
<subparagraph id="H517B7283D25942EE820079A5ED16D559"><enum>(A)</enum><text>suggestions by
employees of the Commission for improvements in the work efficiency,
effectiveness, and productivity, and the use of the resources, of the
Commission; and</text>
</subparagraph><subparagraph id="H3CFB9B5813A745CC82201818427E882E"><enum>(B)</enum><text>allegations by
employees of the Commission of waste, abuse, misconduct, or mismanagement
within the Commission.</text>
</subparagraph></paragraph><paragraph id="H57C6BAD5A03C42FFA9AA747D171D1E60"><enum>(2)</enum><header>Confidentiality</header><text>The
Inspector General shall maintain as confidential—</text>
<subparagraph id="H8E2DDD9DFB5349129E37EE115E9D21A8"><enum>(A)</enum><text>the identity of
any individual who provides information by the means established under
paragraph (1), unless the individual requests otherwise, in writing; and</text>
</subparagraph><subparagraph id="H1E9D9F587F31480181EC8CD1883614B3"><enum>(B)</enum><text>at the request of
any such individual, any specific information provided by the
individual.</text>
</subparagraph></paragraph></subsection><subsection id="HD90E4C90FAE44FF1A9A64B92B4F6B139"><enum>(b)</enum><header>Consideration of
reports</header><text>The Inspector General shall consider any suggestions or
allegations received by the means established under subsection (a)(1), and
shall recommend appropriate action in relation to such suggestions or
allegations.</text>
</subsection><subsection id="H074F06ECEDAB425583D25CABD7A78E63"><enum>(c)</enum><header>Recognition</header><text>The
Inspector General may recognize any employee who makes a suggestion under
subsection (a)(1) (or by other means) that would or does—</text>
<paragraph id="H7CF31DE3F2E449B1B0F4212DF56B4C27"><enum>(1)</enum><text>increase the work
efficiency, effectiveness, or productivity of the Commission; or</text>
</paragraph><paragraph id="H1ED1C637EDE142E5A1652AC91714CBDE"><enum>(2)</enum><text>reduce waste,
abuse, misconduct, or mismanagement within the Commission.</text>
</paragraph></subsection><subsection id="H339C933D1A8548EEB3C90DF7CBEBAFD0"><enum>(d)</enum><header>Report</header><text>The
Inspector General of the Commission shall submit to Congress an annual report
containing a description of—</text>
<paragraph id="H1624A13247DE43A1AD447B33A6CCF38F"><enum>(1)</enum><text>the nature,
number, and potential benefits of any suggestions received under subsection
(a);</text>
</paragraph><paragraph id="H26F11C6E250240A7BD0C5F0BB39AD41F"><enum>(2)</enum><text>the nature,
number, and seriousness of any allegations received under subsection
(a);</text>
</paragraph><paragraph id="HCCB9AE10E902497C93C8E1BB8FE60027"><enum>(3)</enum><text>any
recommendations made or actions taken by the Inspector General in response to
substantiated allegations received under subsection (a); and</text>
</paragraph><paragraph id="H7B19363A79AE426382A2B573EAB97708"><enum>(4)</enum><text>any action the
Commission has taken in response to suggestions or allegations received under
subsection (a).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE5CB85BE33024751B4871B9D69A8DFA3"><enum>(e)</enum><header>Funding</header><text>The
activities of the Inspector General under this subsection shall be funded by
the Securities and Exchange Commission Investor Protection Fund established
under section
21F.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H4AB8A81369E542E29792A1067D548B54"><enum>967.</enum><header>Commission
organizational study and reform</header>
<subsection commented="no" id="HEF78986F1DA543049F5BFFFE8AB76BC8"><enum>(a)</enum><header>Study
required</header>
<paragraph commented="no" id="HF96B0C3F2C724B7BBED37EE0ADD124CA"><enum>(1)</enum><header>In
general</header><text>Not later than the end of the 90-day period beginning on
the date of the enactment of this subtitle, the Securities and Exchange
Commission (hereinafter in this section referred to as the <quote>SEC</quote>)
shall hire an independent consultant of high caliber and with expertise in
organizational restructuring and the operations of capital markets to examine
the internal operations, structure, funding, and the need for comprehensive
reform of the SEC, as well as the SEC’s relationship with and the reliance on
self-regulatory organizations and other entities relevant to the regulation of
securities and the protection of securities investors that are under the SEC’s
oversight.</text>
</paragraph><paragraph commented="no" id="HF6B5A477941242AEB0731ECEF35D9AF3"><enum>(2)</enum><header>Specific areas
for study</header><text>The study required under paragraph (1) shall, at a
minimum, include the study of—</text>
<subparagraph commented="no" id="HB436C40C699C4E8E81B131CA7CFCB427"><enum>(A)</enum><text display-inline="yes-display-inline">the possible elimination of unnecessary or
redundant units at the SEC;</text>
</subparagraph><subparagraph commented="no" id="HC9E8DD4CD8FB4D629C491786F3E407A8"><enum>(B)</enum><text>improving
communications between SEC offices and divisions;</text>
</subparagraph><subparagraph commented="no" id="HF5B08418298F43ABAC849C02743369AC"><enum>(C)</enum><text display-inline="yes-display-inline">the need to put in place a clear
chain-of-command structure, particularly for enforcement examinations and
compliance inspections;</text>
</subparagraph><subparagraph commented="no" id="H6B4CD8102F1B424C80CB1FAB49CA1C6F"><enum>(D)</enum><text display-inline="yes-display-inline">the effect of high-frequency trading and
other technological advances on the market and what the SEC requires to monitor
the effect of such trading and advances on the market;</text>
</subparagraph><subparagraph commented="no" id="H28105C249A1F4EFDB818C0410CFA3403"><enum>(E)</enum><text>the SEC’s hiring
authorities, workplace policies, and personal practices, including—</text>
<clause commented="no" id="HAA1F49299C3E4E9ABFCE8B950FE592A6"><enum>(i)</enum><text>whether there is a
need to further streamline hiring authorities for those who are not lawyers,
accountants, compliance examiners, or economists;</text>
</clause><clause commented="no" id="H07D357746DE1447F83C0DCCC54FD69D9"><enum>(ii)</enum><text>whether there is
a need for further pay reforms;</text>
</clause><clause commented="no" id="H871E638437F8434DA083839173770882"><enum>(iii)</enum><text display-inline="yes-display-inline">the diversity of skill sets of SEC
employees and whether the present skill set diversity efficiently and
effectively fosters the SEC’s mission of investor protection; and</text>
</clause><clause commented="no" id="H6A4F8DE434FC484BB644BD6537D5D0D7"><enum>(iv)</enum><text>the application
of civil service laws by the SEC;</text>
</clause></subparagraph><subparagraph commented="no" id="H8AE399CD7A8D4FED8ABB0D4B70BABFF0"><enum>(F)</enum><text>whether the SEC’s
oversight and reliance on self-regulatory organizations promotes efficient and
effective governance for the securities markets; and</text>
</subparagraph><subparagraph commented="no" id="H2F115906984B4A03ABF7D3B57FC12E56"><enum>(G)</enum><text display-inline="yes-display-inline">whether adjusting the SEC’s reliance on
self-regulatory organizations is necessary to promote more efficient and
effective governance for the securities markets.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HEBF322F86E934888A1DB61AB03CB6774"><enum>(b)</enum><header>Consultant
report</header><text>Not later than the end of the 150-day period after being
retained, the independent consultant hired pursuant to subsection (a)(1) shall
issue a report to the SEC and the Congress containing—</text>
<paragraph commented="no" id="HF5C8D23CB0694B7A8126D2199F3565F5"><enum>(1)</enum><text display-inline="yes-display-inline">a detailed description of any findings and
conclusions made while carrying out the study required under subsection (a)(1);
and</text>
</paragraph><paragraph commented="no" id="HA8C669A44C294DB9AB88986E47A9F9A0"><enum>(2)</enum><text>recommendations
for legislative, regulatory, or administrative action that the consultant
determines appropriate to enable the SEC and other entities on which the
consultant reports to perform their statutorily or otherwise mandated
missions.</text>
</paragraph></subsection><subsection commented="no" id="HF4E54ACA4FD94D2992AABFD63E97DEAA"><enum>(c)</enum><header>SEC
report</header><text>Not later than the end of the 6-month period beginning on
the date the consultant issues the report under subsection (b), and every
6-months thereafter during the 2-year period following the date on which the
consultant issues such report, the SEC 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 describing the SEC’s
implementation of the regulatory and administrative recommendations contained
in the consultant’s report.</text>
</subsection></section><section commented="no" id="HD72258D01B514EC9A3C646983A7BBEF8"><enum>968.</enum><header>Study on SEC
revolving door</header>
<subsection commented="no" id="H7626B8D78D9D41DF957FA36393014DD9"><enum>(a)</enum><header>Government
Accountability Office study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study that will—</text>
<paragraph commented="no" id="H2A529D58FCE64426AD155537F5BA3FB7"><enum>(1)</enum><text display-inline="yes-display-inline">review the number of employees who leave
the Securities and Exchange Commission to work for financial institutions
regulated by such Commission;</text>
</paragraph><paragraph commented="no" id="HB6F8B30CD1EC495E9A2B8AE358EBDE1B"><enum>(2)</enum><text>determine how many
employees who leave the Securities and Exchange Commission worked on cases that
involved financial institutions regulated by such Commission;</text>
</paragraph><paragraph commented="no" id="HFCEAA8A3A66B4883A10D45E97FC99C52"><enum>(3)</enum><text display-inline="yes-display-inline">review the length of time employees work
for the Securities and Exchange Commission before leaving to be employed by
financial institutions regulated by such Commission;</text>
</paragraph><paragraph commented="no" id="HEB6B2A7A242A4CC48F00CBC1F36AF1BC"><enum>(4)</enum><text display-inline="yes-display-inline">review existing internal controls and make
recommendations on strengthening such controls to ensure that employees of the
Securities and Exchange Commission who are later employed by financial
institutions did not assist such institutions in violating any rules or
regulations of the Commission during the course of their employment with such
Commission;</text>
</paragraph><paragraph commented="no" id="H279467A5F9B841F5A93F408079383E9F"><enum>(5)</enum><text display-inline="yes-display-inline">determine if greater post-employment
restrictions are necessary to prevent employees of the Securities and Exchange
Commission from being employed by financial institutions after employment with
such Commission;</text>
</paragraph><paragraph commented="no" id="HBFBA189580B54B06B274ED049D246C08"><enum>(6)</enum><text display-inline="yes-display-inline">determine if the volume of employees of the
Securities and Exchange Commission who are later employed by financial
institutions has led to inefficiencies in enforcement;</text>
</paragraph><paragraph commented="no" id="H8589FEE219B4496FB9747FBE30ED34DD"><enum>(7)</enum><text display-inline="yes-display-inline">determine if employees of the Securities
and Exchange Commission who are later employed by financial institutions
assisted such institutions in circumventing Federal rules and regulations while
employed by such Commission;</text>
</paragraph><paragraph commented="no" id="HE27E2C410A3E4416829DA15F8C83A557"><enum>(8)</enum><text display-inline="yes-display-inline">review any information that may address the
volume of employees of the Securities and Exchange Commission who are later
employed by financial institutions, and make recommendations to Congress;
and</text>
</paragraph><paragraph commented="no" id="H4ABCC59C1D854223ADC437C90588621B"><enum>(9)</enum><text>review other
additional issues as may be raised during the course of the study conducted
under this subsection.</text>
</paragraph></subsection><subsection commented="no" id="H5537C20ED65949C8B907F78EE2842977"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of the
enactment of this subtitle, the Comptroller General of the United States shall
submit to the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate a report
on the results of the study required by subsection (a).</text>
</subsection></section></subtitle><subtitle id="HAF87CDC9BD8D4A3ABA43F4FB2B29F973"><enum>G</enum><header>Strengthening
Corporate Governance</header>
<section id="HFA9BA6F4A7B1474E9530FC8725F2E610"><enum>971.</enum><header>Proxy
access</header>
<subsection id="HF49C7F482ACC464AB615A09223D59CF0"><enum>(a)</enum><header>Proxy
access</header><text>Section 14(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78n(a)) is amended—</text>
<paragraph id="HB784712020694FE79C6C1C4DC5D2E7B0"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> after <quote>(a)</quote>; and</text>
</paragraph><paragraph id="H1FFE78D68A0E41B6A9A9777F1DC2EA34"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2A831CE81AB54EDAA3D749761274584B" style="OLC">
<paragraph id="H79A50BE99216445E920904634D0DC154" indent="up1"><enum>(2)</enum><text>The rules and regulations prescribed
by the Commission under paragraph (1) may include—</text>
<subparagraph id="HDA56431F0F234CB585E724AC358D24B0"><enum>(A)</enum><text>a requirement that a solicitation of
proxy, consent, or authorization by (or on behalf of) an issuer include a
nominee submitted by a shareholder to serve on the board of directors of the
issuer; and</text>
</subparagraph><subparagraph id="H1A7B8F910B204D50953B198193C76561"><enum>(B)</enum><text>a requirement that an issuer follow a
certain procedure in relation to a solicitation described in subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1D4D25BE75A24BB19B2617B2A68ABCF2"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Commission may issue rules permitting
the use by a shareholder of proxy solicitation materials supplied by an issuer
of securities for the purpose of nominating individuals to membership on the
board of directors of the issuer, under such terms and conditions as the
Commission determines are in the interests of shareholders and for the
protection of investors.</text>
</subsection><subsection commented="no" id="H3597A0D93B9F4F82B2CEAE604FCA8D34"><enum>(c)</enum><header>Exemptions</header><text display-inline="yes-display-inline">The Commission may, by rule or order,
exempt an issuer or class of issuers from the requirement made by this section
or an amendment made by this section. In determining whether to make an
exemption under this subsection, the Commission shall take into account, among
other considerations, whether the requirement in the amendment made by
subsection (a) disproportionately burdens small issuers.</text>
</subsection></section><section commented="no" id="H8EADB5F591AF4716A45471C0215033BC"><enum>972.</enum><header>Disclosures
regarding chairman and CEO structures</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15 U.S.
C. 78a et seq.) is amended by inserting after section 14A, as added by this
title, the following:</text>
<quoted-block display-inline="no-display-inline" id="H975396F2E3594165AC2C16382F24EA2A" style="OLC">
<section commented="no" id="H4ECBEFA5FBC0484CA236414694CC4E62"><enum>14B.</enum><header>Corporate
governance</header><text display-inline="no-display-inline">Not later than 180
days after the date of enactment of this subsection, the Commission shall issue
rules that require an issuer to disclose in the annual proxy sent to investors
the reasons why the issuer has chosen—</text>
<paragraph commented="no" id="HFAC7EF02667B4C83B5F831BD2584D0BD"><enum>(1)</enum><text display-inline="yes-display-inline">the same person to serve as chairman of the
board of directors and chief executive officer (or in equivalent positions);
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H149BC38978364AFE99736C962BD19B94"><enum>(2)</enum><text display-inline="yes-display-inline">different individuals to serve as chairman
of the board of directors and chief executive officer (or in equivalent
positions of the
issuer).</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="H17F9A47DB84D42DD8DBBC8BB3DCC52F9"><enum>H</enum><header>Municipal
Securities</header>
<section id="H9FBCA88F365D4EFF9817D6349B17E809"><enum>975.</enum><header>Regulation of
municipal securities and changes to the board of the MSRB</header>
<subsection id="H9A0E3B8B2E394446A43B3EEB63DB08EA"><enum>(a)</enum><header>Registration of
municipal securities dealers and municipal advisors</header><text display-inline="yes-display-inline">Section 15B(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–4(a)) is amended—</text>
<paragraph id="HECEC113650F94D819A1302675058A57B"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H32F532BA0FCF49F4945D68E9BA512599"><enum>(A)</enum><text>by inserting
<quote>(A)</quote> after <quote>(1)</quote>; and</text>
</subparagraph><subparagraph id="H1849B2E8466141638B3465E304028AE8"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H72AA923FCA254846BD0FE094928B6BDE" style="OLC">
<subparagraph id="H41608726F18D4732AD8D73D5CC7B1FAB"><enum>(B)</enum><text>It shall be
unlawful for a municipal advisor to provide advice to or on behalf of a
municipal entity or obligated person with respect to municipal financial
products or the issuance of municipal securities, or to undertake a
solicitation of a municipal entity or obligated person, unless the municipal
advisor is registered in accordance with this
subsection.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H433D78785270400BA3B23C2FB5D924B5"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>or municipal advisor</quote> after <quote>municipal
securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="HBE70B88AC94646E488765974551BFCC2"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>or municipal advisor</quote> after <quote>municipal
securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="HFD1CB27201EC4168B68FBAC42A86A037"><enum>(4)</enum><text>in paragraph (4),
by striking <quote>dealer, or municipal securities dealer or class of brokers,
dealers, or municipal securities dealers</quote> and inserting <quote>dealer,
municipal securities dealer, or municipal advisor, or class of brokers,
dealers, municipal securities dealers, or municipal advisors</quote>;
and</text>
</paragraph><paragraph id="H22978748BC2D47039F21A2616F051702"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCE447629217749FAB042C0BB37582E10" style="OLC">
<paragraph id="HA759F8B9ED1E456990DD57F030450276"><enum>(5)</enum><text>No municipal
advisor shall make use of the mails or any means or instrumentality of
interstate commerce to provide advice to or on behalf of a municipal entity or
obligated person with respect to municipal financial products, the issuance of
municipal securities, or to undertake a solicitation of a municipal entity or
obligated person, in connection with which such municipal advisor engages in
any fraudulent, deceptive, or manipulative act or
practice.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2322B7684D0649E58627DD11D2B42121"><enum>(b)</enum><header>Municipal
Securities Rulemaking Board</header><text>Section 15B(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o–4(b)) is amended—</text>
<paragraph id="HE8AB4C9D694C42DB8D537ECFE1320296"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H29120D2038A74BD490A9E33C30912756"><enum>(A)</enum><text>in the first
sentence, by striking <quote>Not later than</quote> and all that follows
through <quote>appointed by the Commission</quote> and inserting <quote>The
Municipal Securities Rulemaking Board shall be composed of 15 members, or such
other number of members as specified by rules of the Board pursuant to
paragraph (2)(B),</quote>;</text>
</subparagraph><subparagraph id="HBE90E28B49084D20BB5BBC3E01ECA27F"><enum>(B)</enum><text>by striking the
second sentence and inserting the following: <quote>The members of the Board
shall serve as members for a term of 3 years or for such other terms as
specified by rules of the Board pursuant to paragraph (2)(B), and shall consist
of (A) 8 individuals who are independent of any municipal securities broker,
municipal securities dealer, or municipal advisor, at least 1 of whom shall be
representative of institutional or retail investors in municipal securities, at
least 1 of whom shall be representative of municipal entities, and at least 1
of whom shall be a member of the public with knowledge of or experience in the
municipal industry (which members are hereinafter referred to as <quote>public
representatives</quote>); and (B) 7 individuals who are associated with a
broker, dealer, municipal securities dealer, or municipal advisor, including at
least 1 individual who is associated with and representative of brokers,
dealers, or municipal securities dealers that are not banks or subsidiaries or
departments or divisions of banks (which members are hereinafter referred to as
<quote>broker-dealer representatives</quote>), at least 1 individual who is
associated with and representative of municipal securities dealers which are
banks or subsidiaries or departments or divisions of banks (which members are
hereinafter referred to as <quote>bank representatives</quote>), and at least 1
individual who is associated with a municipal advisor (which members are
hereinafter referred to as ‘advisor representatives’ and, together with the
broker-dealer representatives and the bank representatives, are referred to as
‘regulated representatives’). Each member of the board shall be knowledgeable
of matters related to the municipal securities markets.</quote>; and</text>
</subparagraph><subparagraph id="HF9C695EC93134F1ABEA2681A5397FC98"><enum>(C)</enum><text>in the third
sentence, by striking <quote>initial</quote>;</text>
</subparagraph></paragraph><paragraph id="HB40B6273BA5C46AC9BD7B46D597E2447"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H9D0C43860E4C48B5A3E6FE9FA99857F0"><enum>(A)</enum><text>in the matter
preceding subparagraph (A)—</text>
<clause id="HD37E3470440C45FCADBF5064EB4E2864"><enum>(i)</enum><text>by
inserting before the period at the end of the first sentence the following:
<quote>and advice provided to or on behalf of municipal entities or obligated
persons by brokers, dealers, municipal securities dealers, and municipal
advisors with respect to municipal financial products, the issuance of
municipal securities, and solicitations of municipal entities or obligated
persons undertaken by brokers, dealers, municipal securities dealers, and
municipal advisors</quote>; and</text>
</clause><clause id="H0BD8BFFE29F848B7A88AF642F742F795"><enum>(ii)</enum><text>by
striking the second sentence;</text>
</clause></subparagraph><subparagraph commented="no" id="HDC4F23FAC8C84A85AE9B045B671DDF62"><enum>(B)</enum><text>in subparagraph
(A)—</text>
<clause commented="no" id="HC5942008F80542DFB7F0A06DD44E443E"><enum>(i)</enum><text>in the matter
preceding clause (i)—</text>
<subclause commented="no" id="H1A8E114173A64150B8B8E8737BD52CCE"><enum>(I)</enum><text>by inserting
<quote>, and no broker, dealer, municipal securities dealer, or municipal
advisor shall provide advice to or on behalf of a municipal entity or obligated
person with respect to municipal financial products or the issuance of
municipal securities,</quote> after <quote>sale of, any municipal
security</quote>; and</text>
</subclause><subclause commented="no" id="HD1E95ACD307D48A5AA0858C874143E24"><enum>(II)</enum><text>by inserting
<quote>and municipal entities or obligated persons</quote> after
<quote>protection of investors</quote>;</text>
</subclause></clause><clause commented="no" id="H22809BC9061C4872A2AB631B063418AB"><enum>(ii)</enum><text>in clause (i), by
striking <quote>municipal securities brokers and municipal securities
dealers</quote> each place that term appears and inserting <quote>municipal
securities brokers, municipal securities dealers, and municipal
advisors</quote>;</text>
</clause><clause commented="no" id="HA581DA38E1384202A1D1820D765181C8"><enum>(iii)</enum><text>in clause (ii),
by adding <quote>and</quote> at the end;</text>
</clause><clause commented="no" id="HFAB2527B3942406C8250A9B5FA69460B"><enum>(iv)</enum><text>in clause (iii),
by striking <quote>; and</quote> and inserting a period; and</text>
</clause><clause commented="no" id="H2E1ACE31B7784AF8890E277A9CB59BAE"><enum>(v)</enum><text>by striking clause
(iv);</text>
</clause></subparagraph><subparagraph commented="no" id="H23D34F979A124698AD7601A2F979F049"><enum>(C)</enum><text display-inline="yes-display-inline">by amending subparagraph (B) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H64218DDB9D224EE1B884492D18EABBDA" style="OLC">
<subparagraph commented="no" id="H3527634E0D084F648FB416BDAAD12C93" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">establish fair procedures for the
nomination and election of members of the Board and assure fair representation
in such nominations and elections of public representatives, broker dealer
representatives, bank representatives, and advisor representatives. Such
rules—</text>
<clause commented="no" id="H19C54D66ECD8479D86C4AD9C5E3BD396"><enum>(i)</enum><text display-inline="yes-display-inline">shall provide that the number of public
representatives of the Board shall at all times exceed the total number of
regulated representatives and that the membership shall at all times be as
evenly divided in number as possible between public representatives and
regulated representatives;</text>
</clause><clause commented="no" id="H851283ADCDF54D44A5AA8F1F4DAA335F"><enum>(ii)</enum><text display-inline="yes-display-inline">shall specify the length or lengths of
terms members shall serve;</text>
</clause><clause commented="no" id="H7286C15044E644339D06DA370D9B0D1F"><enum>(iii)</enum><text>may increase the number of
members which shall constitute the whole Board, provided that such number is an
odd number; and</text>
</clause><clause commented="no" id="H6C7DD308FDF642DA8A36720EF2E4EB76"><enum>(iv)</enum><text>shall establish requirements
regarding the independence of public
representatives.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H78E4D597362443278CA6D87A35FE402C"><enum>(D)</enum><text>in subparagraph
(C)—</text>
<clause commented="no" id="HE1655796CB4A4706B661B7112326E493"><enum>(i)</enum><text>by inserting
<quote>and municipal financial products</quote> after <quote>municipal
securities</quote> the first two times that term appears;</text>
</clause><clause commented="no" id="H8D9F8E8DA0744B00AA92CC6A2D684059"><enum>(ii)</enum><text>by inserting
<quote>, municipal entities, obligated persons,</quote> before <quote>and the
public interest</quote>;</text>
</clause><clause commented="no" id="HCD3A86E8234C4C458B0E596AB605572C"><enum>(iii)</enum><text>by striking
<quote>between</quote> and inserting <quote>among</quote>;</text>
</clause><clause commented="no" id="H5E402043E35E4DA6B62408F0F81E281C"><enum>(iv)</enum><text>by striking
<quote>issuers, municipal securities brokers, or municipal securities dealers,
to fix</quote> and inserting <quote>municipal entities, obligated persons,
municipal securities brokers, municipal securities dealers, or municipal
advisors, to fix</quote>; and</text>
</clause><clause id="H11DC8C7B409F494286F9FDD21A92D385"><enum>(v)</enum><text>by
striking <quote>brokers or municipal securities dealers, to regulate</quote>
and inserting <quote>brokers, municipal securities dealers, or municipal
advisors, to regulate</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H3332B8F682594A29897D4B416E50105A"><enum>(E)</enum><text>in subparagraph
(D)—</text>
<clause commented="no" id="H376F16B0EE1449C7BF344C565D1A4E93"><enum>(i)</enum><text>by inserting
<quote>and advice concerning municipal financial products</quote> after
<quote>transactions in municipal securities</quote>;</text>
</clause><clause commented="no" id="HA23B25997C824286A69393D7F2168356"><enum>(ii)</enum><text>by striking
<quote>That no</quote> and inserting <quote>that no</quote>;</text>
</clause><clause commented="no" id="HF75AA337734B431EA89FC5BA05F1F28D"><enum>(iii)</enum><text>by inserting
<quote>municipal advisor,</quote> before <quote>or person associated</quote>;
and</text>
</clause><clause commented="no" id="H9781B32756654913A605B8EFDAE44E3C"><enum>(iv)</enum><text>by striking
<quote>a municipal securities broker or municipal securities dealer may be
compelled</quote> and inserting <quote>a municipal securities broker, municipal
securities dealer, or municipal advisor may be compelled</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H1D75164F84C84F57B0065312F9ED11AF"><enum>(F)</enum><text>in subparagraph
(E)—</text>
<clause commented="no" id="H5C7395C5437948B181934C87C179B87C"><enum>(i)</enum><text>by striking
<quote>municipal securities brokers and municipal securities dealers</quote>
and inserting <quote>municipal securities brokers, municipal securities
dealers, and municipal advisors</quote>; and</text>
</clause><clause commented="no" id="H21036867A90249C087450C7302606157"><enum>(ii)</enum><text>by striking
<quote>municipal securities broker or municipal securities dealer</quote> and
inserting <quote>municipal securities broker, municipal securities dealer, or
municipal advisor</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="HB15072E7370848C78F4E4FBD01C87F78"><enum>(G)</enum><text>in subparagraph
(G), by striking <quote>municipal securities brokers and municipal securities
dealers</quote> and inserting <quote>municipal securities brokers, municipal
securities dealers, and municipal advisors</quote>;</text>
</subparagraph><subparagraph commented="no" id="H5F9BEF2F0F3643B7995CB5BD64E6EB60"><enum>(H)</enum><text>in subparagraph
(J)—</text>
<clause commented="no" id="HE1EF0F99BE384E26A617639296922E60"><enum>(i)</enum><text>by striking
<quote>municipal securities broker and each municipal securities dealer</quote>
and inserting <quote>municipal securities broker, municipal securities dealer,
and municipal advisor</quote>; and</text>
</clause><clause commented="no" id="H33AEB8C056564D028AAA8213D60AA966"><enum>(ii)</enum><text>by striking the
period at the end of the second sentence and inserting <quote>, which may
include charges for failure to submit to the Board, or to any information
system operated by the Board, within the prescribed timeframes, any items of
information or documents required to be submitted under any rule issued by the
Board.</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H3F822BC3F7FB4DD596678E4523DC2315"><enum>(I)</enum><text>in subparagraph
(K)—</text>
<clause commented="no" id="H89919B80C46E427493855C08D4EB9E20"><enum>(i)</enum><text>by inserting
<quote>broker, dealer, or </quote> before <quote>municipal securities
dealer</quote> each place that term appears; and</text>
</clause><clause commented="no" id="H3148A047B2144ABD91E986ED90C50F1D"><enum>(ii)</enum><text>by striking
<quote>municipal securities investment portfolio</quote> and inserting
<quote>related account of a broker, dealer, or municipal securities
dealer</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="H20B05AE4F45C440DB9591C56732CD9F3"><enum>(J)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H84F822B36BDD4C47AFA85D7E497017C7" style="OLC">
<subparagraph commented="no" id="HBC8BFADD275E4673A817DB3A2AB14940"><enum>(L)</enum><text display-inline="yes-display-inline">with respect to municipal advisors—</text>
<clause commented="no" id="H437FFF53E3BB41DC91C25063675CA012"><enum>(i)</enum><text>prescribe means
reasonably designed to prevent acts, practices, and courses of business as are
not consistent with a municipal advisor’s fiduciary duty to its clients;</text>
</clause><clause commented="no" id="HC6F979BE913E441290729FCCB3B0010D"><enum>(ii)</enum><text>provide
continuing education requirements for municipal advisors;</text>
</clause><clause commented="no" id="H1264900E42984322BBFA6116E17EE31B"><enum>(iii)</enum><text>provide
professional standards; and</text>
</clause><clause commented="no" id="H07F2A4D61FC140DF871B795B56185058"><enum>(iv)</enum><text>not impose a
regulatory burden on small municipal advisors that is not necessary or
appropriate in the public interest and for the protection of investors,
municipal entities, and obligated persons, provided that there is robust
protection of investors against
fraud.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HF0625A35C43D4C398F988F6184662BD0"><enum>(3)</enum><text>by redesignating
paragraph (3) as paragraph (7); and</text>
</paragraph><paragraph commented="no" id="H8E0CF0DFF7CC4249835D1B4D8620A845"><enum>(4)</enum><text>by inserting after
paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="HEC0E0BDDC8E84D1A958A3E1D116B63D5" style="OLC">
<paragraph id="HE2DF0FAE97364BAB9BCA9A1DC4DE4842"><enum>(3)</enum><text>The Board, in
conjunction with or on behalf of any Federal financial regulator or
self-regulatory organization, may—</text>
<subparagraph id="HC66CCAE989E34AFCABB227E380B758B9"><enum>(A)</enum><text>establish
information systems; and</text>
</subparagraph><subparagraph id="H27B71326D0E64E808D3C3515179A89F4"><enum>(B)</enum><text>assess such
reasonable fees and charges for the submission of information to, or the
receipt of information from, such systems from any persons which systems may be
developed for the purposes of serving as a repository of information from
municipal market participants or otherwise in furtherance of the purposes of
the Board, a Federal financial regulator, or a self-regulatory organization,
except that the Board—</text>
<clause id="H68B29489CBFA40599776216807D169F2"><enum>(i)</enum><text>may not charge a
fee to municipal entities or obligated persons to submit documents or other
information to the Board or charge a fee to any person to obtain, directly from
the Internet site of the Board, documents or information submitted by municipal
entities, obligated persons, brokers, dealers, municipal securities dealers, or
municipal advisors, including documents submitted under the rules of the Board
or the Commission; and</text>
</clause><clause id="HD9013F1573734662A469F82006D9E0C4"><enum>(ii)</enum><text>shall not be
prohibited from charging commercially reasonable fees for automated
subscription-based feeds or similar services, or for charging for other data or
document-based services customized upon request of any person, made available
to commercial enterprises, municipal securities market professionals, or the
general public, whether delivered through the Internet or any other means, that
contain all or part of the documents or information, subject to approval of the
fees by the Commission under section 19(b).</text>
</clause></subparagraph></paragraph><paragraph id="H988850126F49457DA1B1577F81E9F327"><enum>(4)</enum><text>The Board may
provide guidance and assistance in the enforcement of, and examination for,
compliance with the rules of the Board to the Commission, a registered
securities association under section 15A, or any other appropriate regulatory
agency, as applicable.</text>
</paragraph><paragraph id="H2FA3578106A34129A209949B48CA66C2"><enum>(5)</enum><text>The Board, the
Commission, and a registered securities association under section 15A, or the
designees of the Board, the Commission, or such association, shall meet not
less frequently than 2 times a year—</text>
<subparagraph id="HE77FD1060710442ABB459156E5025B9D"><enum>(A)</enum><text>to describe the
work of the Board, the Commission, and the registered securities association
involving the regulation of municipal securities; and</text>
</subparagraph><subparagraph id="HC080A0B31AE24926A6E397B60145D56E"><enum>(B)</enum><text>to share
information about—</text>
<clause id="H2522985603954CE88F95C02AE501EA82"><enum>(i)</enum><text>the interpretation
of the Board, the Commission, and the registered securities association of
Board rules; and</text>
</clause><clause id="H2CD88574EA0343B598032E187316235C"><enum>(ii)</enum><text>examination and
enforcement of compliance with Board
rules.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H159F2A9F4608400D98BC06EE87A5F700"><enum>(c)</enum><header>Discipline of
brokers, dealers, municipal securities dealers and municipal advisors;
fiduciary duty of municipal advisors</header><text>Section 15B(c) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–4(c)) is amended—</text>
<paragraph id="H508FC368518D4AC7BD3D46E15470DA56"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>, and no broker, dealer, municipal securities dealer, or
municipal advisor shall make use of the mails or any means or instrumentality
of interstate commerce to provide advice to or on behalf of a municipal entity
or obligated person with respect to municipal financial products, the issuance
of municipal securities, or to undertake a solicitation of a municipal entity
or obligated person,</quote> after <quote>any municipal
security</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6EC7088CE78B48089DEA4B84A89894CC"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end of paragraph (1) the
following: <quote>A municipal advisor and any person associated with such
municipal advisor shall be deemed to have a fiduciary duty to any municipal
entity for whom such municipal advisor acts as a municipal advisor, and no
municipal advisor may engage in any act, practice, or course of business which
is not consistent with a municipal advisor’s fiduciary duty or that is in
contravention of any rule of the Board.</quote>.</text>
</paragraph><paragraph id="HD7FC13AA59C04F07AFD4FFE313C17DD0"><enum>(3)</enum><text>in paragraph (2),
by inserting <quote>or municipal advisor</quote> after <quote>municipal
securities dealer</quote> each place that term appears;</text>
</paragraph><paragraph id="HA8BDCBB5F50D49D48FE2E122F41BD086"><enum>(4)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H6390C2E371454D42B1702D3D9F5F8AE3"><enum>(A)</enum><text>by inserting
<quote>or municipal entities or obligated person</quote> after
<quote>protection of investors</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="H31CBFED118C04F41B7BB612B0F72CBFE"><enum>(B)</enum><text>by inserting
<quote>or municipal advisor</quote> after <quote>municipal securities
dealer</quote> each place that term appears;</text>
</subparagraph></paragraph><paragraph id="HA8C18FA2F2E344E6A8A4C7DF031DBCB8"><enum>(5)</enum><text>in paragraph (4),
by inserting <quote>or municipal advisor</quote> after <quote>municipal
securities dealer or obligated person</quote> each place that term
appears;</text>
</paragraph><paragraph id="HD4205AD3D3344B869010E26C80C5048C"><enum>(6)</enum><text>in paragraph
(6)(B), by inserting <quote>or municipal entities or obligated person</quote>
after <quote>protection of investors</quote>;</text>
</paragraph><paragraph id="H89B4039E764D49878E4C0CEB19CFB77F"><enum>(7)</enum><text>in paragraph
(7)—</text>
<subparagraph id="HC03020A8D8D9479F97AACD06D1433C37"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="H6657A6F11B8C49B79D5E030F9725B050"><enum>(i)</enum><text>in
clause (i), by striking <quote>; and</quote> and inserting a semicolon;</text>
</clause><clause id="HD4CF2B443A344B0D8B41E3393527E7A6"><enum>(ii)</enum><text>in
clause (ii), by striking the period and inserting <quote>; and</quote>;
and</text>
</clause><clause id="H58FE42D29B4245C5A50F19C7B9D2E1D9"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9686AEF367B644BAB8D9F36E755F27EF" style="OLC">
<clause id="HF15000337C774435A185D1E7D7EDB9D3"><enum>(iii)</enum><text>the Commission,
or its designee, in the case of municipal
advisors.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HC596DFD0855C46A997821374ABBF0059"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>or municipal entities or obligated person</quote>
after <quote>protection of investors</quote>; and</text>
</subparagraph></paragraph><paragraph id="H2FCAF5004D1C4512A6C07689130252C2"><enum>(8)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEBE5C1C4F0B54BDF882D67F53975DAE8" style="OLC">
<paragraph id="H3DCCA6CEA9C74319BF0AF8D09B830F99"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1881E220C1044050BBF432395F250D51"><enum>(A)</enum><text>Fines collected by the
Commission for violations of the rules of the Board shall be equally divided
between the Commission and the Board.</text>
</subparagraph><subparagraph id="H2C0AA2AA671847A1A29FB288A2E14C55" indent="up1"><enum>(B)</enum><text>Fines collected by a registered
securities association under section 15A(7) with respect to violations of the
rules of the Board shall be accounted for by such registered securities
association separately from other fines collected under section 15A(7) and
shall be allocated between such registered securities association and the
Board, and such allocation shall require the registered securities association
to pay to the Board <fraction>1/3</fraction> of all fines collected by the
registered securities association reasonably allocable to violations of the
rules of the Board, or such other portion of such fines as may be directed by
the Commission upon agreement between the registered securities association and
the
Board.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDF078619DD40409D9FBB8BBB75E8397F"><enum>(d)</enum><header>Issuance of
municipal securities</header><text>Section 15B(d)(2) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–4(d)) is amended—</text>
<paragraph id="HC08FD478956E409FB1007BE0760A2BEB"><enum>(1)</enum><text>by striking
<quote>through a municipal securities broker or municipal securities dealer or
otherwise</quote> and inserting <quote>through a municipal securities broker,
municipal securities dealer, municipal advisor, or otherwise</quote>;
and</text>
</paragraph><paragraph id="HB001E09AC82B4BA9AFEB08CB5BCA9A9B"><enum>(2)</enum><text>by inserting
<quote>or municipal advisors</quote> before <quote>to furnish</quote>.</text>
</paragraph></subsection><subsection id="H0887BEC4FF7A45DFB0152182AFE5EDB7"><enum>(e)</enum><header>Definitions</header><text>Section
15B of the Securities Exchange Act of 1934 (15 U.S.C. 78o–4) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2D3088F58DC34FE7BBE71DAD3F131A1A" style="OLC">
<subsection id="H67D6E00060D64FD3BE1F48BD3354E9A7"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HFD63FF08209B45BB8BAF4EDF5ECBD612"><enum>(1)</enum><text>the term
<term>Board</term> means the Municipal Securities Rulemaking Board established
under subsection (b)(1);</text>
</paragraph><paragraph id="HAD8AD792E7C645C1949F7302E63FD2A5"><enum>(2)</enum><text>the term
<term>guaranteed investment contract</term> includes any investment that has
specified withdrawal or reinvestment provisions and a specifically negotiated
or bid interest rate, and also includes any agreement to supply investments on
2 or more future dates, such as a forward supply contract;</text>
</paragraph><paragraph id="HF48D64BCA77F4DAF9BA6C65182EB03C8"><enum>(3)</enum><text>the term
<term>investment strategies</term> includes plans or programs for the
investment of the proceeds of municipal securities that are not municipal
derivatives, guaranteed investment contracts, and the recommendation of and
brokerage of municipal escrow investments;</text>
</paragraph><paragraph id="H3A58D03EBAF645CB8B284BED78096E44"><enum>(4)</enum><text>the term
<term>municipal advisor</term>—</text>
<subparagraph id="H35FBED1EFE5445A492D2162AA3623955"><enum>(A)</enum><text>means a person
(who is not a municipal entity or an employee of a municipal entity)
that—</text>
<clause id="HFEF30243BA79456A98CC3EADAB053B09"><enum>(i)</enum><text>provides advice to
or on behalf of a municipal entity or obligated person with respect to
municipal financial products or the issuance of municipal securities, including
advice with respect to the structure, timing, terms, and other similar matters
concerning such financial products or issues; or</text>
</clause><clause commented="no" id="H878081EB1ED24E91BD7239304C721BA0"><enum>(ii)</enum><text>undertakes a
solicitation of a municipal entity;</text>
</clause></subparagraph><subparagraph commented="no" id="H995C976577DD4FA9B5FF2C3C75E7F6A9"><enum>(B)</enum><text>includes financial
advisors, guaranteed investment contract brokers, third-party marketers,
placement agents, solicitors, finders, and swap advisors, if such persons are
described in any of clauses (i) through (iii) of subparagraph (A); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0B2962D18E194316B3125836E90E301A"><enum>(C)</enum><text>does not include a
broker, dealer, or municipal securities dealer serving as an underwriter (as
defined in section 2(a)(11) of the Securities Act of 1933) (15 U.S.C.
77b(a)(11)), any investment adviser registered under the Investment Advisers
Act of 1940, or persons associated with such investment advisers who are
providing investment advice, any commodity trading advisor registered under the
Commodity Exchange Act or persons associated with a commodity trading advisor
who are providing advice related to swaps, attorneys offering legal advice or
providing services that are of a traditional legal nature, or engineers
providing engineering advice;</text>
</subparagraph></paragraph><paragraph id="H10DBEB264F764EF68D5C3D4BE568A83E"><enum>(5)</enum><text>the term
<term>municipal financial product</term> means municipal derivatives,
guaranteed investment contracts, and investment strategies;</text>
</paragraph><paragraph id="H0FC53A4452DC4939931E1D5E08C8D3E7"><enum>(6)</enum><text>the term
<term>rules of the Board</term> means the rules proposed and adopted by the
Board under subsection (b)(2);</text>
</paragraph><paragraph id="H877E71ED20854BBF9BD8E11F73F191DA"><enum>(7)</enum><text>the term
<term>person associated with a municipal advisor</term> or <term>associated
person of an advisor</term> means—</text>
<subparagraph id="H91DE121EDFB1408D88E29291E7CB744F"><enum>(A)</enum><text>any partner,
officer, director, or branch manager of such municipal advisor (or any person
occupying a similar status or performing similar functions);</text>
</subparagraph><subparagraph id="H2EFE6CFA613749349AAE3CCD5C483841"><enum>(B)</enum><text>any other employee
of such municipal advisor who is engaged in the management, direction,
supervision, or performance of any activities relating to the provision of
advice to or on behalf of a municipal entity or obligated person with respect
to municipal financial products or the issuance of municipal securities;
and</text>
</subparagraph><subparagraph id="H4268BC516F47461280DC6B59AA59372F"><enum>(C)</enum><text>any person
directly or indirectly controlling, controlled by, or under common control with
such municipal advisor;</text>
</subparagraph></paragraph><paragraph id="H3E06A0AC99334D5AB0CC894BE3BC0FF1"><enum>(8)</enum><text>the term
<term>municipal entity</term> means any State, political subdivision of a
State, or municipal corporate instrumentality of a State, including—</text>
<subparagraph id="HF2CD7A87004A41BEB2F169EE68A91780"><enum>(A)</enum><text>any agency,
authority, or instrumentality of the State, political subdivision, or municipal
corporate instrumentality;</text>
</subparagraph><subparagraph id="HEBE6CFCEEC0549CD9A444E388095C0D2"><enum>(B)</enum><text>any plan, program,
or pool of assets sponsored or established by the State, political subdivision,
or municipal corporate instrumentality or any agency, authority, or
instrumentality thereof; and</text>
</subparagraph><subparagraph id="HCC6BD89C3BC3469CA940A1E810D89C0B"><enum>(C)</enum><text>any other issuer
of municipal securities;</text>
</subparagraph></paragraph><paragraph id="HE87735BDDF864DBDACDE9808BF30E626"><enum>(9)</enum><text>the term
<term>solicitation of a municipal entity or obligated person</term> means a
direct or indirect communication with a municipal entity or obligated person
made by a person, for direct or indirect compensation, on behalf of a broker,
dealer, municipal securities dealer, municipal advisor, or investment adviser
(as defined in section 202 of the Investment Advisers Act of 1940) that does
not control, is not controlled by, or is not under common control with the
person undertaking such solicitation for the purpose of obtaining or retaining
an engagement by a municipal entity or obligated person of a broker, dealer,
municipal securities dealer, or municipal advisor for or in connection with
municipal financial products, the issuance of municipal securities, or of an
investment adviser to provide investment advisory services to or on behalf of a
municipal entity; and</text>
</paragraph><paragraph id="HDA70B85E21DA41179FF809521E610A6C"><enum>(10)</enum><text>the term
<term>obligated person</term> means any person, including an issuer of
municipal securities, who is either generally or through an enterprise, fund,
or account of such person, committed by contract or other arrangement to
support the payment of all or part of the obligations on the municipal
securities to be sold in an offering of municipal
securities.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0D81B0C5B96B4CFFBC265B2042F45AA4"><enum>(f)</enum><header>Registered
securities association</header><text>Section 15A(b) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–3(b)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HE9164954D8E44D9F8888DF0AFCF2FF05" style="OLC">
<paragraph id="H17800394CB50479EA8DC80E1C19A542A"><enum>(15)</enum><text>The rules of the
association provide that the association shall—</text>
<subparagraph id="H424A93EA95644CE4A4A0EE7D173352F7"><enum>(A)</enum><text>request guidance
from the Municipal Securities Rulemaking Board in interpretation of the rules
of the Municipal Securities Rulemaking Board; and</text>
</subparagraph><subparagraph id="HEA16CD5E5A5046A4B14256399AA7C470"><enum>(B)</enum><text>provide
information to the Municipal Securities Rulemaking Board about the enforcement
actions and examinations of the association under section 15B(b)(2)(E), so that
the Municipal Securities Rulemaking Board may—</text>
<clause id="H8BED560139FE42218F6D5E3B30A7432C"><enum>(i)</enum><text>assist in such
enforcement actions and examinations; and</text>
</clause><clause id="H362A2A363C6940F489DA8E618C501EBF"><enum>(ii)</enum><text>evaluate the
ongoing effectiveness of the rules of the
Board.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF017F55BDCFE4DF28A59552342FC0013"><enum>(g)</enum><header>Registration and
regulation of brokers and dealers</header><text>Section 15 of the Securities
Exchange Act of 1934 is amended—</text>
<paragraph id="HB6146C10B3EF40738DC7523FF5DE20A8"><enum>(1)</enum><text>in subsection
(b)(4), by inserting <quote>municipal advisor,</quote> after <quote>municipal
securities dealer</quote> each place that term appears; and</text>
</paragraph><paragraph id="H6E05A280EEBC479EA2C69018EDC0CE45"><enum>(2)</enum><text>in subsection (c),
by inserting <quote>broker, dealer, or</quote> before <term>municipal
securities dealer</term> each place that term appears.</text>
</paragraph></subsection><subsection id="H13268A5F33F649489C77D96CC10DE191"><enum>(h)</enum><header>Accounts and
records, reports, examinations of exchanges, members, and
others</header><text>Section 17(a)(1) of the Securities Exchange Act of 1934 is
amended by inserting <quote>municipal advisor,</quote> after <quote>municipal
securities dealer</quote>.</text>
</subsection><subsection id="H1F78DDBF5EB54BB6AB645D77A67B28B4"><enum>(i)</enum><header>Effective
date</header><text>This section, and the amendments made by this section, shall
take effect on October 1, 2010.</text>
</subsection></section><section id="HABE5707056984E9DB56743AB8A07DD21"><enum>976.</enum><header>Government
Accountability Office study of increased disclosure to investors</header>
<subsection id="H42685448EF07478B910B838723F97EF9"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study and review of
the disclosure required to be made by issuers of municipal securities.</text>
</subsection><subsection id="HABE854303040477C8F3FCBF98CD14EEB"><enum>(b)</enum><header>Subjects for
evaluation</header><text>In conducting the study under subsection (a), the
Comptroller General of the United States shall—</text>
<paragraph id="H5BAA570A3AE44BE899DA3368EC6394DB"><enum>(1)</enum><text>broadly
describe—</text>
<subparagraph id="HF1C7455A67CD4DA99C948A62956AE31C"><enum>(A)</enum><text>the size of the
municipal securities markets and the issuers and investors; and</text>
</subparagraph><subparagraph id="H4984A116CBE9447290795C2E2B8E3663"><enum>(B)</enum><text>the disclosures
provided by issuers to investors;</text>
</subparagraph></paragraph><paragraph id="H5887336397EE4D7899687F5A32CF9945"><enum>(2)</enum><text>compare the
amount, frequency, and quality of disclosures that issuers of municipal
securities are required by law to provide for the benefit of municipal
securities holders, including the amount of and frequency of disclosures
actually provided by issuers of municipal securities, with the amount of and
frequency of disclosures that issuers of corporate securities provide for the
benefit of corporate securities holders, taking into account the differences
between issuers of municipal securities and issuers of corporate
securities;</text>
</paragraph><paragraph id="HA65832FDF80348B98C1BFECB2357FE2D"><enum>(3)</enum><text>evaluate the costs
and benefits to various types of issuers of municipal securities of requiring
issuers of municipal bonds to provide additional financial disclosures for the
benefit of investors;</text>
</paragraph><paragraph id="HA505EA9EA2214F2FA3A5492DF8DAB7DD"><enum>(4)</enum><text>evaluate the
potential benefit to investors from additional financial disclosures by issuers
of municipal bonds; and</text>
</paragraph><paragraph id="HECC7A72C51594AE1A4B086D77D149FCD"><enum>(5)</enum><text>make
recommendations relating to disclosure requirements for municipal issuers,
including the advisability of the repeal or retention of section 15B(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o–4(d)) (commonly known as the
<quote>Tower Amendment</quote>).</text>
</paragraph></subsection><subsection id="H8B465F1891E34AB8BFA81B1D4E05A1DD"><enum>(c)</enum><header>Report</header><text>Not
later than 24 months after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report to Congress on the results
of the study conducted under subsection (a), including recommendations for how
to improve disclosure by issuers of municipal securities.</text>
</subsection></section><section id="HED3EB022829B4FD7A10D450D8B59CE92"><enum>977.</enum><header>Government
Accountability Office study on the municipal securities markets</header>
<subsection id="H2BDEE60D3D9049448B1F58B5E5541634"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study of the municipal
securities markets.</text>
</subsection><subsection id="H25097AD4A9C148C391CFD5360B8AC3B1"><enum>(b)</enum><header>Report</header><text>Not
later than 18 months after the date of enactment of this Act, the Comptroller
General of the United States shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee on Financial
Services of the House of Representatives, with copies to the Special Committee
on Aging of the Senate and the Commission, on the results of the study
conducted under subsection (a), including—</text>
<paragraph commented="no" id="H86A5382788C140DBABAB97A52BC761AC"><enum>(1)</enum><text>an analysis of the
mechanisms for trading, quality of trade executions, market transparency, trade
reporting, price discovery, settlement clearing, and credit
enhancements;</text>
</paragraph><paragraph id="HF75452053D574CAB8AA63F6DB561F097"><enum>(2)</enum><text>the needs of the
markets and investors and the impact of recent innovations;</text>
</paragraph><paragraph id="H5B7205FE36794F7B8D12C80CD31A9127"><enum>(3)</enum><text>recommendations
for how to improve the transparency, efficiency, fairness, and liquidity of
trading in the municipal securities markets, including with reference to items
listed in paragraph (1); and</text>
</paragraph><paragraph id="H218FF96668034F1F82774F9197F2EB9D"><enum>(4)</enum><text>potential uses of
derivatives in the municipal securities markets.</text>
</paragraph></subsection><subsection id="H18B55BD50195444EBD33BCEBE8EFE02D"><enum>(c)</enum><header>Responses</header><text>Not
later than 180 days after receipt of the report required under subsection (b),
the Commission shall submit a response to the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the Committee on Financial Services of the
House of Representatives, with a copy to the Special Committee on Aging of the
Senate, stating the actions the Commission has taken in response to the
recommendations contained in such report.</text>
</subsection></section><section commented="no" id="H7ECB21CC408948C2A30B4C7427F89905"><enum>978.</enum><header>Funding for
Governmental Accounting Standards Board</header>
<subsection commented="no" id="H2BCBF92C14824388951F519EED468BB6"><enum>(a)</enum><header>Amendment to the
Securities Act of 1933</header><text>Section 19 of the Securities Act of 1933
(15 U.S.C. 77s), as amended by section 912, is further amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2BA18A36D81C4976A45F1E14A7E6EE84" style="OLC">
<subsection commented="no" id="H4E3DB78EA7A44B7EB0C457A9A739C539"><enum>(g)</enum><header>Funding for the
GASB</header>
<paragraph commented="no" id="H862944640F3B4EA5B2113F5356D18091"><enum>(1)</enum><header>In
general</header><text>The Commission may, subject to the limitations imposed by
section 15B of the Securities Exchange Act of 1934 (15 U.S.C. 78o–4), require a
national securities association registered under the Securities Exchange Act of
1934 to establish—</text>
<subparagraph commented="no" id="H804B951787E0419AA5E64655A35095CD"><enum>(A)</enum><text>a reasonable
annual accounting support fee to adequately fund the annual budget of the
Governmental Accounting Standards Board (referred to in this subsection as the
<quote>GASB</quote>); and</text>
</subparagraph><subparagraph commented="no" id="H1F6AC036E53740D9979A745DBA995179"><enum>(B)</enum><text>rules and
procedures, in consultation with the principal organizations representing State
governors, legislators, local elected officials, and State and local finance
officers, to provide for the equitable allocation, assessment, and collection
of the accounting support fee established under subparagraph (A) from the
members of the association, and the remittance of all such accounting support
fees to the Financial Accounting Foundation.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB9DA0529B56646A09DB39127765A2623"><enum>(2)</enum><header>Annual
budget</header><text>For purposes of this subsection, the annual budget of the
GASB is the annual budget reviewed and approved according to the internal
procedures of the Financial Accounting Foundation.</text>
</paragraph><paragraph commented="no" id="HAF6F6894555F40B087F891E0C94BBA5B"><enum>(3)</enum><header>Use of
funds</header><text>Any fees or funds collected under this subsection shall be
used to support the efforts of the GASB to establish standards of financial
accounting and reporting recognized as generally accepted accounting principles
applicable to State and local governments of the United States.</text>
</paragraph><paragraph commented="no" id="H9D54235CEFAB4A3999FFC97AAD36452F"><enum>(4)</enum><header>Limitation on
fee</header><text>The annual accounting support fees collected under this
subsection for a fiscal year shall not exceed the recoverable annual budgeted
expenses of the GASB (which may include operating expenses, capital, and
accrued items).</text>
</paragraph><paragraph commented="no" id="H63A733364D324316BA2E6A41907D3409"><enum>(5)</enum><header>Rules of
construction</header>
<subparagraph commented="no" id="HDAA8AC0F30A04582A34AB5643705E06E"><enum>(A)</enum><header>Fees not public
monies</header><text>Accounting support fees collected under this subsection
and other receipts of the GASB shall not be considered public monies of the
United States.</text>
</subparagraph><subparagraph commented="no" id="H6E23FCCCAEE047B4A99ADF9C3A9075A9"><enum>(B)</enum><header>Limitation on
authority of the Commission</header><text>Nothing in this subsection shall be
construed to—</text>
<clause commented="no" id="HAEC9945CFF4341A2A3A26137EB1E7F0B"><enum>(i)</enum><text>provide the
Commission or any national securities association direct or indirect oversight
of the budget or technical agenda of the GASB; or</text>
</clause><clause commented="no" id="HEC72806CA4744D7B9502C97760AD0559"><enum>(ii)</enum><text>affect the
setting of generally accepted accounting principles by the GASB.</text>
</clause></subparagraph><subparagraph commented="no" id="H6E61FBBB889C4AD7A88F5B6B1A298C7A"><enum>(C)</enum><header>Noninterference
with States</header><text>Nothing in this subsection shall be construed to
impair or limit the authority of a State or local government to establish
accounting and financial reporting
standards.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HF140592ABEA34D6B95F1D899E2726F32"><enum>(b)</enum><header>Study of funding
for Governmental Accounting Standards Board</header>
<paragraph commented="no" id="H500135B54BCB4BDCBFBAF5CD331AB62D"><enum>(1)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study that
evaluates—</text>
<subparagraph commented="no" id="H9B165D7C542544429A7840F6739DDB5F"><enum>(A)</enum><text>the role and
importance of the Governmental Accounting Standards Board in the municipal
securities markets; and</text>
</subparagraph><subparagraph commented="no" id="HD7D2857D175849809573FDBEAF60F7AD"><enum>(B)</enum><text>the manner and the
level at which the Governmental Accounting Standards Board has been
funded.</text>
</subparagraph></paragraph><paragraph commented="no" id="H5380A725CEA04FF6A61E5DEA5E7E6775"><enum>(2)</enum><header>Consultation</header><text>In
conducting the study required under paragraph (1), the Comptroller General
shall consult with the principal organizations representing State governors,
legislators, local elected officials, and State and local finance
officers.</text>
</paragraph><paragraph commented="no" id="H29B15BE847904F6C918C72550791B758"><enum>(3)</enum><header>Report</header><text>Not
later than 180 days after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the study required under paragraph (1).</text>
</paragraph></subsection></section><section id="HA49456D600C24F1F85719B62BFC85DE4"><enum>979.</enum><header>Commission
Office of Municipal Securities</header>
<subsection id="H37E8550541D9488CA20858B6509B02B4"><enum>(a)</enum><header>In
general</header><text>There shall be in the Commission an Office of Municipal
Securities, which shall—</text>
<paragraph id="HA892C91A4A5F4781A3E7192F3A483D0B"><enum>(1)</enum><text>administer the
rules of the Commission with respect to the practices of municipal securities
brokers and dealers, municipal securities advisors, municipal securities
investors, and municipal securities issuers; and</text>
</paragraph><paragraph id="HE52321E6B5B947BCBF1B5EB4B1CC5DF5"><enum>(2)</enum><text>coordinate with
the Municipal Securities Rulemaking Board for rulemaking and enforcement
actions as required by law.</text>
</paragraph></subsection><subsection id="HFE92F0F091744022BDD6379D93B186A7"><enum>(b)</enum><header>Director of the
Office</header><text>The head of the Office of Municipal Securities shall be
the Director, who shall report to the Chairman.</text>
</subsection><subsection id="H6EE629F728194A69892B2164C4E58E49"><enum>(c)</enum><header>Staffing</header>
<paragraph id="HD82D72D0A5014E208EED7D151F79F7A1"><enum>(1)</enum><header>In
general</header><text>The Office of Municipal Securities shall be staffed
sufficiently to carry out the requirements of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86B3319973B644D2B5E1882562B6FCED"><enum>(2)</enum><header>Requirement</header><text>The
staff of the Office of Municipal Securities shall include individuals with
knowledge of and expertise in municipal finance.</text>
</paragraph></subsection></section></subtitle><subtitle id="HEFD15E6319E247F3953907E4817F8859"><enum>I</enum><header>Public Company
Accounting Oversight Board, portfolio margining, and other matters</header>
<section id="HDE0FFBACF4BA495381AA76AD9BFDC7C8"><enum>981.</enum><header>Authority to
share certain information with foreign authorities</header>
<subsection id="H194FE6DEBB834D0D918F07B73260ECE4"><enum>(a)</enum><header>Definition</header><text display-inline="yes-display-inline">Section 2(a) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7201(a)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H43C1180AB9D547318A8D54B21105EA9A" style="OLC">
<paragraph id="H8828D72932C34FAB8030B717B3BBEA4C"><enum>(17)</enum><header>Foreign auditor
oversight authority</header><text display-inline="yes-display-inline">The term
<term>foreign auditor oversight authority</term> means any governmental body or
other entity empowered by a foreign government to conduct inspections of public
accounting firms or otherwise to administer or enforce laws related to the
regulation of public accounting
firms.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA9DFAC649DA441CFA07EDB8277264266"><enum>(b)</enum><header>Availability to
Share information</header><text>Section 105(b)(5) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7215(b)(5)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3F270189F09842379791F12C7FD6F010" style="OLC">
<subparagraph id="H3AB01D71488C4EAA85F6C07959513380"><enum>(C)</enum><header>Availability to
foreign oversight authorities</header><text display-inline="yes-display-inline">Without the loss of its status as
confidential and privileged in the hands of the Board, all information referred
to in subparagraph (A) that relates to a public accounting firm that a foreign
government has empowered a foreign auditor oversight authority to inspect or
otherwise enforce laws with respect to, may, at the discretion of the Board, be
made available to the foreign auditor oversight authority, if—</text>
<clause id="H495AE884B38B43488CC26E8F7893DAC7"><enum>(i)</enum><text display-inline="yes-display-inline">the Board finds that it is necessary to
accomplish the purposes of this Act or to protect investors;</text>
</clause><clause id="H02B307C5D45743D5BF16FEB1EEC35242"><enum>(ii)</enum><text display-inline="yes-display-inline">the foreign auditor oversight authority
provides—</text>
<subclause id="HE977D356BD4A475DB4AF2FD1E825C585"><enum>(I)</enum><text display-inline="yes-display-inline">such assurances of confidentiality as the
Board may request;</text>
</subclause><subclause id="H06EED7FB671243F29E08D18563DEA485"><enum>(II)</enum><text>a description of
the applicable information systems and controls of the foreign auditor
oversight authority; and</text>
</subclause><subclause id="HF76CA9C57ACC47B2A288C566F9FE6ED3"><enum>(III)</enum><text>a description of
the laws and regulations of the foreign government of the foreign auditor
oversight authority that are relevant to information access; and</text>
</subclause></clause><clause id="H2DD395AC3FC24CA9BDD32B696BBCF76B"><enum>(iii)</enum><text display-inline="yes-display-inline">the Board determines that it is appropriate
to share such
information.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2E3FCEE5C2A647C08FF97EB9AE4C828F"><enum>(c)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section
105(b)(5)(A) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(A)) is
amended by striking <quote>subparagraph (B)</quote> and inserting
<quote>subparagraphs (B) and (C)</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA45F796AC2744E61AF680F254E8B1990"><enum>982.</enum><header>Oversight of
brokers and dealers</header>
<subsection id="HE12BF77D394644F99606F829B6E1ED33"><enum>(a)</enum><header>Definitions</header>
<paragraph id="HFD9D72C49A124B91803521F085697428"><enum>(1)</enum><header>Definitions
amended</header><text display-inline="yes-display-inline">Title I of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.) is amended by adding at the
end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H7AEAC960949E44E7A8551CA21E2E0980" style="OLC">
<section id="H7414F33F0D7A46CEB857A284142155CB"><enum>110.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this title, the
following definitions shall apply:</text>
<paragraph id="H54760A80AAC8498586E4DF3817BD6985"><enum>(1)</enum><header>Audit</header><text display-inline="yes-display-inline">The term <term>audit</term> means an
examination of the financial statements, reports, documents, procedures,
controls, or notices of any issuer, broker, or dealer by an independent public
accounting firm in accordance with the rules of the Board or the Commission,
for the purpose of expressing an opinion on the financial statements or
providing an audit report.</text>
</paragraph><paragraph id="H9EADB5C49B5746FEA77A9EB5CDAEC1A7"><enum>(2)</enum><header>Audit
report</header><text display-inline="yes-display-inline">The term <term>audit
report</term> means a document, report, notice, or other record—</text>
<subparagraph id="HC1647DBBBEBB48C6842013CC8FB29B73"><enum>(A)</enum><text>prepared following
an audit performed for purposes of compliance by an issuer, broker, or dealer
with the requirements of the securities laws; and</text>
</subparagraph><subparagraph id="H1E90AC60DE404A66B6BD38361ECAB5E5"><enum>(B)</enum><text>in which a public
accounting firm either—</text>
<clause id="HFE1E82AEB22643408BE06D6FC34D97D0"><enum>(i)</enum><text>sets forth the
opinion of that firm regarding a financial statement, report, notice, or other
document, procedures, or controls; or</text>
</clause><clause id="H3401A3850BD84D8187872F202CF58F9B"><enum>(ii)</enum><text>asserts that no
such opinion can be expressed.</text>
</clause></subparagraph></paragraph><paragraph id="HAC8E43A0131649F9AADB97269C2916F1"><enum>(3)</enum><header>Broker</header><text display-inline="yes-display-inline">The term <term>broker</term> means a broker
(as such term is defined in section 3(a)(4) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(4))) that is required to file a balance sheet, income
statement, or other financial statement under section 17(e)(1)(A) of such Act
(15 U.S.C. 78q(e)(1)(A)), where such balance sheet, income statement, or
financial statement is required to be certified by a registered public
accounting firm.</text>
</paragraph><paragraph id="H3C931EBF105549FCB838FDA8E12264AA"><enum>(4)</enum><header>Dealer</header><text display-inline="yes-display-inline">The term <term>dealer</term> means a dealer
(as such term is defined in section 3(a)(5) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(5))) that is required to file a balance sheet, income
statement, or other financial statement under section 17(e)(1)(A) of such Act
(15 U.S.C. 78q(e)(1)(A)), where such balance sheet, income statement, or
financial statement is required to be certified by a registered public
accounting firm.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H29AE4A8BCA054838AD6EB10A9E64FED8"><enum>(5)</enum><header>Professional
standards</header><text>The term <term>professional standards</term>
means—</text>
<subparagraph id="HABCE7CB48D8A4AA6A69158E9C5FD0E6B"><enum>(A)</enum><text>accounting
principles that are—</text>
<clause id="H07E35F99DB384B2C848C073351064932"><enum>(i)</enum><text>established by the
standard setting body described in section 19(b) of the Securities Act of 1933,
as amended by this Act, or prescribed by the Commission under section 19(a) of
that Act (15 U.S.C. 17a(s)) or section 13(b) of the Securities Exchange Act of
1934 (15 U.S.C. 78a(m)); and</text>
</clause><clause id="H99900A90B59F429896B88426771DB096"><enum>(ii)</enum><text>relevant to audit
reports for particular issuers, brokers, or dealers, or dealt with in the
quality control system of a particular registered public accounting firm;
and</text>
</clause></subparagraph><subparagraph id="H39D6AA3FE33E4989A7D64BE9E01E025A"><enum>(B)</enum><text>auditing
standards, standards for attestation engagements, quality control policies and
procedures, ethical and competency standards, and independence standards
(including rules implementing title II) that the Board or the Commission
determines—</text>
<clause id="H43A6F92994444FF2A7BE201295578C4F"><enum>(i)</enum><text>relate to the
preparation or issuance of audit reports for issuers, brokers, or dealers;
and</text>
</clause><clause id="HBBF53A55DB744D3A99DD94D56FD7C6A0"><enum>(ii)</enum><text>are established
or adopted by the Board under section 103(a), or are promulgated as rules of
the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="HC79C89D2B9E04740AD3B7EA7E831884A"><enum>(6)</enum><header>Self-regulatory
organization</header><text display-inline="yes-display-inline">The term
<term>self-regulatory organization</term> has the same meaning as in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5DA34D8209344492A06DF67C36B67620"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 2(a) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7201(a)) is amended in the matter preceding paragraph (1), by striking
<quote>In this</quote> and inserting <quote>Except as otherwise specifically
provided in this Act, in this</quote>.</text>
</paragraph></subsection><subsection id="HD19EA34C396843D8BF752E9072ABA04E"><enum>(b)</enum><header>Establishment
and Administration of the Public Company Accounting Oversight
Board</header><text>Section 101 of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7211) is amended—</text>
<paragraph id="HF178191945BC4FFFA22FCD6AD6A80648"><enum>(1)</enum><text>by striking
<quote>issuers</quote> each place that term appears and inserting
<quote>issuers, brokers, and dealers</quote>; and</text>
</paragraph><paragraph id="HDEF409359CA14A33829000432161E897"><enum>(2)</enum><text>in subsection
(a)—</text>
<subparagraph id="H4EC780B573DF4A93A63ABC470D64553E"><enum>(A)</enum><text>by striking
<quote>public companies</quote> and inserting <quote>companies</quote>;
and</text>
</subparagraph><subparagraph id="H611B498132944457849941BDC596743E"><enum>(B)</enum><text>by striking
<quote>for companies the securities of which are sold to, and held by and for,
public investors</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HE94AAE5AF31C4FCEBB1780C645B79689"><enum>(c)</enum><header>Registration
with the Board</header><text display-inline="yes-display-inline">Section 102 of
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7212) is amended—</text>
<paragraph id="H2A2ED7480ADF40AF8B2550A327D84F06"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H48C33C0F920741808254D46C777C2158"><enum>(A)</enum><text>by striking
<quote>Beginning 180</quote> and all that follows through <quote>101(d),
it</quote> and inserting <quote>It</quote>; and</text>
</subparagraph><subparagraph id="HF705080B9C594C3D8E0FC3789926695F"><enum>(B)</enum><text>by striking
<quote>issuer</quote> and inserting <quote>issuer, broker, or
dealer</quote>;</text>
</subparagraph></paragraph><paragraph id="HCE16E1ABB3BA42A88CD1C9F8C83633A5"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H71BA7EF23F5D42318672808803DEC178"><enum>(A)</enum><text>in paragraph
(2)(A), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, and dealers</quote>; and</text>
</subparagraph><subparagraph id="HD4F6855CA7A249F297716B2C56BEC260"><enum>(B)</enum><text>by striking
<quote>issuer</quote> each place that term appears and inserting <quote>issuer,
broker, or dealer</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H2F27D87ABF6B448E94724F9549BF4647"><enum>(d)</enum><header>Auditing and
independence</header><text>Section 103(a) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7213(a)) is amended—</text>
<paragraph id="H9C3DFE5B93D048999553A552916B462F"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>and such ethics standards</quote> and inserting <quote>such
ethics standards, and such independence standards</quote>;</text>
</paragraph><paragraph id="H101E5843487F48B892B4DF9A16920D9F"><enum>(2)</enum><text>in paragraph
(2)(A)(iii), by striking <quote>describe in each audit report</quote> and
inserting <quote>in each audit report for an issuer, describe</quote>;
and</text>
</paragraph><paragraph id="H26DBB0756F3E4C629CA02D54D2739E35"><enum>(3)</enum><text>in paragraph
(2)(B)(i), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, and dealers</quote>.</text>
</paragraph></subsection><subsection id="H6A6904B05464417B841F74A92AC98FDD"><enum>(e)</enum><header>Inspections of
registered public accounting firms</header>
<paragraph commented="no" id="H275CE403EC9745778B2F3D3AF1B8C151"><enum>(1)</enum><header>Amendments</header><text>Section
104(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214(a)) is amended—</text>
<subparagraph commented="no" id="H5A788DA1C6654128B6F771FEB295E3B5"><enum>(A)</enum><text>by striking
<quote>The Board shall</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HBDEE8F53E37D4A05AADD046FA58BF8C0" style="OLC">
<paragraph commented="no" id="H2440EE6E7067469882F0EAF590A2F0E6"><enum>(1)</enum><header>Inspections
generally</header><text>The Board shall</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H6D4D0D74947343E88B04D96342B2FAE7"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H067AFDEC56834A27B4EB4BB2E522F139" style="OLC">
<paragraph commented="no" id="H63D22BA8D8A04A16B295EE1DB114278A"><enum>(2)</enum><header>Inspections of
audit reports for brokers and dealers</header>
<subparagraph commented="no" id="H89D30C4354904CACAB7C11F8668E2990"><enum>(A)</enum><text>The Board may, by
rule, conduct and require a program of inspection in accordance with paragraph
(1), on a basis to be determined by the Board, of registered public accounting
firms that provide one or more audit reports for a broker or dealer. The Board,
in establishing such a program, may allow for differentiation among classes of
brokers and dealers, as appropriate.</text>
</subparagraph><subparagraph commented="no" id="H20E511EEBF624F6DA4080991EA8A5B31"><enum>(B)</enum><text>If the Board
determines to establish a program of inspection pursuant to subparagraph (A),
the Board shall consider in establishing any inspection schedules whether
differing schedules would be appropriate with respect to registered public
accounting firms that issue audit reports only for one or more brokers or
dealers that do not receive, handle, or hold customer securities or cash or are
not a member of the Securities Investor Protection Corporation.</text>
</subparagraph><subparagraph commented="no" id="H2D0AAA93F27A47C8B98FD21C910D7B41"><enum>(C)</enum><text>Any rules of the
Board pursuant to this paragraph shall be subject to prior approval by the
Commission pursuant to section 107(b) before the rules become effective,
including an opportunity for public notice and comment.</text>
</subparagraph><subparagraph commented="no" id="H9100E64BD513477E9948BBF025F843E2"><enum>(D)</enum><text>Notwithstanding
anything to the contrary in section 102 of this Act, a public accounting firm
shall not be required to register with the Board if the public accounting firm
is exempt from the inspection program which may be established by the Board
under subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H70D77B214EF84E97A17E252A37A63971"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 17(e)(1)(A) of the Securities Exchange Act of
1934 (15 U.S.C. 78q(e)(1)(A)) is amended by striking <quote>registered public
accounting firm</quote> and inserting <quote>independent public accounting
firm, or by a registered public accounting firm if the firm is required to be
registered under the Sarbanes-Oxley Act of 2002,</quote>.</text>
</paragraph></subsection><subsection id="H1BEF282E210C418C9C08B2B9196450ED"><enum>(f)</enum><header>Investigations
and disciplinary proceedings</header><text>Section 105(c)(7)(B) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(7)(B)) is amended—</text>
<paragraph id="H02195C023BA34DF3AC0853424FC4CC38"><enum>(1)</enum><text>in the
subparagraph heading, by inserting <quote><header-in-text level="subparagraph" style="OLC">, broker, or dealer</header-in-text></quote> after
<quote><header-in-text level="subparagraph" style="OLC">issuer</header-in-text></quote>;</text>
</paragraph><paragraph id="H496B4B43D6E247F1A02452E1F3D54BDD"><enum>(2)</enum><text>by striking
<quote>any issuer</quote> each place that term appears and inserting <quote>any
issuer, broker, or dealer</quote>; and</text>
</paragraph><paragraph id="H34BCBF210595406587582A798049D2AE"><enum>(3)</enum><text>by striking
<quote>an issuer under this subsection</quote> and inserting <quote>a
registered public accounting firm under this subsection</quote>.</text>
</paragraph></subsection><subsection id="HA1808E8948F244559694193335BE889B"><enum>(g)</enum><header>Foreign public
accounting firms</header><text>Section 106(a) of the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7216(a)) is amended—</text>
<paragraph id="H0D74C3B43A0F45E39E343F6DBE374CD1"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>issuer</quote> and inserting <quote>issuer, broker, or
dealer</quote>; and</text>
</paragraph><paragraph id="HA811B1D27CEE4FB6822658DD7B269145"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>issuers</quote> and inserting <quote>issuers, brokers, or
dealers</quote>.</text>
</paragraph></subsection><subsection id="H136EF3E98CE2445A87D8611EBA000A7A"><enum>(h)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 109 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7219) is amended—</text>
<paragraph display-inline="no-display-inline" id="H5D5BD25AB8654F7988251FAEDC7B407D"><enum>(1)</enum><text>in subsection
(c)(2), by striking <quote>subsection (i)</quote> and inserting
<quote>subsection (j)</quote>;</text>
</paragraph><paragraph id="H908BF5017CE54E13B1F98A117801E080"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="HE1C2413734514B08BA8BB9003E1AA8B3"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>allowing for differentiation among classes of issuers, as
appropriate</quote> and inserting <quote>and among brokers and dealers, in
accordance with subsection (h), and allowing for differentiation among classes
of issuers, brokers and dealers, as appropriate</quote>; and</text>
</subparagraph><subparagraph id="H7319A195624C4E03A0F7209EAF47DA7C"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC3A93E78C42344E588179539422FC221" style="OLC">
<paragraph id="H82286C1B923240819C50E60AB62A57DD"><enum>(3)</enum><header>Brokers and
dealers</header><text display-inline="yes-display-inline">The Board shall begin
the allocation, assessment, and collection of fees under paragraph (2) with
respect to brokers and dealers with the payment of support fees to fund the
first full fiscal year beginning after the date of enactment of the Investor
Protection and Securities Reform Act of
2010.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0809859F8289448EAB762FFAF3EE59D0"><enum>(3)</enum><text>by redesignating
subsections (h), (i), and (j) as subsections (i), (j), and (k), respectively;
and</text>
</paragraph><paragraph id="H7C7FAF76FEF14A329AB0FAF45D9206D8"><enum>(4)</enum><text>by inserting after
subsection (g) the following:</text>
<quoted-block display-inline="no-display-inline" id="H3C2E6AC5CAA34C0AAD9B1DFBBAF4DAC9" style="OLC">
<subsection id="HE3F40A10840840B3A85EC481084BF8E8"><enum>(h)</enum><header>Allocation of
accounting support fees among brokers and dealers</header>
<paragraph id="H8E5EFA1262E649A0842D10CC45364F44"><enum>(1)</enum><header>Obligation to
pay</header><text display-inline="yes-display-inline">Each broker or dealer
shall pay to the Board the annual accounting support fee allocated to such
broker or dealer under this section.</text>
</paragraph><paragraph id="H69312FFA97D94BDB9FDE9D6E59515AE2"><enum>(2)</enum><header>Allocation</header><text>Any
amount due from a broker or dealer (or from a particular class of brokers and
dealers) under this section shall be allocated among brokers and dealers and
payable by the broker or dealer (or the brokers and dealers in the particular
class, as applicable).</text>
</paragraph><paragraph id="H5E3B4AC9EFBA4BAEB6B705C85436F00C"><enum>(3)</enum><header>Proportionality</header><text display-inline="yes-display-inline">The amount due from a broker or dealer
shall be in proportion to the net capital of the broker or dealer (before or
after any adjustments), compared to the total net capital of all brokers and
dealers (before or after any adjustments), in accordance with rules issued by
the
Board.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H346502F5522F486AAC35E5274B1681FA"><enum>(i)</enum><header>Referral of
investigations to a self-regulatory organization</header><text>Section
105(b)(4)(B) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(4)(B)) is
amended—</text>
<paragraph id="HA2441F0C0C4543BF94EB5A28A3F3FD2C"><enum>(1)</enum><text>by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and</text>
</paragraph><paragraph id="HAAC8D2B52C9240AF90B489D07C28E5A9"><enum>(2)</enum><text>by inserting after
clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA4B099241F8E471CAB604A63BED58D5D" style="OLC">
<clause id="HB210C4AA376E438FBD1DA1816F852ACB"><enum>(ii)</enum><text display-inline="yes-display-inline">to a self-regulatory organization, in the
case of an investigation that concerns an audit report for a broker or dealer
that is under the jurisdiction of such self-regulatory
organization;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H33B9F85A2C6F4B4E97545D170B0A3046"><enum>(j)</enum><header>Use of documents
related to an inspection or investigation</header><text>Section
105(b)(5)(B)(ii) of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7215(b)(5)(B)(ii)) is amended—</text>
<paragraph id="HFF690CA3880B4C06B252FF7AD555E54D"><enum>(1)</enum><text>in subclause
(III), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H9EA1991A5DC64793B192A36E08437AA6"><enum>(2)</enum><text>in subclause (IV),
by striking the comma and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="HE82C8DE65E1B4820A55EE1E7EBC2F5CA"><enum>(3)</enum><text>by inserting after
subclause (IV) the following:</text>
<quoted-block display-inline="no-display-inline" id="H64251640CD7D4D6DBF18614286CECCCC" style="OLC">
<subclause id="H5A9A054AA1D04E99BCFEBAD07BA3434E"><enum>(V)</enum><text display-inline="yes-display-inline">a self-regulatory organization, with
respect to an audit report for a broker or dealer that is under the
jurisdiction of such self-regulatory
organization,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H52314467C7AE47D280E181B1C61C3FF4"><enum>983.</enum><header>Portfolio
margining</header>
<subsection commented="no" display-inline="no-display-inline" id="H2F01C9D58BC04B0EA35CAA35D8BD10DA"><enum>(a)</enum><header>Advances</header><text display-inline="yes-display-inline">Section 9(a)(1) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff3(a)(1)) is amended by inserting
<quote>or options on commodity futures contracts</quote> after <quote>claim for
securities</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H567D9F6E9B094F55A99C28DE6AD3765B"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 16 of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78lll) is amended—</text>
<paragraph id="H5B83B5917BC34B5B94220A6AF604222D"><enum>(1)</enum><text>by striking
paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H11C1073BC88A4E38BD791BF19DAA5BC5" style="OLC">
<paragraph id="HD34CA7C8E54A4DF98314DBAC0CDB3D06"><enum>(2)</enum><header>Customer</header>
<subparagraph id="H815082C4410740828247F86A9B81ED17"><enum>(A)</enum><header>In
general</header><text>The term <term>customer</term> of a debtor means any
person (including any person with whom the debtor deals as principal or agent)
who has a claim on account of securities received, acquired, or held by the
debtor in the ordinary course of its business as a broker or dealer from or for
the securities accounts of such person for safekeeping, with a view to sale, to
cover consummated sales, pursuant to purchases, as collateral, security, or for
purposes of effecting transfer.</text>
</subparagraph><subparagraph id="H8103224C152F4BD6AF042E22E9730C09"><enum>(B)</enum><header>Included
persons</header><text>The term <term>customer</term> includes—</text>
<clause id="HFEEFAFF0ED8546FEA659378FFC352F8F"><enum>(i)</enum><text>any person who has
deposited cash with the debtor for the purpose of purchasing securities;</text>
</clause><clause id="HBFD23B40FC1E4DB7AA6E76AB8C72B4D6"><enum>(ii)</enum><text display-inline="yes-display-inline">any person who has a claim against the
debtor for cash, securities, futures contracts, or options on futures contracts
received, acquired, or held in a portfolio margining account carried as a
securities account pursuant to a portfolio margining program approved by the
Commission; and</text>
</clause><clause id="H3F7C2C551787405CB4A3B3C06EA0C88B"><enum>(iii)</enum><text>any person who
has a claim against the debtor arising out of sales or conversions of such
securities.</text>
</clause></subparagraph><subparagraph id="HCAD3D16A8C3842D2833AB953792B8462"><enum>(C)</enum><header>Excluded
persons</header><text>The term <term>customer</term> does not include any
person, to the extent that—</text>
<clause id="HFDAE43DEF09144EB8508F2A168249D7B"><enum>(i)</enum><text>the claim of such
person arises out of transactions with a foreign subsidiary of a member of
SIPC; or</text>
</clause><clause id="H25BAE52BEEAB4843B815CD83FFF71A6B"><enum>(ii)</enum><text>such person has a
claim for cash or securities which by contract, agreement, or understanding, or
by operation of law, is part of the capital of the debtor, or is subordinated
to the claims of any or all creditors of the debtor, notwithstanding that some
ground exists for declaring such contract, agreement, or understanding void or
voidable in a suit between the claimant and the
debtor.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H709FE1C871B14BA887594D003A8CCC3E"><enum>(2)</enum><text>in paragraph
(4)—</text>
<subparagraph id="H7F0801EDE8C44BCC823FCBAFA7DCB9CF"><enum>(A)</enum><text>in subparagraph
(C), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HB03D3414353A4F06B9D33CC88D71DF86"><enum>(B)</enum><text>by redesignating
subparagraph (D) as subparagraph (E); and</text>
</subparagraph><subparagraph id="HB4FB17D5BF004E06A412E5193309AE4C"><enum>(C)</enum><text>by inserting after
subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0297BE25183E4EB9AC6DBFDD8904437C" style="OLC">
<subparagraph id="HE7B72FFEB7B84D2F85CC63A0E3E3CF4B"><enum>(D)</enum><text>in the case of a
portfolio margining account of a customer that is carried as a securities
account pursuant to a portfolio margining program approved by the Commission, a
futures contract or an option on a futures contract received, acquired, or held
by or for the account of a debtor from or for such portfolio margining account,
and the proceeds thereof;
and</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2526E359A25643F998E6BEA2AF48F773"><enum>(3)</enum><text>in paragraph (9),
in the matter following subparagraph (L), by inserting after <quote>Such
term</quote> the following: <quote>includes revenues earned by a broker or
dealer in connection with a transaction in the portfolio margining account of a
customer carried as securities accounts pursuant to a portfolio margining
program approved by the Commission. Such term</quote>; and</text>
</paragraph><paragraph id="H0C37061EFD9E43C9BB78B1A9A83B93DD"><enum>(4)</enum><text>in paragraph
(11)—</text>
<subparagraph id="H0891AD0913B748A5A868D36D952F3BFB"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="HF4443FC819B64D6F9096EF2A227E0D53"><enum>(i)</enum><text>by
striking <quote>filing date, all</quote> and all that follows through the end
of the subparagraph and inserting the following: “filing date—</text>
<quoted-block display-inline="no-display-inline" id="H4322259CDDA44666B621C8670FB37BFF" style="OLC">
<clause id="H77D5009F7155461FBD27AAD2E4E56FAC"><enum>(i)</enum><text>all securities
positions of such customer (other than customer name securities reclaimed by
such customer); and</text>
</clause><clause id="HB727776A4EF64E9E98AF7512DC29C9E1"><enum>(ii)</enum><text>all positions in
futures contracts and options on futures contracts held in a portfolio
margining account carried as a securities account pursuant to a portfolio
margining program approved by the Commission, including all property
collateralizing such positions, to the extent that such property is not
otherwise included herein; minus</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H40BE9E677C3E498998A5827ABC8C7263"><enum>(B)</enum><text>in the matter
following subparagraph (C), by striking <quote>In determining</quote> and
inserting the following: <quote>A claim for a commodity futures contract
received, acquired, or held in a portfolio margining account pursuant to a
portfolio margining program approved by the Commission or a claim for a
security futures contract, shall be deemed to be a claim with respect to such
contract as of the filing date, and such claim shall be treated as a claim for
cash. In determining</quote>.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H5D2BBA9D1DE041B0BBC765EF75C50321"><enum>984.</enum><header>Loan or
borrowing of securities</header>
<subsection commented="no" display-inline="no-display-inline" id="H4DB9500CCEE341F3813B65201F7867BE"><enum>(a)</enum><header>Rulemaking
authority</header><text display-inline="yes-display-inline">Section 10 of the
Securities Exchange Act of 1934 (15 U.S.C. 78j) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HADECF3930CEE429EAE016F5305EE43BB" style="OLC">
<subsection id="H3859BEF12BAC4C47A15982A4926BDC86" indent="down1"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H9A664A2569DB4B7AA8285259135C1CF3"><enum>(1)</enum><text>To effect, accept, or
facilitate a transaction involving the loan or borrowing of securities in
contravention of such rules and regulations as the Commission may prescribe as
necessary or appropriate in the public interest or for the protection of
investors.</text>
<subparagraph id="HD991CE058FB249EBAB1663D04A4406AB" indent="up2"><enum>(2)</enum><text>Nothing in paragraph (1) may be
construed to limit the authority of the appropriate Federal banking agency (as
defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q))), the National Credit Union Administration, or any other Federal
department or agency having a responsibility under Federal law to prescribe
rules or regulations restricting transactions involving the loan or borrowing
of securities in order to protect the safety and soundness of a financial
institution or to protect the financial system from systemic
risk.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H05D38FE796C34EA88CD1A907D71106EF"><enum>(b)</enum><header>Rulemaking
required</header><text>Not later than 2 years after the date of enactment of
this Act, the Commission shall promulgate rules that are designed to increase
the transparency of information available to brokers, dealers, and investors,
with respect to the loan or borrowing of securities.</text>
</subsection></section><section id="H673AF8B5898840329C02CB2FD9654B28"><enum>985.</enum><header>Technical
corrections to Federal securities laws</header>
<subsection id="H286D4FBA115E4A4985BB7B0B68F53C54"><enum>(a)</enum><header>Securities Act
of 1933</header><text display-inline="yes-display-inline">The Securities Act of
1933 (15 U.S.C. 77a et seq.) is amended—</text>
<paragraph id="H4CA759232DC54D94BD178A3AD3645665"><enum>(1)</enum><text>in section 3(a)(4)
(15 U.S.C. 77c(a)(4)), by striking <quote>individual;</quote> and inserting
<quote>individual,</quote>;</text>
</paragraph><paragraph id="H66C41CA9741149D1AF60552002EC8309"><enum>(2)</enum><text display-inline="yes-display-inline">in section 18 (15 U.S.C. 77r)—</text>
<subparagraph id="HF51EA5AC1C9B4E8782DFCF38C313EB5E"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(C), by striking
<quote>is a security</quote> and inserting <quote>a security</quote>;
and</text>
</subparagraph><subparagraph id="H8709442C44BF4E7F8BECCDA61BD7D85D"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c)(2)(B)(i), by striking
<quote>State, or</quote> and inserting <quote>State or</quote>;</text>
</subparagraph></paragraph><paragraph id="H6566143E10B148B1AD8BAC891BB37C89"><enum>(3)</enum><text display-inline="yes-display-inline">in section 19(d)(6)(A) (15 U.S.C.
77s(d)(6)(A)), by striking <quote>in paragraph (1) of (3)</quote> and inserting
<quote>in paragraph (1) or (3)</quote>; and</text>
</paragraph><paragraph id="H65A1C4A888E041A0A9675C8C5C27F311"><enum>(4)</enum><text display-inline="yes-display-inline">in section 27A(c)(1)(B)(ii) (15 U.S.C.
77z–2(c)(1)(B)(ii)), by striking <quote>business entity;</quote> and inserting
<quote>business entity,</quote>.</text>
</paragraph></subsection><subsection id="H4C3777ADEFD44544A0ACCF7E1F63532F"><enum>(b)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended—</text>
<paragraph id="H5706A4A9C38B4282BEDE65283828B0AF"><enum>(1)</enum><text>in section 2 (15
U.S.C. 78b), by striking <quote>affected</quote> and inserting
<quote>effected</quote>;</text>
</paragraph><paragraph id="H2261FE69CD144B37930136D19562B10F"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3 (15 U.S.C. 78c)—</text>
<subparagraph id="HD6C4CE2A7EBC400C895CE080989C77AB"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (a)(55)(A), by striking
<quote>section 3(a)(12) of the Securities Exchange Act of 1934</quote> and
inserting <quote>section 3(a)(12) of this title</quote>; and</text>
</subparagraph><subparagraph id="HDF82CB1489D2406186690CD660D1065D"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (g), by striking
<quote>company, account person, or entity</quote> and inserting <quote>company,
account, person, or entity</quote>;</text>
</subparagraph></paragraph><paragraph id="HF5996E19BBA9452E954A79C5F254ACA2"><enum>(3)</enum><text display-inline="yes-display-inline">in section 10A(i)(1)(B) (15 U.S.C.
78j–1(i)(1)(B))—</text>
<subparagraph id="HAC69A10392C544C89991FE872A260EB7"><enum>(A)</enum><text display-inline="yes-display-inline">in the subparagraph heading, by striking
<quote><header-in-text level="subparagraph" style="OLC">minimus</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">minimis</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="HC50CAD5B42234E77A564F160694004D4"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>nonaudit</quote> and inserting <quote>non-audit</quote>;</text>
</subparagraph></paragraph><paragraph id="H65B960D2F3A4467DAB793BD3028692F5"><enum>(4)</enum><text display-inline="yes-display-inline">in section 13(b)(1) (15 U.S.C. 78m(b)(1)),
by striking <quote>earning statement</quote> and inserting <quote>earnings
statement</quote>;</text>
</paragraph><paragraph id="H6DAEDE9F35634A0B9751735B7E9DBB78"><enum>(5)</enum><text display-inline="yes-display-inline">in section 15 (15 U.S.C. 78o)—</text>
<subparagraph id="HF9E86FA6A1834B60B18013ECDEB5E380"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (b)(1)—</text>
<clause id="H1318630633F848208A814EA8D5E04D8F"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>The order granting</quote> and all that
follows through <quote>from such membership.</quote>; and</text>
</clause><clause id="H01B5B2F517BE43488C031108D3C95672"><enum>(ii)</enum><text>in
the undesignated matter immediately following subparagraph (B), by inserting
after the first sentence the following: <quote>The order granting registration
shall not be effective until such broker or dealer has become a member of a
registered securities association, or until such broker or dealer has become a
member of a national securities exchange, if such broker or dealer effects
transactions solely on that exchange, unless the Commission has exempted such
broker or dealer, by rule or order, from such membership.</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H31CC4FA64FBA4FE99FAC12A5F85C2A16"><enum>(6)</enum><text display-inline="yes-display-inline">in section 15C(a)(2) (15 U.S.C.
78o–5(a)(2))—</text>
<subparagraph commented="no" id="HEFFC3CD549BF4EF2B86E01875E70454A"><enum>(A)</enum><text>by redesignating
clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and adjusting
the subparagraph margins accordingly;</text>
</subparagraph><subparagraph id="HBBD46CC81AAB492D9C998DC3B7828A83"><enum>(B)</enum><text>in subparagraph
(B), as so redesignated, by striking <quote>The order granting</quote> and all
that follows through <quote>from such membership.</quote>; and</text>
</subparagraph><subparagraph id="H4BF6D76A15B241788A1E9722F029D0F4"><enum>(C)</enum><text>in the matter
following subparagraph (B), as so redesignated, by inserting after the first
sentence the following: <quote>The order granting registration shall not be
effective until such government securities broker or government securities
dealer has become a member of a national securities exchange registered under
section 6 of this title, or a securities association registered under section
15A of this title, unless the Commission has exempted such government
securities broker or government securities dealer, by rule or order, from such
membership.</quote>;</text>
</subparagraph></paragraph><paragraph id="H4FAB6D5E555345088087A53AD6DED51B"><enum>(7)</enum><text display-inline="yes-display-inline">in section 17(b)(1)(B) (15 U.S.C.
78q(b)(1)(B)), by striking <quote>15A(k) gives</quote> and inserting
<quote>15A(k), give</quote>; and</text>
</paragraph><paragraph id="HE001DD304C414126BAE5CD2459CE3BBC"><enum>(8)</enum><text display-inline="yes-display-inline">in section 21C(c)(2) (15 U.S.C.
78u–3(c)(2)), by striking <quote>paragraph (1) subsection</quote> and inserting
<quote>Paragraph (1)</quote>.</text>
</paragraph></subsection><subsection id="HD68158392FAD47DFBB1DF0D0FF106BDA"><enum>(c)</enum><header>Trust Indenture
Act of 1939</header><text display-inline="yes-display-inline">The Trust
Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) is amended—</text>
<paragraph id="HC80E78F6529445A1975E3267C3511F46"><enum>(1)</enum><text display-inline="yes-display-inline">in section 304(b) (15 U.S.C. 77ddd(b)), by
striking <quote>section 2 of such Act</quote> and inserting <quote>section 2(a)
of such Act</quote>; and</text>
</paragraph><paragraph id="H553206BAECC64FFD958F38ED6CA6D1B0"><enum>(2)</enum><text display-inline="yes-display-inline">in section 317(a)(1) (15 U.S.C.
77qqq(a)(1)), by striking <quote>, in the</quote> and inserting <quote>in
the</quote>.</text>
</paragraph></subsection><subsection id="HF399B9380CB443A09474C853FF48C9FB"><enum>(d)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">The
Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended—</text>
<paragraph id="HAF7E3061EC2B4866B4BE1B8C66E13504"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(19) (15 U.S.C.
80a–2(a)(19)), in the matter following subparagraph (B)(vii)—</text>
<subparagraph id="HFAC046D0772544C1AA96D439499AD8C0"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>clause (vi)</quote> each
place that term appears and inserting <quote>clause (vii)</quote>; and</text>
</subparagraph><subparagraph id="H1812D9283768449D8D83B0876DD8E091"><enum>(B)</enum><text>in each of
subparagraphs (A)(vi) and (B)(vi), by adding <quote>and</quote> at the end of
subclause (III);</text>
</subparagraph></paragraph><paragraph id="H1926CCFDD9024D73835CCC9C0D5DA32C"><enum>(2)</enum><text display-inline="yes-display-inline">in section 9(b)(4)(B) (15 U.S.C.
80a–9(b)(4)(B)), by adding <quote>or</quote> after the semicolon at the
end;</text>
</paragraph><paragraph id="H32F26D1B616749719A0CF3E7FA95A9E5"><enum>(3)</enum><text display-inline="yes-display-inline">in section 12(d)(1)(J) (15 U.S.C.
80a–12(d)(1)(J)), by striking <quote>any provision of this subsection</quote>
and inserting <quote>any provision of this paragraph</quote>;</text>
</paragraph><paragraph id="HD1E95AD27ABD4253B24D769E1313603E"><enum>(4)</enum><text display-inline="yes-display-inline">in section 17(f) (15 U.S.C.
80a–17(f))—</text>
<subparagraph id="H5A3632A156614B79911B1D49EB8EBDAB"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking <quote>No
such member</quote> and inserting <quote>No member of a national securities
exchange</quote>; and</text>
</subparagraph><subparagraph id="H61F871B499A84E4CAA6F1FD726B5EFBD"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (6), by striking
<quote>company may serve</quote> and inserting <quote>company, may
serve</quote>; and</text>
</subparagraph></paragraph><paragraph id="H399051FC7CCF4704833C6F9F4F6D7BB5"><enum>(5)</enum><text display-inline="yes-display-inline">in section 61(a)(3)(B)(iii) (15 U.S.C.
80a–60(a)(3)(B)(iii))—</text>
<subparagraph id="H838328779BCD4CCA820FED8F493D553C"><enum>(A)</enum><text>by striking
<quote>paragraph (1) of section 205</quote> and inserting <quote>section
205(a)(1)</quote>; and</text>
</subparagraph><subparagraph id="H4CB580EC1F60466FB92770D2E795B01C"><enum>(B)</enum><text>by striking
<quote>clause (A) or (B) of that section</quote> and inserting <quote>paragraph
(1) or (2) of section 205(b)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H7019F0CE96BC47C58CE32B69804578C3"><enum>(e)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">The
Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended—</text>
<paragraph id="H126CA732C9E34E5AADFC7E7BFA48F8D1"><enum>(1)</enum><text display-inline="yes-display-inline">in section 203 (15 U.S.C. 80b–3)—</text>
<subparagraph id="H0A1CC4235DC944DC935522D2E6E7ECB1"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)(1)(A), by striking
<quote>principal business office and</quote> and inserting <quote>principal
office, principal place of business, and </quote>; and</text>
</subparagraph><subparagraph id="H3F203861250E435E8BBEEBE565875173"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (k)(4)(B), in the matter
following clause (ii), by striking <quote>principal place of business</quote>
and inserting <quote>principal office or place of business</quote>;</text>
</subparagraph></paragraph><paragraph id="H05C855402A7F4188A653F8F427D465C6"><enum>(2)</enum><text display-inline="yes-display-inline">in section 206(3) (15 U.S.C. 80b–6(3)), by
adding <quote>or</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="H231983B95891483C93AB57457AE3CDCE"><enum>(3)</enum><text display-inline="yes-display-inline">in section 213(a) (15 U.S.C. 80b–13(a)), by
striking <quote>principal place of business</quote> and inserting
<quote>principal office or place of business</quote>; and</text>
</paragraph><paragraph id="H483538C011784093B40B04E8A9435D92"><enum>(4)</enum><text display-inline="yes-display-inline">in section 222 (15 U.S.C. 80b–18a), by
striking <quote>principal place of business</quote> each place that term
appears and inserting <quote>principal office and place of
business</quote>.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HD7F6DFAEFEAC4DA7AFDFA0D13929C182"><enum>986.</enum><header>Conforming
amendments relating to repeal of the Public Utility Holding Company Act of
1935</header>
<subsection id="H42B1FC34D0C54B52AB448089AE38B598"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text display-inline="yes-display-inline">The
Securities Exchange Act of 1934 (15 U.S.C. 78 et seq.) is amended—</text>
<paragraph id="H6F31A87EC4264DB895A30C27C1286FC2"><enum>(1)</enum><text>in section
3(a)(47) (15 U.S.C. 78c(a)(47)), by striking <quote>the Public Utility Holding
Company Act of 1935 (15 U.S.C. 79a et seq.),</quote>;</text>
</paragraph><paragraph id="HFBCB571727AA474CB1FE6B6FF1AA4A5F"><enum>(2)</enum><text>in section 12(k)
(15 U.S.C. 78l(k)), by amending paragraph (7) to read as follows: </text>
<quoted-block display-inline="no-display-inline" id="HFB5DE60FF4504287975B9A3BE259AC24" style="OLC">
<paragraph id="HE5DD7758079347D4A450D3C637309D13"><enum>(7)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>emergency</term> means—</text>
<subparagraph id="HFF639E2E7BC2483C8245B8C213B53BBB"><enum>(A)</enum><text>a major market
disturbance characterized by or constituting—</text>
<clause id="HB71319D293EE46A7A1D144670232495A"><enum>(i)</enum><text>sudden and
excessive fluctuations of securities prices generally, or a substantial threat
thereof, that threaten fair and orderly markets; or</text>
</clause><clause id="H5E974217B5DD4E489C8D2B66588C5EDD"><enum>(ii)</enum><text>a
substantial disruption of the safe or efficient operation of the national
system for clearance and settlement of transactions in securities, or a
substantial threat thereof; or</text>
</clause></subparagraph><subparagraph id="H48EF1182776A48F58E7BE94577E1374B"><enum>(B)</enum><text>a major
disturbance that substantially disrupts, or threatens to substantially
disrupt—</text>
<clause id="H511B853AC3C64689BA0382371BB3EDA8"><enum>(i)</enum><text>the functioning of
securities markets, investment companies, or any other significant portion or
segment of the securities markets; or</text>
</clause><clause id="HE95C3DB3ED0B46E5BA7A4D23DC0C1158"><enum>(ii)</enum><text>the transmission
or processing of securities
transactions.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9C8369A970F94F9AB40F83FCC1208E6B"><enum>(3)</enum><text>in section
21(h)(2) (15 U.S.C. 78u(h)(2)), by striking <quote>section 18(c) of the Public
Utility Holding Company Act of 1935,</quote>.</text>
</paragraph></subsection><subsection id="HAD988D24B17A4670BEAFD0435200B198"><enum>(b)</enum><header>Trust Indenture
Act of 1939</header><text display-inline="yes-display-inline">The Trust
Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) is amended—</text>
<paragraph id="H06815EE6FE8E4CE688C6AD35BF87D5E3"><enum>(1)</enum><text display-inline="yes-display-inline">in section 303 (15 U.S.C. 77ccc), by
striking paragraph (17) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HAD197AC0C6924015AED295843825FFFF" style="OLC">
<paragraph id="H64148B4A038C4165BC6FC2D13FCB08B9"><enum>(17)</enum><text>The terms
<term>Securities Act of 1933</term> and <term>Securities Exchange Act of
1934</term> shall be deemed to refer, respectively, to such Acts, as amended,
whether amended prior to or after the enactment of this
title.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD72E954D7ED9426B9EE7025B667F0BF7"><enum>(2)</enum><text display-inline="yes-display-inline">in section 308 (15 U.S.C. 77hhh), by
striking <quote>Securities Act of 1933, the Securities Exchange Act of 1934, or
the Public Utility Holding Company Act of 1935</quote> each place that term
appears and inserting <quote>Securities Act of 1933 or the Securities Exchange
Act of 1934</quote>;</text>
</paragraph><paragraph id="H245B16D210D446E8923406FFB31B401F"><enum>(3)</enum><text display-inline="yes-display-inline">in section 310 (15 U.S.C. 77jjj), by
striking subsection (c);</text>
</paragraph><paragraph id="HDC657F5871124056AD407B024CB0EA10"><enum>(4)</enum><text display-inline="yes-display-inline">in section 311 (15 U.S.C. 77kkk), by
striking subsection (c);</text>
</paragraph><paragraph id="HA64F433726EA4F59BA3975F516705C28"><enum>(5)</enum><text display-inline="yes-display-inline">in section 323(b) (15 U.S.C. 77www(b)), by
striking <quote>Securities Act of 1933, or the Securities Exchange Act of 1934,
or the Public Utility Holding Company Act of 1935</quote> and inserting
<quote>Securities Act of 1933 or the Securities Exchange Act of 1934</quote>;
and</text>
</paragraph><paragraph id="HC2F4792A2CA7432EB360796D9C7B3FB6"><enum>(6)</enum><text display-inline="yes-display-inline">in section 326 (15 U.S.C. 77zzz), by
striking <quote>Securities Act of 1933, or the Securities Exchange Act of 1934,
or the Public Utility Holding Company Act of 1935,</quote> and inserting
<quote>Securities Act of 1933 or the Securities Exchange Act of
1934</quote>.</text>
</paragraph></subsection><subsection id="HD7A3242A86684AA9A4552A9BB09F4DA5"><enum>(c)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">The
Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) is amended—</text>
<paragraph id="H2FAD2966C12E48918A1239068CBED03E"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(44) (15 U.S.C.
80a–2(a)(44)), by striking <quote><quote>Public Utility Holding Company Act of
1935</quote>,</quote>;</text>
</paragraph><paragraph id="HBED171624FB94A8E88B9C1833A942B1B"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3(c) (15 U.S.C. 80a–3(c)), by
striking paragraph (8) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8B8F7443F8384CC0A25A616067263E13" style="OLC">
<paragraph id="H031234D0D49D40319CA79D46A7191DEC"><enum>(8)</enum><text>[Repealed]</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15D78FEDD7974CA0ABCB67E7F96AC38E"><enum>(3)</enum><text display-inline="yes-display-inline">in section 38(b) (15 U.S.C. 80a–37(b)), by
striking <quote>the Public Utility Holding Company Act of 1935,</quote>;
and</text>
</paragraph><paragraph id="H06833A9284E145E2B09E47034D6D34AF"><enum>(4)</enum><text display-inline="yes-display-inline">in section 50 (15 U.S.C. 80a–49), by
striking <quote>the Public Utility Holding Company Act of 1935,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0ED5B34DAA2C44B0AC8E97702EAB1800"><enum>(d)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">Section
202(a)(21) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(21)) is
amended by striking <quote><quote>Public Utility Holding Company Act of
1935</quote>,</quote>.</text>
</subsection></section><section id="H27851ED513FD4B90A27AC3D1A4B89CE5"><enum>987.</enum><header>Amendment to
definition of material loss and nonmaterial losses to the Deposit Insurance
Fund for purposes of Inspector General reviews</header>
<subsection id="HFF66D975F9624355B018FD046FA829DE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 38(k) of the
Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended—</text>
<paragraph id="HEC199C9290804AB2B66AF379DADC5F89"><enum>(1)</enum><text>in paragraph (2),
by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HB6380CC2178542428BBCDF6425FA12A7" style="OLC">
<subparagraph id="H300A88C1E5F8426AA7713B069ABE3CFA"><enum>(B)</enum><header>Material loss
defined</header><text display-inline="yes-display-inline">The term
<term>material loss</term> means any estimated loss in excess of—</text>
<clause id="H08DA808DAC834A039859578B6FE12FBD"><enum>(i)</enum><text display-inline="yes-display-inline">$200,000,000, if the loss occurs during the
period beginning on January 1, 2010, and ending on December 31, 2011;</text>
</clause><clause id="H92E867B1F37F4E36A220B39932FEB22A"><enum>(ii)</enum><text display-inline="yes-display-inline">$150,000,000, if the loss occurs during the
period beginning on January 1, 2012, and ending on December 31, 2013;
and</text>
</clause><clause id="HB08B1058F3534842BE851D60FBCAB1AD"><enum>(iii)</enum><text display-inline="yes-display-inline">$50,000,000, if the loss occurs on or after
January 1, 2014, provided that if the inspector general of a Federal banking
agency certifies to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
that the number of projected failures of depository institutions that would
require material loss reviews for the following 12 months will be greater than
30 and would hinder the effectiveness of its oversight functions, then the
definition of <quote>material loss</quote> shall be $75,000,000 for a duration
of 1 year from the date of the
certification.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEFE24F41C11343B59A91E5AEDAE0305D"><enum>(2)</enum><text>in paragraph
(4)(A) by striking <quote>the report</quote> and inserting <quote>any report on
losses required under this subsection,</quote>;</text>
</paragraph><paragraph id="HD422EF1488C647B185837B12B5515538"><enum>(3)</enum><text>by striking
paragraph (6);</text>
</paragraph><paragraph id="H3BB5D38B152F4914AEBE1B262D390C34"><enum>(4)</enum><text>by redesignating
paragraph (5) as paragraph (6); and</text>
</paragraph><paragraph id="HFD8B7E287F6544EA8789C04472F0C31B"><enum>(5)</enum><text>by inserting after
paragraph (4) the following:</text>
<quoted-block display-inline="no-display-inline" id="HD63D09C1B80C43BBA476F1C1467456BD" style="OLC">
<paragraph id="HCB5E54918FEF47E68AD78161ADF50FE2"><enum>(5)</enum><header>Losses that are
not material</header>
<subparagraph id="HC108FCCB2AE149389DC9EF6D5AFC1D03"><enum>(A)</enum><header>Semiannual
report</header><text display-inline="yes-display-inline">For the 6-month period
ending on March 31, 2010, and each 6-month period thereafter, the Inspector
General of each Federal banking agency shall—</text>
<clause id="H824A55901B0944D2A7FDED9C82DA87AD"><enum>(i)</enum><text display-inline="yes-display-inline">identify losses that the Inspector General
estimates have been incurred by the Deposit Insurance Fund during that 6-month
period, with respect to the insured depository institutions supervised by the
Federal banking agency;</text>
</clause><clause id="H927E51CAC33747C8B0886187A7EE9CB0"><enum>(ii)</enum><text>for each loss
incurred by the Deposit Insurance Fund that is not a material loss,
determine—</text>
<subclause id="H50135F7FA8E74D27ACD9EA7D18B3F48F"><enum>(I)</enum><text>the grounds
identified by the Federal banking agency or State bank supervisor for
appointing the Corporation as receiver under section 11(c)(5); and</text>
</subclause><subclause id="HFC8BF4C8791F4852A343B88B9F840907"><enum>(II)</enum><text>whether any
unusual circumstances exist that might warrant an in-depth review of the loss;
and</text>
</subclause></clause><clause id="H8D1A1265E40740D3BC9B400C2B400D69"><enum>(iii)</enum><text display-inline="yes-display-inline">prepare and submit a written report to the
appropriate Federal banking agency and to Congress on the results of any
determination by the Inspector General, including—</text>
<subclause id="HEEA74AE8E3374E418EFCDA3B92EE2ABD"><enum>(I)</enum><text display-inline="yes-display-inline">an identification of any loss that warrants
an in-depth review, together with the reasons why such review is warranted, or,
if the Inspector General determines that no review is warranted, an explanation
of such determination; and</text>
</subclause><subclause id="H75373B04197F4D9A91A90DDE53FA0E64"><enum>(II)</enum><text display-inline="yes-display-inline">for each loss identified under subclause
(I) that warrants an in-depth review, the date by which such review, and a
report on such review prepared in a manner consistent with reports under
paragraph (1)(A), will be completed and submitted to the Federal banking agency
and Congress.</text>
</subclause></clause></subparagraph><subparagraph id="HBFFCC71978054CF490F22302024FB959"><enum>(B)</enum><header>Deadline for
semiannual report</header><text display-inline="yes-display-inline">The
Inspector General of each Federal banking agency shall—</text>
<clause id="H8445146465EC43688B4C23E6784C7818"><enum>(i)</enum><text display-inline="yes-display-inline">submit each report required under paragraph
(A) expeditiously, and not later than 90 days after the end of the 6-month
period covered by the report; and</text>
</clause><clause id="H1F9CB5AF9CA540158B28B62852F86A4A"><enum>(ii)</enum><text>provide a copy of
the report required under paragraph (A) to any Member of Congress, upon
request.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5D0CAA89B39A414DB5F94403C9EBE748"><enum>(b)</enum><header>Technical and
conforming amendment</header><text display-inline="yes-display-inline">The
heading for subsection (k) of section 38 of the Federal Deposit Insurance Act
(U.S.C. 1831o(k)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4EB46854162649E09846954A9FC967AA" style="OLC">
<subsection id="HAAFE85CEB1B14DE38CF14C623B13573F"><enum>(k)</enum><header>Reviews required
when Deposit Insurance Fund incurs
losses</header>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC4E623A2F0654381BC0CE5E908ADC76C"><enum>988.</enum><header>Amendment to
definition of material loss and nonmaterial losses to the National Credit Union
Share Insurance Fund for purposes of Inspector General reviews</header>
<subsection id="H71CC6E2483054664B2D359719585FA4A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 216(j) of the
Federal Credit Union Act (12 U.S.C. 1790d(j)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H25246D6D785F4F2095EE51C9DB1E3D6D" style="OLC">
<subsection id="H4AD3808513AC4196808B0E5866FDA91D"><enum>(j)</enum><header>Reviews required
when share insurance fund experiences losses</header>
<paragraph id="H0A5380E0117A4253AE33680C9A4477B4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Fund incurs a
material loss with respect to an insured credit union, the Inspector General of
the Board shall—</text>
<subparagraph id="HABC868E3F25F4334B9B9BDC4F6CB2F9A"><enum>(A)</enum><text>submit to the
Board a written report reviewing the supervision of the credit union by the
Administration (including the implementation of this section by the
Administration), which shall include—</text>
<clause id="HECC4D738C3444050B39E3272380EEBCD"><enum>(i)</enum><text>a
description of the reasons why the problems of the credit union resulted in a
material loss to the Fund; and</text>
</clause><clause id="H848663DFE1B049A8B24924299F8493CD"><enum>(ii)</enum><text>recommendations
for preventing any such loss in the future; and</text>
</clause></subparagraph><subparagraph id="HF106790D62BD4640A3A6270BC876F977"><enum>(B)</enum><text>submit a copy of
the report under subparagraph (A) to—</text>
<clause id="HDE5A8087846142DEAAC286BB17220C0E"><enum>(i)</enum><text>the Comptroller
General of the United States;</text>
</clause><clause id="H98BE4BBEC56A4FC582383A3E0213410A"><enum>(ii)</enum><text>the
Corporation;</text>
</clause><clause id="H8B460BFBC87142C78C7E77ADC7CB16C3"><enum>(iii)</enum><text>in the case of a
report relating to a State credit union, the appropriate State supervisor;
and</text>
</clause><clause id="HC56F389F51C0492883CF04E5E4CD7F04"><enum>(iv)</enum><text>to any Member of
Congress, upon request.</text>
</clause></subparagraph></paragraph><paragraph id="H3BEB3942C23646AC93DD1C396B6FD854"><enum>(2)</enum><header>Material loss
defined</header><text display-inline="yes-display-inline">For purposes of
determining whether the Fund has incurred a material loss with respect to an
insured credit union, a loss is material if it exceeds the sum of—</text>
<subparagraph id="H85055C5A5DB641388BBEC471A9237A2C"><enum>(A)</enum><text>$25,000,000;
and</text>
</subparagraph><subparagraph id="H80840E26A91342D9996811C71A6AFECB"><enum>(B)</enum><text>an amount equal to
10 percent of the total assets of the credit union on the date on which the
Board initiated assistance under section 208 or was appointed liquidating
agent.</text>
</subparagraph></paragraph><paragraph id="H9B8C5AF17E45473DB495BAE3C92C7AC3"><enum>(3)</enum><header>Public
disclosure required</header>
<subparagraph id="H43459432AADD47A08EAC47EE9D0AA63E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall
disclose a report under this subsection, upon request under section 552 of
title 5, United States Code, without excising—</text>
<clause id="HE6FAE1E479CD409B9E402B1B29838CF2"><enum>(i)</enum><text>any portion under
section 552(b)(5) of title 5, United States Code; or</text>
</clause><clause id="H68CFAE5657304767B06765359AAAF88D"><enum>(ii)</enum><text>any information
about the insured credit union (other than trade secrets) under section
552(b)(8) of title 5, United States Code.</text>
</clause></subparagraph><subparagraph id="H1D9851481DA3466893FBBC64D8EC5D94"><enum>(B)</enum><header>Rule of
construction</header><text>Subparagraph (A) may not be construed as requiring
the agency to disclose the name of any customer of the insured credit union
(other than an institution-affiliated party), or information from which the
identity of such customer could reasonably be ascertained.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HEE4B0107B2D044CCAC0BAB998B3B9E9C"><enum>(4)</enum><header>Losses that are
not material</header>
<subparagraph id="HBACD3A5CE26140CFBCAB417AF217995E"><enum>(A)</enum><header>Semiannual
report</header><text display-inline="yes-display-inline">For the 6-month period
ending on March 31, 2010, and each 6-month period thereafter, the Inspector
General of the Board shall—</text>
<clause id="HC9DF0B04EF4F47A683AD960724EB4ABD"><enum>(i)</enum><text display-inline="yes-display-inline">identify any losses that the Inspector
General estimates were incurred by the Fund during such 6-month period, with
respect to insured credit unions;</text>
</clause><clause id="H69C14CE5D8694A27BAF796E6BAC9632F"><enum>(ii)</enum><text>for each loss to
the Fund that is not a material loss, determine—</text>
<subclause id="H86E3534945AE4FADB4D4EA6CE6554D74"><enum>(I)</enum><text>the grounds
identified by the Board or the State official having jurisdiction over a State
credit union for appointing the Board as the liquidating agent for any Federal
or State credit union; and</text>
</subclause><subclause id="H7289B7F71F92490581112C0B6FAFC2AF"><enum>(II)</enum><text>whether any
unusual circumstances exist that might warrant an in-depth review of the loss;
and</text>
</subclause></clause><clause id="HAC590924177E40C5819DAAC66F88D50E"><enum>(iii)</enum><text display-inline="yes-display-inline">prepare and submit a written report to the
Board and to Congress on the results of the determinations of the Inspector
General that includes—</text>
<subclause id="H1E09627766A7405D9B0F05965F6B4EDA"><enum>(I)</enum><text display-inline="yes-display-inline">an identification of any loss that warrants
an in-depth review, and the reasons such review is warranted, or if the
Inspector General determines that no review is warranted, an explanation of
such determination; and</text>
</subclause><subclause id="H774F64E6278546618EF92727F6A17CA8"><enum>(II)</enum><text display-inline="yes-display-inline">for each loss identified in subclause (I)
that warrants an in-depth review, the date by which such review, and a report
on the review prepared in a manner consistent with reports under paragraph
(1)(A), will be completed.</text>
</subclause></clause></subparagraph><subparagraph id="H5B81D9AC241C4B698BAFD9776FD9338D"><enum>(B)</enum><header>Deadline for
semiannual report</header><text display-inline="yes-display-inline">The
Inspector General of the Board shall—</text>
<clause id="H9591C8E2B1EB4B499A836EE62BF0A026"><enum>(i)</enum><text display-inline="yes-display-inline">submit each report required under
subparagraph (A) expeditiously, and not later than 90 days after the end of the
6-month period covered by the report; and</text>
</clause><clause id="H82DC536FF40F4E8E959AA1F0069B15EE"><enum>(ii)</enum><text>provide a copy of
the report required under subparagraph (A) to any Member of Congress, upon
request.</text>
</clause></subparagraph></paragraph><paragraph id="H3AC9358A27174D58B3C92A3A8BBD8D14"><enum>(5)</enum><header>GAO
review</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall, under such conditions as the Comptroller
General determines to be appropriate—</text>
<subparagraph id="H40846BC8E9F349AA87C5B9CF274B3E4B"><enum>(A)</enum><text display-inline="yes-display-inline">review each report made under paragraph
(1), including the extent to which the Inspector General of the Board complied
with the requirements under section 8L of the Inspector General Act of 1978 (5
U.S.C. App.) with respect to each such report; and</text>
</subparagraph><subparagraph id="H9F1A369A38494F4B9B9CD2E50AB70263"><enum>(B)</enum><text display-inline="yes-display-inline">recommend improvements to the supervision
of insured credit unions (including improvements relating to the implementation
of this
section).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H448AA1D24CDD4789BA110E61001E8373"><enum>989.</enum><header>Government
Accountability Office study on proprietary trading</header>
<subsection id="H62EBBDED46CC47BBAE00E8689A2310A4"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="HBA5445B12EC747528CF0201773D3FEB0"><enum>(1)</enum><text>the term
<term>covered entity</term> means—</text>
<subparagraph id="H59E3CBB01A3F49379EEF3F9DB8ABB1A4"><enum>(A)</enum><text>an insured
depository institution, an affiliate of an insured depository institution, a
bank holding company, a financial holding company, or a subsidiary of a bank
holding company or a financial holding company, as those terms are defined in
the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.); and</text>
</subparagraph><subparagraph id="H8AC710F142DB4A3E8AB37521A67C1A7F"><enum>(B)</enum><text>any other entity,
as the Comptroller General of the United States may determine; and</text>
</subparagraph></paragraph><paragraph id="HE2588649478E4950867377854105B8BD"><enum>(2)</enum><text>the term
<term>proprietary trading</term> means the act of a covered entity investing as
a principal in securities, commodities, derivatives, hedge funds, private
equity firms, or such other financial products or entities as the Comptroller
General may determine.</text>
</paragraph></subsection><subsection id="H1590DD15C0B2424492D2EEB1A6DA1CFC"><enum>(b)</enum><header>Study</header>
<paragraph id="H6A0131A6A61F469AB7ADE7766AB4D05F"><enum>(1)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study regarding the risks and conflicts associated with proprietary
trading by and within covered entities, including an evaluation of—</text>
<subparagraph id="HFA3F418C55B049CD8FF57A4085D11124"><enum>(A)</enum><text>whether
proprietary trading presents a material systemic risk to the stability of the
United States financial system, and if so, the costs and benefits of options
for mitigating such systemic risk;</text>
</subparagraph><subparagraph id="H7B2A8FBAFA7046BA9304CBC0A872F9FC"><enum>(B)</enum><text>whether
proprietary trading presents material risks to the safety and soundness of the
covered entities that engage in such activities, and if so, the costs and
benefits of options for mitigating such risks;</text>
</subparagraph><subparagraph id="H5B65BC25D2A349AFB369CAA3ACE32764"><enum>(C)</enum><text>whether
proprietary trading presents material conflicts of interest between covered
entities that engage in proprietary trading and the clients of the institutions
who use the firm to execute trades or who rely on the firm to manage assets,
and if so, the costs and benefits of options for mitigating such conflicts of
interest;</text>
</subparagraph><subparagraph id="H9DC1733CC30844FBB43F368CB9A91FEA"><enum>(D)</enum><text>whether adequate
disclosure regarding the risks and conflicts of proprietary trading is provided
to the depositors, trading and asset management clients, and investors of
covered entities that engage in proprietary trading, and if not, the costs and
benefits of options for the improvement of such disclosure; and</text>
</subparagraph><subparagraph id="H5031EB99471B4736A6594CD6D4551EF5"><enum>(E)</enum><text>whether the
banking, securities, and commodities regulators of institutions that engage in
proprietary trading have in place adequate systems and controls to monitor and
contain any risks and conflicts of interest related to proprietary trading, and
if not, the costs and benefits of options for the improvement of such systems
and controls.</text>
</subparagraph></paragraph><paragraph id="H8AB2633741C845CBBCDDF290936DE000"><enum>(2)</enum><header>Considerations</header><text>In
carrying out the study required under paragraph (1), the Comptroller General
shall consider—</text>
<subparagraph id="H283D1A95F8E94144AED37CEC8898ECA3"><enum>(A)</enum><text>current practice
relating to proprietary trading;</text>
</subparagraph><subparagraph id="H87225B3170D145228E23ABD04865C07E"><enum>(B)</enum><text>the advisability
of a complete ban on proprietary trading;</text>
</subparagraph><subparagraph id="H9751F88E8B9E484F82EC3829B13AFCAF"><enum>(C)</enum><text>limitations on the
scope of activities that covered entities may engage in with respect to
proprietary trading;</text>
</subparagraph><subparagraph id="H4D8DF2FA6C6845FAABFC1EDDDD4C7ECC"><enum>(D)</enum><text>the advisability
of additional capital requirements for covered entities that engage in
proprietary trading;</text>
</subparagraph><subparagraph id="H292C8FC984A04916800606704E2C826A"><enum>(E)</enum><text>enhanced
restrictions on transactions between affiliates related to proprietary
trading;</text>
</subparagraph><subparagraph id="HE437B20A2A014B3B8A0394784C37979D"><enum>(F)</enum><text>enhanced
accounting disclosures relating to proprietary trading;</text>
</subparagraph><subparagraph id="H9F27B0225F0C4B06A27C5605B0FA6B4E"><enum>(G)</enum><text>enhanced public
disclosure relating to proprietary trading; and</text>
</subparagraph><subparagraph id="HC2CB0E41DCA94729AD53AB35E7B4A434"><enum>(H)</enum><text>any other options
the Comptroller General deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H39DE21C0598D440885322D3983BE9A9E"><enum>(c)</enum><header>Report to
Congress</header><text>Not later than 15 months after the date of enactment of
this Act, the Comptroller General shall submit a report to Congress on the
results of the study conducted under subsection (b).</text>
</subsection><subsection id="H1B95DBB731D04403A47CEC6B418BA312"><enum>(d)</enum><header>Access by
Comptroller General</header><text>For purposes of conducting the study required
under subsection (b), the Comptroller General shall have access, upon request,
to any information, data, schedules, books, accounts, financial records,
reports, files, electronic communications, or other papers, things, or property
belonging to or in use by a covered entity that engages in proprietary trading,
and to the officers, directors, employees, independent public accountants,
financial advisors, staff, and agents and representatives of a covered entity
(as related to the activities of the agent or representative on behalf of the
covered entity), at such reasonable times as the Comptroller General may
request. The Comptroller General may make and retain copies of books, records,
accounts, and other records, as the Comptroller General deems
appropriate.</text>
</subsection><subsection id="HBE82739376104FFE94E4C65957471CE1"><enum>(e)</enum><header>Confidentiality
of reports</header>
<paragraph id="HC00DC180382B4FBD8D6229D8D35C07AA"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the Comptroller
General may not disclose information regarding—</text>
<subparagraph id="H3C6E4788AE044295B853E5FB192B0DB8"><enum>(A)</enum><text>any proprietary
trading activity of a covered entity, unless such information is disclosed at a
level of generality that does not reveal the investment or trading position or
strategy of the covered entity for any specific security, commodity,
derivative, or other investment or financial product; or</text>
</subparagraph><subparagraph id="H9329C7953E95499C83239DF20C8E1B64"><enum>(B)</enum><text>any individual
interviewed by the Comptroller General for purposes of the study under
subsection (b), unless such information is disclosed at a level of generality
that does not reveal—</text>
<clause id="HE5F0571A95454EC98692A1F2B8BD2FFA"><enum>(i)</enum><text>the
name of or identifying details relating to such individual; or</text>
</clause><clause id="HFD9EA8D567A848DA91F0653C7BB752DF"><enum>(ii)</enum><text>in
the case of an individual who is an employee of a third party that provides
professional services to a covered entity believed to be engaged in proprietary
trading, the name of or any identifying details relating to such third
party.</text>
</clause></subparagraph></paragraph><paragraph id="H8F7F34DFD73044D493CF0D15DBA2379B"><enum>(2)</enum><header>Exceptions</header><text>The
Comptroller General may disclose the information described in paragraph
(1)—</text>
<subparagraph id="HEE12CF5F39E84E38A3B5E9080656CAB2"><enum>(A)</enum><text>to a department,
agency, or official of the Federal Government, for official use, upon
request;</text>
</subparagraph><subparagraph id="HB9309AC7738B46A799AAF40346B4E7B1"><enum>(B)</enum><text>to a committee of
Congress, upon request; and</text>
</subparagraph><subparagraph id="HC753D82FFA474FDDA4ED65FD48407E52"><enum>(C)</enum><text>to a court, upon
an order of such court.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD4C56997D5EA45E7B0C0EA49CFFD4DBC" section-type="subsequent-section"><enum>989A.</enum><header display-inline="yes-display-inline">Senior investor protections</header>
<subsection commented="no" display-inline="no-display-inline" id="H7777F5856F9A41BE8BDE83926D1795D0"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H60CAB7F070104A86AB3906D36739C003"><enum>(1)</enum><text>the term
<term>eligible entity</term> means—</text>
<subparagraph id="H9906DB9037C54337BE1DE92DFC783A64"><enum>(A)</enum><text>a securities
commission (or any agency or office performing like functions) of a State that
the Office determines has adopted rules on the appropriate use of designations
in the offer or sale of securities or the provision of investment advice that
meet or exceed the minimum requirements of the NASAA Model Rule on the Use of
Senior-Specific Certifications and Professional Designations (or any successor
thereto);</text>
</subparagraph><subparagraph id="H61B59B404D0E427591D6D76A24F649FD"><enum>(B)</enum><text>the insurance
commission (or any agency or office performing like functions) of any State
that the Office determines has—</text>
<clause id="HA82E27373A6B4571994043BE083BBC7B"><enum>(i)</enum><text>adopted rules on
the appropriate use of designations in the sale of insurance products that, to
the extent practicable, conform to the minimum requirements of the National
Association of Insurance Commissioners Model Regulation on the Use of
Senior-Specific Certifications and Professional Designations in the Sale of
Life Insurance and Annuities (or any successor thereto); and</text>
</clause><clause id="H48B39BDF347A44C0BECF1A632DFFC0D5"><enum>(ii)</enum><text>adopted rules
with respect to fiduciary or suitability requirements in the sale of annuities
that meet or exceed the minimum requirements established by the Suitability in
Annuity Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto); or</text>
</clause></subparagraph><subparagraph id="H28EE78AE8EF147CD883D3778F073DFCC"><enum>(C)</enum><text>a consumer
protection agency of any State, if—</text>
<clause id="H884FB6E8594745D79F6CA9F652811253"><enum>(i)</enum><text>the
securities commission (or any agency or office performing like functions) of
the State is eligible under subparagraph (A); or</text>
</clause><clause id="HD6BA260B47CF4A90A3CB0EBC8FF8FB8E"><enum>(ii)</enum><text>the
insurance commission (or any agency or office performing like functions) of the
State is eligible under subparagraph (B);</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H27EDE93283B54EEF9E1FF389A8035763"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>financial product</term>
means a security, an insurance product (including an insurance product that
pays a return, whether fixed or variable), a bank product, and a loan
product;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC3D518A5FDA949BB8DA3DFB01485B4C5"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>misleading
designation</term>—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0AE9CF2EED274838ABB5843D6FE00DAF"><enum>(A)</enum><text display-inline="yes-display-inline">means a certification, professional
designation, or other purported credential that indicates or implies that a
salesperson or adviser has special certification or training in advising or
servicing seniors; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05DE3472017943928262E22473C1D19B"><enum>(B)</enum><text display-inline="yes-display-inline">does not include a certification,
professional designation, license, or other credential that—</text>
<clause commented="no" display-inline="no-display-inline" id="H0547A8A645834C7BA16C6CDACE2217C4"><enum>(i)</enum><text display-inline="yes-display-inline">was issued by or obtained from an academic
institution having regional accreditation;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1CAC23FA2662443F88053EAE9B9A3D6F"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the standards for certifications and
professional designations outlined by the NASAA Model Rule on the Use of
Senior-Specific Certifications and Professional Designations (or any successor
thereto) or by the Model Regulations on the Use of Senior-Specific
Certifications and Professional Designations in the Sale of Life Insurance and
Annuities, adopted by the National Association of Insurance Commissioners (or
any successor thereto); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC188E92F6AA049A59FA03B590E1A9657"><enum>(iii)</enum><text display-inline="yes-display-inline">was issued by or obtained from a
State;</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C083FA14796432A9F4EF92B072E06D6"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>misleading or fraudulent
marketing</term> means the use of a misleading designation by a person that
sells to or advises a senior in connection with the sale of a financial
product;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H71056A36DD184B8091CF02E29D4AC21F"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>NASAA</term> means the North
American Securities Administrators Association;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCC811CDA35C142D890548A2D51D76BD5"><enum>(6)</enum><text>the term
<term>Office</term> means the Office of Financial Literacy of the
Bureau;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F05C4C71D4C48D0B02989E73308371F"><enum>(7)</enum><text display-inline="yes-display-inline">the term <term>senior</term> means any
individual who has attained the age of 62 years or older; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H372D04AA27A043A1A2A1E975A46DB302"><enum>(8)</enum><text>the term
<term>State</term> has the same meaning as in section 3 of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFA73289F0EBA479C81C0300F5A54F67D"><enum>(b)</enum><header display-inline="yes-display-inline">Grants to States for enhanced protection of
seniors from being misled by false designations</header><text display-inline="yes-display-inline">The Office shall establish a program under
which the Office may make grants to States or eligible entities—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA423863B6B3640648FDEB232D6B7241B"><enum>(1)</enum><text display-inline="yes-display-inline">to hire staff to identify, investigate, and
prosecute (through civil, administrative, or criminal enforcement actions)
cases involving misleading or fraudulent marketing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06A32B7F139743CFA5DD4E74EB328BF7"><enum>(2)</enum><text display-inline="yes-display-inline">to fund technology, equipment, and training
for regulators, prosecutors, and law enforcement officers, in order to identify
salespersons and advisers who target seniors through the use of misleading
designations;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H932EA5C03E0F40969C9F21CA94E35223"><enum>(3)</enum><text display-inline="yes-display-inline">to fund technology, equipment, and training
for prosecutors to increase the successful prosecution of salespersons and
advisers who target seniors with the use of misleading designations;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9C4D9663BFAC4C3E864651302C9E74A5"><enum>(4)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to regulators on the appropriateness of the use of designations by
salespersons and advisers in connection with the sale and marketing of
financial products;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2DC2CDB786D1415E96EB38BAA19B88E3"><enum>(5)</enum><text display-inline="yes-display-inline">to provide educational materials and
training to seniors to increase awareness and understanding of misleading or
fraudulent marketing;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H360FBF4D1E014A178A2F1C7F7D0F880C"><enum>(6)</enum><text display-inline="yes-display-inline">to develop comprehensive plans to combat
misleading or fraudulent marketing of financial products to seniors; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF31ACE80CF63479489CF1E7351B57833"><enum>(7)</enum><text display-inline="yes-display-inline">to enhance provisions of State law to
provide protection for seniors against misleading or fraudulent
marketing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCEE5A1E302F0412B8C3F6BFA0F12ADE2"><enum>(c)</enum><header display-inline="yes-display-inline">Applications</header><text display-inline="yes-display-inline">A State or eligible entity desiring a grant
under this section shall submit an application to the Office, in such form and
in such a manner as the Office may determine, that includes—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAC9A8822E20449A08E97FACBF4AFF350"><enum>(1)</enum><text display-inline="yes-display-inline">a proposal for activities to protect
seniors from misleading or fraudulent marketing that are proposed to be funded
using a grant under this section, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6188279C8CF243E9AE791D48AF61D33B"><enum>(A)</enum><text display-inline="yes-display-inline">an identification of the scope of the
problem of misleading or fraudulent marketing in the State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H128C64017FE640B0BB04F050C50D5F3C"><enum>(B)</enum><text display-inline="yes-display-inline">a description of how the proposed
activities would—</text>
<clause commented="no" display-inline="no-display-inline" id="H41FFAE545B414556AA4D4FE27BEF637E"><enum>(i)</enum><text display-inline="yes-display-inline">protect seniors from misleading or
fraudulent marketing in the sale of financial products, including by
proactively identifying victims of misleading and fraudulent marketing who are
seniors;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEFAB9AE10D824253B6BAE5EE1A938E74"><enum>(ii)</enum><text display-inline="yes-display-inline">assist in the investigation and prosecution
of those using misleading or fraudulent marketing; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD27B11475E01438E9A6C976CA2CA2A5F"><enum>(iii)</enum><text display-inline="yes-display-inline">discourage and reduce cases of misleading
or fraudulent marketing; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58009C64C24F4BF8AE09BDB630BEB661"><enum>(C)</enum><text display-inline="yes-display-inline">a description of how the proposed
activities would be coordinated with other State efforts; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0B13DBA35DAD458BB12004280D360E73"><enum>(2)</enum><text>any other
information, as the Office determines is appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB51052EFD42E4DDBA90659E6F53FAFA6"><enum>(d)</enum><header>Performance
objectives and reporting requirements</header><text display-inline="yes-display-inline">The Office may establish such performance
objectives and reporting requirements for States and eligible entities
receiving a grant under this section as the Office determines are necessary to
carry out and assess the effectiveness of the program under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8DDA46C96FF0434AA9F182D2F566FE4B"><enum>(e)</enum><header display-inline="yes-display-inline">Maximum
amount</header><text display-inline="yes-display-inline">The amount of a grant
under this section may not exceed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7BE86A984544438F9233C4E6161BA221"><enum>(1)</enum><text display-inline="yes-display-inline">$500,000 for each of 3 consecutive fiscal
years, if the recipient is a State, or an eligible entity of a State, that has
adopted rules—</text>
<subparagraph id="H48F1FFB0D76346FCBEC18135E02E9227"><enum>(A)</enum><text display-inline="yes-display-inline">on the appropriate use of designations in
the offer or sale of securities or investment advice that meet or exceed the
minimum requirements of the NASAA Model Rule on the Use of Senior-Specific
Certifications and Professional Designations (or any successor thereto);</text>
</subparagraph><subparagraph id="H27FD0FE7B763406991BD7BB3A7F9D64F"><enum>(B)</enum><text>on the appropriate
use of designations in the sale of insurance products that, to the extent
practicable, conform to the minimum requirements of the National Association of
Insurance Commissioners Model Regulation on the Use of Senior-Specific
Certifications and Professional Designations in the Sale of Life Insurance and
Annuities (or any successor thereto); and</text>
</subparagraph><subparagraph id="H657467E93EBB4FCEBD0D018366B32620"><enum>(C)</enum><text>with respect to
fiduciary or suitability requirements in the sale of annuities that meet or
exceed the minimum requirements established by the Suitability in Annuity
Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93971D2EEC4C41949A03C23C216489F6"><enum>(2)</enum><text display-inline="yes-display-inline">$100,000 for each of 3 consecutive fiscal
years, if the recipient is a State, or an eligible entity of a State, that has
adopted—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H815E120C476D4FD59A09E971AF9C7614"><enum>(A)</enum><text>rules on the
appropriate use of designations in the offer or sale of securities or
investment advice that meet or exceed the minimum requirements of the NASAA
Model Rule on the Use of Senior-Specific Certifications and Professional
Designations (or any successor thereto); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H984DE2C5209C4D86972E4EA1430F5845"><enum>(B)</enum><text>rules—</text>
<clause id="H4E0D2F6EC4F7464EB1E3A34E2D2C7567"><enum>(i)</enum><text>on
the appropriate use of designations in the sale of insurance products that, to
the extent practicable, conform to the minimum requirements of the National
Association of Insurance Commissioners Model Regulation on the Use of
Senior-Specific Certifications and Professional Designations in the Sale of
Life Insurance and Annuities (or any successor thereto); and</text>
</clause><clause id="HBAC6AB5D55C5481FA49993BF2E1440B6"><enum>(ii)</enum><text>with respect to
fiduciary or suitability requirements in the sale of annuities that meet or
exceed the minimum requirements established by the Suitability in Annuity
Transactions Model Regulation of the National Association of Insurance
Commissioners (or any successor thereto).</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD8AA6800C7AA4D0DBC06AE22B41CEE8F"><enum>(f)</enum><header>Subgrants</header><text>A
State or eligible entity that receives a grant under this section may make a
subgrant, as the State or eligible entity determines is necessary to carry out
the activities funded using a grant under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB35D8EF888054307A8A7F94AFE707731"><enum>(g)</enum><header>Reapplication</header><text>A
State or eligible entity that receives a grant under this section may reapply
for a grant under this section, notwithstanding the limitations on grant
amounts under subsection (e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H239982DCAF064420B334C27545A87896"><enum>(h)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to carry out this section, $8,000,000 for each of
fiscal years 2011 through 2015.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H731670697F354C28931D63C7444A1B84" section-type="subsequent-section"><enum>989B.</enum><header display-inline="yes-display-inline">Designated Federal entity inspectors
general independence</header><text display-inline="no-display-inline">Section
8G of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H95B99A9CA3C34F6D843BCC7DF47EC006"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(4)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H62AACD2AED324388B23FCB1D93CD08D4"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by inserting <quote>the board or commission of the designated Federal entity,
or in the event the designated Federal entity does not have a board or
commission,</quote> after <quote>means</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H90DE79FB1F324569BE227FB8AF0AFF62"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>and</quote> after the semicolon; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H10C4C0CB58AF48FDAF44DBA5A6FDF7E7"><enum>(C)</enum><text display-inline="yes-display-inline">by adding after subparagraph (B) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HAEE5C18D809449C3B78EDB138C7B05E2" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H5C612413601E4040BE1B55955D17C9D8"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to the Federal Labor Relations
Authority, such term means the members of the Authority (described under
section 7104 of title 5, United States Code);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF7A4DA3844354197A80C7B5DF5092974"><enum>(D)</enum><text display-inline="yes-display-inline">with respect to the National Archives and
Records Administration, such term means the Archivist of the United
States;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C4042D468B744DA9853EDAA0ABF0877"><enum>(E)</enum><text display-inline="yes-display-inline">with respect to the National Credit Union
Administration, such term means the National Credit Union Administration Board
(described under section 102 of the Federal Credit Union Act (12 U.S.C.
1752a);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H98FEF13D06574E7C91DE86866D1BA965"><enum>(F)</enum><text display-inline="yes-display-inline">with respect to the National Endowment of
the Arts, such term means the National Council on the Arts;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H91731B7C44EF417BA87CEDF4924C94E7"><enum>(G)</enum><text display-inline="yes-display-inline">with respect to the National Endowment for
the Humanities, such term means the National Council on the Humanities;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75C9EBEAEFF14807B9190E7FB7834C8E"><enum>(H)</enum><text display-inline="yes-display-inline">with respect to the Peace Corps, such term
means the Director of the Peace Corps;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1E5D878910FF4103883145A4C49EF5BF"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (h), by inserting <quote>if
the designated Federal entity is not a board or commission, include</quote>
after <quote>designated Federal entities and</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H879F3190E4234641978304E45A8FF5C9" section-type="subsequent-section"><enum>989C.</enum><header display-inline="yes-display-inline">Strengthening inspector general
accountability</header><text display-inline="no-display-inline">Section 5(a) of
the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0BC32704EB14422082E07A394770631F"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (12), by striking
<quote>and</quote> after the semicolon;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB659C8ED27E147C2BCEA21379D1E8C54"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (13), by striking the period
and inserting a semicolon; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98816CA1571543A5A330E87EDAA6FDD5"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H76C8886DF7694B1E8E0C8467F88F8D85" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC2F9159A1B964006BFB714AE53E41B8B"><enum>(14)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB8F11AC0C100421F84EBA1F7E35E2E9E"><enum>(A)</enum><text display-inline="yes-display-inline">an appendix containing the results of any
peer review conducted by another Office of Inspector General during the
reporting period; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8CEA4F662471448DA5C2DD08F6D14BF0" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">if no peer review was conducted within that
reporting period, a statement identifying the date of the last peer review
conducted by another Office of Inspector General;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC297CE7084C4E3283CE88A362494949"><enum>(15)</enum><text display-inline="yes-display-inline">a list of any outstanding recommendations
from any peer review conducted by another Office of Inspector General that have
not been fully implemented, including a statement describing the status of the
implementation and why implementation is not complete; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB9B3DD4ED30A4FA49FA5B63B01731170"><enum>(16)</enum><text display-inline="yes-display-inline">a list of any peer reviews conducted by the
Inspector General of another Office of the Inspector General during the
reporting period, including a list of any outstanding recommendations made from
any previous peer review (including any peer review conducted before the
reporting period) that remain outstanding or have not been fully
implemented.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HF1D0AD403DE342A48A622ADC4B402FF4" section-type="subsequent-section"><enum>989D.</enum><header display-inline="yes-display-inline">Removal of Inspectors General of designated
Federal entities</header><text display-inline="no-display-inline">Section 8G(e)
of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4580D3F2D17442DFBD6A412E13C2495E"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating the sentences following
<quote>(e)</quote> as paragraph (2); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1DD047E3FC344E4BA60E3EC82BAD3E93"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>(e)</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HCF7653C3612142B68A0A86EDFBDC4901" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA983B61B88C44D97BF59B0978F846C28"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HD8B927017A4249338D95C16263B85BA4"><enum>(1)</enum><text display-inline="yes-display-inline">In the case of a designated Federal entity
for which a board or commission is the head of the designated Federal entity, a
removal under this subsection may only be made upon the written concurrence of
a <fraction>2/3</fraction> majority of the board or
commission.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HA6C98644E18247D3B0DE8D0DA8349AB4" section-type="subsequent-section"><enum>989E.</enum><header display-inline="yes-display-inline">Additional oversight of financial
regulatory system</header>
<subsection commented="no" display-inline="no-display-inline" id="H448050B9DA054597B11EFFAA0A46729C"><enum>(a)</enum><header display-inline="yes-display-inline">Council of Inspectors General on Financial
Oversight</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFEC3B4DBCB8742FEA7DBE35DA811F63D"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment and membership</header><text display-inline="yes-display-inline">There is established a Council of
Inspectors General on Financial Oversight (in this section referred to as the
<quote>Council of Inspectors General</quote>) chaired by the Inspector General
of the Department of the Treasury and composed of the inspectors general of the
following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEE609243510F470791FEA594D55E75E7"><enum>(A)</enum><text display-inline="yes-display-inline">The Board of Governors of the Federal
Reserve System.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53D6E46FFDD84C75B2F82FE7D1FEBBE2"><enum>(B)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading
Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B034DDF08594E328126FA61AFBD62EB"><enum>(C)</enum><text display-inline="yes-display-inline">The Department of Housing and Urban
Development.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05BC022FE6FA44B98BA82CF441570B1E"><enum>(D)</enum><text display-inline="yes-display-inline">The Department of the Treasury.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DB2D1C455484B329D709B762D75DF7B"><enum>(E)</enum><text display-inline="yes-display-inline">The Federal Deposit Insurance
Corporation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB3A6683A30B248FD88515518B8FF5395"><enum>(F)</enum><text display-inline="yes-display-inline">The Federal Housing Finance Agency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5C02B37536FB457BA3108A9EF2FA2D38"><enum>(G)</enum><text display-inline="yes-display-inline">The National Credit Union
Administration.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAD6DFC93E7B74DBD8102C4FC35A14C75"><enum>(H)</enum><text display-inline="yes-display-inline">The Securities and Exchange
Commission.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFF8C584FF6FB4E35BB8F45B6CF55F397"><enum>(I)</enum><text display-inline="yes-display-inline">The Troubled Asset Relief Program (until
the termination of the authority of the Special Inspector General for such
program under section 121(k) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5231(k))).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFBCA789AAB7444A7BC575DBA987E4D9B"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H32F6113F4E0D47B3B6CA9DF2F5E6596F"><enum>(A)</enum><header display-inline="yes-display-inline">Meetings</header><text display-inline="yes-display-inline">The Council of Inspectors General shall
meet not less than once each quarter, or more frequently if the chair considers
it appropriate, to facilitate the sharing of information among inspectors
general and to discuss the ongoing work of each inspector general who is a
member of the Council of Inspectors General, with a focus on concerns that may
apply to the broader financial sector and ways to improve financial
oversight.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAC3CFDAE0281409FAD59D1081AB5D99F"><enum>(B)</enum><header display-inline="yes-display-inline">Annual report</header><text display-inline="yes-display-inline">Each year the Council of Inspectors General
shall submit to the Council and to Congress a report including—</text>
<clause commented="no" display-inline="no-display-inline" id="HC2B752864A5F4C7A8417A78F26A7B487"><enum>(i)</enum><text display-inline="yes-display-inline">for each inspector general who is a member
of the Council of Inspectors General, a section within the exclusive editorial
control of such inspector general that highlights the concerns and
recommendations of such inspector general in such inspector general’s ongoing
and completed work, with a focus on issues that may apply to the broader
financial sector; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H150302E7903E4155838BCCEE9A3AB11B"><enum>(ii)</enum><text display-inline="yes-display-inline">a summary of the general observations of
the Council of Inspectors General based on the views expressed by each
inspector general as required by clause (i), with a focus on measures that
should be taken to improve financial oversight.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H11A01D9D35A941D1A6E3C7CC30EE5C1B"><enum>(3)</enum><header display-inline="yes-display-inline">Working Groups to evaluate Council</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7F7842399D8940FFB1558A33F4EC1414"><enum>(A)</enum><header display-inline="yes-display-inline">Convening a Working Group</header><text display-inline="yes-display-inline">The Council of Inspectors General may, by
majority vote, convene a Council of Inspectors General Working Group to
evaluate the effectiveness and internal operations of the Council.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H92798540C95D4424ACD4062F4BB7CCF0"><enum>(B)</enum><header display-inline="yes-display-inline">Personnel and resources</header><text display-inline="yes-display-inline">The inspectors general who are members of
the Council of Inspectors General may detail staff and resources to a Council
of Inspectors General Working Group established under this paragraph to enable
it to carry out its duties.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F78216F3BDD4D44946238428E0FAEF6"><enum>(C)</enum><header display-inline="yes-display-inline">Reports</header><text display-inline="yes-display-inline">A Council of Inspectors General Working
Group established under this paragraph shall submit regular reports to the
Council and to Congress on its evaluations pursuant to this paragraph.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2EA42BE0DD064DE78A522B11066E239B"><enum>(b)</enum><header display-inline="yes-display-inline">Response to report by Council</header><text display-inline="yes-display-inline">The Council shall respond to the concerns
raised in the report of the Council of Inspectors General under subsection
(a)(2)(B) for such year.</text>
</subsection></section><section id="HDE09E9AB91A147C592EA9C65F8E19AC5"><enum>989F.</enum><header>GAO study of
person to person lending</header>
<subsection id="H8C9AE4A7905D4D2D8D8F9C44D852E5C4"><enum>(a)</enum><header>Study</header>
<paragraph id="H75499942C90F4813A3D6FE0E36D5BC0E"><enum>(1)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study of person to person lending to determine the optimal Federal
regulatory structure.</text>
</paragraph><paragraph id="H599AA53FD2AB44318A62F484C2FB98F5"><enum>(2)</enum><header>Consultation</header><text>In
conducting the study required under paragraph (1), the Comptroller General
shall consult with Federal banking agencies, the Commission, consumer groups,
outside experts, and the person to person lending industry.</text>
</paragraph><paragraph id="H25740F25BAE946A6B12545B8AFD269E2"><enum>(3)</enum><header>Content of
study</header><text>The study required under paragraph (1) shall include an
examination of—</text>
<subparagraph id="HBE3E0124E0BA4D3585A632E9C0D4F9D6"><enum>(A)</enum><text>the regulatory
structure as it exists on the date of enactment of this Act, as determined by
the Commission, with particular attention to—</text>
<clause id="H2A66DBBD4FDF4B599047A256FF23017F"><enum>(i)</enum><text>the
application of the Securities Act of 1933 to person to person lending
platforms;</text>
</clause><clause id="H3CBA45D7BAD148ABAD8755114E5A75F7"><enum>(ii)</enum><text>the
posting of consumer loan information on the EDGAR database of the Commission;
and</text>
</clause><clause id="H940D40BD090E4F87A032F8AE26529CDE"><enum>(iii)</enum><text>the treatment of
privately held person to person lending platforms as public companies;</text>
</clause></subparagraph><subparagraph id="HA5E68DF8A1304CB49C010E09AA9A51B9"><enum>(B)</enum><text>the State and
other Federal regulators responsible for the oversight and regulation of person
to person lending markets;</text>
</subparagraph><subparagraph id="H95AD433C0EB24F02B7B7DAFC9105F966"><enum>(C)</enum><text>any Federal,
State, or local government or private studies of person to person lending
completed or in progress on the date of enactment of this Act;</text>
</subparagraph><subparagraph id="HE99DCC39C170403498941FE80E1A06CC"><enum>(D)</enum><text>consumer privacy
and data protections, minimum credit standards, anti-money laundering and risk
management in the regulatory structure as it exists on the date of enactment of
this Act, and whether additional or alternative safeguards are needed;
and</text>
</subparagraph><subparagraph id="H9D028FC1D59D42AFA4BB650A71160B97"><enum>(E)</enum><text>the uses of person
to person lending.</text>
</subparagraph></paragraph></subsection><subsection id="HB9E213FCF0AC431183276035D568FCF3"><enum>(b)</enum><header>Report</header>
<paragraph id="HC7D5885CDC3C4735A009C20E561256E7"><enum>(1)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Comptroller General shall submit a report on the study required under
subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives.</text>
</paragraph><paragraph id="HA77A46100DC545A8B06E05055E70E6B0"><enum>(2)</enum><header>Content of
report</header><text>The report required under paragraph (1) shall include
alternative regulatory options, including—</text>
<subparagraph id="HF103B1847815429FA056A241503311D0"><enum>(A)</enum><text>the involvement of
other Federal agencies; and</text>
</subparagraph><subparagraph id="HE9C78674A0DE47418FE89431883E4EA8"><enum>(B)</enum><text>alternative
approaches by the Commission and recommendations on whether the alternative
approaches are effective.</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="H5E5701783AEC458F9D4987AAA7C19EF3"><enum>989G.</enum><header>Exemption for
nonaccelerated filers</header>
<subsection commented="no" id="HD4B8A60370DF4483BACBBD07F19669EA"><enum>(a)</enum><header>Exemption</header><text display-inline="yes-display-inline">Section 404 of the Sarbanes-Oxley Act of
2002 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H334E617411DE439BA3BED80334299012" style="OLC">
<subsection commented="no" id="H02C3B8D867A248CDB2701593712318E5"><enum>(c)</enum><header>Exemption for
smaller issuers</header><text display-inline="yes-display-inline">Subsection
(b) shall not apply with respect to any audit report prepared for an issuer
that is neither a <quote>large accelerated filer</quote> nor an
<quote>accelerated filer</quote> as those terms are defined in Rule 12b–2 of
the Commission (17 C.F.R.
240.12b–2).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H77BDD87AEA334E408D289E6346AB1BF8"><enum>(b)</enum><header>Study</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study to determine how the Commission could reduce the burden
of complying with section 404(b) of the Sarbanes-Oxley Act of 2002 for
companies whose market capitalization is between $75,000,000 and $250,000,000
for the relevant reporting period while maintaining investor protections for
such companies. The study shall also consider whether any such methods of
reducing the compliance burden or a complete exemption for such companies from
compliance with such section would encourage companies to list on exchanges in
the United States in their initial public offerings. Not later than 9 months
after the date of the enactment of this subtitle, the Commission shall transmit
a report of such study to Congress.</text>
</subsection></section><section id="H464DF51BADB84520A2C530F080259D32"><enum>989H.</enum><header>Corrective
responses by heads of certain establishments to deficiencies identified by
Inspectors General</header><text display-inline="no-display-inline">The
Chairman of the Board of Governors of the Federal Reserve System, the Chairman
of the Commodity Futures Trading Commission, the Chairman of the National
Credit Union Administration, the Director of the Pension Benefit Guaranty
Corporation, and the Chairman of the Securities and Exchange Commission shall
each—</text>
<paragraph id="H464B9E11A7E94EE5A2F2B7082E919BAE"><enum>(1)</enum><text>take action to
address deficiencies identified by a report or investigation of the Inspector
General of the establishment concerned; or</text>
</paragraph><paragraph id="HA470D8CF441E4F6B9CE923E8FE47B2E5"><enum>(2)</enum><text>certify to both
Houses of Congress that no action is necessary or appropriate in connection
with a deficiency described in paragraph (1).</text>
</paragraph></section><section id="H57A893B29918467792F0050799BC35C2"><enum>989I.</enum><header>GAO study
regarding exemption for smaller issuers</header>
<subsection id="H68ADF9162ED9455FA021FB461AE05266"><enum>(a)</enum><header>Study regarding
exemption for smaller issuers</header><text>The Comptroller General of the
United States shall carry out a study on the impact of the amendments made by
this Act to section 404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7262(b)), which shall include an analysis of—</text>
<paragraph id="H6F89DC73FB694C1EAEB0837BEBF53ED8"><enum>(1)</enum><text>whether issuers
that are exempt from such section 404(b) have fewer or more restatements of
published accounting statements than issuers that are required to comply with
such section 404(b);</text>
</paragraph><paragraph id="H93763D8E31BF44B8936A2197748D4BFD"><enum>(2)</enum><text>the cost of
capital for issuers that are exempt from such section 404(b) compared to the
cost of capital for issuers that are required to comply with such section
404(b);</text>
</paragraph><paragraph id="H676974B36AB047DB859795EFC08BE9CD"><enum>(3)</enum><text>whether there is
any difference in the confidence of investors in the integrity of financial
statements of issuers that comply with such section 404(b) and issuers that are
exempt from compliance with such section 404(b);</text>
</paragraph><paragraph id="HDD5AE8EAEDC24BE39E75826C8CFBF954"><enum>(4)</enum><text>whether issuers
that do not receive the attestation for internal controls required under such
section 404(b) should be required to disclose the lack of such attestation to
investors; and</text>
</paragraph><paragraph id="H982547E741EF43F784F4116C1C9A6A5D"><enum>(5)</enum><text>the costs and
benefits to issuers that are exempt from such section 404(b) that voluntarily
have obtained the attestation of an independent auditor.</text>
</paragraph></subsection><subsection id="HFD0E9FE65E584868A373D0D2A3FD4A9E"><enum>(b)</enum><header>Report</header><text>Not
later than 3 years after the date of enactment of this Act, the Comptroller
General shall submit to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the House of
Representatives a report on the results of the study required under subsection
(a).</text>
</subsection></section><section id="H0FC5F5996B5E43F9B91476A9C0976433"><enum>989J.</enum><header>Further
promoting the adoption of the NAIC Model Regulations that enhance protection of
seniors and other consumers</header>
<subsection id="HD67CF6ADE0AD4FBDA900C4AADEB2D294"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
treat as exempt securities described under section 3(a)(8) of the Securities
Act of 1933 (15 U.S.C. 77c(a)(8)) any insurance or endowment policy or annuity
contract or optional annuity contract—</text>
<paragraph id="H9DD4EA3F3332471DA933417FB5CF4B8F"><enum>(1)</enum><text>the value of which
does not vary according to the performance of a separate account;</text>
</paragraph><paragraph id="HADD2BB781E784300AF46568C851833E8"><enum>(2)</enum><text>that—</text>
<subparagraph id="H9F577E8CE93E41ED887483773425FE24"><enum>(A)</enum><text>satisfies standard
nonforfeiture laws or similar requirements of the applicable State at the time
of issue; or</text>
</subparagraph><subparagraph id="H6718767CBA794EB2972EA49D90E37ADA"><enum>(B)</enum><text>in the absence of
applicable standard nonforfeiture laws or requirements, satisfies the Model
Standard Nonforfeiture Law for Life Insurance or Model Standard Nonforfeiture
Law for Individual Deferred Annuities, or any successor model law, as published
by the National Association of Insurance Commissioners; and</text>
</subparagraph></paragraph><paragraph id="H0126D35C553D45C7A84C20A7904FE0B3"><enum>(3)</enum><text>that is
issued—</text>
<subparagraph id="H539B175C0C7B4D0DA42BE61719DED370"><enum>(A)</enum><text>on and after June
16, 2013, in a State, or issued by an insurance company that is domiciled in a
State, that—</text>
<clause id="HD4256F7B63E0401E9C5E8C498F83A695"><enum>(i)</enum><text>adopts rules that
govern suitability requirements in the sale of an insurance or endowment policy
or annuity contract or optional annuity contract, which shall substantially
meet or exceed the minimum requirements established by the Suitability in
Annuity Transactions Model Regulation adopted by the National Association of
Insurance Commissioners in March 2010; and</text>
</clause><clause id="H8BB88E5E4500402399677FC133AF4CC6"><enum>(ii)</enum><text>adopts rules that
substantially meet or exceed the minimum requirements of any successor
modifications to the model regulations described in subparagraph (A) within 5
years of the adoption by the Association of any further successors thereto;
or</text>
</clause></subparagraph><subparagraph id="H1A0B0E797F0F4DF4ACD67C24A3BD2912"><enum>(B)</enum><text>by an insurance
company that adopts and implements practices on a nationwide basis for the sale
of any insurance or endowment policy or annuity contract or optional annuity
contract that meet or exceed the minimum requirements established by the
National Association of Insurance Commissioners Suitability in Annuity
Transactions Model Regulation (Model 275), and any successor thereto, and is
therefore subject to examination by the State of domicile of the insurance
company, or by any other State where the insurance company conducts sales of
such products, for the purpose of monitoring compliance under this
section.</text>
</subparagraph></paragraph></subsection><subsection id="H561F1504131C4262838EB814A7AA6A09"><enum>(b)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to affect
whether any insurance or endowment policy or annuity contract or optional
annuity contract that is not described in this section is or is not an exempt
security under section 3(a)(8) of the Securities Act of 1933 (15 U.S.C.
77c(a)(8)).</text>
</subsection></section></subtitle><subtitle id="H6C3894E093944E6C95476157A4B931FE"><enum>J</enum><header>Securities and
Exchange Commission Match Funding</header>
<section id="H781DFAFA8FB6445EB1477A7F67C75D4D"><enum>991.</enum><header>Securities and
Exchange Commission match funding</header>
<subsection id="HF4615D2BEB80436DBD6AF65147F7E35B"><enum>(a)</enum><header>Match funding
authority</header>
<paragraph id="HE23F9C94120543F887B14EA3110F4785"><enum>(1)</enum><header>Amendments</header><text>Section
31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) is amended—</text>
<subparagraph id="HEA2E02BD8C0B41F9ADAD6D53195939B9"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HBB706E40D5FC4A0494C9609A67671F35" style="OLC">
<subsection id="H91901CF859064CCFBEB40461A3956A49"><enum>(a)</enum><header>Recovery of
costs of annual appropriation</header><text>The Commission shall, in accordance
with this section, collect transaction fees and assessments that are designed
to recover the costs to the Government of the annual appropriation to the
Commission by
Congress.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H08BFE3636D14426EA5D587BF8F8845D5"><enum>(B)</enum><text>in subsection
(e)(2), by striking <quote>September 30</quote> and inserting <quote>September
25</quote>;</text>
</subparagraph><subparagraph id="HC95273C835584B53AB2FB98BA3313AC4"><enum>(C)</enum><text>in subsection (g),
by striking <quote>April 30 of the fiscal year preceding the fiscal year to
which such rate applies</quote> and inserting <quote>30 days after the date on
which an Act making a regular appropriation to the Commission for such fiscal
year is enacted</quote>;</text>
</subparagraph><subparagraph id="H4AED0F9A849B4F60B319C1096664F0E2"><enum>(D)</enum><text>by striking
subsection (j) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA85FC266B5F94D8EA1DEEAA2B78FFB95" style="OLC">
<subsection id="H2A7DB370D7FC4ECEA3DA0F54E50DE2B0"><enum>(j)</enum><header>Adjustments to
fee rates</header>
<paragraph id="H85409D5BDB2645C484403242EE8F019D"><enum>(1)</enum><header>Annual
adjustment</header><text display-inline="yes-display-inline">Subject to
subsections (i)(1)(B) and (k), for each fiscal year, the Commission shall by
order adjust each of the rates applicable under subsections (b) and (c) for
such fiscal year to a uniform adjusted rate that, when applied to the baseline
estimate of the aggregate dollar amount of sales for such fiscal year, is
reasonably likely to produce aggregate fee collections under this section
(including assessments collected under subsection (d) of this section) that are
equal to the regular appropriation to the Commission by Congress for such
fiscal year.</text>
</paragraph><paragraph id="HD42C9CE83C2D4B74BA7B56D12A01B414"><enum>(2)</enum><header>Mid-year
adjustment</header><text>Subject to subsections (i)(1)(B) and (k), for each
fiscal year, the Commission shall determine, by March 1 of such fiscal year,
whether, based on the actual aggregate dollar volume of sales during the first
5 months of such fiscal year, the baseline estimate of the aggregate dollar
volume of sales used under paragraph (1) for such fiscal year is reasonably
likely to be 10 percent (or more) greater or less than the actual aggregate
dollar volume of sales for such fiscal year. If the Commission so determines,
the Commission shall by order, no later than March 1, adjust each of the rates
applicable under subsections (b) and (c) for such fiscal year to a uniform
adjusted rate that, when applied to the revised estimate of the aggregate
dollar amount of sales for the remainder of such fiscal year, is reasonably
likely to produce aggregate fee collections under this section (including fees
collected during such five-month period and assessments collected under
subsection (d) of this section) that are equal to the regular appropriation to
the Commission by Congress for such fiscal year. In making such revised
estimate, the Commission shall, after consultation with the Congressional
Budget Office and the Office of Management and Budget, use the same methodology
required by subsection (l).</text>
</paragraph><paragraph id="HE01C0B78C3D648E98CBD802784C383D5"><enum>(3)</enum><header>Review</header><text>In
exercising its authority under this subsection, the Commission shall not be
required to comply with the provisions of section 553 of title 5, United States
Code. An adjusted rate prescribed under paragraph (1) or (2) and published
under subsection (g) shall not be subject to judicial review.</text>
</paragraph><paragraph id="H962D3074180D4C8D989E921AEF799C8F"><enum>(4)</enum><header>Effective
date</header>
<subparagraph id="HC59712BF5A754761893699471A64DB6A"><enum>(A)</enum><header>Annual
adjustment</header><text>Subject to subsections (i)(1)(B) and (k), an adjusted
rate prescribed under paragraph (1) shall take effect on the later of—</text>
<clause id="H45CDB8B605194D4B8A8E335C480FF924"><enum>(i)</enum><text>the first day of
the fiscal year to which such rate applies; or</text>
</clause><clause id="H24D72DAAF9E544EEA3A9A279F3D487E7"><enum>(ii)</enum><text>60 days after the
date on which an Act making a regular appropriation to the Commission for such
fiscal year is enacted.</text>
</clause></subparagraph><subparagraph id="H6A05FFE0D67947BCBBA756F0752485F5"><enum>(B)</enum><header>Mid-year
adjustment</header><text>An adjusted rate prescribed under paragraph (2) shall
take effect on April 1 of the fiscal year to which such rate
applies.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0FFB77A3EBA542C4903A95D616CFC1B2"><enum>(E)</enum><text>in subsection (k),
by striking <quote>30 days</quote> and inserting <quote>60 days</quote>;
and</text>
</subparagraph><subparagraph id="HB7B2E7F5C1544EEDBEC85F09A282973E"><enum>(F)</enum><text>in subsection (l),
by striking <quote><header-in-text level="subsection" style="OLC">Definitions</header-in-text>.—</quote> and all that follows through
<quote><header-in-text level="paragraph" style="OLC">sales</header-in-text>.—The baseline</quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Baseline estimate of the
aggregate dollar amount of sales</header-in-text>.—The baseline</quote>.</text>
</subparagraph></paragraph><paragraph id="H91B0F82A31C1478F92CEFE474240FFB0"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
the later of—</text>
<subparagraph id="HF8202E260B0446D2844CB9A33173F79F"><enum>(A)</enum><text>October 1, 2011;
or</text>
</subparagraph><subparagraph id="H0421665B7BF54ABCA447B6C043DAD124"><enum>(B)</enum><text>the date of
enactment of an Act making a regular appropriation to the Commission for fiscal
year 2012.</text>
</subparagraph></paragraph></subsection><subsection id="H1FE7578491824400BD0546A2A10A9811"><enum>(b)</enum><header>Amendments to
registration fee provisions</header>
<paragraph id="HE0D75882FD624160A6B419A294F6FD38"><enum>(1)</enum><header>Section
6<enum-in-header>(b)</enum-in-header> of the Securities Act of
1933</header><text>Section 6(b) of the Securities Act of 1933 (15 U.S.C.
77f(b)) is amended—</text>
<subparagraph id="H4B5CA76BEB9E42B7B485C2E2D47A215B"><enum>(A)</enum><text>by striking
<quote>offsetting</quote> each place that term appears and inserting
<quote>fee</quote>;</text>
</subparagraph><subparagraph id="HE9C4C2C3291544EEBEF18CB4160F6557"><enum>(B)</enum><text>by striking
paragraphs (1), (3), (4), (6), (8), and (9);</text>
</subparagraph><subparagraph id="H0D11423203124ACD8FC38B36D0B61BF0"><enum>(C)</enum><text>by redesignating
paragraph (2) as paragraph (1);</text>
</subparagraph><subparagraph id="H664F2999050F43E4BB52C2C7B4E0AB8B"><enum>(D)</enum><text>by redesignating
paragraph (5) as paragraph (2);</text>
</subparagraph><subparagraph id="H0CCB9A7E4EE542EE9944FFF0EA13BC49"><enum>(E)</enum><text>by redesignating
paragraph (7) as paragraph (3);</text>
</subparagraph><subparagraph id="H2CBAEA1BD0FA47FE845E5AD9A62A94C3"><enum>(F)</enum><text>by redesignating
paragraph (10) as paragraph (5);</text>
</subparagraph><subparagraph id="H8365160C6ADF44A982A7B875E25C0B52"><enum>(G)</enum><text>by redesignating
paragraph (11) as paragraph (6);</text>
</subparagraph><subparagraph id="H5C78814024074FB5AA83EBB7871504A5"><enum>(H)</enum><text>in paragraph (1),
as so redesignated, by striking <quote>paragraph (5) or (6).</quote> and
inserting <quote>paragraph (2).</quote>;</text>
</subparagraph><subparagraph id="H773D10AFA02A45729BF963019F6DF975"><enum>(I)</enum><text>in paragraph (2),
as so redesignated—</text>
<clause id="H956D300CC4154039B9A9AF2DBC61587E"><enum>(i)</enum><text>by
striking <quote>of the fiscal years 2003 through 2011</quote> and inserting
<quote>fiscal year</quote>; and</text>
</clause><clause id="H162F1D875A5D4FBDAB520501565C3A69"><enum>(ii)</enum><text>by
striking <quote>paragraph (2)</quote> and inserting <quote>paragraph
(1)</quote>;</text>
</clause></subparagraph><subparagraph id="H0449AFF54BEF445E8E35CF21CA85673B"><enum>(J)</enum><text>by inserting after
paragraph (3), as so redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="H69CAA7E2F6F2460AA869FEB2C25C4727" style="OLC">
<paragraph id="H53F8B02B70C247FBB02BF50035AAA89C"><enum>(4)</enum><header>Review and
effective date</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5, United States Code. An adjusted rate prescribed under paragraph
(2) and published under paragraph (5) shall not be subject to judicial review.
An adjusted rate prescribed under paragraph (2) shall take effect on the first
day of the fiscal year to which such rate
applies.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H60AB7776D7F34DB0AAB32DCDB1791D2E"><enum>(K)</enum><text>in paragraph (5),
as redesignated, by striking <quote>April 30</quote> and inserting
<quote>August 31</quote>;</text>
</subparagraph><subparagraph id="HCE70704251054ACA92AE9EFD48514A9D"><enum>(L)</enum><text>in paragraph (6),
as so redesignated—</text>
<clause id="H86990386DF264964B944330D3D8DDC25"><enum>(i)</enum><text>by
striking <quote>of the fiscal years 2002 through 2011</quote> and inserting
<quote>fiscal year</quote>; and</text>
</clause><clause id="H290F66DC67264592B8A3C1220E922ED0"><enum>(ii)</enum><text>by
inserting at the end of the table in subparagraph (A) the following:</text>
<quoted-block display-inline="no-display-inline" id="H08B129C4E036448A9522C6E18AFBF594" style="OLC">
<table blank-lines-before="5" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-type="subformat">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="30"></colspec><colspec coldef="txt" colname="column2" colwidth="162pts" min-data-value="30"></colspec>
<tbody>
<row><entry colname="I34">2012</entry><entry colname="I07">$425,000,000</entry>
</row>
<row><entry colname="I34">2013</entry><entry colname="I07">$455,000,000</entry>
</row>
<row><entry colname="I34">2014</entry><entry colname="I07">$485,000,000</entry>
</row>
<row><entry colname="I34">2015</entry><entry colname="I07">$515,000,000</entry>
</row>
<row><entry colname="I34">2016</entry><entry colname="I07">$550,000,000</entry>
</row>
<row><entry colname="I34">2017</entry><entry colname="I07">$585,000,000</entry>
</row>
<row><entry colname="I34">2018</entry><entry colname="I07">$620,000,000</entry>
</row>
<row><entry colname="I34">2019</entry><entry colname="I07">$660,000,000</entry>
</row>
<row><entry colname="I34">2020</entry><entry colname="I07">$705,000,000</entry>
</row>
<row><entry colname="I34" rowsep="0">2021 and each fiscal year
thereafter</entry><entry colname="I07" rowsep="0">An amount that is equal to
the target fee collection amount for the prior fiscal year, adjusted by the
rate of inflation.</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="HD8A852845E8845F3B6964BC1C0D671A8"><enum>(2)</enum><header>Section
13<enum-in-header>(e)</enum-in-header> of the Securities Exchange Act of
1934</header><text>Section 13(e) of the Securities Exchange Act of 1934 (15
U.S.C. 78m(e)) is amended—</text>
<subparagraph id="HB9D9479C528449AAA43C445928B65D9A"><enum>(A)</enum><text>in paragraph (3),
by striking <quote>paragraphs (5) and (6)</quote> and inserting
<quote>paragraph (4)</quote>;</text>
</subparagraph><subparagraph id="H05EF8C4E0E77436C9EDC8F073B1A8638"><enum>(B)</enum><text>by striking
paragraphs (4), (5), and (6);</text>
</subparagraph><subparagraph id="H63AC671962B34A70B7DBBFDB62330D8C"><enum>(C)</enum><text>by inserting after
paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="H1D1F85DDB36F40F49611B1A021D74174" style="OLC">
<paragraph id="HB9D2DF2944C743B2B2470001B72E82BB"><enum>(4)</enum><header>Annual
adjustment</header><text>For each fiscal year, the Commission shall by order
adjust the rate required by paragraph (3) for such fiscal year to a rate that
is equal to the rate (expressed in dollars per million) that is applicable
under section 6(b) of the Securities Act of 1933 for such fiscal year.</text>
</paragraph><paragraph id="H801B6A95EC6B44EC81FD321E32963075"><enum>(5)</enum><header>Fee
collections</header><text>Fees collected pursuant to this subsection for fiscal
year 2012 and each fiscal year thereafter shall be deposited and credited as
general revenue of the Treasury and shall not be available for
obligation.</text>
</paragraph><paragraph id="H44E16E6D081047DA87FB51C1D9C01E3F"><enum>(6)</enum><header>Effective date;
publication</header><text>In exercising its authority under this subsection,
the Commission shall not be required to comply with the provisions of section
553 of title 5, United States Code. An adjusted rate prescribed under paragraph
(4) shall be published and take effect in accordance with section 6(b) of the
Securities Act of 1933 (15 U.S.C.
77f(b)).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H8E470966CFB24322BF08C1EE896067CA"><enum>(D)</enum><text>by striking
paragraphs (8), (9), and (10).</text>
</subparagraph></paragraph><paragraph id="HAC728453FED540F1B7D208D8A580DB04"><enum>(3)</enum><header>Section
14<enum-in-header>(g)</enum-in-header> of the Securities Exchange Act of
1934</header><text>Section 14(g) of the Securities Exchange Act of 1934 (15
U.S.C. 78n(g)) is amended—</text>
<subparagraph id="HED2A8B01DA6943B1A473D625B479EE29"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>paragraphs (5) and (6)</quote> each time that term appears
and inserting <quote>paragraph (4)</quote>;</text>
</subparagraph><subparagraph id="H519DE958D69A4DAF8EDA72F7CF3248EF"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>paragraphs (5) and (6)</quote> and inserting
<quote>paragraph (4)</quote>;</text>
</subparagraph><subparagraph id="H1AF3EC21B0E646118F714BD1A312C63F"><enum>(C)</enum><text>by striking
paragraphs (4), (5), and (6);</text>
</subparagraph><subparagraph id="HD6BF99C2566B46E4907562F14FDB8B01"><enum>(D)</enum><text>by inserting after
paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7E6246CF8520464AB40055D40DEDF0E8" style="OLC">
<paragraph id="HD4EF404CDA1C4A90818C5FFDC8CD46B9"><enum>(4)</enum><header>Annual
adjustment</header><text>For each fiscal year, the Commission shall by order
adjust the rate required by paragraphs (1) and (3) for such fiscal year to a
rate that is equal to the rate (expressed in dollars per million) that is
applicable under section 6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b))
for such fiscal year.</text>
</paragraph><paragraph id="HAFD3606C1280458DA15FA4A186858DAC"><enum>(5)</enum><header>Fee
collection</header><text>Fees collected pursuant to this subsection for fiscal
year 2012 and each fiscal year thereafter shall be deposited and credited as
general revenue of the Treasury and shall not be available for
obligation.</text>
</paragraph><paragraph id="H802A4C0FD6E44086A6B8F35B7D050D1C"><enum>(6)</enum><header>Review;
effective date; publication</header><text>In exercising its authority under
this subsection, the Commission shall not be required to comply with the
provisions of section 553 of title 5, United States Code. An adjusted rate
prescribed under paragraph (4) shall be published and take effect in accordance
with section 6(b) of the Securities Act of 1933 (15 U.S.C.
77f(b)).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H91F4B45C75954BDDA86F106BAB55AEFF"><enum>(E)</enum><text>by striking
paragraphs (8), (9), and (10); and</text>
</subparagraph><subparagraph id="HB0DF972E9A1F4ADF9ED569D905039F36"><enum>(F)</enum><text>by redesignating
paragraph (11) as paragraph (8).</text>
</subparagraph></paragraph><paragraph id="H19DF6854A482479F8ABC89B3C139DEE6"><enum>(4)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
October 1, 2011, except that for fiscal year 2012, the Commission shall publish
the rate established under section 6(b) of the Securities Act of 1933 (15
U.S.C. 77f(b)), as amended by this Act, on August 31, 2011.</text>
</paragraph></subsection><subsection id="H14CF762A4293453DB8300C89EACBD0D8"><enum>(c)</enum><header>Authorization of
appropriations</header><text>Section 35 of the Securities Exchange Act of 1934
(15 U.S.C. 78kk) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0E74E7F1A136495DB8FFDB893B706AE0" style="OLC">
<section id="H699A56C63D434D80A8DB05FC7C8B9AF7"><enum>35.</enum><header>Authorization of
appropriations</header><text display-inline="no-display-inline">In addition to
any other funds authorized to be appropriated to the Commission, there are
authorized to be appropriated to carry out the functions, powers, and duties of
the Commission—</text>
<paragraph id="H08F66EC7A4D24CF0B330DDF25125736E"><enum>(1)</enum><text>for fiscal year
2011, $1,300,000,000;</text>
</paragraph><paragraph id="H8CAEFA47CA7144D4991583A050E047C8"><enum>(2)</enum><text>for fiscal year
2012, $1,500,000,000;</text>
</paragraph><paragraph id="HD5306446A9CD4D788C94BDFE6F8584C6"><enum>(3)</enum><text>for fiscal year
2013, $1,750,000,000;</text>
</paragraph><paragraph id="H6FD884CCAB244E08AD3BF1AE43136EF7"><enum>(4)</enum><text>for fiscal year
2014, $2,000,000,000; and</text>
</paragraph><paragraph id="H62497CD871844E1F98D51502B13E8EE7"><enum>(5)</enum><text>for fiscal year
2015,
$2,250,000,000.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4669B14B104D4D2CA5C9B040B6C0897E"><enum>(d)</enum><header>Transmittal of
budget requests</header>
<paragraph id="H38D258CFE0A14BA8BEF7C58F37E40B5A"><enum>(1)</enum><header>Amendment</header><text>Section
31 of the Securities Exchange Act of 1934 (15 U.S.C. 78ee) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H13BEE625B0BB41AB9C465CD9C5CD9E88" style="OLC">
<subsection id="HB4351C99869C4B6E88182F808218C739"><enum>(m)</enum><header>Transmittal of
commission budget requests</header>
<paragraph id="H4E77B67DEB95479BAF73A4CA2A8EAF4E"><enum>(1)</enum><header>Budget
required</header><text>For fiscal year 2012, and each fiscal year thereafter,
the Commission shall prepare and submit a budget to the President. Whenever the
Commission submits a budget estimate or request to the President or the Office
of Management and Budget, the Commission shall concurrently transmit copies of
the estimate or request to the Committee on Appropriations of the Senate, the
Committee on Appropriations of the House of Representatives, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the Committee on
Financial Services of the House of Representatives.</text>
</paragraph><paragraph id="H65EBB2A2A82D495C91663B11F3B35C58"><enum>(2)</enum><header>Submission to
Congress</header><text>The President shall submit each budget submitted under
paragraph (1) to Congress, in unaltered form, together with the annual budget
for the Administration submitted by the President.</text>
</paragraph><paragraph id="H881B2DEFD10B4998B6A0A6FAD275673D"><enum>(3)</enum><header>Contents</header><text>The
Commission shall include in each budget submitted under paragraph (1)—</text>
<subparagraph id="H9E1DF3DE79D24E66915FF658C529606A"><enum>(A)</enum><text>an itemization of
the amount of funds necessary to carry out the functions of the
Commission.</text>
</subparagraph><subparagraph id="H653A9430549B482EB1D97D0B406EE79D"><enum>(B)</enum><text>an amount to be
designated as contingency funding to be used by the Commission to address
unanticipated needs; and</text>
</subparagraph><subparagraph id="H0D4DB0FC2CA04528A82B06BF5E4F0175"><enum>(C)</enum><text>a designation of
any activities of the Commission for which multi-year budget authority would be
suitable.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF51383D8F55C479D9E54C68EF1B461C9"><enum>(2)</enum><header>Budget of the
President</header><text>For fiscal year 2012, and each fiscal year thereafter,
the annual budget for the Administration submitted by the President to Congress
shall reflect the amendments made by this section.</text>
</paragraph></subsection><subsection id="HA2BCEBB0D7A84F92B39AF3FE74118627"><enum>(e)</enum><header>Securities and
exchange commission reserve fund</header>
<paragraph id="H31E7A59F7C8443D482DAC74858F1B11B"><enum>(1)</enum><header>Amendment</header><text>Section
4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), as amended by this
Act, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H958EA5D051684923BE4110412E03BE25" style="OLC">
<subsection id="HDF3BD04CCEEC4F0FA38324B047EBB7DE"><enum>(i)</enum><header>Securities and
Exchange Commission Reserve Fund</header>
<paragraph id="HC83AE7A16F8040198639E796455DD6BE"><enum>(1)</enum><header>Reserve fund
established</header><text>There is established in the Treasury of the United
States a separate fund, to be known as the <quote>Securities and Exchange
Commission Reserve Fund</quote> (referred to in this subsection as the
<quote>Reserve Fund</quote>).</text>
</paragraph><paragraph id="HD1BC087D8B014C87AB0A31B9464B4E5B"><enum>(2)</enum><header>Reserve fund
amounts</header>
<subparagraph id="H6DB7F359667A4ADC8219ED6C93CEA6B7"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), any registration
fees collected by the Commission under section 6(b) of the Securities Act of
1933 (15 U.S.C. 77f(b)) or section 24(f) of the Investment Company Act of 1940
(15 U.S.C. 80a-24(f)) shall be deposited into the Reserve Fund.</text>
</subparagraph><subparagraph id="H364E1FB350844599A0FE006037603F06"><enum>(B)</enum><header>Limitations</header><text>For
any 1 fiscal year—</text>
<clause id="HF805F81F522F4DE5BF6B3C5453A92779"><enum>(i)</enum><text>the amount
deposited in the Fund may not exceed $50,000,000; and</text>
</clause><clause id="H9DC5FB3DA93C45989780ED1361AE1A7A"><enum>(ii)</enum><text>the balance in
the Fund may not exceed $100,000,000.</text>
</clause></subparagraph><subparagraph id="HBAC71BBCF9364EFC8BA7538273517595"><enum>(C)</enum><header>Excess
fees</header><text>Any amounts in excess of the limitations described in
subparagraph (B) that the Commission collects from registration fees under
section 6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) or section 24(f)
of the Investment Company Act of 1940 (15 U.S.C. 80a-24(f)) shall be deposited
in the General Fund of the Treasury of the United States and shall not be
available for obligation by the Commission.</text>
</subparagraph></paragraph><paragraph id="HA779B97E214A4B0BB1A106BB65B27EFC"><enum>(3)</enum><header>Use of amounts
in reserve fund</header><text>The Commission may obligate amounts in the
Reserve Fund, not to exceed a total of $100,000,000 in any 1 fiscal year, as
the Commission determines is necessary to carry out the functions of the
Commission. Any amounts in the reserve fund shall remain available until
expended. Not later than 10 days after the date on which the Commission
obligates amounts under this paragraph, the Commission shall notify Congress of
the date, amount, and purpose of the obligation.</text>
</paragraph><paragraph id="H33E1E388565849A88AA99F9C874C0611"><enum>(4)</enum><header>Rule of
construction</header><text>Amounts collected and deposited in the Reserve Fund
shall not be construed to be Government funds or appropriated monies and shall
not be subject to apportionment for the purpose of chapter 15 of title 31,
United States Code, or under any other
authority.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF4C391B4E95F4BEEA8651545E8D57526"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect on
October 1, 2011.</text>
</paragraph></subsection></section></subtitle><enum>X</enum><header>Bureau of Consumer
Financial Protection</header>
<section id="H2CE23B0DDD31423BA17C0650DE5EA25D"><enum>1001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Consumer Financial Protection Act of 2010</quote>.</text>
</section><section id="H21089A348F0E4C2195CA1A0905C1A9B2"><enum>1002.</enum><header>Definitions</header><text display-inline="no-display-inline">Except as otherwise provided in this title,
for purposes of this title, the following definitions shall apply:</text>
<paragraph id="H76B1D0CA19F44BD8861971F8E9C388BF"><enum>(1)</enum><header>Affiliate</header><text>The
term <quote>affiliate</quote> means any person that controls, is controlled by,
or is under common control with another person.</text>
</paragraph><paragraph id="H06DD67968B784BE1AB80B0CB19ABEDB5"><enum>(2)</enum><header>Bureau</header><text>The
term <quote>Bureau</quote> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><paragraph id="HF0535A9424CE4E5E810D33A88CCA9564"><enum>(3)</enum><header>Business of
insurance</header><text>The term <quote>business of insurance</quote> means the
writing of insurance or the reinsuring of risks by an insurer, including all
acts necessary to such writing or reinsuring and the activities relating to the
writing of insurance or the reinsuring of risks conducted by persons who act
as, or are, officers, directors, agents, or employees of insurers or who are
other persons authorized to act on behalf of such persons.</text>
</paragraph><paragraph id="H96D53F063C044234B87A565C09C8E79D"><enum>(4)</enum><header>Consumer</header><text>The
term <term>consumer</term> means an individual or an agent, trustee, or
representative acting on behalf of an individual.</text>
</paragraph><paragraph id="H52903908617540EC868EC77EEEAE6FEC"><enum>(5)</enum><header>Consumer
financial product or service</header><text>The term <term>consumer financial
product or service</term> means any financial product or service that is
described in one or more categories under—</text>
<subparagraph id="H90818C25BA5A40DDB83CAB47FBF40CD0"><enum>(A)</enum><text>paragraph (15) and
is offered or provided for use by consumers primarily for personal, family, or
household purposes; or</text>
</subparagraph><subparagraph id="HF737427ECFBE4C1CA1F6ABC652D621BC"><enum>(B)</enum><text>clause (i), (iii),
(ix), or (x) of paragraph (15)(A), and is delivered, offered, or provided in
connection with a consumer financial product or service referred to in
subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H99FD3E8F2122420FB01FB4C4479DD581"><enum>(6)</enum><header>Covered
person</header><text>The term <term>covered person</term> means—</text>
<subparagraph id="HEB671BA35B8B4034B608B1B607025902"><enum>(A)</enum><text>any person that
engages in offering or providing a consumer financial product or service;
and</text>
</subparagraph><subparagraph id="H93678B50B78341039DF96C8638E2478F"><enum>(B)</enum><text>any affiliate of a
person described in subparagraph (A) if such affiliate acts as a service
provider to such person.</text>
</subparagraph></paragraph><paragraph id="H0A501CE6219E4CBA88DE0B4DAF90DD20"><enum>(7)</enum><header>Credit</header><text>The
term <term>credit</term> means the right granted by a person to a consumer to
defer payment of a debt, incur debt and defer its payment, or purchase property
or services and defer payment for such purchase.</text>
</paragraph><paragraph commented="no" id="HE446B35C3D3244BEAA9034BE5BE76B07"><enum>(8)</enum><header>Deposit-taking
activity</header><text>The term <term>deposit-taking activity</term>
means—</text>
<subparagraph commented="no" id="HFBAD17935E8C470DA046D3A554B7075C"><enum>(A)</enum><text>the acceptance of
deposits, maintenance of deposit accounts, or the provision of services related
to the acceptance of deposits or the maintenance of deposit accounts;</text>
</subparagraph><subparagraph commented="no" id="H2C95D6DB2D4B4EA782A173056D341BB5"><enum>(B)</enum><text>the acceptance of
funds, the provision of other services related to the acceptance of funds, or
the maintenance of member share accounts by a credit union; or</text>
</subparagraph><subparagraph commented="no" id="H9B33D4237BE0471CAB6D882AA54A530B"><enum>(C)</enum><text>the receipt of
funds or the equivalent thereof, as the Bureau may determine by rule or order,
received or held by a covered person (or an agent for a covered person) for the
purpose of facilitating a payment or transferring funds or value of funds
between a consumer and a third party.</text>
</subparagraph></paragraph><paragraph id="H5E2D923941AC44EB8732E0A8C6E4976D"><enum>(9)</enum><header>Designated
transfer date</header><text>The term <term>designated transfer date</term>
means the date established under section 1062.</text>
</paragraph><paragraph id="HB3A2A216240B4BF88FE3969D53A8C4B9"><enum>(10)</enum><header>Director</header><text>The
term <quote>Director</quote> means the Director of the Bureau.</text>
</paragraph><paragraph id="H4E53CBDC7F2F4440A69E9CBD9D523B1C"><enum>(11)</enum><header>Electronic
conduit services</header><text>The term <term>electronic conduit
services</term>—</text>
<subparagraph id="H94A3414798A24D96BB9A598FF6C395E5"><enum>(A)</enum><text>means the
provision, by a person, of electronic data transmission, routing, intermediate
or transient storage, or connections to a telecommunications system or network;
and</text>
</subparagraph><subparagraph id="H859C71848DBB4004AD5FC8C4B13251D7"><enum>(B)</enum><text>does not include a
person that provides electronic conduit services if, when providing such
services, the person—</text>
<clause id="H4842AED412994723A9C6C9AB6EBD8723"><enum>(i)</enum><text>selects or
modifies the content of the electronic data;</text>
</clause><clause id="H4F6B46C8DC924542970BADDB94FC612C"><enum>(ii)</enum><text>transmits,
routes, stores, or provides connections for electronic data, including
financial data, in a manner that such financial data is differentiated from
other types of data of the same form that such person transmits, routes, or
stores, or with respect to which, provides connections; or</text>
</clause><clause id="HF15E4A8C01D54D4188CD95C49FDC4909"><enum>(iii)</enum><text>is
a payee, payor, correspondent, or similar party to a payment transaction with a
consumer.</text>
</clause></subparagraph></paragraph><paragraph id="HE2789303C4364CDB9B64C44894FC31AA"><enum>(12)</enum><header>Enumerated
consumer laws</header><text>Except as otherwise specifically provided in
section 1029, subtitle G or subtitle H, the term <term>enumerated consumer
laws</term> means—</text>
<subparagraph id="H03A440150B4141FBBF786970531D52F3"><enum>(A)</enum><text>the Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.);</text>
</subparagraph><subparagraph id="H43AD51B0203A459F8CB2244128E73656"><enum>(B)</enum><text>the Consumer
Leasing Act of 1976 (15 U.S.C. 1667 et seq.);</text>
</subparagraph><subparagraph id="HD03926313D0A4BDB9F4CF39135CD0488"><enum>(C)</enum><text>the Electronic
Fund Transfer Act (15 U.S.C. 1693 et seq.), except with respect to section 920
of that Act;</text>
</subparagraph><subparagraph id="H82599ABCD79B4E5CAB6911BF41FFC791"><enum>(D)</enum><text>the Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.);</text>
</subparagraph><subparagraph id="HE3B11519839A437C8509EC446B12229D"><enum>(E)</enum><text>the Fair Credit
Billing Act (15 U.S.C. 1666 et seq.);</text>
</subparagraph><subparagraph id="H7A4799A47E604D968F13429D739F2B52"><enum>(F)</enum><text>the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.), except with respect to sections 615(e)
and 628 of that Act (15 U.S.C. 1681m(e), 1681w);</text>
</subparagraph><subparagraph id="HAF7D1C22DFCA44F09B26480043557708"><enum>(G)</enum><text>the Home Owners
Protection Act of 1998 (12 U.S.C. 4901 et seq.);</text>
</subparagraph><subparagraph id="H5696B3524B6B4697902E6FC0CA1AF855"><enum>(H)</enum><text>the Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.);</text>
</subparagraph><subparagraph id="HCEE1AC6EDFEB4965A432F7735E4B3723"><enum>(I)</enum><text>subsections (b)
through (f) of section 43 of the Federal Deposit Insurance Act (12 U.S.C.
1831t(c)–(f));</text>
</subparagraph><subparagraph id="H5E8CAB89056948BCA24CDFA329D4B70A"><enum>(J)</enum><text>sections 502
through 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802–6809) except for
section 505 as it applies to section 501(b);</text>
</subparagraph><subparagraph id="HB18896C83B5E4B48AB3B5DF305E66758"><enum>(K)</enum><text>the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);</text>
</subparagraph><subparagraph id="H0933FDCB490A4AB38D6C53AA438AF186"><enum>(L)</enum><text>the Home Ownership
and Equity Protection Act of 1994 (15 U.S.C. 1601 note);</text>
</subparagraph><subparagraph id="H37B3ADCFF67F4BFDAE0E5763C58C5C60"><enum>(M)</enum><text>the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);</text>
</subparagraph><subparagraph id="H276466C79F194DF694DCA1BBBF5BA587"><enum>(N)</enum><text>the S.A.F.E.
Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.);</text>
</subparagraph><subparagraph id="H256D54B680A840CFBFF84E8C26677004"><enum>(O)</enum><text>the Truth in
Lending Act (15 U.S.C. 1601 et seq.);</text>
</subparagraph><subparagraph id="H00F4CA8D35614971933C91E4C4EDCEDE"><enum>(P)</enum><text>the Truth in
Savings Act (12 U.S.C. 4301 et seq.);</text>
</subparagraph><subparagraph id="HC1FB64EA9F1E4C8AA7E1AB31D14B03EA"><enum>(Q)</enum><text>section 626 of the
Omnibus Appropriations Act, 2009 (Public Law 111–8); and</text>
</subparagraph><subparagraph id="H8A983122A6544442B34ACA15668E263C"><enum>(R)</enum><text>the Interstate
Land Sales Full Disclosure Act (15 U.S.C. 1701).</text>
</subparagraph></paragraph><paragraph id="HBE330A9BDCBC498FBF77E522917A566B"><enum>(13)</enum><header>Fair
Lending</header><text>The term <term>fair lending</term> means fair, equitable,
and nondiscriminatory access to credit for consumers.</text>
</paragraph><paragraph id="H647D75D889494A01BBDE0D231B2B37C8"><enum>(14)</enum><header>Federal
consumer financial law</header><text>The term <term>Federal consumer financial
law</term> means the provisions of this title, the enumerated consumer laws,
the laws for which authorities are transferred under subtitles F and H, and any
rule or order prescribed by the Bureau under this title, an enumerated consumer
law, or pursuant to the authorities transferred under subtitles F and H. The
term does not include the Federal Trade Commission Act.</text>
</paragraph><paragraph id="HA96AC526DC3344EE8FD8BF355854A2F9"><enum>(15)</enum><header>Financial
product or service</header>
<subparagraph id="HA4B8AD2CE15B49FABFC7668823EE2E59"><enum>(A)</enum><header>In
general</header><text>The term <term>financial product or service</term>
means—</text>
<clause id="H1CE4A5C14F0443D8B0CEB5AF2070D823"><enum>(i)</enum><text>extending credit
and servicing loans, including acquiring, purchasing, selling, brokering, or
other extensions of credit (other than solely extending commercial credit to a
person who originates consumer credit transactions);</text>
</clause><clause id="HF61C09E8C3D049B7A376B0DEECA4E46C"><enum>(ii)</enum><text>extending or
brokering leases of personal or real property that are the functional
equivalent of purchase finance arrangements, if—</text>
<subclause id="H891EE0344EAF4FD4A436968F000F2E5C"><enum>(I)</enum><text>the lease is on a
non-operating basis;</text>
</subclause><subclause id="H1F78CD69323243AE90A9960584654C7E"><enum>(II)</enum><text>the initial term
of the lease is at least 90 days; and</text>
</subclause><subclause id="H41478007E08741DD9209BDE8C60092A6"><enum>(III)</enum><text>in the case of a
lease involving real property, at the inception of the initial lease, the
transaction is intended to result in ownership of the leased property to be
transferred to the lessee, subject to standards prescribed by the
Bureau;</text>
</subclause></clause><clause id="H9FFEA47D7065458392B880AA753FDE13"><enum>(iii)</enum><text>providing real
estate settlement services, except such services excluded under subparagraph
(C), or performing appraisals of real estate or personal property;</text>
</clause><clause id="H1D9362C46DDF465CBC83EA5AD08AF64C"><enum>(iv)</enum><text>engaging in
deposit-taking activities, transmitting or exchanging funds, or otherwise
acting as a custodian of funds or any financial instrument for use by or on
behalf of a consumer;</text>
</clause><clause id="HE9EF6299EE294BA0BF2AA158BE8F8EF0"><enum>(v)</enum><text>selling,
providing, or issuing stored value or payment instruments, except that, in the
case of a sale of, or transaction to reload, stored value, only if the seller
exercises substantial control over the terms or conditions of the stored value
provided to the consumer where, for purposes of this clause—</text>
<subclause id="HDE83BDD930684852BEB582C88D6EB1E6"><enum>(I)</enum><text>a
seller shall not be found to exercise substantial control over the terms or
conditions of the stored value if the seller is not a party to the contract
with the consumer for the stored value product, and another person is
principally responsible for establishing the terms or conditions of the stored
value; and</text>
</subclause><subclause id="H7B128D71B2CF465090217DF80BC82ED1"><enum>(II)</enum><text>advertising the
nonfinancial goods or services of the seller on the stored value card or device
is not in itself an exercise of substantial control over the terms or
conditions;</text>
</subclause></clause><clause id="H25B485DD480940E28958590510EEF416"><enum>(vi)</enum><text>providing check
cashing, check collection, or check guaranty services;</text>
</clause><clause id="H46F1C96FBB4C443FB8560580F50DB07E"><enum>(vii)</enum><text>providing
payments or other financial data processing products or services to a consumer
by any technological means, including processing or storing financial or
banking data for any payment instrument, or through any payments systems or
network used for processing payments data, including payments made through an
online banking system or mobile telecommunications network, except that a
person shall not be deemed to be a covered person with respect to financial
data processing solely because the person—</text>
<subclause id="H2C26B66C385D4FC2BFB10A623DA1FE78"><enum>(I)</enum><text>is a merchant,
retailer, or seller of any nonfinancial good or service who engages in
financial data processing by transmitting or storing payments data about a
consumer exclusively for purpose of initiating payments instructions by the
consumer to pay such person for the purchase of, or to complete a commercial
transaction for, such nonfinancial good or service sold directly by such person
to the consumer; or</text>
</subclause><subclause id="H686B5B3DB905430DAF4FFBABFDCE95DC"><enum>(II)</enum><text>provides access
to a host server to a person for purposes of enabling that person to establish
and maintain a website;</text>
</subclause></clause><clause id="HE736E9EEC9FA44A3B66B3619CC200A7C"><enum>(viii)</enum><text>providing
financial advisory services (other than services relating to securities
provided by a person regulated by the Commission or a person regulated by a
State securities Commission, but only to the extent that such person acts in a
regulated capacity) to consumers on individual financial matters or relating to
proprietary financial products or services (other than by publishing any bona
fide newspaper, news magazine, or business or financial publication of general
and regular circulation, including publishing market data, news, or data
analytics or investment information or recommendations that are not tailored to
the individual needs of a particular consumer), including—</text>
<subclause id="HFA05A11CC237424CA57AAA2969625D60"><enum>(I)</enum><text>providing credit
counseling to any consumer; and</text>
</subclause><subclause id="H68B69FA065774F3C95455D2053B392DD"><enum>(II)</enum><text>providing
services to assist a consumer with debt management or debt settlement,
modifying the terms of any extension of credit, or avoiding foreclosure;</text>
</subclause></clause><clause id="H11EC2E093B6643D28541581411B08B6B"><enum>(ix)</enum><text>collecting,
analyzing, maintaining, or providing consumer report information or other
account information, including information relating to the credit history of
consumers, used or expected to be used in connection with any decision
regarding the offering or provision of a consumer financial product or service,
except to the extent that—</text>
<subclause id="H38A8A92BBEC446D993F74079A99AC491"><enum>(I)</enum><text>a
person—</text>
<item id="HA09CECA9A02D4630BC9F84EBBE937866"><enum>(aa)</enum><text>collects,
analyzes, or maintains information that relates solely to the transactions
between a consumer and such person;</text>
</item><item id="HAAB7920BFDCC4FCDAF973A3482F9044E"><enum>(bb)</enum><text>provides the
information described in item (aa) to an affiliate of such person; or</text>
</item><item id="HE403A7DA469F43D98BEED33664636185"><enum>(cc)</enum><text>provides
information that is used or expected to be used solely in any decision
regarding the offering or provision of a product or service that is not a
consumer financial product or service, including a decision for employment,
government licensing, or a residential lease or tenancy involving a consumer;
and</text>
</item></subclause><subclause id="HEF2E36859EB3416F92DBF7B6898CC7A5"><enum>(II)</enum><text>the information
described in subclause (I)(aa) is not used by such person or affiliate in
connection with any decision regarding the offering or provision of a consumer
financial product or service to the consumer, other than credit described in
section 1027(a)(2)(A);</text>
</subclause></clause><clause id="H3C00FD81659046039ED716B73F3BC60F"><enum>(x)</enum><text>collecting debt
related to any consumer financial product or service; and</text>
</clause><clause id="H1FE36F0E430247A0901C9481387F7E84"><enum>(xi)</enum><text>such other
financial product or service as may be defined by the Bureau, by regulation,
for purposes of this title, if the Bureau finds that such financial product or
service is—</text>
<subclause id="H872CB217E4BF4F929A6C405DF775A793"><enum>(I)</enum><text>entered into or
conducted as a subterfuge or with a purpose to evade any Federal consumer
financial law; or</text>
</subclause><subclause id="HD503BF2442C448BA9E5E8ECABB152D86"><enum>(II)</enum><text>permissible for a
bank or for a financial holding company to offer or to provide under any
provision of a Federal law or regulation applicable to a bank or a financial
holding company, and has, or likely will have, a material impact on
consumers.</text>
</subclause></clause></subparagraph><subparagraph id="H784B3006CFCE47EC942E369D595E9B0F"><enum>(B)</enum><header>Rule of
construction</header>
<clause id="HF01A748DD83F428C81E854F93273D5E1"><enum>(i)</enum><header>In
general</header><text>For purposes of subparagraph (A)(xi)(II), and subject to
clause (ii) of this subparagraph, the following activities provided to a
covered person shall not, for purposes of this title, be considered incidental
or complementary to a financial activity permissible for a financial holding
company to engage in under any provision of a Federal law or regulation
applicable to a financial holding company:</text>
<subclause id="H4564D2AF42004B10A64AFCD012DCD40F"><enum>(I)</enum><text>Providing
information products or services to a covered person for identity
authentication.</text>
</subclause><subclause id="HC7F4D7598588445FA43699631A9B425A"><enum>(II)</enum><text>Providing
information products or services for fraud or identify theft detection,
prevention, or investigation.</text>
</subclause><subclause id="H71FEDDE964BE45CEB87A1D542FAA3964"><enum>(III)</enum><text>Providing
document retrieval or delivery services.</text>
</subclause><subclause id="H3987D00044F14412BE21A90C34288AC8"><enum>(IV)</enum><text>Providing public
records information retrieval.</text>
</subclause><subclause id="H9D7045140EE44970AD23B3808EF83793"><enum>(V)</enum><text>Providing
information products or services for anti-money laundering activities.</text>
</subclause></clause><clause id="HECF5237541A143B8BFB6E05998FD6B11"><enum>(ii)</enum><header>Limitation</header><text>Nothing
in clause (i) may be construed as modifying or limiting the authority of the
Bureau to exercise any—</text>
<subclause id="H44D70B99706A47A499BA440711A83470"><enum>(I)</enum><text>examination or
enforcement powers authority under this title with respect to a covered person
or service provider engaging in an activity described in subparagraph (A)(ix);
or</text>
</subclause><subclause id="H821AC8CDEDAA400B8814A9C96F2EDFD7"><enum>(II)</enum><text>powers authorized
by this title to prescribe rules, issue orders, or take other actions under any
enumerated consumer law or law for which the authorities are transferred under
subtitle F or H.</text>
</subclause></clause></subparagraph><subparagraph id="H0ACE17CA0FC244E188F1BD5FE7F27D38"><enum>(C)</enum><header>Exclusions</header><text>The
term <quote>financial product or service</quote> does not include—</text>
<clause id="H2F883FEF6D7549DFAF396E19CBB1A29F"><enum>(i)</enum><text>the
business of insurance; or</text>
</clause><clause id="H9EA313FD2A6E4C558FC5A600809B68CD"><enum>(ii)</enum><text>electronic
conduit services.</text>
</clause></subparagraph></paragraph><paragraph id="H3C807F005DE44D288B9E5F69757C6326"><enum>(16)</enum><header>Foreign
exchange</header><text>The term <term>foreign exchange</term> means the
exchange, for compensation, of currency of the United States or of a foreign
government for currency of another government.</text>
</paragraph><paragraph id="H89E8912F763A49E4AA13594EEF56DA95"><enum>(17)</enum><header>Insured credit
union</header><text>The term <term>insured credit union</term> has the same
meaning as in section 101 of the Federal Credit Union Act (12 U.S.C.
1752).</text>
</paragraph><paragraph id="HC389521A3BCE43D39715A28FF885EF99"><enum>(18)</enum><header>Payment
instrument</header><text>The term <term>payment instrument</term> means a
check, draft, warrant, money order, traveler’s check, electronic instrument, or
other instrument, payment of funds, or monetary value (other than
currency).</text>
</paragraph><paragraph id="HE74A0A694670498FBD3E8014D22162DB"><enum>(19)</enum><header>Person</header><text>The
term <term>person</term> means an individual, partnership, company,
corporation, association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity.</text>
</paragraph><paragraph id="H84B476B9CF854FD0B0B0CA63F7ACDCEA"><enum>(20)</enum><header>Person
regulated by the commodity futures trading commission</header><text>The term
<term>person regulated by the Commodity Futures Trading Commission</term> means
any person that is registered, or required by statute or regulation to be
registered, with the Commodity Futures Trading Commission, but only to the
extent that the activities of such person are subject to the jurisdiction of
the Commodity Futures Trading Commission under the Commodity Exchange
Act.</text>
</paragraph><paragraph id="H3C7E3DF6A2084ECC8B8C146D74491BA5"><enum>(21)</enum><header>Person
regulated by the commission</header><text>The term <term>person regulated by
the Commission</term> means a person who is—</text>
<subparagraph id="H81A5FF1492CE4E63AD6C489FF011CCF9"><enum>(A)</enum><text>a broker or dealer
that is required to be registered under the Securities Exchange Act of
1934;</text>
</subparagraph><subparagraph id="HA2AFB05CF7DC4146B76236FA887C3CAF"><enum>(B)</enum><text>an investment
adviser that is registered under the Investment Advisers Act of 1940;</text>
</subparagraph><subparagraph id="HF2A3537196D84AA78C5077056FE4966D"><enum>(C)</enum><text>an investment
company that is required to be registered under the Investment Company Act of
1940, and any company that has elected to be regulated as a business
development company under that Act;</text>
</subparagraph><subparagraph id="H92445BDB9CCB4A8BA80E7B35B0C10177"><enum>(D)</enum><text>a national
securities exchange that is required to be registered under the Securities
Exchange Act of 1934;</text>
</subparagraph><subparagraph id="H33C219533E254C1BA6DA9AF0869538BB"><enum>(E)</enum><text>a transfer agent
that is required to be registered under the Securities Exchange Act of
1934;</text>
</subparagraph><subparagraph id="H10465D68AE044A6CBEBAECFB317E3041"><enum>(F)</enum><text>a clearing
corporation that is required to be registered under the Securities Exchange Act
of 1934;</text>
</subparagraph><subparagraph id="H981BD0006C5841159B323B73C5E73D18"><enum>(G)</enum><text>any
self-regulatory organization that is required to be registered with the
Commission;</text>
</subparagraph><subparagraph id="HCFA4BFECCCBF49B8B049DA39D226698F"><enum>(H)</enum><text>any nationally
recognized statistical rating organization that is required to be registered
with the Commission;</text>
</subparagraph><subparagraph id="HDFD83359791340CB9667722A48D0DEA8"><enum>(I)</enum><text>any securities
information processor that is required to be registered with the
Commission;</text>
</subparagraph><subparagraph id="H245D65D4C93044AABC40930AF99055F1"><enum>(J)</enum><text>any municipal
securities dealer that is required to be registered with the Commission;</text>
</subparagraph><subparagraph id="H65D4C4E11D7A46669474CDF898848593"><enum>(K)</enum><text>any other person
that is required to be registered with the Commission under the Securities
Exchange Act of 1934; and</text>
</subparagraph><subparagraph id="H3C0CFC4B05CB413D988D5E16D788F2F0"><enum>(L)</enum><text>any employee,
agent, or contractor acting on behalf of, registered with, or providing
services to, any person described in any of subparagraphs (A) through (K), but
only to the extent that any person described in any of subparagraphs (A)
through (K), or the employee, agent, or contractor of such person, acts in a
regulated capacity.</text>
</subparagraph></paragraph><paragraph id="H7ACFDCAFC76F45FC9E936DD14995AF02"><enum>(22)</enum><header>Person
regulated by a State insurance regulator</header><text>The term <term>person
regulated by a State insurance regulator</term> means any person that is
engaged in the business of insurance and subject to regulation by any State
insurance regulator, but only to the extent that such person acts in such
capacity.</text>
</paragraph><paragraph id="H87915E393E9E4877A7196A537515C466"><enum>(23)</enum><header>Person that
performs income tax preparation activities for consumers</header><text>The term
<term>person that performs income tax preparation activities for
consumers</term> means—</text>
<subparagraph id="HF5B35488CDDA46B7960E15C94DE4CA77"><enum>(A)</enum><text>any tax return
preparer (as defined in section 7701(a)(36) of the Internal Revenue Code of
1986), regardless of whether compensated, but only to the extent that the
person acts in such capacity;</text>
</subparagraph><subparagraph id="H192898651FED4261AAA79D89C7FCA2FF"><enum>(B)</enum><text>any person
regulated by the Secretary under section 330 of title 31, United States Code,
but only to the extent that the person acts in such capacity; and</text>
</subparagraph><subparagraph id="H75ECCC102E044168934704F841AA6C8D"><enum>(C)</enum><text>any authorized IRS
e-file Providers (as defined for purposes of section 7216 of the Internal
Revenue Code of 1986), but only to the extent that the person acts in such
capacity.</text>
</subparagraph></paragraph><paragraph id="H38CF876038E742B39063364FFF3EB7A8"><enum>(24)</enum><header>Prudential
regulator</header><text>The term <term>prudential regulator</term>
means—</text>
<subparagraph id="H78A313CA5D574EA98842AAED031B4710"><enum>(A)</enum><text>in the case of an
insured depository institution or depository institution holding company (as
defined in section 3 of the Federal Deposit Insurance Act), or subsidiary of
such institution or company, the appropriate Federal banking agency, as that
term is defined in section 3 of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph commented="no" id="H99B2B60EA2644AB9B90A580F98848CFD"><enum>(B)</enum><text>in the case of an
insured credit union, the National Credit Union Administration.</text>
</subparagraph></paragraph><paragraph id="H201DC8B15BBB442C849EE3469F57E422"><enum>(25)</enum><header>Related
person</header><text>The term <quote>related person</quote>—</text>
<subparagraph id="HBD9E6829049F4A88995DAFC44E78E4F9"><enum>(A)</enum><text>shall apply only
with respect to a covered person that is not a bank holding company (as that
term is defined in section 2 of the Bank Holding Company Act of 1956), credit
union, or depository institution;</text>
</subparagraph><subparagraph id="H8FBE2C64CF9D4462A707A75AB0A62EFD"><enum>(B)</enum><text>shall be deemed to
mean a covered person for all purposes of any provision of Federal consumer
financial law; and</text>
</subparagraph><subparagraph id="H5B00D0FFE7234322B3D014A5B24CC73B"><enum>(C)</enum><text>means—</text>
<clause id="H441AA22C3E1E4F66A884187A7DE0CB42"><enum>(i)</enum><text>any
director, officer, or employee charged with managerial responsibility for, or
controlling shareholder of, or agent for, such covered person;</text>
</clause><clause id="HC8C795C8AB41445DB648AF90A32B3DF4"><enum>(ii)</enum><text>any
shareholder, consultant, joint venture partner, or other person, as determined
by the Bureau (by rule or on a case-by-case basis) who materially participates
in the conduct of the affairs of such covered person; and</text>
</clause><clause id="H47A47F263B604AAA8CAA3B4166D569B7"><enum>(iii)</enum><text>any independent
contractor (including any attorney, appraiser, or accountant) who knowingly or
recklessly participates in any—</text>
<subclause id="H9EBDFB326A504845B2239BD26472A2CF"><enum>(I)</enum><text>violation of any
provision of law or regulation; or</text>
</subclause><subclause id="HF4B0AA30340D4B8BA37FBEE2097B4E3A"><enum>(II)</enum><text>breach of a
fiduciary duty.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H4680B71E53D146C29F1F897DE3C6F8C7"><enum>(26)</enum><header>Service
provider</header>
<subparagraph id="H814A410D7067473981FD584D0B309D5A"><enum>(A)</enum><header>In
general</header><text>The term <term>service provider</term> means any person
that provides a material service to a covered person in connection with the
offering or provision by such covered person of a consumer financial product or
service, including a person that—</text>
<clause id="H126E9CA6EA13442ABFB05401843D0A00"><enum>(i)</enum><text>participates in
designing, operating, or maintaining the consumer financial product or service;
or</text>
</clause><clause id="H1AF293B5541E45E3A122D4BBCAE298CC"><enum>(ii)</enum><text>processes
transactions relating to the consumer financial product or service (other than
unknowingly or incidentally transmitting or processing financial data in a
manner that such data is undifferentiated from other types of data of the same
form as the person transmits or processes).</text>
</clause></subparagraph><subparagraph id="HA7D2C68194504EC6891502584C41E185"><enum>(B)</enum><header>Exceptions</header><text>The
term <term>service provider</term> does not include a person solely by virtue
of such person offering or providing to a covered person—</text>
<clause id="H1138077DF6B245ADBF478B6F9DBE8652"><enum>(i)</enum><text>a
support service of a type provided to businesses generally or a similar
ministerial service; or</text>
</clause><clause id="HED15F1F144FE4C08BE9F1F8E44EEBC55"><enum>(ii)</enum><text>time or space for
an advertisement for a consumer financial product or service through print,
newspaper, or electronic media.</text>
</clause></subparagraph><subparagraph id="H2351B8F261D5461C96EB7F4F998BF5E6"><enum>(C)</enum><header>Rule of
construction</header><text>A person that is a service provider shall be deemed
to be a covered person to the extent that such person engages in the offering
or provision of its own consumer financial product or service.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD2F8902345854254B16175EE6D9CF3A6"><enum>(27)</enum><header>State</header><text>The
term <term>State</term> means any State, territory, or possession of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the
United States Virgin Islands or any federally recognized Indian tribe, as
defined by the Secretary of the Interior under section 104(a) of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a–1(a)).</text>
</paragraph><paragraph id="H38747845DB3E460BA7BE8A95FBD66F7B"><enum>(28)</enum><header>Stored
value</header>
<subparagraph id="HE180CD0483D544178351DEC36A12A0F0"><enum>(A)</enum><header>In
general</header><text>The term <term>stored value</term> means funds or
monetary value represented in any electronic format, whether or not specially
encrypted, and stored or capable of storage on electronic media in such a way
as to be retrievable and transferred electronically, and includes a prepaid
debit card or product, or any other similar product, regardless of whether the
amount of the funds or monetary value may be increased or reloaded.</text>
</subparagraph><subparagraph id="H58624557578443E19ECDE04D4070C805"><enum>(B)</enum><header>Exclusion</header><text>Notwithstanding
subparagraph (A), the term <quote>stored value</quote> does not include a
special purpose card or certificate, which shall be defined for purposes of
this paragraph as funds or monetary value represented in any electronic format,
whether or not specially encrypted, that is—</text>
<clause id="H9218BE8208DD4A2B88F6E5C6CDD46472"><enum>(i)</enum><text>issued by a
merchant, retailer, or other seller of nonfinancial goods or services;</text>
</clause><clause id="H7535B79D88DF4E49B40E6820143390C5"><enum>(ii)</enum><text>redeemable only
for transactions with the merchant, retailer, or seller of nonfinancial goods
or services or with an affiliate of such person, which affiliate itself is a
merchant, retailer, or seller of nonfinancial goods or services;</text>
</clause><clause id="H037491E2FC4641A59C85151E25F47760"><enum>(iii)</enum><text>issued in a
specified amount that, except in the case of a card or product used solely for
telephone services, may not be increased or reloaded;</text>
</clause><clause id="H974B4144E5754D8487C7BEDC6B82DCBC"><enum>(iv)</enum><text>purchased on a
prepaid basis in exchange for payment; and</text>
</clause><clause id="H914A36B0C2CB49A1BA45EFDD053102A6"><enum>(v)</enum><text>honored upon
presentation to such merchant, retailer, or seller of nonfinancial goods or
services or an affiliate of such person, which affiliate itself is a merchant,
retailer, or seller of nonfinancial goods or services, only for any
nonfinancial goods or services.</text>
</clause></subparagraph></paragraph><paragraph id="H4A36BBB71FF44FF59E21E1AA9E957D60"><enum>(29)</enum><header>Transmitting or
exchanging funds</header><text>The term <term>transmitting or exchanging
funds</term> means receiving currency, monetary value, or payment instruments
from a consumer for the purpose of exchanging or transmitting the same by any
means, including transmission by wire, facsimile, electronic transfer, courier,
the Internet, or through bill payment services or through other businesses that
facilitate third-party transfers within the United States or to or from the
United States.</text>
</paragraph></section><subtitle id="HDAC519CFB440424FA3A9730161674839"><enum>A</enum><header>Bureau of Consumer
Financial Protection</header>
<section id="HD98D3FA29AC5448AAB9598F931F847B4"><enum>1011.</enum><header>Establishment
of the Bureau of Consumer Financial Protection</header>
<subsection id="H84886889ECBA43989BB08716177E16C5"><enum>(a)</enum><header>Bureau
established</header><text>There is established in the Federal Reserve System,
an independent bureau to be known as the <quote>Bureau of Consumer Financial
Protection</quote>, 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.</text>
</subsection><subsection id="H645C927C28D84596B610575E16F9F834"><enum>(b)</enum><header>Director and
deputy director</header>
<paragraph id="HECBF98594E3E4AFC9D3E89EA8D58FB94"><enum>(1)</enum><header>In
general</header><text>There is established the position of the Director, who
shall serve as the head of the Bureau.</text>
</paragraph><paragraph id="H75C0A0B2981E4DEEB0027B0D3001FDA2"><enum>(2)</enum><header>Appointment</header><text>Subject
to paragraph (3), the Director shall be appointed by the President, by and with
the advice and consent of the Senate.</text>
</paragraph><paragraph id="H3D8264D50D5248199BA189030F088E5A"><enum>(3)</enum><header>Qualification</header><text>The
President shall nominate the Director from among individuals who are citizens
of the United States.</text>
</paragraph><paragraph id="H89F9996F9FC848339B18EE52AB879758"><enum>(4)</enum><header>Compensation</header><text>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.</text>
</paragraph><paragraph id="HEAA571F94A8B4932AD3521CABD19DEA0"><enum>(5)</enum><header>Deputy
director</header><text>There is established the position of Deputy Director,
who shall—</text>
<subparagraph id="HA54A073D50F1428F8CF3E7188419EB04"><enum>(A)</enum><text>be appointed by
the Director; and</text>
</subparagraph><subparagraph id="HE2E78F472C934B3797DD77E9041B100B"><enum>(B)</enum><text>serve as acting
Director in the absence or unavailability of the Director.</text>
</subparagraph></paragraph></subsection><subsection id="H0F4442476BCE4C2BA092BD486AE79A2C"><enum>(c)</enum><header>Term</header>
<paragraph id="H3438CCBE2DC447D79F6DFC2EE0852429"><enum>(1)</enum><header>In
general</header><text>The Director shall serve for a term of 5 years.</text>
</paragraph><paragraph id="HDED4EC33A98D4FC383CF64A5F4F9B8EE"><enum>(2)</enum><header>Expiration of
term</header><text>An individual may serve as Director after the expiration of
the term for which appointed, until a successor has been appointed and
qualified.</text>
</paragraph><paragraph id="H62CED3DD8D594A7EB99C599C622040E5"><enum>(3)</enum><header>Removal for
cause</header><text>The President may remove the Director for inefficiency,
neglect of duty, or malfeasance in office.</text>
</paragraph></subsection><subsection id="HB4282985B20946F5AA6320B589E0E50A"><enum>(d)</enum><header>Service
restriction</header><text>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.</text>
</subsection><subsection id="H8D04B39A30D94ABAA587A99DCA337FB3"><enum>(e)</enum><header>Offices</header><text>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.</text>
</subsection></section><section id="HCF250DFB396B47BF8DD9FE7A3D5D6D21"><enum>1012.</enum><header>Executive and
administrative powers</header>
<subsection id="H0D58CA7B63444908B7646C9F6302FB9A"><enum>(a)</enum><header>Powers of the
bureau</header><text>The Bureau is authorized to establish the general policies
of the Bureau with respect to all executive and administrative functions,
including—</text>
<paragraph id="H84FDE9C1AC7F45FBA3E65C443FC488BF"><enum>(1)</enum><text>the establishment
of rules for conducting the general business of the Bureau, in a manner not
inconsistent with this title;</text>
</paragraph><paragraph id="H7A945EF00F2C4C3F8B50C71BAAE023F9"><enum>(2)</enum><text>to bind the Bureau
and enter into contracts;</text>
</paragraph><paragraph id="H69E33C56AB6241D785F5B871E9A2F1CB"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="HB1A2939B56D24446BBAE6C08463124E0"><enum>(4)</enum><text>to coordinate and
oversee the operation of all administrative, enforcement, and research
activities of the Bureau;</text>
</paragraph><paragraph id="H2E6F0BF018A440CAAD3BEA7F05B401CF"><enum>(5)</enum><text>to adopt and use a
seal;</text>
</paragraph><paragraph id="H1821A6E7E4FF43A1AB166CACC2112A14"><enum>(6)</enum><text>to determine the
character of and the necessity for the obligations and expenditures of the
Bureau;</text>
</paragraph><paragraph id="HE72D09CCEBFF4B5BA21B4D03A3C55A49"><enum>(7)</enum><text>the appointment
and supervision of personnel employed by the Bureau;</text>
</paragraph><paragraph id="HE21645BB416A4C1885410B2E9D2BBC81"><enum>(8)</enum><text>the distribution
of business among personnel appointed and supervised by the Director and among
administrative units of the Bureau;</text>
</paragraph><paragraph id="HEA281DCDD97B47658302CAFFD75B36CD"><enum>(9)</enum><text>the use and
expenditure of funds;</text>
</paragraph><paragraph id="H3870899D890D4273A42BA93ABAC62072"><enum>(10)</enum><text>implementing the
Federal consumer financial laws through rules, orders, guidance,
interpretations, statements of policy, examinations, and enforcement actions;
and</text>
</paragraph><paragraph id="HA4AF9F9AB4864C48ACAF3613C1675109"><enum>(11)</enum><text>performing such
other functions as may be authorized or required by law.</text>
</paragraph></subsection><subsection id="HD4B08C5498244D128CCB2743A2E2B507"><enum>(b)</enum><header>Delegation of
authority</header><text>The Director of the Bureau may delegate to any duly
authorized employee, representative, or agent any power vested in the Bureau by
law.</text>
</subsection><subsection id="HD81D6AC5669B4CCB8F7B86DEEF953B62"><enum>(c)</enum><header>Autonomy of the
bureau</header>
<paragraph id="H1AC4611ABFAE4B10B4A5621D3DFF6774"><enum>(1)</enum><header>Coordination
with the board of governors</header><text>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.</text>
</paragraph><paragraph id="H852A68C4B41441C2A751B3E6AAFB5941"><enum>(2)</enum><header>Autonomy</header><text>Notwithstanding
the authorities granted to the Board of Governors under the Federal Reserve
Act, the Board of Governors may not—</text>
<subparagraph id="HE0A9932BC79B4E9B819879AC76CC4B62"><enum>(A)</enum><text>intervene in any
matter or proceeding before the Director, including examinations or enforcement
actions, unless otherwise specifically provided by law;</text>
</subparagraph><subparagraph id="H8FE02D959FFA44E78F03B904D975BD10"><enum>(B)</enum><text>appoint, direct,
or remove any officer or employee of the Bureau; or</text>
</subparagraph><subparagraph id="HC3037CE0EB0F4D0A8202011AEC907B17"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HC6D5C5589F2140D08D40B54F2993F872"><enum>(3)</enum><header>Rules and
orders</header><text>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.</text>
</paragraph><paragraph id="H6F753FEA075C4CA194111EA87ADB9A12"><enum>(4)</enum><header>Recommendations
and testimony</header><text>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.</text>
</paragraph><paragraph id="H86516713AC9B4CCDA1864C72EC379569"><enum>(5)</enum><header>Clarification of
autonomy of the Bureau in legal proceedings</header><text>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.</text>
</paragraph></subsection></section><section id="H1DEF021146954561B61041D34D7D36D6"><enum>1013.</enum><header>Administration</header>
<subsection id="H91D2381B630646CBBA03D7FAA8F94B2A"><enum>(a)</enum><header>Personnel</header>
<paragraph id="HAE16FB48530140AA84E50D3197C55314"><enum>(1)</enum><header>Appointment</header>
<subparagraph id="H1C6B32EFBC754E74A4067E82C4153FEF"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H2461AB6A1CD541B39E724F3BFE2CF839"><enum>(B)</enum><header>Employees of the
bureau</header><text>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.</text>
</subparagraph><subparagraph id="H72D8464BDFFE42BEB4165EDD27692EE1"><enum>(C)</enum><header>Waiver
authority</header>
<clause id="HE485096662EE40C49B00F18BCB96ADE7"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="H002D7C1E1F9F4CA4A797892D95FE3574"><enum>(I)</enum><text>fair, credible,
and transparent methods of establishing qualification requirements for,
recruitment for, and appointments to positions;</text>
</subclause><subclause id="H5455FAE953D34DBBA579E2DDA5D04951"><enum>(II)</enum><text>fair and open
competition and equitable treatment in the consideration and selection of
individuals to positions;</text>
</subclause><subclause id="H77E99CF7C9AA49818E2834EA1038A0F2"><enum>(III)</enum><text>fair, credible,
and transparent methods of assigning, reassigning, detailing, transferring, and
promoting employees.</text>
</subclause></clause><clause id="H7F483D27835642A6B9BDBDA4328FAEBF"><enum>(ii)</enum><header>Veterans
preferences</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="HB81B29B301914A97914E05F8E9FF7286"><enum>(2)</enum><header>Compensation</header><text display-inline="yes-display-inline">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:</text>
<subparagraph id="HE88DF49978C544D0A61BCDDC0E7D92C1"><enum>(A)</enum><text display-inline="yes-display-inline">The rates of basic pay for all employees of
the Bureau may be set and adjusted by the Director.</text>
</subparagraph><subparagraph id="H730626B484C240A5A70F1BCAC51CAA7C"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H1218E9402D3245B0B7D60464450445E3"><enum>(C)</enum><text display-inline="yes-display-inline">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)).</text>
</subparagraph></paragraph><paragraph id="H49D35BE865CD4198906957E38948E5EE"><enum>(3)</enum><header>Bureau
participation in Federal Reserve System retirement plan and Federal Reserve
System thrift plan</header>
<subparagraph id="H7ADF6B682C1E4B6AA294B700B9213684"><enum>(A)</enum><header>Employee
election</header><text>Employees appointed to the Bureau may elect to
participate in either—</text>
<clause id="H3BD9A3F9BF0A48CD9E728BF31FA0420C"><enum>(i)</enum><text>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</text>
</clause><clause id="HC743B77E1A6D4BB98D9B6289A9D45D07"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HA61FF02DEF20449790CA44F5B78D86A4"><enum>(B)</enum><header>Election
period</header><text>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.</text>
</subparagraph><subparagraph id="H7F60BF1B46AC4E2AB32C7A730687D31D"><enum>(C)</enum><header>Employer
contribution</header><text>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.</text>
</subparagraph><subparagraph id="H6EDCB9B92B1249F3A5BB42E0DFDF0D7E"><enum>(D)</enum><header>Controlled group
status</header><text>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).</text>
</subparagraph></paragraph><paragraph id="HC0C27028500F476785B107F31DA38419"><enum>(4)</enum><header>Labor-management
relations</header><text display-inline="yes-display-inline">Chapter 71 of title
5, United States Code, shall apply to the Bureau and the employees of the
Bureau.</text>
</paragraph><paragraph id="HC2E1514A63A248FBA0B7C1209EFC250D"><enum>(5)</enum><header>Agency
ombudsman</header>
<subparagraph id="H1F3BBD8DD8E0400EA2C25C57146EAD37"><enum>(A)</enum><header>Establishment
required</header><text>Not later than 180 days after the designated transfer
date, the Bureau shall appoint an ombudsman.</text>
</subparagraph><subparagraph id="HC34E4B125A38431CA4197C6F7B7C7C83"><enum>(B)</enum><header>Duties of
ombudsman</header><text>The ombudsman appointed in accordance with subparagraph
(A) shall—</text>
<clause id="HFD151D9332464A60B7D80574B05934E3"><enum>(i)</enum><text>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</text>
</clause><clause id="H74A1662C0EF04CB6A3F60A9BA8D1D26B"><enum>(ii)</enum><text>assure that
safeguards exist to encourage complainants to come forward and preserve
confidentiality.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H1C8C792A907F4488918DAEF609F9F996"><enum>(b)</enum><header>Specific
functional units</header>
<paragraph id="H1B638713D035425AA8442B665A5A4E08"><enum>(1)</enum><header>Research</header><text>The
Director shall establish a unit whose functions shall include researching,
analyzing, and reporting on—</text>
<subparagraph id="H479E5772D9CB428093C33B2141904B59"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H9D4353D28CA24534BD0B88D9DFD7A138"><enum>(B)</enum><text>access to fair and
affordable credit for traditionally underserved communities;</text>
</subparagraph><subparagraph id="H61B57B0FD5974A478173C5E5640BEB61"><enum>(C)</enum><text>consumer
awareness, understanding, and use of disclosures and communications regarding
consumer financial products or services;</text>
</subparagraph><subparagraph id="H0B5D0A077BFC4AFFB8BA094CB7FD4692"><enum>(D)</enum><text>consumer awareness
and understanding of costs, risks, and benefits of consumer financial products
or services;</text>
</subparagraph><subparagraph id="HE7473DB098AA449EB637BC0398682115"><enum>(E)</enum><text>consumer behavior
with respect to consumer financial products or services, including performance
on mortgage loans; and</text>
</subparagraph><subparagraph id="H9883E6D4C71749F5A42A5166C14B6200"><enum>(F)</enum><text>experiences of
traditionally underserved consumers, including un-banked and under-banked
consumers.</text>
</subparagraph></paragraph><paragraph id="H3A6E46E979EF4CE783B130502ECDB5A8"><enum>(2)</enum><header>Community
affairs</header><text>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.</text>
</paragraph><paragraph id="H51F58B7D289A4CF2B5943E2E642A5F1F"><enum>(3)</enum><header>Collecting and
tracking complaints</header>
<subparagraph id="HF6212EA750DC43EBB59D0E2CD7949358"><enum>(A)</enum><header>In
general</header><text>The Director shall establish a unit whose functions shall
include establishing a single, toll-free telephone number, a website, and a
database or utilizing an existing 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.</text>
</subparagraph><subparagraph id="HFEDDEAD983914A97815CFF30971386D6"><enum>(B)</enum><header>Routing calls to
States</header><text>To the extent practicable, State agencies may receive
appropriate complaints from the systems established under subparagraph (A),
if—</text>
<clause id="H05090C84B05C4EB889F7BA01784FD7C0"><enum>(i)</enum><text>the
State agency system has the functional capacity to receive calls or electronic
reports routed by the Bureau systems;</text>
</clause><clause id="H947571ABFC05449F911EECCBBD09EDC1"><enum>(ii)</enum><text>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</text>
</clause><clause id="H0D32BA5DA2984B948E19F75CADF23269"><enum>(iii)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="H27E6D311B2554AFA918BC8700801E651"><enum>(C)</enum><header>Reports to the
congress</header><text>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.</text>
</subparagraph><subparagraph id="HEE459315699F42148E53C8E0541279B1"><enum>(D)</enum><header>Data sharing
required</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H045F1EA44C9B41418FA52590777C75FC"><enum>(c)</enum><header>Office of Fair
Lending and Equal Opportunity</header>
<paragraph id="H84CF4C09896846898DA2229EDCE7DC81"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Director shall establish within the
Bureau the Office of Fair Lending and Equal Opportunity.</text>
</paragraph><paragraph id="H5D94369C959F46C2ADA19AAD05B1C25E"><enum>(2)</enum><header>Functions</header><text display-inline="yes-display-inline">The Office of Fair Lending and Equal
Opportunity shall have such powers and duties as the Director may delegate to
the Office, including—</text>
<subparagraph id="H3D8CE062AB1041639C59B6F5D450D006"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HA59897E28B1B4B56806B10262110D9FA"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="H2CFBA4B1763A41DAB3DE0F875E09B117"><enum>(C)</enum><text>working with
private industry, fair lending, civil rights, consumer and community advocates
on the promotion of fair lending compliance and education; and</text>
</subparagraph><subparagraph id="H84B38D952A2749BF814AFA8FF2EE4670"><enum>(D)</enum><text>providing annual
reports to Congress on the efforts of the Bureau to fulfill its fair lending
mandate.</text>
</subparagraph></paragraph><paragraph id="H9FE948B9F6C54A5190E421627931FD68"><enum>(3)</enum><header>Administration
of office</header><text>There is established the position of Assistant Director
of the Bureau for Fair Lending and Equal Opportunity, who—</text>
<subparagraph id="H0721946F4B674D8D9663DBB66A68BF1D"><enum>(A)</enum><text>shall be appointed
by the Director; and</text>
</subparagraph><subparagraph id="HD95FBD4C2EC24674B96DB5FB06A4EBCD"><enum>(B)</enum><text display-inline="yes-display-inline">shall carry out such duties as the Director
may delegate to such Assistant Director.</text>
</subparagraph></paragraph></subsection><subsection id="HE7E1DEDB65954668BE5F70561E10F3F5"><enum>(d)</enum><header>Office of
Financial Education</header>
<paragraph id="HACFE55ADB59549649261224244FF538A"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HD039E848CB7B476D932EBB1886882E79"><enum>(2)</enum><header>Other
Duties</header><text>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—</text>
<subparagraph id="H65A0B48E08E04CCDB5CDDEE6FF9B005C"><enum>(A)</enum><text>financial
counseling, including community-based financial counseling, where
practicable;</text>
</subparagraph><subparagraph id="HBC9C7C194BA643F79785FA0DE1065E40"><enum>(B)</enum><text>information to
assist with the evaluation of credit products and the understanding of credit
histories and scores;</text>
</subparagraph><subparagraph id="H3BB1E579F86D4A2EA6667A53B0B33D9B"><enum>(C)</enum><text>savings,
borrowing, and other services found at mainstream financial
institutions;</text>
</subparagraph><subparagraph id="HE93E85A5519C421A9D35EC447EA47B73"><enum>(D)</enum><text>activities
intended to—</text>
<clause id="HFC7B632DEE204974A42580694E42D00B"><enum>(i)</enum><text>prepare the
consumer for educational expenses and the submission of financial aid
applications, and other major purchases;</text>
</clause><clause id="H695A5E7F0A1E4BA8BB7B91EA5937117F"><enum>(ii)</enum><text>reduce debt;
and</text>
</clause><clause id="H790E44CACF664083A03541CFF0E926BB"><enum>(iii)</enum><text>improve the
financial situation of the consumer;</text>
</clause></subparagraph><subparagraph id="H8EE6DEADE2154952AE8F3860F8F53A59"><enum>(E)</enum><text>assistance in
developing long-term savings strategies; and</text>
</subparagraph><subparagraph id="HCCD8E1FD40C94751BD0135F5C0228C98"><enum>(F)</enum><text>wealth building
and financial services during the preparation process to claim earned income
tax credits and Federal benefits.</text>
</subparagraph></paragraph><paragraph id="H5BBEC3AC70B8434BA62455FAA2F5E794"><enum>(3)</enum><header>Coordination</header><text>The
Office of Financial Education shall coordinate with other units within the
Bureau in carrying out its functions, including—</text>
<subparagraph id="HDC29F66088984A749092923E0BACFBB9"><enum>(A)</enum><text>working with the
Community Affairs Office to implement the strategy to improve financial
literacy of consumers; and</text>
</subparagraph><subparagraph id="H391AAD328D4644169DAADEFF8DE732DC"><enum>(B)</enum><text>working with the
research unit established by the Director to conduct research related to
consumer financial education and counseling.</text>
</subparagraph></paragraph><paragraph id="H42569AC66B9847AC89622EE2C9ED8347"><enum>(4)</enum><header>Report</header><text>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—</text>
<subparagraph id="HE61A7FBFA63D4D5CB4F2267717258517"><enum>(A)</enum><text>the Committee on
Banking, Housing, and Urban Affairs of the Senate; and</text>
</subparagraph><subparagraph id="HF2C85F17296E47CA9CAE927E969588CB"><enum>(B)</enum><text>the Committee on
Financial Services of the House of Representatives.</text>
</subparagraph></paragraph><paragraph commented="no" id="H98FD6593D59A4FA696BCD5EF368446FB"><enum>(5)</enum><header>Membership In
Financial Literacy And Education Commission</header><text display-inline="yes-display-inline">Section 513(c)(1) of the Financial Literacy
and Education Improvement Act (20 U.S.C. 9702(c)(1)) is amended—</text>
<subparagraph commented="no" id="HB2E86EF4A0424892982BB2E5CB76ABD6"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph commented="no" id="H8914218CB70C48BE97BE82EF534EA658"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</subparagraph><subparagraph commented="no" id="H77F5ECE8909C49E4B452411A687E5B26"><enum>(C)</enum><text>by inserting after
subparagraph (B) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H7594A7C17AA84E4594E142104BF522E7" style="OLC">
<subparagraph commented="no" id="HA6DE8CAE5BCC4B53BEA307BF756C9213"><enum>(C)</enum><text>the Director of
the Bureau of Consumer Financial Protection;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC135B5F350D94B20BFE14585340AF9F6"><enum>(6)</enum><header>Conforming
amendment</header><text>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: <quote>The Director of the Bureau of Consumer Financial Protection
shall serve as the Vice Chairman.</quote>.</text>
</paragraph><paragraph id="HC213EA7C90304B5894B5DA90BA8AFEBF"><enum>(7)</enum><header>Study and report
on financial literacy program</header>
<subparagraph id="H6B621EC906254DB585C5B793EA78BAAA"><enum>(A)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study to identify—</text>
<clause id="HE57C38B15AAE42B393544A1303D5755E"><enum>(i)</enum><text>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—</text>
<subclause id="H151EE5E9DA5540008BEF20BE1DFE4B81"><enum>(I)</enum><text>a
potential certification process and standards for certification;</text>
</subclause><subclause id="HEFF6E58AAAA44F73ADAA6CFE48FA12B3"><enum>(II)</enum><text>appropriate
certifying entities;</text>
</subclause><subclause id="H16E54FCC45984614959331A69DC5B6A8"><enum>(III)</enum><text>resources
required for funding such a process; and</text>
</subclause><subclause id="H06EE54CA6D9E45F8BA90A952C836A54F"><enum>(IV)</enum><text>a cost-benefit
analysis of such certification;</text>
</subclause></clause><clause id="H0097ED3B10834012BE893D5A4F4616C1"><enum>(ii)</enum><text>technological
resources intended to collect, analyze, evaluate, or promote financial literacy
and counseling programs;</text>
</clause><clause id="H3228AC1DC1B3427397A070211B4A9AA1"><enum>(iii)</enum><text>effective
methods, tools, and strategies intended to educate and empower consumers about
personal finance management; and</text>
</clause><clause id="HBCB4932F6D604CECBB3E9B32B6FC131F"><enum>(iv)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H56C4D380E0364EB7A9D78022EBF9BE65"><enum>(B)</enum><header>Report</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H420A316757464A348DA4F2BF6CEA1B2A"><enum>(e)</enum><header>Office of
Service Member Affairs</header>
<paragraph id="HA1CEC30AD6A04CF58DDC28B60DBB215C"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="H8D3DCF6A7B04406B87A78BA0E74790E2"><enum>(A)</enum><text>educate and
empower service members and their families to make better informed decisions
regarding consumer financial products and services;</text>
</subparagraph><subparagraph id="HB966674FF9874A2889690C5EF19CCC83"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H9D191FBA0BBE41D385DA789152277109"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H49AE79BF30274EC799196462F1940619"><enum>(2)</enum><header>Coordination</header>
<subparagraph id="H424F760088524167940385B23AFC9B87"><enum>(A)</enum><header>Regional
services</header><text>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.</text>
</subparagraph><subparagraph id="HB3014326CE3842DE85E4D4B8FEC94C44"><enum>(B)</enum><header>Agreements</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H6C3C6583731B4428BBCEE08945AC1483"><enum>(3)</enum><header>Definition</header><text>As
used in this subsection, the term <quote>service member</quote> means any
member of the United States Armed Forces and any member of the National Guard
or Reserves.</text>
</paragraph></subsection><subsection id="H5A9F3F48B0F14585989434B141650BD0"><enum>(f)</enum><header>Timing</header><text>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.</text>
</subsection><subsection id="H100FFAA4A19746888F769750A8962CE6"><enum>(g)</enum><header>Office of
Financial Protection for Older Americans</header>
<paragraph id="H62A9747E6CBD4F5AB7A9724BEE1D2F03"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">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 <quote>seniors</quote>) 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.</text>
</paragraph><paragraph id="H8DF91E0DAD864158A168912FAF177E36"><enum>(2)</enum><header>Assistant
director</header><text display-inline="yes-display-inline">The Office of
Financial Protection for Older Americans (in this subsection referred to as the
<quote>Office</quote>) shall be headed by an assistant director.</text>
</paragraph><paragraph id="H46FB473B174841BA86526F4D391366AF"><enum>(3)</enum><header>Duties</header><text>The
Office shall—</text>
<subparagraph id="H35B41B2871AC48869DAF0B8CF6E6F855"><enum>(A)</enum><text display-inline="yes-display-inline">develop goals for programs that provide
seniors financial literacy and counseling, including programs that—</text>
<clause id="H85CDF48116424A839FFE52804C1A0F78"><enum>(i)</enum><text display-inline="yes-display-inline">help seniors recognize warning signs of
unfair, deceptive, or abusive practices, protect themselves from such
practices;</text>
</clause><clause id="H8852EFDF2A684E98A5A30AADC27C9317"><enum>(ii)</enum><text display-inline="yes-display-inline">provide one-on-one financial counseling on
issues including long-term savings and later-life economic security; and</text>
</clause><clause id="HEAD6CAB4299D4D7FAB75F7B028EF1608"><enum>(iii)</enum><text display-inline="yes-display-inline">provide personal consumer credit advocacy
to respond to consumer problems caused by unfair, deceptive, or abusive
practices;</text>
</clause></subparagraph><subparagraph id="H0B892252E10E475AB334A10E6E0104BF"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="H3E5060795BED45C1961E70D60BA1DC1C"><enum>(C)</enum><text display-inline="yes-display-inline">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—</text>
<clause id="HEA48BB82987E46279886A42F890C3770"><enum>(i)</enum><text>disseminating
information regarding the legitimacy of certifications of financial advisers
who advise seniors;</text>
</clause><clause id="H51214CA851E64AB19AA4B31C6B7B3BF4"><enum>(ii)</enum><text>methods in which
a senior can identify the financial advisor most appropriate for the senior’s
needs; and</text>
</clause><clause id="H167311A62A5E41FCA19F1C9E05EC0571"><enum>(iii)</enum><text>methods in which
a senior can verify a financial advisor’s credentials;</text>
</clause></subparagraph><subparagraph id="H656855142F764AE489E283FAF5B309DA"><enum>(D)</enum><text display-inline="yes-display-inline">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—</text>
<clause id="H318DFB75F9D64802B4E4B4E3187A3BC8"><enum>(i)</enum><text>protecting
themselves from unfair, deceptive, and abusive practices;</text>
</clause><clause id="H1F726DD834304BAE9882160B7B671F39"><enum>(ii)</enum><text>long-term
savings; and</text>
</clause><clause id="HA52AD912AEA14BB8BFEC3EEDA4189FC1"><enum>(iii)</enum><text>planning for
retirement and long-term care;</text>
</clause></subparagraph><subparagraph id="H93BAADD3D693431BA1C8F355B46FF587"><enum>(E)</enum><text display-inline="yes-display-inline">coordinate consumer protection efforts of
seniors with other Federal agencies and State regulators, as appropriate, to
promote consistent, effective, and efficient enforcement; and</text>
</subparagraph><subparagraph id="H8AAA29A5160747CAA3563022406AAF21"><enum>(F)</enum><text display-inline="yes-display-inline">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).</text>
</subparagraph></paragraph></subsection></section><section id="H012209EE6C5A460BBED900C5ADC5F783"><enum>1014.</enum><header>Consumer
Advisory Board</header>
<subsection id="HD9B9D125218C47B4B649C9026A363479"><enum>(a)</enum><header>Establishment
required</header><text>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.</text>
</subsection><subsection id="HE37071593826440A9C2095C0000E3343"><enum>(b)</enum><header>Membership</header><text>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.</text>
</subsection><subsection id="H56833D216A1D41E09C4BE119F896A66D"><enum>(c)</enum><header>Meetings</header><text>The
Consumer Advisory Board shall meet from time to time at the call of the
Director, but, at a minimum, shall meet at least twice in each year.</text>
</subsection><subsection id="H36DFD8398734458EAA5BEFC92F59E5AF"><enum>(d)</enum><header>Compensation and
travel expenses</header><text>Members of the Consumer Advisory Board who are
not full-time employees of the United States shall—</text>
<paragraph id="H07462EE83B35484F9917ADD887310A3E"><enum>(1)</enum><text>be entitled to
receive compensation at a rate fixed by the Director while attending meetings
of the Consumer Advisory Board, including travel time; and</text>
</paragraph><paragraph id="H51A35A6271B6465EA7A5CAEF1200157C"><enum>(2)</enum><text>be allowed travel
expenses, including transportation and subsistence, while away from their homes
or regular places of business.</text>
</paragraph></subsection></section><section id="H52AAB86E655E4165919FCD0E84606151"><enum>1015.</enum><header>Coordination</header><text display-inline="no-display-inline">The Bureau shall coordinate with the
Commission, the Commodity Futures Trading Commission, the Federal Trade
Commission, and other Federal agencies and State regulators, as appropriate, to
promote consistent regulatory treatment of consumer financial and investment
products and services.</text>
</section><section id="H09EB8A610C3A453BA7934CA63080B436"><enum>1016.</enum><header>Appearances
before and reports to Congress</header>
<subsection id="HFCBE0D58016141D78CEC1445AA0C5978"><enum>(a)</enum><header>Appearances
before congress</header><text>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).</text>
</subsection><subsection id="H8155465A9B4B47DA9C2035D20DE68B63"><enum>(b)</enum><header>Reports
required</header><text>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.</text>
</subsection><subsection id="H03102A6070B7497E850B9C9A88FD3B55"><enum>(c)</enum><header>Contents</header><text>The
reports required by subsection (b) shall include—</text>
<paragraph id="HB2DD7F4A045F4327B1B5963E6B1F58AC"><enum>(1)</enum><text>a
discussion of the significant problems faced by consumers in shopping for or
obtaining consumer financial products or services;</text>
</paragraph><paragraph id="HB910461BEE5448F3BFB18C782B89C7F4"><enum>(2)</enum><text>a
justification of the budget request of the previous year;</text>
</paragraph><paragraph id="HEFFC7BA368A749469CD96B5B7EA04583"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H5AC6966BEAF5447B9EA02044D620BA12"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="HF36BCD0EC4124CE086C1D367273EB49D"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="HE0D538F278064F7A9DA86F16787BFF48"><enum>(6)</enum><text>the actions taken
regarding rules, orders, and supervisory actions with respect to covered
persons which are not credit unions or depository institutions;</text>
</paragraph><paragraph id="H04D37021C1854B9292997EE05684D444"><enum>(7)</enum><text>an assessment of
significant actions by State attorneys general or State regulators relating to
Federal consumer financial law;</text>
</paragraph><paragraph id="H5AB85153C5CC4BA0A848380521422DE0"><enum>(8)</enum><text>an analysis of the
efforts of the Bureau to fulfill the fair lending mission of the Bureau;
and</text>
</paragraph><paragraph commented="no" id="HA1B8F864D2294AD8A3B98A4B810B2D6B"><enum>(9)</enum><text>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.</text>
</paragraph></subsection></section><section id="H8D806E8B07AF41DDAA7050CF8B8C990F"><enum>1017.</enum><header>Funding;
penalties and fines</header>
<subsection id="HF6C2C955C0A547808916D9A000BEDBDA"><enum>(a)</enum><header>Transfer of
funds from Board Of Governors</header>
<paragraph id="HF0F82D132FB3498C8DB49B3248709B1C"><enum>(1)</enum><header>In
general</header><text>Each year (or quarter of such year), beginning on the
designated transfer date, and each quarter thereafter, the Board of Governors
shall transfer to the Bureau from the combined earnings of the Federal Reserve
System, the amount determined by the Director to be reasonably necessary to
carry out the authorities of the Bureau under Federal consumer financial law,
taking into account such other sums made available to the Bureau from the
preceding year (or quarter of such year).</text>
</paragraph><paragraph id="H50B25EFECAB948A1AE1575EF3002F70A"><enum>(2)</enum><header>Funding
cap</header>
<subparagraph id="H7B6BBF8A157F4F079DC7D0885F449C95"><enum>(A)</enum><header>In
general</header><text>Notwithstanding paragraph (1), and in accordance with
this paragraph, the amount that shall be transferred to the Bureau in each
fiscal year shall not exceed a fixed percentage of the total operating expenses
of the Federal Reserve System, as reported in the Annual Report, 2009, of the
Board of Governors, equal to—</text>
<clause id="H9B36B41879644EAB9A10FF0EDFBB5547"><enum>(i)</enum><text>10
percent of such expenses in fiscal year 2011;</text>
</clause><clause id="H9E7255EB821842A6BF5517F0549CD3E3"><enum>(ii)</enum><text>11
percent of such expenses in fiscal year 2012; and</text>
</clause><clause id="H3AF126FF8B9C44E9873B017839BC7DD1"><enum>(iii)</enum><text>12
percent of such expenses in fiscal year 2013, and in each year
thereafter.</text>
</clause></subparagraph><subparagraph id="H76A823E47E69426D905494601F8F9D50"><enum>(B)</enum><header>Adjustment of
amount</header><text display-inline="yes-display-inline">The dollar amount
referred to in subparagraph (A)(iii) shall be adjusted annually, using the
percent increase, if any, in the employment cost index for total compensation
for State and local government workers published by the Federal Government, or
the successor index thereto, for the 12-month period ending on September 30 of
the year preceding the transfer.</text>
</subparagraph><subparagraph id="H35298CDF0EDF4F7FA88BB59684594183"><enum>(C)</enum><header>Reviewability</header><text display-inline="yes-display-inline">Notwithstanding any other provision in this
title, the funds derived from the Federal Reserve System pursuant to this
subsection shall not be subject to review by the Committees on Appropriations
of the House of Representatives and the Senate.</text>
</subparagraph></paragraph><paragraph id="H211F806737544F14A76EEBAD95DBDBDF"><enum>(3)</enum><header>Transition
period</header><text>Beginning on the date of enactment of this Act and until
the designated transfer date, the Board of Governors shall transfer to the
Bureau the amount estimated by the Secretary needed to carry out the
authorities granted to the Bureau under Federal consumer financial law, from
the date of enactment of this Act until the designated transfer date.</text>
</paragraph><paragraph id="H58512DDA776F407C8A50C518F233A53E"><enum>(4)</enum><header>Budget and
financial management</header>
<subparagraph id="H532E1F8267634BD4BBC78F52B814BD99"><enum>(A)</enum><header>Financial
operating plans and forecasts</header><text>The Director shall provide to the
Director of the Office of Management and Budget copies of the financial
operating plans and forecasts of the Director, as prepared by the Director in
the ordinary course of the operations of the Bureau, and copies of the
quarterly reports of the financial condition and results of operations of the
Bureau, as prepared by the Director in the ordinary course of the operations of
the Bureau.</text>
</subparagraph><subparagraph id="HFDA439E481724B7D925E590AE1D986F3"><enum>(B)</enum><header>Financial
statements</header><text>The Bureau shall prepare annually a statement
of—</text>
<clause id="H59A616E283FE4522B92E06896C4E120D"><enum>(i)</enum><text>assets and
liabilities and surplus or deficit;</text>
</clause><clause id="HD235FC5778334D4D90BA542A565A0782"><enum>(ii)</enum><text>income and
expenses; and</text>
</clause><clause id="HD5903A858E154207BAE7CAA16E8467F5"><enum>(iii)</enum><text>sources and
application of funds.</text>
</clause></subparagraph><subparagraph id="H34C338BDF1DD4C378CDFF1438E240B19"><enum>(C)</enum><header>Financial
management systems</header><text>The Bureau shall implement and maintain
financial management systems that comply substantially with Federal financial
management systems requirements and applicable Federal accounting
standards.</text>
</subparagraph><subparagraph id="HD869C174DABF4DD290B80D75AAF50D14"><enum>(D)</enum><header>Assertion of
internal controls</header><text>The Director shall provide to the Comptroller
General of the United States an assertion as to the effectiveness of the
internal controls that apply to financial reporting by the Bureau, using the
standards established in section 3512(c) of title 31, United States
Code.</text>
</subparagraph><subparagraph id="H6177F3269FE141809944E1A608AC974C"><enum>(E)</enum><header>Rule of
construction</header><text>This subsection may not be construed as implying any
obligation on the part of the Director to consult with or obtain the consent or
approval of the Director of the Office of Management and Budget with respect to
any report, plan, forecast, or other information referred to in subparagraph
(A) or any jurisdiction or oversight over the affairs or operations of the
Bureau.</text>
</subparagraph><subparagraph id="H1023AF4F3C0E43C3ACCED2054B6DCD88"><enum>(F)</enum><header>Financial
statements</header><text>The financial statements of the Bureau shall not be
consolidated with the financial statements of either the Board of Governors or
the Federal Reserve System.</text>
</subparagraph></paragraph><paragraph id="H56255F3D165842B2B1A5000751A16DE0"><enum>(5)</enum><header>Audit of the
bureau</header>
<subparagraph id="H2EE21231E07446C0904A48D591A6212A"><enum>(A)</enum><header>In
general</header><text>The Comptroller General shall annually audit the
financial transactions of the Bureau in accordance with the United States
generally accepted government auditing standards, as may be prescribed by the
Comptroller General of the United States. The audit shall be conducted at the
place or places where accounts of the Bureau are normally kept. The
representatives of the Government Accountability Office shall have access to
the personnel and to all books, accounts, documents, papers, records (including
electronic records), reports, files, and all other papers, automated data,
things, or property belonging to or under the control of or used or employed by
the Bureau pertaining to its financial transactions and necessary to facilitate
the audit, and such representatives shall be afforded full facilities for
verifying transactions with the balances or securities held by depositories,
fiscal agents, and custodians. All such books, accounts, documents, records,
reports, files, papers, and property of the Bureau shall remain in possession
and custody of the Bureau. The Comptroller General may obtain and duplicate any
such books, accounts, documents, records, working papers, automated data and
files, or other information relevant to such audit without cost to the
Comptroller General, and the right of access of the Comptroller General to such
information shall be enforceable pursuant to section 716(c) of title 31, United
States Code.</text>
</subparagraph><subparagraph id="H7EB6E95C6770402B8C142BB0E1EFC2FF"><enum>(B)</enum><header>Report</header><text>The
Comptroller General shall submit to the Congress a report of each annual audit
conducted under this subsection. The report to the Congress shall set forth the
scope of the audit and shall include the statement of assets and liabilities
and surplus or deficit, the statement of income and expenses, the statement of
sources and application of funds, and such comments and information as may be
deemed necessary to inform Congress of the financial operations and condition
of the Bureau, together with such recommendations with respect thereto as the
Comptroller General may deem advisable. A copy of each report shall be
furnished to the President and to the Bureau at the time submitted to the
Congress.</text>
</subparagraph><subparagraph id="HDF6B6D3D554044B1B714DBF235E28D7C"><enum>(C)</enum><header>Assistance and
costs</header><text>For the purpose of conducting an audit under this
subsection, the Comptroller General may, in the discretion of the Comptroller
General, employ by contract, without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5), professional services of firms and
organizations of certified public accountants for temporary periods or for
special purposes. Upon the request of the Comptroller General, the Director of
the Bureau shall transfer to the Government Accountability Office from funds
available, the amount requested by the Comptroller General to cover the full
costs of any audit and report conducted by the Comptroller General. The
Comptroller General shall credit funds transferred to the account established
for salaries and expenses of the Government Accountability Office, and such
amount shall be available upon receipt and without fiscal year limitation to
cover the full costs of the audit and report.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HD92A6AECD2CC48A3AA3105BCF32F683C"><enum>(b)</enum><header>Consumer
Financial Protection Fund</header>
<paragraph commented="no" id="HB8189C23D00E42AC82E712A5A95C6470"><enum>(1)</enum><header>Separate fund in
Federal Reserve established</header><text>There is established in the Federal
Reserve a separate fund, to be known as the <quote>Bureau of Consumer Financial
Protection Fund</quote> (referred to in this section as the <quote>Bureau
Fund</quote>). The Bureau Fund shall be maintained and established at a Federal
reserve bank, in accordance with such requirements as the Board of Governors
may impose.</text>
</paragraph><paragraph commented="no" id="H07698A78FDA240BFBAB31D8B0F7D1C04"><enum>(2)</enum><header>Fund
receipts</header><text>All amounts transferred to the Bureau under subsection
(a) shall be deposited into the Bureau Fund.</text>
</paragraph><paragraph commented="no" id="HD12DF675B9AA44B3BFDA63398EC67D76"><enum>(3)</enum><header>Investment
authority</header>
<subparagraph commented="no" id="HAFEC95BEB99F49A99C240677D1C2E520"><enum>(A)</enum><header>Amounts in
Bureau fund may be invested</header><text>The Bureau may request the Board of
Governors to direct the investment of the portion of the Bureau Fund that is
not, in the judgment of the Bureau, required to meet the current needs of the
Bureau.</text>
</subparagraph><subparagraph commented="no" id="H531A4D664FE743EBB13C191C126B52AB"><enum>(B)</enum><header>Eligible
investments</header><text>Investments authorized by this paragraph shall be
made in obligations of the United States or obligations that are guaranteed as
to principal and interest by the United States, with maturities suitable to the
needs of the Bureau Fund, as determined by the Bureau.</text>
</subparagraph><subparagraph commented="no" id="HB5B3604A13944B20AB4E24053EBCB87D"><enum>(C)</enum><header>Interest and
proceeds credited</header><text>The interest on, and the proceeds from the sale
or redemption of, any obligations held in the Bureau Fund shall be credited to
the Bureau Fund.</text>
</subparagraph></paragraph></subsection><subsection id="H8E2D0D3382644107837CF0E05765AD5B"><enum>(c)</enum><header>Use of
Funds</header>
<paragraph id="H4BE875BDE18D40A6870E5FDB1D20BEE2"><enum>(1)</enum><header>In
general</header><text>Funds obtained by, transferred to, or credited to the
Bureau Fund shall be immediately available to the Bureau and under the control
of the Director, and shall remain available until expended, to pay the expenses
of the Bureau in carrying out its duties and responsibilities. The compensation
of the Director and other employees of the Bureau and all other expenses
thereof may be paid from, obtained by, transferred to, or credited to the
Bureau Fund under this section.</text>
</paragraph><paragraph id="H911BA3562C6C473DABA66E78FF6E7F84"><enum>(2)</enum><header>Funds that are
not government funds</header><text>Funds obtained by or transferred to the
Bureau Fund shall not be construed to be Government funds or appropriated
monies.</text>
</paragraph><paragraph id="H2A6E8C9A4D9A428F89C2D5F74330F898"><enum>(3)</enum><header>Amounts not
subject to apportionment</header><text>Notwithstanding any other provision of
law, amounts in the Bureau Fund and in the Civil Penalty Fund established under
subsection (d) shall not be subject to apportionment for purposes of chapter 15
of title 31, United States Code, or under any other authority.</text>
</paragraph></subsection><subsection id="HFF5A6A31A70745838C3B77C5469B8A40"><enum>(d)</enum><header>Penalties and
Fines</header>
<paragraph id="HA118B53001D544A1A3F8DFCF5C70BBA9"><enum>(1)</enum><header>Establishment of
victims relief fund</header><text>There is established in the Federal Reserve a
separate fund, to be known as the <quote>Consumer Financial Civil Penalty
Fund</quote> (referred to in this section as the <quote>Civil Penalty
Fund</quote>). The Civil Penalty Fund shall be maintained and established at a
Federal reserve bank, in accordance with such requirements as the Board of
Governors may impose. If the Bureau obtains a civil penalty against any person
in any judicial or administrative action under Federal consumer financial laws,
the Bureau shall deposit into the Civil Penalty Fund, the amount of the penalty
collected.</text>
</paragraph><paragraph id="HABB92AF4E23D4D999265FE1065800FF8"><enum>(2)</enum><header>Payment to
victims</header><text>Amounts in the Civil Penalty Fund shall be available to
the Bureau, without fiscal year limitation, for payments to the victims of
activities for which civil penalties have been imposed under the Federal
consumer financial laws. To the extent that such victims cannot be located or
such payments are otherwise not practicable, the Bureau may use such funds for
the purpose of consumer education and financial literacy programs.</text>
</paragraph></subsection><subsection id="HE93CC77E66A148E7B1F8022D1A90C153"><enum>(e)</enum><header>Authorization of
appropriations; annual report</header>
<paragraph id="HFBD126B41A894FC8BC846FD6EE4D17FA"><enum>(1)</enum><header>Determination
regarding need for appropriated funds</header>
<subparagraph id="HB382A66CCEF94607801451FC387F4418"><enum>(A)</enum><header>In
general</header><text>The Director is authorized to determine that sums
available to the Bureau under this section will not be sufficient to carry out
the authorities of the Bureau under Federal consumer financial law for the
upcoming year.</text>
</subparagraph><subparagraph id="H4E7CB772500C43B1A39238B14510765C"><enum>(B)</enum><header>Report
required</header><text>When making a determination under subparagraph (A), the
Director shall prepare a report regarding the funding of the Bureau, including
the assets and liabilities of the Bureau, and the extent to which the funding
needs of the Bureau are anticipated to exceed the level of the amount set forth
in subsection (a)(2). The Director shall submit the report to the President and
to the Committee on Appropriations of the Senate and the Committee on
Appropriations of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="HF482A79D34F44A9D9553E1F95F5EDA1D"><enum>(2)</enum><header>Authorization of
appropriations</header><text>If the Director makes the determination and
submits the report pursuant to paragraph (1), there are hereby authorized to be
appropriated to the Bureau, for the purposes of carrying out the authorities
granted in Federal consumer financial law, $200,000,000 for each of fiscal
years 2010, 2011, 2012, 2013, and 2014.</text>
</paragraph><paragraph id="HB7A920F1661F4E4D91865E68D50BB0B0"><enum>(3)</enum><header>Apportionment</header><text>Notwithstanding
any other provision of law, the amounts in paragraph (2) shall be subject to
apportionment under section 1517 of title 31, United States Code, and
restrictions that generally apply to the use of appropriated funds in title 31,
United States Code, and other laws.</text>
</paragraph><paragraph id="H038AEBAFF5EA4C85A3B5509DED83C543"><enum>(4)</enum><header>Annual
report</header><text>The Director shall prepare and submit a report, on an
annual basis, to the Committee on Appropriations of the Senate and the
Committee on Appropriations of the House of Representatives regarding the
financial operating plans and forecasts of the Director, the financial
condition and results of operations of the Bureau, and the sources and
application of funds of the Bureau, including any funds appropriated in
accordance with this subsection.</text>
</paragraph></subsection></section><section id="H0A362BFE1EBB4AC19DC6988C5AD66E99"><enum>1018.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the date of enactment of this Act.</text>
</section></subtitle><subtitle id="H47CF8E5BBCBB4A48A530DB61399CC26B"><enum>B</enum><header>General Powers of
the Bureau</header>
<section id="H01CC381848EC456BA9A97EDD90CCCF42"><enum>1021.</enum><header>Purpose,
objectives, and functions</header>
<subsection id="H4C4DD2752CAA42F881C67FB554724CAE"><enum>(a)</enum><header>Purpose</header><text>The
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.</text>
</subsection><subsection id="H8B09C888CAE64B78AD93844091EADE06"><enum>(b)</enum><header>Objectives</header><text>The
Bureau is authorized to exercise its authorities under Federal consumer
financial law for the purposes of ensuring that, with respect to consumer
financial products and services—</text>
<paragraph id="H41A8DE5FF9D24213A0A356C3220ACBEB"><enum>(1)</enum><text>consumers are
provided with timely and understandable information to make responsible
decisions about financial transactions;</text>
</paragraph><paragraph id="HF1675E905B344555A8D5430D79510B59"><enum>(2)</enum><text>consumers are
protected from unfair, deceptive, or abusive acts and practices and from
discrimination;</text>
</paragraph><paragraph id="H3609394387244228B3F53958E04D88BA"><enum>(3)</enum><text>outdated,
unnecessary, or unduly burdensome regulations are regularly identified and
addressed in order to reduce unwarranted regulatory burdens;</text>
</paragraph><paragraph id="H83291F068BF24E44B7A5AD51893018A4"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="H5F005CC145DF4CB9B0BD35ACA281C8B1"><enum>(5)</enum><text>markets for
consumer financial products and services operate transparently and efficiently
to facilitate access and innovation.</text>
</paragraph></subsection><subsection id="H1A895EE04AE24184B23D56377B0582E7"><enum>(c)</enum><header>Functions</header><text>The
primary functions of the Bureau are—</text>
<paragraph id="H33AA32AACE054CC69F3349531651E8F4"><enum>(1)</enum><text>conducting
financial education programs;</text>
</paragraph><paragraph id="HBB586415555040009A210E3E6429A9F8"><enum>(2)</enum><text>collecting,
investigating, and responding to consumer complaints;</text>
</paragraph><paragraph id="H86EB5DF8047D46458CC1DECE2C9E63F4"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H5573FEA351124CACA9E00D47191DD09E"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="H03876A0349374390BD4029D29A85A4C6"><enum>(5)</enum><text>issuing rules,
orders, and guidance implementing Federal consumer financial law; and</text>
</paragraph><paragraph id="H6E21B73ED9BB4AAABD192CA96DCE1D56"><enum>(6)</enum><text>performing such
support activities as may be necessary or useful to facilitate the other
functions of the Bureau.</text>
</paragraph></subsection></section><section id="HC2304DDEABC741739DB7BD238FBA987C"><enum>1022.</enum><header>Rulemaking
authority</header>
<subsection id="H76338774C78E44D88FDF6306F69E0BCD"><enum>(a)</enum><header>In
general</header><text>The Bureau is authorized to exercise its authorities
under Federal consumer financial law to administer, enforce, and otherwise
implement the provisions of Federal consumer financial law.</text>
</subsection><subsection id="HC79B4FE81D324CE4A83DB3F4F6D1F892"><enum>(b)</enum><header>Rulemaking,
orders, and guidance</header>
<paragraph id="H0E69E35934744C0C922EAF985C0202BF"><enum>(1)</enum><header>General
authority</header><text>The Director may prescribe rules and issue orders and
guidance, as may be necessary or appropriate to enable the Bureau to administer
and carry out the purposes and objectives of the Federal consumer financial
laws, and to prevent evasions thereof.</text>
</paragraph><paragraph id="H60FAFBFA169444A8A14230D8C54979CD"><enum>(2)</enum><header>Standards for
rulemaking</header><text>In prescribing a rule under the Federal consumer
financial laws—</text>
<subparagraph id="HB04B8A4F9BEB4FEBA5AD067D4C2D17B4"><enum>(A)</enum><text>the Bureau shall
consider—</text>
<clause id="H326D46FC5DE14689A319A71E43E5D887"><enum>(i)</enum><text>the
potential benefits and costs to consumers and covered persons, including the
potential reduction of access by consumers to consumer financial products or
services resulting from such rule; and</text>
</clause><clause id="HEE7CF08411004262A0AA701308CB6B7A"><enum>(ii)</enum><text>the
impact of proposed rules on covered persons, as described in section 1026, and
the impact on consumers in rural areas;</text>
</clause></subparagraph><subparagraph id="H209D397120134A5D9199C4BA0B6B622F"><enum>(B)</enum><text>the Bureau shall
consult with the appropriate prudential regulators or other Federal agencies
prior to proposing a rule and during the comment process regarding consistency
with prudential, market, or systemic objectives administered by such agencies;
and</text>
</subparagraph><subparagraph id="HD002873698A34F169D73760EA2B6DCAD"><enum>(C)</enum><text>if, during the
consultation process described in subparagraph (B), a prudential regulator
provides the Bureau with a written objection to the proposed rule of the Bureau
or a portion thereof, the Bureau shall include in the adopting release a
description of the objection and the basis for the Bureau decision, if any,
regarding such objection, except that nothing in this clause shall be construed
as altering or limiting the procedures under section 1023 that may apply to any
rule prescribed by the Bureau.</text>
</subparagraph></paragraph><paragraph id="H951FFF316B6146B588A67D5E017640B1"><enum>(3)</enum><header>Exemptions</header>
<subparagraph id="HEADC941FFA6C494A9F1C7DB61EA41969"><enum>(A)</enum><header>In
general</header><text>The Bureau, by rule, may conditionally or unconditionally
exempt any class of covered persons, service providers, or consumer financial
products or services, from any provision of this title, or from any rule issued
under this title, as the Bureau determines necessary or appropriate to carry
out the purposes and objectives of this title, taking into consideration the
factors in subparagraph (B).</text>
</subparagraph><subparagraph id="HF76328CA0DDC43BFB3388CBE859E4AE7"><enum>(B)</enum><header>Factors</header><text>In
issuing an exemption, as permitted under subparagraph (A), the Bureau shall, as
appropriate, take into consideration—</text>
<clause id="H4734EEFD82AE454F916513B7C55A0544"><enum>(i)</enum><text>the
total assets of the class of covered persons;</text>
</clause><clause id="H1A9B851F27A449ADAFF57D76BE4AF928"><enum>(ii)</enum><text>the
volume of transactions involving consumer financial products or services in
which the class of covered persons engages; and</text>
</clause><clause id="H7430C6D6517540CCA9E7AA0D0062D129"><enum>(iii)</enum><text>existing
provisions of law which are applicable to the consumer financial product or
service and the extent to which such provisions provide consumers with adequate
protections.</text>
</clause></subparagraph></paragraph><paragraph id="H4F31C7EDA02742AC904C1B6A6A474FF5"><enum>(4)</enum><header>Exclusive
rulemaking authority</header>
<subparagraph id="HBAB54B16624B47E5B7D95BE59010CACA"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provisions of Federal law and
except as provided in section 1061(b)(5), to the extent that a provision of
Federal consumer financial law authorizes the Bureau and another Federal agency
to issue regulations under that provision of law for purposes of assuring
compliance with Federal consumer financial law and any regulations thereunder,
the Bureau shall have the exclusive authority to prescribe rules subject to
those provisions of law.</text>
</subparagraph><subparagraph id="H954E81022B6F48D9802D6F877D8E6494"><enum>(B)</enum><header>Deference</header><text>Notwithstanding
any power granted to any Federal agency or to the Council under this title, and
subject to section 1061(b)(5)(E), the deference that a court affords to the
Bureau with respect to a determination by the Bureau regarding the meaning or
interpretation of any provision of a Federal consumer financial law shall be
applied as if the Bureau were the only agency authorized to apply, enforce,
interpret, or administer the provisions of such Federal consumer financial
law.</text>
</subparagraph></paragraph></subsection><subsection id="H160E3999535B444FAF76C4A9E43D51E6"><enum>(c)</enum><header>Monitoring</header>
<paragraph id="HF2E42CAA0AEF44F49279A950058F3FBC"><enum>(1)</enum><header>In
general</header><text>In order to support its rulemaking and other functions,
the Bureau shall monitor for risks to consumers in the offering or provision of
consumer financial products or services, including developments in markets for
such products or services.</text>
</paragraph><paragraph id="HCAB4939E0E184C4F8FDA75C92FDAE009"><enum>(2)</enum><header>Considerations</header><text>In
allocating its resources to perform the monitoring required by this section,
the Bureau may consider, among other factors—</text>
<subparagraph id="HC956F10A8DC846C0BEB8B8BF212319D2"><enum>(A)</enum><text>likely risks and
costs to consumers associated with buying or using a type of consumer financial
product or service;</text>
</subparagraph><subparagraph id="H22EE9AFB5A5244A3B70DC82EC94A1F65"><enum>(B)</enum><text>understanding by
consumers of the risks of a type of consumer financial product or
service;</text>
</subparagraph><subparagraph id="H41679A5318B54B44841FECBD4066A418"><enum>(C)</enum><text>the legal
protections applicable to the offering or provision of a consumer financial
product or service, including the extent to which the law is likely to
adequately protect consumers;</text>
</subparagraph><subparagraph id="HA8CC5AB56FF7496EBB1D793A83A0D946"><enum>(D)</enum><text>rates of growth in
the offering or provision of a consumer financial product or service;</text>
</subparagraph><subparagraph id="HD7FA847CCC054A6CB9A0EDEB5E8F2537"><enum>(E)</enum><text>the extent, if
any, to which the risks of a consumer financial product or service may
disproportionately affect traditionally underserved consumers; or</text>
</subparagraph><subparagraph id="H040E6B0B1F2245BE8F6D15B95055E5A4"><enum>(F)</enum><text>the types, number,
and other pertinent characteristics of covered persons that offer or provide
the consumer financial product or service.</text>
</subparagraph></paragraph><paragraph id="H63D6D185DB534CA08068284D66446BB1"><enum>(3)</enum><header>Significant
findings</header>
<subparagraph id="H12D848310C1E4FDDB11AA981D6DA552C"><enum>(A)</enum><header>In
general</header><text>The Bureau shall publish not fewer than 1 report of
significant findings of its monitoring required by this subsection in each
calendar year, beginning with the first calendar year that begins at least 1
year after the designated transfer date.</text>
</subparagraph><subparagraph id="HEDFFD56E46D04FEEA094EDE82BCE2FA3"><enum>(B)</enum><header>Confidential
information</header><text>The Bureau may make public such information obtained
by the Bureau under this section as is in the public interest, through
aggregated reports or other appropriate formats designed to protect
confidential information in accordance with paragraphs (4), (6), (8), and
(9).</text>
</subparagraph></paragraph><paragraph commented="no" id="H36BED5DDE32B40748F93E0484FC3B2D1"><enum>(4)</enum><header>Collection of
information</header>
<subparagraph commented="no" id="H45B4FC8C237248A8AD91FAA0B81E201F"><enum>(A)</enum><header>In
general</header><text>In conducting any monitoring or assessment required by
this section, the Bureau shall have the authority to gather information from
time to time regarding the organization, business conduct, markets, and
activities of covered persons and service providers.</text>
</subparagraph><subparagraph id="H4BDA436003634809B4CEC92D54F7177D"><enum>(B)</enum><header>Methodology</header><text>In
order to gather information described in subparagraph (A), the Bureau
may—</text>
<clause id="H12B8F01D5C2A4B01B3E58563B0BB6EE8"><enum>(i)</enum><text>gather and compile
information from a variety of sources, including examination reports concerning
covered persons or service providers, consumer complaints, voluntary surveys
and voluntary interviews of consumers, surveys and interviews with covered
persons and service providers, and review of available databases; and</text>
</clause><clause id="HA5B2B044782C4993A99EAE161CBCA7EF"><enum>(ii)</enum><text>require covered
persons and service providers participating in consumer financial services
markets to file with the Bureau, under oath or otherwise, in such form and
within such reasonable period of time as the Bureau may prescribe by rule or
order, annual or special reports, or answers in writing to specific questions,
furnishing information described in paragraph (4), as necessary for the Bureau
to fulfill the monitoring, assessment, and reporting responsibilities imposed
by Congress.</text>
</clause></subparagraph><subparagraph id="HF987438D40AE4058A9DEBF53FE4D2A42"><enum>(C)</enum><header>Limitation</header><text>The
Bureau may not use its authorities under this paragraph to obtain records from
covered persons and service providers participating in consumer financial
services markets for purposes of gathering or analyzing the personally
identifiable financial information of consumers.</text>
</subparagraph></paragraph><paragraph id="HB4F3A81D5E164F5A9078368654D30810"><enum>(5)</enum><header>Limited
information gathering</header><text>In order to assess whether a nondepository
is a covered person, as defined in section 1002, the Bureau may require such
nondepository to file with the Bureau, under oath or otherwise, in such form
and within such reasonable period of time as the Bureau may prescribe by rule
or order, annual or special reports, or answers in writing to specific
questions.</text>
</paragraph><paragraph commented="no" id="H054A78D8A47547B9AA61E7EC4351BD0A"><enum>(6)</enum><header>Confidentiality
rules</header>
<subparagraph commented="no" id="HD2073C56869C4051958C7A326089889C"><enum>(A)</enum><header>Rulemaking</header><text>The
Bureau shall prescribe rules regarding the confidential treatment of
information obtained from persons in connection with the exercise of its
authorities under Federal consumer financial law.</text>
</subparagraph><subparagraph commented="no" id="H0EFB7572DF26466CA2B4A1A1C72D5C77"><enum>(B)</enum><header>Access by the
bureau to reports of other regulators</header>
<clause commented="no" id="H16F8F6466C974843ACED6BE1CE4F620E"><enum>(i)</enum><header>Examination and
financial condition reports</header><text>Upon providing reasonable assurances
of confidentiality, the Bureau shall have access to any report of examination
or financial condition made by a prudential regulator or other Federal agency
having jurisdiction over a covered person or service provider, and to all
revisions made to any such report.</text>
</clause><clause commented="no" id="H16DEE38370754D5EACB7BFC03189DAE4"><enum>(ii)</enum><header>Provision of
other reports to the bureau</header><text>In addition to the reports described
in clause (i), a prudential regulator or other Federal agency having
jurisdiction over a covered person or service provider may, in its discretion,
furnish to the Bureau any other report or other confidential supervisory
information concerning any insured depository institution, credit union, or
other entity examined by such agency under authority of any provision of
Federal law.</text>
</clause></subparagraph><subparagraph commented="no" id="H266E35A3EB4C49909952261915FF38EC"><enum>(C)</enum><header>Access by other
regulators to reports of the bureau</header>
<clause commented="no" id="H89C878E9F8AF42D0BD01BA6A572B1109"><enum>(i)</enum><header>Examination
reports</header><text>Upon providing reasonable assurances of confidentiality,
a prudential regulator, a State regulator, or any other Federal agency having
jurisdiction over a covered person or service provider shall have access to any
report of examination made by the Bureau with respect to such person, and to
all revisions made to any such report.</text>
</clause><clause commented="no" id="H786C06EE1BCC4672AB9EB91213BD3917"><enum>(ii)</enum><header>Provision of
other reports to other regulators</header><text>In addition to the reports
described in clause (i), the Bureau may, in its discretion, furnish to a
prudential regulator or other agency having jurisdiction over a covered person
or service provider any other report or other confidential supervisory
information concerning such person examined by the Bureau under the authority
of any other provision of Federal law.</text>
</clause></subparagraph></paragraph><paragraph id="HDE4AC260DF804F7788BB4542EEF93AE2"><enum>(7)</enum><header>Registration</header>
<subparagraph id="HD10A3FD29DA144E5B0DE10A705ADC164"><enum>(A)</enum><header>In
general</header><text>The Bureau may prescribe rules regarding registration
requirements applicable to a covered person, other than an insured depository
institution, insured credit union, or related person.</text>
</subparagraph><subparagraph id="H49B7FC69868F45EC8C24CD9172978F14"><enum>(B)</enum><header>Registration
information</header><text>Subject to rules prescribed by the Bureau, the Bureau
may publicly disclose registration information to facilitate the ability of
consumers to identify covered persons that are registered with the
Bureau.</text>
</subparagraph><subparagraph id="H8DD2A59EE2F04F2C8B7EDC2953ADB524"><enum>(C)</enum><header>Consultation
with state agencies</header><text>In developing and implementing registration
requirements under this paragraph, the Bureau shall consult with State agencies
regarding requirements or systems (including coordinated or combined systems
for registration), where appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" id="H21FD92056F774B3FA754083B75D6363E"><enum>(8)</enum><header>Privacy
considerations</header><text>In collecting information from any person,
publicly releasing information held by the Bureau, or requiring covered persons
to publicly report information, the Bureau shall take steps to ensure that
proprietary, personal, or confidential consumer information that is protected
from public disclosure under section 552(b) or 552a of title 5, United States
Code, or any other provision of law, is not made public under this
title.</text>
</paragraph><paragraph id="HB021E71694D648A7BA90DB7F5FFD74D2"><enum>(9)</enum><header>Consumer
privacy</header>
<subparagraph id="H94754C5E91E944AD8F03374074273899"><enum>(A)</enum><header>In
general</header><text>The Bureau may not obtain from a covered person or
service provider any personally identifiable financial information about a
consumer from the financial records of the covered person or service provider,
except—</text>
<clause id="H0A5104CD6FE145068D973E82B4BD129D"><enum>(i)</enum><text>if
the financial records are reasonably described in a request by the Bureau and
the consumer provides written permission for the disclosure of such information
by the covered person or service provider to the Bureau; or</text>
</clause><clause id="HB0067E09E86B42AEAE6C95DBDA036A26"><enum>(ii)</enum><text>as
may be specifically permitted or required under other applicable provisions of
law and in accordance with the Right to Financial Privacy Act of 1978 (12
U.S.C. 3401 et seq.).</text>
</clause></subparagraph><subparagraph id="HB0437640FF79431A93A9604CEA74226E"><enum>(B)</enum><header>Treatment of
covered person or service provider</header><text>With respect to the
application of any provision of the Right to Financial Privacy Act of 1978, to
a disclosure by a covered person or service provider subject to this
subsection, the covered person or service provider shall be treated as if it
were a <quote>financial institution</quote>, as defined in section 1101 of that
Act (12 U.S.C. 3401).</text>
</subparagraph></paragraph></subsection><subsection id="H4F611B72C02D445691940E6C165FE47C"><enum>(d)</enum><header>Assessment of
significant rules</header>
<paragraph id="H7B4D33D7869E4F45813885A3818465E0"><enum>(1)</enum><header>In
general</header><text>The Bureau shall conduct an assessment of each
significant rule or order adopted by the Bureau under Federal consumer
financial law. The assessment shall address, among other relevant factors, the
effectiveness of the rule or order in meeting the purposes and objectives of
this title and the specific goals stated by the Bureau. The assessment shall
reflect available evidence and any data that the Bureau reasonably may
collect.</text>
</paragraph><paragraph id="HBFA854E2168B483789D54456174C08F2"><enum>(2)</enum><header>Reports</header><text>The
Bureau shall publish a report of its assessment under this subsection not later
than 5 years after the effective date of the subject rule or order.</text>
</paragraph><paragraph id="H565932B25B4D46489CDBEF367529CF0C"><enum>(3)</enum><header>Public comment
required</header><text>Before publishing a report of its assessment, the Bureau
shall invite public comment on recommendations for modifying, expanding, or
eliminating the newly adopted significant rule or order.</text>
</paragraph></subsection></section><section commented="no" id="H40F6DC57E0AA4F9C824EFE4D3329236D"><enum>1023.</enum><header>Review of
Bureau regulations</header>
<subsection commented="no" id="H29A8C432F88C4499A913BA078C338784"><enum>(a)</enum><header>Review of bureau
regulations</header><text>On the petition of a member agency of the Council,
the Council may set aside a final regulation prescribed by the Bureau, or any
provision thereof, if the Council decides, in accordance with subsection (c),
that the regulation or provision would put the safety and soundness of the
United States banking system or the stability of the financial system of the
United States at risk.</text>
</subsection><subsection commented="no" id="HB58065DE49714F4498C44A0C0A2ACBB2"><enum>(b)</enum><header>Petition</header>
<paragraph commented="no" id="H1CA591D6A6BF488FAF1F98FB048EF9DC"><enum>(1)</enum><header>Procedure</header><text>An
agency represented by a member of the Council may petition the Council, in
writing, and in accordance with rules prescribed pursuant to subsection (f), to
stay the effectiveness of, or set aside, a regulation if the member agency
filing the petition—</text>
<subparagraph commented="no" id="HA955CBBEFCF3435688DDDC83468ED081"><enum>(A)</enum><text>has in good faith
attempted to work with the Bureau to resolve concerns regarding the effect of
the rule on the safety and soundness of the United States banking system or the
stability of the financial system of the United States; and</text>
</subparagraph><subparagraph commented="no" id="HB30AA74C84EA4200A361EA89C61E58DF"><enum>(B)</enum><text>files the petition
with the Council not later than 10 days after the date on which the regulation
has been published in the Federal Register.</text>
</subparagraph></paragraph><paragraph commented="no" id="H805D5AE302D04305B2B474B7B7BFFD27"><enum>(2)</enum><header>Publication</header><text>Any
petition filed with the Council under this section shall be published in the
Federal Register and transmitted contemporaneously with filing to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.</text>
</paragraph></subsection><subsection commented="no" id="H2F5EB130111947AB9B0EFE9D4A59B192"><enum>(c)</enum><header>Stays and set
asides</header>
<paragraph commented="no" id="H8641B8B0D34343A3A64F12A544685FB3"><enum>(1)</enum><header>Stay</header>
<subparagraph commented="no" id="H524BD287CB5241369CBBC885FE339550"><enum>(A)</enum><header>In
general</header><text>Upon the request of any member agency, the Chairperson of
the Council may stay the effectiveness of a regulation for the purpose of
allowing appropriate consideration of the petition by the Council.</text>
</subparagraph><subparagraph commented="no" id="HE370F8C06E5F4BCDABA12F742CDD1C73"><enum>(B)</enum><header>Expiration</header><text>A
stay issued under this paragraph shall expire on the earlier of—</text>
<clause commented="no" id="H23457E9029DE4D3F9C998887C9DFC7FF"><enum>(i)</enum><text>90 days after the
date of filing of the petition under subsection (b); or</text>
</clause><clause commented="no" id="H66688F3A8AD243D29689A67AE43B9E79"><enum>(ii)</enum><text>the date on which
the Council makes a decision under paragraph (3).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HA11B21E5B67F4452A64E334B7465E27A"><enum>(2)</enum><header>No adverse
inference</header><text>After the expiration of any stay imposed under this
section, no inference shall be drawn regarding the validity or enforceability
of a regulation which was the subject of the petition.</text>
</paragraph><paragraph commented="no" id="H68196D9C85E84AC487162E5EF4536A5D"><enum>(3)</enum><header>Vote</header>
<subparagraph commented="no" id="HEC761116456742648600DBCEB3464B2D"><enum>(A)</enum><header>In
general</header><text>The decision to issue a stay of, or set aside, any
regulation under this section shall be made only with the affirmative vote in
accordance with subparagraph (B) of <fraction>2/3</fraction> of the members of
the Council then serving.</text>
</subparagraph><subparagraph commented="no" id="H1C70C8F89C784DE2BE9C37641B1B0D02"><enum>(B)</enum><header>Authorization to
vote</header><text>A member of the Council may vote to stay the effectiveness
of, or set aside, a final regulation prescribed by the Bureau only if the
agency or department represented by that member has—</text>
<clause commented="no" id="H10876137780E4D828A6FADEF32E975B3"><enum>(i)</enum><text>considered any
relevant information provided by the agency submitting the petition and by the
Bureau; and</text>
</clause><clause commented="no" id="H619AF3F0620443BFB74473E4814F15B0"><enum>(ii)</enum><text>made an official
determination, at a public meeting where applicable, that the regulation which
is the subject of the petition would put the safety and soundness of the United
States banking system or the stability of the financial system of the United
States at risk.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H2B1303AA495B4B3CB112E3B39CEDF14F"><enum>(4)</enum><header>Decisions to set
aside</header>
<subparagraph commented="no" id="H72909F74A7974E73BF9096A4EB9B62A6"><enum>(A)</enum><header>Effect of
decision</header><text>A decision by the Council to set aside a regulation
prescribed by the Bureau, or provision thereof, shall render such regulation,
or provision thereof, unenforceable.</text>
</subparagraph><subparagraph commented="no" id="HFE78308DEEAE44F4934DA3B4534EBFAE"><enum>(B)</enum><header>Timely action
required</header><text>The Council may not issue a decision to set aside a
regulation, or provision thereof, which is the subject of a petition under this
section after the expiration of the later of—</text>
<clause commented="no" id="HF3836E5F3CE645829BAA14089E9380F0"><enum>(i)</enum><text>45 days following
the date of filing of the petition, unless a stay is issued under paragraph
(1); or</text>
</clause><clause commented="no" id="HAE0C8FD0A076450596684CC91DB4C2CF"><enum>(ii)</enum><text>the expiration of
a stay issued by the Council under this section.</text>
</clause></subparagraph><subparagraph commented="no" id="HF0CCFAD4673842D0AC65282AF4168263"><enum>(C)</enum><header>Separate
authority</header><text>The issuance of a stay under this section does not
affect the authority of the Council to set aside a regulation.</text>
</subparagraph></paragraph><paragraph commented="no" id="H2FED923F35EA4ED6B3DAB96B0CA86688"><enum>(5)</enum><header>Dismissal due to
inaction</header><text>A petition under this section shall be deemed dismissed
if the Council has not issued a decision to set aside a regulation, or
provision thereof, within the period for timely action under paragraph
(4)(B).</text>
</paragraph><paragraph commented="no" id="H3D251E761C3C40768D42C994C19C8925"><enum>(6)</enum><header>Publication of
decision</header><text>Any decision under this subsection to issue a stay of,
or set aside, a regulation or provision thereof shall be published by the
Council in the Federal Register as soon as practicable after the decision is
made, with an explanation of the reasons for the decision.</text>
</paragraph><paragraph commented="no" id="H353507D1BE8043A7AFEDCA9840A0BD8F"><enum>(7)</enum><header>Rulemaking
procedures inapplicable</header><text>The notice and comment procedures under
section 553 of title 5, United States Code, shall not apply to any decision
under this section of the Council to issue a stay of, or set aside, a
regulation.</text>
</paragraph><paragraph commented="no" id="H51F87189E16D4AD68E91DB14E1164577"><enum>(8)</enum><header>Judicial review
of decisions by the council</header><text>A decision by the Council to set
aside a regulation prescribed by the Bureau, or provision thereof, shall be
subject to review under chapter 7 of title 5, United States Code.</text>
</paragraph></subsection><subsection commented="no" id="HEABDC64AEF72409485CC080C37145050"><enum>(d)</enum><header>Application of
other law</header><text>Nothing in this section shall be construed as altering,
limiting, or restricting the application of any other provision of law, except
as otherwise specifically provided in this section, including chapter 5 and
chapter 7 of title 5, United States Code, to a regulation which is the subject
of a petition filed under this section.</text>
</subsection><subsection commented="no" id="HEF8B4208429D4DF99FB6204C810597E3"><enum>(e)</enum><header>Savings
clause</header><text>Nothing in this section shall be construed as limiting or
restricting the Bureau from engaging in a rulemaking in accordance with
applicable law.</text>
</subsection><subsection commented="no" id="H0746CA5B43A1481A999C17386995551D"><enum>(f)</enum><header>Implementing
rules</header><text>The Council shall prescribe procedural rules to implement
this section.</text>
</subsection></section><section id="H227965517C04497A848F27F885EB9B2B"><enum>1024.</enum><header>Supervision of
nondepository covered persons</header>
<subsection id="H0ACC4B8194E341B6992F039DE18A3698"><enum>(a)</enum><header>Scope of
coverage</header>
<paragraph id="H45BE98FFF1F1464E8082A30C0187DB98"><enum>(1)</enum><header>Applicability</header><text>Notwithstanding
any other provision of this title, and except as provided in paragraph (3),
this section shall apply to any covered person who—</text>
<subparagraph id="H75B5F63F0544462FB8295E8442A5C5A7"><enum>(A)</enum><text>offers or provides
origination, brokerage, or servicing of loans secured by real estate for use by
consumers primarily for personal, family, or household purposes, or loan
modification or foreclosure relief services in connection with such
loans;</text>
</subparagraph><subparagraph id="H8A51D73BDA4D4C8E94DCAFF0ECD91129"><enum>(B)</enum><text>is a larger
participant of a market for other consumer financial products or services, as
defined by rule in accordance with paragraph (2);</text>
</subparagraph><subparagraph id="HBD6CAE0D704F482C89D9C2DB18E556C8"><enum>(C)</enum><text>the Bureau has
reasonable cause to determine, by order, after notice to the covered person and
a reasonable opportunity for such covered person to respond, based on
complaints collected through the system under section 1013(b)(3) or information
from other sources, that such covered person is engaging, or has engaged, in
conduct that poses risks to consumers with regard to the offering or provision
of consumer financial products or services;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB791D925F65243A6943445EE7F5B1830"><enum>(D)</enum><text display-inline="yes-display-inline">offers or provides to a consumer any
private education loan, as defined in section 140 of the Truth in Lending Act
(15 U.S.C. 1650), notwithstanding section 1027(a)(2)(A) and subject to section
1027(a)(2)(C); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81E717A075E84B3A941D65F40BFAEB1C"><enum>(E)</enum><text>offers or provides
to a consumer a payday loan.</text>
</subparagraph></paragraph><paragraph id="HAC2BC11B8D4449C8B27E54FBAF6FF664"><enum>(2)</enum><header>Rulemaking to
define covered persons subject to this section</header><text>The Bureau shall
consult with the Federal Trade Commission prior to issuing a rule, in
accordance with paragraph (1)(B), to define covered persons subject to this
section. The Bureau shall issue its initial rule not later than 1 year after
the designated transfer date.</text>
</paragraph><paragraph commented="no" id="HCF4618F62055484E8DE3A8F99EF3B4A8"><enum>(3)</enum><header>Rules of
construction</header>
<subparagraph commented="no" id="HD238C522E8AA4C1B85EB1C41FC36325D"><enum>(A)</enum><header>Certain persons
excluded</header><text>This section shall not apply to persons described in
section 1025(a) or 1026(a).</text>
</subparagraph><subparagraph commented="no" id="H9DB93261CD38437E92E03B6E8010CC40"><enum>(B)</enum><header>Activity
levels</header><text>For purposes of computing activity levels under paragraph
(1) or rules issued thereunder, activities of affiliated companies (other than
insured depository institutions or insured credit unions) shall be
aggregated.</text>
</subparagraph></paragraph></subsection><subsection id="H4BF4F5517CF74D79B43A6E8185E646E7"><enum>(b)</enum><header>Supervision</header>
<paragraph id="H6B4DD46CAD5D4ADEAF3654CF63758EFA"><enum>(1)</enum><header>In
general</header><text>The Bureau shall require reports and conduct examinations
on a periodic basis of persons described in subsection (a)(1) for purposes
of—</text>
<subparagraph id="H774EEB1DA0C84F848A6E935CE4572502"><enum>(A)</enum><text>assessing
compliance with the requirements of Federal consumer financial law;</text>
</subparagraph><subparagraph id="HA8E95007F9FC43B4B14D72C30169AB33"><enum>(B)</enum><text>obtaining
information about the activities and compliance systems or procedures of such
person; and</text>
</subparagraph><subparagraph id="HF460AE4FBC50448FB0914B8303C1BC4D"><enum>(C)</enum><text>detecting and
assessing risks to consumers and to markets for consumer financial products and
services.</text>
</subparagraph></paragraph><paragraph id="H894E0B41A7904E36A1A92C5101EC13CD"><enum>(2)</enum><header>Risk-based
supervision program</header><text>The Bureau shall exercise its authority under
paragraph (1) in a manner designed to ensure that such exercise, with respect
to persons described in subsection (a)(1), is based on the assessment by the
Bureau of the risks posed to consumers in the relevant product markets and
geographic markets, and taking into consideration, as applicable—</text>
<subparagraph id="H56BEDE1DBA3A4E0DBDD454579A3EBBEA"><enum>(A)</enum><text>the asset size of
the covered person;</text>
</subparagraph><subparagraph id="H8B82B4DC736D4E218C5E753A0452124E"><enum>(B)</enum><text>the volume of
transactions involving consumer financial products or services in which the
covered person engages;</text>
</subparagraph><subparagraph id="H57DD84E1CE1B4EE6BF04889FC11A3F4E"><enum>(C)</enum><text>the risks to
consumers created by the provision of such consumer financial products or
services;</text>
</subparagraph><subparagraph id="HEC69FEBB63A24FABA0FC29C9B6E141EE"><enum>(D)</enum><text>the extent to
which such institutions are subject to oversight by State authorities for
consumer protection; and</text>
</subparagraph><subparagraph id="H51C7A905A8B84C8CAEFEF50B7937768F"><enum>(E)</enum><text>any other factors
that the Bureau determines to be relevant to a class of covered persons.</text>
</subparagraph></paragraph><paragraph id="H3C8474D27CF64B5BB79025C10FAA691E"><enum>(3)</enum><header>Coordination</header><text>To
minimize regulatory burden, the Bureau shall coordinate its supervisory
activities with the supervisory activities conducted by prudential regulators
and the State bank regulatory authorities, including establishing their
respective schedules for examining persons described in subsection (a)(1) and
requirements regarding reports to be submitted by such persons.</text>
</paragraph><paragraph id="H6F3A2C41117C4742BA734B4A3147215D"><enum>(4)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph id="H7C548C8BAB3A42E1864D8C362A274B11"><enum>(A)</enum><text>reports pertaining
to persons described in subsection (a)(1) that have been provided or required
to have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph id="HB4D842ED37974D0CA93FAF833E65AAE0"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph id="H7A445967F1F9447A83E95DAB2BA73CE9"><enum>(5)</enum><header>Preservation of
authority</header><text>Nothing in this title may be construed as limiting the
authority of the Director to require reports from persons described in
subsection (a)(1), as permitted under paragraph (1), regarding information
owned or under the control of such person, regardless of whether such
information is maintained, stored, or processed by another person.</text>
</paragraph><paragraph id="H2AB0730682314F40B2BED74B03A49B7D"><enum>(6)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph><paragraph id="HDD4F7A57229846429C6A301C6A834CC9"><enum>(7)</enum><header>Registration,
recordkeeping and other requirements for certain persons</header>
<subparagraph id="H70B7C8FD0A6B492FA3DDF867CD4EF4F5"><enum>(A)</enum><header>In
general</header><text>The Bureau shall prescribe rules to facilitate
supervision of persons described in subsection (a)(1) and assessment and
detection of risks to consumers.</text>
</subparagraph><subparagraph id="HE59C71B45C724555A97E7C3082BA5B13"><enum>(B)</enum><header>Recordkeeping</header><text>The
Bureau may require a person described in subsection (a)(1), to generate,
provide, or retain records for the purposes of facilitating supervision of such
persons and assessing and detecting risks to consumers.</text>
</subparagraph><subparagraph id="HA8C4812D3EBE4CADB01E418B3E7BD8FD"><enum>(C)</enum><header>Requirements
concerning obligations</header><text>The Bureau may prescribe rules regarding a
person described in subsection (a)(1), to ensure that such persons are
legitimate entities and are able to perform their obligations to consumers.
Such requirements may include background checks for principals, officers,
directors, or key personnel and bonding or other appropriate financial
requirements.</text>
</subparagraph><subparagraph id="HBAB3D12462834063848B6A4816BA002B"><enum>(D)</enum><header>Consultation
with State agencies</header><text>In developing and implementing requirements
under this paragraph, the Bureau shall consult with State agencies regarding
requirements or systems (including coordinated or combined systems for
registration), where appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H69C20C67C6EE46C4889C04116B52929D"><enum>(c)</enum><header>Enforcement
authority</header>
<paragraph id="H6B7E3A726B9B4F0A970A181557601B09"><enum>(1)</enum><header>The Bureau to
have enforcement authority</header><text>Except as provided in paragraph (3)
and section 1061, with respect to any person described in subsection (a)(1), to
the extent that Federal law authorizes the Bureau and another Federal agency to
enforce Federal consumer financial law, the Bureau shall have exclusive
authority to enforce that Federal consumer financial law.</text>
</paragraph><paragraph id="H973E45F3345F4BBF9FD5A5735AEBA0AA"><enum>(2)</enum><header>Referral</header><text>Any
Federal agency authorized to enforce a Federal consumer financial law described
in paragraph (1) may recommend in writing to the Bureau that the Bureau
initiate an enforcement proceeding, as the Bureau is authorized by that Federal
law or by this title.</text>
</paragraph><paragraph id="HF372FBD1AC644BF093C9DE63ED47252E"><enum>(3)</enum><header>Coordination
with the Federal trade commission</header>
<subparagraph id="H942DCA96E9EA4528A6CF456587161337"><enum>(A)</enum><header>In
general</header><text>The Bureau and the Federal Trade Commission shall
negotiate an agreement for coordinating with respect to enforcement actions by
each agency regarding the offering or provision of consumer financial products
or services by any covered person that is described in subsection (a)(1), or
service providers thereto. The agreement shall include procedures for notice to
the other agency, where feasible, prior to initiating a civil action to enforce
any Federal law regarding the offering or provision of consumer financial
products or services.</text>
</subparagraph><subparagraph id="HAEDFF8FBA49E4CF18A73603DEE3810C4"><enum>(B)</enum><header>Civil
actions</header><text>Whenever a civil action has been filed by, or on behalf
of, the Bureau or the Federal Trade Commission for any violation of any
provision of Federal law described in subparagraph (A), or any regulation
prescribed under such provision of law—</text>
<clause id="HBF3186E43CCE4D30B98E0A8ECDC41D1D"><enum>(i)</enum><text>the
other agency may not, during the pendency of that action, institute a civil
action under such provision of law against any defendant named in the complaint
in such pending action for any violation alleged in the complaint; and</text>
</clause><clause id="HB97FF535FC13442BB544EB313E0AE9B1"><enum>(ii)</enum><text>the
Bureau or the Federal Trade Commission may intervene as a party in any such
action brought by the other agency, and, upon intervening—</text>
<subclause id="H0199F4E904704396BE22EB442226E51A"><enum>(I)</enum><text>be heard on all
matters arising in such enforcement action; and</text>
</subclause><subclause id="H19CA802D83ED46EEBDFD35536D090C49"><enum>(II)</enum><text>file petitions
for appeal in such actions.</text>
</subclause></clause></subparagraph><subparagraph id="HB8730104F95D47BAA9853C2F74FAB42E"><enum>(C)</enum><header>Agreement
terms</header><text>The terms of any agreement negotiated under subparagraph
(A) may modify or supersede the provisions of subparagraph (B).</text>
</subparagraph><subparagraph id="HE7FC628B0819449CB87A3479BAE88100"><enum>(D)</enum><header>Deadline</header><text>The
agencies shall reach the agreement required under subparagraph (A) not later
than 6 months after the designated transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="H81DF06FB19414ED7B79CAEE468BE8A94"><enum>(d)</enum><header>Exclusive
rulemaking and examination authority</header><text>Notwithstanding any other
provision of Federal law and except as provided in section 1061, to the extent
that Federal law authorizes the Bureau and another Federal agency to issue
regulations or guidance, conduct examinations, or require reports from a person
described in subsection (a)(1) under such law for purposes of assuring
compliance with Federal consumer financial law and any regulations thereunder,
the Bureau shall have the exclusive authority to prescribe rules, issue
guidance, conduct examinations, require reports, or issue exemptions with
regard to a person described in subsection (a)(1), subject to those provisions
of law.</text>
</subsection><subsection id="H92B45A393AD84B0F97A4580102BAFD60"><enum>(e)</enum><header>Service
providers</header><text>A service provider to a person described in subsection
(a)(1) shall be subject to the authority of the Bureau under this section, to
the same extent as if such service provider were engaged in a service
relationship with a bank, and the Bureau were an appropriate Federal banking
agency under section 7(c) of the Bank Service Company Act (12 U.S.C. 1867(c)).
In conducting any examination or requiring any report from a service provider
subject to this subsection, the Bureau shall coordinate with the appropriate
prudential regulator, as applicable.</text>
</subsection><subsection id="H226DD33FD9B24CB6BFAFD981F47B859C"><enum>(f)</enum><header>Preservation of
farm credit administration authority</header><text>No provision of this title
may be construed as modifying, limiting, or otherwise affecting the authority
of the Farm Credit Administration.</text>
</subsection></section><section id="H163CBB6893B34CB89040E49FF8B68273"><enum>1025.</enum><header>Supervision of
very large banks, savings associations, and credit unions</header>
<subsection id="HD9EE0C0BCC2140618504EA38BE342405"><enum>(a)</enum><header>Scope of
coverage</header><text>This section shall apply to any covered person that
is—</text>
<paragraph id="H54AA6A3F219F4AE881BB0345D264E77D"><enum>(1)</enum><text>an insured
depository institution with total assets of more than $10,000,000,000 and any
affiliate thereof; or</text>
</paragraph><paragraph id="H50584845006C4068903B924BB4276519"><enum>(2)</enum><text>an insured credit
union with total assets of more than $10,000,000,000 and any affiliate
thereof.</text>
</paragraph></subsection><subsection id="H86324FA1BBE34C38A8A700093DAEB3F3"><enum>(b)</enum><header>Supervision</header>
<paragraph id="H9D9E6259B48E4795B02E5EE63AC8798F"><enum>(1)</enum><header>In
general</header><text>The Bureau shall have exclusive authority to require
reports and conduct examinations on a periodic basis of persons described in
subsection (a) for purposes of—</text>
<subparagraph id="HBFDFAD220F244B359F41D8DDC8328FE5"><enum>(A)</enum><text>assessing
compliance with the requirements of Federal consumer financial laws;</text>
</subparagraph><subparagraph id="H0547B3150678444CBA240D1144357870"><enum>(B)</enum><text>obtaining
information about the activities subject to such laws and the associated
compliance systems or procedures of such persons; and</text>
</subparagraph><subparagraph id="H499A80BE07AC4AAF8D7BC17760771B77"><enum>(C)</enum><text>detecting and
assessing associated risks to consumers and to markets for consumer financial
products and services.</text>
</subparagraph></paragraph><paragraph id="H0135AB2F81F84C67AFB8EBA4D3CE65B0"><enum>(2)</enum><header>Coordination</header><text>To
minimize regulatory burden, the Bureau shall coordinate its supervisory
activities with the supervisory activities conducted by prudential regulators
and the State bank regulatory authorities, including consultation regarding
their respective schedules for examining such persons described in subsection
(a) and requirements regarding reports to be submitted by such persons.</text>
</paragraph><paragraph id="H9DF2667D365C41E98A4E14769CEC7D9E"><enum>(3)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph id="H367CD7C7A56B41569B94FB938775A899"><enum>(A)</enum><text>reports pertaining
to a person described in subsection (a) that have been provided or required to
have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph id="H1D434A15FBB64110ABF3058898E7705B"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph id="H718FEDF01377444C8088CC496A905E55"><enum>(4)</enum><header>Preservation of
authority</header><text>Nothing in this title may be construed as limiting the
authority of the Director to require reports from a person described in
subsection (a), as permitted under paragraph (1), regarding information owned
or under the control of such person, regardless of whether such information is
maintained, stored, or processed by another person.</text>
</paragraph><paragraph id="H51A3F24651944B43BA080F183895B519"><enum>(5)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph></subsection><subsection id="H07DF2F430C7A4497945A47ABF0F4A3B6"><enum>(c)</enum><header>Primary
enforcement authority</header>
<paragraph id="H9AB07C783B244D15B2963E87A59D98A7"><enum>(1)</enum><header>The bureau to
have primary enforcement authority</header><text>To the extent that the Bureau
and another Federal agency are authorized to enforce a Federal consumer
financial law, the Bureau shall have primary authority to enforce that Federal
consumer financial law with respect to any person described in subsection
(a).</text>
</paragraph><paragraph id="H7C92DA57E5FD4AF79FD49BABE81DF392"><enum>(2)</enum><header>Referral</header><text>Any
Federal agency, other than the Federal Trade Commission, that is authorized to
enforce a Federal consumer financial law may recommend, in writing, to the
Bureau that the Bureau initiate an enforcement proceeding with respect to a
person described in subsection (a), as the Bureau is authorized to do by that
Federal consumer financial law.</text>
</paragraph><paragraph id="H7803EB1562E34CAC97A01F41DBD28155"><enum>(3)</enum><header>Backup
enforcement authority of other Federal agency</header><text>If the Bureau does
not, before the end of the 120-day period beginning on the date on which the
Bureau receives a recommendation under paragraph (2), initiate an enforcement
proceeding, the other agency referred to in paragraph (2) may initiate an
enforcement proceeding, including performing follow up supervisory and support
functions incidental thereto, to assure compliance with such proceeding.</text>
</paragraph></subsection><subsection id="H6E376667C8904090BB07CA01B710F757"><enum>(d)</enum><header>Service
providers</header><text>A service provider to a person described in subsection
(a) shall be subject to the authority of the Bureau under this section, to the
same extent as if the Bureau were an appropriate Federal banking agency under
section 7(c) of the Bank Service Company Act 12 U.S.C. 1867(c). In conducting
any examination or requiring any report from a service provider subject to this
subsection, the Bureau shall coordinate with the appropriate prudential
regulator.</text>
</subsection><subsection display-inline="no-display-inline" id="H1FA4565AE93240AF99D6F4051FB63F79"><enum>(e)</enum><header>Simultaneous and
coordinated supervisory action</header>
<paragraph id="H18B01030CB0248CAA5880AE368FF89C0"><enum>(1)</enum><header>Examinations</header><text display-inline="yes-display-inline">A prudential regulator and the Bureau
shall, with respect to each insured depository institution, insured credit
union, or other covered person described in subsection (a) that is supervised
by the prudential regulator and the Bureau, respectively—</text>
<subparagraph id="HA52BE7AF0C694944BC871C84A5E9817C"><enum>(A)</enum><text>coordinate the
scheduling of examinations of the insured depository institution, insured
credit union, or other covered person described in subsection (a);</text>
</subparagraph><subparagraph id="H92B2E234550B4A65AD69ACD318126531"><enum>(B)</enum><text display-inline="yes-display-inline">conduct simultaneous examinations of each
insured depository institution or insured credit union, unless such institution
requests examinations to be conducted separately;</text>
</subparagraph><subparagraph id="HB7256B7A936F41D0856DFD4F16910696"><enum>(C)</enum><text>share each draft
report of examination with the other agency and permit the receiving agency a
reasonable opportunity (which shall not be less than a period of 30 days after
the date of receipt) to comment on the draft report before such report is made
final; and</text>
</subparagraph><subparagraph id="H1D450C1BFC8D40F5BA6841845832827F"><enum>(D)</enum><text>prior to issuing a
final report of examination or taking supervisory action, take into
consideration concerns, if any, raised in the comments made by the other
agency.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H137B273C098D456CB4E34E3B96E4CFE7"><enum>(2)</enum><header>Coordination
with State bank supervisors</header><text>The Bureau shall pursue arrangements
and agreements with State bank supervisors to coordinate examinations,
consistent with paragraph (1).</text>
</paragraph><paragraph id="H2B46268AF65642BFAACBB535B10F54FB"><enum>(3)</enum><header>Avoidance of
conflict in supervision</header>
<subparagraph id="H760495F50E064F7DBCF90FDBCFEE3F0D"><enum>(A)</enum><header>Request</header><text>If
the proposed supervisory determinations of the Bureau and a prudential
regulator (in this section referred to collectively as the
<quote>agencies</quote>) are conflicting, an insured depository institution,
insured credit union, or other covered person described in subsection (a) may
request the agencies to coordinate and present a joint statement of coordinated
supervisory action.</text>
</subparagraph><subparagraph id="H8DA3ABAD2775456DA7C5544611F84AB7"><enum>(B)</enum><header>Joint
statement</header><text>The agencies shall provide a joint statement under
subparagraph (A), not later than 30 days after the date of receipt of the
request of the insured depository institution, credit union, or covered person
described in subsection (a).</text>
</subparagraph></paragraph><paragraph id="H058C318725C44E849D112335DE43765C"><enum>(4)</enum><header>Appeals to
governing panel</header>
<subparagraph id="H10C9D82D9D2544D098FD9476D5D809BE"><enum>(A)</enum><header>In
general</header><text>If the agencies do not resolve the conflict or issue a
joint statement required by subparagraph (B), or if either of the agencies
takes or attempts to take any supervisory action relating to the request for
the joint statement without the consent of the other agency, an insured
depository institution, insured credit union, or other covered person described
in subsection (a) may institute an appeal to a governing panel, as provided in
this subsection, not later than 30 days after the expiration of the period
during which a joint statement is required to be filed under paragraph
(3)(B).</text>
</subparagraph><subparagraph id="H9A10EF9F91294EBDBDE6DE7CF65A535D"><enum>(B)</enum><header>Composition of
governing panel</header><text>The governing panel for an appeal under this
paragraph shall be composed of—</text>
<clause id="H901FBD44C35648648AAF52BEA65D8BEE"><enum>(i)</enum><text>a
representative from the Bureau and a representative of the prudential
regulator, both of whom—</text>
<subclause id="H474C59A7FDEF477189B375FDCDDA165B"><enum>(I)</enum><text>have not
participated in the material supervisory determinations under appeal;
and</text>
</subclause><subclause id="HFDD10A4689AA4F1AA68031E905CD8D85"><enum>(II)</enum><text>do not directly
or indirectly report to the person who participated materially in the
supervisory determinations under appeal; and</text>
</subclause></clause><clause id="H6845F6613728437FA2ECDCE2678CEF81"><enum>(ii)</enum><text>one
individual representative, to be determined on a rotating basis, from among the
Board of Governors, the Corporation, the National Credit Union Administration,
and the Office of the Comptroller of the Currency, other than any agency
involved in the subject dispute.</text>
</clause></subparagraph><subparagraph id="H3A6B165F6693429DBC132C3EB864905C"><enum>(C)</enum><header>Conduct of
appeal</header><text>In an appeal under this paragraph—</text>
<clause id="H82BD5B646DF340AF828F092D3091C283"><enum>(i)</enum><text>the
insured depository institution, insured credit union, or other covered person
described in subsection (a)—</text>
<subclause id="H953447A377464B3196D4BEDF67130CB0"><enum>(I)</enum><text>shall include in
its appeal all the facts and legal arguments pertaining to the matter;
and</text>
</subclause><subclause id="HDBC9BD118932478EB01BD58038DEA0B8"><enum>(II)</enum><text>may, through
counsel, employees, or representatives, appear before the governing panel in
person or by telephone; and</text>
</subclause></clause><clause id="HCDF49F0330D94142A2F5873CD9F4E17A"><enum>(ii)</enum><text>the
governing panel—</text>
<subclause id="HC1ACA126B78B4184BE6351109FFFD746"><enum>(I)</enum><text>may request the
insured depository institution, insured credit union, or other covered person
described in subsection (a), the Bureau, or the prudential regulator to produce
additional information relevant to the appeal; and</text>
</subclause><subclause id="H9D4D22CD81074A158E7D7EC0065D0E8A"><enum>(II)</enum><text>by a majority
vote of its members, shall provide a final determination, in writing, not later
than 30 days after the date of filing of an informationally complete appeal, or
such longer period as the panel and the insured depository institution, insured
credit union, or other covered person described in subsection (a) may jointly
agree.</text>
</subclause></clause></subparagraph><subparagraph id="H340F16E5B0CD4C1591D21DAA43D61935"><enum>(D)</enum><header>Public
availability of determinations</header><text>A governing panel shall publish
all information contained in a determination by the governing panel, with
appropriate redactions of information that would be subject to an exemption
from disclosure under section 552 of title 5, United States Code.</text>
</subparagraph><subparagraph id="HAD150CDBD3FB4A9680E6102F1107EFF6"><enum>(E)</enum><header>Prohibition
against retaliation</header><text>The Bureau and the prudential regulators
shall prescribe rules to provide safeguards from retaliation against the
insured depository institution, insured credit union, or other covered person
described in subsection (a) instituting an appeal under this paragraph, as well
as their officers and employees.</text>
</subparagraph><subparagraph id="H3ECFB1AC8BC6466F92DBE82DE27A8B64"><enum>(F)</enum><header>Limitation</header><text>The
process provided in this paragraph shall not apply to a determination by a
prudential regulator to appoint a conservator or receiver for an insured
depository institution or a liquidating agent for an insured credit union, as
the case may be, or a decision to take action pursuant to section 38 of the
Federal Deposit Insurance Act (12 U.S.C. 1831o) or section 212 of the Federal
Credit Union Act (112 U.S.C. 1790a), as applicable.</text>
</subparagraph><subparagraph id="H6EF06A4BAB0446ECB7A889A54FF57822"><enum>(G)</enum><header>Effect on other
authority</header><text>Nothing in this section shall modify or limit the
authority of the Bureau to interpret, or take enforcement action under, any
Federal consumer financial law, or the authority of a prudential regulator to
interpret or take enforcement action under any other provision of Federal law
for safety and soundness purposes.</text>
</subparagraph></paragraph></subsection></section><section id="H45BA88FB0B5D4F2094AE7E8A9DE5C9CC"><enum>1026.</enum><header>Other banks,
savings associations, and credit unions</header>
<subsection id="H9BE58FCE942045DA8342458F13D5AF9C"><enum>(a)</enum><header>Scope of
coverage</header><text>This section shall apply to any covered person that
is—</text>
<paragraph id="HC459DA606B4842C5BAD73814F4F36252"><enum>(1)</enum><text>an insured
depository institution with total assets of $10,000,000,000 or less; or</text>
</paragraph><paragraph id="H4D4FE78EE4DC43FF9ACC0FE293CAC27A"><enum>(2)</enum><text>an insured credit
union with total assets of $10,000,000,000 or less.</text>
</paragraph></subsection><subsection commented="no" id="HA405531551DC42B6BF787057921ED9B2"><enum>(b)</enum><header>Reports</header><text>The
Director may require reports from a person described in subsection (a), as
necessary to support the role of the Bureau in implementing Federal consumer
financial law, to support its examination activities under subsection (c), and
to assess and detect risks to consumers and consumer financial markets.</text>
<paragraph commented="no" id="HE93F2A127AD34BF5BB70B76C699776A3"><enum>(1)</enum><header>Use of existing
reports</header><text>The Bureau shall, to the fullest extent possible,
use—</text>
<subparagraph commented="no" id="H938408EEE4874F7B8BB0C8904D887B03"><enum>(A)</enum><text>reports pertaining
to a person described in subsection (a) that have been provided or required to
have been provided to a Federal or State agency; and</text>
</subparagraph><subparagraph commented="no" id="H32278702A35A49C0A1292892F692B6AB"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph commented="no" id="HBF7B308F3B86433B903AF10CE2CB0AC4"><enum>(2)</enum><header>Preservation of
authority</header><text>Nothing in this subsection may be construed as limiting
the authority of the Director from requiring from a person described in
subsection (a), as permitted under paragraph (1), information owned or under
the control of such person, regardless of whether such information is
maintained, stored, or processed by another person.</text>
</paragraph><paragraph commented="no" id="HF6F31FB62E454C91B60472A766E8BF02"><enum>(3)</enum><header>Reports of tax
law noncompliance</header><text>The Bureau shall provide the Commissioner of
Internal Revenue with any report of examination or related information
identifying possible tax law noncompliance.</text>
</paragraph></subsection><subsection commented="no" id="H5136F3B26F9D410289AA5ED0854BE69E"><enum>(c)</enum><header>Examinations</header>
<paragraph commented="no" id="HAA311126ED6D46339A6FC4151A2FF8AD"><enum>(1)</enum><header>In
general</header><text>The Bureau may, at its discretion, include examiners on a
sampling basis of the examinations performed by the prudential regulator to
assess compliance with the requirements of Federal consumer financial law of
persons described in subsection (a).</text>
</paragraph><paragraph commented="no" id="H9B01E8B3D1404E7F89643033756465AA"><enum>(2)</enum><header>Agency
coordination</header><text>The prudential regulator shall—</text>
<subparagraph commented="no" id="HF531ADA8189144ECABAFAF484015B5DB"><enum>(A)</enum><text>provide all
reports, records, and documentation related to the examination process for any
institution included in the sample referred to in paragraph (1) to the Bureau
on a timely and continual basis;</text>
</subparagraph><subparagraph commented="no" id="H3B159B84838645E69CD9FA02DC02935F"><enum>(B)</enum><text>involve such
Bureau examiner in the entire examination process for such person; and</text>
</subparagraph><subparagraph commented="no" id="HACBBC97358E242278452CCBE980E531B"><enum>(C)</enum><text>consider input of
the Bureau concerning the scope of an examination, conduct of the examination,
the contents of the examination report, the designation of matters requiring
attention, and examination ratings.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HA3A21FD15AB74206B5EAD9D53AC64D03"><enum>(d)</enum><header>Enforcement</header>
<paragraph commented="no" id="H54B46D28CA884946B720CBF8B5BE21A9"><enum>(1)</enum><header>In
general</header><text>Except for requiring reports under subsection (b), the
prudential regulator is authorized to enforce the requirements of Federal
consumer financial laws and, with respect to a covered person described in
subsection (a), shall have exclusive authority (relative to the Bureau) to
enforce such laws .</text>
</paragraph><paragraph commented="no" id="HEFAA2E7BB5C046289C4A12074DDD5FBE"><enum>(2)</enum><header>Coordination
with prudential regulator</header>
<subparagraph commented="no" id="HD4DC63FF8B2B44079C760A1A5CC90F0B"><enum>(A)</enum><header>Referral</header><text>When
the Bureau has reason to believe that a person described in subsection (a) has
engaged in a material violation of a Federal consumer financial law, the Bureau
shall notify the prudential regulator in writing and recommend appropriate
action to respond.</text>
</subparagraph><subparagraph commented="no" id="H582EEE173326489C8BAD8EA1411A5DD3"><enum>(B)</enum><header>Response</header><text>Upon
receiving a recommendation under subparagraph (A), the prudential regulator
shall provide a written response to the Bureau not later than 60 days
thereafter.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HC138B794F383473BBA8604AAB9B700B7"><enum>(e)</enum><header>Service
providers</header><text>A service provider to a substantial number of persons
described in subsection (a) shall be subject to the authority of the Bureau
under section 1025 to the same extent as if the Bureau were an appropriate
Federal bank agency under section 7(c) of the Bank Service Company Act (12
U.S.C. 1867(c)). When conducting any examination or requiring any report from a
service provider subject to this subsection, the Bureau shall coordinate with
the appropriate prudential regulator.</text>
</subsection></section><section id="HE4F31DA22055412D8EAC66C1D43722E2"><enum>1027.</enum><header>Limitations on
authorities of the Bureau; preservation of authorities</header>
<subsection id="HBC2EB89C134B4FD5B4AEF6F8627CFE45"><enum>(a)</enum><header>Exclusion for
merchants, retailers, and other sellers of nonfinancial goods or
services</header>
<paragraph id="H24D381D75FE24C948A371C3FDA6FBC99"><enum>(1)</enum><header>Sale or
brokerage of nonfinancial good or service</header><text>The Bureau may not
exercise any rulemaking, supervisory, enforcement or other authority under this
title with respect to a person who is a merchant, retailer, or seller of any
nonfinancial good or service and is engaged in the sale or brokerage of such
nonfinancial good or service, except to the extent that such person is engaged
in offering or providing any consumer financial product or service, or is
otherwise subject to any enumerated consumer law or any law for which
authorities are transferred under subtitle F or H.</text>
</paragraph><paragraph id="HBFB1CB7C870A4A72948BB04AAD2F89A0"><enum>(2)</enum><header>Offering or
provision of certain consumer financial products or services in connection with
the sale or brokerage of nonfinancial good or service</header>
<subparagraph id="H1F269C628A31413D856399BC083113F3"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), and subject to
subparagraph (C), the Bureau may not exercise any rulemaking, supervisory,
enforcement, or other authority under this title with respect to a merchant,
retailer, or seller of nonfinancial goods or services, but only to the extent
that such person—</text>
<clause id="H949E0CD18D4E42A4A5322BE3AC66E29C"><enum>(i)</enum><text>extends credit
directly to a consumer, in a case in which the good or service being provided
is not itself a consumer financial product or service (other than credit
described in this subparagraph), exclusively for the purpose of enabling that
consumer to purchase such nonfinancial good or service directly from the
merchant, retailer, or seller;</text>
</clause><clause id="HAF623709BB324F5384F2A520CFBF6A16"><enum>(ii)</enum><text>directly, or
through an agreement with another person, collects debt arising from credit
extended as described in clause (i); or</text>
</clause><clause id="HC353791ACA0E4C04A95479A8EE06D175"><enum>(iii)</enum><text>sells or conveys
debt described in clause (i) that is delinquent or otherwise in default.</text>
</clause></subparagraph><subparagraph id="HCF0C786287924963A067649A4F3729F7"><enum>(B)</enum><header>Applicability</header><text>Subparagraph
(A) does not apply to any credit transaction or collection of debt, other than
as described in subparagraph (C)(i), arising from a transaction described in
subparagraph (A)—</text>
<clause id="HA4C79405E17348119D390AE330BE5EA4"><enum>(i)</enum><text>in
which the merchant, retailer, or seller of nonfinancial goods or services
assigns, sells or otherwise conveys to another person such debt owed by the
consumer (except for a sale of debt that is delinquent or otherwise in default,
as described in subparagraph (A)(iii));</text>
</clause><clause id="HEB1178C0C60449AAA99250A9B6DB76E5"><enum>(ii)</enum><text>in
which the credit extended significantly exceeds the market value of the
nonfinancial good or service provided, or the Bureau otherwise finds that the
sale of the nonfinancial good or service is done as a subterfuge, so as to
evade or circumvent the provisions of this title; or</text>
</clause><clause id="H3F390973874D45EE880A6F3401FC4D12"><enum>(iii)</enum><text>in
which the merchant, retailer, or seller of nonfinancial goods or services
regularly extends credit and the credit is subject to a finance charge.</text>
</clause></subparagraph><subparagraph commented="no" id="HB945A87FAB9E437388BA34E751174C67"><enum>(C)</enum><header>Limitations</header>
<clause commented="no" display-inline="no-display-inline" id="HF0C956BB6BB84BD1960F60F865E8F7E6"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (B),
subparagraph (A) shall apply with respect to a merchant, retailer, or seller of
nonfinancial goods or services that is not engaged significantly in offering or
providing consumer financial products or services.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H442BB73F8DAA41309B2EEFCEA482E897"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Subparagraph (A) and clause (i) of this
subparagraph do not apply to any merchant, retailer, or seller of nonfinancial
goods or services—</text>
<subclause id="H3899A31585E246868F0856DC366B3504"><enum>(I)</enum><text>if such merchant,
retailer, or seller of nonfinancial goods or services is engaged in a
transaction described in subparagraph (B)(i) or (B)(ii); or</text>
</subclause><subclause id="HDDA8B9787D7340FFAEE16D7A962E3899"><enum>(II)</enum><text>to the extent
that such merchant, retailer, or seller is subject to any enumerated consumer
law or any law for which authorities are transferred under subtitle F or H, but
the Bureau may exercise such authority only with respect to that law.</text>
</subclause></clause></subparagraph><subparagraph id="H633BC82A4F9647F980F2B77DFD4EF1E8"><enum>(D)</enum><header>Rules</header>
<clause commented="no" display-inline="no-display-inline" id="H7FBE67299C3B498685C19CAC5E0A1934"><enum>(i)</enum><header display-inline="yes-display-inline">Authority of other agencies</header><text display-inline="yes-display-inline">No provision of this title shall be
construed as modifying, limiting, or superseding the supervisory or enforcement
authority of the Federal Trade Commission or any other agency (other than the
Bureau) with respect to credit extended, or the collection of debt arising from
such extension, directly by a merchant or retailer to a consumer exclusively
for the purpose of enabling that consumer to purchase nonfinancial goods or
services directly from the merchant or retailer.</text>
</clause><clause id="H5E23E558AF7E4969903362F6FA3D1C67"><enum>(ii)</enum><header>Small
businesses</header><text>A merchant, retailer, or seller of nonfinancial goods
or services that would otherwise be subject to the authority of the Bureau
solely by virtue of the application of subparagraph (B)(iii) shall be deemed
not to be engaged significantly in offering or providing consumer financial
products or services under subparagraph (C)(i), if such person—</text>
<subclause id="H0ADC2F6EED814BD99C4BDB81E24188CE"><enum>(I)</enum><text>only extends
credit for the sale of nonfinancial goods or services, as described in
subparagraph (A)(i);</text>
</subclause><subclause id="H713890A0C1F54B2388DAB35FCD54F892"><enum>(II)</enum><text>retains such
credit on its own accounts (except to sell or convey such debt that is
delinquent or otherwise in default); and</text>
</subclause><subclause id="HE7C001A29B5444EDB2D1427FA0126DC5"><enum>(III)</enum><text>meets the
relevant industry size threshold to be a small business concern, based on
annual receipts, pursuant to section 3 of the Small Business Act (15 U.S.C.
632) and the implementing rules thereunder.</text>
</subclause></clause><clause id="H606E4159F91944B89CAE505AFCE7A9FA"><enum>(iii)</enum><header>Initial
year</header><text>A merchant, retailer, or seller of nonfinancial goods or
services shall be deemed to meet the relevant industry size threshold described
in clause (ii)(III) during the first year of operations of that business
concern if, during that year, the receipts of that business concern reasonably
are expected to meet that size threshold.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H503EC123D29B4308901C9C95CF0D4101"><enum>(iv)</enum><header display-inline="yes-display-inline">Other standards for small
business</header><text display-inline="yes-display-inline">With respect to a
merchant, retailer, or seller of nonfinancial goods or services that is a
classified on a basis other than annual receipts for the purposes of section 3
of the Small Business Act (15 U.S.C. 632) and the implementing rules
thereunder, such merchant, retailer, or seller shall be deemed to meet the
relevant industry size threshold described in clause (ii)(III) if such
merchant, retailer, or seller meets the relevant industry size threshold to be
a small business concern based on the number of employees, or other such
applicable measure, established under that Act.</text>
</clause></subparagraph><subparagraph id="HD4461EA5B64F48E281202333B03010AC"><enum>(E)</enum><header>Exception from
State enforcement</header><text>To the extent that the Bureau may not exercise
authority under this subsection with respect to a merchant, retailer, or seller
of nonfinancial goods or services, no action by a State attorney general or
State regulator with respect to a claim made under this title may be brought
under subsection 1042(a), with respect to an activity described in any of
clauses (i) through (iii) of subparagraph (A) by such merchant, retailer, or
seller of nonfinancial goods or services.</text>
</subparagraph></paragraph></subsection><subsection id="H7F4DFC9236704635B029F910CFD2FD56"><enum>(b)</enum><header>Exclusion for
real estate brokerage activities</header>
<paragraph id="H73A44865D06944E19959466B14680810"><enum>(1)</enum><header>Real estate
brokerage activities excluded</header><text>Without limiting subsection (a),
and except as permitted in paragraph (2), the Bureau may not exercise any
rulemaking, supervisory, enforcement, or other authority under this title with
respect to a person that is licensed or registered as a real estate broker or
real estate agent, in accordance with State law, to the extent that such
person—</text>
<subparagraph id="HF0F4971A228D4F71A8E7A6B8EA869068"><enum>(A)</enum><text>acts as a real
estate agent or broker for a buyer, seller, lessor, or lessee of real
property;</text>
</subparagraph><subparagraph id="HAE2D6312A8EA486DB81327F387C9B1E7"><enum>(B)</enum><text>brings together
parties interested in the sale, purchase, lease, rental, or exchange of real
property;</text>
</subparagraph><subparagraph id="H0DF60233E48E4EB8B89C671480AF9393"><enum>(C)</enum><text>negotiates, on
behalf of any party, any portion of a contract relating to the sale, purchase,
lease, rental, or exchange of real property (other than in connection with the
provision of financing with respect to any such transaction); or</text>
</subparagraph><subparagraph id="H188130DD0ED04C0694B465C3223AC16C"><enum>(D)</enum><text>offers to engage
in any activity, or act in any capacity, described in subparagraph (A), (B), or
(C).</text>
</subparagraph></paragraph><paragraph id="HDC93CB28934B46469DB50FAC370BBC17"><enum>(2)</enum><header>Description of
activities</header><text>The Bureau may exercise rulemaking, supervisory,
enforcement, or other authority under this title with respect to a person
described in paragraph (1) when such person is—</text>
<subparagraph id="H48A7764D0F554D0194E5CAACB979E969"><enum>(A)</enum><text>engaged in an
activity of offering or providing any consumer financial product or service,
except that the Bureau may exercise such authority only with respect to that
activity; or</text>
</subparagraph><subparagraph id="HBA4B23BFC8CA44CFA2BBC59AC8ED9E3E"><enum>(B)</enum><text>otherwise subject
to any enumerated consumer law or any law for which authorities are transferred
under subtitle F or H, but the Bureau may exercise such authority only with
respect to that law.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF9FE340DA1D44A4813D71C9D071E465"><enum>(c)</enum><header display-inline="yes-display-inline">Exclusion for manufactured home retailers
and modular home retailers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEDAF52651206436BB21972D30408D152"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Director may not exercise any
rulemaking, supervisory, enforcement, or other authority over a person to the
extent that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2E2B0BA67EA64271A4BB17DD55061F30"><enum>(A)</enum><text display-inline="yes-display-inline">such person is not described in paragraph
(2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB9F3874E93024693B8DBF9992AB29242"><enum>(B)</enum><text display-inline="yes-display-inline">such person—</text>
<clause commented="no" display-inline="no-display-inline" id="HBD472084BC0C4C9DA614FF588425F2AE"><enum>(i)</enum><text display-inline="yes-display-inline">acts as an agent or broker for a buyer or
seller of a manufactured home or a modular home;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H66104215F17840EDAF1F61478B098138"><enum>(ii)</enum><text display-inline="yes-display-inline">facilitates the purchase by a consumer of a
manufactured home or modular home, by negotiating the purchase price or terms
of the sales contract (other than providing financing with respect to such
transaction); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H907F39DAD2E147AF9A0C394230C8E861"><enum>(iii)</enum><text display-inline="yes-display-inline">offers to engage in any activity described
in clause (i) or (ii).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06AE383112564E41A20AEB7E1433B462"><enum>(2)</enum><header display-inline="yes-display-inline">Description of activities</header><text display-inline="yes-display-inline">A person is described in this paragraph to
the extent that such person is engaged in the offering or provision of any
consumer financial product or service or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41B709F9AFB44CAD87DFF26D782D653C"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H35259D6C306741B29A7CA0F2B531211A"><enum>(A)</enum><header display-inline="yes-display-inline">Manufactured home</header><text display-inline="yes-display-inline">The term <term>manufactured home</term> has
the same meaning as in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB0C978C9B5FC4586A2DF40B1A48D2248"><enum>(B)</enum><header display-inline="yes-display-inline">Modular home</header><text display-inline="yes-display-inline">The term <term>modular home</term> means a
house built in a factory in 2 or more modules that meet the State or local
building codes where the house will be located, and where such modules are
transported to the building site, installed on foundations, and
completed.</text>
</subparagraph></paragraph></subsection><subsection id="H24AE47AFD10F4422B03CBB1D4AB59ADD"><enum>(d)</enum><header>Exclusion for
accountants and tax preparers</header>
<paragraph id="H663FE8C09AEA4CD383A61703E4E3970B"><enum>(1)</enum><header>In
general</header><text>Except as permitted in paragraph (2), the Bureau may not
exercise any rulemaking, supervisory, enforcement, or other authority
over—</text>
<subparagraph id="HB55C56EBD8254F598262F0D8A9692934"><enum>(A)</enum><text>any person that is
a certified public accountant, permitted to practice as a certified public
accounting firm, or certified or licensed for such purpose by a State, or any
individual who is employed by or holds an ownership interest with respect to a
person described in this subparagraph, when such person is performing or
offering to perform—</text>
<clause id="HC55E6BD45FD6409B86CF026D3F36C99D"><enum>(i)</enum><text>customary and
usual accounting activities, including the provision of accounting, tax,
advisory, or other services that are subject to the regulatory authority of a
State board of accountancy or a Federal authority; or</text>
</clause><clause id="H2F6C622C9B7F4EE58D9341E7E2E9C56D"><enum>(ii)</enum><text>other services
that are incidental to such customary and usual accounting activities, to the
extent that such incidental services are not offered or provided—</text>
<subclause id="H31192681E11B48F7B4903B90E794971B"><enum>(I)</enum><text>by the person
separate and apart from such customary and usual accounting activities;
or</text>
</subclause><subclause id="H2F8EB6F63EB24D8A9C5E7FBCBE164329"><enum>(II)</enum><text>to consumers who
are not receiving such customary and usual accounting activities; or</text>
</subclause></clause></subparagraph><subparagraph id="H855CF7F83B0845B5A7808FDFCA2C547C"><enum>(B)</enum><text>any person, other
than a person described in subparagraph (A) that performs income tax
preparation activities for consumers.</text>
</subparagraph></paragraph><paragraph id="H946A78E8E4BD4C73A97B315E7EDF0248"><enum>(2)</enum><header>Description of
activities</header>
<subparagraph id="H09A8DD5ADCD54D99A05DA9D5A339CB59"><enum>(A)</enum><header>In
general</header><text>Paragraph (1) shall not apply to any person described in
paragraph (1)(A) or (1)(B) to the extent that such person is engaged in any
activity which is not a customary and usual accounting activity described in
paragraph (1)(A) or incidental thereto but which is the offering or provision
of any consumer financial product or service, except to the extent that a
person described in paragraph (1)(A) is engaged in an activity which is a
customary and usual accounting activity described in paragraph (1)(A), or
incidental thereto.</text>
</subparagraph><subparagraph id="H3C04607C0E0749FEA1715E72490FC15F"><enum>(B)</enum><header>Not a customary
and usual accounting activity</header><text>For purposes of this subsection,
extending or brokering credit is not a customary and usual accounting activity,
or incidental thereto.</text>
</subparagraph><subparagraph id="HF614F00E213A402FB66492E9D2F0D8D3"><enum>(C)</enum><header>Rule of
construction</header><text>For purposes of subparagraphs (A) and (B), a person
described in paragraph (1)(A) shall not be deemed to be extending credit, if
such person is only extending credit directly to a consumer, exclusively for
the purpose of enabling such consumer to purchase services described in clause
(i) or (ii) of paragraph (1)(A) directly from such person, and such credit
is—</text>
<clause id="H2F9AA76253E44C8895EF634C77A99324"><enum>(i)</enum><text>not
subject to a finance charge; and</text>
</clause><clause id="HC37D3EB8F12549DBB623FB2D4151B2E1"><enum>(ii)</enum><text>not
payable by written agreement in more than 4 installments.</text>
</clause></subparagraph><subparagraph id="H1B03112B24EE4E80828CCEDFECA858F0"><enum>(D)</enum><header>Other
limitations</header><text>Paragraph (1) does not apply to any person described
in paragraph (1)(A) or (1)(B) that is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</subparagraph></paragraph></subsection><subsection id="H967DB3DB739340139B788C8F8551262B"><enum>(e)</enum><header>Exclusion for
practice of law</header>
<paragraph id="HB71A4CDDB74B4506B4421DFF6741DDD7"><enum>(1)</enum><header> In
general</header><text display-inline="yes-display-inline">Except as provided
under paragraph (2), the Bureau may not exercise any supervisory or enforcement
authority with respect to an activity engaged in by an attorney as part of the
practice of law under the laws of a State in which the attorney is licensed to
practice law.</text>
</paragraph><paragraph id="H1822AAA833AD45148DDB5D41D33727AD"><enum>(2)</enum><header> Rule of
construction</header><text>Paragraph (1) shall not be construed so as to limit
the exercise by the Bureau of any supervisory, enforcement, or other authority
regarding the offering or provision of a consumer financial product or service
described in any subparagraph of section 1002(5)—</text>
<subparagraph id="HA648C9B6B8564FFFB972863C29759E9D"><enum>(A)</enum><text>that is not
offered or provided as part of, or incidental to, the practice of law,
occurring exclusively within the scope of the attorney-client relationship;
or</text>
</subparagraph><subparagraph id="H7AF32BB35AE34220B7C303CA90BC9BBD"><enum>(B)</enum><text>that is otherwise
offered or provided by the attorney in question with respect to any consumer
who is not receiving legal advice or services from the attorney in connection
with such financial product or service.</text>
</subparagraph></paragraph><paragraph id="H9D45779F567E4FAD8342BDD141D45C44"><enum>(3)</enum><header> Existing
authority</header><text display-inline="yes-display-inline">Paragraph (1) shall
not be construed so as to limit the authority of the Bureau with respect to any
attorney, to the extent that such attorney is otherwise subject to any of the
enumerated consumer laws or the authorities transferred under subtitle F or
H.</text>
</paragraph></subsection><subsection id="HB667B760E11B41D99B7AAC29E057C701"><enum>(f)</enum><header>Exclusion for
persons regulated by a State insurance regulator</header>
<paragraph id="H3D96AF50F1A843CC8EA5FB0CAA15E75C"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of any State insurance regulator
to adopt rules, initiate enforcement proceedings, or take any other action with
respect to a person regulated by a State insurance regulator. Except as
provided in paragraph (2), the Bureau shall have no authority to exercise any
power to enforce this title with respect to a person regulated by a State
insurance regulator.</text>
</paragraph><paragraph id="H045F6F0D45F1400AAD54CEDF87E86BFF"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) does not apply to any person described
in such paragraph to the extent that such person is engaged in the offering or
provision of any consumer financial product or service or is otherwise subject
to any enumerated consumer law or any law for which authorities are transferred
under subtitle F or H.</text>
</paragraph><paragraph id="HDD53157E60704EF5B0D7BF3466D08BCD"><enum>(3)</enum><header>State insurance
authority under Gramm-Leach-Bliley</header><text display-inline="yes-display-inline">Notwithstanding paragraph (2), the Bureau
shall not exercise any authorities that are granted a State insurance authority
under section 505(a)(6) of the Gramm-Leach-Bliley Act with respect to a person
regulated by a State insurance authority.</text>
</paragraph></subsection><subsection id="H80D84F5F864C491EA0FCD911EA8ADD92"><enum>(g)</enum><header>Exclusion for
employee benefit and compensation plans and certain other arrangements under
the Internal Revenue Code of 1986</header>
<paragraph id="H1E7D924B83764AB4A428D73DAC3FDB50"><enum>(1)</enum><header>Preservation of
authority of other agencies</header><text>No provision of this title shall be
construed as altering, amending, or affecting the authority of the Secretary of
the Treasury, the Secretary of Labor, or the Commissioner of Internal Revenue
to adopt regulations, initiate enforcement proceedings, or take any actions
with respect to any specified plan or arrangement.</text>
</paragraph><paragraph id="H61A7714C3AF34B18993C56B8A50280EA"><enum>(2)</enum><header>Activities not
constituting the offering or provision of any consumer financial product or
service</header><text>For purposes of this title, a person shall not be treated
as having engaged in the offering or provision of any consumer financial
product or service solely because such person is—</text>
<subparagraph id="HFC591E3480BF42229D419E3CA2505098"><enum>(A)</enum><text>a specified plan
or arrangement;</text>
</subparagraph><subparagraph id="HBBE5D2D6F0DF4966B1029500F8093B3F"><enum>(B)</enum><text>engaged in the
activity of establishing or maintaining, for the benefit of employees of such
person (or for members of an employee organization), any specified plan or
arrangement; or</text>
</subparagraph><subparagraph id="HD7E70519995F4518BA932C2304EA9FC9"><enum>(C)</enum><text>engaged in the
activity of establishing or maintaining a qualified tuition program under
section 529(b)(1) of the Internal Revenue Code of 1986 offered by a State or
other prepaid tuition program offered by a State.</text>
</subparagraph></paragraph><paragraph id="H5B219B310CF740D78EE4CD566BC66311"><enum>(3)</enum><header>Limitation on
bureau authority</header>
<subparagraph id="H08E38004E5D84DDD991EB8258037C03D"><enum>(A)</enum><header>In
general</header><text>Except as provided under subparagraphs (B) and (C), the
Bureau may not exercise any rulemaking or enforcement authority with respect to
products or services that relate to any specified plan or arrangement.</text>
</subparagraph><subparagraph id="HD19592D5D7654C3EBFCF058AED6B331E"><enum>(B)</enum><header>Bureau action
pursuant to agency request</header>
<clause id="H2F7047B26A5347968F37037D13E9F2D8"><enum>(i)</enum><header>Agency
request</header><text>The Secretary and the Secretary of Labor may jointly
issue a written request to the Bureau regarding implementation of appropriate
consumer protection standards under this title with respect to the provision of
services relating to any specified plan or arrangement.</text>
</clause><clause id="H08D44CCFE6AE47C895BA580B5E7D8BD7"><enum>(ii)</enum><header>Agency
response</header><text>In response to a request by the Bureau, the Secretary
and the Secretary of Labor shall jointly issue a written response, not later
than 90 days after receipt of such request, to grant or deny the request of the
Bureau regarding implementation of appropriate consumer protection standards
under this title with respect to the provision of services relating to any
specified plan or arrangement.</text>
</clause><clause id="H9EA643925948497DA33300CCF3AAE394"><enum>(iii)</enum><header>Scope of
bureau action</header><text>Subject to a request or response pursuant to clause
(i) or clause (ii) by the agencies made under this subparagraph, the Bureau may
exercise rulemaking authority, and may act to enforce a rule prescribed
pursuant to such request or response, in accordance with the provisions of this
title. A request or response made by the Secretary and the Secretary of Labor
under this subparagraph shall describe the basis for, and scope of, appropriate
consumer protection standards to be implemented under this title with respect
to the provision of services relating to any specified plan or
arrangement.</text>
</clause></subparagraph><subparagraph id="HDE928C14080C42969775CC23679B3835"><enum>(C)</enum><header>Description of
products or services</header><text>To the extent that a person engaged in
providing products or services relating to any specified plan or arrangement is
subject to any enumerated consumer law or any law for which authorities are
transferred under subtitle F or H, subparagraph (A) shall not apply with
respect to that law.</text>
</subparagraph></paragraph><paragraph id="H2E6D2F385D88454185132F9DC98A8B90"><enum>(4)</enum><header>Specified plan
or arrangement</header><text>For purposes of this subsection, the term
<quote>specified plan or arrangement</quote> means any plan, account, or
arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A,
529, or 530 of the Internal Revenue Code of 1986, or any employee benefit or
compensation plan or arrangement, including a plan that is subject to title I
of the Employee Retirement Income Security Act of 1974, or any prepaid tuition
program offered by a State.</text>
</paragraph></subsection><subsection id="HBAB5DACF70D44A72850898F8D7234BA6"><enum>(h)</enum><header>Persons
regulated by a State securities commission</header>
<paragraph id="HF1351EE497E54028B6A2270BBFF8F407"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of any securities commission (or
any agency or office performing like functions) of any State to adopt rules,
initiate enforcement proceedings, or take any other action with respect to a
person regulated by any securities commission (or any agency or office
performing like functions) of any State. Except as permitted in paragraph (2)
and subsection (f), the Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated by any securities
commission (or any agency or office performing like functions) of any State,
but only to the extent that the person acts in such regulated capacity.</text>
</paragraph><paragraph id="HBFB370E64E70406E89BB2AB74C81C4B6"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) shall not apply to any person to the
extent such person is engaged in the offering or provision of any consumer
financial product or service, or is otherwise subject to any enumerated
consumer law or any law for which authorities are transferred under subtitle F
or H.</text>
</paragraph></subsection><subsection id="H618643076C5B4646B7F8DE1C3E6AC3D3"><enum>(i)</enum><header>Exclusion for
persons regulated by the commission</header>
<paragraph id="HF355DC0531A44DC5A3588FC8DE2C4C0F"><enum>(1)</enum><header>In
general</header><text>No provision of this title may be construed as altering,
amending, or affecting the authority of the Commission to adopt rules, initiate
enforcement proceedings, or take any other action with respect to a person
regulated by the Commission. The Bureau shall have no authority to exercise any
power to enforce this title with respect to a person regulated by the
Commission.</text>
</paragraph><paragraph id="H67064EA094B0421685E5259EB8B205EF"><enum>(2)</enum><header>Consultation and
coordination</header><text>Notwithstanding paragraph (1), the Commission shall
consult and coordinate, where feasible, with the Bureau with respect to any
rule (including any advance notice of proposed rulemaking) regarding an
investment product or service that is the same type of product as, or that
competes directly with, a consumer financial product or service that is subject
to the jurisdiction of the Bureau under this title or under any other law. In
carrying out this paragraph, the agencies shall negotiate an agreement to
establish procedures for such coordination, including procedures for providing
advance notice to the Bureau when the Commission is initiating a
rulemaking.</text>
</paragraph></subsection><subsection id="HF5EDB1353A2B48EC829F4489359EDFB9"><enum>(j)</enum><header>Exclusion for
persons regulated by the commodity futures trading commission</header>
<paragraph id="H12D6126F34D340089696BFC531ACA0CF"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of the Commodity Futures Trading
Commission to adopt rules, initiate enforcement proceedings, or take any other
action with respect to a person regulated by the Commodity Futures Trading
Commission. The Bureau shall have no authority to exercise any power to enforce
this title with respect to a person regulated by the Commodity Futures Trading
Commission.</text>
</paragraph><paragraph id="H903CBEBFC11B406D81E14EFDC732F8B4"><enum>(2)</enum><header>Consultation and
coordination</header><text>Notwithstanding paragraph (1), the Commodity Futures
Trading Commission shall consult and coordinate with the Bureau with respect to
any rule (including any advance notice of proposed rulemaking) regarding a
product or service that is the same type of product as, or that competes
directly with, a consumer financial product or service that is subject to the
jurisdiction of the Bureau under this title or under any other law.</text>
</paragraph></subsection><subsection id="HAB84C7536C754E75BB28C4DAC2F69345"><enum>(k)</enum><header>Exclusion for
Persons regulated by the farm credit administration</header>
<paragraph id="H8940622D73FD405EB26826352A9510E4"><enum>(1)</enum><header>In
general</header><text>No provision of this title shall be construed as
altering, amending, or affecting the authority of the Farm Credit
Administration to adopt rules, initiate enforcement proceedings, or take any
other action with respect to a person regulated by the Farm Credit
Administration. The Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated by the Farm Credit
Administration.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5B4DA3658A14BBCAC55BC14C7E2B9CB"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <quote>person regulated by the Farm
Credit Administration</quote> means any Farm Credit System institution that is
chartered and subject to the provisions of the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.).</text>
</paragraph></subsection><subsection id="H878571666D34426BB3CE505E63BC1E6B"><enum>(l)</enum><header>Exclusion for
activities relating to charitable contributions</header>
<paragraph id="H380F225EAEA54CA0993A3379D7D184D6"><enum>(1)</enum><header>In
general</header><text>The Director and the Bureau may not exercise any
rulemaking, supervisory, enforcement, or other authority, including authority
to order penalties, over any activities related to the solicitation or making
of voluntary contributions to a tax-exempt organization as recognized by the
Internal Revenue Service, by any agent, volunteer, or representative of such
organizations to the extent the organization, agent, volunteer, or
representative thereof is soliciting or providing advice, information,
education, or instruction to any donor or potential donor relating to a
contribution to the organization.</text>
</paragraph><paragraph id="HB931D0FAC93C45BA9B470EB91823B939"><enum>(2)</enum><header>Limitation</header><text>The
exclusion in paragraph (1) does not apply to other activities not described in
paragraph (1) that are the offering or provision of any consumer financial
product or service, or are otherwise subject to any enumerated consumer law or
any law for which authorities are transferred under subtitle F or H.</text>
</paragraph></subsection><subsection id="H9A59F2F787634EC48CD483E9A5620225"><enum>(m)</enum><header>Insurance</header><text>The
Bureau may not define as a financial product or service, by regulation or
otherwise, engaging in the business of insurance.</text>
</subsection><subsection id="HE3E01520E6F04006AAC7D2A2936F76EF"><enum>(n)</enum><header>Limited
authority of the bureau</header><text>Notwithstanding subsections (a) through
(h) and (l), a person subject to or described in one or more of such
provisions—</text>
<paragraph commented="no" id="H4CF7AAE9B74B4519AFA12DAF3B4978C8"><enum>(1)</enum><text>may be a service
provider; and</text>
</paragraph><paragraph id="H38CB364DC343472F87B8CBC4DB862721"><enum>(2)</enum><text>may be subject to
requests from, or requirements imposed by, the Bureau regarding information in
order to carry out the responsibilities and functions of the Bureau and in
accordance with section 1022, 1052, or 1053.</text>
</paragraph></subsection><subsection id="H2F41AB939CC44DE0A7445008ED11F08B"><enum>(o)</enum><header>No authority To
impose usury limit</header><text>No provision of this title shall be construed
as conferring authority on the Bureau to establish a usury limit applicable to
an extension of credit offered or made by a covered person to a consumer,
unless explicitly authorized by law.</text>
</subsection><subsection id="H5A8A32140767448FB60A024E5C067286"><enum>(p)</enum><header>Attorney
general</header><text>No provision of this title, including section 1024(c)(1),
shall affect the authorities of the Attorney General under otherwise applicable
provisions of law.</text>
</subsection><subsection id="H7C0FDACE88C54ED2AF4ECC82445F6484"><enum>(q)</enum><header>Secretary of the
treasury</header><text>No provision of this title shall affect the authorities
of the Secretary, including with respect to prescribing rules, initiating
enforcement proceedings, or taking other actions with respect to a person that
performs income tax preparation activities for consumers.</text>
</subsection><subsection id="H5FCB9A05985044F7BBF66EAE3F915D32"><enum>(r)</enum><header>Deposit
insurance and share insurance</header><text>Nothing in this title shall affect
the authority of the Corporation under the Federal Deposit Insurance Act or the
National Credit Union Administration Board under the Federal Credit Union Act
as to matters related to deposit insurance and share insurance,
respectively.</text>
</subsection><subsection id="HC63DDB97B2174CED8241B67701000C10"><enum>(s)</enum><header>Fair housing
Act</header><text>No provision of this title shall be construed as affecting
any authority arising under the Fair Housing Act.</text>
</subsection></section><section id="HA91A01F9AC0840E38FF2385DFEC05959"><enum>1028.</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header>
<subsection id="HA23A7CB784AD4953821E998F05B219BE"><enum>(a)</enum><header>Study and
report</header><text>The Bureau shall conduct a study of, and shall provide a
report to Congress concerning, the use of agreements providing for arbitration
of any future dispute between covered persons and consumers in connection with
the offering or providing of consumer financial products or services.</text>
</subsection><subsection id="HD595CB264373459C81E1EA9C72321583"><enum>(b)</enum><header>Further
authority</header><text>The Bureau, by regulation, may prohibit or impose
conditions or limitations on the use of an agreement between a covered person
and a consumer for a consumer financial product or service providing for
arbitration of any future dispute between the parties, if the Bureau finds that
such a prohibition or imposition of conditions or limitations is in the public
interest and for the protection of consumers. The findings in such rule shall
be consistent with the study conducted under subsection (a).</text>
</subsection><subsection id="H365C4F22BE7A44A488ABD1D6059909E1"><enum>(c)</enum><header>Limitation</header><text>The
authority described in subsection (b) may not be construed to prohibit or
restrict a consumer from entering into a voluntary arbitration agreement with a
covered person after a dispute has arisen.</text>
</subsection><subsection id="HE137454BB3D6455F85C136A2EC4258CF"><enum>(d)</enum><header>Effective
date</header><text>Notwithstanding any other provision of law, any regulation
prescribed by the Bureau under subsection (b) shall apply, consistent with the
terms of the regulation, to any agreement between a consumer and a covered
person entered into after the end of the 180-day period beginning on the
effective date of the regulation, as established by the Bureau.</text>
</subsection></section><section id="H6E794085C3874517960B9995C2A30EBA"><enum>1029.</enum><header>Exclusion for
auto dealers</header>
<subsection id="H0A6AD8BDEB9E4149A0504D924BCD8944"><enum>(a)</enum><header>Sale, servicing,
and leasing of motor vehicles excluded</header><text>Except as permitted in
subsection (b), the Bureau may not exercise any rulemaking, supervisory,
enforcement or any other authority, including any authority to order
assessments, over a motor vehicle dealer that is predominantly engaged in the
sale and servicing of motor vehicles, the leasing and servicing of motor
vehicles, or both.</text>
</subsection><subsection id="HA1DF827DDFC646B68F867A928B97642A"><enum>(b)</enum><header>Certain
functions excepted</header><text>Subsection (a) shall not apply to any person,
to the extent that such person—</text>
<paragraph id="H30DB8327EE684E3192F8BC09755E2B1C"><enum>(1)</enum><text>provides consumers
with any services related to residential or commercial mortgages or
self-financing transactions involving real property;</text>
</paragraph><paragraph id="H466F3258B34D431EBE656F098B871B04"><enum>(2)</enum><text>operates a line of
business—</text>
<subparagraph id="H6551AD426C1945CAA2F3A8D9EF0AB954"><enum>(A)</enum><text>that involves the
extension of retail credit or retail leases involving motor vehicles;
and</text>
</subparagraph><subparagraph id="HF5DA7714CC1A4DB0B36D65CEF4713627"><enum>(B)</enum><text>in which—</text>
<clause id="H34B3846855A94291AAE60F97280FD1B2"><enum>(i)</enum><text>the
extension of retail credit or retail leases are provided directly to consumers;
and</text>
</clause><clause id="H552FC800DC7C46DDA5CA5C33F9460978"><enum>(ii)</enum><text>the
contract governing such extension of retail credit or retail leases is not
routinely assigned to an unaffiliated third party finance or leasing source;
or</text>
</clause></subparagraph></paragraph><paragraph id="H321B49B96D3F4CF7B0522D4B3BA3269C"><enum>(3)</enum><text>offers or provides
a consumer financial product or service not involving or related to the sale,
financing, leasing, rental, repair, refurbishment, maintenance, or other
servicing of motor vehicles, motor vehicle parts, or any related or ancillary
product or service.</text>
</paragraph></subsection><subsection id="H728E7E93EB034EB9969237AA6E1089B0"><enum>(c)</enum><header>Preservation of
authorities of other agencies</header><text>Except as provided in subsections
(b) and (d), nothing in this title, including subtitle F, shall be construed as
modifying, limiting, or superseding the operation of any provision of Federal
law, or otherwise affecting the authority of the Board of Governors, the
Federal Trade Commission, or any other Federal agency, with respect to a person
described in subsection (a).</text>
</subsection><subsection id="H7AB4E70F7AD04CDC85BE5D126A8C7EFC"><enum>(d)</enum><header>Federal Trade
Commission authority</header><text>Notwithstanding section 18 of the Federal
Trade Commission Act, the Federal Trade Commission is authorized to prescribe
rules under sections 5 and 18(a)(1)(B) of the Federal Trade Commission Act. in
accordance with section 553 of title 5, United States Code, with respect to a
person described in subsection (a).</text>
</subsection><subsection id="H110ACECF91A04DA685CAFC1C994C013F"><enum>(e)</enum><header>Coordination
with Office Of Service Member Affairs</header><text>The Board of Governors and
the Federal Trade Commission shall coordinate with the Office of Service Member
Affairs, to ensure that—</text>
<paragraph id="H21FE5109473B4F8D909456737EDECADA"><enum>(1)</enum><text>service members
and their families are educated and empowered to make better informed decisions
regarding consumer financial products and services offered by motor vehicle
dealers, with a focus on motor vehicle dealers in the proximity of military
installations; and</text>
</paragraph><paragraph id="H4B5A4970B4FF44629F5F4694B3D311DF"><enum>(2)</enum><text>complaints by
service members and their families concerning such motor vehicle dealers are
effectively monitored and responded to, and where appropriate, enforcement
action is pursued by the authorized agencies.</text>
</paragraph></subsection><subsection id="H33C40EFDB7964D96ABEEB3DFCB68198F"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H731B5C85A991447FBD49BE12EF22C10F"><enum>(1)</enum><header>Motor
vehicle</header><text>The term <term>motor vehicle</term> means—</text>
<subparagraph id="H53421C651E7E43EDAA74D0F560E742BF"><enum>(A)</enum><text>any self-propelled
vehicle designed for transporting persons or property on a street, highway, or
other road;</text>
</subparagraph><subparagraph id="H2578F3CE91E44F46A0E082A4DEFF125B"><enum>(B)</enum><text>recreational boats
and marine equipment;</text>
</subparagraph><subparagraph id="H1ECB0022590E477F8E8771DAF1CE0778"><enum>(C)</enum><text>motorcycles;</text>
</subparagraph><subparagraph id="H9D75312771814BFC93B844A24FEBF34E"><enum>(D)</enum><text>motor homes,
recreational vehicle trailers, and slide-in campers, as those terms are defined
in sections 571.3 and 575.103 (d) of title 49, Code of Federal Regulations, or
any successor thereto; and</text>
</subparagraph><subparagraph id="H0ED27E285F3740AAAEC5412AF2D1F0B7"><enum>(E)</enum><text>other vehicles
that are titled and sold through dealers.</text>
</subparagraph></paragraph><paragraph id="HCED3CEA5BA49457BA1A03803E192B814"><enum>(2)</enum><header>Motor vehicle
dealer</header><text>The term <term>motor vehicle dealer</term> means any
person or resident in the United States, or any territory of the United States,
who—</text>
<subparagraph id="H43A4430EF23A4888AE1DE1DA43084EB3"><enum>(A)</enum><text>is licensed by a
State, a territory of the United States, or the District of Columbia to engage
in the sale of motor vehicles; and</text>
</subparagraph><subparagraph id="H4F88C395DC7C44F8BD5D433A0F7220DC"><enum>(B)</enum><text>takes title to,
holds an ownership in, or takes physical custody of motor vehicles.</text>
</subparagraph></paragraph></subsection></section><section id="H0E58B2F583C14F118C4EA2D5CCC201B5"><enum>1029A.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date, except that sections 1022,
1024, and 1025(e) shall become effective on the date of enactment of this
Act.</text>
</section></subtitle><subtitle id="HD24A05EC79EC427F8196D6B6CEF07CD7"><enum>C</enum><header>Specific Bureau
Authorities</header>
<section id="H9A511B8C82664365AE6F6E059435EB04"><enum>1031.</enum><header>Prohibiting
unfair, deceptive, or abusive acts or practices</header>
<subsection id="HA1E96483B8A84BF993F2D43ED10F0FDB"><enum>(a)</enum><header>In
general</header><text>The Bureau may take any action authorized under subtitle
E to prevent a covered person or service provider from committing or engaging
in an unfair, deceptive, or abusive act or practice under Federal law in
connection with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial product or
service.</text>
</subsection><subsection id="HB22DDDB6F4464B9A883EB3481F9C5D5C"><enum>(b)</enum><header>Rulemaking</header><text>The
Bureau may prescribe rules applicable to a covered person or service provider
identifying as unlawful unfair, deceptive, or abusive acts or practices in
connection with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial product or service.
Rules under this section may include requirements for the purpose of preventing
such acts or practices.</text>
</subsection><subsection id="HBE03F39942D64540A002EE8A5EAFFC9D"><enum>(c)</enum><header>Unfairness</header>
<paragraph id="H43974C7BCDFD4FB2A08E5B550F1A2A77"><enum>(1)</enum><header>In
general</header><text>The Bureau shall have no authority under this section to
declare an act or practice in connection with a transaction with a consumer for
a consumer financial product or service, or the offering of a consumer
financial product or service, to be unlawful on the grounds that such act or
practice is unfair, unless the Bureau has a reasonable basis to conclude
that—</text>
<subparagraph id="H8EFAD85D391145FBB4F0478DBE8EA07F"><enum>(A)</enum><text>the act or
practice causes or is likely to cause substantial injury to consumers which is
not reasonably avoidable by consumers; and</text>
</subparagraph><subparagraph id="H948D97A5D0D24C0CA4F6ECAD1393EB1F"><enum>(B)</enum><text>such substantial
injury is not outweighed by countervailing benefits to consumers or to
competition.</text>
</subparagraph></paragraph><paragraph id="HB46AAB45DD104AF783AED2695B0A01A5"><enum>(2)</enum><header>Consideration of
public policies</header><text>In determining whether an act or practice is
unfair, the Bureau may consider established public policies as evidence to be
considered with all other evidence. Such public policy considerations may not
serve as a primary basis for such determination.</text>
</paragraph></subsection><subsection id="HE65A836C7BFF4AA98ACE7BF2CAD94F7F"><enum>(d)</enum><header>Abusive</header><text>The
Bureau shall have no authority under this section to declare an act or practice
abusive in connection with the provision of a consumer financial product or
service, unless the act or practice—</text>
<paragraph id="HD45D27B85F784CA0ACCCDA0469CDF190"><enum>(1)</enum><text>materially
interferes with the ability of a consumer to understand a term or condition of
a consumer financial product or service; or</text>
</paragraph><paragraph commented="no" id="HE5B68B574DE94EB28ECC711FE3799233"><enum>(2)</enum><text>takes unreasonable
advantage of—</text>
<subparagraph commented="no" id="H49B46E156BD444A5B594454F9C4A2E8C"><enum>(A)</enum><text>a lack of
understanding on the part of the consumer of the material risks, costs, or
conditions of the product or service;</text>
</subparagraph><subparagraph commented="no" id="H81ED58B6020747D6A2867D24EB5B738E"><enum>(B)</enum><text>the inability of
the consumer to protect the interests of the consumer in selecting or using a
consumer financial product or service; or</text>
</subparagraph><subparagraph commented="no" id="HEB870508A26B4DE5B2DA6B3F2872E3A6"><enum>(C)</enum><text>the reasonable
reliance by the consumer on a covered person to act in the interests of the
consumer.</text>
</subparagraph></paragraph></subsection><subsection id="H52AE35B3014E4B3DB742B125E14B582B"><enum>(e)</enum><header>Consultation</header><text>In
prescribing rules under this section, the Bureau shall consult with the Federal
banking agencies, or other Federal agencies, as appropriate, concerning the
consistency of the proposed rule with prudential, market, or systemic
objectives administered by such agencies.</text>
</subsection><subsection id="H8887931E91F8428C958DB4133CFF7F58"><enum>(f)</enum><header>Consideration of
seasonal income</header><text>The rules of the Bureau under this section shall
provide, with respect to an extension of credit secured by residential real
estate or a dwelling, if documented income of the borrower, including income
from a small business, is a repayment source for an extension of credit secured
by residential real estate or a dwelling, the creditor may consider the
seasonality and irregularity of such income in the underwriting of and
scheduling of payments for such credit.</text>
</subsection></section><section id="H68E4C360C741413DB95A49C3575C7128"><enum>1032.</enum><header>Disclosures</header>
<subsection id="H076110065B734A1190587BC2BBF27E44"><enum>(a)</enum><header>In
general</header><text>The Bureau may prescribe rules to ensure that the
features of any consumer financial product or service, both initially and over
the term of the product or service, are fully, accurately, and effectively
disclosed to consumers in a manner that permits consumers to understand the
costs, benefits, and risks associated with the product or service, in light of
the facts and circumstances.</text>
</subsection><subsection id="HF764BD7840FD4F14978FAFDE5FEC7E7D"><enum>(b)</enum><header>Model
disclosures</header>
<paragraph id="HA30B4F65BA3342289AB4AE118762BFCE"><enum>(1)</enum><header>In
general</header><text>Any final rule prescribed by the Bureau under this
section requiring disclosures may include a model form that may be used at the
option of the covered person for provision of the required disclosures.</text>
</paragraph><paragraph id="H39C174E7BDDB4DFBB643CF633C0D8F77"><enum>(2)</enum><header>Format</header><text>A
model form issued pursuant to paragraph (1) shall contain a clear and
conspicuous disclosure that, at a minimum—</text>
<subparagraph id="HAB11DFCDA23B4C1580DF52241BAB4147"><enum>(A)</enum><text>uses plain
language comprehensible to consumers;</text>
</subparagraph><subparagraph id="H6C113E757E574C90A98835A009433243"><enum>(B)</enum><text>contains a clear
format and design, such as an easily readable type font; and</text>
</subparagraph><subparagraph id="H4CFC99507AB64FAAA28EC6628AF76EED"><enum>(C)</enum><text>succinctly
explains the information that must be communicated to the consumer.</text>
</subparagraph></paragraph><paragraph id="H061ACDDA56534D7196B7D40EFE5E2B0E"><enum>(3)</enum><header>Consumer
testing</header><text>Any model form issued pursuant to this subsection shall
be validated through consumer testing.</text>
</paragraph></subsection><subsection id="HAB76346D2C724D559F58230B8EAEF514"><enum>(c)</enum><header>Basis for
rulemaking</header><text>In prescribing rules under this section, the Bureau
shall consider available evidence about consumer awareness, understanding of,
and responses to disclosures or communications about the risks, costs, and
benefits of consumer financial products or services.</text>
</subsection><subsection id="H7D29F18CF69E440E8A921AAF84BCE6D5"><enum>(d)</enum><header>Safe
harbor</header><text>Any covered person that uses a model form included with a
rule issued under this section shall be deemed to be in compliance with the
disclosure requirements of this section with respect to such model form.</text>
</subsection><subsection id="H689578A121C948B384500D7CD8DA3CAE"><enum>(e)</enum><header>Trial disclosure
programs</header>
<paragraph id="H6731F6BB590F4DC093D73F29AF79D661"><enum>(1)</enum><header>In
general</header><text>The Bureau may permit a covered person to conduct a trial
program that is limited in time and scope, subject to specified standards and
procedures, for the purpose of providing trial disclosures to consumers that
are designed to improve upon any model form issued pursuant to subsection
(b)(1), or any other model form issued to implement an enumerated statute, as
applicable.</text>
</paragraph><paragraph id="H9D091056F342483AB767900E6EA09CAD"><enum>(2)</enum><header>Safe
harbor</header><text>The standards and procedures issued by the Bureau shall be
designed to encourage covered persons to conduct trial disclosure programs. For
the purposes of administering this subsection, the Bureau may establish a
limited period during which a covered person conducting a trial disclosure
program shall be deemed to be in compliance with, or may be exempted from, a
requirement of a rule or an enumerated consumer law.</text>
</paragraph><paragraph id="H47BC5E2438DF4E30A92CF462F32FE7BB"><enum>(3)</enum><header>Public
disclosure</header><text>The rules of the Bureau shall provide for public
disclosure of trial disclosure programs, which public disclosure may be
limited, to the extent necessary to encourage covered persons to conduct
effective trials.</text>
</paragraph></subsection><subsection id="HF261309F252542669614E95C6C3E38DD"><enum>(f)</enum><header>Combined
mortgage loan disclosure</header><text>Not later than 1 year after the
designated transfer date, the Bureau shall propose for public comment rules and
model disclosures that combine the disclosures required under the Truth in
Lending Act and sections 4 and 5 of the Real Estate Settlement Procedures Act
of 1974, into a single, integrated disclosure for mortgage loan transactions
covered by those laws, unless the Bureau determines that any proposal issued by
the Board of Governors and the Secretary of Housing and Urban Development
carries out the same purpose.</text>
</subsection></section><section id="H5003C7E8716F46EBA98F9F8AC7DD9B71"><enum>1033.</enum><header>Consumer
rights to access information</header>
<subsection id="H806615EDC48A478CAF0B4CB82FC52A8F"><enum>(a)</enum><header>In
general</header><text>Subject to rules prescribed by the Bureau, a covered
person shall make available to a consumer, upon request, information in the
control or possession of the covered person concerning the consumer financial
product or service that the consumer obtained from such covered person,
including information relating to any transaction, series of transactions, or
to the account including costs, charges and usage data. The information shall
be made available in an electronic form usable by consumers.</text>
</subsection><subsection id="H9206E2CF792F4C45BF3F7A5540B72EF9"><enum>(b)</enum><header>Exceptions</header><text>A
covered person may not be required by this section to make available to the
consumer—</text>
<paragraph id="H18E6E66F4E5243EFB981B844A6515724"><enum>(1)</enum><text>any confidential
commercial information, including an algorithm used to derive credit scores or
other risk scores or predictors;</text>
</paragraph><paragraph id="H7A827B4130AC41198D38C2E3AC4AD15B"><enum>(2)</enum><text>any information
collected by the covered person for the purpose of preventing fraud or money
laundering, or detecting, or making any report regarding other unlawful or
potentially unlawful conduct;</text>
</paragraph><paragraph id="H97C9665DE66B45EBB4282F5D227E307C"><enum>(3)</enum><text>any information
required to be kept confidential by any other provision of law; or</text>
</paragraph><paragraph id="H035717302F0E440A82FA3609E2487C56"><enum>(4)</enum><text>any information
that the covered person cannot retrieve in the ordinary course of its business
with respect to that information.</text>
</paragraph></subsection><subsection id="H550DF652268F45A29FECE56593865FB3"><enum>(c)</enum><header>No duty To
maintain records</header><text>Nothing in this section shall be construed to
impose any duty on a covered person to maintain or keep any information about a
consumer.</text>
</subsection><subsection id="H07B06495F3BE4C849F2A96C75302C074"><enum>(d)</enum><header>Standardized
formats for data</header><text>The Bureau, by rule, shall prescribe standards
applicable to covered persons to promote the development and use of
standardized formats for information, including through the use of machine
readable files, to be made available to consumers under this section.</text>
</subsection><subsection id="H2288F10A1AE949E0A0726FE4F887244C"><enum>(e)</enum><header>Consultation</header><text>The
Bureau shall, when prescribing any rule under this section, consult with the
Federal banking agencies and the Federal Trade Commission to ensure, to the
extent appropriate, that the rules—</text>
<paragraph id="H306872C563E2433787F655E9B8C4EC46"><enum>(1)</enum><text>impose
substantively similar requirements on covered persons;</text>
</paragraph><paragraph id="H755598AD95674EAF823B47A34EFB68AF"><enum>(2)</enum><text>take into account
conditions under which covered persons do business both in the United States
and in other countries; and</text>
</paragraph><paragraph id="HDE547E6F2F2848FE95779C4964D0D2CD"><enum>(3)</enum><text>do not require or
promote the use of any particular technology in order to develop systems for
compliance.</text>
</paragraph></subsection></section><section id="H5A0A38A28AD4455D8E8F5F135D3AEDB5"><enum>1034.</enum><header>Response to
consumer complaints and inquiries</header>
<subsection id="HF5809D28EB444683B0751CD50C1F2618"><enum>(a)</enum><header>Timely regulator
response to consumers</header><text>The Bureau shall establish, in consultation
with the appropriate Federal regulatory agencies, reasonable procedures to
provide a timely response to consumers, in writing where appropriate, to
complaints against, or inquiries concerning, a covered person,
including—</text>
<paragraph id="H246C0F78E3A74D6CA4C0325E6DECC643"><enum>(1)</enum><text>steps that have
been taken by the regulator in response to the complaint or inquiry of the
consumer;</text>
</paragraph><paragraph id="H29C529F4D4694C97B3EB689BD18E456D"><enum>(2)</enum><text>any responses
received by the regulator from the covered person; and</text>
</paragraph><paragraph id="HD143CAD033B84CBFBF3E894F18D807AB"><enum>(3)</enum><text>any follow-up
actions or planned follow-up actions by the regulator in response to the
complaint or inquiry of the consumer.</text>
</paragraph></subsection><subsection id="H4F6A42B0D5EC429D99F7E64CF8CC3A1C"><enum>(b)</enum><header>Timely response
to regulator by covered person</header><text>A covered person subject to
supervision and primary enforcement by the Bureau pursuant to section 1025
shall provide a timely response, in writing where appropriate, to the Bureau,
the prudential regulators, and any other agency having jurisdiction over such
covered person concerning a consumer complaint or inquiry, including—</text>
<paragraph id="HE8F38C22A01144C89E61C1DDE5AA40F5"><enum>(1)</enum><text>steps that have
been taken by the covered person to respond to the complaint or inquiry of the
consumer;</text>
</paragraph><paragraph id="H84B86249E5FC4371B29816A8D36BF5E8"><enum>(2)</enum><text>responses received
by the covered person from the consumer; and</text>
</paragraph><paragraph id="HA5862C5D7AF94B6EAFB98B5C136E87DF"><enum>(3)</enum><text>follow-up actions
or planned follow-up actions by the covered person to respond to the complaint
or inquiry of the consumer.</text>
</paragraph></subsection><subsection id="H9C8063177C10410AB4A32E86F305597D"><enum>(c)</enum><header>Provision of
information to consumers</header>
<paragraph id="H56DEE9E3AF234D9AB1C1087B287193C5"><enum>(1)</enum><header>In
general</header><text>A covered person subject to supervision and primary
enforcement by the Bureau pursuant to section 1025 shall, in a timely manner,
comply with a consumer request for information in the control or possession of
such covered person concerning the consumer financial product or service that
the consumer obtained from such covered person, including supporting written
documentation, concerning the account of the consumer.</text>
</paragraph><paragraph id="H52AEFA0F43194B5EB1E781BE8A177F2C"><enum>(2)</enum><header>Exceptions</header><text>A
covered person subject to supervision and primary enforcement by the Bureau
pursuant to section 1025, a prudential regulator, and any other agency having
jurisdiction over a covered person subject to supervision and primary
enforcement by the Bureau pursuant to section 1025 may not be required by this
section to make available to the consumer—</text>
<subparagraph id="HCF2462085A1A48DEB7EF94531225D1AE"><enum>(A)</enum><text>any confidential
commercial information, including an algorithm used to derive credit scores or
other risk scores or predictors;</text>
</subparagraph><subparagraph id="H3BFC5EFC7B55416592089ABDA2E44659"><enum>(B)</enum><text>any information
collected by the covered person for the purpose of preventing fraud or money
laundering, or detecting or making any report regarding other unlawful or
potentially unlawful conduct;</text>
</subparagraph><subparagraph id="HB7327D99F7A74B7A8363B4CE21145945"><enum>(C)</enum><text>any information
required to be kept confidential by any other provision of law; or</text>
</subparagraph><subparagraph id="H7682825A41744B79A04F68AA30779923"><enum>(D)</enum><text>any nonpublic or
confidential information, including confidential supervisory
information.</text>
</subparagraph></paragraph></subsection><subsection id="HAD89BA25B133407ABC75FFA71FFFDA2F"><enum>(d)</enum><header>Agreements with
other agencies</header><text>The Bureau shall enter into a memorandum of
understanding with any affected Federal regulatory agency regarding procedures
by which any covered person, and the prudential regulators, and any other
agency having jurisdiction over a covered person, including the Secretary of
the Department of Housing and Urban Development and the Secretary of Education,
shall comply with this section.</text>
</subsection></section><section id="HC39E30B5D9414EEE92CCAB74B9B32013"><enum>1035.</enum><header>Private
education loan ombudsman</header>
<subsection id="H48185B0A86F14871A4A78EC716ADBA32"><enum>(a)</enum><header>Establishment</header><text>The
Secretary, in consultation with the Director, shall designate a Private
Education Loan Ombudsman (in this section referred to as the
<quote>Ombudsman</quote>) within the Bureau, to provide timely assistance to
borrowers of private education loans.</text>
</subsection><subsection id="H98B18CE944E340BD871B9D70080D2C35"><enum>(b)</enum><header>Public
information</header><text>The Secretary and 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.</text>
</subsection><subsection id="HB638E64AE8DD405D813092519556420F"><enum>(c)</enum><header>Functions of
ombudsman</header><text>The Ombudsman designated under this subsection
shall—</text>
<paragraph id="HE8ECD7774F044F4E87659FECE7A69273"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HA59EB1BA30DD427BA68ABA642DCE9F9C"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="HA9F469AD97074E84B66C29CBBEEAD819"><enum>(3)</enum><text>compile and
analyze data on borrower complaints regarding private education loans;
and</text>
</paragraph><paragraph id="HEA1053D99AF045C7A981E506D9136006"><enum>(4)</enum><text>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.</text>
</paragraph></subsection><subsection id="H57447ABE08194F478C11D71C652A87B8"><enum>(d)</enum><header>Annual
reports</header>
<paragraph id="HE92DD79DF86F4D06B9A38E3DD5D7F8ED"><enum>(1)</enum><header>In
general</header><text>The Ombudsman shall prepare an annual report that
describes the activities, and evaluates the effectiveness of the Ombudsman
during the preceding year.</text>
</paragraph><paragraph id="HF476B186711A45959E2FED7BEB41F30B"><enum>(2)</enum><header>Submission</header><text>The
report required by paragraph (1) shall be submitted on the same date annually
to 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.</text>
</paragraph></subsection><subsection id="HED3F33F9EE084D3EB663F685BBA31700"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section, the terms <quote>private education loan</quote> and
<quote>institution of higher education</quote> have the same meanings as in
section 140 of the Truth in Lending Act (15 U.S.C. 1650).</text>
</subsection></section><section id="H9F327A5E783C41C0A061172FA0A6CA93"><enum>1036.</enum><header>Prohibited
acts</header>
<subsection id="HD72F40F29A514061BE13BF313C09F5CF"><enum>(a)</enum><header>In
general</header><text>It shall be unlawful for—</text>
<paragraph id="H114420D1E4054B5493989A985BD3B262"><enum>(1)</enum><text>any covered person
or service provider—</text>
<subparagraph id="HDFCE34DE93BA4E1D8B42DFA76363B745"><enum>(A)</enum><text>to offer or
provide to a consumer any financial product or service not in conformity with
Federal consumer financial law, or otherwise commit any act or omission in
violation of a Federal consumer financial law; or</text>
</subparagraph><subparagraph id="H6949634BACD449498F8475364B983D87"><enum>(B)</enum><text>to engage in any
unfair, deceptive, or abusive act or practice;</text>
</subparagraph></paragraph><paragraph id="H0704B26A97D14835B2CF34A317378EC1"><enum>(2)</enum><text>any covered person
or service provider to fail or refuse, as required by Federal consumer
financial law, or any rule or order issued by the Bureau thereunder—</text>
<subparagraph id="H5402F25A11B44BB1AA6105DBD9FEFD89"><enum>(A)</enum><text>to permit access
to or copying of records;</text>
</subparagraph><subparagraph id="H06B278E876514895920A850D29676002"><enum>(B)</enum><text>to establish or
maintain records; or</text>
</subparagraph><subparagraph id="HC78D53A48AF74120AD914794F37DEF8B"><enum>(C)</enum><text>to make reports or
provide information to the Bureau; or</text>
</subparagraph></paragraph><paragraph id="HB0C09ADCC3CE46259ABB26B1F9E7D402"><enum>(3)</enum><text>any person to
knowingly or recklessly provide substantial assistance to a covered person or
service provider in violation of the provisions of section 1031, or any rule or
order issued thereunder, and notwithstanding any provision of this title, the
provider of such substantial assistance shall be deemed to be in violation of
that section to the same extent as the person to whom such assistance is
provided.</text>
</paragraph></subsection><subsection id="HB9D0577382774BBFB6F8395CD43F90A5"><enum>(b)</enum><header>Exception</header><text>No
person shall be held to have violated subsection (a)(1) solely by virtue of
providing or selling time or space to a covered person or service provider
placing an advertisement.</text>
</subsection></section><section id="H315CCA97495B4FE5BF78A337C2334C3A"><enum>1037.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section></subtitle><subtitle id="H181EA5FF1A684B8288DA0BB294019CF3"><enum>D</enum><header>Preservation of
State law</header>
<section id="HF85F9105849A491BA0E209408A07CB9A"><enum>1041.</enum><header>Relation to
State law</header>
<subsection id="H7EC7AFCB861B482D98E4BFE051D8EF32"><enum>(a)</enum><header>In
general</header>
<paragraph id="HB67312C9BF6C4A97A4D8CE6BDC05356D"><enum>(1)</enum><header>Rule of
construction</header><text>This title, other than sections 1044 through 1048,
may not be construed as annulling, altering, or affecting, or exempting any
person subject to the provisions of this title from complying with, the
statutes, regulations, orders, or interpretations in effect in any State,
except to the extent that any such provision of law is inconsistent with the
provisions of this title, and then only to the extent of the
inconsistency.</text>
</paragraph><paragraph id="HB252E2007BCE4997B4766D020DAD4998"><enum>(2)</enum><header>Greater
protection under State law</header><text>For purposes of this subsection, a
statute, regulation, order, or interpretation in effect in any State is not
inconsistent with the provisions of this title if the protection that such
statute, regulation, order, or interpretation affords to consumers is greater
than the protection provided under this title. A determination regarding
whether a statute, regulation, order, or interpretation in effect in any State
is inconsistent with the provisions of this title may be made by the Bureau on
its own motion or in response to a nonfrivolous petition initiated by any
interested person.</text>
</paragraph></subsection><subsection id="H8E5A7A8FAF2E4A01A96105E24C2B561B"><enum>(b)</enum><header>Relation to
other provisions of enumerated consumer laws that relate to State
law</header><text>No provision of this title, except as provided in section
1083, shall be construed as modifying, limiting, or superseding the operation
of any provision of an enumerated consumer law that relates to the application
of a law in effect in any State with respect to such Federal law.</text>
</subsection><subsection id="H819AEDCC117745908421E69E9ED86A27"><enum>(c)</enum><header>Additional
consumer protection regulations in response to State action</header>
<paragraph id="H78A583C857764A1E94E103A47C550994"><enum>(1)</enum><header>Notice of
proposed rule required</header><text>The Bureau shall issue a notice of
proposed rulemaking whenever a majority of the States has enacted a resolution
in support of the establishment or modification of a consumer protection
regulation by the Bureau.</text>
</paragraph><paragraph id="HF9E2E5DA8CA54DB28BDA564C7E83A54C"><enum>(2)</enum><header>Bureau
considerations required for issuance of final regulation</header><text>Before
prescribing a final regulation based upon a notice issued pursuant to paragraph
(1), the Bureau shall take into account whether—</text>
<subparagraph id="H5E86F7311ED0420CB5E9C17D64F28CFB"><enum>(A)</enum><text>the proposed
regulation would afford greater protection to consumers than any existing
regulation;</text>
</subparagraph><subparagraph id="H7195CE357F1945BEA76BC3DD17881405"><enum>(B)</enum><text>the intended
benefits of the proposed regulation for consumers would outweigh any increased
costs or inconveniences for consumers, and would not discriminate unfairly
against any category or class of consumers; and</text>
</subparagraph><subparagraph id="H633C2A2BC1694F7E8BBB93638C58B485"><enum>(C)</enum><text>a Federal banking
agency has advised that the proposed regulation is likely to present an
unacceptable safety and soundness risk to insured depository
institutions.</text>
</subparagraph></paragraph><paragraph id="H8F0E116C69E342FAA7F01A32E5FD4EAD"><enum>(3)</enum><header>Explanation of
considerations</header><text>The Bureau—</text>
<subparagraph id="H27585785699F4E1594C0BA900A5D076F"><enum>(A)</enum><text>shall include a
discussion of the considerations required in paragraph (2) in the Federal
Register notice of a final regulation prescribed pursuant to this subsection;
and</text>
</subparagraph><subparagraph id="H62FD0582AA26472CAEA7A4A83E95C198"><enum>(B)</enum><text>whenever the
Bureau determines not to prescribe a final regulation, shall publish an
explanation of such determination in the Federal Register, and provide a copy
of such explanation to each State that enacted a resolution in support of the
proposed regulation, the Committee on Banking, Housing, and Urban Affairs of
the Senate, and the Committee on Financial Services of the House of
Representatives.</text>
</subparagraph></paragraph><paragraph id="H0E1FB83B341145CD94691F105168972B"><enum>(4)</enum><header>Reservation of
authority</header><text>No provision of this subsection shall be construed as
limiting or restricting the authority of the Bureau to enhance consumer
protection standards established pursuant to this title in response to its own
motion or in response to a request by any other interested person.</text>
</paragraph><paragraph id="H68E1257A30404F77B42A4E710116403D"><enum>(5)</enum><header>Rule of
construction</header><text>No provision of this subsection shall be construed
as exempting the Bureau from complying with subchapter II of chapter 5 of title
5, United States Code.</text>
</paragraph><paragraph id="HE9A28B8192704056B278FFEC96A33495"><enum>(6)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>consumer protection
regulation</term> means a regulation that the Bureau is authorized to prescribe
under the Federal consumer financial laws.</text>
</paragraph></subsection></section><section id="H8C9834B159834EAAB7CB0B882CB1FD5F"><enum>1042.</enum><header>Preservation
of enforcement powers of States</header>
<subsection id="H9568CE5AC1744F91ADA8C340CA6FCEFE"><enum>(a)</enum><header>In
general</header>
<paragraph id="H697BEE3410E74D9B9CBB83243F9F920B"><enum>(1)</enum><header>Action by
State</header><text>Except as provided in paragraph (2), the attorney general
(or the equivalent thereof) of any State may bring a civil action in the name
of such State in any district court of the United States in that State or in
State court that is located in that State and that has jurisdiction over the
defendant, to enforce provisions of this title or regulations issued under this
title, and to secure remedies under provisions of this title or remedies
otherwise provided under other law. A State regulator may bring a civil action
or other appropriate proceeding to enforce the provisions of this title or
regulations issued under this title with respect to any entity that is
State-chartered, incorporated, licensed, or otherwise authorized to do business
under State law (except as provided in paragraph (2)), and to secure remedies
under provisions of this title or remedies otherwise provided under other
provisions of law with respect to such an entity.</text>
</paragraph><paragraph id="H474132595D7B4B988DFE6995EDF73F53"><enum>(2)</enum><header>Action by State
against national bank or Federal savings association to enforce rules</header>
<subparagraph id="H0DEF7FF3E6444AFD84B5DC958D5DB917"><enum>(A)</enum><header>In
general</header><text>Except as permitted under subparagraph (B), the attorney
general (or equivalent thereof) of any State may not bring a civil action in
the name of such State against a national bank or Federal savings association
to enforce a provision of this title.</text>
</subparagraph><subparagraph id="H0D3525474DCE4C6FB05365D0F76E3FC2"><enum>(B)</enum><header>Enforcement of
rules permitted</header><text>The attorney general (or the equivalent thereof)
of any State may bring a civil action in the name of such State against a
national bank or Federal savings association in any district court of the
United States in the State or in State court that is located in that State and
that has jurisdiction over the defendant to enforce a regulation prescribed by
the Bureau under a provision of this title and to secure remedies under
provisions of this title or remedies otherwise provided under other law.</text>
</subparagraph></paragraph><paragraph id="H2D97D77D15CD4882AB30ED9F2CACAE88"><enum>(3)</enum><header>Rule of
construction</header><text>No provision of this title shall be construed as
modifying, limiting, or superseding the operation of any provision of an
enumerated consumer law that relates to the authority of a State attorney
general or State regulator to enforce such Federal law.</text>
</paragraph></subsection><subsection id="H1982E6758D0B4E88B88AD8015772513F"><enum>(b)</enum><header>Consultation
required</header>
<paragraph id="HCCED1B6CFDD446DBA087E8E0D899434F"><enum>(1)</enum><header>Notice</header>
<subparagraph id="H76A33D18386B493BB689C3B088540165"><enum>(A)</enum><header>In
general</header><text>Before initiating any action in a court or other
administrative or regulatory proceeding against any covered person as
authorized by subsection (a) to enforce any provision of this title, including
any regulation prescribed by the Bureau under this title, a State attorney
general or State regulator shall timely provide a copy of the complete
complaint to be filed and written notice describing such action or proceeding
to the Bureau and the prudential regulator, if any, or the designee
thereof.</text>
</subparagraph><subparagraph id="H247BB7D66EAF4B8F8F7EEA5DD04E7D84"><enum>(B)</enum><header>Emergency
action</header><text>If prior notice is not practicable, the State attorney
general or State regulator shall provide a copy of the complete complaint and
the notice to the Bureau and the prudential regulator, if any, immediately upon
instituting the action or proceeding.</text>
</subparagraph><subparagraph id="H4F93C6ACBE304ECC80CC5E68CAD66821"><enum>(C)</enum><header>Contents of
notice</header><text>The notification required under this paragraph shall, at a
minimum, describe—</text>
<clause id="HD586B3ED62544883BC2C8C1F064703D3"><enum>(i)</enum><text>the
identity of the parties;</text>
</clause><clause id="H60AA22C77822444F8F22B1991BC10094"><enum>(ii)</enum><text>the
alleged facts underlying the proceeding; and</text>
</clause><clause id="H5C24E2129F1B446C82DD9C5AE1CFED77"><enum>(iii)</enum><text>whether there
may be a need to coordinate the prosecution of the proceeding so as not to
interfere with any action, including any rulemaking, undertaken by the Bureau,
a prudential regulator, or another Federal agency.</text>
</clause></subparagraph></paragraph><paragraph id="H7F621C30EF2C4F29A5411F4B7CA83665"><enum>(2)</enum><header>Bureau
response</header><text>In any action described in paragraph (1), the Bureau
may—</text>
<subparagraph id="H6098517E0CB04AE1B79727BABB0D7D88"><enum>(A)</enum><text>intervene in the
action as a party;</text>
</subparagraph><subparagraph id="HDD461D31EE834FF181C6E42FA8A44D30"><enum>(B)</enum><text>upon
intervening—</text>
<clause id="HAA97466FC62749CA9B7375613CBAB42A"><enum>(i)</enum><text>remove the action
to the appropriate United States district court, if the action was not
originally brought there; and</text>
</clause><clause id="H14D6540692474FBDA67C8AC13D5AC27E"><enum>(ii)</enum><text>be
heard on all matters arising in the action; and</text>
</clause></subparagraph><subparagraph id="HA193472812194876B5AD706AA3AE398A"><enum>(C)</enum><text>appeal any order
or judgment, to the same extent as any other party in the proceeding
may.</text>
</subparagraph></paragraph></subsection><subsection id="H6F6C49729FFD435A935FE38EB0CC59C0"><enum>(c)</enum><header>Regulations</header><text>The
Bureau shall prescribe regulations to implement the requirements of this
section and, from time to time, provide guidance in order to further coordinate
actions with the State attorneys general and other regulators.</text>
</subsection><subsection id="HA0F138C61A4F43109F031D787902FDAB"><enum>(d)</enum><header>Preservation of
State authority</header>
<paragraph id="H13857BA13CB64D9F82F799ADECEB6795"><enum>(1)</enum><header>State
claims</header><text>No provision of this section shall be construed as
altering, limiting, or affecting the authority of a State attorney general or
any other regulatory or enforcement agency or authority to bring an action or
other regulatory proceeding arising solely under the law in effect in that
State.</text>
</paragraph><paragraph id="H42F0D48EB71E4DECA0AB61A0A4D215B9"><enum>(2)</enum><header>State securities
regulators</header><text>No provision of this title shall be construed as
altering, limiting, or affecting the authority of a State securities commission
(or any agency or office performing like functions) under State law to adopt
rules, initiate enforcement proceedings, or take any other action with respect
to a person regulated by such commission or authority.</text>
</paragraph><paragraph id="H77E96EF67DA744EC848B8890FA00766A"><enum>(3)</enum><header>State insurance
regulators</header><text>No provision of this title shall be construed as
altering, limiting, or affecting the authority of a State insurance commission
or State insurance regulator under State law to adopt rules, initiate
enforcement proceedings, or take any other action with respect to a person
regulated by such commission or regulator.</text>
</paragraph></subsection></section><section commented="no" id="HA76F70ED257D4BC08FFBB816E7D6DD41"><enum>1043.</enum><header>Preservation
of existing contracts</header><text display-inline="no-display-inline">This
title, and regulations, orders, guidance, and interpretations prescribed,
issued, or established by the Bureau, shall not be construed to alter or affect
the applicability of any regulation, order, guidance, or interpretation
prescribed, issued, and established by the Comptroller of the Currency or the
Director of the Office of Thrift Supervision regarding the applicability of
State law under Federal banking law to any contract entered into on or before
the date of enactment of this Act, by national banks, Federal savings
associations, or subsidiaries thereof that are regulated and supervised by the
Comptroller of the Currency or the Director of the Office of Thrift
Supervision, respectively.</text>
</section><section id="HDB43B5DC09E241ACA6A3B7BD2023D466"><enum>1044.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="HB11CBD50ADA447A2BD1A6E703D94654B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter one of title
LXII of the Revised Statutes of the United States (12 U.S.C. 21 et seq.) is
amended by inserting after section 5136B the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC86B053EEA184C9E999C6C32853B169A" style="OLC">
<section id="HC769A1B9557C48D09A4E5960A22609A0"><enum>5136C.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="H21C16AC7A25C45DAA6D5E4139068F6A6"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph id="H7F999670FE454E67887B1FC575F36359"><enum>(1)</enum><header>National
bank</header><text>The term <term>national bank</term> includes—</text>
<subparagraph id="H91113A09BF0A41C6B3536FBB070BE562"><enum>(A)</enum><text>any bank organized
under the laws of the United States; and</text>
</subparagraph><subparagraph id="H22B4475DAF6045099D0053C2CE745613"><enum>(B)</enum><text>any Federal branch
established in accordance with the International Banking Act of 1978.</text>
</subparagraph></paragraph><paragraph id="HF1CEE70DF23442DE9E6C2E1C5E64374E"><enum>(2)</enum><header>State consumer
financial laws</header><text>The term <term>State consumer financial law</term>
means a State law that does not directly or indirectly discriminate against
national banks and that directly and specifically regulates the manner,
content, or terms and conditions of any financial transaction (as may be
authorized for national banks to engage in), or any account related thereto,
with respect to a consumer.</text>
</paragraph><paragraph id="HEF8D7AF46B7649CC9746E2BF64E50DC3"><enum>(3)</enum><header>Other
definitions</header><text>The terms <term>affiliate</term>,
<term>subsidiary</term>, <term>includes</term>, and <term>including</term> have
the same meanings as in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph></subsection><subsection id="H4D6896017D014CBFB7F5ABED68E719C4"><enum>(b)</enum><header>Preemption
standard</header>
<paragraph id="H9F4BC2828B1249F994E2B8C86A911E0F"><enum>(1)</enum><header>In
general</header><text>State consumer financial laws are preempted, only
if—</text>
<subparagraph id="H534BFF707F904FEBB16A304ACB546144"><enum>(A)</enum><text>application of a
State consumer financial law would have a discriminatory effect on national
banks, in comparison with the effect of the law on a bank chartered by that
State;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H882DEBB6BF69491392ECFB3F7389E45D"><enum>(B)</enum><text display-inline="yes-display-inline">in accordance with the legal standard for
preemption in the decision of the Supreme Court of the United States in Barnett
Bank of Marion County, N. A. v. Nelson, Florida Insurance Commissioner, et al.,
517 U.S. 25 (1996), the State consumer financial law prevents or significantly
interferes with the exercise by the national bank of its powers; and any
preemption determination under this subparagraph may be made by a court, or by
regulation or order of the Comptroller of the Currency on a case-by-case basis,
in accordance with applicable law; or</text>
</subparagraph><subparagraph id="HFBFBB761E4BB4F72942E2D44CA19170D"><enum>(C)</enum><text>the State consumer
financial law is preempted by a provision of Federal law other than this
title.</text>
</subparagraph></paragraph><paragraph id="HCCE821461B664B04B1E1BEE482714463"><enum>(2)</enum><header>Savings
clause</header><text>This title and section 24 of the Federal Reserve Act (12
U.S.C. 371) do not preempt, annul, or affect the applicability of any State law
to any subsidiary or affiliate of a national bank (other than a subsidiary or
affiliate that is chartered as a national bank).</text>
</paragraph><paragraph id="H52440461707E4D4995634759E2472B60"><enum>(3)</enum><header>Case-by-case
basis</header>
<subparagraph id="H5C32C1BD795E46869666D3ECE338D8E0"><enum>(A)</enum><header>Definition</header><text>As
used in this section the term <term>case-by-case basis</term> refers to a
determination pursuant to this section made by the Comptroller concerning the
impact of a particular State consumer financial law on any national bank that
is subject to that law, or the law of any other State with substantively
equivalent terms.</text>
</subparagraph><subparagraph id="H7D274DE63AD84B9E90711D5FFBD30FDE"><enum>(B)</enum><header>Consultation</header><text>When
making a determination on a case-by-case basis that a State consumer financial
law of another State has substantively equivalent terms as one that the
Comptroller is preempting, the Comptroller shall first consult with the Bureau
of Consumer Financial Protection and shall take the views of the Bureau into
account when making the determination.</text>
</subparagraph></paragraph><paragraph id="HA689C5FEBAC047229865BCD66D7708E6"><enum>(4)</enum><header>Rule of
construction</header><text>This title does not occupy the field in any area of
State law.</text>
</paragraph><paragraph id="H14482A7A2FDB465ABA1B6286BE8E1FFB"><enum>(5)</enum><header>Standards of
review</header>
<subparagraph id="HC050FAE941254B73967E8D3B40F9AA64"><enum>(A)</enum><header>Preemption</header><text>A
court reviewing any determinations made by the Comptroller regarding preemption
of a State law by this title or section 24 of the Federal Reserve Act (12
U.S.C. 371) shall assess the validity of such determinations, depending upon
the thoroughness evident in the consideration of the agency, the validity of
the reasoning of the agency, the consistency with other valid determinations
made by the agency, and other factors which the court finds persuasive and
relevant to its decision.</text>
</subparagraph><subparagraph id="H5146FA008D2C468AB156D2FC8069FB03"><enum>(B)</enum><header>Savings
clause</header><text>Except as provided in subparagraph (A), nothing in this
section shall affect the deference that a court may afford to the Comptroller
in making determinations regarding the meaning or interpretation of title LXII
of the Revised Statutes of the United States or other Federal laws.</text>
</subparagraph></paragraph><paragraph id="HD9C15C3C6FA248D1A8E3D0B59BFF2D5A"><enum>(6)</enum><header>Comptroller
determination not delegable</header><text>Any regulation, order, or
determination made by the Comptroller of the Currency under paragraph (1)(B)
shall be made by the Comptroller, and shall not be delegable to another officer
or employee of the Comptroller of the Currency.</text>
</paragraph></subsection><subsection id="HD5D59ADC2A32472BB935FF16501AA6F7"><enum>(c)</enum><header>Substantial
evidence</header><text>No regulation or order of the Comptroller of the
Currency prescribed under subsection (b)(1)(B), shall be interpreted or applied
so as to invalidate, or otherwise declare inapplicable to a national bank, the
provision of the State consumer financial law, unless substantial evidence,
made on the record of the proceeding, supports the specific finding regarding
the preemption of such provision in accordance with the legal standard of the
decision of the Supreme Court of the United States in Barnett Bank of Marion
County, N.A. v. Nelson, Florida Insurance Commissioner, et al., 517 U.S. 25
(1996).</text>
</subsection><subsection id="H08829654340E43EAAE46715EEF0698A8"><enum>(d)</enum><header>Periodic review
of preemption determinations</header>
<paragraph id="HA90D5748959B4D9AAD2942D38DFFC113"><enum>(1)</enum><header>In
general</header><text>The Comptroller of the Currency shall periodically
conduct a review, through notice and public comment, of each determination that
a provision of Federal law preempts a State consumer financial law. The agency
shall conduct such review within the 5-year period after prescribing or
otherwise issuing such determination, and at least once during each 5-year
period thereafter. After conducting the review of, and inspecting the comments
made on, the determination, the agency shall publish a notice in the Federal
Register announcing the decision to continue or rescind the determination or a
proposal to amend the determination. Any such notice of a proposal to amend a
determination and the subsequent resolution of such proposal shall comply with
the procedures set forth in subsections (a) and (b) of section 5244 of the
Revised Statutes of the United States (12 U.S.C. 43 (a), (b)).</text>
</paragraph><paragraph id="HCC36DF0DA18543048E7B24CBB06500D0"><enum>(2)</enum><header>Reports to
Congress</header><text>At the time of issuing a review conducted under
paragraph (1), the Comptroller of the Currency shall submit a report regarding
such review to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate. The report submitted to the respective committees shall address whether
the agency intends to continue, rescind, or propose to amend any determination
that a provision of Federal law preempts a State consumer financial law, and
the reasons therefor.</text>
</paragraph></subsection><subsection id="HEFE0FC6EAE2E408B8E0B8E644AD5AE92"><enum>(e)</enum><header>Application of
State consumer financial law to subsidiaries and
affiliates</header><text>Notwithstanding any provision of this title or section
24 of Federal Reserve Act (12 U.S.C. 371), a State consumer financial law shall
apply to a subsidiary or affiliate of a national bank (other than a subsidiary
or affiliate that is chartered as a national bank) to the same extent that the
State consumer financial law applies to any person, corporation, or other
entity subject to such State law.</text>
</subsection><subsection id="H3F235136095048FDAD5334E40F3838F2"><enum>(f)</enum><header>Preservation of
powers related to charging interest</header><text>No provision of this title
shall be construed as altering or otherwise affecting the authority conferred
by section 5197 of the Revised Statutes of the United States (12 U.S.C. 85) for
the charging of interest by a national bank at the rate allowed by the laws of
the State, territory, or district where the bank is located, including with
respect to the meaning of <quote>interest</quote> under such provision.</text>
</subsection><subsection id="HF3F472926F5B463C93568D274F34357D"><enum>(g)</enum><header>Transparency of
OCC preemption determinations</header><text>The Comptroller of the Currency
shall publish and update no less frequently than quarterly, a list of
preemption determinations by the Comptroller of the Currency then in effect
that identifies the activities and practices covered by each determination and
the requirements and constraints determined to be
preempted.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H79C9D4A19C5B46B9B4868294D548D8A3"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter one of title LXII of
the Revised Statutes of the United States is amended by inserting after the
item relating to section 5136B the following new item:</text>
<quoted-block id="HF4E91B0A5B844759A3723E4E9CEC546C" style="OLC">
<toc>
<toc-entry level="section">Sec. 5136C. State law preemption standards
for national banks and subsidiaries
clarified.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HCE7476204A3542E99243F821494146C5"><enum>1045.</enum><header>Clarification
of law applicable to nondepository institution subsidiaries</header><text display-inline="no-display-inline">Section 5136C of the Revised Statutes of the
United States (as added by this subtitle) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H8378C526FC4F406D8AC16BADB2AACA9C" style="OLC">
<subsection id="H472229E9C04C46BD89CB200434C139B3"><enum>(h)</enum><header>Clarification of
law applicable to nondepository institution subsidiaries and affiliates of
national banks</header>
<paragraph id="H6DCD084FED334FFE851CDB0D77ABA02C"><enum>(1)</enum><header>Definitions</header><text>For
purposes of this subsection, the terms <term>depository institution</term>,
<term>subsidiary</term>, and <term>affiliate</term> have the same meanings as
in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph><paragraph id="H97CD9ED738284289BAF1F889FE72A3DB"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this title or section 24 of the
Federal Reserve Act (12 U.S.C. 371) shall be construed as preempting,
annulling, or affecting the applicability of State law to any subsidiary,
affiliate, or agent of a national bank (other than a subsidiary, affiliate, or
agent that is chartered as a national
bank).</text>
</paragraph></subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="H862D0BC97D084F7CAEA212599237E84E"><enum>1046.</enum><header>State law
preemption standards for Federal savings associations and subsidiaries
clarified</header>
<subsection id="HDFA8B63A436E43AAA2BD7D87FA1C067F"><enum>(a)</enum><header>In
general</header><text>The Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is
amended by inserting after section 5 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC8581BED4FD64B148AD845F11DCCF2EB" style="OLC">
<section id="H238A98BCF2914C038939C97AE3519176"><enum>6.</enum><header>State law
preemption standards for Federal savings associations clarified</header>
<subsection id="HAD50A45040454B77A4F96D9570636F30"><enum>(a)</enum><header>In
general</header><text>Any determination by a court or by the Director or any
successor officer or agency regarding the relation of State law to a provision
of this Act or any regulation or order prescribed under this Act shall be made
in accordance with the laws and legal standards applicable to national banks
regarding the preemption of State law.</text>
</subsection><subsection id="HCE9C1BC937284A50BCEC5839B9AE8D35"><enum>(b)</enum><header>Principles of
conflict preemption applicable</header><text>Notwithstanding the authorities
granted under sections 4 and 5, this Act does not occupy the field in any area
of State
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H353F9BDB68444DF8AAF236B5D8CDD6E3"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for the Home Owners' Loan Act (12
U.S.C. 1461 et seq.) is amended by striking the item relating to section 6 and
inserting the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HA25686DE08294DF7B700D67680A229BB" style="OLC">
<toc>
<toc-entry bold="off" level="paragraph">Sec. 6. State law preemption
standards for Federal savings associations and subsidiaries
clarified.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HAC5D369E22294BFAADD006E14A93869D"><enum>1047.</enum><header>Visitorial
standards for national banks and savings associations</header>
<subsection id="H851302767E754A6499E6972B3B690D4B"><enum>(a)</enum><header>National
banks</header><text display-inline="yes-display-inline">Section 5136C of the
Revised Statutes of the United States (as added by this subtitle) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0016189CE5DC4D879A2B52944BDCF5D9" style="OLC">
<subsection id="H49CC3E95DF4448F4A2516C30F5CA3726"><enum>(i)</enum><header>Visitorial
powers</header>
<paragraph id="H1840019443D2431FAC072ACB7C77A7FB"><enum>(1)</enum><header>In
general</header><text>In accordance with the decision of the Supreme Court of
the United States in Cuomo v. Clearing House Assn., L. L. C. (129 S. Ct. 2710
(2009)), no provision of this title which relates to visitorial powers or
otherwise limits or restricts the visitorial authority to which any national
bank is subject shall be construed as limiting or restricting the authority of
any attorney general (or other chief law enforcement officer) of any State to
bring an action against a national bank in a court of appropriate jurisdiction
to enforce an applicable law and to seek relief as authorized by such
law.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2706E84F4A09421FB25EBFDBAB426314"><enum>(j)</enum><header display-inline="yes-display-inline">Enforcement actions</header><text display-inline="yes-display-inline">The ability of the Comptroller of the
Currency to bring an enforcement action under this title or section 5 of the
Federal Trade Commission Act does not preclude any private party from enforcing
rights granted under Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD3534F8FD7414C29B826C12161A2543A"><enum>(b)</enum><header>Savings
associations</header><text>Section 6 of the Home Owners’ Loan Act (as added by
this title) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H84A6A67C5DE34E58B64D98D641193FBC" style="OLC">
<subsection id="HC8426F4B08CE4AB0A60B48059AF32C1E"><enum>(c)</enum><header>Visitorial
powers</header><text>The provisions of sections 5136C(i) of the Revised
Statutes of the United States shall apply to Federal savings associations, and
any subsidiary thereof, to the same extent and in the same manner as if such
savings associations, or subsidiaries thereof, were national banks or
subsidiaries of national banks,
respectively.</text>
</subsection><after-quoted-block></after-quoted-block></quoted-block>
<quoted-block display-inline="no-display-inline" id="H31A9AA81824340CE91A5CE1801963ECA" style="OLC">
<subsection id="H6C41795C5F7B401BAD81FB8AB4209DB6"><enum>(d)</enum><header>Enforcement
actions</header><text>The ability of the Comptroller of the Currency to bring
an enforcement action under this Act or section 5 of the Federal Trade
Commission Act does not preclude any private party from enforcing rights
granted under Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HA4FE9938D0F54BE89413036532C7245B"><enum>1048.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date.</text>
</section></subtitle><subtitle id="H0C4853A536174F158DF541E262BD57AE"><enum>E</enum><header>Enforcement
Powers</header>
<section id="HB23650FEC2F84627A44B139A67259AB6"><enum>1051.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph id="HB1C81655336E4BEDAA57883AA8BE570D"><enum>(1)</enum><header>Bureau
investigation</header><text>The term <term>Bureau investigation</term> means
any inquiry conducted by a Bureau investigator for the purpose of ascertaining
whether any person is or has been engaged in any conduct that is a violation,
as defined in this section.</text>
</paragraph><paragraph id="H3536727FACCA40A4B1666137BCBDCEAD"><enum>(2)</enum><header>Bureau
investigator</header><text>The term <term>Bureau investigator</term> means any
attorney or investigator employed by the Bureau who is charged with the duty of
enforcing or carrying into effect any Federal consumer financial law.</text>
</paragraph><paragraph id="HDE44E1C14E1C4F28BED568B009E54D22"><enum>(3)</enum><header>Custodian</header><text>The
term <term>custodian</term> means the custodian or any deputy custodian
designated by the Bureau.</text>
</paragraph><paragraph id="HAA6A69D4C093430E980B978A18C88028"><enum>(4)</enum><header>Documentary
material</header><text>The term <term>documentary material</term> includes the
original or any copy of any book, document, record, report, memorandum, paper,
communication, tabulation, chart, logs, electronic files, or other data or data
compilations stored in any medium.</text>
</paragraph><paragraph id="H50E81286415748B196063DE1117D03B9"><enum>(5)</enum><header>Violation</header><text>The
term <term>violation</term> means any act or omission that, if proved, would
constitute a violation of any provision of Federal consumer financial
law.</text>
</paragraph></section><section id="HFCAEAF0E39F145B88FDD07FD512D3902"><enum>1052.</enum><header>Investigations
and administrative discovery</header>
<subsection id="H8AEEDA8354BD464285BB9CB081D52047"><enum>(a)</enum><header>Joint
investigations</header>
<paragraph id="H3DD90C31E78B4F20BB9A36B362704440"><enum>(1)</enum><header>In
general</header><text>The Bureau or, where appropriate, a Bureau investigator,
may engage in joint investigations and requests for information, as authorized
under this title.</text>
</paragraph><paragraph id="HE9D210C93EE44E57BD7A81FA2ED8B087"><enum>(2)</enum><header>Fair
lending</header><text>The authority under paragraph (1) includes matters
relating to fair lending, and where appropriate, joint investigations with, and
requests for information from, the Secretary of Housing and Urban Development,
the Attorney General of the United States, or both.</text>
</paragraph></subsection><subsection id="H7E85286042184394A2F23FF217500762"><enum>(b)</enum><header>Subpoenas</header>
<paragraph id="H97E21221CF4C4ACD93E5CF8D14C44CE6"><enum>(1)</enum><header>In
general</header><text>The Bureau or a Bureau investigator may issue subpoenas
for the attendance and testimony of witnesses and the production of relevant
papers, books, documents, or other material in connection with hearings under
this title.</text>
</paragraph><paragraph id="H99D57CA77F8549988BA9B0E07C01F501"><enum>(2)</enum><header>Failure to
obey</header><text>In the case of contumacy or refusal to obey a subpoena
issued pursuant to this paragraph and served upon any person, the district
court of the United States for any district in which such person is found,
resides, or transacts business, upon application by the Bureau or a Bureau
investigator and after notice to such person, may issue an order requiring such
person to appear and give testimony or to appear and produce documents or other
material.</text>
</paragraph><paragraph id="HBD7695FD3D654BFABF38A813C6D518F0"><enum>(3)</enum><header>Contempt</header><text>Any
failure to obey an order of the court under this subsection may be punished by
the court as a contempt thereof.</text>
</paragraph></subsection><subsection id="H53239D18B5E24F18B933062ADF780AB0"><enum>(c)</enum><header>Demands</header>
<paragraph id="H4E97D42EA6B94323946C3929E58A5F6C"><enum>(1)</enum><header>In
general</header><text>Whenever the Bureau has reason to believe that any person
may be in possession, custody, or control of any documentary material or
tangible things, or may have any information, relevant to a violation, the
Bureau may, before the institution of any proceedings under the Federal
consumer financial law, issue in writing, and cause to be served upon such
person, a civil investigative demand requiring such person to—</text>
<subparagraph id="H37E63821CC624ED3AD8DF3D62E5073C6"><enum>(A)</enum><text>produce such
documentary material for inspection and copying or reproduction in the form or
medium requested by the Bureau;</text>
</subparagraph><subparagraph id="HA08A1C8DC3094ECAAFBD2DE94631C2BD"><enum>(B)</enum><text>submit such
tangible things;</text>
</subparagraph><subparagraph id="HA93E94C5852E4A2CB075940E6D309970"><enum>(C)</enum><text>file written
reports or answers to questions;</text>
</subparagraph><subparagraph id="H789CD42EF2844E0C873F8FF3E767602C"><enum>(D)</enum><text>give oral
testimony concerning documentary material, tangible things, or other
information; or</text>
</subparagraph><subparagraph id="H4FD63DDC50464C6E9609D2327698326C"><enum>(E)</enum><text>furnish any
combination of such material, answers, or testimony.</text>
</subparagraph></paragraph><paragraph id="H266FA660376841CDA603CFFE3D129BD7"><enum>(2)</enum><header>Requirements</header><text>Each
civil investigative demand shall state the nature of the conduct constituting
the alleged violation which is under investigation and the provision of law
applicable to such violation.</text>
</paragraph><paragraph id="H27A1AA1DF26C413F9D1176293C328EA5"><enum>(3)</enum><header>Production of
documents</header><text>Each civil investigative demand for the production of
documentary material shall—</text>
<subparagraph id="H60E9F75CFB234E639D15302F963DF545"><enum>(A)</enum><text>describe each
class of documentary material to be produced under the demand with such
definiteness and certainty as to permit such material to be fairly
identified;</text>
</subparagraph><subparagraph id="H143B705B88994DA9A643073B5FF443DC"><enum>(B)</enum><text>prescribe a return
date or dates which will provide a reasonable period of time within which the
material so demanded may be assembled and made available for inspection and
copying or reproduction; and</text>
</subparagraph><subparagraph id="HF5932D21B4944AE5897494FEDD68B29B"><enum>(C)</enum><text>identify the
custodian to whom such material shall be made available.</text>
</subparagraph></paragraph><paragraph id="HBEF954F1A9654B2DB59F962199E96F60"><enum>(4)</enum><header>Production of
things</header><text>Each civil investigative demand for the submission of
tangible things shall—</text>
<subparagraph id="HBB7A38DD2C1A45D293F68941D89B3FB2"><enum>(A)</enum><text>describe each
class of tangible things to be submitted under the demand with such
definiteness and certainty as to permit such things to be fairly
identified;</text>
</subparagraph><subparagraph id="H6E319B20D94549F4AFE31AA863A93CA1"><enum>(B)</enum><text>prescribe a return
date or dates which will provide a reasonable period of time within which the
things so demanded may be assembled and submitted; and</text>
</subparagraph><subparagraph id="HF5189503BDC7401C881B24FF3A54D712"><enum>(C)</enum><text>identify the
custodian to whom such things shall be submitted.</text>
</subparagraph></paragraph><paragraph id="HBAA8FDF330014973B863364770AF0EF8"><enum>(5)</enum><header>Demand for
written reports or answers</header><text>Each civil investigative demand for
written reports or answers to questions shall—</text>
<subparagraph id="H37B7DCC53BC24D1A8CED3DFF443615DB"><enum>(A)</enum><text>propound with
definiteness and certainty the reports to be produced or the questions to be
answered;</text>
</subparagraph><subparagraph id="H41407B1879ED40279A98C4AB348EAFD1"><enum>(B)</enum><text>prescribe a date
or dates at which time written reports or answers to questions shall be
submitted; and</text>
</subparagraph><subparagraph id="H72425C01617A4C02AD62887550C5FCB5"><enum>(C)</enum><text>identify the
custodian to whom such reports or answers shall be submitted.</text>
</subparagraph></paragraph><paragraph id="H27A3046649CA403A874A99393C81CFBF"><enum>(6)</enum><header>Oral
testimony</header><text>Each civil investigative demand for the giving of oral
testimony shall—</text>
<subparagraph id="H72064CF882F844C7A20D46E02CC4185F"><enum>(A)</enum><text>prescribe a date,
time, and place at which oral testimony shall be commenced; and</text>
</subparagraph><subparagraph id="HA491B353B84B4C2988BB505F9ADF5BF4"><enum>(B)</enum><text>identify a Bureau
investigator who shall conduct the investigation and the custodian to whom the
transcript of such investigation shall be submitted.</text>
</subparagraph></paragraph><paragraph id="H910782E723034F99A203503CFB29620A"><enum>(7)</enum><header>Service</header><text>Any
civil investigative demand issued, and any enforcement petition filed, under
this section may be served—</text>
<subparagraph id="HC9597A8997FA4D459A23D487C9C4EE93"><enum>(A)</enum><text>by any Bureau
investigator at any place within the territorial jurisdiction of any court of
the United States; and</text>
</subparagraph><subparagraph id="HF7F071E90DBC4CA5A976B7F9C5EE8928"><enum>(B)</enum><text>upon any person
who is not found within the territorial jurisdiction of any court of the United
States—</text>
<clause id="H9DA4B9B2EF13478A8B083F9BEA5F52EF"><enum>(i)</enum><text>in
such manner as the Federal Rules of Civil Procedure prescribe for service in a
foreign nation; and</text>
</clause><clause id="HA755F9D2A2DD4953AC44AC9E6D8EED40"><enum>(ii)</enum><text>to
the extent that the courts of the United States have authority to assert
jurisdiction over such person, consistent with due process, the United States
District Court for the District of Columbia shall have the same jurisdiction to
take any action respecting compliance with this section by such person that
such district court would have if such person were personally within the
jurisdiction of such district court.</text>
</clause></subparagraph></paragraph><paragraph id="H172ABF89FEDE4F88A09571FD3DCFBBDC"><enum>(8)</enum><header>Method of
service</header><text>Service of any civil investigative demand or any
enforcement petition filed under this section may be made upon a person,
including any legal entity, by—</text>
<subparagraph id="H491EDF5E635B462E9407C1256A6157E4"><enum>(A)</enum><text>delivering a duly
executed copy of such demand or petition to the individual or to any partner,
executive officer, managing agent, or general agent of such person, or to any
agent of such person authorized by appointment or by law to receive service of
process on behalf of such person;</text>
</subparagraph><subparagraph id="HF0ED732FFB9140A09A3DF38D3AFE323D"><enum>(B)</enum><text>delivering a duly
executed copy of such demand or petition to the principal office or place of
business of the person to be served; or</text>
</subparagraph><subparagraph id="HFB256C83E50A402AAB01A853F55AFA39"><enum>(C)</enum><text>depositing a duly
executed copy in the United States mails, by registered or certified mail,
return receipt requested, duly addressed to such person at the principal office
or place of business of such person.</text>
</subparagraph></paragraph><paragraph id="HE3D2B77F2ED8472D92251FFE6F8456CE"><enum>(9)</enum><header>Proof of
service</header>
<subparagraph id="H62C1FACC1EEC41DFABFB621E616CE8C5"><enum>(A)</enum><header>In
general</header><text>A verified return by the individual serving any civil
investigative demand or any enforcement petition filed under this section
setting forth the manner of such service shall be proof of such service.</text>
</subparagraph><subparagraph id="HF484995D2DEF46599E6F00F430328B38"><enum>(B)</enum><header>Return
receipts</header><text>In the case of service by registered or certified mail,
such return shall be accompanied by the return post office receipt of delivery
of such demand or enforcement petition.</text>
</subparagraph></paragraph><paragraph id="H69E316D3B7BD41259FF6D3AA69DA6148"><enum>(10)</enum><header>Production of
documentary material</header><text>The production of documentary material in
response to a civil investigative demand shall be made under a sworn
certificate, in such form as the demand designates, by the person, if a natural
person, to whom the demand is directed or, if not a natural person, by any
person having knowledge of the facts and circumstances relating to such
production, to the effect that all of the documentary material required by the
demand and in the possession, custody, or control of the person to whom the
demand is directed has been produced and made available to the
custodian.</text>
</paragraph><paragraph id="HA6B828863F324F6DACE18555B9136BC1"><enum>(11)</enum><header>Submission of
tangible things</header><text>The submission of tangible things in response to
a civil investigative demand shall be made under a sworn certificate, in such
form as the demand designates, by the person to whom the demand is directed or,
if not a natural person, by any person having knowledge of the facts and
circumstances relating to such production, to the effect that all of the
tangible things required by the demand and in the possession, custody, or
control of the person to whom the demand is directed have been submitted to the
custodian.</text>
</paragraph><paragraph id="H2E1AAB0B9C0C4CB3A05BEB726B12C2DD"><enum>(12)</enum><header>Separate
answers</header><text>Each reporting requirement or question in a civil
investigative demand shall be answered separately and fully in writing under
oath, unless it is objected to, in which event the reasons for the objection
shall be stated in lieu of an answer, and it shall be submitted under a sworn
certificate, in such form as the demand designates, by the person, if a natural
person, to whom the demand is directed or, if not a natural person, by any
person responsible for answering each reporting requirement or question, to the
effect that all information required by the demand and in the possession,
custody, control, or knowledge of the person to whom the demand is directed has
been submitted.</text>
</paragraph><paragraph id="H24CB464ABE234058B9D56FFEF2216FB6"><enum>(13)</enum><header>Testimony</header>
<subparagraph id="HDC050F97FF9149B7BD4E26F83F7789A5"><enum>(A)</enum><header>In
general</header>
<clause id="H0AC569D66DB3462696F80E1C9655F76F"><enum>(i)</enum><header>Oath and
recordation</header><text display-inline="yes-display-inline">The examination
of any person pursuant to a demand for oral testimony served under this
subsection shall be taken before an officer authorized to administer oaths and
affirmations by the laws of the United States or of the place at which the
examination is held. The officer before whom oral testimony is to be taken
shall put the witness on oath or affirmation and shall personally, or by any
individual acting under the direction of and in the presence of the officer,
record the testimony of the witness.</text>
</clause><clause id="HC4D5C055D9B74FE0A8EA3535BA008133"><enum>(ii)</enum><header>Transcription</header><text>The
testimony shall be taken stenographically and transcribed.</text>
</clause><clause id="H149C30D35C684E739543254E74FC9B69"><enum>(iii)</enum><header>Transmission
to custodian</header><text>After the testimony is fully transcribed, the
officer investigator before whom the testimony is taken shall promptly transmit
a copy of the transcript of the testimony to the custodian.</text>
</clause></subparagraph><subparagraph id="HF8CAED7C7D0D4F68BCD2025505F9B452"><enum>(B)</enum><header>Parties
present</header><text>Any Bureau investigator before whom oral testimony is to
be taken shall exclude from the place where the testimony is to be taken all
other persons, except the person giving the testimony, the attorney for that
person, the officer before whom the testimony is to be taken, an investigator
or representative of an agency with which the Bureau is engaged in a joint
investigation, and any stenographer taking such testimony.</text>
</subparagraph><subparagraph id="H9A165275F8D544C28C0381AF6686D698"><enum>(C)</enum><header>Location</header><text>The
oral testimony of any person taken pursuant to a civil investigative demand
shall be taken in the judicial district of the United States in which such
person resides, is found, or transacts business, or in such other place as may
be agreed upon by the Bureau investigator before whom the oral testimony of
such person is to be taken and such person.</text>
</subparagraph><subparagraph id="H25F31053EBFD4362B40B7B11FCDC0E72"><enum>(D)</enum><header>Attorney
representation</header>
<clause id="HA4818568E9A54D04B64D4738DE335976"><enum>(i)</enum><header>In
general</header><text>Any person compelled to appear under a civil
investigative demand for oral testimony pursuant to this section may be
accompanied, represented, and advised by an attorney.</text>
</clause><clause id="H6E1287D6B20E46BFB065C2D9D8CA97E2"><enum>(ii)</enum><header>Authority</header><text>The
attorney may advise a person described in clause (i), in confidence, either
upon the request of such person or upon the initiative of the attorney, with
respect to any question asked of such person.</text>
</clause><clause id="H49A90747F85C4668AF96F449129CF270"><enum>(iii)</enum><header>Objections</header><text>A
person described in clause (i), or the attorney for that person, may object on
the record to any question, in whole or in part, and such person shall briefly
state for the record the reason for the objection. An objection may properly be
made, received, and entered upon the record when it is claimed that such person
is entitled to refuse to answer the question on grounds of any constitutional
or other legal right or privilege, including the privilege against
self-incrimination, but such person shall not otherwise object to or refuse to
answer any question, and such person or attorney shall not otherwise interrupt
the oral examination.</text>
</clause><clause id="H0E9947F12ADC452EBD0E1FEE559217F2"><enum>(iv)</enum><header>Refusal to
answer</header><text>If a person described in clause (i) refuses to answer any
question—</text>
<subclause id="H46861A90969C4898AA96667DDE46109F"><enum>(I)</enum><text>the Bureau may
petition the district court of the United States pursuant to this section for
an order compelling such person to answer such question; and</text>
</subclause><subclause id="HF74526BF30764E7AB86F6997A9B9D03F"><enum>(II)</enum><text>if the refusal is
on grounds of the privilege against self-incrimination, the testimony of such
person may be compelled in accordance with the provisions of section 6004 of
title 18, United States Code.</text>
</subclause></clause></subparagraph><subparagraph id="HAD16F492587E47F3BEAFE2CEC008CFC7"><enum>(E)</enum><header>Transcripts</header><text>For
purposes of this subsection—</text>
<clause id="H090FBBABBE3C4BE393A593308C50EDC0"><enum>(i)</enum><text>after the
testimony of any witness is fully transcribed, the Bureau investigator shall
afford the witness (who may be accompanied by an attorney) a reasonable
opportunity to examine the transcript;</text>
</clause><clause id="H0653CBE72D2A402AA7109CBB4E732BF3"><enum>(ii)</enum><text>the
transcript shall be read to or by the witness, unless such examination and
reading are waived by the witness;</text>
</clause><clause id="H86E1C80AA0EC493E925E21DBB95FF301"><enum>(iii)</enum><text>any changes in
form or substance which the witness desires to make shall be entered and
identified upon the transcript by the Bureau investigator, with a statement of
the reasons given by the witness for making such changes;</text>
</clause><clause id="H185DD65B3B444E528C38F860C9FE0566"><enum>(iv)</enum><text>the
transcript shall be signed by the witness, unless the witness in writing waives
the signing, is ill, cannot be found, or refuses to sign; and</text>
</clause><clause id="HE7518311EB8243F18F425D2F931009CC"><enum>(v)</enum><text>if
the transcript is not signed by the witness during the 30-day period following
the date on which the witness is first afforded a reasonable opportunity to
examine the transcript, the Bureau investigator shall sign the transcript and
state on the record the fact of the waiver, illness, absence of the witness, or
the refusal to sign, together with any reasons given for the failure to
sign.</text>
</clause></subparagraph><subparagraph id="H1FF7E3D18ECE4ABA892DAD3365D7516B"><enum>(F)</enum><header>Certification by
investigator</header><text>The Bureau investigator shall certify on the
transcript that the witness was duly sworn by him or her and that the
transcript is a true record of the testimony given by the witness, and the
Bureau investigator shall promptly deliver the transcript or send it by
registered or certified mail to the custodian.</text>
</subparagraph><subparagraph id="H2CDDE61A2CAB43348A5F7D931273BB2E"><enum>(G)</enum><header>Copy of
transcript</header><text>The Bureau investigator shall furnish a copy of the
transcript (upon payment of reasonable charges for the transcript) to the
witness only, except that the Bureau may for good cause limit such witness to
inspection of the official transcript of his testimony.</text>
</subparagraph><subparagraph id="H3C85CDABBE9F4548B0974DFD82D5FB23"><enum>(H)</enum><header>Witness
fees</header><text>Any witness appearing for the taking of oral testimony
pursuant to a civil investigative demand shall be entitled to the same fees and
mileage which are paid to witnesses in the district courts of the United
States.</text>
</subparagraph></paragraph></subsection><subsection id="H25167A6B831F4E5499A211D0DEC32DE3"><enum>(d)</enum><header>Confidential
treatment of demand material</header>
<paragraph id="H1ED87931786441B7BB889118301F585E"><enum>(1)</enum><header>In
general</header><text>Documentary materials and tangible things received as a
result of a civil investigative demand shall be subject to requirements and
procedures regarding confidentiality, in accordance with rules established by
the Bureau.</text>
</paragraph><paragraph id="H1ACDA5B0963748D7B864593F4824F033"><enum>(2)</enum><header>Disclosure to
congress</header><text>No rule established by the Bureau regarding the
confidentiality of materials submitted to, or otherwise obtained by, the Bureau
shall be intended to prevent disclosure to either House of Congress or to an
appropriate committee of the Congress, except that the Bureau is permitted to
adopt rules allowing prior notice to any party that owns or otherwise provided
the material to the Bureau and had designated such material as
confidential.</text>
</paragraph></subsection><subsection id="H95A925904B174500B390B250FD84B4DC"><enum>(e)</enum><header>Petition for
enforcement</header>
<paragraph id="HC40C86A8399E41DC920ADD13FA6378DD"><enum>(1)</enum><header>In
general</header><text>Whenever any person fails to comply with any civil
investigative demand duly served upon him under this section, or whenever
satisfactory copying or reproduction of material requested pursuant to the
demand cannot be accomplished and such person refuses to surrender such
material, the Bureau, through such officers or attorneys as it may designate,
may file, in the district court of the United States for any judicial district
in which such person resides, is found, or transacts business, and serve upon
such person, a petition for an order of such court for the enforcement of this
section.</text>
</paragraph><paragraph id="HD2E741962D67431F824F04C461212438"><enum>(2)</enum><header>Service of
process</header><text>All process of any court to which application may be made
as provided in this subsection may be served in any judicial district.</text>
</paragraph></subsection><subsection id="H458BF52D46EA4ED58A184E318C0D1B06"><enum>(f)</enum><header>Petition for
order modifying or setting aside demand</header>
<paragraph id="HB2D3241C555D49FD916AA74B10636539"><enum>(1)</enum><header>In
general</header><text>Not later than 20 days after the service of any civil
investigative demand upon any person under subsection (b), or at any time
before the return date specified in the demand, whichever period is shorter, or
within such period exceeding 20 days after service or in excess of such return
date as may be prescribed in writing, subsequent to service, by any Bureau
investigator named in the demand, such person may file with the Bureau a
petition for an order by the Bureau modifying or setting aside the
demand.</text>
</paragraph><paragraph id="H642D9ABCE76B4AB6909EB4CB5D463B67"><enum>(2)</enum><header>Compliance
during pendency</header><text>The time permitted for compliance with the demand
in whole or in part, as determined proper and ordered by the Bureau, shall not
run during the pendency of a petition under paragraph (1) at the Bureau, except
that such person shall comply with any portions of the demand not sought to be
modified or set aside.</text>
</paragraph><paragraph id="H3CBEE56164DE44268DA9036740E7668B"><enum>(3)</enum><header>Specific
grounds</header><text>A petition under paragraph (1) shall specify each ground
upon which the petitioner relies in seeking relief, and may be based upon any
failure of the demand to comply with the provisions of this section, or upon
any constitutional or other legal right or privilege of such person.</text>
</paragraph></subsection><subsection id="HC90A0223063E43C7AFD463B3B531CE4A"><enum>(g)</enum><header>Custodial
control</header><text>At any time during which any custodian is in custody or
control of any documentary material, tangible things, reports, answers to
questions, or transcripts of oral testimony given by any person in compliance
with any civil investigative demand, such person may file, in the district
court of the United States for the judicial district within which the office of
such custodian is situated, and serve upon such custodian, a petition for an
order of such court requiring the performance by such custodian of any duty
imposed upon him by this section or rule promulgated by the Bureau.</text>
</subsection><subsection id="H1689BE348F2A45FB848064BF03A70D08"><enum>(h)</enum><header>Jurisdiction of
court</header>
<paragraph id="H3289993890644B91ABB550B9A35764FF"><enum>(1)</enum><header>In
general</header><text>Whenever any petition is filed in any district court of
the United States under this section, such court shall have jurisdiction to
hear and determine the matter so presented, and to enter such order or orders
as may be required to carry out the provisions of this section.</text>
</paragraph><paragraph id="H773D293ED5804C6C9D08900899805C1A"><enum>(2)</enum><header>Appeal</header><text>Any
final order entered as described in paragraph (1) shall be subject to appeal
pursuant to section 1291 of title 28, United States Code.</text>
</paragraph></subsection></section><section id="HB5724145E649413AA27D0C08DFA585EB"><enum>1053.</enum><header>Hearings and
adjudication proceedings</header>
<subsection id="HE234476BC2824BB8A8C43DB4524FD4D8"><enum>(a)</enum><header>In
general</header><text>The Bureau is authorized to conduct hearings and
adjudication proceedings with respect to any person in the manner prescribed by
chapter 5 of title 5, United States Code in order to ensure or enforce
compliance with—</text>
<paragraph id="H39AF2C00CDB742919DD8F03DA31E7074"><enum>(1)</enum><text>the provisions of
this title, including any rules prescribed by the Bureau under this title;
and</text>
</paragraph><paragraph id="H527FF5ACBA014D808B3BFD7705922AD6"><enum>(2)</enum><text>any other Federal
law that the Bureau is authorized to enforce, including an enumerated consumer
law, and any regulations or order prescribed thereunder, unless such Federal
law specifically limits the Bureau from conducting a hearing or adjudication
proceeding and only to the extent of such limitation.</text>
</paragraph></subsection><subsection id="HDA0495DB10F54C5CAAEC33499B9DBB86"><enum>(b)</enum><header>Special rules
for cease-and-desist proceedings</header>
<paragraph id="HD075EC75C7E44D3B8934FF4545B3A82B"><enum>(1)</enum><header>Orders
authorized</header>
<subparagraph id="H4A4DDFFCD46544D1AAC869F4F1DC3888"><enum>(A)</enum><header>In
general</header><text>If, in the opinion of the Bureau, any covered person or
service provider is engaging or has engaged in an activity that violates a law,
rule, or any condition imposed in writing on the person by the Bureau, the
Bureau may, subject to sections 1024, 1025, and 1026, issue and serve upon the
covered person or service provider a notice of charges in respect
thereof.</text>
</subparagraph><subparagraph id="H96BACB943DB94A73B17AF2531B8CA20F"><enum>(B)</enum><header>Content of
notice</header><text>The notice under subparagraph (A) shall contain a
statement of the facts constituting the alleged violation or violations, and
shall fix a time and place at which a hearing will be held to determine whether
an order to cease and desist should issue against the covered person or service
provider, such hearing to be held not earlier than 30 days nor later than 60
days after the date of service of such notice, unless an earlier or a later
date is set by the Bureau, at the request of any party so served.</text>
</subparagraph><subparagraph id="HD8877DC4710E4A08967AFE06227E4F72"><enum>(C)</enum><header>Consent</header><text>Unless
the party or parties served under subparagraph (B) appear at the hearing
personally or by a duly authorized representative, such person shall be deemed
to have consented to the issuance of the cease-and-desist order.</text>
</subparagraph><subparagraph id="H4D3196F9C1D741829F51C84D03E4D997"><enum>(D)</enum><header>Procedure</header><text>In
the event of consent under subparagraph (C), or if, upon the record, made at
any such hearing, the Bureau finds that any violation specified in the notice
of charges has been established, the Bureau may issue and serve upon the
covered person or service provider an order to cease and desist from the
violation or practice. Such order may, by provisions which may be mandatory or
otherwise, require the covered person or service provider to cease and desist
from the subject activity, and to take affirmative action to correct the
conditions resulting from any such violation.</text>
</subparagraph></paragraph><paragraph id="H3FC215A3A1FE44AB96B690E7F0D8BFE8"><enum>(2)</enum><header>Effectiveness of
order</header><text>A cease-and-desist order shall become effective at the
expiration of 30 days after the date of service of an order under paragraph (1)
upon the covered person or service provider 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 the order is stayed, modified, terminated, or
set aside by action of the Bureau or a reviewing court.</text>
</paragraph><paragraph id="H3F85DFCF6B704B3EBFD4FDCBD5D6A7AF"><enum>(3)</enum><header>Decision and
appeal</header><text>Any hearing provided for in this subsection shall be held
in the Federal judicial district or in the territory in which the residence or
principal office or place of business of the person is located unless the
person 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 90 days after the Bureau has notified the parties that the
case has been submitted to the Bureau for final decision, the Bureau 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. Unless a petition for review is timely filed in a court of appeals
of the United States, as provided in paragraph (4), and thereafter until the
record in the proceeding has been filed as provided in paragraph (4), the
Bureau may at any time, upon such notice and in such manner as the Bureau shall
determine proper, modify, terminate, or set aside any such order. Upon filing
of the record as provided, the Bureau may modify, terminate, or set aside any
such order with permission of the court.</text>
</paragraph><paragraph id="H096C13DA1E0542FB9A39FD14E47F891C"><enum>(4)</enum><header>Appeal to court
of appeals</header><text>Any party to any proceeding under this subsection may
obtain a review of any order served pursuant to this subsection (other than an
order issued with the consent of the person concerned) by the filing in the
court of appeals of the United States for the circuit in which the principal
office of the covered person is located, or in the United States Court of
Appeals for the District of Columbia Circuit, within 30 days after the date of
service of such order, a written petition praying that the order of the Bureau
be modified, terminated, or set aside. A copy of such petition shall be
forthwith transmitted by the clerk of the court to the Bureau, and thereupon
the Bureau 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 paragraph (3) be
exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the
order of the Bureau. 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 of the United States, upon certiorari, as provided in section
1254 of title 28 of the United States Code.</text>
</paragraph><paragraph id="H37C0FAD9CA8A497A91B2EA67FE700B70"><enum>(5)</enum><header>No
stay</header><text>The commencement of proceedings for judicial review under
paragraph (4) shall not, unless specifically ordered by the court, operate as a
stay of any order issued by the Bureau.</text>
</paragraph></subsection><subsection id="H2F7A2D559556482685A7B65713D42DA6"><enum>(c)</enum><header>Special rules
for temporary cease-and-desist proceedings</header>
<paragraph id="HF00C0902664B49EEB40166AB26DEF7D2"><enum>(1)</enum><header>In
general</header><text>Whenever the Bureau determines that the violation
specified in the notice of charges served upon a person, including a service
provider, pursuant to subsection (b), or the continuation thereof, is likely to
cause the person to be insolvent or otherwise prejudice the interests of
consumers before the completion of the proceedings conducted pursuant to
subsection (b), the Bureau may issue a temporary order requiring the person to
cease and desist from any such violation or practice and to take affirmative
action to prevent or remedy such insolvency or other condition pending
completion of such proceedings. Such order may include any requirement
authorized under this subtitle. Such order shall become effective upon service
upon the person and, unless set aside, limited, or suspended by a court in
proceedings authorized by paragraph (2), shall remain effective and enforceable
pending the completion of the administrative proceedings pursuant to such
notice and until such time as the Bureau shall dismiss the charges specified in
such notice, or if a cease-and-desist order is issued against the person, until
the effective date of such order.</text>
</paragraph><paragraph id="H49AB3D8FF5E341AEA0E9C74D1FD3E66E"><enum>(2)</enum><header>Appeal</header><text>Not
later than 10 days after the covered person or service provider concerned has
been served with a temporary cease-and-desist order, the person may apply to
the United States district court for the judicial district in which the
residence or principal office or place of business of the person 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 person under
subsection (b), and such court shall have jurisdiction to issue such
injunction.</text>
</paragraph><paragraph id="H2215727D8BD44BAE8BF5C9873832CC2F"><enum>(3)</enum><header>Incomplete or
inaccurate records</header>
<subparagraph id="HC61BDAA25F0042F7877300F29A60118F"><enum>(A)</enum><header>Temporary
order</header><text>If a notice of charges served under subsection (b)
specifies, on the basis of particular facts and circumstances, that the books
and records of a covered person or service provider are so incomplete or
inaccurate that the Bureau is unable to determine the financial condition of
that person or the details or purpose of any transaction or transactions that
may have a material effect on the financial condition of that person, the
Bureau may issue a temporary order requiring—</text>
<clause id="H0320776A625C432E9BD2F14035B622FF"><enum>(i)</enum><text>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</text>
</clause><clause id="H1D0F4226D8304A3DB73C0802EEC04ECA"><enum>(ii)</enum><text>affirmative
action to restore such books or records to a complete and accurate state, until
the completion of the proceedings under subsection (b)(1).</text>
</clause></subparagraph><subparagraph id="H30A357FC27AB4D489B5DFC929694DB89"><enum>(B)</enum><header>Effective
period</header><text>Any temporary order issued under subparagraph (A)—</text>
<clause id="HCBB4B695C1C34504946DB5D2F48C2651"><enum>(i)</enum><text>shall become
effective upon service; and</text>
</clause><clause id="H98AA593AAB6A40008BCF605BBFF8A93B"><enum>(ii)</enum><text>unless set aside,
limited, or suspended by a court in proceedings under paragraph (2), shall
remain in effect and enforceable until the earlier of—</text>
<subclause id="H1AA7F3FA1FC8477C9BDC60301785E22E"><enum>(I)</enum><text>the completion of
the proceeding initiated under subsection (b) in connection with the notice of
charges; or</text>
</subclause><subclause id="H729E404786EB4912B23B42E759D70B64"><enum>(II)</enum><text>the date the
Bureau determines, by examination or otherwise, that the books and records of
the covered person or service provider are accurate and reflect the financial
condition thereof.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HF04C2A9A4E45483B8D900C1BC7808071"><enum>(d)</enum><header>Special rules
for enforcement of orders</header>
<paragraph id="H20A34978328F4906A21007608BA6214D"><enum>(1)</enum><header>In
general</header><text>The Bureau may in its discretion apply to the United
States district court within the jurisdiction of which the principal office or
place of business of the person is located, for the enforcement of any
effective and outstanding notice or order issued under this section, and such
court shall have jurisdiction and power to order and require compliance
herewith.</text>
</paragraph><paragraph id="HDD8038F6274E4B8DAC1C77603335F670"><enum>(2)</enum><header>Exception</header><text>Except
as otherwise provided in this subsection, no court shall have jurisdiction to
affect by injunction or otherwise the issuance or enforcement of any notice or
order or to review, modify, suspend, terminate, or set aside any such notice or
order.</text>
</paragraph></subsection><subsection id="H4490153AACEC418395DDB162CCBE408F"><enum>(e)</enum><header>Rules</header><text>The
Bureau shall prescribe rules establishing such procedures as may be necessary
to carry out this section.</text>
</subsection></section><section id="H8E60EB3CA5C24F0E9F79D41CC4C616C1"><enum>1054.</enum><header>Litigation
authority</header>
<subsection id="HE73CDA2241A04E409B22BC0362FC545A"><enum>(a)</enum><header>In
general</header><text>If any person violates a Federal consumer financial law,
the Bureau may, subject to sections 1024, 1025, and 1026, commence a civil
action against such person to impose a civil penalty or to seek all appropriate
legal and equitable relief including a permanent or temporary injunction as
permitted by law.</text>
</subsection><subsection id="H29B4AA5CDF82464497E01EAF9606ADB6"><enum>(b)</enum><header>Representation</header><text>The
Bureau may act in its own name and through its own attorneys in enforcing any
provision of this title, rules thereunder, or any other law or regulation, or
in any action, suit, or proceeding to which the Bureau is a party.</text>
</subsection><subsection id="H13014400981B4463A38AF3C4452320FB"><enum>(c)</enum><header>Compromise of
actions</header><text>The Bureau may compromise or settle any action if such
compromise is approved by the court.</text>
</subsection><subsection id="H86909E527E82406B94B52409E0B213E2"><enum>(d)</enum><header>Notice to the
attorney general</header>
<paragraph id="HA081E9D1052F4526ADF07765CF13D5A3"><enum>(1)</enum><header>In
general</header><text>When commencing a civil action under Federal consumer
financial law, or any rule thereunder, the Bureau shall notify the Attorney
General and, with respect to a civil action against an insured depository
institution or insured credit union, the appropriate prudential
regulator.</text>
</paragraph><paragraph id="H48C3F7CB3C144193AB85C0A5FE6A6CB2"><enum>(2)</enum><header>Notice and
coordination</header>
<subparagraph id="HD96D09EEC6074989A7487E2A67FBA378"><enum>(A)</enum><header>Notice of other
actions</header><text>In addition to any notice required under paragraph (1),
the Bureau shall notify the Attorney General concerning any action, suit, or
proceeding to which the Bureau is a party, except an action, suit, or
proceeding that involves the offering or provision of consumer financial
products or services.</text>
</subparagraph><subparagraph id="H1F0F7D6BBC0D4F05B613426C40021EEA"><enum>(B)</enum><header>Coordination</header><text>In
order to avoid conflicts and promote consistency regarding litigation of
matters under Federal law, the Attorney General and the Bureau shall consult
regarding the coordination of investigations and proceedings, including by
negotiating an agreement for coordination by not later than 180 days after the
designated transfer date. The agreement under this subparagraph shall include
provisions to ensure that parallel investigations and proceedings involving the
Federal consumer financial laws are conducted in a manner that avoids conflicts
and does not impede the ability of the Attorney General to prosecute violations
of Federal criminal laws.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA68447C803F74D4F84B06CFCD0DC7B0A"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in this paragraph shall be construed to
limit the authority of the Bureau under this title, including the authority to
interpret Federal consumer financial law.</text>
</subparagraph></paragraph></subsection><subsection id="H437A0A2835B944A3950DBAE805DA4C06"><enum>(e)</enum><header>Appearance
before the supreme court</header><text>The Bureau may represent itself in its
own name before the Supreme Court of the United States, provided that the
Bureau makes a written request to the Attorney General within the 10-day period
which begins on the date of entry of the judgment which would permit any party
to file a petition for writ of certiorari, and the Attorney General concurs
with such request or fails to take action within 60 days of the request of the
Bureau.</text>
</subsection><subsection id="H5A54302DEAF945168ECD8F3814A7B1B6"><enum>(f)</enum><header>Forum</header><text>Any
civil action brought under this title may be brought in a United States
district court or in any court of competent jurisdiction of a state in a
district in which the defendant is located or resides or is doing business, and
such court shall have jurisdiction to enjoin such person and to require
compliance with any Federal consumer financial law.</text>
</subsection><subsection id="HCCD1C2E8E03B4C11BE31D614885D4CBA"><enum>(g)</enum><header>Time for
bringing action</header>
<paragraph id="H8E385AF88DCB4A8DB52E97424945F1A9"><enum>(1)</enum><header>In
general</header><text>Except as otherwise permitted by law or equity, no action
may be brought under this title more than 3 years after the date of discovery
of the violation to which an action relates.</text>
</paragraph><paragraph id="HC9FA63D006704954894E8945BF0B3C67"><enum>(2)</enum><header>Limitations
under other Federal laws</header>
<subparagraph id="HE88F8E1D74614E258639EB679F914E4E"><enum>(A)</enum><header>In
general</header><text>An action arising under this title does not include
claims arising solely under enumerated consumer laws.</text>
</subparagraph><subparagraph id="H80470DD006A343AF8E54D6DC6D5F25B5"><enum>(B)</enum><header>Bureau
authority</header><text>In any action arising solely under an enumerated
consumer law, the Bureau may commence, defend, or intervene in the action in
accordance with the requirements of that provision of law, as
applicable.</text>
</subparagraph><subparagraph id="HB271EDA26CF94B17A0A3554E19BBF238"><enum>(C)</enum><header>Transferred
authority</header><text>In any action arising solely under laws for which
authorities were transferred under subtitles F and H, the Bureau may commence,
defend, or intervene in the action in accordance with the requirements of that
provision of law, as applicable.</text>
</subparagraph></paragraph></subsection></section><section id="HA82E464B20334EB48B7775E0C9490711"><enum>1055.</enum><header>Relief
available</header>
<subsection id="H7475BBE89F0A45159F6D62E2BAD3929F"><enum>(a)</enum><header>Administrative
proceedings or court actions</header>
<paragraph id="H53DE78D4EEAB48A8A0B4B5378CF8B8CE"><enum>(1)</enum><header>Jurisdiction</header><text>The
court (or the Bureau, as the case may be) in an action or adjudication
proceeding brought under Federal consumer financial law, shall have
jurisdiction to grant any appropriate legal or equitable relief with respect to
a violation of Federal consumer financial law, including a violation of a rule
or order prescribed under a Federal consumer financial law.</text>
</paragraph><paragraph id="HB8F32019DBD3410F8F2899E2DC7EF620"><enum>(2)</enum><header>Relief</header><text>Relief
under this section may include, without limitation—</text>
<subparagraph id="H1C21F357E9404BB1AEA5DDE862797A02"><enum>(A)</enum><text>rescission or
reformation of contracts;</text>
</subparagraph><subparagraph id="HBB626AA46EA6408D88EE7B02B7FB0317"><enum>(B)</enum><text>refund of moneys
or return of real property;</text>
</subparagraph><subparagraph id="H3CBEA3E919E744DA86DF9492156DA7BA"><enum>(C)</enum><text>restitution;</text>
</subparagraph><subparagraph id="H598173E41432493CA113EC4DF340CAC5"><enum>(D)</enum><text>disgorgement or
compensation for unjust enrichment;</text>
</subparagraph><subparagraph id="H6AEDE175C42A43DBB239E14FA250D343"><enum>(E)</enum><text>payment of damages
or other monetary relief;</text>
</subparagraph><subparagraph id="H2751F6BC2907408A9FAA8D82ABED1790"><enum>(F)</enum><text>public
notification regarding the violation, including the costs of
notification;</text>
</subparagraph><subparagraph id="HDB1A363FD7D64E82B1C9687CF7EB1209"><enum>(G)</enum><text>limits on the
activities or functions of the person; and</text>
</subparagraph><subparagraph id="HE9F49B887E0241B488342CA9280E68D2"><enum>(H)</enum><text>civil money
penalties, as set forth more fully in subsection (c).</text>
</subparagraph></paragraph><paragraph id="HD961792E96574143A3B548EB4D3B457F"><enum>(3)</enum><header>No exemplary or
punitive damages</header><text>Nothing in this subsection shall be construed as
authorizing the imposition of exemplary or punitive damages.</text>
</paragraph></subsection><subsection id="H4F54949D6F234FEC9AB751A29B022C6D"><enum>(b)</enum><header>Recovery of
costs</header><text>In any action brought by the Bureau, a State attorney
general, or any State regulator to enforce any Federal consumer financial law,
the Bureau, the State attorney general, or the State regulator may recover its
costs in connection with prosecuting such action if the Bureau, the State
attorney general, or the State regulator is the prevailing party in the
action.</text>
</subsection><subsection id="H24632CB967DF48BCBF196608A0BCD3BA"><enum>(c)</enum><header>Civil money
penalty in court and administrative actions</header>
<paragraph id="H24F4CF88F6654562ABD84CAE63058504"><enum>(1)</enum><header>In
general</header><text>Any person that violates, through any act or omission,
any provision of Federal consumer financial law shall forfeit and pay a civil
penalty pursuant to this subsection.</text>
</paragraph><paragraph id="H42FC5192EA0741B58DA27321E65BAECB"><enum>(2)</enum><header>Penalty
amounts</header>
<subparagraph id="HDD398A69C7174C8A85E979EA9D0B9AE5"><enum>(A)</enum><header>First
tier</header><text>For any violation of a law, rule, or final order or
condition imposed in writing by the Bureau, a civil penalty may not exceed
$5,000 for each day during which such violation or failure to pay
continues.</text>
</subparagraph><subparagraph id="H9876601AE15242EBA42F05EB397CA34A"><enum>(B)</enum><header>Second
tier</header><text>Notwithstanding paragraph (A), for any person that
recklessly engages in a violation of a Federal consumer financial law, a civil
penalty may not exceed $25,000 for each day during which such violation
continues.</text>
</subparagraph><subparagraph id="HA0A7434D79404FDF85828628BFB34ADB"><enum>(C)</enum><header>Third
tier</header><text>Notwithstanding subparagraphs (A) and (B), for any person
that knowingly violates a Federal consumer financial law, a civil penalty may
not exceed $1,000,000 for each day during which such violation
continues.</text>
</subparagraph></paragraph><paragraph id="HF229392279994063955A1581A062162F"><enum>(3)</enum><header>Mitigating
factors</header><text>In determining the amount of any penalty assessed under
paragraph (2), the Bureau or the court shall take into account the
appropriateness of the penalty with respect to—</text>
<subparagraph id="H269E9B7BB583456DA1A5343BB4CD02E8"><enum>(A)</enum><text>the size of
financial resources and good faith of the person charged;</text>
</subparagraph><subparagraph id="HE6AF71A0CA8A49CB9FFE072A5A67021D"><enum>(B)</enum><text>the gravity of the
violation or failure to pay;</text>
</subparagraph><subparagraph id="HF561283EC72E4CAB8BF5A35ADCAF1B16"><enum>(C)</enum><text>the severity of
the risks to or losses of the consumer, which may take into account the number
of products or services sold or provided;</text>
</subparagraph><subparagraph id="H78C783ACD9494CEEB1FD79C01203BA55"><enum>(D)</enum><text>the history of
previous violations; and</text>
</subparagraph><subparagraph id="H8236802FC8D84122B46168CE2745A3C1"><enum>(E)</enum><text>such other matters
as justice may require.</text>
</subparagraph></paragraph><paragraph id="HA0D49DC53B504DBC989D6E10884BA64E"><enum>(4)</enum><header>Authority to
modify or remit penalty</header><text>The Bureau may compromise, modify, or
remit any penalty which may be assessed or had already been assessed under
paragraph (2). The amount of such penalty, when finally determined, shall be
exclusive of any sums owed by the person to the United States in connection
with the costs of the proceeding, and may be deducted from any sums owing by
the United States to the person charged.</text>
</paragraph><paragraph id="HA58765C32BF44AA79A7347C02C5C4ACC"><enum>(5)</enum><header>Notice and
hearing</header><text>No civil penalty may be assessed under this subsection
with respect to a violation of any Federal consumer financial law,
unless—</text>
<subparagraph id="H6A9FEB783C3844288E1E2B88DF5ACCB2"><enum>(A)</enum><text>the Bureau gives
notice and an opportunity for a hearing to the person accused of the violation;
or</text>
</subparagraph><subparagraph id="H4FEE756B34E647CEBA7238E5872C213E"><enum>(B)</enum><text>the appropriate
court has ordered such assessment and entered judgment in favor of the
Bureau.</text>
</subparagraph></paragraph></subsection></section><section id="HAC834B93B1CC4ED0842332DA5ED91B3F"><enum>1056.</enum><header>Referrals for
criminal proceedings</header><text display-inline="no-display-inline">If the
Bureau obtains evidence that any person, domestic or foreign, has engaged in
conduct that may constitute a violation of Federal criminal law, the Bureau
shall transmit such evidence to the Attorney General of the United States, who
may institute criminal proceedings under appropriate law. Nothing in this
section affects any other authority of the Bureau to disclose
information.</text>
</section><section id="H57B7FCF5F42A4149A9765B946010FCC2"><enum>1057.</enum><header>Employee
protection</header>
<subsection id="H3F16F7C4EB324A72BB69104AB4272E8C"><enum>(a)</enum><header>In
general</header><text>No covered person or service provider shall terminate or
in any other way discriminate against, or cause to be terminated or
discriminated against, any covered employee or any authorized representative of
covered employees by reason of the fact that such employee or representative,
whether at the initiative of the employee or in the ordinary course of the
duties of the employee (or any person acting pursuant to a request of the
employee), has—</text>
<paragraph id="HF9179EADD5F84AE49D1C55D1418FDF42"><enum>(1)</enum><text>provided, caused
to be provided, or is about to provide or cause to be provided, information to
the employer, the Bureau, or any other State, local, or Federal, government
authority or law enforcement agency relating to any violation of, or any act or
omission that the employee reasonably believes to be a violation of, any
provision of this title or any other provision of law that is subject to the
jurisdiction of the Bureau, or any rule, order, standard, or prohibition
prescribed by the Bureau;</text>
</paragraph><paragraph id="HC11ABB6FB1894BE8B4D61097D00B98AC"><enum>(2)</enum><text>testified or will
testify in any proceeding resulting from the administration or enforcement of
any provision of this title or any other provision of law that is subject to
the jurisdiction of the Bureau, or any rule, order, standard, or prohibition
prescribed by the Bureau;</text>
</paragraph><paragraph id="H79DCD1461D5145AFB0734B5B92BC4159"><enum>(3)</enum><text>filed, instituted,
or caused to be filed or instituted any proceeding under any Federal consumer
financial law; or</text>
</paragraph><paragraph id="H1C35E8E99F85436CA9D1EEC5C01C826C"><enum>(4)</enum><text>objected to, or
refused to participate in, any activity, policy, practice, or assigned task
that the employee (or other such person) reasonably believed to be in violation
of any law, rule, order, standard, or prohibition, subject to the jurisdiction
of, or enforceable by, the Bureau.</text>
</paragraph></subsection><subsection id="H2B28EBAEE2AA4BF08D1EE21E7E9D358C"><enum>(b)</enum><header>Definition of
covered employee</header><text>For the purposes of this section, the term
<term>covered employee</term> means any individual performing tasks related to
the offering or provision of a consumer financial product or service.</text>
</subsection><subsection id="H39E4033D5E794A77B2B19F459F3CB364"><enum>(c)</enum><header>Procedures and
Timetables</header>
<paragraph id="HD0976273495244AC8C8A101B49326D4E"><enum>(1)</enum><header>Complaint</header>
<subparagraph id="HF46542A87698433DBF8D7F600FE46C8F"><enum>(A)</enum><header>In
general</header><text>A person who believes that he or she has been discharged
or otherwise discriminated against by any person in violation of subsection (a)
may, not later than 180 days after the date on which such alleged violation
occurs, file (or have any person file on his or her behalf) a complaint with
the Secretary of Labor alleging such discharge or discrimination and
identifying the person responsible for such act.</text>
</subparagraph><subparagraph id="H27F4E88565994F618955D9FD5FEA11D6"><enum>(B)</enum><header>Actions of
secretary of labor</header><text>Upon receipt of such a complaint, the
Secretary of Labor shall notify, in writing, the person named in the complaint
who is alleged to have committed the violation, of—</text>
<clause id="HFABE1404A78543E096DD2D3354601247"><enum>(i)</enum><text>the
filing of the complaint;</text>
</clause><clause id="HF2C03FFEF1684D4081486C09B4674FF1"><enum>(ii)</enum><text>the
allegations contained in the complaint;</text>
</clause><clause id="H0CDD6F3D7FE744E190E4C2CAE05DCDE8"><enum>(iii)</enum><text>the substance of
evidence supporting the complaint; and</text>
</clause><clause id="H359AEF0E35364FCABB9AD9575C2129FA"><enum>(iv)</enum><text>opportunities
that will be afforded to such person under paragraph (2).</text>
</clause></subparagraph></paragraph><paragraph id="H797B1510B7994D6ABCB9F77C6FC997FA"><enum>(2)</enum><header>Investigation by
Secretary of Labor</header>
<subparagraph id="H73028F14A1B042BE8EFAFFB7F0821242"><enum>(A)</enum><header>In
general</header><text>Not later than 60 days after the date of receipt of a
complaint filed under paragraph (1), and after affording the complainant and
the person named in the complaint who is alleged to have committed the
violation that is the basis for the complaint an opportunity to submit to the
Secretary of Labor a written response to the complaint and an opportunity to
meet with a representative of the Secretary of Labor to present statements from
witnesses, the Secretary of Labor shall—</text>
<clause id="H882629AFF6EA4A78AE6DC369C2BC5EC0"><enum>(i)</enum><text>initiate an
investigation and determine whether there is reasonable cause to believe that
the complaint has merit; and</text>
</clause><clause id="HE8D1E8B5D0F840C5B996D109D4FB5CBF"><enum>(ii)</enum><text>notify the
complainant and the person alleged to have committed the violation of
subsection (a), in writing, of such determination.</text>
</clause></subparagraph><subparagraph id="H83D857D5F1E047FA8DA9271DC185A3BB"><enum>(B)</enum><header>Notice of relief
available</header><text>If the Secretary of Labor concludes that there is
reasonable cause to believe that a violation of subsection (a) has occurred,
the Secretary of Labor shall, together with the notice under subparagraph
(A)(ii), issue a preliminary order providing the relief prescribed by paragraph
(4)(B).</text>
</subparagraph><subparagraph id="HD11705341B554AB28BE2F0647A22D99E"><enum>(C)</enum><header>Request for
hearing</header><text>Not later than 30 days after the date of receipt of
notification of a determination of the Secretary of Labor under this paragraph,
either the person alleged to have committed the violation or the complainant
may file objections to the findings or preliminary order, or both, and request
a hearing on the record. The filing of such objections shall not operate to
stay any reinstatement remedy contained in the preliminary order. Any such
hearing shall be conducted expeditiously, and if a hearing is not requested in
such 30-day period, the preliminary order shall be deemed a final order that is
not subject to judicial review.</text>
</subparagraph></paragraph><paragraph id="HBEA59503D9A6488C965B4C2D2AC43076"><enum>(3)</enum><header>Grounds for
determination of complaints</header>
<subparagraph id="HD214FB1ACDBD426D91CF16DD7F53BF5A"><enum>(A)</enum><header>In
general</header><text>The Secretary of Labor shall dismiss a complaint filed
under this subsection, and shall not conduct an investigation otherwise
required under paragraph (2), unless the complainant makes a prima facie
showing that any behavior described in paragraphs (1) through (4) of subsection
(a) was a contributing factor in the unfavorable personnel action alleged in
the complaint.</text>
</subparagraph><subparagraph id="HC4BDCA31434F4A84A711483C92D4CFFD"><enum>(B)</enum><header>Rebuttal
evidence</header><text>Notwithstanding a finding by the Secretary of Labor that
the complainant has made the showing required under subparagraph (A), no
investigation otherwise required under paragraph (2) shall be conducted, if the
employer demonstrates, by clear and convincing evidence, that the employer
would have taken the same unfavorable personnel action in the absence of that
behavior.</text>
</subparagraph><subparagraph id="H943A2CEFB8E0463482444BC156E29273"><enum>(C)</enum><header>Evidentiary
standards</header><text>The Secretary of Labor may determine that a violation
of subsection (a) has occurred only if the complainant demonstrates that any
behavior described in paragraphs (1) through (4) of subsection (a) was a
contributing factor in the unfavorable personnel action alleged in the
complaint. Relief may not be ordered under subparagraph (A) if the employer
demonstrates by clear and convincing evidence that the employer would have
taken the same unfavorable personnel action in the absence of that
behavior.</text>
</subparagraph></paragraph><paragraph id="H6543F8322802446090DD330CE4F9F782"><enum>(4)</enum><header>Issuance of
final orders; review procedures</header>
<subparagraph id="H5AFA24EF56EC44A38D50836F9823036C"><enum>(A)</enum><header>Timing</header><text>Not
later than 120 days after the date of conclusion of any hearing under paragraph
(2), the Secretary of Labor shall issue a final order providing the relief
prescribed by this paragraph or denying the complaint. At any time before
issuance of a final order, a proceeding under this subsection may be terminated
on the basis of a settlement agreement entered into by the Secretary of Labor,
the complainant, and the person alleged to have committed the violation.</text>
</subparagraph><subparagraph id="H0C26D0681240490CAEA60BA01E76A8A1"><enum>(B)</enum><header>Penalties</header>
<clause id="H4E4AE734C9CE4A6E89FDA95419245A81"><enum>(i)</enum><header>Order of
Secretary of labor</header><text>If, in response to a complaint filed under
paragraph (1), the Secretary of Labor determines that a violation of subsection
(a) has occurred, the Secretary of Labor shall order the person who committed
such violation—</text>
<subclause id="H07EF258312924C45A2494A4E0F91436B"><enum>(I)</enum><text>to take
affirmative action to abate the violation;</text>
</subclause><subclause id="H87C4AF7009D741D4B9239D562F3B1488"><enum>(II)</enum><text>to reinstate the
complainant to his or her former position, together with compensation
(including back pay) and restore the terms, conditions, and privileges
associated with his or her employment; and</text>
</subclause><subclause id="H1460C5F798854D2C8BC5B9D10FF62DC1"><enum>(III)</enum><text>to provide
compensatory damages to the complainant.</text>
</subclause></clause><clause id="H8B7BBFC052714BE880A97F68B6605D9A"><enum>(ii)</enum><header>Penalty</header><text>If
an order is issued under clause (i), the Secretary of Labor, at the request of
the complainant, shall assess against the person against whom the order is
issued, a sum equal to the aggregate amount of all costs and expenses
(including attorney fees and expert witness fees) reasonably incurred, as
determined by the Secretary of Labor, by the complainant for, or in connection
with, the bringing of the complaint upon which the order was issued.</text>
</clause></subparagraph><subparagraph id="HD7FE56EA135F413FB487EBF162B5FF63"><enum>(C)</enum><header>Penalty for
frivolous claims</header><text>If the Secretary of Labor finds that a complaint
under paragraph (1) is frivolous or has been brought in bad faith, the
Secretary of Labor may award to the prevailing employer a reasonable attorney
fee, not exceeding $1,000, to be paid by the complainant.</text>
</subparagraph><subparagraph id="HCEABA1877A2A432884E5D48B36277EB2"><enum>(D)</enum><header>De novo
review</header>
<clause id="H7A0F81A9EA6047EB93AD7FC811A5AF1D"><enum>(i)</enum><header>Failure of the
Secretary to act</header><text>If the Secretary of Labor has not issued a final
order within 210 days after the date of filing of a complaint under this
subsection, or within 90 days after the date of receipt of a written
determination, the complainant may bring an action at law or equity for de novo
review in the appropriate district court of the United States having
jurisdiction, which shall have jurisdiction over such an action without regard
to the amount in controversy, and which action shall, at the request of either
party to such action, be tried by the court with a jury.</text>
</clause><clause id="H75CBB7CB05D047499781F3165CF7C49E"><enum>(ii)</enum><header>Procedures</header><text>A
proceeding under clause (i) shall be governed by the same legal burdens of
proof specified in paragraph (3). The court shall have jurisdiction to grant
all relief necessary to make the employee whole, including injunctive relief
and compensatory damages, including—</text>
<subclause id="H2A608A9E4E464778A4C13EB97AD12614"><enum>(I)</enum><text>reinstatement with
the same seniority status that the employee would have had, but for the
discharge or discrimination;</text>
</subclause><subclause id="H18A4FCCB247C435CAFE580723F9557F3"><enum>(II)</enum><text>the amount of
back pay, with interest; and</text>
</subclause><subclause id="HAA4BF3E84BF94A28A8A1DA379C1EFD06"><enum>(III)</enum><text>compensation for
any special damages sustained as a result of the discharge or discrimination,
including litigation costs, expert witness fees, and reasonable attorney
fees.</text>
</subclause></clause></subparagraph><subparagraph id="HB06E88914EF641599125C46200CFB8F4"><enum>(E)</enum><header>Other
appeals</header><text>Unless the complainant brings an action under
subparagraph (D), any person adversely affected or aggrieved by a final order
issued under subparagraph (A) may file a petition for review of the order in
the United States Court of Appeals for the circuit in which the violation with
respect to which the order was issued, allegedly occurred or the circuit in
which the complainant resided on the date of such violation, not later than 60
days after the date of the issuance of the final order of the Secretary of
Labor under subparagraph (A). Review shall conform to chapter 7 of title 5,
United States Code. The commencement of proceedings under this subparagraph
shall not, unless ordered by the court, operate as a stay of the order. An
order of the Secretary of Labor with respect to which review could have been
obtained under this subparagraph shall not be subject to judicial review in any
criminal or other civil proceeding.</text>
</subparagraph></paragraph><paragraph id="H63A4608C71F34E75A7266ECFC5737D9C"><enum>(5)</enum><header>Failure to
comply with order</header>
<subparagraph id="HB2880031B13B4812AE660E6FAB38C512"><enum>(A)</enum><header>Actions by the
secretary</header><text>If any person has failed to comply with a final order
issued under paragraph (4), the Secretary of Labor may file a civil action in
the United States district court for the district in which the violation was
found to have occurred, or in the United States district court for the District
of Columbia, to enforce such order. In actions brought under this paragraph,
the district courts shall have jurisdiction to grant all appropriate relief
including injunctive relief and compensatory damages.</text>
</subparagraph><subparagraph id="H1DE509670F5A470686052ACC24262A97"><enum>(B)</enum><header>Civil actions to
compel compliance</header><text>A person on whose behalf an order was issued
under paragraph (4) may commence a civil action against the person to whom such
order was issued to require compliance with such order. The appropriate United
States district court shall have jurisdiction, without regard to the amount in
controversy or the citizenship of the parties, to enforce such order.</text>
</subparagraph><subparagraph id="H6D9CD8A683BD449E8CADB69883AAA2F6"><enum>(C)</enum><header>Award of costs
authorized</header><text>The court, in issuing any final order under this
paragraph, may award costs of litigation (including reasonable attorney and
expert witness fees) to any party, whenever the court determines such award is
appropriate.</text>
</subparagraph><subparagraph id="HFB424257454E441385C0F695AA78018D"><enum>(D)</enum><header>Mandamus
proceedings</header><text>Any nondiscretionary duty imposed by this section
shall be enforceable in a mandamus proceeding brought under section 1361 of
title 28, United States Code.</text>
</subparagraph></paragraph></subsection><subsection id="H4FB917C72B5E489FACDEC6E31D40018F"><enum>(d)</enum><header>Unenforceability
of certain agreements</header>
<paragraph id="H928F35713BE044D68479A4C5778ED55E"><enum>(1)</enum><header>No waiver of
rights and remedies</header><text>Except as provided under paragraph (3), and
notwithstanding any other provision of law, the rights and remedies provided
for in this section may not be waived by any agreement, policy, form, or
condition of employment, including by any predispute arbitration
agreement.</text>
</paragraph><paragraph id="HD2BC3027E9264B69BB64FAF9DBDBE15D"><enum>(2)</enum><header>No Predispute
arbitration agreements</header><text>Except as provided under paragraph (3),
and notwithstanding any other provision of law, no predispute arbitration
agreement shall be valid or enforceable to the extent that it requires
arbitration of a dispute arising under this section.</text>
</paragraph><paragraph id="H9FCD5BF8545E498AAFC5FB900A6D3DF9"><enum>(3)</enum><header>Exception</header><text>Notwithstanding
paragraphs (1) and (2), an arbitration provision in a collective bargaining
agreement shall be enforceable as to disputes arising under subsection (a)(4),
unless the Bureau determines, by rule, that such provision is inconsistent with
the purposes of this title.</text>
</paragraph></subsection></section><section id="H3CDB4297E79A4545A7728F1834CDA48A"><enum>1058.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall
become effective on the designated transfer date.</text>
</section></subtitle><subtitle id="H0A8D7F31C0844621B9796C089593D80D"><enum>F</enum><header>Transfer of
Functions and Personnel; Transitional Provisions</header>
<section id="H1780951817524C20B50AD1DCBA2CA823"><enum>1061.</enum><header>Transfer of
consumer financial protection functions</header>
<subsection id="HC203D4576B5F4AD990E6FA1CF1C81536"><enum>(a)</enum><header>Defined
terms</header><text>For purposes of this subtitle—</text>
<paragraph id="H29D87A3743914F95BB81D81665B6FFEB"><enum>(1)</enum><text>the term
<quote>consumer financial protection functions</quote> means—</text>
<subparagraph id="HB4FAF501FEAC48459387E45243EF60A7"><enum>(A)</enum><text>all authority to
prescribe rules or issue orders or guidelines pursuant to any Federal consumer
financial law, including performing appropriate functions to promulgate and
review such rules, orders, and guidelines; and</text>
</subparagraph><subparagraph id="H1D15C548D06F4F27A23E73AF5ADD32C1"><enum>(B)</enum><text>the examination
authority described in subsection (c)(1), with respect to a person described in
subsection 1025(a); and</text>
</subparagraph></paragraph><paragraph commented="no" id="H40A0744EF837452D9115096257AFC2CD"><enum>(2)</enum><text>the terms
<quote>transferor agency</quote> and <quote>transferor agencies</quote> mean,
respectively—</text>
<subparagraph commented="no" id="HE990898ACD2149E9BFD66EA5B81B0645"><enum>(A)</enum><text>the Board of
Governors (and any Federal reserve bank, as the context requires), the Federal
Deposit Insurance Corporation, the Federal Trade Commission, the National
Credit Union Administration, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, and the Department of Housing and Urban
Development, and the heads of those agencies; and</text>
</subparagraph><subparagraph commented="no" id="H5421107940FA4134983C068A4C7C5993"><enum>(B)</enum><text>the agencies
listed in subparagraph (A), collectively.</text>
</subparagraph></paragraph></subsection><subsection id="H779C025BF15E447AAD494C20689DC60E"><enum>(b)</enum><header>In
general</header><text>Except as provided in subsection (c), consumer financial
protection functions are transferred as follows:</text>
<paragraph id="H87FDA9B1A0804EEF9B78A21F47E61D2E"><enum>(1)</enum><header>Board of
governors</header>
<subparagraph id="H6A4CC16F4EA346EAAE157F1E29440720"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Board of Governors are transferred to the Bureau.</text>
</subparagraph><subparagraph id="HA1173A282EDB49559C95F165B503FBB0"><enum>(B)</enum><header>Board of
governors authority</header><text>The Bureau shall have all powers and duties
that were vested in the Board of Governors, relating to consumer financial
protection functions, on the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H77491F353F1145E9A527C6713699F1DC"><enum>(2)</enum><header>Comptroller of
the currency</header>
<subparagraph id="H32F68DD379F049B4A88C66E9C11E6763"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Comptroller of the Currency are transferred to the Bureau.</text>
</subparagraph><subparagraph id="H96403F1F40944F08B6437FC6A6D9B82D"><enum>(B)</enum><header>Comptroller
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Comptroller of the Currency, relating to consumer financial
protection functions, on the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H3C35A715CDC343A1A662490D2A713486"><enum>(3)</enum><header>Director of the
office of thrift supervision</header>
<subparagraph id="H1C270CC6E76F4533BE3B967056B17526"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Director of the Office of Thrift Supervision are transferred to the
Bureau.</text>
</subparagraph><subparagraph id="H17580CCB601E4DB9B8DA3F4C29B5A6A6"><enum>(B)</enum><header>Director
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Director of the Office of Thrift Supervision, relating to
consumer financial protection functions, on the day before the designated
transfer date.</text>
</subparagraph></paragraph><paragraph id="HF239AFE5999640FC887041DD52ECE51D"><enum>(4)</enum><header>Federal deposit
insurance corporation</header>
<subparagraph id="H5D191B4820CF4560B6DE21C6AE852C51"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Federal Deposit Insurance Corporation are transferred to the Bureau.</text>
</subparagraph><subparagraph id="H92CA5B8FC5BF4EAF852C3001D8C2F020"><enum>(B)</enum><header>Corporation
authority</header><text>The Bureau shall have all powers and duties that were
vested in the Federal Deposit Insurance Corporation, relating to consumer
financial protection functions, on the day before the designated transfer
date.</text>
</subparagraph></paragraph><paragraph id="H4667BA4F916E442C99B5BCDA349E7371"><enum>(5)</enum><header>Federal trade
commission</header>
<subparagraph id="H5EE33577552B4247B355E1E3760C94E7"><enum>(A)</enum><header>Transfer of
functions</header><text>The authority of the Federal Trade Commission under an
enumerated consumer law to prescribe rules, issue guidelines, or conduct a
study or issue a report mandated under such law shall be transferred to the
Bureau on the designated transfer date. Nothing in this title shall be
construed to require a mandatory transfer of any employee of the Federal Trade
Commission.</text>
</subparagraph><subparagraph id="HCD5FEF543CCA4341939E158BEC625435"><enum>(B)</enum><header>Bureau
authority</header>
<clause id="H0F42D572B0B94947AA0EE3BEDA454132"><enum>(i)</enum><header>In
general</header><text>The Bureau shall have all powers and duties under the
enumerated consumer laws to prescribe rules, issue guidelines, or to conduct
studies or issue reports mandated by such laws, that were vested in the Federal
Trade Commission on the day before the designated transfer date.</text>
</clause><clause id="H536BD96B7B484DACA279C530EC20B404"><enum>(ii)</enum><header>Federal Trade
Commission Act</header><text>Subject to subtitle B, the Bureau may enforce a
rule prescribed under the <act-name parsable-cite="FTCA">Federal Trade
Commission Act</act-name> by the Federal Trade Commission with respect to an
unfair or deceptive act or practice to the extent that such rule applies to a
covered person or service provider with respect to the offering or provision of
a consumer financial product or service as if it were a rule prescribed under
section 1031 of this title.</text>
</clause></subparagraph><subparagraph id="H54CD4EE78573419C8A90AAA177A44C03"><enum>(C)</enum><header>Authority of the
federal trade commission</header>
<clause id="H0BD387AA8A8E4221B8BA0E1CBE8D243E"><enum>(i)</enum><header>In
general</header><text>No provision of this title shall be construed as
modifying, limiting, or otherwise affecting the authority of the Federal Trade
Commission (including its authority with respect to affiliates described in
section 1025(a)(1)) under the <act-name parsable-cite="FTCA">Federal Trade
Commission Act</act-name> or any other law, other than the authority under an
enumerated consumer law to prescribe rules, issue official guidelines, or
conduct a study or issue a report mandated under such law.</text>
</clause><clause id="H61AF718977174C60BAA346F7F927560D"><enum>(ii)</enum><header>Commission
authority relating to rules prescribed by the bureau</header><text>Subject to
subtitle B, the Federal Trade Commission shall have authority to enforce under
the <act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name> (15
U.S.C. 41 et seq.) a rule prescribed by the Bureau under this title with
respect to a covered person subject to the jurisdiction of the Federal Trade
Commission under that Act, and a violation of such a rule by such a person
shall be treated as a violation of a rule issued under section 18 of that Act
(15 U.S.C. 57a) with respect to unfair or deceptive acts or practices.</text>
</clause></subparagraph><subparagraph id="H4BF42EE064DB46D1A852171513F11900"><enum>(D)</enum><header>Coordination</header><text>To
avoid duplication of or conflict between rules prescribed by the Bureau under
section 1031 of this title and the Federal Trade Commission under section
18(a)(1)(B) of the <act-name parsable-cite="FTCA">Federal Trade Commission
Act</act-name> that apply to a covered person or service provider with respect
to the offering or provision of consumer financial products or services, the
agencies shall negotiate an agreement with respect to rulemaking by each
agency, including consultation with the other agency prior to proposing a rule
and during the comment period.</text>
</subparagraph><subparagraph id="H168DA76945C848659F229C476C52A724"><enum>(E)</enum><header>Deference</header><text>No
provision of this title shall be construed as altering, limiting, expanding, or
otherwise affecting the deference that a court affords to the—</text>
<clause id="H3737461DC0504C3FB8A153210F7FCDF6"><enum>(i)</enum><text>Federal Trade
Commission in making determinations regarding the meaning or interpretation of
any provision of the <act-name parsable-cite="FTCA">Federal Trade Commission
Act</act-name>, or of any other Federal law for which the Commission has
authority to prescribe rules; or</text>
</clause><clause id="HF67D85A5E22149B09B7B68CAD8BC83D3"><enum>(ii)</enum><text>Bureau in making
determinations regarding the meaning or interpretation of any provision of a
Federal consumer financial law (other than any law described in clause
(i)).</text>
</clause></subparagraph></paragraph><paragraph id="H37C7BB9FD78B46EAA070EDCFF5CB8086"><enum>(6)</enum><header>National credit
union administration</header>
<subparagraph id="H8241796F6F634154B0B06E4DBCA39F7A"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
National Credit Union Administration are transferred to the Bureau.</text>
</subparagraph><subparagraph id="H85E33A34C0BF440D91F2622E7407826B"><enum>(B)</enum><header>National credit
union administration authority</header><text>The Bureau shall have all powers
and duties that were vested in the National Credit Union Administration,
relating to consumer financial protection functions, on the day before the
designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HF33BE96E9ECB413E99C59EDB731810CC"><enum>(7)</enum><header>Department of
housing and urban development</header>
<subparagraph id="HF715B24C969D4BA4BACE05C7A6406B37"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer protection functions of the Secretary of
the Department of Housing and Urban Development relating to the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.), the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5102 et seq.), and
the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701 et seq.) are
transferred to the Bureau.</text>
</subparagraph><subparagraph id="H9AC4DAA5DC87475A8F8EE895CBBF005C"><enum>(B)</enum><header>Authority of the
Department of housing and urban development</header><text>The Bureau shall have
all powers and duties that were vested in the Secretary of the Department of
Housing and Urban Development relating to the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2601 et seq.), the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.), and the Interstate
Land Sales Full Disclosure Act (15 U.S.C. 1701 et seq.), on the day before the
designated transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="H7A03D294D12C4927B7A85C84DD47BC2A"><enum>(c)</enum><header>Authorities of
the prudential regulators</header>
<paragraph id="HD06E4C9593664093AF9D97DC829FD477"><enum>(1)</enum><header>Examination</header><text>A
transferor agency that is a prudential regulator shall have—</text>
<subparagraph id="HB7D089ABE57642E1B2B078EA8EECC9F9"><enum>(A)</enum><text>authority to
require reports from and conduct examinations for compliance with Federal
consumer financial laws with respect to a person described in section 1025(a),
that is incidental to the backup and enforcement procedures provided to the
regulator under section 1025(c); and</text>
</subparagraph><subparagraph id="H3A543A43280C453DAAC69130B07430FD"><enum>(B)</enum><text>exclusive
authority (relative to the Bureau) to require reports from and conduct
examinations for compliance with Federal consumer financial laws with respect
to a person described in section 1026(a), except as provided to the Bureau
under subsections (b) and (c) of section 1026.</text>
</subparagraph></paragraph><paragraph id="H6BD3018941994FFCA7CB807CFC1C96D1"><enum>(2)</enum><header>Enforcement</header>
<subparagraph id="H878FB160E2D34C1CB8C750D47A18C1A6"><enum>(A)</enum><header>Limitation</header><text>The
authority of a transferor agency that is a prudential regulator to enforce
compliance with Federal consumer financial laws with respect to a person
described in section 1025(a), shall be limited to the backup and enforcement
procedures in described in section 1025(c).</text>
</subparagraph><subparagraph id="H671FE5CB1CC74A6A9143E2FBEEB1F02C"><enum>(B)</enum><header>Exclusive
authority</header><text>A transferor agency that is a prudential regulator
shall have exclusive authority (relative to the Bureau) to enforce compliance
with Federal consumer financial laws with respect to a person described in
section 1026(a), except as provided to the Bureau under subsections (b) and (c)
of section 1026.</text>
</subparagraph><subparagraph id="HF888D56D96044A77B935E9182EA6B308"><enum>(C)</enum><header>Statutory
enforcement</header><text>For purposes of carrying out the authorities under,
and subject to the limitations of, subtitle B, each prudential regulator may
enforce compliance with the requirements imposed under this title, and any rule
or order prescribed by the Bureau under this title, under—</text>
<clause id="HFCE608406B324F1585D7203B218EBE41"><enum>(i)</enum><text>the
Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the National Credit Union
Administration Board with respect to any covered person or service provider
that is an insured credit union, or service provider thereto, or any affiliate
of an insured credit union, who is subject to the jurisdiction of the Board
under that Act; and</text>
</clause><clause id="H7A4D94119FF1499A8D1806DE0BFF74CE"><enum>(ii)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), by 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 a covered person or service provider that
is a person described in section 3(q) of that Act and who is subject to the
jurisdiction of that agency, as set forth in sections 3(q) and 8 of the Federal
Deposit Insurance Act; or</text>
</clause><clause id="H72EA35CBB3214ABC82269E24C84C6991"><enum>(iii)</enum><text>the Bank Service
Company Act (12 U.S.C. 1861 et seq.).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H36F14DDB4C844F9EB8E790EFB5E7B7CF"><enum>(d)</enum><header>Effective
date</header><text>Subsections (b) and (c) shall become effective on the
designated transfer date.</text>
</subsection></section><section id="HB0A0D077076942D98D5CC783265B5715"><enum>1062.</enum><header>Designated
transfer date</header>
<subsection id="H15526A6997B746F68E6A29B658F19370"><enum>(a)</enum><header>In
general</header><text>Not later than 60 days after the date of enactment of
this Act, the Secretary shall—</text>
<paragraph id="H6C37134649844662A1AEEF3865637C65"><enum>(1)</enum><text>in consultation
with the Chairman of the Board of Governors, the Chairperson of the
Corporation, the Chairman of the Federal Trade Commission, the Chairman of the
National Credit Union Administration Board, the Comptroller of the Currency,
the Director of the Office of Thrift Supervision, the Secretary of the
Department of Housing and Urban Development, and the Director of the Office of
Management and Budget, designate a single calendar date for the transfer of
functions to the Bureau under section 1061; and</text>
</paragraph><paragraph id="HC8191A4B583F4ABFA97D8630A120DEA9"><enum>(2)</enum><text>publish notice of
that designated date in the Federal Register.</text>
</paragraph></subsection><subsection id="H06B5585EA7E74142ACD483CC11D809A6"><enum>(b)</enum><header>Changing
designation</header><text>The Secretary—</text>
<paragraph id="H8F15C1C82F0447BD851AF318442D5133"><enum>(1)</enum><text>may, in
consultation with the Chairman of the Board of Governors, the Chairperson of
the Federal Deposit Insurance Corporation, the Chairman of the Federal Trade
Commission, the Chairman of the National Credit Union Administration Board, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Secretary of the Department of Housing and Urban Development, and the
Director of the Office of Management and Budget, change the date designated
under subsection (a); and</text>
</paragraph><paragraph id="HDD61B64CCE6344B8922A7D3A99406AD1"><enum>(2)</enum><text>shall publish
notice of any changed designated date in the Federal Register.</text>
</paragraph></subsection><subsection id="HEC652E2C83E442E78EE9F9599624E838"><enum>(c)</enum><header>Permissible
dates</header>
<paragraph id="H08D3985ECE43491FAC66427847E1EDE3"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), any date designated
under this section shall be not earlier than 180 days, nor later than 12
months, after the date of enactment of this Act.</text>
</paragraph><paragraph id="HAD9041A7757948C9A8E5C96DDA63D695"><enum>(2)</enum><header>Extension of
time</header><text>The Secretary may designate a date that is later than 12
months after the date of enactment of this Act if the Secretary transmits to
appropriate committees of Congress—</text>
<subparagraph id="H45390172ED1B4131A1D779A5BB4744CB"><enum>(A)</enum><text>a written
determination that orderly implementation of this title is not feasible before
the date that is 12 months after the date of enactment of this Act;</text>
</subparagraph><subparagraph id="HB81E52DFA9634DC7AFEFF583F133D6EB"><enum>(B)</enum><text>an explanation of
why an extension is necessary for the orderly implementation of this title;
and</text>
</subparagraph><subparagraph id="HB80C3B231DE04E2A9E3C7A8E583BCFB1"><enum>(C)</enum><text>a description of
the steps that will be taken to effect an orderly and timely implementation of
this title within the extended time period.</text>
</subparagraph></paragraph><paragraph id="H73605ADCE41B4FC4B62B5852E547ABCD"><enum>(3)</enum><header>Extension
limited</header><text>In no case may any date designated under this section be
later than 18 months after the date of enactment of this Act.</text>
</paragraph></subsection></section><section id="H73287F1545194CC2A5794015BAEF991F"><enum>1063.</enum><header>Savings
provisions</header>
<subsection id="H597028676B0B45499F2CFADFB949B946"><enum>(a)</enum><header>Board of
governors</header>
<paragraph id="HDEE7752C8AC144DFB087A690E2BCA009"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(1) does not
affect the validity of any right, duty, or obligation of the United States, the
Board of Governors (or any Federal reserve bank), or any other person
that—</text>
<subparagraph id="H8664C6725B364EC1B981ABE8018A4C6B"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Board of Governors transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="HA56E9CF0131144A482C0A87F5365CB96"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H20E4C5A0BB554D9D8600371BF4BE0BDF"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Board of Governors (or any Federal reserve bank)
before the designated transfer date with respect to any consumer financial
protection function of the Board of Governors (or any Federal reserve bank)
transferred to the Bureau by this title, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the Board of Governors
(or Federal reserve bank) as a party to any such proceeding as of the
designated transfer date.</text>
</paragraph></subsection><subsection id="H6532CE1DF4084446ADBB36B9AF478D91"><enum>(b)</enum><header>Federal deposit
insurance corporation</header>
<paragraph id="HE829756C72EA4A9797A3E6D5F6133C6F"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(4) does not
affect the validity of any right, duty, or obligation of the United States, the
Federal Deposit Insurance Corporation, the Board of Directors of that
Corporation, or any other person, that—</text>
<subparagraph id="H6264EDDBEE874527B26743154E64940F"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Federal Deposit Insurance Corporation transferred to the Bureau by this title;
and</text>
</subparagraph><subparagraph id="H6D3C8CD26776469A9C62B63D97AF6234"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HEAE7B1DA8CE6402397D7F888D579BDFD"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Federal Deposit Insurance Corporation (or the Board
of Directors of that Corporation) before the designated transfer date with
respect to any consumer financial protection function of the Federal Deposit
Insurance Corporation transferred to the Bureau by this title, except that the
Bureau, subject to sections 1024, 1025, and 1026, shall be substituted for the
Federal Deposit Insurance Corporation (or Board of Directors) as a party to any
such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="HE5B1D799A7254501BF4B43AEF62ED82A"><enum>(c)</enum><header>Federal trade
commission</header><text display-inline="yes-display-inline">Section 1061(b)(5)
does not affect the validity of any right, duty, or obligation of the United
States, the Federal Trade Commission, or any other person, that—</text>
<paragraph id="H87B09EDA02D94443B1ACD299CD81EDB2"><enum>(1)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Federal Trade Commission transferred to the Bureau by this title; and</text>
</paragraph><paragraph id="H6784486572554E0BA4BBFE3B36645FDC"><enum>(2)</enum><text>existed on the day
before the designated transfer date.</text>
</paragraph></subsection><subsection id="H308BBD37B0CE4D958FCEDADF12A7A148"><enum>(d)</enum><header>National credit
union administration</header>
<paragraph id="HEEDA1A6081174DE58B45B265905D5B34"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(6) does not
affect the validity of any right, duty, or obligation of the United States, the
National Credit Union Administration, the National Credit Union Administration
Board, or any other person, that—</text>
<subparagraph id="H4835071ACF094B0B95C7D48E1925A026"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
National Credit Union Administration transferred to the Bureau by this title;
and</text>
</subparagraph><subparagraph id="HF7C2ACD6D4E742EA8A8D3B6A1F317874"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HB5CF71DE07B34C72BA481AE607DBCFF4"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the National Credit Union Administration (or the
National Credit Union Administration Board) before the designated transfer date
with respect to any consumer financial protection function of the National
Credit Union Administration transferred to the Bureau by this title, except
that the Bureau, subject to sections 1024, 1025, and 1026, shall be substituted
for the National Credit Union Administration (or National Credit Union
Administration Board) as a party to any such proceeding as of the designated
transfer date.</text>
</paragraph></subsection><subsection id="H5070753022D64178BA9571A4FC71E7BF"><enum>(e)</enum><header>Office of the
comptroller of the currency</header>
<paragraph id="H92303C1CDC1D47CC955B246DC7158E34"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(2) does not
affect the validity of any right, duty, or obligation of the United States, the
Comptroller of the Currency, the Office of the Comptroller of the Currency, or
any other person, that—</text>
<subparagraph id="H8F9D2703ECB34002AA589BD6BC7FE39B"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Comptroller of the Currency transferred to the Bureau by this title; and</text>
</subparagraph><subparagraph id="H17B947B8F3024E6182D7A72689A60A4A"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HFB77D289417B4501851DE3C090DAABA2"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Comptroller of the Currency (or the Office of the
Comptroller of the Currency) with respect to any consumer financial protection
function of the Comptroller of the Currency transferred to the Bureau by this
title before the designated transfer date, except that the Bureau, subject to
sections 1024, 1025, and 1026, shall be substituted for the Comptroller of the
Currency (or the Office of the Comptroller of the Currency) as a party to any
such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="HA33F5E7725A44DEC9918BAB435687F3B"><enum>(f)</enum><header>Office of thrift
supervision</header>
<paragraph id="H9AE7BA8D09F144379356E36A446615C7"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(3) does not
affect the validity of any right, duty, or obligation of the United States, the
Director of the Office of Thrift Supervision, the Office of Thrift Supervision,
or any other person, that—</text>
<subparagraph id="HB7B67CEA829D41078870E0292D490BF8"><enum>(A)</enum><text>arises under any
provision of law relating to any consumer financial protection function of the
Director of the Office of Thrift Supervision transferred to the Bureau by this
title; and</text>
</subparagraph><subparagraph id="H592AEA294D03466FB2108141143B94F5"><enum>(B)</enum><text>that existed on
the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H0C0D8335A29246A0B284440415F58D84"><enum>(2)</enum><header>Continuation of
suits</header><text>No provision of this Act shall abate any proceeding
commenced by or against the Director of the Office of Thrift Supervision (or
the Office of Thrift Supervision) with respect to any consumer financial
protection function of the Director of the Office of Thrift Supervision
transferred to the Bureau by this title before the designated transfer date,
except that the Bureau, subject to sections 1024, 1025, and 1026, shall be
substituted for the Director (or the Office of Thrift Supervision) as a party
to any such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="H9A429BDCB52A43DF94C3F0F910A9D209"><enum>(g)</enum><header>Department of
housing and urban development</header>
<paragraph id="HB22125E6531C468C8D06882113E55E41"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 1061(b)(7) shall not
affect the validity of any right, duty, or obligation of the United States, the
Secretary of the Department of Housing and Urban Development (or the Department
of Housing and Urban Development), or any other person, that—</text>
<subparagraph id="HF3EA0CA27F51442DB0BE8AEB78053EE3"><enum>(A)</enum><text>arises under any
provision of law relating to any function of the Secretary of the Department of
Housing and Urban Development with respect to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et seq.), the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5102 et seq.), or the
Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701 et seq) transferred
to the Bureau by this title; and</text>
</subparagraph><subparagraph id="H419F12DA97B344D0B74C1F7266711807"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HDFF1152D1D344D4C95CCB9CDECF9743F"><enum>(2)</enum><header>Continuation of
suits</header><text>This title shall not abate any proceeding commenced by or
against the Secretary of the Department of Housing and Urban Development (or
the Department of Housing and Urban Development) with respect to any consumer
financial protection function of the Secretary of the Department of Housing and
Urban Development transferred to the Bureau by this title before the designated
transfer date, except that the Bureau, subject to sections 1024, 1025, and
1026, shall be substituted for the Secretary of the Department of Housing and
Urban Development (or the Department of Housing and Urban Development) as a
party to any such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="H7DE9C539F3134C888EE5AB34D789BCAC"><enum>(h)</enum><header>Continuation of
existing orders, rulings, determinations, agreements, and resolutions</header>
<paragraph id="HD59490BFC0CB4C05B7E6B47D6E5BD073"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2) and under subsection
(i), all orders, resolutions, determinations, agreements, and rulings that have
been issued, made, prescribed, or allowed to become effective by any transferor
agency or by a court of competent jurisdiction, in the performance of consumer
financial protection functions that are transferred by this title and that are
in effect on the day before the designated transfer date, shall continue in
effect, and shall continue to be enforceable by the appropriate transferor
agency, according to the terms of those orders, resolutions, determinations,
agreements, and rulings, and shall not be enforceable by or against the
Bureau.</text>
</paragraph><paragraph id="HA2DCD3FF096B483A9CDDEEFC9D5B692F"><enum>(2)</enum><header>Exception for
orders applicable to persons described in Section
<enum-in-header>1025(a)</enum-in-header></header><text>All orders, resolutions,
determinations, agreements, and rulings that have been issued, made,
prescribed, or allowed to become effective by any transferor agency or by a
court of competent jurisdiction, in the performance of consumer financial
protection functions that are transferred by this title and that are in effect
on the day before the designated transfer date with respect to any person
described in section 1025(a), shall continue in effect, according to the terms
of those orders, resolutions, determinations, agreements, and rulings, and
shall be enforceable by or against the Bureau or transferor agency.</text>
</paragraph></subsection><subsection id="H70147F19A486453F82A66619EFD48BF8"><enum>(i)</enum><header>Identification
of rules and orders continued</header><text>Not later than the designated
transfer date, the Bureau—</text>
<paragraph id="H5D9B174143944B9DACF732460D4E31A1"><enum>(1)</enum><text>shall, after
consultation with the head of each transferor agency, identify the rules and
orders that will be enforced by the Bureau; and</text>
</paragraph><paragraph id="HD7D0945E7D2C44B2BB82F004FD05206D"><enum>(2)</enum><text>shall publish a
list of such rules and orders in the Federal Register.</text>
</paragraph></subsection><subsection id="H8425DB970EF342E9B2D2B52F9CD91FA7"><enum>(j)</enum><header>Status of rules
proposed or not yet effective</header>
<paragraph id="H7D8DE7B62FE0490282BF125400EB7069"><enum>(1)</enum><header>Proposed
rules</header><text>Any proposed rule of a transferor agency which that agency,
in performing consumer financial protection functions transferred by this
title, has proposed before the designated transfer date, but has not been
published as a final rule before that date, shall be deemed to be a proposed
rule of the Bureau.</text>
</paragraph><paragraph id="HD77C8603FCD54363A497D78A8DE2BD85"><enum>(2)</enum><header>Rules not yet
effective</header><text>Any interim or final rule of a transferor agency which
that agency, in performing consumer financial protection functions transferred
by this title, has published before the designated transfer date, but which has
not become effective before that date, shall become effective as a rule of the
Bureau according to its terms.</text>
</paragraph></subsection></section><section id="H35C99DDA1EC04897820224F4986458FD"><enum>1064.</enum><header>Transfer of
certain personnel</header>
<subsection id="H2F938EBCA886467DADBB17A858C3DEF8"><enum>(a)</enum><header>In
general</header>
<paragraph id="H7D18C6B5AFFE48A9A96FBD97C0129F56"><enum>(1)</enum><header>Certain Federal
reserve system employees transferred</header>
<subparagraph id="H832D3C4B79A04BF683B9FB95DD8CF064"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Board of Governors
shall—</text>
<clause id="H7300CFDF6CEF4F358D067B5637674571"><enum>(i)</enum><text>jointly determine
the number of employees of the Board of Governors necessary to perform or
support the consumer financial protection functions of the Board of Governors
that are transferred to the Bureau by this title; and</text>
</clause><clause id="H4316D154D02B465496CC68462FD96446"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the Board
of Governors for transfer to the Bureau, in a manner that the Bureau and the
Board of Governors, in their sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="H058009D21565431E807461EA868748DF"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Board of Governors
identified under subparagraph (A)(ii) shall be transferred to the Bureau for
employment.</text>
</subparagraph><subparagraph id="H1BB9D4EB543A4A0594CC7816D1FA038F"><enum>(C)</enum><header>Federal reserve
bank employees</header><text>Employees of any Federal reserve bank who are
performing consumer financial protection functions on behalf of the Board of
Governors shall be treated as employees of the Board of Governors for purposes
of subparagraphs (A) and (B).</text>
</subparagraph></paragraph><paragraph id="HF38DF9BF59B24FE090DC66D7429603D5"><enum>(2)</enum><header>Certain fdic
employees transferred</header>
<subparagraph id="HA745008C4A654286965C34C1A14595F9"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Board of Directors of
the Federal Deposit Insurance Corporation shall—</text>
<clause id="H5D6E0C648BBA4AF189DC1C2E535A7E6C"><enum>(i)</enum><text>jointly determine
the number of employees of that Corporation necessary to perform or support the
consumer financial protection functions of the Corporation that are transferred
to the Bureau by this title; and</text>
</clause><clause id="HB65063E57EC14E92A519080059D0D7CD"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Corporation for transfer to the Bureau, in a manner that the Bureau and the
Board of Directors of the Corporation, in their sole discretion, determine
equitable.</text>
</clause></subparagraph><subparagraph id="H9DD5462EB028481DA15F7FA85B643994"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Corporation identified
under subparagraph (A)(ii) shall be transferred to the Bureau for
employment.</text>
</subparagraph></paragraph><paragraph id="H37B669D851904CE98CE82B529C55F115"><enum>(3)</enum><header>Certain ncua
employees transferred</header>
<subparagraph id="H05F9691B58294BBF9EF8DF73564FB73C"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the National Credit Union
Administration Board shall—</text>
<clause id="H58F82A6C8EAC4E348C939EB95E2404D6"><enum>(i)</enum><text>jointly determine
the number of employees of the National Credit Union Administration necessary
to perform or support the consumer financial protection functions of the
National Credit Union Administration that are transferred to the Bureau by this
title; and</text>
</clause><clause id="H0948328B6B774FEB9210A9D26B085EB3"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
National Credit Union Administration for transfer to the Bureau, in a manner
that the Bureau and the National Credit Union Administration Board, in their
sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="H76ADC559E1B64EE29E4642F2D7A5B0CE"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the National Credit Union
Administration identified under subparagraph (A)(ii) shall be transferred to
the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="HD318EF7917CB414381B03C163F5A09CF"><enum>(4)</enum><header>Certain Office
of the Comptroller of the Currency Employees Transferred</header>
<subparagraph id="H24142E7E21824BB2922EB86893A2C46D"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Comptroller of the
Currency shall—</text>
<clause id="H98D01D8D1D2841E6A8F0AFB027AEB12E"><enum>(i)</enum><text>jointly determine
the number of employees of the Office of the Comptroller of the Currency
necessary to perform or support the consumer financial protection functions of
the Office of the Comptroller of the Currency that are transferred to the
Bureau by this title; and</text>
</clause><clause id="H14366E24076E4E90B09FBB4CFAFFFC0E"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Office of the Comptroller of the Currency for transfer to the Bureau, in a
manner that the Bureau and the Office of the Comptroller of the Currency, in
their sole discretion, determine equitable.</text>
</clause></subparagraph><subparagraph id="HF1993172D47D47FFADC6B39B222540A2"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Office of the
Comptroller of the Currency identified under subparagraph (A)(ii) shall be
transferred to the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="H733F7D8F50314B1C9617BAD56F07614B"><enum>(5)</enum><header>Certain Office
of Thrift Supervision Employees Transferred</header>
<subparagraph id="HD536845D735042F5BCF735EE87123AD5"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Director of the Office
of Thrift Supervision shall—</text>
<clause id="H830CE6FC963F49B5841B9FF8E16472BC"><enum>(i)</enum><text>jointly determine
the number of employees of the Office of Thrift Supervision necessary to
perform or support the consumer financial protection functions of the Office of
Thrift Supervision that are transferred to the Bureau by this title; and</text>
</clause><clause id="HD56FA7180581466A8C644ECA58296657"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Office of Thrift Supervision for transfer to the Bureau, in a manner that the
Bureau and the Office of Thrift Supervision, in their sole discretion,
determine equitable.</text>
</clause></subparagraph><subparagraph id="HEBB586B190274951AC31F8831D733CC7"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Office of Thrift
Supervision identified under subparagraph (A)(ii) shall be transferred to the
Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="H0A37AE0BA375482195854818A440F186"><enum>(6)</enum><header>Certain
employees of department of housing and urban development transferred</header>
<subparagraph id="HA52B9128238146F7B79A2A0CCA81135C"><enum>(A)</enum><header>Identifying
employees for transfer</header><text>The Bureau and the Secretary of the
Department of Housing and Urban Development shall—</text>
<clause id="H0E0C136366DB4569A9F601E3D32508E0"><enum>(i)</enum><text>jointly determine
the number of employees of the Department of Housing and Urban Development
necessary to perform or support the consumer protection functions of the
Department that are transferred to the Bureau by this title; and</text>
</clause><clause id="HDF9CA7C00CA44057AABF21D4D2B08515"><enum>(ii)</enum><text>consistent with
the number determined under clause (i), jointly identify employees of the
Department of Housing and Urban Development for transfer to the Bureau in a
manner that the Bureau and the Secretary of the Department of Housing and Urban
Development, in their sole discretion, deem equitable.</text>
</clause></subparagraph><subparagraph id="H1FC49FE1FAF346468F59A20833C0E9F7"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Department of Housing
and Urban Development identified under subparagraph (A)(ii) shall be
transferred to the Bureau for employment.</text>
</subparagraph></paragraph><paragraph id="HF9F321A3173040B0AEA54D85917D6E3E"><enum>(7)</enum><header>Consumer
education, financial literacy, consumer complaints, and research
functions</header><text>The Bureau and each of the transferor agencies (except
the Federal Trade Commission) shall jointly determine the number of employees
and the types and grades of employees necessary to perform the functions of the
Bureau under subtitle A, including consumer education, financial literacy,
policy analysis, responses to consumer complaints and inquiries, research, and
similar functions. All employees jointly identified under this paragraph shall
be transferred to the Bureau for employment.</text>
</paragraph><paragraph id="H07F429E90A73450FBCBA27743E151FA3"><enum>(8)</enum><header>Authority of the
president to resolve disputes</header>
<subparagraph id="HA2FAF5F7476B4006BCC563A0D896CBC9"><enum>(A)</enum><header>Action
authorized</header><text>In the event that the Bureau and a transferor agency
are unable to reach an agreement under paragraphs (1) through (7) by the
designated transfer date, the President, or the designee thereof, may issue an
order or directive to the transferor agency to effect the transfer of personnel
and property under this subtitle.</text>
</subparagraph><subparagraph id="H486137A5CF38468C8C267089125BA77B"><enum>(B)</enum><header>Transmittal to
congress required</header><text>If an order or directive is issued under
subparagraph (A), the President shall transmit a copy of the written
determination made with respect to such order or directive, including an
explanation for the need for the order or directive, to the Committee on
Banking, Housing, and Urban Affairs and the Committee on Appropriations of the
Senate and the Committee on Financial Services and the Committee on
Appropriations of the House of Representatives.</text>
</subparagraph><subparagraph id="H07A014DEF1C6427B8C6F72859F4CCCBB"><enum>(C)</enum><header>Sunset</header><text>The
authority provided in this paragraph shall terminate 3 years after the
designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H4B46EBDB75F34262A380D9C06220296B"><enum>(9)</enum><header>Appointment
authority for excepted service and senior executive service
transferred</header>
<subparagraph id="H2CBD27608B994F898112D2B93583BA02"><enum>(A)</enum><header>In
general</header><text>In the case of an employee occupying a position in the
excepted service or the Senior Executive Service, any appointment authority
established pursuant to law or regulations of the Office of Personnel
Management for filling such positions shall be transferred, subject to
subparagraph (B).</text>
</subparagraph><subparagraph id="H8E5F92B324284B17B9A4E1521EEDEEE8"><enum>(B)</enum><header>Declining
transfers allowed</header><text>An agency or entity may decline to make a
transfer of authority under subparagraph (A) (and the employees appointed
pursuant thereto) to the extent that such authority relates to positions
excepted from the competitive service because of their confidential,
policy-making, policy-determining, or policy-advocating character, and
non-career positions in the Senior Executive Service (within the meaning of
section 3132(a)(7) of title 5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection id="H3D175DBA28E54CA09E2753C589534991"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under this section shall—</text>
<paragraph id="H0F6F909084A54B6EBDB831025ED49C12"><enum>(1)</enum><text>be transferred not
later than 90 days after the designated transfer date; and</text>
</paragraph><paragraph id="H7F5236420B3642C0B0EE693453C1B34E"><enum>(2)</enum><text>receive notice of
a position assignment not later than 120 days after the effective date of his
or her transfer.</text>
</paragraph></subsection><subsection id="H7852596747C84F279D65030ABA779F85"><enum>(c)</enum><header>Transfer of
function</header>
<paragraph id="H3919C79F8F764553BAAEE5DAB88B0CA9"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the transfer
of employees shall be deemed a transfer of functions for the purpose of section
3503 of title 5, United States Code.</text>
</paragraph><paragraph id="HF4E0F0EF6E4049BA9D5540AABCB67093"><enum>(2)</enum><header>Priority of this
title</header><text>If any provisions of this title conflict with any
protection provided to transferred employees under section 3503 of title 5,
United States Code, the provisions of this title shall control.</text>
</paragraph></subsection><subsection id="HB8B067DCFA4C4416B5821A715A55CE14"><enum>(d)</enum><header>Equal status and
tenure positions</header>
<paragraph id="H98ED6F12B9294D6B99EC4B1BE44FB378"><enum>(1)</enum><header>Employees
transferred from the Federal Reserve System, FDIC, HUD, NCUA, OCC, and
OTS</header><text>Each employee transferred to the Bureau from the Board of
Governors, a Federal reserve bank, the Federal Deposit Insurance Corporation,
the Department of Housing and Urban Development, the National Credit Union
Administration, the Office of the Comptroller of the Currency, or the Office of
Thrift Supervision shall be placed in a position at the Bureau with the same
status and tenure as that employee held on the day before the designated
transfer date.</text>
</paragraph><paragraph id="H4B01BB81608B45AE8CF6EF73C24D674B"><enum>(2)</enum><header>Employees
transferred from the Federal Reserve System</header><text>For purposes of
determining the status and position placement of a transferred employee, any
period of service with the Board of Governors or a Federal reserve bank shall
be credited as a period of service with a Federal agency.</text>
</paragraph></subsection><subsection id="HCC4F889587934A41A994C62CA003C361"><enum>(e)</enum><header>Additional
certification requirements limited</header><text>Examiners transferred to the
Bureau are not subject to any additional certification requirements before
being placed in a comparable examiner position at the Bureau examining the same
types of institutions as they examined before they were transferred.</text>
</subsection><subsection id="H586269C7DD994C2E8EC6AF930F98A8D1"><enum>(f)</enum><header>Personnel
actions limited</header>
<paragraph id="H1EB81CF489DC46E89E0500C11323D813"><enum>(1)</enum><header>2-Year
protection</header><text>Except as provided in paragraph (2), each transferred
employee holding a permanent position on the day before the designated transfer
date may not, during the 2-year period beginning on the designated transfer
date, be involuntarily separated, or involuntarily reassigned outside his or
her locality pay area.</text>
</paragraph><paragraph id="H486B6F259ABC4F769D7AB17259817AD7"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not limit the right of the Bureau—</text>
<subparagraph id="H4D0ABFD72DBF4E4BA9BF71187AD9210E"><enum>(A)</enum><text>to separate an
employee for cause or for unacceptable performance;</text>
</subparagraph><subparagraph id="H9EE892D9B9D04327AD79E6BB1A0BBF41"><enum>(B)</enum><text>to terminate an
appointment to a position excepted from the competitive service because of its
confidential policy-making, policy-determining, or policy-advocating character;
or</text>
</subparagraph><subparagraph id="H5C0FCF503C334E23ACA5A602CDC77683"><enum>(C)</enum><text>to reassign a
supervisory employee outside of his or her locality pay area when the Bureau
determines that the reassignment is necessary for the efficient operation of
the Bureau.</text>
</subparagraph></paragraph></subsection><subsection id="HEA95263A5A4D41CD8B282F5DFAF55651"><enum>(g)</enum><header>Pay</header>
<paragraph id="H2CD4961703D740B99049CF444A720CB3"><enum>(1)</enum><header>2-Year
protection</header>
<subparagraph id="HD35E28CBA808471EA7743AD0C4030B7E"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (2), each transferred
employee shall, during the 2-year period beginning on the designated transfer
date, receive pay at a rate equal to not less than the basic rate of pay
(including any geographic differential) that the employee received during the
pay period immediately preceding the date of transfer.</text>
</subparagraph><subparagraph id="H5D59D4C7BA7340059CF41B187C52F1A6"><enum>(B)</enum><header>Limitation</header><text>Notwithstanding
subparagraph (A), if the employee was receiving a higher rate of basic pay on a
temporary basis (because of a temporary assignment, temporary promotion, or
other temporary action) immediately before the date of transfer, the Bureau may
reduce the rate of basic pay on the date on which the rate would have been
reduced but for the transfer, and the protected rate for the remainder of the
2-year period shall be the reduced rate that would have applied, but for the
transfer.</text>
</subparagraph></paragraph><paragraph id="H813CAC4C74DE412DB859226DF6AA10DC"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not limit the right of the Bureau to reduce the rate of basic pay of a
transferred employee—</text>
<subparagraph id="H73F7BDC6D45C4A87BB2EEBC417984902"><enum>(A)</enum><text>for cause;</text>
</subparagraph><subparagraph id="HB067F2BB9D14479E96B9DDDFDA474014"><enum>(B)</enum><text>for unacceptable
performance; or</text>
</subparagraph><subparagraph id="H1DFB7100C45A473AA105F9D8449B2038"><enum>(C)</enum><text>with the consent
of the employee.</text>
</subparagraph></paragraph><paragraph id="HBCA0B2BE62154B829E550F85A2EA67C6"><enum>(3)</enum><header>Protection only
while employed</header><text>Paragraph (1) applies to a transferred employee
only while that employee remains employed by the Bureau.</text>
</paragraph><paragraph id="HC486B6E88DBE49688703BFB60373B92B"><enum>(4)</enum><header>Pay increases
permitted</header><text>Paragraph (1) does not limit the authority of the
Bureau to increase the pay of a transferred employee.</text>
</paragraph></subsection><subsection id="HF2BC343F01BA413CA7457E18FB4A6659"><enum>(h)</enum><header>Reorganization</header>
<paragraph id="H675C4F7BB01A4A1D93182D47D4ECCAE5"><enum>(1)</enum><header>Between 1st and
3rd year</header>
<subparagraph id="H76A2A143516B4A5C9C440C26551C00A2"><enum>(A)</enum><header>In
general</header><text>If the Bureau determines, during the 2-year period
beginning 1 year after the designated transfer date, that a reorganization of
the staff of the Bureau is required—</text>
<clause id="H783AD57C607D4CACA93AF2DE4BCACAD5"><enum>(i)</enum><text>that
reorganization shall be deemed a <quote>substantial reorganization</quote> for
purposes of affording affected employees retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code;</text>
</clause><clause id="H3C7D7DEBC0954AABAAD52CC364618D17"><enum>(ii)</enum><text>before the
reorganization occurs, all employees in the same locality pay area as defined
by the Office of Personnel Management shall be placed in a uniform position
classification system; and</text>
</clause><clause id="H5C0CEBD833054CD0B5D774B83A61451F"><enum>(iii)</enum><text>any resulting
reduction in force shall be governed by the provisions of chapter 35 of title
5, United States Code, except that the Bureau shall—</text>
<subclause id="HB89B9CEBDBA946D093F91B569FF78189"><enum>(I)</enum><text>establish
competitive areas (as that term is defined in regulations issued by the Office
of Personnel Management) to include at a minimum all employees in the same
locality pay area as defined by the Office of Personnel Management;</text>
</subclause><subclause id="H7CC98BE8FE7146DC8707F43F81DDB305"><enum>(II)</enum><text>establish
competitive levels (as that term is defined in regulations issued by the Office
of Personnel Management) without regard to whether the particular employees
have been appointed to positions in the competitive service or the excepted
service; and</text>
</subclause><subclause id="H5B80DFE2F21A4688B76B04712C711500"><enum>(III)</enum><text>afford employees
appointed to positions in the excepted service (other than to a position
excepted from the competitive service because of its confidential
policy-making, policy-determining, or policy-advocating character) the same
assignment rights to positions within the Bureau as employees appointed to
positions in the competitive service.</text>
</subclause></clause></subparagraph><subparagraph id="HC5F341261DD44E71AE9ABB42912487D5"><enum>(B)</enum><header>Service credit
for reductions in force</header><text>For purposes of this paragraph, periods
of service with a Federal home loan bank, a joint office of the Federal home
loan banks, the Board of Governors, a Federal reserve bank, the Federal Deposit
Insurance Corporation, or the National Credit Union Administration shall be
credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph><paragraph id="HB881B66EE91942BABB01D9EF06F6CF43"><enum>(2)</enum><header>After 3rd
year</header>
<subparagraph id="H9D66F101DA3946DAAFA06EB397A7CC44"><enum>(A)</enum><header>In
general</header><text>If the Bureau determines, at any time after the 3-year
period beginning on the designated transfer date, that a reorganization of the
staff of the Bureau is required, any resulting reduction in force shall be
governed by the provisions of chapter 35 of title 5, United States Code, except
that the Bureau shall establish competitive levels (as that term is defined in
regulations issued by the Office of Personnel Management) without regard to
types of appointment held by particular employees transferred under this
section.</text>
</subparagraph><subparagraph id="HAFAE1981555D4D2AB9AC2337F21A6955"><enum>(B)</enum><header>Service credit
for reductions in force</header><text>For purposes of this paragraph, periods
of service with a Federal home loan bank, a joint office of the Federal home
loan banks, the Board of Governors, a Federal reserve bank, the Federal Deposit
Insurance Corporation, or the National Credit Union Administration shall be
credited as periods of service with a Federal agency.</text>
</subparagraph></paragraph></subsection><subsection id="H3C0BDC2B41344FB5BDBCFFE5A53A9301"><enum>(i)</enum><header>Benefits</header>
<paragraph id="HE9FC8DC8238E4EF5A0864871C7A9F5BA"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="HE0B17D7CD479476F946B8A3DC915164F"><enum>(A)</enum><header>In
General</header>
<clause id="HEC0209A3FA8F4A539A4735C0A8329C3A"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text>Unless an election is made under clause
(iii) or subparagraph (B), each employee transferred pursuant to this subtitle
shall remain enrolled in the existing retirement plan of that employee as of
the date of transfer, through any period of continuous employment with the
Bureau.</text>
</clause><clause id="HDB40A176A4A54AFA8FA2D60CCA1DB5E0"><enum>(ii)</enum><header>Employer
contribution</header><text>The Bureau shall pay any employer contributions to
the existing retirement plan of each transferred employee, as required under
that plan.</text>
</clause><clause id="H90C13F2BDBE6434F8A0F60538D08CADD"><enum>(iii)</enum><header>Option to
elect into the Federal Reserve System retirement plan and Federal Reserve
System thrift plan</header><text>Any employee transferred pursuant to this
subtitle may, during the 1-year period beginning 6 months after the designated
transfer date, elect to end their participation and benefit accruals under
their existing retirement plan or plans and elect to participate in both the
Federal Reserve System Retirement Plan and the Federal Reserve System Thrift
Plan, through any period of continuous employment with the Bureau, under the
same terms as are applicable to Federal Reserve System transferred employees,
as provided in subparagraph (C). An election of coverage by the Federal Reserve
System Retirement Plan and the Federal Reserve System Thrift Plan shall begin
on the day following the end of the 18-month period beginning on the designated
transfer date, and benefit accruals under the existing retirement plan of the
transferred employee shall end on the last day of the 18-month period beginning
on the designated transfer date If an employee elects to participate in the
Federal Reserve System Retirement Plan and the Federal Reserve System Thrift
Plan, all of the service of the employee that was creditable under their
existing retirement plan shall be transferred to the Federal Reserve System
Retirement Plan on the day following the end of the 18-month period beginning
on the designated transfer date.</text>
</clause><clause id="H266B69372D5F4DB2894F5326434D5C33"><enum>(iv)</enum><header>Bureau
contribution</header><text>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 under this subparagraph. 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 the Federal Reserve
System Thrift Plan.</text>
</clause><clause id="H02F90F8730944DD593D0798C84FA1B97"><enum>(v)</enum><header>Additional
funding</header><text>The Bureau shall transfer to the Federal Reserve System
Retirement Plan an amount determined by the Board of Governors, in consultation
with the Bureau, to be necessary to reimburse the Federal Reserve System
Retirement Plan for the costs to such plan of providing benefits to employees
electing coverage under the Federal Reserve System Retirement Plan under
subparagraph (iii), and who were transferred to the Bureau from outside of the
Federal Reserve System.</text>
</clause><clause id="H702ACF50AD544E7A969D22B3A39BD2DD"><enum>(vi)</enum><header>Option to elect
into thrift plan created by the bureau</header><text>If the Bureau chooses to
establish a thrift plan, the employees transferred pursuant to this subtitle
shall have the option to elect, under such terms and conditions as the Bureau
may establish, coverage under such a thrift plan established by the Bureau.
Transferred employees may not remain in the thrift plan of the agency from
which the employee transferred under this subtitle, if the employee elects to
participate in a thrift plan established by the Bureau.</text>
</clause></subparagraph><subparagraph id="H71E83F90BDCD49F2928E6EA3372B363B"><enum>(B)</enum><header>Option for
employees transferred from federal reserve system to be subject to the federal
employee retirement program</header>
<clause id="H43180CDC77514BFEBADE1CD8C4E10D6A"><enum>(i)</enum><header>Election</header><text>Any
Federal Reserve System transferred employee who was enrolled in the Federal
Reserve System Retirement Plan on the day before the date of his or her
transfer to the Bureau may, during the 1-year period beginning 6 months after
the designated transfer date, elect to be subject to the Federal Employee
Retirement Program.</text>
</clause><clause id="H599535A244944723B3C5667E40D75AF4"><enum>(ii)</enum><header>Effective date
of coverage</header><text>An election of coverage by the Federal Employee
Retirement Program under this subparagraph shall begin on the day following the
end of the 18-month period beginning on the designated transfer date, and
benefit accruals under the existing retirement plan of the Federal Reserve
System transferred employee shall end on the last day of the 18-month period
beginning on the designated transfer date.</text>
</clause></subparagraph><subparagraph id="HF68E7AE1C13D4E06837F02418478FB74"><enum>(C)</enum><header>Bureau
participation in Federal Reserve System retirement plan</header>
<clause id="HAE9E5568D0034668871A193C03A961BC"><enum>(i)</enum><header>Benefits
provided</header><text>Federal Reserve System employees transferred pursuant to
this subtitle shall continue to be eligible to participate in the Federal
Reserve System Retirement Plan and Federal Reserve System Thrift Plan through
any period of continuous employment with the Bureau, unless the employee makes
an election under subparagraph (A)(vi) or (B). The retirement benefits,
formulas, and features offered to the Federal Reserve System transferred
employees shall be the same as those offered to employees of the Board of
Governors who participate in the Federal Reserve System Retirement Plan and the
Federal Reserve System Thrift Plan, as amended from time to time.</text>
</clause><clause id="H5BA4A8503A23406ABADA5DC854CD847C"><enum>(ii)</enum><header>Limitation</header><text>The
Bureau shall not have responsibility or authority—</text>
<subclause id="HB9D8DAE558794FF1B8EB15668CFA12B0"><enum>(I)</enum><text>to amend an
existing retirement plan (including the Federal Reserve System Retirement Plan
or Federal Reserve System Thrift Plan);</text>
</subclause><subclause id="H276779BFC792428B893718DAC34BA452"><enum>(II)</enum><text>for administering
an existing retirement plan (including the Federal Reserve System Retirement
Plan or Federal Reserve System Thrift Plan); or</text>
</subclause><subclause id="HE8CB4813FDC844F299CC09E9F323CBAC"><enum>(III)</enum><text>for ensuring the
plans comply with applicable laws, fiduciary rules, and related
responsibilities.</text>
</subclause></clause><clause id="HB62AED4C15D54555A354DD27DA6E3B06"><enum>(iii)</enum><header>Tax qualified
status</header><text>Notwithstanding any other provision of law, providing
benefits to Federal Reserve System employees transferred to the Bureau pursuant
to this subtitle, and to employees who elect coverage pursuant to subparagraph
(A)(iii) or under section 1013(a)(2)(B), shall not cause any existing
retirement plan (including the Federal Reserve System Retirement Plan and the
Federal Reserve System Thrift Plan) to lose its tax-qualified status under
sections 401(a) and 501(a) of the Internal Revenue Code of 1986.</text>
</clause><clause id="H1526E410C8B84C5E811E87087B4F9F96"><enum>(iv)</enum><header>Bureau
contribution</header><text>The Bureau shall pay any employer contributions to
the existing retirement plan (including the Federal Reserve System Retirement
Plan and the Federal Reserve System Thrift Plan) for each Federal Reserve
System transferred employee participating in those plans, as required under the
plan, after the designated transfer date.</text>
</clause><clause id="H1C9045D96BDE47589F3DC8CDA09C2055"><enum>(v)</enum><header>Controlled group
status</header><text>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).</text>
</clause></subparagraph><subparagraph id="H26F72447F2FA46CE8BE26ED48BAF890A"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph—</text>
<clause id="H0FE192D5600743D4B93B4EDF185C985E"><enum>(i)</enum><text>the
term <quote>existing retirement plan</quote> means, with respect to an employee
transferred pursuant to this subtitle, the retirement plan (including the
Financial Institutions Retirement Fund) and any associated thrift savings plan,
of the agency from which the employee was transferred under this subtitle, in
which the employee was enrolled on the day before the date on which the
employee was transferred;</text>
</clause><clause id="H5ECADAA482CF49ACB77167B7A358D7C3"><enum>(ii)</enum><text>the
term <quote>Federal Employee Retirement Program</quote> means either the Civil
Service Retirement System established under chapter 83 of title 5, United
States Code, or the Federal Employees Retirement System established under
chapter 84 of title 5, United States Code, depending upon the service history
of the individual;</text>
</clause><clause id="H6ADCE38D13654C45AF36A4F5A21DBE48"><enum>(iii)</enum><text>the term
<quote>Federal Reserve System transferred employee</quote> means a transferred
employee who is an employee of the Board of Governors or a Federal reserve bank
on the day before the designated transfer date, and who is transferred to the
Bureau on the designated transfer date pursuant to this subtitle;</text>
</clause><clause id="HFB0FCD7F1B7348F98AAF8280B7250200"><enum>(iv)</enum><text>the
term <quote>Federal Reserve System Retirement Plan</quote> means the Retirement
Plan for Employees of the Federal Reserve System; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3290A860F2D744DA8D1D43E387D04EEA"><enum>(v)</enum><text>the term
<quote>Federal Reserve System Thrift Plan</quote> means the Thrift Plan for
Employees of the Federal Reserve System.</text>
</clause></subparagraph></paragraph><paragraph id="H7C2551470D124572B39365A043891EBC"><enum>(2)</enum><header>Benefits other
than retirement benefits for transferred employees</header>
<subparagraph id="HDE43410E997540018DF45A87DB9D58C1"><enum>(A)</enum><header>During 1st
year</header>
<clause id="HF5EBEDB30E1A44D8841CB0F4DC6E93D8"><enum>(i)</enum><header>Existing plans
continue</header><text>Each employee transferred pursuant to this subtitle may,
for 1 year after the designated transfer date, retain membership in any other
employee benefit program of the agency or bank from which the employee
transferred, including a medical, dental, vision, long term care, or life
insurance program, to which the employee belonged on the day before the
designated transfer date.</text>
</clause><clause id="H0BA99E4317C848F2969D0D5EDB7581EC"><enum>(ii)</enum><header>Employer
contribution</header><text>The Bureau shall reimburse the agency or bank from
which an employee was transferred for any cost incurred by that agency or bank
in continuing to extend coverage in the benefit program to the employee, as
required under that program or negotiated agreements.</text>
</clause></subparagraph><subparagraph id="HBB620346A3A4477DA092FC47C5F2C7C9"><enum>(B)</enum><header>Medical, dental,
vision, or life insurance after first year</header><text>If, at the end of the
1-year period beginning on the designated transfer date, the Bureau has not
established its own, or arranged for participation in another entity’s,
medical, dental, vision, or life insurance program, an employee transferred
pursuant to this subtitle who was a member of such a program at the agency or
Federal reserve bank from which the employee transferred may, before the
coverage of that employee ends under subparagraph (A)(i), elect to enroll,
without regard to any regularly scheduled open season, in—</text>
<clause id="H5FBED1543288411A87A4E2E5D2C2F58F"><enum>(i)</enum><text>the
enhanced dental benefits program established under chapter 89A of title 5,
United States Code;</text>
</clause><clause id="H0A5897FD80774151906D6503F8AF5D1A"><enum>(ii)</enum><text>the
enhanced vision benefits established under chapter 89B of title 5, United
States Code;</text>
</clause><clause id="H36034419915F46CC8962EB5CB66CE001"><enum>(iii)</enum><text>the Federal
Employees Group Life Insurance Program established under chapter 87 of title 5,
United States Code, without regard to any requirement of insurability;
and</text>
</clause><clause id="H1DFCAD1F5C194DEA8793FAB101812381"><enum>(iv)</enum><text>the
Federal Employees Health Benefits Program established under chapter 89 of title
5, United States Code.</text>
</clause></subparagraph><subparagraph id="HABC02CCA3B0E4F5C8D6817926617DADD"><enum>(C)</enum><header>Long term care
insurance after 1st year</header><text>If, at the end of the 1-year period
beginning on the designated transfer date, the Bureau has not established its
own, or arranged for participation in another entity’s, long term care
insurance program, an employee transferred pursuant to this subtitle who was a
member of such a program at the agency or Federal reserve bank from which the
employee transferred may, before the coverage of that employee ends under
subparagraph (A)(i), elect to apply for coverage under the Federal Long Term
Care Insurance Program established under chapter 90 of title 5, United States
Code, under the underwriting requirements applicable to a new active workforce
member (as defined in part 875 of title 5, Code of Federal Regulations).</text>
</subparagraph><subparagraph id="H89220B15EA024D6E81F10AECE0CF063A"><enum>(D)</enum><header>Employee
contribution</header><text>An individual enrolled in the Federal Employees
Health Benefits program shall pay any employee contribution required by the
plan.</text>
</subparagraph><subparagraph id="H8D4FF068B7EE435D90D0D0B917F60F15"><enum>(E)</enum><header>Additional
funding</header><text>The Bureau shall transfer to the Federal Employees Health
Benefits Fund established under section 8909 of title 5, United States Code, an
amount determined by the Director of the Office of Personnel Management, after
consultation with the Bureau and the Office of Management and Budget, to be
necessary to reimburse the Fund for the cost to the Fund of providing benefits
under this paragraph.</text>
</subparagraph><subparagraph id="HBB06B47F29D2480A93BA9341A8FB2136"><enum>(F)</enum><header>Credit for time
enrolled in other plans</header><text>For employees transferred under this
title, enrollment in a health benefits plan administered by a transferor agency
or a Federal reserve bank, as the case may be, immediately before enrollment in
a health benefits plan under chapter 89 of title 5, United States Code, shall
be considered as enrollment in a health benefits plan under that chapter for
purposes of section 8905(b)(1)(A) of title 5, United States Code.</text>
</subparagraph><subparagraph id="H73C3E59613904081857B6777850CCA3C"><enum>(G)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="H98A2CE4C8AE2476B8707AC753EFE1B36"><enum>(i)</enum><header>In
general</header><text>An annuitant (as defined in section 8901(3) of title 5,
United States Code) who is enrolled in a life insurance plan administered by a
transferor agency on the day before the designated transfer date shall be
eligible for coverage by a life insurance plan under sections 8706(b), 8714a,
8714b, and 8714c of title 5, United States Code, or in a life insurance plan
established by the Bureau, without regard to any regularly scheduled open
season and requirement of insurability.</text>
</clause><clause id="H5D1B2EA690E44C27BF20FCFC0555A7D4"><enum>(ii)</enum><header>Employee
contribution</header><text>An individual enrolled in a life insurance plan
under this subparagraph shall pay any employee contribution required by the
plan.</text>
</clause><clause id="H167049F5DA6944E1B9ABBF754ECF75EF"><enum>(iii)</enum><header>Additional
funding</header><text>The Bureau shall transfer to the Employees’ Life
Insurance Fund established under section 8714 of title 5, United States Code,
an amount determined by the Director of the Office of Personnel Management,
after consultation with the Bureau and the Office of Management and Budget, to
be necessary to reimburse the Fund for the cost to the Fund of providing
benefits under this subparagraph not otherwise paid for by the employee under
clause (ii).</text>
</clause><clause id="H42B719060AFF4599A6F46A295689A53C"><enum>(iv)</enum><header>Credit for time
enrolled in other plans</header><text>For employees transferred under this
title, enrollment in a life insurance plan administered by a transferor agency
immediately before enrollment in a life insurance plan under chapter 87 of
title 5, United States Code, shall be considered as enrollment in a life
insurance plan under that chapter for purposes of section 8706(b)(1)(A) of
title 5, United States Code.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HA67F2BB548F74582B16EAD420E9AB306"><enum>(3)</enum><header>OPM
rules</header><text>The Office of Personnel Management shall issue such rules
as are necessary to carry out this subsection.</text>
</paragraph></subsection><subsection id="HE4E5C6FD7D6B4E15BD6D49686E482BA2"><enum>(j)</enum><header>Implementation
of uniform pay and classification system</header><text>Not later than 2 years
after the designated transfer date, the Bureau shall implement a uniform pay
and classification system for all employees transferred under this
title.</text>
</subsection><subsection id="H72A792E5DCA048159CD13BD66EF52EC6"><enum>(k)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Bureau—</text>
<paragraph id="H77E7761555E844FA9B5D0C9D29A96FC4"><enum>(1)</enum><text>shall take no
action that would unfairly disadvantage transferred employees relative to each
other based on their prior employment by the Board of Governors, the Federal
Deposit Insurance Corporation, the Department of Housing and Urban Development,
the National Credit Union Administration, the Office of the Comptroller of the
Currency, the Office of Thrift Supervision, a Federal reserve bank, a Federal
home loan bank, or a joint office of the Federal home loan banks; and</text>
</paragraph><paragraph id="HABF2A9A6F111487AABD7C615E5D273BC"><enum>(2)</enum><text>may take such
action as is appropriate in individual cases so that employees transferred
under this section receive equitable treatment, with respect to the status,
tenure, pay, benefits (other than benefits under programs administered by the
Office of Personnel Management), and accrued leave or vacation time of those
employees, for prior periods of service with any Federal agency, including the
Board of Governors, the Corporation, the Department of Housing and Urban
Development, the National Credit Union Administration, the Office of the
Comptroller of the Currency, the Office of Thrift Supervision, a Federal
reserve bank, a Federal home loan bank, or a joint office of the Federal home
loan banks.</text>
</paragraph></subsection><subsection id="H4906D3A1F885486C9D85EA4C3818EDDD"><enum>(l)</enum><header>Implementation</header><text>In
implementing the provisions of this section, the Bureau shall coordinate with
the Office of Personnel Management and other entities having expertise in
matters related to employment to ensure a fair and orderly transition for
affected employees.</text>
</subsection></section><section id="H61AC563AD01745CF975435AE3C39CE6D"><enum>1065.</enum><header>Incidental
transfers</header>
<subsection id="H7A33FAFB9BE04E2B9EF88CDF3B3E6F94"><enum>(a)</enum><header>Incidental
transfers authorized</header><text>The Director of the Office of Management and
Budget, in consultation with the Secretary, shall make such additional
incidental transfers and dispositions of assets and liabilities held, used,
arising from, available, or to be made available, in connection with the
functions transferred by this title, as the Director may determine necessary to
accomplish the purposes of this title.</text>
</subsection><subsection id="HE52A81B052574416BB135A191762CAFE"><enum>(b)</enum><header>Sunset</header><text>The
authority provided in this section shall terminate 5 years after the date of
enactment of this Act.</text>
</subsection></section><section id="H03AEE625A21841B8849B351B5470DC23"><enum>1066.</enum><header>Interim
authority of the Secretary</header>
<subsection id="HE5C2C10F08AF4660982042B994E28E7C"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to perform the functions of
the Bureau under this subtitle until the Director of the Bureau is confirmed by
the Senate in accordance with section 1011.</text>
</subsection><subsection id="H8C5905D70AFC4342ABB024DADF6E77C4"><enum>(b)</enum><header>Interim
administrative services by the department of the treasury</header><text>The
Department of the Treasury may provide administrative services necessary to
support the Bureau before the designated transfer date.</text>
</subsection></section><section id="HEFA3900619DF4F6B9257E00F80EBF73A"><enum>1067.</enum><header>Transition
oversight</header>
<subsection id="H7358897D10C048C1BD0D70739D9FCA62"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to ensure that the Bureau—</text>
<paragraph id="H3AA467E83CEE4F198277E919B3CCF5C2"><enum>(1)</enum><text>has an orderly and
organized startup;</text>
</paragraph><paragraph id="HC748FA55CC234CE6954322B7C75532FD"><enum>(2)</enum><text>attracts and
retains a qualified workforce; and</text>
</paragraph><paragraph id="H46371A286FDF4499881F4753C607F9B0"><enum>(3)</enum><text>establishes
comprehensive employee training and benefits programs.</text>
</paragraph></subsection><subsection id="HED64D1EAE5C343F4AD64ECEA1938DF8B"><enum>(b)</enum><header>Reporting
requirement</header>
<paragraph id="H59FC2CD92C5244ECB99284E717EADF38"><enum>(1)</enum><header>In
general</header><text>The Bureau shall submit an annual report to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that includes the plans
described in paragraph (2).</text>
</paragraph><paragraph id="H4E07A2DD4E22432BB61C34ABEAF1DC15"><enum>(2)</enum><header>Plans</header><text>The
plans described in this paragraph are as follows:</text>
<subparagraph id="H24C6D3E08D7E42D88BA6E666DC9AD636"><enum>(A)</enum><header>Training and
workforce development plan</header><text>The Bureau shall submit a training and
workforce development plan that includes, to the extent practicable—</text>
<clause id="HC1635290F80342C3A3B5A06C3555CA0F"><enum>(i)</enum><text>identification of
skill and technical expertise needs and actions taken to meet those
requirements;</text>
</clause><clause id="H16715FBDCB8747D59E7BFDD14EB49701"><enum>(ii)</enum><text>steps taken to
foster innovation and creativity;</text>
</clause><clause id="H4364BE726A17462F80E47394C9813F63"><enum>(iii)</enum><text>leadership
development and succession planning; and</text>
</clause><clause id="HD039BF72C79A4C5CBB2CBB7DB3B900D7"><enum>(iv)</enum><text>effective use of
technology by employees.</text>
</clause></subparagraph><subparagraph id="H94518E6EAC0D4440B21A4804711E3324"><enum>(B)</enum><header>Workplace
flexibilities plan</header><text>The Bureau shall submit a workforce
flexibility plan that includes, to the extent practicable—</text>
<clause id="H2919F586CD4D44058A1A1256B71AD81C"><enum>(i)</enum><text>telework;</text>
</clause><clause id="H59B4466699A14404A9BB3A448A7960D1"><enum>(ii)</enum><text>flexible work
schedules;</text>
</clause><clause id="H750F31E3DC024104BD277E60DCD2E45B"><enum>(iii)</enum><text>phased
retirement;</text>
</clause><clause id="H419C77E39D2C45459E3231FFD7938212"><enum>(iv)</enum><text>reemployed
annuitants;</text>
</clause><clause id="H4B5F00C5F9A54D06A57322C7605E785D"><enum>(v)</enum><text>part-time
work;</text>
</clause><clause id="H079C801F313341AAA073F5137B2F6410"><enum>(vi)</enum><text>job
sharing;</text>
</clause><clause id="H66608CFBDDB6420596D7DAB1B3CADCF7"><enum>(vii)</enum><text>parental leave
benefits and childcare assistance;</text>
</clause><clause id="HCE4BB769DF7F4FF28B4625EA7C8A07FC"><enum>(viii)</enum><text>domestic
partner benefits;</text>
</clause><clause id="H78F62B7523AE44FA8A4E0EA7F074506C"><enum>(ix)</enum><text>other workplace
flexibilities; or</text>
</clause><clause id="HD0AE6757A9A44D66A50D1C2151AE64CA"><enum>(x)</enum><text>any
combination of the items described in clauses (i) through (ix).</text>
</clause></subparagraph><subparagraph id="H96A668EE01D34CC49C8C62FCB164059B"><enum>(C)</enum><header>Recruitment and
retention plan</header><text>The Bureau shall submit a recruitment and
retention plan that includes, to the extent practicable, provisions relating
to—</text>
<clause id="HA5E6E0B448F24FACA6ACF65952D5A3A4"><enum>(i)</enum><text>the
steps necessary to target highly qualified applicant pools with diverse
backgrounds;</text>
</clause><clause id="H1EB6DF71325543249F386157996BFF3B"><enum>(ii)</enum><text>streamlined
employment application processes;</text>
</clause><clause id="H0723D5A50493491B95E8D52E805A7A81"><enum>(iii)</enum><text>the provision of
timely notification of the status of employment applications to applicants;
and</text>
</clause><clause id="HB698D5A98ED54CA7BD64102E1377338C"><enum>(iv)</enum><text>the
collection of information to measure indicators of hiring effectiveness.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H39FC81566774479D8D73DBC0AD97E76D"><enum>(c)</enum><header>Expiration</header><text>The
reporting requirement under subsection (b) shall terminate 5 years after the
date of enactment of this Act.</text>
</subsection><subsection id="H90427FA3711346FFA6262D955F7105A2"><enum>(d)</enum><header>Rule of
construction</header><text>Nothing in this section may be construed to
affect—</text>
<paragraph id="H8EBF01AEB2F649C7AE456CC64DA0501B"><enum>(1)</enum><text>a
collective bargaining agreement, as that term is defined in section 7103(a)(8)
of title 5, United States Code, that is in effect on the date of enactment of
this Act; or</text>
</paragraph><paragraph id="HCC065F20F5894E1B908DAE70A7E1BC6E"><enum>(2)</enum><text>the rights of
employees under chapter 71 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="HCC2E77B9DA7C4846BA5078AB1C45C0C8"><enum>(e)</enum><header>Participation in
examinations</header><text>In order to prepare the Bureau to conduct
examinations under section 1025 upon the designated transfer date, the Bureau
and the applicable prudential regulator may agree to include, on a sampling
basis, examiners on examinations of the compliance with Federal consumer
financial law of institutions described in section 1025(a) conducted by the
prudential regulators prior to the designated transfer date.</text>
</subsection></section></subtitle><subtitle id="H3F61AAD45B6E489B9CCC9F7673C6CBCD"><enum>G</enum><header>Regulatory
Improvements</header>
<section id="HDD3AE0A2AB3944B4BD48505D731151F4"><enum>1071.</enum><header>Small business
data collection</header>
<subsection id="HBCFC34C51EA9464FA065EE80B07EACD4"><enum>(a)</enum><header>In
general</header><text>The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.)
is amended by inserting after section 704A the following:</text>
<quoted-block display-inline="no-display-inline" id="H10317B88C5144D6BAB9E7B9E53A72152" style="OLC">
<section id="H5AE0CEA3CB7A4EE39D94A445A0216D36"><enum>704B.</enum><header>Small business
loan data collection</header>
<subsection id="HFF33E82269F341648E33FDC7FFD13979"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to facilitate enforcement of fair lending laws and
enable communities, governmental entities, and creditors to identify business
and community development needs and opportunities of women-owned,
minority-owned, and small businesses.</text>
</subsection><subsection id="H09A474FC5AF946C1BE41562C7CF0F5EF"><enum>(b)</enum><header>Information
gathering</header><text>Subject to the requirements of this section, in the
case of any application to a financial institution for credit for women-owned,
minority-owned, or small business, the financial institution shall—</text>
<paragraph id="HD0C669F746C54CB8A8F85958D3CC5410"><enum>(1)</enum><text>inquire whether
the business is a women-owned, minority-owned, or small business, without
regard to whether such application is received in person, by mail, by
telephone, by electronic mail or other form of electronic transmission, or by
any other means, and whether or not such application is in response to a
solicitation by the financial institution; and</text>
</paragraph><paragraph id="H1EF605AF359C4D5DA43A72B59324E70D"><enum>(2)</enum><text>maintain a record
of the responses to such inquiry, separate from the application and
accompanying information.</text>
</paragraph></subsection><subsection id="HC0A72DBDD6A7436CAC82C0D2BA3EC74A"><enum>(c)</enum><header>Right To
refuse</header><text>Any applicant for credit may refuse to provide any
information requested pursuant to subsection (b) in connection with any
application for credit.</text>
</subsection><subsection id="H1875E14783844813A55C80AA928CA33D"><enum>(d)</enum><header>No access by
underwriters</header>
<paragraph id="H004112A2C2CA4652ADC5D96E74381CF1"><enum>(1)</enum><header>Limitation</header><text>Where
feasible, no loan underwriter or other officer or employee of a financial
institution, or any affiliate of a financial institution, involved in making
any determination concerning an application for credit shall have access to any
information provided by the applicant pursuant to a request under subsection
(b) in connection with such application.</text>
</paragraph><paragraph id="H391B75870FC14E90A1F7A0374AD16B2D"><enum>(2)</enum><header>Limited
access</header><text>If a financial institution determines that a loan
underwriter or other officer or employee of a financial institution, or any
affiliate of a financial institution, involved in making any determination
concerning an application for credit should have access to any information
provided by the applicant pursuant to a request under subsection (b), the
financial institution shall provide notice to the applicant of the access of
the underwriter to such information, along with notice that the financial
institution may not discriminate on the basis of such information.</text>
</paragraph></subsection><subsection id="H3B75548F31BD49DB9FF3021777383D22"><enum>(e)</enum><header>Form and manner
of information</header>
<paragraph id="HA9EF5078EA28485F81917C643D65623E"><enum>(1)</enum><header>In
general</header><text>Each financial institution shall compile and maintain, in
accordance with regulations of the Bureau, a record of the information provided
by any loan applicant pursuant to a request under subsection (b).</text>
</paragraph><paragraph id="H53C5525C91BE4EE387416BEEB40BCE54"><enum>(2)</enum><header>Itemization</header><text>Information
compiled and maintained under paragraph (1) shall be itemized in order to
clearly and conspicuously disclose—</text>
<subparagraph id="H7D8044894A0141F3BCACED68F8297EAE"><enum>(A)</enum><text>the number of the
application and the date on which the application was received;</text>
</subparagraph><subparagraph id="H3E61F896095341F8BE145457603F3126"><enum>(B)</enum><text>the type and
purpose of the loan or other credit being applied for;</text>
</subparagraph><subparagraph id="H5F15C3FDDAB24E40A09ED9509CD934E9"><enum>(C)</enum><text>the amount of the
credit or credit limit applied for, and the amount of the credit transaction or
the credit limit approved for such applicant;</text>
</subparagraph><subparagraph id="HEEA6D2ADBD3A4FC398E78B37CA02A309"><enum>(D)</enum><text>the type of action
taken with respect to such application, and the date of such action;</text>
</subparagraph><subparagraph id="H9ACAF56EFAE34C1294E20B19A71E00B2"><enum>(E)</enum><text>the census tract
in which is located the principal place of business of the women-owned,
minority-owned, or small business loan applicant;</text>
</subparagraph><subparagraph id="H69F37AD59873447291603A18FBFA0754"><enum>(F)</enum><text>the gross annual
revenue of the business in the last fiscal year of the women-owned,
minority-owned, or small business loan applicant preceding the date of the
application;</text>
</subparagraph><subparagraph id="HB626E65CE8494851960F065443BC7DEC"><enum>(G)</enum><text>the race, sex, and
ethnicity of the principal owners of the business; and</text>
</subparagraph><subparagraph id="HE9945C39B15E4A78B722FB5647E83C02"><enum>(H)</enum><text>any additional
data that the Bureau determines would aid in fulfilling the purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="H15435BAEAAC04FEA82CB5E5AFBDE136D"><enum>(3)</enum><header>No personally
identifiable information</header><text>In compiling and maintaining any record
of information under this section, a financial institution may not include in
such record the name, specific address (other than the census tract required
under paragraph (1)(E)), telephone number, electronic mail address, or any
other personally identifiable information concerning any individual who is, or
is connected with, the women-owned, minority-owned, or small business loan
applicant.</text>
</paragraph><paragraph id="H2EDD1AB8FCA04CB2954A17A9AF48482E"><enum>(4)</enum><header>Discretion to
delete or modify publicly available data</header><text>The Bureau may, at its
discretion, delete or modify data collected under this section which is or will
be available to the public, if the Bureau determines that the deletion or
modification of the data would advance a privacy interest.</text>
</paragraph></subsection><subsection id="H2663688DC36F4EEE8F9DE55B61C75215"><enum>(f)</enum><header>Availability of
information</header>
<paragraph id="HFBD41FD5CD9D4A1C8FCFB16B39369531"><enum>(1)</enum><header>Submission to
Bureau</header><text>The data required to be compiled and maintained under this
section by any financial institution shall be submitted annually to the
Bureau.</text>
</paragraph><paragraph id="H070F948CA22F4EB789EF2FF1CF480AF4"><enum>(2)</enum><header>Availability of
information</header><text>Information compiled and maintained under this
section shall be—</text>
<subparagraph id="HBE4E75783D5B4307A58C5E9293AF34F3"><enum>(A)</enum><text>retained for not
less than 3 years after the date of preparation;</text>
</subparagraph><subparagraph id="H38FFB90AFBB440A2A81EC877313CEF0F"><enum>(B)</enum><text>made available to
any member of the public, upon request, in the form required under regulations
prescribed by the Bureau;</text>
</subparagraph><subparagraph id="H688A8CEF359342B19E3D79F758AF76A9"><enum>(C)</enum><text>annually made
available to the public generally by the Bureau, in such form and in such
manner as is determined by the Bureau, by regulation.</text>
</subparagraph></paragraph><paragraph id="H14806F99849141FBBB3FC29013CF1C6E"><enum>(3)</enum><header>Compilation of
aggregate data</header><text>The Bureau may, at its discretion—</text>
<subparagraph id="HC05880570E16414FB8047A79025F7BEF"><enum>(A)</enum><text>compile and
aggregate data collected under this section for its own use; and</text>
</subparagraph><subparagraph id="H069DF6B534DF477B89449896FE552A25"><enum>(B)</enum><text>make public such
compilations of aggregate data.</text>
</subparagraph></paragraph></subsection><subsection id="HD1970D9658B34058833E29AC8E1DF461"><enum>(g)</enum><header>Bureau
action</header>
<paragraph id="H35A07E429E674B188E53A27D38106D7D"><enum>(1)</enum><header>In
general</header><text>The Bureau shall prescribe such rules and issue such
guidance as may be necessary to carry out, enforce, and compile data pursuant
to this section.</text>
</paragraph><paragraph id="H3F37374EEBA34012B8343802A84A030D"><enum>(2)</enum><header>Exceptions</header><text>The
Bureau, by rule or order, may adopt exceptions to any requirement of this
section and may, conditionally or unconditionally, exempt any financial
institution or class of financial institutions from the requirements of this
section, as the Bureau deems necessary or appropriate to carry out the purposes
of this section.</text>
</paragraph><paragraph id="HE54B149F8BA44441A3E3EEDB507B7838"><enum>(3)</enum><header>Guidance</header><text>The
Bureau shall issue guidance designed to facilitate compliance with the
requirements of this section, including assisting financial institutions in
working with applicants to determine whether the applicants are women-owned,
minority-owned, or small businesses for purposes of this section.</text>
</paragraph></subsection><subsection id="H3D409E10FADC45B599843F8420C25239"><enum>(h)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H8F70399656864214BAE453CE44133E53"><enum>(1)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> means any
partnership, company, corporation, association (incorporated or
unincorporated), trust, estate, cooperative organization, or other entity that
engages in any financial activity.</text>
</paragraph><paragraph id="HFB2D998906F2444F99069321BE124D4D"><enum>(2)</enum><header>Small
business</header><text>The term <quote>small business</quote> has the same
meaning as the term <quote>small business concern</quote> in section 3 of the
Small Business Act (15 U.S.C. 632).</text>
</paragraph><paragraph id="H9D72104590154EAC88E0E379E6128E1C"><enum>(3)</enum><header>Small business
loan</header><text>The term <quote>small business loan</quote> means a loan
made to a small business.</text>
</paragraph><paragraph id="H30E67CA0118445ECAD3786B8DDF8B3BE"><enum>(4)</enum><header>Minority</header><text>The
term <term>minority</term> has the same meaning as in section 1204(c)(3) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989.</text>
</paragraph><paragraph id="HB743795155274D7A882ABACE9AC74F64"><enum>(5)</enum><header>Minority-owned
business</header><text>The term <term>minority-owned business</term> means a
business—</text>
<subparagraph id="H8DF9F6CCABB34643A7281BF980441BC1"><enum>(A)</enum><text>more than 50
percent of the ownership or control of which is held by 1 or more minority
individuals; and</text>
</subparagraph><subparagraph id="H3FB38D3FD1D14D9799CB81EE83C42E97"><enum>(B)</enum><text>more than 50
percent of the net profit or loss of which accrues to 1 or more minority
individuals.</text>
</subparagraph></paragraph><paragraph id="H6FD275563C594B449391AD9A08FB1664"><enum>(6)</enum><header>Women-owned
business</header><text>The term <term>women-owned business</term> means a
business—</text>
<subparagraph id="HE2AC730BB7A143EA88ADD2BB8E2F414B"><enum>(A)</enum><text>more than 50
percent of the ownership or control of which is held by 1 or more women;
and</text>
</subparagraph><subparagraph id="H31F68810BA724A0190E49ED0A66B1C08"><enum>(B)</enum><text>more than 50
percent of the net profit or loss of which accrues to 1 or more
women.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2B6DA121B00742189030BD544981ED5C"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>Section 701(b) of the Equal Credit
Opportunity Act (15 U.S.C. 1691(b)) is amended—</text>
<paragraph id="H15DF9BA9268C4383BF1C71AB6B067DD4"><enum>(1)</enum><text>in paragraph (3),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H7183BDF5CC564C3F8310AF7F694AE41E"><enum>(2)</enum><text>in paragraph (4),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="H08566AEC3AE7468788FB1AA69FF3216F"><enum>(3)</enum><text>by inserting after
paragraph (4), the following:</text>
<quoted-block display-inline="no-display-inline" id="HB049ED49FD554B4EAB55E98A14DD15ED" style="OLC">
<paragraph id="H157AC3F2B85B48608FEB23F9BA44C28D"><enum>(5)</enum><text>to make an inquiry
under section 704B, in accordance with the requirements of that
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA55A86B8FB8C433BA2DB390857BC8552"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for title VII of the Consumer
Credit Protection Act is amended by inserting after the item relating to
section 704A the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H80D6D7DE3A8848B9AAA9A5BCAD7D67BC" style="OLC">
<toc>
<toc-entry bold="off" level="section">704B. Small business loan data
collection.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC31BFF8ED8D44A28BBA0A7FD17FCB43F"><enum>(d)</enum><header>Effective
date</header><text>This section shall become effective on the designated
transfer date.</text>
</subsection></section><section id="H59BC6B7C16524EC28F762E694FE2FA73"><enum>1072.</enum><header>Assistance for
economically vulnerable individuals and families</header>
<subsection id="H6FB027E1550F438EA874FA481DD752B1"><enum>(a)</enum><header>HERA
amendments</header><text>Section 1132 of the Housing and Economic Recovery Act
of 2008 (12 U.S.C. 1701x note) is amended—</text>
<paragraph id="H61F0538CCD694347B2AC9D5719E3619F"><enum>(1)</enum><text>in subsection (a),
by inserting in each of paragraphs (1), (2), (3), and (4) “or economically
vulnerable individuals and families” after <quote>homebuyers</quote> each place
that term appears;</text>
</paragraph><paragraph id="H8EF3C0C14C924202ACB82E91976B5A74"><enum>(2)</enum><text>in subsection
(b)(1), by inserting <quote>or economically vulnerable individuals and
families</quote> after <quote>homebuyers</quote>;</text>
</paragraph><paragraph id="H686908128E2148E3AF59EADD013A9DD1"><enum>(3)</enum><text>in subsection
(c)(1)—</text>
<subparagraph id="H4756841DB2CA4BE78EAF1F9942B91D8A"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>or</quote> at the end;</text>
</subparagraph><subparagraph id="H440472E9BB4744039E00C928DCC16570"><enum>(B)</enum><text>in subparagraph
(B), by striking the period at the end and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="H6AEB6FF2577E47B8901267FD733EF099"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEF439A9EB75F412EA54E563295DB9F26" style="OLC">
<subparagraph id="HB9B6278E863846C998F8EB10AEF1131C"><enum>(C)</enum><text>a nonprofit
corporation that—</text>
<clause id="H0EAA8DB8FC79493EBEEF879801BD88EA"><enum>(i)</enum><text>is
exempt from taxation under section 501(c)(3) of the Internal Revenue Code of
1986; and</text>
</clause><clause id="HECCC3B7B6CD648BBA2E0E9BE12C3B5FC"><enum>(ii)</enum><text>specializes or
has expertise in working with economically vulnerable individuals and families,
but whose primary purpose is not provision of credit counseling
services.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1D06F58B4A4549C6AD6910B662255BC9"><enum>(4)</enum><text>in subsection
(d)(1), by striking <quote>not more than 5</quote>.</text>
</paragraph></subsection><subsection id="H76807E25511A43ABA5A2E2B3D6B1F13C"><enum>(b)</enum><header>Applicability</header><text>Amendments
made by subsection (a) shall not apply to programs authorized by section 1132
of the Housing and Economic Recovery Act of 2008 (12 U.S.C. 1701x note) that
are funded with appropriations prior to fiscal year 2011.</text>
</subsection></section><section id="H80CAB88CEBD145AA82E8068131F4AD24"><enum>1073.</enum><header>Remittance
transfers</header>
<subsection id="HD883F50722C941A58D2C761D28E4FDC5"><enum>(a)</enum><header>Treatment of
remittance transfers</header><text>The <act-name parsable-cite="EFTA">Electronic Fund Transfer Act</act-name> (15 U.S.C. 1693 et
seq.) is amended—</text>
<paragraph id="HF81B16A0D29C4F8697CF355D45C5A71F"><enum>(1)</enum><text>in section 902(b)
(15 U.S.C. 1693(b)), by inserting <quote>and remittance</quote> after
<quote>electronic fund</quote>;</text>
</paragraph><paragraph id="HB971B2D5E61E40E08D1BC211C04DC6B6"><enum>(2)</enum><text>in section 904(c)
(15 U.S.C. 1693b(c)), in the first sentence, by inserting “or remittance
transfers” after “electronic fund transfers”;</text>
</paragraph><paragraph id="HFBB2E8C707284F7D8D9497FAEA74D594"><enum>(3)</enum><text>by redesignating
sections 919, 920, 921, and 922 as sections 920, 921, 922, and 923,
respectively; and</text>
</paragraph><paragraph id="H4B1B1EC600F94A08924316611A104AD3"><enum>(4)</enum><text>by inserting after
section 918 the following:</text>
<quoted-block display-inline="no-display-inline" id="HD7EAB4B7B4FA4E57B09C6EC1BA694E8D" style="OLC">
<section id="HF7545450FF254D2C9F37947AE26742EB"><enum>919.</enum><header>Remittance
transfers</header>
<subsection id="H9DDD592698E0454795FC9221CD09B010"><enum>(a)</enum><header>Disclosures
required for remittance transfers</header>
<paragraph id="H7FC751484ECC4D0780FFE2481655AE2F"><enum>(1)</enum><header>In
general</header><text>Each remittance transfer provider shall make disclosures
as required under this section and in accordance with rules prescribed by the
Board. Disclosures required under this section shall be in addition to any
other disclosures applicable under this title.</text>
</paragraph><paragraph id="H642E890FD25A439C9DD0BFBAD305D5E0"><enum>(2)</enum><header>Disclosures</header><text>Subject
to rules prescribed by the Board, a remittance transfer provider shall provide,
in writing and in a form that the sender may keep, to each sender requesting a
remittance transfer, as applicable to the transaction—</text>
<subparagraph id="H4CCD1300A15646CC8498256ADB1AC4A5"><enum>(A)</enum><text>at the time at
which the sender requests a remittance transfer to be initiated, and prior to
the sender making any payment in connection with the remittance transfer, a
disclosure describing—</text>
<clause id="HDB6C5DCCE69349C0B4318F77CA90884B"><enum>(i)</enum><text>the amount of
currency that will be received by the designated recipient, using the values of
the currency into which the funds will be exchanged;</text>
</clause><clause id="H54A84594873A494DA3A59180A2F57BE1"><enum>(ii)</enum><text>the amount of
transfer and any other fees charged by the remittance transfer provider for the
remittance transfer; and</text>
</clause><clause id="H807415B5855440BD8630AA45620A5634"><enum>(iii)</enum><text>any exchange
rate to be used by the remittance transfer provider for the remittance
transfer, to the nearest 1/100th of a point; and</text>
</clause></subparagraph><subparagraph id="HE3C7C6672DBF43E3831DE3F2AC5AD6D8"><enum>(B)</enum><text>at the time at
which the sender makes payment in connection with the remittance
transfer—</text>
<clause id="HF56930F9A9904CE6BCD2A0C8404622D4"><enum>(i)</enum><text>a
receipt showing—</text>
<subclause id="HDBBE30F4BDBD4134968F5AFE25DF5185"><enum>(I)</enum><text>the information
described in subparagraph (A);</text>
</subclause><subclause id="H2977F653C63348D09AD3AFE3D02A5867"><enum>(II)</enum><text>the promised date
of delivery to the designated recipient; and</text>
</subclause><subclause id="H22869645334D4EEF8F888A47FB168376"><enum>(III)</enum><text>the name and
either the telephone number or the address of the designated recipient, if
either the telephone number or the address of the designated recipient is
provided by the sender; and</text>
</subclause></clause><clause id="HC46B096D936D46B1917AFABA1A22F515"><enum>(ii)</enum><text>a
statement containing—</text>
<subclause id="H81B100D7FB44463F934C87FE62938137"><enum>(I)</enum><text>information about
the rights of the sender under this section regarding the resolution of errors;
and</text>
</subclause><subclause id="H6A04BCBC26C243CBA8A537F04022278E"><enum>(II)</enum><text>appropriate
contact information for—</text>
<item id="HFA00D645E917416D93656E88A59CEA5B"><enum>(aa)</enum><text>the
remittance transfer provider; and</text>
</item><item id="H84336D9D7A8E470FA6D070CDFDE6FD5F"><enum>(bb)</enum><text>the
State agency that regulates the remittance transfer provider and the Board,
including the toll-free telephone number established under section 1013 of the
Consumer Financial Protection Act of 2010.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph id="HDA7A596AFF20426FB98BA4A29334634B"><enum>(3)</enum><header>Requirements
relating to disclosures</header><text>With respect to each disclosure required
to be provided under paragraph (2) a remittance transfer provider shall—</text>
<subparagraph id="H7B970785477D408AB0E8776641D94676"><enum>(A)</enum><text>provide an initial
notice and receipt, as required by subparagraphs (A) and (B) of paragraph (2),
and an error resolution statement, as required by subsection (d), that clearly
and conspicuously describe the information required to be disclosed therein;
and</text>
</subparagraph><subparagraph id="H434A6283403E4A6AA9AECC91BD2C877D"><enum>(B)</enum><text>with respect to
any transaction that a sender conducts electronically, comply with the
Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et
seq.).</text>
</subparagraph></paragraph><paragraph id="H420D7CDA569F4AC4B46BEC0F889C927D"><enum>(4)</enum><header>Exception for
disclosures of amount received</header>
<subparagraph id="HE7EC87FC7E924F93B4E9C10C8FE42149"><enum>(A)</enum><header>In
general</header><text>Subject to the rules prescribed by the Board, and except
as provided under subparagraph (B), the disclosures required regarding the
amount of currency that will be received by the designated recipient shall be
deemed to be accurate, so long as the disclosures provide a reasonably accurate
estimate of the foreign currency to be received. This paragraph shall apply
only to a remittance transfer provider who is an insured depository
institution, as defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813), or an insured credit union, as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752), and if—</text>
<clause id="HB02BC76E1D26460D8BF5AEED9C5396F2"><enum>(i)</enum><text>a
remittance transfer is conducted through a demand deposit, savings deposit, or
other asset account that the sender holds with such remittance transfer
provider; and</text>
</clause><clause id="H9D02D5371B93400AA57C4D57774AF4EC"><enum>(ii)</enum><text>at the time at
which the sender requests the transaction, the remittance transfer provider is
unable to know, for reasons beyond its control, the amount of currency that
will be made available to the designated recipient.</text>
</clause></subparagraph><subparagraph id="H234FAAD32C1C4692BFEBF7C6DCF57E77"><enum>(B)</enum><header>Deadline</header><text>The
application of subparagraph (A) shall terminate 5 years after the date of
enactment of the Consumer Financial Protection Act of 2010, unless the Board
determines that termination of such provision would negatively affect the
ability of remittance transfer providers described in subparagraph (A) to send
remittances to locations in foreign countries, in which case, the Board may, by
rule, extend the application of subparagraph (A) to not longer than 10 years
after the date of enactment of the Consumer Financial Protection Act of
2010.</text>
</subparagraph></paragraph><paragraph id="HCF3E60880C094E4390ADB5FDD4C54578"><enum>(5)</enum><header>Exemption
authority</header><text>The Board may, by rule, permit a remittance transfer
provider to satisfy the requirements of—</text>
<subparagraph id="H3444F60B672947F597A834EBF06B89F5"><enum>(A)</enum><text>paragraph (2)(A)
orally, if the transaction is conducted entirely by telephone;</text>
</subparagraph><subparagraph id="H4569F40A63C449E6A055F9433BCCAC41"><enum>(B)</enum><text>paragraph (2)(B),
in the case of a transaction conducted entirely by telephone, by mailing the
disclosures required under such subparagraph to the sender, not later than 1
business day after the date on which the transaction is conducted, or by
including such documents in the next periodic statement, if the telephone
transaction is conducted through a demand deposit, savings deposit, or other
asset account that the sender holds with the remittance transfer
provider;</text>
</subparagraph><subparagraph id="H7F4D7E867FD54DA7B10EBAEA9C7420A7"><enum>(C)</enum><text>subparagraphs (A)
and (B) of paragraph (2) together in one written disclosure, but only to the
extent that the information provided in accordance with paragraph (3)(A) is
accurate at the time at which payment is made in connection with the subject
remittance transfer; and</text>
</subparagraph><subparagraph id="HDD5A13EE1ABF44388EC07EACF8DBFF94"><enum>(D)</enum><text>paragraph (2)(A),
without compliance with section 101(c) of the Electronic Signatures in Global
Commerce Act, if a sender initiates the transaction electronically and the
information is displayed electronically in a manner that the sender can
keep.</text>
</subparagraph></paragraph><paragraph id="H0B88F9A3FA5740C2954C1554A248F3ED"><enum>(6)</enum><header>Storefront and
internet notices</header>
<subparagraph id="H414C4819C911448480825119E3ECD4E5"><enum>(A)</enum><header>In
general</header>
<clause id="H51BC6DD82EE2417FAF031AD170F83DEE"><enum>(i)</enum><header>Prominent
posting</header><text>Subject to subparagraph (B), the Board may prescribe
rules to require a remittance transfer provider to prominently post, and timely
update, a notice describing a model remittance transfer for one or more
amounts, as the Board may determine, which notice shall show the amount of
currency that will be received by the designated recipient, using the values of
the currency into which the funds will be exchanged.</text>
</clause><clause id="H04FB9F770DC5495DA8F56A5FC919029A"><enum>(ii)</enum><header>Onsite
displays</header><text>The Board may require the notice prescribed under this
subparagraph to be displayed in every physical storefront location owned or
controlled by the remittance transfer provider.</text>
</clause><clause id="H86ECF734E5444DA8A213C0551E530196"><enum>(iii)</enum><header>Internet
notices</header><text>Subject to paragraph (3), the Board shall prescribe rules
to require a remittance transfer provider that provides remittance transfers
via the Internet to provide a notice, comparable to a storefront notice
described in this subparagraph, located on the home page or landing page (with
respect to such remittance transfer services) owned or controlled by the
remittance transfer provider.</text>
</clause><clause id="HD90461A4A6B74070AA944B2815893065"><enum>(iv)</enum><header>Rulemaking
authority</header><text>In prescribing rules under this subparagraph, the Board
may impose standards or requirements regarding the provision of the storefront
and Internet notices required under this subparagraph and the provision of the
disclosures required under paragraphs (2) and (3).</text>
</clause></subparagraph><subparagraph id="H765BBC6BE5FF44A5A099738515E3B0D0"><enum>(B)</enum><header>Study and
analysis</header><text>Prior to proposing rules under subparagraph (A), the
Board shall undertake appropriate studies and analyses, which shall be
consistent with section 904(a)(2), and may include an advanced notice of
proposed rulemaking, to determine whether a storefront notice or Internet
notice facilitates the ability of a consumer—</text>
<clause id="H7F5E87C94CA346FCAF47DACF2D5EC5F1"><enum>(i)</enum><text>to
compare prices for remittance transfers; and</text>
</clause><clause id="H9B30A7D9037F44948A2E9AB6C7BBEEE4"><enum>(ii)</enum><text>to understand the
types and amounts of any fees or costs imposed on remittance transfers.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H1F2F721A6ABA447299A27A098DACE571"><enum>(b)</enum><header>Foreign language
disclosures</header><text>The disclosures required under this section shall be
made in English and in each of the foreign languages principally used by the
remittance transfer provider, or any of its agents, to advertise, solicit, or
market, either orally or in writing, at that office.</text>
</subsection><subsection id="HB0A36D8663B04525A5AB72191A7B120D"><enum>(c)</enum><header>Regulations
regarding transfers to certain nations</header><text>If the Board determines
that a recipient nation does not legally allow, or the method by which
transactions are made in the recipient country do not allow, a remittance
transfer provider to know the amount of currency that will be received by the
designated recipient, the Board may prescribe rules (not later than 18 months
after the date of enactment of the Consumer Financial Protection Act of 2010)
addressing the issue, which rules shall include standards for a remittance
transfer provider to provide—</text>
<paragraph id="H95CFE690C77C48539F42E2DB3F63DF89"><enum>(1)</enum><text>a receipt that is
consistent with subsections (a) and (b); and</text>
</paragraph><paragraph id="H527B89C3B2D54905A0BA5459B0BD3EB4"><enum>(2)</enum><text>a reasonably
accurate estimate of the foreign currency to be received, based on the rate
provided to the sender by the remittance transfer provider at the time at which
the transaction was initiated by the sender.</text>
</paragraph></subsection><subsection id="HA7C6F8B8A2E642F2B421CAABBC14EB53"><enum>(d)</enum><header>Remittance
transfer errors</header>
<paragraph id="HA8705FD95D5D4E5AA371D8D6949A713A"><enum>(1)</enum><header>Error
resolution</header>
<subparagraph id="HB8AAF2D765A14E50ADCE96806CE2B07C"><enum>(A)</enum><header>In
general</header><text>If a remittance transfer provider receives oral or
written notice from the sender within 180 days of the promised date of delivery
that an error occurred with respect to a remittance transfer, including the
amount of currency designated in subsection (a)(3)(A) that was to be sent to
the designated recipient of the remittance transfer, using the values of the
currency into which the funds should have been exchanged, but was not made
available to the designated recipient in the foreign country, the remittance
transfer provider shall resolve the error pursuant to this subsection and
investigate the reason for the error.</text>
</subparagraph><subparagraph id="HAC99C43B78BC422F8AC6D8DD0765AF2B"><enum>(B)</enum><header>Remedies</header><text>Not
later than 90 days after the date of receipt of a notice from the sender
pursuant to subparagraph (A), the remittance transfer provider shall, as
applicable to the error and as designated by the sender—</text>
<clause id="H2F8E38AF321F4EBEA772E3420A33075F"><enum>(i)</enum><text>refund to the
sender the total amount of funds tendered by the sender in connection with the
remittance transfer which was not properly transmitted;</text>
</clause><clause id="HA625F6B2B4C9412F88C526279D356734"><enum>(ii)</enum><text>make available to
the designated recipient, without additional cost to the designated recipient
or to the sender, the amount appropriate to resolve the error;</text>
</clause><clause id="HFC092FCAD3224F3A9BD101795E5A9278"><enum>(iii)</enum><text>provide such
other remedy, as determined appropriate by rule of the Board for the protection
of senders; or</text>
</clause><clause id="HBEBEE57DB207473483740ACD948487CA"><enum>(iv)</enum><text>provide written
notice to the sender that there was no error with an explanation responding to
the specific complaint of the sender.</text>
</clause></subparagraph></paragraph><paragraph id="H946D3E52E8F244798D078DFC7D6084E5"><enum>(2)</enum><header>Rules</header><text>The
Board shall establish, by rule issued not later than 18 months after the date
of enactment of the Consumer Financial Protection Act of 2010, clear and
appropriate standards for remittance transfer providers with respect to error
resolution relating to remittance transfers, to protect senders from such
errors. Standards prescribed under this paragraph shall include appropriate
standards regarding record keeping, as required, including
documentation—</text>
<subparagraph id="HB4751F1C352B47E6BCF434F4BECCBFB5"><enum>(A)</enum><text>of the complaint
of the sender;</text>
</subparagraph><subparagraph id="H64D7FA839D3D4D4B9557664A3E282D6D"><enum>(B)</enum><text>that the sender
provides the remittance transfer provider with respect to the alleged error;
and</text>
</subparagraph><subparagraph id="H4AEAB1408DD24CD592BDE1A8E3D79579"><enum>(C)</enum><text>of the findings of
the remittance transfer provider regarding the investigation of the alleged
error that the sender brought to their attention.</text>
</subparagraph></paragraph><paragraph commented="no" id="H30B4EF1B630C47C9B74B91CE7F20E8CD"><enum>(3)</enum><header>Cancellation and
refund policy rules</header><text>Not later than 18 months after the date of
enactment of the Consumer Financial Protection Act of 2010, the Board shall
issue final rules regarding appropriate remittance transfer cancellation and
refund policies for consumers.</text>
</paragraph></subsection><subsection id="H982CC998A4A042C8B2D4EFAC4F9F075F"><enum>(e)</enum><header>Applicability of
this title</header>
<paragraph id="HC08220CCD4F64A09B17C7682F447625E"><enum>(1)</enum><header>In
general</header><text>A remittance transfer that is not an electronic fund
transfer, as defined in section 903, shall not be subject to any of the
provisions of sections 905 through 913. A remittance transfer that is an
electronic fund transfer, as defined in section 903, shall be subject to all
provisions of this title, except for section 908, that are otherwise applicable
to electronic fund transfers under this title.</text>
</paragraph><paragraph id="H1F65BE8765B6489F93471FFCA0FF2A72"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed—</text>
<subparagraph id="H7ADE2C230D40400DACC77ED62CE0DF22"><enum>(A)</enum><text>to affect the
application to any transaction, to any remittance provider, or to any other
person of any of the provisions of subchapter II of chapter 53 of title 31,
United States Code, section 21 of the Federal Deposit Insurance Act (12 U.S.C.
1829b), or chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951–1959), or
any regulations promulgated thereunder; or</text>
</subparagraph><subparagraph id="H7FCA5B9547074A1BB63445A23F521AC5"><enum>(B)</enum><text>to cause any fund
transfer that would not otherwise be treated as such under paragraph (1) to be
treated as an electronic fund transfer, or as otherwise subject to this title,
for the purposes of any of the provisions referred to in subparagraph (A) or
any regulations promulgated thereunder.</text>
</subparagraph></paragraph></subsection><subsection id="HC8A75BC3C5A943959F15EDC1ECE4B9A2"><enum>(f)</enum><header>Acts of
agents</header>
<paragraph id="H9A6FF8B9F3FF4EB990CD19D8D9B4C1E9"><enum>(1)</enum><header>In
general</header><text>A remittance transfer provider shall be liable for any
violation of this section by any agent, authorized delegate, or person
affiliated with such provider, when such agent, authorized delegate, or
affiliate acts for that remittance transfer provider.</text>
</paragraph><paragraph id="HE874097F9A8D485F895E543CF5105FB9"><enum>(2)</enum><header>Obligations of
remittance transfer providers</header><text>The Board shall prescribe rules to
implement appropriate standards or conditions of, liability of a remittance
transfer provider, including a provider who acts through an agent or authorized
delegate. An agency charged with enforcing the requirements of this section, or
rules prescribed by the Board under this section, may consider, in any action
or other proceeding against a remittance transfer provider, the extent to which
the provider had established and maintained policies or procedures for
compliance, including policies, procedures, or other appropriate oversight
measures designed to assure compliance by an agent or authorized delegate
acting for such provider.</text>
</paragraph></subsection><subsection id="HD2AAE0CD1E3B4345884C8064862F2887"><enum>(g)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="H02294769840C46F5A1B99A4A0DC11350"><enum>(1)</enum><text>the term
<term>designated recipient</term> means any person located in a foreign country
and identified by the sender as the authorized recipient of a remittance
transfer to be made by a remittance transfer provider, except that a designated
recipient shall not be deemed to be a consumer for purposes of this Act;</text>
</paragraph><paragraph id="H5A8A9BF245954F0787ACE4A10BEA027A"><enum>(2)</enum><text>the term
<term>remittance transfer</term>—</text>
<subparagraph id="HAA9210F879EF45D5B880321ECDA4037E"><enum>(A)</enum><text>means the
electronic (as defined in section 106(2) of the Electronic Signatures in Global
and National Commerce Act (15 U.S.C. 7006(2))) transfer of funds requested by a
sender located in any State to a designated recipient that is initiated by a
remittance transfer provider, whether or not the sender holds an account with
the remittance transfer provider or whether or not the remittance transfer is
also an electronic fund transfer, as defined in section 903; and</text>
</subparagraph><subparagraph id="HE51A1CFFA7E64C41BA5D407EDDC2D69F"><enum>(B)</enum><text>does not include a
transfer described in subparagraph (A) in an amount that is equal to or lesser
than the amount of a small-value transaction determined, by rule, to be
excluded from the requirements under section 906(a);</text>
</subparagraph></paragraph><paragraph id="H0A97BAAA3C2C430D96A3CDC8313E60B9"><enum>(3)</enum><text>the term
<term>remittance transfer provider</term> means any person or financial
institution that provides remittance transfers for a consumer in the normal
course of its business, whether or not the consumer holds an account with such
person or financial institution; and</text>
</paragraph><paragraph id="H76C55FD6DA9343B6AD65C2E9C3461D80"><enum>(4)</enum><text>the term
<term>sender</term> means a consumer who requests a remittance provider to send
a remittance transfer for the consumer to a designated
recipient.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6A48A00664E3424AADF26E10E6685DE9"><enum>(b)</enum><header>Automated
clearinghouse system</header>
<paragraph id="H383D08D5C18D4A45960267841F908612"><enum>(1)</enum><header>Expansion of
system</header><text>The Board of Governors shall work with the Federal reserve
banks and the Department of the Treasury to expand the use of the automated
clearinghouse system and other payment mechanisms for remittance transfers to
foreign countries, with a focus on countries that receive significant
remittance transfers from the United States, based on—</text>
<subparagraph id="H13205EEDC0E54C849F5971CAE68AD9C9"><enum>(A)</enum><text>the number,
volume, and size of such transfers;</text>
</subparagraph><subparagraph id="H19780C55B4874CF28CCBF758EF55AD6D"><enum>(B)</enum><text>the significance
of the volume of such transfers relative to the external financial flows of the
receiving country, including—</text>
<clause id="HB2DA9EF415464D82B59482E9A8904DD8"><enum>(i)</enum><text>the
total amount transferred; and</text>
</clause><clause id="H1D3A26491A8249A99C3A2AD9A8FD158F"><enum>(ii)</enum><text>the
total volume of payments made by United States Government agencies to
beneficiaries and retirees living abroad;</text>
</clause></subparagraph><subparagraph id="H0F1CBBEFE87741E09743DA7DEB41DD2B"><enum>(C)</enum><text>the feasibility of
such an expansion; and</text>
</subparagraph><subparagraph id="H1C160EF3C46E41A9AA90F152B0635E54"><enum>(D)</enum><text>the ability of the
Federal Reserve System to establish payment gateways in different geographic
regions and currency zones to receive remittance transfers and route them
through the payments systems in the destination countries.</text>
</subparagraph></paragraph><paragraph id="H713E9D1D26E8456DAA1BA4E5DF23D533"><enum>(2)</enum><header>Report to
congress</header><text>Not later than one calendar year after the date of
enactment of this Act, and on April 30 biennially thereafter during the 10-year
period beginning on that date of enactment, the Board of Governors shall submit
a report to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives on the
status of the automated clearinghouse system and its progress in complying with
the requirements of this subsection. The report shall include an analysis of
adoption rates of International ACH Transactions rules and formats, the
efficacy of increasing adoption rates, and potential recommendations to
increase adoption.</text>
</paragraph></subsection><subsection id="H25CCF141DB6748CA974EBFFA1FE45B60"><enum>(c)</enum><header>Expansion of
financial institution provision of remittance transfers</header>
<paragraph id="HE7617444A7074A209F3B6681539A5ABC"><enum>(1)</enum><header>Provision of
guidelines to institutions</header><text>Each of the Federal banking agencies
and the National Credit Union Administration shall provide guidelines to
financial institutions under the jurisdiction of the agency regarding the
offering of low-cost remittance transfers and no-cost or low-cost basic
consumer accounts, as well as agency services to remittance transfer
providers.</text>
</paragraph><paragraph id="H25D5258661354A44B270203DB650F15D"><enum>(2)</enum><header>Assistance to
financial literacy commission</header><text>As part of its duties as members of
the Financial Literacy and Education Commission, the Bureau, the Federal
banking agencies, and the National Credit Union Administration shall assist the
Financial Literacy and Education Commission in executing the Strategy for
Assuring Financial Empowerment (or the <quote>SAFE Strategy</quote>), as it
relates to remittances.</text>
</paragraph></subsection><subsection id="H2D1C5CA6C3D744489134306C124C91AB"><enum>(d)</enum><header>Federal Credit
Union Act conforming amendment</header><text display-inline="yes-display-inline">Paragraph (12) of section 107 of the
<act-name parsable-cite="FCUA">Federal Credit Union Act</act-name> (12 U.S.C.
1757) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H68045B41033044F9BA7BD7DE0F9803E7" style="OLC">
<paragraph id="H403CA82F215C402EB69E98CD12210BB6"><enum>(12)</enum><text>in accordance
with regulations prescribed by the Board—</text>
<subparagraph id="HD773C3A175B044B0A57716185019C0FE"><enum>(A)</enum><text>to sell, to
persons in the field of membership, negotiable checks (including travelers
checks), money orders, and other similar money transfer instruments (including
international and domestic electronic fund transfers and remittance transfers,
as defined in section 919 of the Electronic Fund Transfer Act); and</text>
</subparagraph><subparagraph id="H4C9BFCBE369C4C74830725ABD21A3C27"><enum>(B)</enum><text>to cash checks and
money orders for persons in the field of membership for a
fee;</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H88F4E22FC7AD455785320C24CF5F4156"><enum>(e)</enum><header>Report on
feasibility of and impediments to use of remittance history in calculation of
credit score</header><text>Before the end of the 365-day period beginning on
the date of enactment of this Act, the Director shall submit a report to the
President, the Committee on Banking, Housing, and Urban Affairs of the Senate,
and the Committee on Financial Services of the House of Representatives
regarding—</text>
<paragraph id="HA00ED2A76D6A46EEA86BA33D2FEED142"><enum>(1)</enum><text>the manner in
which the remittance history of a consumer could be used to enhance the credit
score of the consumer;</text>
</paragraph><paragraph id="H099F491DF39142429EFA8DF4B8534F1C"><enum>(2)</enum><text>the current legal
and business model barriers and impediments that impede the use of the
remittance history of the consumer to enhance the credit score of the consumer;
and</text>
</paragraph><paragraph id="HC485AE3408F6439CB898AD1B13606374"><enum>(3)</enum><text>recommendations on
the manner in which maximum transparency and disclosure to consumers of
exchange rates for remittance transfers subject to this title and the
amendments made by this title may be accomplished, whether or not such exchange
rates are known at the time of origination or payment by the consumer for the
remittance transfer, including disclosure to the sender of the actual exchange
rate used and the amount of currency that the recipient of the remittance
transfer received, using the values of the currency into which the funds were
exchanged, as contained in sections 919(a)(2)(D) and 919(a)(3) of the
Electronic Fund Transfer Act (as amended by this section).</text>
</paragraph></subsection></section><section id="HD0B40EB50D9745209552E2134C2DB873"><enum>1074.</enum><header>Department of
the Treasury study on ending the conservatorship of Fannie Mae, Freddie Mac,
and reforming the housing finance system</header>
<subsection id="H1DBD05AD594344F1B8B8460C94172411"><enum>(a)</enum><header>Study
required</header>
<paragraph id="H16164FAB940241D6B972D96E4488AA56"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall conduct a study of
and develop recommendations regarding the options for ending the
conservatorship of the Federal National Mortgage Association (in this section
referred to as <quote>Fannie Mae</quote>) and the Federal Home Loan Mortgage
Corporation (in this section referred to as <quote>Freddie Mac</quote>), while
minimizing the cost to taxpayers, including such options as—</text>
<subparagraph id="H760DBC60BA264BDC991BEEF0215560DE"><enum>(A)</enum><text>the gradual
wind-down and liquidation of such entities;</text>
</subparagraph><subparagraph id="H876B0CE2CA254B61B4778A644ACD502A"><enum>(B)</enum><text>the privatization
of such entities;</text>
</subparagraph><subparagraph id="HB30E7955D73F48868E7509C738AC3C5B"><enum>(C)</enum><text>the incorporation
of the functions of such entities into a Federal agency;</text>
</subparagraph><subparagraph id="HDEB27B42114B45B88C5788641D959C9E"><enum>(D)</enum><text>the dissolution of
Fannie Mae and Freddie Mac into smaller companies; or</text>
</subparagraph><subparagraph id="H660E8ACC8A384E448E1F147F2E6E6FE2"><enum>(E)</enum><text>any other measures
the Secretary determines appropriate.</text>
</subparagraph></paragraph><paragraph id="H9DC93F839558473CA67E32C513AAA10D"><enum>(2)</enum><header>Analyses</header><text>The
study required under paragraph (1) shall include an analysis of—</text>
<subparagraph id="HA3C1F19FF2A7491F9499236B87AF73F4"><enum>(A)</enum><text>the role of the
Federal Government in supporting a stable, well-functioning housing finance
system, and whether and to what extent the Federal Government should bear risks
in meeting Federal housing finance objectives;</text>
</subparagraph><subparagraph id="H57AC1942BABE4E0AB0C5AE48C973F038"><enum>(B)</enum><text>how the current
structure of the housing finance system can be improved;</text>
</subparagraph><subparagraph id="H1D2546B0EA0D4279AD295BBAD24F7859"><enum>(C)</enum><text>how the housing
finance system should support the continued availability of mortgage credit to
all segments of the market;</text>
</subparagraph><subparagraph id="H21893E0C6FCF487386530E9EBBB214FB"><enum>(D)</enum><text>how the housing
finance system should be structured to ensure that consumers continue to have
access to 30-year, fixed rate, pre-payable mortgages and other mortgage
products that have simple terms that can be easily understood;</text>
</subparagraph><subparagraph id="HBA26F617D5824702B2E639E2B8005C31"><enum>(E)</enum><text>the role of the
Federal Housing Administration and the Department of Veterans Affairs in a
future housing system;</text>
</subparagraph><subparagraph id="H4B390EA250F0427FA296398CE1AC9E70"><enum>(F)</enum><text>the impact of
reforms of the housing finance system on the financing of rental
housing;</text>
</subparagraph><subparagraph id="H90624EBC71B14B8997A335081ADFCF9A"><enum>(G)</enum><text>the impact of
reforms of the housing finance system on secondary market liquidity;</text>
</subparagraph><subparagraph id="H878236917613447797F33FB73298F188"><enum>(H)</enum><text>the role of
standardization in the housing finance system;</text>
</subparagraph><subparagraph id="H7E5E4F9D8FCD40A3B65D75BAE9F4C808"><enum>(I)</enum><text>how housing
finance systems in other countries offer insights that can help inform options
for reform in the United States; and</text>
</subparagraph><subparagraph id="H7D7E427D268C48F49333114610FB1EF4"><enum>(J)</enum><text>the options for
transition to a reformed housing finance system.</text>
</subparagraph></paragraph></subsection><subsection id="HBB9AEAE3E8114B94855A840EECA85BE8"><enum>(b)</enum><header>Report and
recommendations</header><text>Not later than January 31, 2011, the Secretary of
the Treasury shall submit the report and recommendations required under
subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives.</text>
</subsection></section><section commented="no" id="H002F41C2D2F1448D8D5850D1F1053297"><enum>1075.</enum><header>Reasonable
fees and rules for payment card transactions</header>
<subsection commented="no" id="HA8851873D53E4663986E4E9D1172BAF0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended—</text>
<paragraph commented="no" id="H44B9ECD6D6E14B2DA36E02DD0AE27B95"><enum>(1)</enum><text>by redesignating
sections 920 and 921 as sections 921 and 922, respectively; and</text>
</paragraph><paragraph commented="no" id="HE3D65FB7F3284CEEA8F37ECD4848BA7F"><enum>(2)</enum><text>by inserting after
section 919 the following:</text>
<quoted-block display-inline="no-display-inline" id="H07487F9DCACC4E6AA4731EE1929A7B19" style="OLC">
<section id="H719941F483D04C89A8C43F25C4168771"><enum>920.</enum><header>Reasonable fees
and rules for payment card transactions</header>
<subsection id="H46FFC3D7B3894C21A44CD6BDEB7A3384"><enum>(a)</enum><header>Reasonable
interchange transaction fees for electronic debit transactions</header>
<paragraph id="H235BF5CCF0AA44FF85AEDEF223FAAE27"><enum>(1)</enum><header>Regulatory
authority over interchange transaction fees</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H669B8051087F48939FAECA6F2F1A31E5"><enum>(2)</enum><header>Reasonable
interchange transaction fees</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HCE3F7D7C5DCF46328F3900BCB76247BC"><enum>(3)</enum><header>Rulemaking
required</header>
<subparagraph id="H93F7FCABD67E431A96CB1AAE719437CB"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="HC3650B61B72A42F9B4E65A2FC7768452"><enum>(B)</enum><header>Information
collection</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="H3083A2805D87497FBA0F952254279331"><enum>(4)</enum><header>Considerations;
consultation</header><text>In prescribing regulations under paragraph (3)(A),
the Board shall—</text>
<subparagraph id="H305D3C8FA58642359A11344EBB4ABC5F"><enum>(A)</enum><text>consider the
functional similarity between—</text>
<clause id="HFD09528821F849CC9FE2965E33976CB9"><enum>(i)</enum><text>electronic debit
transactions; and</text>
</clause><clause id="HF9C80065121244728CA7F1BE7B5C1B9A"><enum>(ii)</enum><text>checking
transactions that are required within the Federal Reserve bank system to clear
at par;</text>
</clause></subparagraph><subparagraph id="HA8FD8F59C75A4FB1B126C45BCB22BD8E"><enum>(B)</enum><text>distinguish
between—</text>
<clause id="HFCA3ABFEA6E94C8EA69800B43EBF7805"><enum>(i)</enum><text>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</text>
</clause><clause id="H7D6F88568ED74CB28516C2674A94B790"><enum>(ii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="HA3CF816A438643F894251A515B62407A"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H66B988D38741486F9F473B60FA440DC0"><enum>(5)</enum><header>Adjustments to
interchange transaction fees for fraud prevention costs</header>
<subparagraph id="H9498DA5EE64B4D07B6442E192AF0AE5F"><enum>(A)</enum><header>Adjustments</header><text>The
Board may allow for an adjustment to the fee amount received or charged by an
issuer under paragraph (2), if—</text>
<clause id="HB369F0A2E0424ED5B9927E7B5351C6F6"><enum>(i)</enum><text>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</text>
</clause><clause id="HFC0AC38CB66147768668D2FABE8263E8"><enum>(ii)</enum><text>the issuer
complies with the fraud-related standards established by the Board under
subparagraph (B), which standards shall—</text>
<subclause id="HF9856631E7FF49BCB0FC4D491F4BA390"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H17A41A54790D4A3B872EB091D209D331"><enum>(II)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="H7E02DC4370904A68B7028737BDC5B8F1"><enum>(B)</enum><header>Rulemaking
required</header>
<clause id="H4208956E8749475583834A9B7A173B66"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H4BAEA1483587491AA5BB8CD413231AC7"><enum>(ii)</enum><header>Factors for
consideration</header><text>In issuing the standards and prescribing
regulations under this paragraph, the Board shall consider—</text>
<subclause id="H47F3DD7CEB6F43AABDB37C6C2AB40E0D"><enum>(I)</enum><text>the nature, type,
and occurrence of fraud in electronic debit transactions;</text>
</subclause><subclause id="H4F4C4ED2FA3A438F8D83EF9FB4972D77"><enum>(II)</enum><text>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;</text>
</subclause><subclause id="HF88C3DAE0591417CB20933526C4B12D1"><enum>(III)</enum><text>the available
and economical means by which fraud on electronic debit transactions may be
reduced;</text>
</subclause><subclause id="H96460709990B41A88C4816C34A92EB28"><enum>(IV)</enum><text>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);</text>
</subclause><subclause id="H7C9B43F9DA32402B95DEDE2C1A87A6D1"><enum>(V)</enum><text>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);</text>
</subclause><subclause id="HA239FDFF63AE435DBDAE106E1F8C0821"><enum>(VI)</enum><text>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</text>
</subclause><subclause id="H4D9803270FAF404B8BB9B4CCABAE497E"><enum>(VII)</enum><text>such other
factors as the Board considers appropriate.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H50EBDF16F0F34C14A6CB835253339762"><enum>(6)</enum><header>Exemption for
small issuers</header>
<subparagraph id="H9635562FC56B469CB633463419223557"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="H7E47E0A5FA68438CAE229269283F7C37"><enum>(B)</enum><header>Definition</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HF7D9147BEAD64CDABB73E7538166D44F"><enum>(7)</enum><header>Exemption for
government-administered payment programs and reloadable prepaid cards</header>
<subparagraph id="HF9ED870BF8C54BC6B5A245C3CC93828F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<clause id="HF2B20FDCF7254965AA46D97F1AA9C2ED"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="HECA80C8136CD47768AFC941F438213BC"><enum>(ii)</enum><text>a
plastic card, payment code, or device that is—</text>
<subclause id="H905927A8E1E34032955D3DFF54FACCEE"><enum>(I)</enum><text>linked to funds,
monetary value, or assets which are purchased or loaded on a prepaid
basis;</text>
</subclause><subclause id="H6EF30DEC6B7F450EAB769300B02582C8"><enum>(II)</enum><text>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);</text>
</subclause><subclause id="HD3C0BC01101047229EE725A478F80D06"><enum>(III)</enum><text>redeemable at
multiple, unaffiliated merchants or service providers, or automated teller
machines;</text>
</subclause><subclause id="H514AD1B6C114481AB912D5D492A1FF5E"><enum>(IV)</enum><text>used to transfer
or debit funds, monetary value, or other assets; and</text>
</subclause><subclause id="H534A7933D5674869BE8088E67697A8F2"><enum>(V)</enum><text>reloadable and not
marketed or labeled as a gift card or gift certificate.</text>
</subclause></clause></subparagraph><subparagraph id="H31D3321A35444B8BB22E31913AE40F53"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">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:</text>
<clause id="H95F1870540064D8E9884232DD5648F36"><enum>(i)</enum><text>A
fee for an overdraft, including a shortage of funds or a transaction processed
for an amount exceeding the account balance.</text>
</clause><clause id="H5AF360B5486E473099A00829AFAFAC5E"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="HD814E4B2FE53497E8930CFC45DEAB69F"><enum>(C)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of subparagraph (B), the term
<quote>designated automated teller machine network</quote> means either—</text>
<clause id="HB456424F65494629B94913A317B893FB"><enum>(i)</enum><text>all automated
teller machines identified in the name of the issuer; or</text>
</clause><clause id="HABED4AA6C55F481F869442D02611E141"><enum>(ii)</enum><text>any network of
automated teller machines identified by the issuer that provides reasonable and
convenient access to the issuer's customers.</text>
</clause></subparagraph><subparagraph id="H80A06BD4904647B79DB214B63F37581F"><enum>(D)</enum><header>Reporting</header><text display-inline="yes-display-inline">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 —</text>
<clause id="H5E8E5B1C1C8649A5860A814CFB643AB3"><enum>(i)</enum><text>the prevalence of
the use of general-use prepaid cards in Federal, State or local
government-administered payment programs; and</text>
</clause><clause id="HFC39D64B88B8400FA46DBEC51D76A522"><enum>(ii)</enum><text>the interchange
transaction fees and cardholder fees charged with respect to the use of such
general-use prepaid cards.</text>
</clause></subparagraph></paragraph><paragraph id="H5EDDABEF6EC44BA3B3DFC36C7B64317C"><enum>(8)</enum><header>Regulatory
authority over network fees</header>
<subparagraph id="H18FAEFCB08014122B52FDCC98C79F9A8"><enum>(A)</enum><header>In
general</header><text>The Board may prescribe regulations, pursuant to section
553 of title 5, United States Code, regarding any network fee.</text>
</subparagraph><subparagraph id="H3E4AF1FD402D448A980FB93257B68E89"><enum>(B)</enum><header>Limitation</header><text>The
authority under subparagraph (A) to prescribe regulations shall be limited to
regulations to ensure that—</text>
<clause id="H7D5181FB3FF14650A3237EE7B0E9A553"><enum>(i)</enum><text>a
network fee is not used to directly or indirectly compensate an issuer with
respect to an electronic debit transaction; and</text>
</clause><clause id="H940ED53979E94F26BCC30A24464E5743"><enum>(ii)</enum><text>a
network fee is not used to circumvent or evade the restrictions of this
subsection and regulations prescribed under such subsection.</text>
</clause></subparagraph><subparagraph id="H00D5C476D9B84003893AC8A69BDAB73F"><enum>(C)</enum><header>Rulemaking
required</header><text>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).</text>
</subparagraph></paragraph><paragraph id="HF9192B362F6E47EF8ABB704D9085B79A"><enum>(9)</enum><header>Effective
date</header><text>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.</text>
</paragraph></subsection><subsection id="H58575A54B9334BCEB34098E3B0662FB2"><enum>(b)</enum><header>Limitation on
payment card network restrictions</header>
<paragraph id="H23B361CE89B54F9998793A543309B0D7"><enum>(1)</enum><header>Prohibitions
against exclusivity arrangements</header>
<subparagraph id="HC3A4102E3B59481CA45F6C8ADD4931DC"><enum>(A)</enum><header>No exclusive
network</header><text>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—</text>
<clause id="HAB018392A38B4A3EA16B59202407E40A"><enum>(i)</enum><text>1
such network; or</text>
</clause><clause id="HA55F1B31E991471B91D4F6386085E646"><enum>(ii)</enum><text display-inline="yes-display-inline">2 or more such networks which are owned,
controlled, or otherwise operated by —</text>
<subclause id="H946130D565AA40D3868ACB8BE7344A84"><enum>(I)</enum><text>affiliated
persons; or</text>
</subclause><subclause id="H4C37845662F54E0FBA1460C4479D9390"><enum>(II)</enum><text>networks
affiliated with such issuer.</text>
</subclause></clause></subparagraph><subparagraph id="H91EF5D4C874C4E028E50803A749B73CE"><enum>(B)</enum><header>No routing
restrictions</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H3A8896DBC38B478ABAA39CC5FF0349F2"><enum>(2)</enum><header>Limitation on
restrictions on offering discounts for use of a form of payment</header>
<subparagraph id="H38302D8EFF6E47F4B29EB6F9CA86032A"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="HC01CF5975D9C4A6289A2BA6DA9FD8B3C"><enum>(i)</enum><text>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;</text>
</clause><clause id="H2475DB43721E4180A2B090D0FB34D899"><enum>(ii)</enum><text>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</text>
</clause><clause id="H76F827EE137D4046BBB1F37994F86803"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H33AB1F33C64B436FA4E7EF9DC6AF8F50"><enum>(B)</enum><header>Lawful
discounts</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H56EEFB4E10D1442BAFC78911B08E9EAE"><enum>(3)</enum><header>Limitation on
restrictions on setting transaction minimums or maximums</header>
<subparagraph id="H4DA815FDD07245DE9EF548C6CB3F7A82"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H95B9CBE0B6C14D80A5FB5EDC6F7CBE76"><enum>(i)</enum><text>of
any person to set a minimum dollar value for the acceptance by that person of
credit cards, to the extent that —</text>
<subclause id="HDA8C977F85F949B59FAA1C2F1BAE491B"><enum>(I)</enum><text>such minimum
dollar value does not differentiate between issuers or between payment card
networks; and</text>
</subclause><subclause id="HA5A434AB0DCD479F852C4A454472769F"><enum>(II)</enum><text>such minimum
dollar value does not exceed $10.00; or</text>
</subclause></clause><clause id="HFCD8F76B99C04740B4EA09A806A71699"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HB801E4AFA20C442681F497D15BD56D76"><enum>(B)</enum><header>Increase in
minimum dollar amount</header><text display-inline="yes-display-inline">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).</text>
</subparagraph></paragraph><paragraph id="H1D758BF8838D4177BB917A50F90F46E0"><enum>(4)</enum><header>Rule of
construction:</header><text>No provision of this subsection shall be construed
to authorize any person—</text>
<subparagraph id="HE09CB013E8934E60B66C5FB97D0AACF5"><enum>(A)</enum><text>to discriminate
between debit cards within a payment card network on the basis of the issuer
that issued the debit card; or</text>
</subparagraph><subparagraph id="H05566BD596834B5191B162CD31FA4AAC"><enum>(B)</enum><text>to discriminate
between credit cards within a payment card network on the basis of the issuer
that issued the credit card.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H0840E4965CFB4915907400F6ADE11F52"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph id="HCA5E16CFCA08459B959BFA2272C58278"><enum>(1)</enum><header>Affiliate</header><text display-inline="yes-display-inline">The term <quote>affiliate</quote> means any
company that controls, is controlled by, or is under common control with
another company.</text>
</paragraph><paragraph id="H67F0FD712B5649ADA7880CD793653460"><enum>(2)</enum><header>Debit
card</header><text>The term <quote>debit card</quote>—</text>
<subparagraph id="H92E49AB0E9F54AD195B955104BDC6D0B"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HDFF5C1729B28469B81A1C80F3FBD1889"><enum>(B)</enum><text>includes a
general-use prepaid card, as that term is defined in section 915(a)(2)(A);
and</text>
</subparagraph><subparagraph id="H998C9FCF37054D7283C25C6C847E6347"><enum>(C)</enum><text>does not include
paper checks.</text>
</subparagraph></paragraph><paragraph id="H9D7371B799CC4B11A878B166931812E7"><enum>(3)</enum><header>Credit
card</header><text>The term <quote>credit card</quote> has the same meaning as
in section 103 of the Truth in Lending Act.</text>
</paragraph><paragraph id="H739B3B9BCD65480D8F997D184621FFBE"><enum>(4)</enum><header>Discount</header><text>The
term <quote>discount</quote>—</text>
<subparagraph id="H8412B159C3044B84B702F6E09B6626D3"><enum>(A)</enum><text>means a reduction
made from the price that customers are informed is the regular price;
and</text>
</subparagraph><subparagraph id="H78BEC7CB9D264EEDBAC5BDC37654A8E1"><enum>(B)</enum><text>does not include
any means of increasing the price that customers are informed is the regular
price.</text>
</subparagraph></paragraph><paragraph id="H78DB9B066AEA49EC9079B2CA2B3D6ACE"><enum>(5)</enum><header>Electronic debit
transaction</header><text>The term <quote>electronic debit transaction</quote>
means a transaction in which a person uses a debit card.</text>
</paragraph><paragraph id="H078CF6AE486B48F8A7BB7D116B0EB559"><enum>(6)</enum><header>Federal
agency</header><text>The term <quote>Federal agency</quote> means—</text>
<subparagraph id="HDEF6050BB09B40BC8F88B57BE2A1E546"><enum>(A)</enum><text>an agency (as
defined in section 101 of title 31, United States Code); and</text>
</subparagraph><subparagraph id="H616A8769D2584333A1E0A53A42A4139E"><enum>(B)</enum><text>a Government
corporation (as defined in section 103 of title 5, United States Code).</text>
</subparagraph></paragraph><paragraph id="H644BEDE006904BDAAF63829D6E89830B"><enum>(7)</enum><header>Institution of
higher education</header><text display-inline="yes-display-inline">The term
<quote>institution of higher education</quote> has the same meaning as in 101
and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001, 1002).</text>
</paragraph><paragraph id="H9A4F5D5854B441E9A8D2CD61FFBA6259"><enum>(8)</enum><header>Interchange
transaction fee</header><text>The term <quote>interchange transaction
fee</quote> 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.</text>
</paragraph><paragraph id="H1B9AAD20D9E849B0B206AD063C1C5367"><enum>(9)</enum><header>Issuer</header><text>The
term <quote>issuer</quote> means any person who issues a debit card, or credit
card, or the agent of such person with respect to such card.</text>
</paragraph><paragraph id="HB35E9DA1B7C04429B496FF4B4D3E1C4B"><enum>(10)</enum><header>Network
fee</header><text>The term <quote>network fee</quote> means any fee charged and
received by a payment card network with respect to an electronic debit
transaction, other than an interchange transaction fee.</text>
</paragraph><paragraph id="H63926B71DC3242B0BE514FE7A5546AAD"><enum>(11)</enum><header>Payment card
network</header><text>The term <quote>payment card network</quote> 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.</text>
</paragraph></subsection><subsection id="H78B32AE1185C48119E2F15881F129331"><enum>(d)</enum><header>Enforcement</header>
<paragraph id="H3AC269A8AC934E30A18F454D83979ECC"><enum>(1)</enum><header>In
general</header><text>Compliance with the requirements imposed under this
section shall be enforced under section 918.</text>
</paragraph><paragraph id="H98DECFC6934449C4955ED112EBC84D0A"><enum>(2)</enum><header>Exception</header><text>Sections
916 and 917 shall not apply with respect to this section or the requirements
imposed pursuant to this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HAA46B761820B4E2C896E28A5E28D34FB"><enum>(b)</enum><header>Amendment to the
Food and Nutrition Act of 2008</header><text display-inline="yes-display-inline">Section 7(h)(10) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2016(h)(10)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA6803FC2DB8E4126BA7345105261A41C" style="OLC">
<paragraph id="H875A2FDC0F8F4EB2BFD3A550D2369582"><enum>(10)</enum><header>Federal law not
applicable</header><text display-inline="yes-display-inline">Section 920 of the
Electronic Fund Transfer Act shall not apply to electronic benefit transfer or
reimbursement systems under this
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC3668E4D99424CB1A5149A35EE915AC3"><enum>(c)</enum><header>Amendment to the
Farm Security and Rural Investment Act of 2002</header><text display-inline="yes-display-inline">Section 4402 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3007) is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H18A72D3D1A16414290E822273AA75C0A" style="OLC">
<subsection id="H47B4021748944999BBECBD70126BF54D"><enum>(f)</enum><header>Federal law not
applicable</header><text display-inline="yes-display-inline">Section 920 of the
Electronic Fund Transfer Act shall not apply to electronic benefit transfer
systems established under this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2CE7318BA353491F9D942055A9CD9952"><enum>(d)</enum><header>Amendment to the
Child Nutrition Act of 1966</header><text display-inline="yes-display-inline">Section 11 of the Child Nutrition Act of
1966 (42 U.S.C. 1780) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E6813A008354AFAB6E02DCF15162906" style="OLC">
<subsection id="H4D50A7C928EF4C6BA3C0F2F5DBF398F7"><enum>(c)</enum><header>Federal law not
applicable</header><text display-inline="yes-display-inline">Section 920 of the
Electronic Fund Transfer Act shall not apply to electronic benefit transfer
systems established under this Act or the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H1C898ABAECFF4F3EB9AF024EBC01337B"><enum>1076.</enum><header>Reverse
mortgage study and regulations</header>
<subsection id="HC7F262C1FFF64617A8FA369C2F9AB35D"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than 1 year after the designated
transfer date, the Bureau shall conduct a study on reverse mortgage
transactions.</text>
</subsection><subsection id="H98BCC9EB47DE4ECE98F8640336EA6FDB"><enum>(b)</enum><header>Regulations</header>
<paragraph id="H8A2B2E1715E944899F8942146C743198"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Bureau
determines through the study required under subsection (a) that conditions or
limitations on reverse mortgage transactions are necessary or appropriate for
accomplishing the purposes and objectives of this title, including protecting
borrowers with respect to the obtaining of reverse mortgage loans for the
purpose of funding investments, annuities, and other investment products and
the suitability of a borrower in obtaining a reverse mortgage for such
purpose.</text>
</paragraph><paragraph id="H09163E3D6E7941609C102205FB9026E7"><enum>(2)</enum><header>Identified
practices and integrated disclosures</header><text display-inline="yes-display-inline">The regulations prescribed under paragraph
(1) may, as the Bureau may so determine—</text>
<subparagraph id="H7C86BD520C90489EA970F721A8FB027D"><enum>(A)</enum><text>identify any
practice as unfair, deceptive, or abusive in connection with a reverse mortgage
transaction; and</text>
</subparagraph><subparagraph id="H8ADC6D49F4B5443BA29C731C3B067A6C"><enum>(B)</enum><text>provide for an
integrated disclosure standard and model disclosures for reverse mortgage
transactions, consistent with section 4302(d), that combines the relevant
disclosures required under the Truth in Lending Act (15 U.S.C. 1601 et seq.)
and the Real Estate Settlement Procedures Act, with the disclosures required to
be provided to consumers for Home Equity Conversion Mortgages under section 255
of the National Housing Act.</text>
</subparagraph></paragraph></subsection><subsection id="H2331540352334ED1A34528F6DF94D4D5"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">This section
shall not be construed as limiting the authority of the Bureau to issue
regulations, orders, or guidance that apply to reverse mortgages prior to the
completion of the study required under subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H820980F4BEDC4B1FB7BCCC75B996BAA4"><enum>1077.</enum><header display-inline="yes-display-inline">Report on private education loans and
private educational lenders</header>
<subsection commented="no" display-inline="no-display-inline" id="H1F245B337F174D18B3772DDFBEF9E82E"><enum>(a)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
enactment of this Act, the Director and the Secretary of Education, in
consultation with the Commissioners of the Federal Trade Commission, and the
Attorney General of the United States, shall submit a report to 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, on
private education loans (as that term is defined in section 140 of the Truth in
Lending Act (15 U.S.C. 1650)) and private educational lenders (as that term is
defined in such section).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6B0D8E98234B4B93A9B9F94DECD6EB76"><enum>(b)</enum><header display-inline="yes-display-inline">Content</header><text display-inline="yes-display-inline">The report required by this section shall
examine, at a minimum—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA1DCE8985CD549C087A91BAF9B844DD6"><enum>(1)</enum><text display-inline="yes-display-inline">the growth and changes of the private
education loan market in the United States;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA7262D6176344B249200BBE94BEF4F9A"><enum>(2)</enum><text display-inline="yes-display-inline">factors influencing such growth and
changes;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25F479A7B20D4659815E42F47791443F"><enum>(3)</enum><text display-inline="yes-display-inline">the extent to which students and parents of
students rely on private education loans to finance postsecondary education and
the private education loan indebtedness of borrowers;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE10C40210FF746A48E6E6BCBB59EC151"><enum>(4)</enum><text display-inline="yes-display-inline">the characteristics of private education
loan borrowers, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE0EBA4AA9F0F4B3BA7150476B48706C0"><enum>(A)</enum><text display-inline="yes-display-inline">the types of institutions of higher
education that they attend;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1014DF3900FA4F689D517B02D1FF5940"><enum>(B)</enum><text display-inline="yes-display-inline">socioeconomic characteristics (including
income and education levels, racial characteristics, geographical background,
age, and gender);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA5E3D80735744A5CB0A5D73D69BE5D89"><enum>(C)</enum><text display-inline="yes-display-inline">what other forms of financing borrowers use
to pay for education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H92D76828D7B244A2A9AE177801A29730"><enum>(D)</enum><text display-inline="yes-display-inline">whether they exhaust their Federal loan
options before taking out a private loan;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H177D1614B7B249C4B4D1BE543B1F84DE"><enum>(E)</enum><text display-inline="yes-display-inline">whether such borrowers are dependent or
independent students (as determined under part F of title IV of the Higher
Education Act of 1965) or parents of such students;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H812EAD011203446B86FDCB2AA6CD8A81"><enum>(F)</enum><text display-inline="yes-display-inline">whether such borrowers are students
enrolled in a program leading to a certificate, license, or credential other
than a degree, an associates degree, a baccalaureate degree, or a graduate or
professional degree; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H25A285B3F16C4FB99F36915CB83C3038"><enum>(G)</enum><text display-inline="yes-display-inline">if practicable, employment and repayment
behaviors;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB681DB2D8D0B4E99AF6D4C5CC3FE7FC0"><enum>(5)</enum><text display-inline="yes-display-inline">the characteristics of private educational
lenders, including whether such creditors are for-profit, non-profit, or
institutions of higher education;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50500C21DA694AF48B2F68127935624C"><enum>(6)</enum><text display-inline="yes-display-inline">the underwriting criteria used by private
educational lenders, including the use of cohort default rate (as such term is
defined in section 435(m) of the Higher Education Act of 1965);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93C59514223D4EC18AF53DA608C8474C"><enum>(7)</enum><text display-inline="yes-display-inline">the terms, conditions, and pricing of
private education loans;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H861935E9036F4807A44213D7178DD716"><enum>(8)</enum><text display-inline="yes-display-inline">the consumer protections available to
private education loan borrowers, including the effectiveness of existing
disclosures and requirements and borrowers’ awareness and understanding about
terms and conditions of various financial products;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6CABA93BB1B49D8844A1D792DB61BFB"><enum>(9)</enum><text display-inline="yes-display-inline">whether Federal regulators and the public
have access to information sufficient to provide them with assurances that
private education loans are provided in accord with the Nation’s fair lending
laws and that allows public officials to determine lender compliance with fair
lending laws; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H384F4EE59E1B4FFBBD6A86613B3FC666"><enum>(10)</enum><text display-inline="yes-display-inline">any statutory or legislative
recommendations necessary to improve consumer protections for private education
loan borrowers and to better enable Federal regulators and the public to
ascertain private educational lender compliance with fair lending laws.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H30B187AE7E3E4169B828080E0BB5763D"><enum>1078.</enum><header>Study and
report on credit scores</header>
<subsection commented="no" display-inline="no-display-inline" id="HFCEB5078C3A34BAE85E15B9AF54C35FB"><enum>(a)</enum><header>Study</header><text>The
Bureau shall conduct a study on the nature, range, and size of variations
between the credit scores sold to creditors and those sold to consumers by
consumer reporting agencies that compile and maintain files on consumers on a
nationwide basis (as defined in section 603(p) of the Fair Credit Reporting
Act; 15 U.S.C. 1681a(p)), and whether such variations disadvantage
consumers.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H302AAD2723084B4C96B027A9DFE6C459"><enum>(b)</enum><header>Report to
Congress</header><text>The Bureau shall submit a report to Congress on the
results of the study conducted under subsection (a) not later than 1 year after
the date of enactment of this Act.</text>
</subsection></section><section id="H062B57CC522E4F81A6D36822645F1F03"><enum>1079.</enum><header>Review,
report, and program with respect to exchange facilitators</header>
<subsection id="H9D26B50C69964A6694FA7C2BFC94E399"><enum>(a)</enum><header>Review</header><text display-inline="yes-display-inline">The Director shall review all Federal laws
and regulations relating to the protection of consumers who use exchange
facilitators for transactions primarily for personal, family, or household
purposes.</text>
</subsection><subsection id="H7C651BBB28C14C4DB4D732051BC5CC6A"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the designated
transfer date, the Director shall submit to Congress a report
describing—</text>
<paragraph id="H6B2A93E0EB0D42D6AAE900B22C8BE516"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations for legislation to ensure
the appropriate protection of consumers who use exchange facilitators for
transactions primarily for personal, family, or household purposes;</text>
</paragraph><paragraph id="H7139FB14EC6C4061990D552D8D0891D1"><enum>(2)</enum><text>recommendations
for updating the regulations of Federal departments and agencies to ensure the
appropriate protection of such consumers; and</text>
</paragraph><paragraph id="H567A4439677C4E79ADE087A8469755AD"><enum>(3)</enum><text display-inline="yes-display-inline">recommendations for regulations to ensure
the appropriate protection of such consumers.</text>
</paragraph></subsection><subsection id="H3709A10432444E7D99744F49F89AB5E2"><enum>(c)</enum><header>Program</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
the submission of the report under subsection (b), the Bureau shall, consistent
with subtitle B, propose regulations or otherwise establish a program to
protect consumers who use exchange facilitators.</text>
</subsection><subsection id="H4FA0E88715B541EFA2E27EAD8545D9D4"><enum>(d)</enum><header>Exchange
facilitator defined</header><text>In this section, the term <quote>exchange
facilitator</quote> means a person that—</text>
<paragraph id="H03BC726655C94DB8856D185616078C26"><enum>(1)</enum><text display-inline="yes-display-inline">facilitates, for a fee, an exchange of like
kind property by entering into an agreement with a taxpayer by which the
exchange facilitator acquires from the taxpayer the contractual rights to sell
the taxpayer’s relinquished property and transfers a replacement property to
the taxpayer as a qualified intermediary (within the meaning of Treasury
Regulations section 1.1031(k)–1(g)(4)) or enters into an agreement with the
taxpayer to take title to a property as an exchange accommodation titleholder
(within the meaning of Revenue Procedure 2000–37) or enters into an agreement
with a taxpayer to act as a qualified trustee or qualified escrow holder
(within the meaning of Treasury Regulations section 1.1031(k)–1(g)(3));</text>
</paragraph><paragraph id="H055CABED0DF24676ABEB9D01C2A8B8EB"><enum>(2)</enum><text>maintains an
office for the purpose of soliciting business to perform the services described
in paragraph (1); or</text>
</paragraph><paragraph id="HCEF9D32F686249EBBB0CB5CF91CD5C17"><enum>(3)</enum><text>advertises any of
the services described in paragraph (1) or solicits clients in printed
publications, direct mail, television or radio advertisements, telephone calls,
facsimile transmissions, or other electronic communications directed to the
general public for purposes of providing any such services.</text>
</paragraph></subsection></section><section id="H2AB78ACA3BA049FEB61DEEF83A18481B" section-type="subsequent-section"><enum>1079A.</enum><header>Financial fraud
provisions</header>
<subsection id="HBC1642F6FD944DD38CD516001C4786C2"><enum>(a)</enum><header>Sentencing
guidelines</header>
<paragraph id="H401F3FC9FB634FB6A7BC4A21E21F739F"><enum>(1)</enum><header>Securities
fraud</header>
<subparagraph id="H4AD0DDF7A7B04DC4B289A5B91436A69B"><enum>(A)</enum><header>Directive</header><text>Pursuant
to its authority under section 994 of title 28, United States Code, and in
accordance with this paragraph, the United States Sentencing Commission shall
review and, if appropriate, amend the Federal Sentencing Guidelines and policy
statements applicable to persons convicted of offenses relating to securities
fraud or any other similar provision of law, in order to reflect the intent of
Congress that penalties for the offenses under the guidelines and policy
statements appropriately account for the potential and actual harm to the
public and the financial markets from the offenses.</text>
</subparagraph><subparagraph id="H3D81BED7F0054DF99EA4313A2B2E9EFE"><enum>(B)</enum><header>Requirements</header><text>In
making any amendments to the Federal Sentencing Guidelines and policy
statements under subparagraph (A), the United States Sentencing Commission
shall—</text>
<clause id="HBFC9B5B78016422B836A2ECBF20656DE"><enum>(i)</enum><text>ensure that the
guidelines and policy statements, particularly section 2B1.1(b)(14) and section
2B1.1(b)(17) (and any successors thereto), reflect—</text>
<subclause id="HAE3173DDEB5F4CFA8E79BE57E47A56E0"><enum>(I)</enum><text>the serious nature
of the offenses described in subparagraph (A);</text>
</subclause><subclause id="H99492C5C149E40308E9233BB051B8473"><enum>(II)</enum><text>the need for an
effective deterrent and appropriate punishment to prevent the offenses;
and</text>
</subclause><subclause id="H7AD82B586B294CB9BEE0EB19A41DEC67"><enum>(III)</enum><text>the
effectiveness of incarceration in furthering the objectives described in
subclauses (I) and (II);</text>
</subclause></clause><clause id="HB435502E31684A4DAED627D9114D2450"><enum>(ii)</enum><text>consider the
extent to which the guidelines appropriately account for the potential and
actual harm to the public and the financial markets resulting from the
offenses;</text>
</clause><clause id="HE7674A116EC8408C939A62DAD02B7C0D"><enum>(iii)</enum><text>ensure
reasonable consistency with other relevant directives and guidelines and
Federal statutes;</text>
</clause><clause id="HB95BAAEA14CA4CFDB8BE4D05CB9D40D5"><enum>(iv)</enum><text>make any
necessary conforming changes to guidelines; and</text>
</clause><clause id="H92663406529848968FD56D1721D3897E"><enum>(v)</enum><text>ensure that the
guidelines adequately meet the purposes of sentencing, as set forth in section
3553(a)(2) of title 18, United States Code.</text>
</clause></subparagraph></paragraph><paragraph id="H46B8EF15D2D4455FBB54FFB1F78DDABF"><enum>(2)</enum><header>Financial
institution fraud</header>
<subparagraph id="H3A5F6C02DF644ECDB65050F809CB88F8"><enum>(A)</enum><header>Directive</header><text>Pursuant
to its authority under section 994 of title 28, United States Code, and in
accordance with this paragraph, the United States Sentencing Commission shall
review and, if appropriate, amend the Federal Sentencing Guidelines and policy
statements applicable to persons convicted of fraud offenses relating to
financial institutions or federally related mortgage loans and any other
similar provisions of law, to reflect the intent of Congress that the penalties
for the offenses under the guidelines and policy statements ensure appropriate
terms of imprisonment for offenders involved in substantial bank frauds or
other frauds relating to financial institutions.</text>
</subparagraph><subparagraph id="H3FBE390D845B46679DE0ACE6EB0ACE0C"><enum>(B)</enum><header>Requirements</header><text>In
making any amendments to the Federal Sentencing Guidelines and policy
statements under subparagraph (A), the United States Sentencing Commission
shall—</text>
<clause id="H6D8148DFBA2F4C0A867F58D8A372C1D1"><enum>(i)</enum><text>ensure that the
guidelines and policy statements reflect—</text>
<subclause id="H12521C7164E74A7690A3E6FFBA9F028D"><enum>(I)</enum><text>the serious nature
of the offenses described in subparagraph (A);</text>
</subclause><subclause id="H19FC902E346D432F95800C8B2629E34F"><enum>(II)</enum><text>the need for an
effective deterrent and appropriate punishment to prevent the offenses;
and</text>
</subclause><subclause id="HABEB63DCF47946A9A9F5D34E39552433"><enum>(III)</enum><text>the
effectiveness of incarceration in furthering the objectives described in
subclauses (I) and (II);</text>
</subclause></clause><clause id="H56371D358C874658B6D8AB5639E5850C"><enum>(ii)</enum><text>consider the
extent to which the guidelines appropriately account for the potential and
actual harm to the public and the financial markets resulting from the
offenses;</text>
</clause><clause id="H73BC581BE7A940AA9ED4AABF953A7EB1"><enum>(iii)</enum><text>ensure
reasonable consistency with other relevant directives and guidelines and
Federal statutes;</text>
</clause><clause id="H1E9373C89F8A4E488F8EF2E909A0260E"><enum>(iv)</enum><text>make any
necessary conforming changes to guidelines; and</text>
</clause><clause id="H82D151D854F5403CAC0E98017A478999"><enum>(v)</enum><text>ensure that the
guidelines adequately meet the purposes of sentencing, as set forth in section
3553(a)(2) of title 18, United States Code.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H8851184FAA9F4EA9AECEDEFA9B1191A3"><enum>(b)</enum><header>Extension of
statute of limitations for securities fraud violations</header>
<paragraph id="HDA27120668884235B360F3E7AC5C4C2C"><enum>(1)</enum><header>In
general</header><text>Chapter 213 of title 18, United States Code, is amended
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H343862F9560F4F5FB2FAFF8A900C8FCF" style="USC">
<section id="H755A7638552E4DD78FEF7D932F06F387"><enum>3301.</enum><header>Securities
fraud offenses</header>
<subsection id="H8C38054458B84026BB40C25E25803E8A"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>securities fraud offense</term> means a violation
of, or a conspiracy or an attempt to violate—</text>
<paragraph id="HB78771C6FBA8452D8C4FA4D306E6B0EA"><enum>(1)</enum><text>section
1348;</text>
</paragraph><paragraph id="H7D005FE5DC394309B7DABDE19616747F"><enum>(2)</enum><text>section 32(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78ff(a));</text>
</paragraph><paragraph id="H0FF7C89B19DB4EFBBAC8CD867C2E295F"><enum>(3)</enum><text>section 24 of the
Securities Act of 1933 (15 U.S.C. 77x);</text>
</paragraph><paragraph id="H2D83E76CCFB14444963D649930D88729"><enum>(4)</enum><text>section 217 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b–17);</text>
</paragraph><paragraph id="H80211CCBBEB24E3DBA808D0EE0C7F414"><enum>(5)</enum><text>section 49 of the
Investment Company Act of 1940 (15 U.S.C. 80a–48); or</text>
</paragraph><paragraph id="HED46234CB5BF4E03A41EBA5563E49EA0"><enum>(6)</enum><text>section 325 of the
Trust Indenture Act of 1939 (15 U.S.C. 77yyy).</text>
</paragraph></subsection><subsection id="H4B40D6C68C2B437DAC62222C7B462885"><enum>(b)</enum><header>Limitation</header><text>No
person shall be prosecuted, tried, or punished for a securities fraud offense,
unless the indictment is found or the information is instituted within 6 years
after the commission of the
offense.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H38FA0B71A0564E42B2323BC085BAD43F"><enum>(2)</enum><header>Technical and
conforming amendment</header><text>The table of sections for chapter 213 of
title 18, United States Code, is amended by adding at the end the
following:</text>
<quoted-block id="HFFB3297FDA3C43FB8944F395E3728C93" style="USC">
<toc>
<toc-entry idref="H755A7638552E4DD78FEF7D932F06F387" level="section">3301. Securities fraud
offenses.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE520FF1F7E0845C6819EFF5503D2DBE3"><enum>(c)</enum><header>Amendments to
the False Claims Act relating to limitations on actions</header><text display-inline="yes-display-inline">Section 3730(h) of title 31, United States
Code, is amended—</text>
<paragraph id="HCAE9C96E0DCC4DFC839A362B443D79E2"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>or agent on behalf of the employee, contractor, or agent or
associated others in furtherance of other efforts to stop 1 or more violations
of this subchapter</quote> and inserting <quote>agent or associated others in
furtherance of an action under this section or other efforts to stop 1 or more
violations of this subchapter</quote>; and</text>
</paragraph><paragraph id="H6A7E7496A41E4453974150CC4300830C"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H871A5077D3E44476BB3D46EEE5528B20" style="OLC">
<paragraph id="H40DF7669A00042A3AD9DE66F3B4B5AE5"><enum>(3)</enum><header>Limitation on
bringing civil action</header><text>A civil action under this subsection may
not be brought more than 3 years after the date when the retaliation
occurred.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="HD2E02E51AB7746BBA637645A4382D7C7"><enum>H</enum><header>Conforming
Amendments</header>
<section id="H13C82D002356451DB9CC2456A2FF7537"><enum>1081.</enum><header>Amendments to
the Inspector General Act</header><text display-inline="no-display-inline">Effective on the date of enactment of this
Act, the Inspector General Act of 1978 (5 U.S.C. App. 3) is amended—</text>
<paragraph id="H93394806F03D48D499A2EBE4080F1DFF"><enum>(1)</enum><text>in section
8G(a)(2), by inserting <quote>and the Bureau of Consumer Financial
Protection</quote> after <quote>Board of Governors of the Federal Reserve
System</quote>;</text>
</paragraph><paragraph id="H6796C205C033449EB392FC275E104E82"><enum>(2)</enum><text>in section 8G(c),
by adding at the end the following: <quote>For purposes of implementing this
section, the Chairman of the Board of Governors of the Federal Reserve System
shall appoint the Inspector General of the Board of Governors of the Federal
Reserve System and the Bureau of Consumer Financial Protection. The Inspector
General of the Board of Governors of the Federal Reserve System and the Bureau
of Consumer Financial Protection shall have all of the authorities and
responsibilities provided by this Act with respect to the Bureau of Consumer
Financial Protection, as if the Bureau were part of the Board of Governors of
the Federal Reserve System.</quote>; and</text>
</paragraph><paragraph id="H1E6DBBC79FA842AA93E1514AC520A1D2"><enum>(3)</enum><text>in section
8G(g)(3), by inserting <quote>and the Bureau of Consumer Financial
Protection</quote> after <quote>Board of Governors of the Federal Reserve
System</quote> the first place that term appears.</text>
</paragraph></section><section id="HE722DA181EFF4E89AFD7AF1843B3D43F"><enum>1082.</enum><header>Amendments to
the Privacy Act of 1974</header><text display-inline="no-display-inline">Effective on the date of enactment of this
Act, section 552a of title 5, United States Code, is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H040CCA0C11A44F0997D247274537D7EA" style="OLC">
<subsection id="HFF4D284B10C3450C9F651188025B2545"><enum>(w)</enum><header>Applicability to
Bureau of Consumer Financial Protection</header><text>Except as provided in the
Consumer Financial Protection Act of 2010, this section shall apply with
respect to the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB36D25D3254B455DA9A3A195447C93DA"><enum>1083.</enum><header>Amendments to
the Alternative Mortgage Transaction Parity Act of 1982</header>
<subsection id="H8E4B12DEB98D40CFA30CD7E3746C1F80"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Alternative
Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.) is
amended—</text>
<paragraph id="H2C8D7C47103A46759A7F7B2ABF0F74C5"><enum>(1)</enum><text display-inline="yes-display-inline">in section 803 (12 U.S.C. 3802(1)), by
striking <quote>1974</quote> and all that follows through <quote>described and
defined</quote> and inserting the following: <quote>1974), in which the
interest rate or finance charge may be adjusted or renegotiated, described and
defined</quote>; and</text>
</paragraph><paragraph id="H9D0CFE0F1650445DA18D7D2CAE4F0FFD"><enum>(2)</enum><text>in section 804 (12
U.S.C. 3803)—</text>
<subparagraph id="H90F8800F7622405EA4532EE90728A6B6"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="HCF971DA37C76428F82A63F8793159B34"><enum>(i)</enum><text>in
each of paragraphs (1), (2), and (3), by inserting after <quote>transactions
made</quote> each place that term appears <quote>on or before the designated
transfer date, as determined under section 1062 of the Consumer Financial
Protection Act of 2010,</quote>;</text>
</clause><clause id="HB1AD7DE50A554389BEE48604FF610A5A"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>and</quote> at the end;</text>
</clause><clause id="H0EEC578C9661463C92722D486FF82810"><enum>(iii)</enum><text>in
paragraph (3), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="H8178B56D87274F728BC4D32FF182733E"><enum>(iv)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE9DE67ACDEB04DEAA34723C8AE73EF89" style="OLC">
<paragraph id="H15A9032F59DE4D28A0334636FBB66BF2"><enum>(4)</enum><text>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 for federally chartered housing
creditors, in accordance with the rulemaking authority granted to the Bureau of
Consumer Financial Protection with regard to federally chartered housing
creditors under provisions of law other than this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H266183DB1B9E4FE09CB428200673E962"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3A49CB4236004D629BB446861A260BC5" style="OLC">
<subsection id="H6ADE7CDE40B6490BACF5C773582D172F"><enum>(c)</enum><header>Preemption of
state law</header><text>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.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0658836BA8714E209501BA8C7CD6F552"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9F755EAFD6A54A2A87B348B30E4FE0BD" style="OLC">
<subsection id="HE87399C3AD6D46A6B38AC2C602871C4E"><enum>(d)</enum><header>Bureau
actions</header><text>The Bureau of Consumer Financial Protection shall—</text>
<paragraph id="H669900C5323243CC99E56E45BBA5FF00"><enum>(1)</enum><text>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);</text>
</paragraph><paragraph id="H84483906EB5C4AC3BE25D13C72AB4464"><enum>(2)</enum><text>determine whether
such regulations are fair and not deceptive and otherwise meet the objectives
of the Consumer Financial Protection Act of 2010; and</text>
</paragraph><paragraph id="H3965164840AE47A49DA90A8BE7CA2F8A"><enum>(3)</enum><text>promulgate
regulations under subsection (a)(4) after the designated transfer date.</text>
</paragraph></subsection><subsection id="HEA345FE88F174FABAD3F0511C0EFFA75"><enum>(e)</enum><header>Designated
transfer date</header><text>As used in this section, the term <quote>designated
transfer date</quote> means the date determined under section 1062 of the
Consumer Financial Protection Act of
2010.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HE7D82E43821B4FB2B891AF079876F99D"><enum>(b)</enum><header>Effective
date</header><text>This section and the amendments made by this section shall
become effective on the designated transfer date.</text>
</subsection><subsection id="HF616A8924717483A9F5E7046E7F0DB1B"><enum>(c)</enum><header>Rule of
construction</header><text>The amendments made by subsection (a) shall not
affect any transaction covered by the Alternative Mortgage Transaction Parity
Act of l982 (12 U.S.C. 3801 et seq.) and entered into on or before the
designated transfer date.</text>
</subsection></section><section id="H0EDCE4876E2B477F8A01C6BA2DB36190"><enum>1084.</enum><header>Amendments to
the Electronic Fund Transfer Act</header><text display-inline="no-display-inline">The Electronic Fund Transfer Act (15 U.S.C.
1693 et seq.) is amended—</text>
<paragraph commented="no" id="HD73A1B4AC8544169B3CE3D4600A8A6CD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
that term appears and inserting <quote>Bureau</quote>, except in subsections
(a) and (e) of section 904 (as amended in paragraph (3) of this section) and in
918 (15 U.S.C. 1693o) (as so designated by the Credit Card Act of 2009) and
section 920 (as added by section 1076);</text>
</paragraph><paragraph id="HCAB5AA9A2C974296A579F671B0186AAC"><enum>(2)</enum><text>in section 903 (15
U.S.C. 1693a)—</text>
<subparagraph id="H2B336857F2AC456FA6ED3C4647D92B9D"><enum>(A)</enum><text>by redesignating
paragraphs (3) through (11) as paragraphs (4) through (12), respectively;
and</text>
</subparagraph><subparagraph id="H0ACD2001F94246B8B31F1C304229BB11"><enum>(B)</enum><text>by inserting after
paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="H4AF459CCC2A24A89A4705FECE3DE9CF0" style="OLC">
<paragraph id="HF00641F3EBD84F498F185A4E4F3ADF14"><enum>(4)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HEBA35B4F330446E381B5FC958411A7EF"><enum>(3)</enum><text display-inline="yes-display-inline">in section 904 (15 U.S.C. 1693b)—</text>
<subparagraph id="H60FA44D6C75B4EBA839ACBFF883E09EB"><enum>(A)</enum><text>in subsection (a),
by striking <quote>(a) <header-in-text level="subsection" style="OLC">Prescription by board</header-in-text>.—The Board shall prescribe
regulations to carry out the purposes of this title.</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H47FA1F5CA89248389B7D92772F6912B9" style="OLC">
<subsection id="H25A48ACB3D3E45CD861C38E77DF6E62F"><enum>(a)</enum><header>Prescription by
the bureau and the board</header>
<paragraph id="HCC7013B2432F424C853548D3968AF6C4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (2), the Bureau shall prescribe rules to carry out the purposes of
this title.</text>
</paragraph><paragraph id="H933553E57020443482EC6CCF92943020"><enum>(2)</enum><header>Authority of the
Board</header><text display-inline="yes-display-inline">The Board shall have
sole authority to prescribe rules—</text>
<subparagraph id="H57760A1AD0FC417D900771264F2C2580"><enum>(A)</enum><text display-inline="yes-display-inline">to carry out the purposes of this title
with respect to a person described in section 1029(a) of the Consumer Financial
Protection Act of 2010; and</text>
</subparagraph><subparagraph id="H8579DB7FF7B943E695C76B4C6441866B"><enum>(B)</enum><text display-inline="yes-display-inline">to carry out the purposes of section
920.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H7434BD2535D44B94B3813FCD4E88718E"><enum>(B)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1DB034B24B7849F1959315C55F90DCF1" style="OLC">
<subsection id="HEE77A194C1574118A6DD25EF193E2D23"><enum>(e)</enum><header>Deference</header><text display-inline="yes-display-inline">No provision of this title may be construed
as altering, limiting, or otherwise affecting the deference that a court
affords to—</text>
<paragraph id="H54E3354C12A847139A1C62E735D15A47"><enum>(1)</enum><text>the Bureau in
making determinations regarding the meaning or interpretation of any provision
of this title for which the Bureau has authority to prescribe regulations;
or</text>
</paragraph><paragraph id="H8B2C3B2208664723B616FE2B3A4671CD"><enum>(2)</enum><text>the Board in
making determinations regarding the meaning or interpretation of section
920.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H93BA94D27D2A445AA9E45153E9FF8994"><enum>(4)</enum><text>in section 916(d)
(15 U.S.C. 1693m) (as so designated by the Credit CARD Act of 2009)—</text>
<subparagraph id="H0AA5E1F99256480286297B25F17563E6"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">of
Board or approval of duly authorized official or employee of Federal Reserve
System</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H318D0DFAF07A4C9E835A31C7EC24B7C4"><enum>(B)</enum><text>by inserting
<quote>Bureau or the</quote> before <quote>Board</quote> each place that term
appears; and</text>
</subparagraph><subparagraph id="H047EE9F107BB4761A671D48B7463CF1C"><enum>(C)</enum><text>by inserting
<quote>Bureau of Consumer Financial Protection or the</quote> before
<quote>Federal Reserve System</quote>; and</text>
</subparagraph></paragraph><paragraph id="HD45427739CF6486B8D34A6F111776DFF"><enum>(5)</enum><text>in section 918 (15
U.S.C. 1693o) (as so designated by the Credit CARD Act of 2009)—</text>
<subparagraph id="H3E0AF604C48D452CBAFFFC5285223303"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H6FDBF040A7694A8CB1CDE83407608D9E"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Subject to subtitle B
of the Consumer Financial Protection Act of 2010, compliance</quote>;</text>
</clause><clause id="H9D0760D652924CBB9681A6F8E7E4584D"><enum>(ii)</enum><text>by
striking paragraphs (1) and (2), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HDAA4336EEC4342029E4EEF1DC2DC116A" style="OLC">
<paragraph id="HF59E038834BC4F17A006B96C95CEE40B"><enum>(1)</enum><text>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 (12 U.S.C.
1813(q)), with respect to—</text>
<subparagraph id="HDF8BF50692E04B23A80A9BF529F08F0A"><enum>(A)</enum><text>national banks,
Federal savings associations, and Federal branches and Federal agencies of
foreign banks;</text>
</subparagraph><subparagraph id="H83FD998E1FB4456BA21B18CCDBEF5F94"><enum>(B)</enum><text>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, and organizations operating under section 25 or
25A of the Federal Reserve Act; and</text>
</subparagraph><subparagraph id="H9AC62A8DF6A84BF3842D41486DEE45A0"><enum>(C)</enum><text>banks and State
savings associations insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), and insured State branches
of foreign
banks;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="HA3BE15986C3A48729EAB10F02FC1EA27"><enum>(iii)</enum><text>by
redesignating paragraphs (3) through (5) as paragraphs (2) through (4),
respectively;</text>
</clause><clause id="H47563941F1CC426FA411F455316B3917"><enum>(iv)</enum><text>in
paragraph (2) (as so redesignated), by striking the period at the end and
inserting a semicolon;</text>
</clause><clause id="H8106B257E5FB428EACD120091BBECEDE"><enum>(v)</enum><text>in
paragraph (3) (as so redesignated), by striking <quote>and</quote> at the
end;</text>
</clause><clause id="HC28A38F242CA45C58D378F6F3D619F4C"><enum>(vi)</enum><text>in
paragraph (4) (as so redesignated), by striking the period at the end and
inserting <quote>and</quote>; and</text>
</clause><clause id="HCECF42A7ED884A9BBFE222E01D2CB6D0"><enum>(vii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC828B6DB902E41CDB0FF3544DE1958E0" style="OLC">
<paragraph id="H2B33695060EA48B080ABD625DEDDF629"><enum>(5)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau, with respect to any
person subject to this title, except that the Bureau shall not have authority
to enforce the requirements of section 920 or any regulations prescribed by the
Board under section
920.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" id="H7A419DC6C1DF4EFC9D5BCB1FD75A985F"><enum>(B)</enum><text>in subsection (b),
by inserting <quote>any of paragraphs (1) through (4) of</quote> before
<quote>subsection (a)</quote> each place that term appears; and</text>
</subparagraph><subparagraph commented="no" id="H712035E6D83C4030B0D189714AD7656F"><enum>(C)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H36A01DA994084A46A3143CA1BF9B37E8" style="OLC">
<subsection id="H0638159742E647059ED8AB840B1AE06F"><enum>(c)</enum><header>Overall
enforcement authority of the Federal Trade Commission</header><text>Except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under any of paragraphs
(1) through (4) of subsection (a), and subject to subtitle B of the Consumer
Financial Protection Act of 2010, the Federal Trade Commission shall be
authorized to enforce such requirements. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal Trade
Commission Act, a violation of any requirement imposed under this title shall
be deemed a violation of a requirement imposed under that Act. All of the
functions and powers of the Federal Trade Commission under the Federal Trade
Commission Act are available to the Federal Trade Commission to enforce
compliance by any person subject to the jurisdiction of the Federal Trade
Commission with the requirements imposed under this title, irrespective of
whether that person is engaged in commerce or meets any other jurisdictional
tests under the Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="H780BC85523544BE297CEF449B1E7B0EF"><enum>1085.</enum><header>Amendments to
the Equal Credit Opportunity Act</header><text display-inline="no-display-inline">The Equal Credit Opportunity Act (15 U.S.C.
1691 et seq.) is amended—</text>
<paragraph commented="no" id="HAC94AFCF600A40978D2826612C8FAB00"><enum>(1)</enum><text>by striking
<quote>Board</quote> each place that term appears, other than in section 703(f)
(as added by this section) and section 704(a)(4) (15 U.S.C. 1691c(a)(4)), and
inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="H4268C8F5111445B5BEE76EC45789C92A"><enum>(2)</enum><text>in section 702 (15
U.S.C. 1691a), by striking subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HDECDE3FB22E14F4DB3466762CEABD50E" style="OLC">
<subsection id="H2AE4F7BF44C24E75B3C032D2FCE9B1E7"><enum>(c)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15116626F54744EC8AF04DF4403A1870"><enum>(3)</enum><text>in section 703 (15
U.S.C. 1691b)—</text>
<subparagraph id="HBCA0CE1B04134AA1BD1F6D9D4C2980DA"><enum>(A)</enum><text>by striking the
section heading and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4801AA4CD5C94282A3AAFE06192EEBFB" style="OLC">
<section id="H25CB4A643E394824B6328C6AE398E14E"><enum>703.</enum><header>Promulgation of
regulations by the
Bureau</header>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HCF86846C606E400280D2941F5C788049"><enum>(B)</enum><text>by striking
<quote>(a) <header-in-text level="subsection" style="OLC">Regulations</header-in-text>.—</quote>;</text>
</subparagraph><subparagraph id="HEC09890C250A44A8B1CDDEAEFD6B77F6"><enum>(C)</enum><text>by striking
subsection (b);</text>
</subparagraph><subparagraph id="HBA18DC059DE54740BCE50413C977D6A0"><enum>(D)</enum><text>by redesignating
paragraphs (1) through (5) as subsections (a) through (e), respectively;</text>
</subparagraph><subparagraph id="H6634F7F1120449D390BDADF6C9F8204D"><enum>(E)</enum><text>in subsection (c),
as so redesignated, by striking <quote>paragraph (2)</quote> and inserting
<quote>subsection (b)</quote>; and</text>
</subparagraph><subparagraph id="H334622AD39A24207A8D684050D8B6A80"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA306150CEF144AA6A885E933B12BCEA2" style="OLC">
<subsection id="HDE0B73E9760E4A0CAA7EDB16F4340AD5"><enum>(f)</enum><header>Board
authority</header><text>Notwithstanding subsection (a), the Board shall
prescribe regulations to carry out the purposes of this title with respect to a
person described in section 1029(a) of the Consumer Financial Protection Act of
2010. These regulations may contain but are not limited to such
classifications, differentiation, or other provision, and may provide for such
adjustments and exceptions for any class of transactions, as in the judgment of
the Board are necessary or proper to effectuate the purposes of this title, to
prevent circumvention or evasion thereof, or to facilitate or substantiate
compliance therewith.</text>
</subsection><subsection id="H5CAB3A9C9CE04D658D21C9351F2A77A2"><enum>(g)</enum><header>Deference</header><text>Notwithstanding
any power granted to any Federal agency under this title, the deference that a
court affords to a Federal agency with respect to a determination made by such
agency relating to the meaning or interpretation of any provision of this title
that is subject to the jurisdiction of such agency shall be applied as if that
agency were the only agency authorized to apply, enforce, interpret, or
administer the provisions of this
title</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HAC17EF2249A24312A8509F060E79D9C2"><enum>(4)</enum><text>in section 704 (15
U.S.C. 1691c)—</text>
<subparagraph id="H363056152D064515AC8F400A4F83DAC1"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H4C064FFF7B2E483386F87CC2AD30D439"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Subject to subtitle B
of the Consumer Protection Financial Protection Act of 2010</quote>;</text>
</clause><clause id="H4A816775862A4C39AD9CA0A20008018A"><enum>(ii)</enum><text>by
striking paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6AFD3DC91BDC4D16AA0DCAC729F3A8A8" style="OLC">
<paragraph id="H028E09F084924529A2521BE76957928A"><enum>(1)</enum><text>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 (12 U.S.C.
1813(q)), with respect to—</text>
<subparagraph id="H7BBD9D9D72A44130AFC33023CE6C590C"><enum>(A)</enum><text>national banks,
Federal savings associations, and Federal branches and Federal agencies of
foreign banks;</text>
</subparagraph><subparagraph id="H18C49F1CBEDC488F95D134FED7F95519"><enum>(B)</enum><text>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, and organizations operating under section 25 or
25A of the Federal Reserve Act; and</text>
</subparagraph><subparagraph id="H2B73646BE48D4146BC5D35B2A89C515E"><enum>(C)</enum><text>banks and State
savings associations insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), and insured State branches
of foreign
banks;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="H47372DCB592A4267B657538EFAC45DA6"><enum>(iii)</enum><text>by
redesignating paragraphs (3) through (9) as paragraphs (2) through (8),
respectively;</text>
</clause><clause id="H39CC31C6A2FE4B7FAF1D649DC8BDAECA"><enum>(iv)</enum><text>in
paragraph (7) (as so redesignated), by striking <quote>and</quote> at the
end;</text>
</clause><clause id="HC7094D5849CF420FB80DEA076BCD7023"><enum>(v)</enum><text>in
paragraph (8) (as so redesignated), by striking the period at the end, and
inserting <quote>; and</quote>; and</text>
</clause><clause id="HC530FDA09A954AE3B1B27867AE0128CF"><enum>(vi)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD33A9D3B1DE8492292977170D22941FF" style="OLC">
<paragraph id="H1A1F13EE37CD4160B8E68F137168C4ED"><enum>(9)</enum><text>Subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau, with respect to any
person subject to this
title.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H91C0B5D62D054CC0AFD2A147AC00ADEC"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2439F9820C754F67B475F3EAD74B764D" style="OLC">
<subsection id="H38453E80188244218C5A70B49AA86F6C"><enum>(c)</enum><header>Overall
enforcement authority of Federal trade commission</header><text>Except to the
extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under any of paragraphs
(1) through (8) of subsection (a), and subject to subtitle B of the Consumer
Financial Protection Act of 2010, the Federal Trade Commission shall be
authorized to enforce such requirements. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.), a violation of any requirement imposed
under this subchapter shall be deemed a violation of a requirement imposed
under that Act. All of the functions and powers of the Federal Trade Commission
under the Federal Trade Commission Act are available to the Federal Trade
Commission to enforce compliance by any person with the requirements imposed
under this title, irrespective of whether that person is engaged in commerce or
meets any other jurisdictional tests under the Federal Trade Commission Act,
including the power to enforce any rule prescribed by the Bureau under this
title in the same manner as if the violation had been a violation of a Federal
Trade Commission trade regulation rule.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H5C79D806882340CEB2A7A90EB60CF6A4"><enum>(C)</enum><text>in subsection (d),
by striking <quote>Board</quote> and inserting <quote>Bureau</quote>;</text>
</subparagraph></paragraph><paragraph id="H4EAA36B2EF154AACADF36EBF673C7954"><enum>(5)</enum><text>in section 706(e)
(15 U.S.C. 1691e(e))—</text>
<subparagraph id="HBAE8E0D5D80E4963AD43EEBB022BFBE6"><enum>(A)</enum><text>in the subsection
heading—</text>
<clause id="H455651F720C0430DB28A0121CF9D3EA8"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">Board</header-in-text></quote> each place that term appears and
inserting <quote><header-in-text level="subsection" style="OLC">Bureau</header-in-text></quote>; and</text>
</clause><clause id="H4F4E833F0CE344159744C8B7199BBF9F"><enum>(ii)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">Federal reserve
system</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Bureau of Consumer Financial
Protection</header-in-text></quote>; and</text>
</clause></subparagraph><subparagraph id="H74ADF059E6C54A268285F1F2EF849EC2"><enum>(B)</enum><text>by striking
<quote>Federal Reserve System</quote> and inserting <quote>Bureau of Consumer
Financial Protection</quote>;</text>
</subparagraph></paragraph><paragraph id="H079E11D06A214216BED7B874AE3A28AB"><enum>(6)</enum><text>in section 706(g)
(15 U.S.C. 1691e(g)), by striking <quote>(3)</quote> and inserting
<quote>(9)</quote>; and</text>
</paragraph><paragraph id="H5476506C3873456A9C76D34638E6B549"><enum>(7)</enum><text>in section 706(f)
(15 U.S.C. 1691e(f)), by striking <quote>two years from</quote> each place that
term appears and inserting <quote>5 years after</quote>.</text>
</paragraph></section><section id="HDCA8D84D877F47FC9A3147DB2CEAA124"><enum>1086.</enum><header>Amendments to
the Expedited Funds Availability Act</header>
<subsection id="H52EB4866C050402F8B2367F877657E5D"><enum>(a)</enum><header>Amendment to
Section <enum-in-header>603</enum-in-header></header><text>Section 603(d)(1) of
the Expedited Funds Availability Act (12 U.S.C. 4002) is amended by inserting
after <quote>Board</quote> the following <quote>, jointly with the Director of
the Bureau of Consumer Financial Protection,</quote>.</text>
</subsection><subsection id="H2B986FF66CF94EA0890BE2C196E01612"><enum>(b)</enum><header>Amendments to
Section <enum-in-header>604</enum-in-header></header><text>Section 604 of the
Expedited Funds Availability Act (12 U.S.C. 4003) is amended—</text>
<paragraph id="H0446C5AF902C44EA8E540D714809560F"><enum>(1)</enum><text>by inserting after
<quote>Board</quote> each place that term appears, other than in subsection
(f), the following: <quote>, jointly with the Director of the Bureau of
Consumer Financial Protection,</quote>; and</text>
</paragraph><paragraph id="HD1E42BB81E9849669F478620CCC119A1"><enum>(2)</enum><text>in subsection (f),
by striking <quote>Board.</quote> each place that term appears and inserting
the following: <quote>Board, jointly with the Director of the Bureau of
Consumer Financial Protection.</quote>.</text>
</paragraph></subsection><subsection id="HBFC59385B2C44F5385B8441145E32438"><enum>(c)</enum><header>Amendments to
Section <enum-in-header>605</enum-in-header></header><text>Section 605 of the
Expedited Funds Availability Act (12 U.S.C. 4004) is amended—</text>
<paragraph id="H30136D3E53D544D9869BA48596235CA3"><enum>(1)</enum><text>by inserting after
<quote>Board</quote> each place that term appears, other than in the heading
for section 605(f)(1), the following: <quote>, jointly with the Director of the
Bureau of Consumer Financial Protection,</quote>; and</text>
</paragraph><paragraph id="H5248B4F000E14C99ADC290425DC1AEC2"><enum>(2)</enum><text>in subsection
(f)(1), in the paragraph heading, by inserting <quote><header-in-text level="paragraph" style="OLC">and Bureau</header-in-text></quote> after
<quote><header-in-text level="paragraph" style="OLC">board</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H1AA9F13EC4DF4957A1C99BD9A92A4CF1"><enum>(d)</enum><header>Amendments to
Section <enum-in-header>609</enum-in-header></header><text>Section 609 of the
Expedited Funds Availability Act (12 U.S.C. 4008) is amended:</text>
<paragraph id="H5D9657C400AF493384036CC238B78FE5"><enum>(1)</enum><text>in subsection (a),
by inserting after <quote>Board</quote> the following <quote>, jointly with the
Director of the Bureau of Consumer Financial Protection,</quote>; and</text>
</paragraph><paragraph id="H042CF2AAA69D4FF3BDD2FFFF69A69468"><enum>(2)</enum><text>by striking
subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H72C2B8CC7D9D48A18DD7A738C54AFCCE" style="OLC">
<subsection id="HD007B3F5C91746BC95976A33B2E62AC1"><enum>(e)</enum><header>Consultations</header><text>In
prescribing regulations under subsections (a) and (b), the Board and the
Director of the Bureau of Consumer Financial Protection, 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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H42F44602A7734729B4C4BD55583E2508"><enum>(e)</enum><header>Expedited funds
availability improvements</header><text>Section 603 of the Expedited Funds
Availability Act (12 U.S.C. 4002) is amended—</text>
<paragraph id="HA6B8161A5C214823B65E6D948F8DA802"><enum>(1)</enum><text>in subsection
(a)(2)(D), by striking “$100” and inserting <quote>$200</quote>; and</text>
</paragraph><paragraph id="HEC5DC4AF65FB4B429ECAD3E5C8CBFA0C"><enum>(2)</enum><text>in subsection
(b)(3)(C), in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">$100</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">$200</header-in-text></quote>; and</text>
</paragraph><paragraph id="H2268FCD35EE4471B9B1F28E05EF53FC1"><enum>(3)</enum><text>in subsection
(c)(1)(B)(iii), in the clause heading, by striking <quote><header-in-text level="clause" style="OLC">$100</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">$200</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H6A86455D358D452A8BF4CFB36941D34E"><enum>(f)</enum><header>Regular
adjustments for inflation</header><text display-inline="yes-display-inline">Section 607 of the Expedited Funds
Availability Act (12 U.S.C. 4006) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H1BB31E8B610C47CAA79BEEC2BDFE6F69" style="OLC">
<subsection id="H2EF7086E682A4589A59F56789E76A650"><enum>(f)</enum><header>Adjustments to
dollar amounts for inflation</header><text>The dollar amounts under this title
shall be adjusted every 5 years after December 31, 2011, by the annual
percentage increase in the Consumer Price Index for Urban Wage Earners and
Clerical Workers, as published by the Bureau of Labor Statistics, rounded to
the nearest multiple of
$25.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HBB794BEDB8754502B594160F12F420F1"><enum>1087.</enum><header>Amendments to
the Fair Credit Billing Act</header><text display-inline="no-display-inline">The Fair Credit Billing Act (15 U.S.C.
1666–1666j) is amended by striking <quote>Board</quote> each place that term
appears, other than in section 105(i) (as added by this subtitle) and inserting
<quote>Bureau</quote>.</text>
</section><section id="HBAC7F5DFCD474944BB3FED6EEBF5F372"><enum>1088.</enum><header>Amendments to
the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act
of 2003</header>
<subsection id="H1F4A737A83304AF882E610BDF8C8E343"><enum>(a)</enum><header>Fair Credit
Reporting Act</header><text>The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended—</text>
<paragraph id="H5A660B06CD454479A92F25D41940A575"><enum>(1)</enum><text>in section 603 (15
U.S.C. 1681a)—</text>
<subparagraph id="HB7784D40694E46BD8A53551F9EF8DD95"><enum>(A)</enum><text>by redesignating
subsections (w) and (x) as subsections (x) and (y), respectively; and</text>
</subparagraph><subparagraph id="HAE2EC6EF967344B5B58B732CA9F50AE4"><enum>(B)</enum><text>by inserting after
subsection (v) the following:</text>
<quoted-block display-inline="no-display-inline" id="HE22E2E56929047089FD45BB410705FE6" style="OLC">
<subsection id="HE8E8197BD16F4B6F9BACE25AF86FE01C"><enum>(w)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9E17BF6F6966481187F8EF2588574D90"><enum>(2)</enum><text>except as
otherwise specifically provided in this subsection—</text>
<subparagraph id="H59BBF53529EC4949BBAFC126BB38A077"><enum>(A)</enum><text>by striking
<quote>Federal Trade Commission</quote> each place that term appears and
inserting <quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="H19A30794DB174713A4F550FFDE294298"><enum>(B)</enum><text>by striking
<quote>FTC</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="HFD796687C47F407CB6222BCF5867579F"><enum>(C)</enum><text>by striking
<quote>the Commission</quote> each place that term appears, other than sections
615(e) (15 U.S.C. 1681m(e)) and 628(a)(1) (15 U.S.C. 1681w(a)(1)), and
inserting <quote>the Bureau</quote>; and</text>
</subparagraph><subparagraph id="H0126F8594D5344C7A76E676DC04EA5E6"><enum>(D)</enum><text>by striking
<quote>The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly</quote> each place that term appears, other
than section 615(e)(1) (15 U.S.C. 1681m(e)) and section 628(a)(1) (15 U.S.C.
1681w(a)(1)), and inserting <quote>The Bureau shall</quote>;</text>
</subparagraph></paragraph><paragraph id="HAFD730C13D144670A529D686AA532FFA"><enum>(3)</enum><text>in section
603(k)(2) (15 U.S.C. 1681a(k)(2)), by striking <quote>Board of Governors of the
Federal Reserve System</quote> and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="H4C516C85F20A47FC9906018A253931C3"><enum>(4)</enum><text>in section 604(g)
(15 U.S.C. 1681b(g))—</text>
<subparagraph id="H958490A8D2E74420BD6D211718F4F723"><enum>(A)</enum><text>in paragraph (3),
by striking subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFCD23F1C810E4092AF9FEA94FC79D79F" style="OLC">
<subparagraph id="HF0D9A43387994F6F892DA8543122A6EE"><enum>(C)</enum><text>as otherwise
determined to be necessary and appropriate, by regulation or order, by the
Bureau or the applicable State insurance authority (with respect to any person
engaged in providing insurance or
annuities).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H03578D05FD6B4F1083AFFEAA11D10A8A"><enum>(B)</enum><text>by striking
paragraph (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC59325E52B2543648A862517A3AFFE0F" style="OLC">
<paragraph id="H0C3A451EF9DC492B977A72021C71E8A3"><enum>(5)</enum><header>Regulations and
effective date for paragraph (2)</header>
<subparagraph id="H3616253D39B24C9198D22C2D0C905FC5"><enum>(A)</enum><header>Regulations
required</header><text>The Bureau may, after notice and opportunity for
comment, prescribe regulations that permit transactions under paragraph (2)
that are determined to be necessary and appropriate to protect legitimate
operational, transactional, risk, consumer, and other needs (and which shall
include permitting actions necessary for administrative verification purposes),
consistent with the intent of paragraph (2) to restrict the use of medical
information for inappropriate
purposes.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBCC054C1144E47D5A40CEDEFE0DAA16E"><enum>(5)</enum><text>in section
605(h)(2)(A) (15 U.S.C. 1681c(h)(2)(A)), by striking <quote>with respect to the
entities that are subject to their respective enforcement authority under
section 621</quote> and inserting <quote>, in consultation with the Federal
banking agencies, the National Credit Union Administration, and the Federal
Trade Commission,</quote>.</text>
</paragraph><paragraph id="HF373DABF4CF549E1A9236BD16DDD652E"><enum>(6)</enum><text>in section
611(e)(2) (15 U.S.C. 1681i(e)), by striking paragraph (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF368F451AA824EB7AE727AA01D6C3A4E" style="OLC">
<paragraph id="HBD87355A22D64D34A1CF9B6F30630D73"><enum>(2)</enum><header>Exclusion</header><text>Complaints
received or obtained by the Bureau pursuant to its investigative authority
under the Consumer Financial Protection Act of 2010 shall not be subject to
paragraph
(1).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCD028AB3BBB846099171924CDABC0446"><enum>(7)</enum><text>in section
615(d)(2)(B) (15 U.S.C. 1681m(d)(2)(B)), by striking <quote>the Federal banking
agencies</quote> and inserting <quote>the Federal Trade Commission, the Federal
banking agencies,</quote>;</text>
</paragraph><paragraph id="HDF30B38A3F524F019FB54DCDDF25D316"><enum>(8)</enum><text>in section
615(e)(1) (15 U.S.C. 1681m(e)(1)), by striking <quote>and the
Commission</quote> and inserting <quote>the Federal Trade Commission, the
Commodity Futures Trading Commission, and the Securities and Exchange
Commission</quote>;</text>
</paragraph><paragraph id="HD504B6CF9A0F49099B2BDE1435C4456B"><enum>(9)</enum><text>in section
615(h)(6) (15 U.S.C. 1681m(h)(6)), by striking subparagraph (A) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="HA61CAA3A9FE146DCA16160A21275A828" style="OLC">
<subparagraph id="HC895EAD4207F4863B13CBB5A2D8B5B73"><enum>(A)</enum><header>Rules
required</header><text>The Bureau shall prescribe rules to carry out this
subsection.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9B3511E088074FC2A0954CCF0729F4BA"><enum>(10)</enum><text>in section 621
(15 U.S.C. 1681s)—</text>
<subparagraph id="HAD7E1D6950A54218B784E03A2176A064"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5378F4534F1E406C9E31B768DB8A6721" style="OLC">
<subsection id="H43F38533BC014BCEBE0F763FF5832817"><enum>(a)</enum><header>Enforcement by
Federal Trade Commission</header>
<paragraph id="H2EB45EDD77964256827B2801C0A09BE6"><enum>(1)</enum><header>In
general</header><text>The Federal Trade Commission shall be authorized to
enforce compliance with the requirements imposed by this title under the
Federal Trade Commission Act (15 U.S.C. 41 et seq.), with respect to consumer
reporting agencies and all other persons subject thereto, except to the extent
that enforcement of the requirements imposed under this title is specifically
committed to some other Government agency under any of subparagraphs (A)
through (G) of subsection (b)(1), and subject to subtitle B of the Consumer
Financial Protection Act of 2010, subsection (b). For the purpose of the
exercise by the Federal Trade Commission of its functions and powers under the
Federal Trade Commission Act, a violation of any requirement or prohibition
imposed under this title shall constitute an unfair or deceptive act or
practice in commerce, in violation of section 5(a) of the Federal Trade
Commission Act (15 U.S.C. 45(a)), and shall be subject to enforcement by the
Federal Trade Commission under section 5(b) of that Act with respect to any
consumer reporting agency or person that is subject to enforcement by the
Federal Trade Commission pursuant to this subsection, irrespective of whether
that person is engaged in commerce or meets any other jurisdictional tests
under the Federal Trade Commission Act. The Federal Trade Commission shall have
such procedural, investigative, and enforcement powers, including the power to
issue procedural rules in enforcing compliance with the requirements imposed
under this title and to require the filing of reports, the production of
documents, and the appearance of witnesses, as though the applicable terms and
conditions of the Federal Trade Commission Act were part of this title. Any
person violating any of the provisions of this title shall be subject to the
penalties and entitled to the privileges and immunities provided in the Federal
Trade Commission Act as though the applicable terms and provisions of such Act
are part of this title.</text>
</paragraph><paragraph id="HAF48764F94D349CD9832F3429B6CD66E"><enum>(2)</enum><header>Penalties</header>
<subparagraph id="H57D1BD20CE6E437FB02E016F4DA5CE0E"><enum>(A)</enum><header>Knowing
violations</header><text>Except as otherwise provided by subtitle B of the
Consumer Financial Protection Act of 2010, in the event of a knowing violation,
which constitutes a pattern or practice of violations of this title, the
Federal Trade Commission may commence a civil action to recover a civil penalty
in a district court of the United States against any person that violates this
title. In such action, such person shall be liable for a civil penalty of not
more than $2,500 per violation.</text>
</subparagraph><subparagraph id="H6C305E8CD0AB4130A79E5C445BE86355"><enum>(B)</enum><header>Determining
penalty amount</header><text>In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree of culpability,
any history of such prior conduct, ability to pay, effect on ability to
continue to do business, and such other matters as justice may require.</text>
</subparagraph><subparagraph id="HD0C2A187218A4018AFFBC315B35D9D8F"><enum>(C)</enum><header>Limitation</header><text>Notwithstanding
paragraph (2), a court may not impose any civil penalty on a person for a
violation of section 623(a)(1), unless the person has been enjoined from
committing the violation, or ordered not to commit the violation, in an action
or proceeding brought by or on behalf of the Federal Trade Commission, and has
violated the injunction or order, and the court may not impose any civil
penalty for any violation occurring before the date of the violation of the
injunction or
order.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9478B806A10E4F358E21D372A670B677"><enum>(B)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF276D5140B0B49E4BC75EC109B7202DE" style="OLC">
<subsection id="HEBA419DBA35D40D1AF3326AF942F9517"><enum>(b)</enum><header>Enforcement by
other agencies</header>
<paragraph id="H6AF43ED463CB47CC81317F7FEE42C46A"><enum>(1)</enum><header>In
general</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, compliance with the requirements imposed under this
title with respect to consumer reporting agencies, persons who use consumer
reports from such agencies, persons who furnish information to such agencies,
and users of information that are subject to section 615(d) shall be enforced
under—</text>
<subparagraph id="H3F1745D53B554E0FB52D791DB240F9CB"><enum>(A)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), by 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—</text>
<clause id="H07D2B9219E714B06B5F5CB10D5276291"><enum>(i)</enum><text>any national bank
or State savings association, and any Federal branch or Federal agency of a
foreign bank;</text>
</clause><clause id="H6B82EF5D8C874F13B1DFF133C1F99FB2"><enum>(ii)</enum><text>any member bank
of the Federal Reserve System (other than a national bank), a branch or agency
of a foreign bank (other than a Federal branch, Federal agency, or insured
State branch of a foreign bank), a 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</text>
</clause><clause id="HE713F5C77E5A4E1F88F512BD6BCF6A35"><enum>(iii)</enum><text>any bank or
Federal savings association insured by the Federal Deposit Insurance
Corporation (other than a member of the Federal Reserve System) and any insured
State branch of a foreign bank;</text>
</clause></subparagraph><subparagraph id="H6A00B3D09CCD489C8446A356041F5AC3"><enum>(B)</enum><text>the Federal Credit
Union Act (12 U.S.C. 1751 et seq.), by the Administrator of the National Credit
Union Administration with respect to any Federal credit union;</text>
</subparagraph><subparagraph id="H1F10362DC17D430197379E47AA6D6504"><enum>(C)</enum><text>subtitle IV of
title 49, United States Code, by the Secretary of Transportation, with respect
to all carriers subject to the jurisdiction of the Surface Transportation
Board;</text>
</subparagraph><subparagraph id="H66FC25162A20404893E0DEECCC8728DE"><enum>(D)</enum><text>the Federal
Aviation Act of 1958 (49 U.S.C. App. 1301 et seq.), by the Secretary of
Transportation, with respect to any air carrier or foreign air carrier subject
to that Act;</text>
</subparagraph><subparagraph id="H4DDE15348903465C8B20D78E6ECCDE13"><enum>(E)</enum><text>the Packers and
Stockyards Act, 1921 (7 U.S.C. 181 et seq.) (except as provided in section 406
of that Act), by the Secretary of Agriculture, with respect to any activities
subject to that Act;</text>
</subparagraph><subparagraph id="H3ECCFBAD5BDC482EA8830C28E1A259C4"><enum>(F)</enum><text>the Commodity
Exchange Act, with respect to a person subject to the jurisdiction of the
Commodity Futures Trading Commission;</text>
</subparagraph><subparagraph id="H92409EE466C8478BA621C2E60764A590"><enum>(G)</enum><text>the Federal
securities laws, and any other laws that are subject to the jurisdiction of the
Securities and Exchange Commission, with respect to a person that is subject to
the jurisdiction of the Securities and Exchange Commission; and</text>
</subparagraph><subparagraph id="H9960D69734A74505A3487DBECE25F423"><enum>(H)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau, with respect to any
person subject to this title.</text>
</subparagraph></paragraph><paragraph id="H8A595E4B7A164AD3B94BD33DAE0F3DF3"><enum>(2)</enum><header>Incorporated
definitions</header><text>The terms used in paragraph (1) that are not defined
in this title or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) have the same meanings as in section 1(b) of
the International Banking Act of 1978 (12 U.S.C.
3101).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0754950B6527481A83632CE04FBA5C1F"><enum>(C)</enum><text>in subsection
(c)(2)—</text>
<clause id="HAD036E49CA3F4723B9CF621EF513A733"><enum>(i)</enum><text>by
inserting <quote>and the Federal Trade Commission</quote> before <quote>or the
appropriate</quote>; and</text>
</clause><clause id="H6B3256A362CE4F37A322A86F1E868F32"><enum>(ii)</enum><text>by
inserting <quote>and the Federal Trade Commission</quote> before <quote>or
appropriate</quote> each place that term appears;</text>
</clause></subparagraph><subparagraph id="H1A08E4C4F83340E29379CDEABF8CDF39"><enum>(D)</enum><text>in subsection
(c)(4), by inserting before <quote>or the appropriate</quote> each place that
term appears the following: <quote>, the Federal Trade
Commission,</quote>;</text>
</subparagraph><subparagraph id="H1C38CBCB7F064E1FAE0D1D0A81C120B3"><enum>(E)</enum><text>by striking
subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA8D845BF00624F32873E389DEB20697A" style="OLC">
<subsection id="HCBD349E103704313AD0F960BD11080F9"><enum>(e)</enum><header>Regulatory
authority</header>
<paragraph id="HE878067A95E54EBC814EBD9C224ADF44"><enum>(1)</enum><header>In
general</header><text>The Bureau shall prescribe such regulations as are
necessary to carry out the purposes of this title, except with respect to
sections 615(e) and 628. The Bureau may prescribe regulations as may be
necessary or appropriate to administer and carry out the purposes and
objectives of this title, and to prevent evasions thereof or to facilitate
compliance therewith. Except as provided in section 1029(a) of the Consumer
Financial Protection Act of 2010, the regulations prescribed by the Bureau
under this title shall apply to any person that is subject to this title,
notwithstanding the enforcement authorities granted to other agencies under
this section.</text>
</paragraph><paragraph id="H8141395CBA91431F9B7DEA1211844D4B"><enum>(2)</enum><header>Deference</header><text>Notwithstanding
any power granted to any Federal agency under this title, the deference that a
court affords to a Federal agency with respect to a determination made by such
agency relating to the meaning or interpretation of any provision of this title
that is subject to the jurisdiction of such agency shall be applied as if that
agency were the only agency authorized to apply, enforce, interpret, or
administer the provisions of this title The regulations prescribed by the
Bureau under this title shall apply to any person that is subject to this
title, notwithstanding the enforcement authorities granted to other agencies
under this section.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H5219B51D796C4747A6189D2566F82D4D"><enum>(F)</enum><text>in subsection
(f)(2), by striking <quote>the Federal banking agencies</quote> and insert
<quote>the Federal Trade Commission, the Federal banking
agencies,</quote>;</text>
</subparagraph></paragraph><paragraph id="HCD44E3D7CFF5414DBD3DD81C9E95998C"><enum>(11)</enum><text>in section 623
(15 U.S.C. 1681s–2)—</text>
<subparagraph id="H0931798A03C946158D94A4A94B3E6E68"><enum>(A)</enum><text>in subsection
(a)(7), by striking subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC2A046FE70C49A2B4608EE29AAB0D87" style="OLC">
<subparagraph id="HD248F454C363464D9FE698B0DF1DC54D"><enum>(D)</enum><header>Model
disclosure</header>
<clause id="H0F2CF221EBFA4973B566F9D220406F05"><enum>(i)</enum><header>Duty of
Bureau</header><text>The Bureau shall prescribe a brief model disclosure that a
financial institution may use to comply with subparagraph (A), which shall not
exceed 30 words.</text>
</clause><clause id="H074B77A9EF3043A08874D709E53B198D"><enum>(ii)</enum><header>Use of model
not required</header><text>No provision of this paragraph may be construed to
require a financial institution to use any such model form prescribed by the
Bureau.</text>
</clause><clause id="H65FF614D1D784CEC8D15727C5C8DA15D"><enum>(iii)</enum><header>Compliance
using model</header><text>A financial institution shall be deemed to be in
compliance with subparagraph (A) if the financial institution uses any model
form prescribed by the Bureau under this subparagraph, or the financial
institution uses any such model form and rearranges its
format.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H26D4C86D501F4A38BF70561902C1FC0B"><enum>(B)</enum><text>in subsection
(a)(8), by inserting <quote>, in consultation with the Federal Trade
Commission, the Federal banking agencies, and the National Credit Union
Administration,</quote> before <quote>shall jointly</quote>; and</text>
</subparagraph><subparagraph id="H70D5D214ACD64C2294935D4BEFE4360B"><enum>(C)</enum><text>by striking
subsection (e) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H1ADDE22DD9134448998AEE612F896D74" style="OLC">
<subsection id="H299EE4A2ABD74DCB81D627C646AB829C"><enum>(e)</enum><header>Accuracy
guidelines and regulations required</header>
<paragraph id="HDACF799D94B24176A1AAACAD12E1B443"><enum>(1)</enum><header>Guidelines</header><text>The
Bureau shall, with respect to persons or entities that are subject to the
enforcement authority of the Bureau under section 621—</text>
<subparagraph id="HA994AEAB7751420D8A10C10C34C5CDCA"><enum>(A)</enum><text>establish and
maintain guidelines for use by each person that furnishes information to a
consumer reporting agency regarding the accuracy and integrity of the
information relating to consumers that such entities furnish to consumer
reporting agencies, and update such guidelines as often as necessary;
and</text>
</subparagraph><subparagraph id="HFA21B4F0F374494B89F4838DFD3D8BB1"><enum>(B)</enum><text>prescribe
regulations requiring each person that furnishes information to a consumer
reporting agency to establish reasonable policies and procedures for
implementing the guidelines established pursuant to subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H7EB4AF43467C4A8AA0303F8D619B010F"><enum>(2)</enum><header>Criteria</header><text>In
developing the guidelines required by paragraph (1)(A), the Bureau
shall—</text>
<subparagraph id="H4F59E54B12E64B989994A72E9FA0BE83"><enum>(A)</enum><text>identify patterns,
practices, and specific forms of activity that can compromise the accuracy and
integrity of information furnished to consumer reporting agencies;</text>
</subparagraph><subparagraph id="H0623CEBAB6714C7FA5B1F6F7B68EA409"><enum>(B)</enum><text>review the methods
(including technological means) used to furnish information relating to
consumers to consumer reporting agencies;</text>
</subparagraph><subparagraph id="HE962DE10E072435D927C73D35E091E95"><enum>(C)</enum><text>determine whether
persons that furnish information to consumer reporting agencies maintain and
enforce policies to ensure the accuracy and integrity of information furnished
to consumer reporting agencies; and</text>
</subparagraph><subparagraph id="H4D4D364DDFA34B59B5D0AB2B01C9DE04"><enum>(D)</enum><text>examine the
policies and processes that persons that furnish information to consumer
reporting agencies employ to conduct reinvestigations and correct inaccurate
information relating to consumers that has been furnished to consumer reporting
agencies.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6F2E289C9A154489B8F044B427D84874"><enum>(12)</enum><text>in section
628(a)(1) (15 U.S.C. 1681w(a)(1)), by striking <quote>Not later than</quote>
and all that follows through <quote>Exchange Commission,</quote> and inserting
<quote>The Federal Trade Commission, the Securities and Exchange Commission,
the Commodity Futures Trading Commission, the Federal banking agencies, and the
National Credit Union Administration, with respect to the entities that are
subject to their respective enforcement authority under section 621,</quote>;
and</text>
</paragraph><paragraph id="H2F63175D70ED4E8785401BC77DB31610"><enum>(13)</enum><text>in section
628(a)(3) (15 U.S.C. 1681w(a)(3)), by striking <quote>the Federal banking
agencies, the National Credit Union Administration, the Commission, and the
Securities and Exchange Commission</quote> and inserting <quote>the agencies
identified in paragraph (1)</quote>.</text>
</paragraph></subsection><subsection id="H26A752D9B2F4455E989AD40ACD047534"><enum>(b)</enum><header>Fair and
Accurate Credit Transactions Act of 2003</header><text display-inline="yes-display-inline">The Fair and Accurate Credit Transactions
Act of 2003 (Public Law 108–159) is amended—</text>
<paragraph id="HA71DFEE3093A40938341140897CA7DC2"><enum>(1)</enum><text>in section 112(b)
(15 U.S.C. 1681c–1 note), by striking <quote>Commission</quote> and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="HA61B560E5F6C41DD8B3DD902F33A2B38"><enum>(2)</enum><text>in section 211(d)
(15 U.S.C. 1681j note), by striking <quote>Commission</quote> each place that
term appears and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="H1E1070060F9C4F338BEC7467DD1B5DF2"><enum>(3)</enum><text>in section 214(b)
(15 U.S.C. 1681s–3 note), by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HBCF2C44467F646858DAB80D5FDD619C3" style="OLC">
<paragraph id="HF151B36139154E6B91CBE185C5047044"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Regulations to carry
out section 624 of the Fair Credit Reporting Act (15 U.S.C. 1681s–3), shall be
prescribed, as described in paragraph (2), by—</text>
<subparagraph id="HC3E04A20A91E405B984F98ACD5247216"><enum>(A)</enum><text display-inline="yes-display-inline">the Commodity Futures Trading Commission,
with respect to entities subject to its enforcement authorities;</text>
</subparagraph><subparagraph id="H82D78BD7F0CF4E7AA73D333E14A5936E"><enum>(B)</enum><text display-inline="yes-display-inline">the Securities and Exchange Commission,
with respect to entities subject to its enforcement authorities; and</text>
</subparagraph><subparagraph id="HA17DDC86F5C740A9A3A7BC8D81E7733B"><enum>(C)</enum><text display-inline="yes-display-inline">the Bureau, with respect to other entities
subject to this Act.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6AF5D1F7DC334EF2B89A31BE4CFAF22B"><enum>(4)</enum><text>in section
214(e)(1) (15 U.S.C. 1681s–3 note), by striking <quote>Commission</quote> and
inserting <quote>Bureau</quote>.</text>
</paragraph></subsection></section><section id="H3B4FBB31C7F84E85B4A5CBA71D4A6E31"><enum>1089.</enum><header>Amendments to
the Fair Debt Collection Practices Act</header><text display-inline="no-display-inline">The Fair Debt Collection Practices Act (15
U.S.C. 1692 et seq.) is amended—</text>
<paragraph commented="no" id="H7D59C54920F04ADBBAA9BBCB4BC88455"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Commission</quote> each
place that term appears and inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="H95FFE7119FE14120A5CF4964390D80F2"><enum>(2)</enum><text>in section 803 (15
U.S.C. 1692a)—</text>
<subparagraph id="HBCACC1DA82844F2186D20CAA2E6D3919"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H609EF6D9D49A4FC89A9290A33FD5D44D" style="OLC">
<paragraph id="H2D02D09073A74577808FFA72B21896B8"><enum>(1)</enum><text>The term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0284E5E5E3934C04AF713188AA471D38"><enum>(3)</enum><text>in section 814 (15
U.S.C. 1692l)—</text>
<subparagraph id="HC137CA14039245B98280AD5D360029B8"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE6A3363B56164DE29139C8BF35A0E0EC" style="OLC">
<subsection id="HBB1F043B69444CC2BAB9D80F596EE12D"><enum>(a)</enum><header>Federal Trade
Commission</header><text>The Federal Trade Commission shall be authorized to
enforce compliance with this title, except to the extent that enforcement of
the requirements imposed under this title is specifically committed to another
Government agency under any of paragraphs (1) through (5) of subsection (b),
subject to subtitle B of the Consumer Financial Protection Act of 2010. For
purpose of the exercise by the Federal Trade Commission of its functions and
powers under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), a
violation of this title shall be deemed an unfair or deceptive act or practice
in violation of that Act. All of the functions and powers of the Federal Trade
Commission under the Federal Trade Commission Act are available to the Federal
Trade Commission to enforce compliance by any person with this title,
irrespective of whether that person is engaged in commerce or meets any other
jurisdictional tests under the Federal Trade Commission Act, including the
power to enforce the provisions of this title, in the same manner as if the
violation had been a violation of a Federal Trade Commission trade regulation
rule.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H062A2C6633ED49DCB990BA77AC075F72"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="H31B90F8215414120B96762579B1888FD"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Subject to subtitle B
of the Consumer Financial Protection Act of 2010, compliance</quote>;</text>
</clause><clause id="HC3A9308FBBF840888E962ECDEEF5FCB3"><enum>(ii)</enum><text>by
striking paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8B1A1EB5F23E4752A437AE133D2E26DE" style="OLC">
<paragraph id="H2DB434621B8D44368A408970031BE131"><enum>(1)</enum><text>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 (12 U.S.C.
1813(q)), with respect to—</text>
<subparagraph id="H0ADF69790F5A4E98BE707E176738F992"><enum>(A)</enum><text>national banks,
Federal savings associations, and Federal branches and Federal agencies of
foreign banks;</text>
</subparagraph><subparagraph id="HD492C749A6BF4EEA9BB1718A046B6083"><enum>(B)</enum><text>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, and organizations operating under section 25 or
25A of the Federal Reserve Act; and</text>
</subparagraph><subparagraph id="HD51110F1EA7A4BD5BFB392BD0819EDF2"><enum>(C)</enum><text>banks and State
savings associations insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), and insured State branches
of foreign
banks;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="H9A4333D78141428F804A5855E6929F55"><enum>(iii)</enum><text>by
redesignating paragraphs (3) through (6), as paragraphs (2) through (5),
respectively;</text>
</clause><clause id="H1C7698CF6F30488A969B4C1B1D03C1DF"><enum>(iv)</enum><text>in
paragraph (4) (as so redesignated), by striking <quote>and</quote> at the
end;</text>
</clause><clause id="H62C61533D3BD471FBDD6681BAB4E2E3F"><enum>(v)</enum><text>in
paragraph (5) (as so redesignated), by striking the period at the end and
inserting <quote>; and</quote>; and</text>
</clause><clause id="H477432D9D33E4E3D82400BC353FA0C1D"><enum>(vi)</enum><text>by
inserting before the undesignated matter at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H31430EF49A7642FDA457D07D4F23665E" style="OLC">
<paragraph id="HD40ED484F79541879A304149B514B878"><enum>(6)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau, with respect to any
person subject to this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="HC1FE7DBB269743CAA36FFF4276C8D5EA"><enum>(4)</enum><text>in subsection (d),
by striking <quote>Neither the Commission</quote> and all that follows through
the end of the subsection and inserting the following: <quote>Except as
provided in section 1029(a) of the Consumer Financial Protection Act of 2010,
the Bureau may prescribe rules with respect to the collection of debts by debt
collectors, as defined in this title.</quote>.</text>
</paragraph></section><section id="H23DFC998DEC14CA9B6F25ABF6640C0F6"><enum>1090.</enum><header>Amendments to
the Federal Deposit Insurance Act</header><text display-inline="no-display-inline">The Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.) is amended—</text>
<paragraph id="HA531766C336F47EE9F3438CC0C07A765"><enum>(1)</enum><text display-inline="yes-display-inline">in section 8(t) (12 U.S.C. 1818(t)), by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H29DAC2285AC04F5498C0D28613EB1D1E" style="OLC">
<paragraph id="HA6351FA02D4549099030D631E940842A"><enum>(6)</enum><header>Referral to
Bureau of Consumer Financial Protection</header><text>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
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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB73297B6ED7A4D10BEF555F28C9AE057"><enum>(2)</enum><text>in section 43 (12
U.S.C. 1831t)—</text>
<subparagraph id="H051433DA29CF4B6EB3170B3D31D29118"><enum>(A)</enum><text>in subsection (c),
by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="H12DF28EC9FC54E65B14AA4877D6E9982"><enum>(B)</enum><text>in subsection (d),
by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Bureau</quote>;</text>
</subparagraph><subparagraph id="H04E7C1257E854BFCB11E9CAC0ACB4BCE"><enum>(C)</enum><text>in subsection
(e)—</text>
<clause id="H6A156D0E86664FA3B86A01415877A704"><enum>(i)</enum><text>in
paragraph (2), by striking <quote>Federal Trade Commission</quote> and
inserting <quote>Bureau</quote>; and</text>
</clause><clause id="HAE8EDD60849C44AA9DEBD641983D590D"><enum>(ii)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC1C62EC0267543489AD253C442D612A4" style="OLC">
<paragraph id="H187AFEDC25AD489FA94A1342912FD1C0"><enum>(5)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HC397C2956A1645938533ABE0E2AC1834"><enum>(D)</enum><text>in subsection
(f)—</text>
<clause id="HB91B152E05684EBAAFAC9063D3CEAB4B"><enum>(i)</enum><text>by
striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4604F5E0A07F40CF9F9DCB8291ED70EC" style="OLC">
<paragraph id="HD6B13BA1EF0D4B99B1D9C2C1A172D85D"><enum>(1)</enum><header>Limited
enforcement authority</header><text>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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H3F4E58AFA7334908B90C843338726E49"><enum>(ii)</enum><text>in
paragraph (2), by striking subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3F0385C6DB8240C5A5BAC332C57843D4" style="OLC">
<subparagraph id="HEAEBEB371424402FBB657D9BD6301D6B"><enum>(C)</enum><header>Limitation on
State action while Federal action pending</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph></section><section id="HFF76D35C0D204B058D3E4E918A3A58CB"><enum>1091.</enum><header>Amendment to
Federal Financial Institutions Examination Council Act of 1978</header><text display-inline="no-display-inline">Section 1004(a)(4) of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)(4)) is amended
by striking <quote>Director, Office of Thrift Supervision</quote> and inserting
<quote>Director of the Consumer Financial Protection Bureau</quote>.</text>
</section><section id="HA7CC88929F534F63A8F8D7F9439DD377"><enum>1092.</enum><header>Amendments to
the Federal Trade Commission Act</header><text display-inline="no-display-inline">Section 18(f) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)) is amended—</text>
<paragraph id="HA019A16FBEFF41EBAEED56C24A12B9EB"><enum>(1)</enum><text>by striking the
subsection heading and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H899E1769D72B4D779A4CF5AF7F484B14" style="OLC">
<subsection id="H91482E35BC004680A7F783EB8EC71CB0"><enum>(f)</enum><header>Definitions of
banks, savings and loan institutions, and Federal credit
unions</header>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDB7133667B684C0EB40C80C15A52F62A"><enum>(2)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HB2E9BC9263C24D74BB4DD778E0E33B2E" style="OLC">
<paragraph id="H24B13F32C17641609E02DFC1DD894348"><enum>(1)</enum><text>[Repealed.]</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD272D28AEFBF4E4D97BBC9EDAB541237"><enum>(3)</enum><text>by striking
paragraphs (5) through (7);</text>
</paragraph><paragraph id="H784BDE7D1AD74B0F8386165ED8E401C3"><enum>(4)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HA36FB3747984464F8D2EB6FEC9F01BAE"><enum>(A)</enum><text>by striking
<quote>(2) <header-in-text level="paragraph" style="OLC">Enforcement</header-in-text></quote> and all that follows through
<quote>in the case of</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H58B7A5A56D334C019EB3FED9F22B4EEF" style="OLC">
<paragraph id="HCFD61BF6349443208A8B5C789C365210"><enum>(2)</enum><header>Definition</header><text>For
purposes of this Act, the term <quote>bank</quote>
means</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H19EE45A778D74B9C8AE5027A17860290"><enum>(B)</enum><text>in subparagraph
(A), by striking <quote>, by the division</quote> and all that follows through
<quote>Currency</quote>;</text>
</subparagraph><subparagraph id="HFDCA1276DA0C45AFBA87DEAFD440AF0D"><enum>(C)</enum><text>in subparagraph
(B)—</text>
<clause id="H65D7F1F3FC8340BFAE0045971A7AB16D"><enum>(i)</enum><text>by
striking <quote>, by the division</quote> and all that follows through
<quote>System</quote>; and</text>
</clause><clause id="H6999126389D04288A0945A233A56684A"><enum>(ii)</enum><text>by
striking <quote>25(a)</quote> and inserting <quote>25A</quote>; and</text>
</clause></subparagraph><subparagraph id="H9BF35336DE5648FCB505A3705F2EB2F7"><enum>(D)</enum><text>in subparagraph
(C)—</text>
<clause id="HCA985DDB99C94D2FBEFF7B6665416B58"><enum>(i)</enum><text>by
striking <quote>(other</quote> and inserting <quote>(other than</quote>;
and</text>
</clause><clause id="H4F18B2533CCF483DB74735545D540DC5"><enum>(ii)</enum><text>by
striking <quote>, by the division</quote> and all that follows through
<quote>Corporation</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="HE14858DE02BB46F3BC17BBBB0295096F"><enum>(5)</enum><text>in paragraph (3),
by striking <quote>Compliance</quote> and all that follows through <quote>as
defined in</quote> and inserting the following: “For purposes of this Act, the
term <quote>savings and loan institution</quote> has the same meaning as in”;
and</text>
</paragraph><paragraph id="H3DDA54131BE0419DAD8CD81BC640357A"><enum>(6)</enum><text>in paragraph (4),
by striking <quote>Compliance</quote> and all that follows through
<quote>credit unions under</quote> and inserting the following: “For purposes
of this Act, the term <quote>Federal credit union</quote> has the same meaning
as in”.</text>
</paragraph></section><section id="H579DFE2622FC4FEDACDB4BF56526A57E"><enum>1093.</enum><header>Amendments to
the Gramm-Leach-Bliley Act</header><text display-inline="no-display-inline">Title V of the Gramm-Leach-Bliley Act (15
U.S.C. 6801 et seq.) is amended—</text>
<paragraph id="H106469ED073A44E88AAE0599F0E3193F"><enum>(1)</enum><text>in section 501(b)
(15 U.S.C. 6801(b)), by inserting <quote>, other than the Bureau of Consumer
Financial Protection,</quote> after <quote>505(a)</quote>;</text>
</paragraph><paragraph id="H8AAB363EECB8425D8A55C8A97F6AAD90"><enum>(2)</enum><text>in section
502(e)(5) (15 U.S.C. 6802(e)(5)), by inserting <quote>the Bureau of Consumer
Financial Protection</quote> after <quote>(including</quote>;</text>
</paragraph><paragraph id="H54DC7186004B4A6C99421334C02211E5"><enum>(3)</enum><text>in section 504(a)
(15 U.S.C. 6804(a))—</text>
<subparagraph id="H6DF0046A7C1040308B2336AEB0C7645B"><enum>(A)</enum><text>by striking
paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HD2AE4BC5F73C45C28696FE8EDEEE0BBF" style="OLC">
<paragraph id="H3D4D292B15304B32B34F4F5ED66EC456"><enum>(1)</enum><header>Rulemaking</header>
<subparagraph id="H41F4CAC49BD74ABB9D1F9146B1A330A2"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (C), the Bureau of
Consumer Financial Protection 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 shall not have
authority to prescribe regulations with respect to the standards under section
501.</text>
</subparagraph><subparagraph id="H3A9350BFC3D243BE91465E1F2B56B24D"><enum>(B)</enum><header>CFTC</header><text>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.</text>
</subparagraph><subparagraph id="H64EF526115294ED189B01F75F90ABF07"><enum>(C)</enum><header>Federal Trade
Commission Authority</header><text>Notwithstanding the authority of the Bureau
of Consumer Financial Protection 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.</text>
</subparagraph><subparagraph id="H2BC1FB5BFA8547CE95DB6A541A063566"><enum>(D)</enum><header>Rule of
construction</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H4D1574139052447A96BBA77957E7D529"><enum>(2)</enum><header>Coordination,
consistency, and comparability</header><text>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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H39BB8EF12C27411EA2629307F3404E65"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>, and shall be issued in final form not later than 6 months
after the date of enactment of this Act</quote>;</text>
</subparagraph></paragraph><paragraph id="H4FFC6A46CD844383A04ACC0188D57819"><enum>(4)</enum><text>in section 505(a)
(15 U.S.C. 6805(a))—</text>
<subparagraph id="H74DB506C057D48C2BECEF6055C4E7C4C"><enum>(A)</enum><text>by striking
<quote>This subtitle</quote> and all that follows through <quote>as
follows:</quote> and inserting <quote>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,
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:</quote>;</text>
</subparagraph><subparagraph id="H748D3F0FD12B4A56BD461FEE00BB776A"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause id="HA355E2D3B85548758155C1185F9CA127"><enum>(i)</enum><text>in
the matter preceding subparagraph (A), by inserting <quote>by the appropriate
Federal banking agency, as defined in section 3(q) of the Federal Deposit
Insurance Act,</quote> after <quote>Act,</quote>;</text>
</clause><clause id="HBF61015EA2514EFB8F189D7DB99554F8"><enum>(ii)</enum><text>in
subparagraph (A), by striking <quote>, by the Office of the Comptroller of the
Currency</quote>;</text>
</clause><clause id="H7378E3C261974DBD9A66626F6BA85607"><enum>(iii)</enum><text>in
subparagraph (B), by striking <quote>, by the Board of Governors of the Federal
Reserve System</quote>;</text>
</clause><clause id="HE61923CC4AD2416FA61BBF0A258E6F48"><enum>(iv)</enum><text>in
subparagraph (C), by striking <quote>, by the Board of Directors of the Federal
Deposit Insurance Corporation</quote>; and</text>
</clause><clause id="H96EA772A16AA413FADBF428A2F327CF6"><enum>(v)</enum><text>in
subparagraph (D), by striking <quote>, by the Director of the Office of Thrift
Supervision</quote>; and</text>
</clause></subparagraph><subparagraph id="HD4A799FEC45B418BA2E0FA19F7FFEF2B"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB19AC6AE817440F99B26E4D762EB4604" style="OLC">
<paragraph id="H6E14951871484BA9A7490BAD7AABA0FC"><enum>(8)</enum><text>Under subtitle E
of the Consumer Financial Protection Act of 2010, by the Bureau of Consumer
Financial Protection, 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.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H02B3D076C86F4EDF9A35E5A30ABB9FA8"><enum>(5)</enum><text>in section
505(b)(1) (15 U.S.C. 6805(b)(1)), by inserting <quote>, other than the Bureau
of Consumer Financial Protection, </quote> after <quote>subsection (a)</quote>;
and</text>
</paragraph><paragraph id="H9D0E413F82D142CF9A2AB2D14FDF6B37"><enum>(6)</enum><text>in section 507(b)
(15 U.S.C. 6807), by striking <quote>Federal Trade Commission</quote> and
inserting <quote>Bureau of Consumer Financial Protection</quote>.</text>
</paragraph></section><section id="H4A9C55FCE8C54868859F30FA8CAEF044"><enum>1094.</enum><header>Amendments to
the Home Mortgage Disclosure Act of 1975</header><text display-inline="no-display-inline">The Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.) is amended—</text>
<paragraph id="H9050B285668B4190995B7BF699694460"><enum>(1)</enum><text>by striking
<quote>Board</quote> each place that term appears, other than in sections 303,
304(h), 305(b) (as amended by this section), and 307(a) (as amended by this
section) and inserting <quote>Bureau</quote>.</text>
</paragraph><paragraph id="H9613CB3ECABE469DB2B0304727D4CE58"><enum>(2)</enum><text>in section 303 (12
U.S.C. 2802)—</text>
<subparagraph id="HACD493C6CFC64F6EA8424266D552ECAC"><enum>(A)</enum><text>by redesignating
paragraphs (1) through (6) as paragraphs (2) through (7), respectively;
and</text>
</subparagraph><subparagraph id="H71135A43763147458CA02137A6454710"><enum>(B)</enum><text>by inserting
before paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="H898654082F04498B8EBC997F96732D96" style="OLC">
<paragraph id="H0332E120547B444EAE8E6522D694EAB3"><enum>(1)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H012A0F43DCB24B23BB97B0E2E75EEFD4"><enum>(3)</enum><text>in section 304 (12
U.S.C. 2803)—</text>
<subparagraph id="H2817B9F881A3468F80159D791051567A"><enum>(A)</enum><text>in subsection
(b)—</text>
<clause id="H8BD6020FFD1F49C49E6C16A9389C119C"><enum>(i)</enum><text>in
paragraph (4), by inserting <quote>age,</quote> before <quote>and
gender</quote>;</text>
</clause><clause id="H15D203DCAE2440FCAE7A11BD1EAF8434"><enum>(ii)</enum><text>in
paragraph (3), by striking <quote>and</quote> at the end;</text>
</clause><clause id="HA282906C58FC47CB961E760F0F15D1DA"><enum>(iii)</enum><text>in
paragraph (4), by striking the period at the end and inserting a semicolon;
and</text>
</clause><clause id="H754FFCDA5EBF438A915E735D92B6B55E"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1948C339BC3048E8AB9C215A45ED2B38" style="OLC">
<paragraph id="HB80D6F8FC65D4DA897783329123C7B4D"><enum>(5)</enum><text>the number and
dollar amount of mortgage loans grouped according to measurements of—</text>
<subparagraph id="HDDD59F3D24674854B471C9F3BF6F9347"><enum>(A)</enum><text>the total points
and fees payable at origination in connection with the mortgage as determined
by the Bureau, taking into account 15 U.S.C. 1602(aa)(4);</text>
</subparagraph><subparagraph id="H9EB200FCDABB41488C4EA6E0E1A1FB9C"><enum>(B)</enum><text>the difference
between the annual percentage rate associated with the loan and a benchmark
rate or rates for all loans;</text>
</subparagraph><subparagraph id="H5AB7779C5B8247BE8859125727B7F22A"><enum>(C)</enum><text>the term in months
of any prepayment penalty or other fee or charge payable on repayment of some
portion of principal or the entire principal in advance of scheduled payments;
and</text>
</subparagraph><subparagraph id="H232E69AE0EDF4FA8B9FCE9F29C10B018"><enum>(D)</enum><text>such other
information as the Bureau may require; and</text>
</subparagraph></paragraph><paragraph id="H8D09328E290B46E3914E8246CCC048C6"><enum>(6)</enum><text>the number and
dollar amount of mortgage loans and completed applications grouped according to
measurements of—</text>
<subparagraph id="HC20C426F4266458FAEB6BAEECB0F6F58"><enum>(A)</enum><text>the value of the
real property pledged or proposed to be pledged as collateral;</text>
</subparagraph><subparagraph id="HBBDD67039EFF49F2B033C80F2D9EBCD6"><enum>(B)</enum><text>the actual or
proposed term in months of any introductory period after which the rate of
interest may change;</text>
</subparagraph><subparagraph id="H4BA3D9154EB544289C87C6601E133984"><enum>(C)</enum><text>the presence of
contractual terms or proposed contractual terms that would allow the mortgagor
or applicant to make payments other than fully amortizing payments during any
portion of the loan term;</text>
</subparagraph><subparagraph id="HA4D38A141BF944E9B4359C3053C1823F"><enum>(D)</enum><text>the actual or
proposed term in months of the mortgage loan;</text>
</subparagraph><subparagraph id="HD4BC6422FBDE46C0AFA8D871135F37F9"><enum>(E)</enum><text>the channel
through which application was made, including retail, broker, and other
relevant categories;</text>
</subparagraph><subparagraph id="H726AA67856AA4BF0B060450D0578609F"><enum>(F)</enum><text>as the Bureau may
determine to be appropriate, a unique identifier that identifies the loan
originator as set forth in section 1503 of the S.A.F.E. Mortgage Licensing Act
of 2008;</text>
</subparagraph><subparagraph id="H8717EE5B1EE0451A96FFB63417B1C956"><enum>(G)</enum><text>as the Bureau may
determine to be appropriate, a universal loan identifier;</text>
</subparagraph><subparagraph id="H355C1CC6FAAE45599FE8B4C57BDADE53"><enum>(H)</enum><text>as the Bureau may
determine to be appropriate, the parcel number that corresponds to the real
property pledged or proposed to be pledged as collateral;</text>
</subparagraph><subparagraph id="H9E015A778E5941F19079A7B2167ECCAB"><enum>(I)</enum><text>the credit score
of mortgage applicants and mortgagors, in such form as the Bureau may
prescribe; and</text>
</subparagraph><subparagraph id="HA7D435FD9342438BB7CEEE05E6A5913A"><enum>(J)</enum><text>such other
information as the Bureau may
require.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HC9E92C4B9704451F965D63183FAFCC65"><enum>(B)</enum><text>by striking
subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEA0D87F0E8174052AA6286F9FD937309" style="OLC">
<subsection id="H04E106F1A6A34AD5A40DA124DD6AA100"><enum>(h)</enum><header>Submission to
agencies</header>
<paragraph id="HC825B92CCD4E4374A820258F82C06F0D"><enum>(1)</enum><header>In
general</header><text>The data required to be disclosed under subsection (b)
shall be submitted to the Bureau or to the appropriate agency for the
institution reporting under this title, in accordance with rules prescribed by
the Bureau. Notwithstanding the requirement of subsection (a)(2)(A) for
disclosure by census tract, the Bureau, in consultation with other appropriate
agencies described in paragraph (2) and, after notice and comment, shall
develop regulations that—</text>
<subparagraph id="H356DFD97B74242F08A6A3196E823A1E6"><enum>(A)</enum><text>prescribe the
format for such disclosures, the method for submission of the data to the
appropriate agency, and the procedures for disclosing the information to the
public;</text>
</subparagraph><subparagraph id="H3C9189C042AF4B588ABE4104C142C2BD"><enum>(B)</enum><text>require the
collection of data required to be disclosed under subsection (b) with respect
to loans sold by each institution reporting under this title;</text>
</subparagraph><subparagraph id="H96499FBF7D6A47948049C9A21E6CF681"><enum>(C)</enum><text>require disclosure
of the class of the purchaser of such loans;</text>
</subparagraph><subparagraph id="HEF8D6BA340274807AAC34580AC2D9F97"><enum>(D)</enum><text>permit any
reporting institution to submit in writing to the Bureau or to the appropriate
agency such additional data or explanations as it deems relevant to the
decision to originate or purchase mortgage loans; and</text>
</subparagraph><subparagraph id="H9169EB48144646C3AE83141BA8D3AF56"><enum>(E)</enum><text>modify or require
modification of itemized information, for the purpose of protecting the privacy
interests of the mortgage applicants or mortgagors, that is or will be
available to the public.</text>
</subparagraph></paragraph><paragraph id="H5AD0157583F141E19A0E33154A9608FB"><enum>(2)</enum><header>Other
appropriate agencies</header><text>The appropriate agencies described in this
paragraph are—</text>
<subparagraph id="H654F7040D0604EEB8E8B600E10FDA2FC"><enum>(A)</enum><text>the appropriate
Federal banking agencies, as defined in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)), with respect to the entities that are
subject to the jurisdiction of each such agency, respectively;</text>
</subparagraph><subparagraph commented="no" id="H8412334EA3134A75B7A5F4E45A4BEC1D"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation for banks insured by the Federal Deposit
Insurance Corporation (other than members of the Federal Reserve System),
mutual savings banks, insured State branches of foreign banks, and any other
depository institution described in section 303(2)(A) which is not otherwise
referred to in this paragraph;</text>
</subparagraph><subparagraph id="H2CCE1F7B395D4D0D9007C23F438C9121"><enum>(C)</enum><text>the National
Credit Union Administration Board with respect to credit unions; and</text>
</subparagraph><subparagraph id="HD166E19E8B8D4A6A8CB3B0C104F1F8B7"><enum>(D)</enum><text>the Secretary of
Housing and Urban Development with respect to other lending institutions not
regulated by the agencies referred to in subparagraph (A) or (B).</text>
</subparagraph></paragraph><paragraph id="H291D34B0C7FF40EE9F01C61E80C7F7BE"><enum>(3)</enum><header>Rules for
modifications under paragraph (1)</header>
<subparagraph id="H12AAAD4300F14E938F70201D5A72423A"><enum>(A)</enum><header>Application</header><text>A
modification under paragraph (1)(E) shall apply to information
concerning—</text>
<clause id="H11E6B4345AD64D009CD78DBB9A0FF7CE"><enum>(i)</enum><text>credit score data
described in subsection (b)(6)(I), in a manner that is consistent with the
purpose described in paragraph (1)(E); and</text>
</clause><clause id="HB120B791C45149AFA7A7AAD199FD33FE"><enum>(ii)</enum><text>age or any other
category of data described in paragraph (5) or (6) of subsection (b), as the
Bureau determines to be necessary to satisfy the purpose described in paragraph
(1)(E), and in a manner consistent with that purpose.</text>
</clause></subparagraph><subparagraph id="HAB93515DF8334832B3E4B7DF8656AE99"><enum>(B)</enum><header>Standards</header><text>The
Bureau shall prescribe standards for any modification under paragraph (1)(E) to
effectuate the purposes of this title, in light of the privacy interests of
mortgage applicants or mortgagors. Where necessary to protect the privacy
interests of mortgage applicants or mortgagors, the Bureau shall provide for
the disclosure of information described in subparagraph (A) in aggregate or
other reasonably modified form, in order to effectuate the purposes of this
title.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H614B353316E549008CD24E4C940AB004"><enum>(C)</enum><text>in subsection (i),
by striking <quote>subsection (b)(4)</quote> and inserting <quote>subsections
(b)(4), (b)(5), and (b)(6)</quote>;</text>
</subparagraph><subparagraph id="H75120547D979407AB1163D9AEB7F45A2"><enum>(D)</enum><text>in subsection
(j)—</text>
<clause id="H6064E74C90BC4A1093842AD0B49E5E05"><enum>(i)</enum><text>by
striking paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H671943B94F574295A6E1108F51B8331E" style="OLC">
<paragraph id="H0889AB25348444ACB016EDEAD9992347"><enum>(3)</enum><header>Change of form
not required</header><text>A depository institution meets the disclosure
requirement of paragraph (1) if the institution provides the information
required under such paragraph in such formats as the Bureau may
require</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H3B7FD1E1609D4081A3B8671CFB8CFB07"><enum>(ii)</enum><text>in
paragraph (2)(A), by striking <quote>in the format in which such information is
maintained by the institution</quote> and inserting <quote>in such formats as
the Bureau may require</quote>;</text>
</clause></subparagraph><subparagraph id="H95A9CB9A537E49F2A86747E24F726473"><enum>(E)</enum><text>in subsection (m),
by striking paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H93AFC1210E8D4D428D534C583D8E31F0" style="OLC">
<paragraph id="H6576AD434AE540679D96B81093664946"><enum>(2)</enum><header>Form of
information</header><text>In complying with paragraph (1), a depository
institution shall provide the person requesting the information with a copy of
the information requested in such formats as the Bureau may
require.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HBD41148412424CDB8DFE7645C048E32A"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA45D5E81612B41E79C45A19F8BB5292E" style="OLC">
<subsection commented="no" id="H3D2777844E1547DB8E1C5614B9271008"><enum>(n)</enum><header>Timing of
certain disclosures</header><text>The data required to be disclosed under
subsection (b) shall be submitted to the Bureau or to the appropriate agency
for any institution reporting under this title, in accordance with regulations
prescribed by the Bureau. Institutions shall not be required to report new data
under paragraph (5) or (6) of subsection (b) before the first January 1 that
occurs after the end of the 9-month period beginning on the date on which
regulations are issued by the Bureau in final form with respect to such
disclosures.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC45C2BA8619F4287BF4E30A6C7E099AE"><enum>(4)</enum><text>in section 305 (12
U.S.C. 2804)—</text>
<subparagraph id="H2B30EB3F9E8C4B9FBC240467D8C4EE27"><enum>(A)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H1D7E8221EDED49EEAF635DA0AF30CB21" style="OLC">
<subsection id="HF908370F1A8144BBB1F7EBCA090A9AD5"><enum>(b)</enum><header>Powers of
certain other agencies</header>
<paragraph id="HFA19471232FB4FF99B7D1D7426A26E9C"><enum>(1)</enum><header>In
general</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, compliance with the requirements of this title shall be
enforced—</text>
<subparagraph id="HEFC84780E92243FFBD54A8037D526C9F"><enum>(A)</enum><text>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—</text>
<clause id="H2E75B545199949C29C88E46E49F4F752"><enum>(i)</enum><text>any national bank
or Federal savings association, and any Federal branch or Federal agency of a
foreign bank;</text>
</clause><clause id="H41A3A94E67714D6F8DCEACC7A935B29E"><enum>(ii)</enum><text>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</text>
</clause><clause id="H65FDFB8276414ACF91F33A126D6023CF"><enum>(iii)</enum><text>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);</text>
</clause></subparagraph><subparagraph id="HDE862E3553244E9388684D04D92023C0"><enum>(B)</enum><text>under subtitle E
of the Consumer Financial Protection Act of 2010, by the Bureau, with respect
to any person subject to this subtitle;</text>
</subparagraph><subparagraph id="H51F0FD41BA054F0BA6C0E55B83E21867"><enum>(C)</enum><text>under the Federal
Credit Union Act, by the Administrator of the National Credit Union
Administration with respect to any insured credit union; and</text>
</subparagraph><subparagraph id="H149E9CC2E1C04F528A42775B34A50A16"><enum>(D)</enum><text>with respect to
other lending institutions, by the Secretary of Housing and Urban
Development.</text>
</subparagraph></paragraph><paragraph id="H963F41ED5B0649F58492059442D06FBC"><enum>(2)</enum><header>Incorporated
definitions</header><text>The terms used in paragraph (1) that are not defined
in this title or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) shall have the same meanings as in section
1(b) of the International Banking Act of 1978 (12 U.S.C.
3101).</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H62E599EF3C274B9DAB658C08D3C42555"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF548AD214C374428A648279E4D3D98C4" style="OLC">
<subsection id="HA66BDCF8C2DA44959F02DE06169CF162"><enum>(d)</enum><header>Overall
enforcement authority of the Bureau of Consumer Financial
Protection</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, enforcement of the requirements imposed under this
title is committed to each of the agencies under subsection (b). To facilitate
research, examinations, and enforcement, all data collected pursuant to section
304 shall be available to the entities listed under subsection (b). The Bureau
may exercise its authorities under the Consumer Financial Protection Act of
2010 to exercise principal authority to examine and enforce compliance by any
person with the requirements of this
title.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HDE55B240B993420E99F01EA0C3A38FB5"><enum>(5)</enum><text>in section 306 (12
U.S.C. 2805(b)), by striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H1B889219207D45A2B54278641EC0C82D" style="OLC">
<subsection id="H5E8BAEC7C3964ABBB560ED6F0C78EE9A"><enum>(b)</enum><header>Exemption
authority</header><text>The Bureau may, by regulation, exempt from the
requirements of this title any State-chartered depository institution within
any State or subdivision thereof, if the agency determines that, under the law
of such State or subdivision, that institution is subject to requirements that
are substantially similar to those imposed under this title, and that such law
contains adequate provisions for enforcement. Notwithstanding any other
provision of this subsection, compliance with the requirements imposed under
this subsection shall be enforced by the Office of the Comptroller of the
Currency under section 8 of the Federal Deposit Insurance Act, in the case of
national banks and Federal savings associations, the deposits of which are
insured by the Federal Deposit Insurance
Corporation.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6530475B182A41CDAC0DB7032D208B4C"><enum>(6)</enum><text>by striking
section 307 (12 U.S.C. 2806) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C9351FCBC3A4B119D78864B7A858AD0" style="OLC">
<section id="HF28A3DEA030B4C708B7D5BBACE2D7D91"><enum>307.</enum><header>Compliance
improvement methods</header>
<subsection id="HA0F803EEB3B940619A9EB707DE0BD39D"><enum>(a)</enum><header>In
general</header>
<paragraph id="H223EC201299E47BF87C91EF288774FD4"><enum>(1)</enum><header>Consultation
required</header><text>The Director of the Bureau of Consumer Financial
Protection, with the assistance of the Secretary, the Director of the Bureau of
the Census, the Board of Governors of the Federal Reserve System, the Federal
Deposit Insurance Corporation, and such other persons as the Bureau deems
appropriate, shall develop or assist in the improvement of, methods of matching
addresses and census tracts to facilitate compliance by depository institutions
in as economical a manner as possible with the requirements of this
title.</text>
</paragraph><paragraph id="HB9C22DD9A9644B798305B0AE58439C91"><enum>(2)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated, such sums
as may be necessary to carry out this subsection.</text>
</paragraph><paragraph id="HB86810F81C2A44D5BC7447C40B2ECA4D"><enum>(3)</enum><header>Contracting
authority</header><text>The Director of the Bureau of Consumer Financial
Protection is authorized to utilize, contract with, act through, or compensate
any person or agency in order to carry out this subsection.</text>
</paragraph></subsection><subsection id="HD47D96AA236546A0811BB895A8A43B62"><enum>(b)</enum><header>Recommendations
to Congress</header><text>The Director of the Bureau of Consumer Financial
Protection shall recommend to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives, such additional legislation as the Director of the Bureau of
Consumer Financial Protection deems appropriate to carry out the purpose of
this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H6BBE90D939BC44659306D96646753C6B"><enum>1095.</enum><header>Amendments to
the Homeowners Protection Act of 1998</header><text display-inline="no-display-inline">Section 10 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4909) is amended—</text>
<paragraph id="HCC3B873A11D04600AE50653B2E4FE6C9"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HDDD7B8321B8A4D3285475315C49DB770"><enum>(A)</enum><text>by striking
<quote>Compliance</quote> and all that follows through the end of paragraph (1)
and inserting the following: “Subject to subtitle B of the Consumer Financial
Protection Act of 2010, compliance with the requirements imposed under this Act
shall be enforced under—</text>
<quoted-block display-inline="no-display-inline" id="HC9FC98E759FD42D29C179756E7821584" style="OLC">
<paragraph id="HF77B7C34BA9F4A8BB350CAD975EB846A"><enum>(1)</enum><text>section 8 of the
Federal Deposit Insurance Act, by the appropriate Federal banking agency (as
defined in section 3(q) of that Act), with respect to—</text>
<subparagraph id="H934E105974794AABB8900CD1773B5EB2"><enum>(A)</enum><text>insured depository
institutions (as defined in section 3(c)(2) of that Act);</text>
</subparagraph><subparagraph id="H9C73D4A53DE343CEB8E7EE13C036F325"><enum>(B)</enum><text>depository
institutions described in clause (i), (ii), or (iii) of section 19(b)(1)(A) of
the Federal Reserve Act which are not insured depository institutions (as
defined in section 3(c)(2) of the Federal Deposit Insurance Act); and</text>
</subparagraph><subparagraph id="H3F8532C09B8B4D9DA654C567A5F55F5D"><enum>(C)</enum><text>depository
institutions described in clause (v) or (vi) of section 19(b)(1)(A) of the
Federal Reserve Act which are not insured depository institutions (as defined
in section 3(c)(2) of the Federal Deposit Insurance
Act);</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H37A717D07A4D46AB822609B41A0D7679"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HF8E880779C9C4595AC0A0186EA827A5E"><enum>(C)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H74FBBCF0B0F841168CBCE3AB8D606533"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4E15588D547243DD9D4555B9745CAE6F" style="OLC">
<paragraph id="H54B0161AD6E94FC79CFD0B600059726C"><enum>(4)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau of Consumer Financial
Protection, with respect to any person subject to this
Act.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H26D3DDD14BE74230B7E65D5E0E08339B"><enum>(2)</enum><text>in subsection
(b)(2), by inserting before the period at the end the following: <quote>,
subject to subtitle B of the Consumer Financial Protection Act of
2010</quote>.</text>
</paragraph></section><section id="HAC91FDD7EF3249BB82C31B04B035AB9A"><enum>1096.</enum><header>Amendments to
the Home Ownership and Equity Protection Act of 1994</header><text display-inline="no-display-inline">The Home Ownership and Equity Protection Act
of 1994 (15 U.S.C. 1601 note) is amended—</text>
<paragraph id="H47F31B058FB54F338F7BA5FF36B63078"><enum>(1)</enum><text>in section 158(a),
by striking <quote>Board of Governors of the Federal Reserve System, in
consultation with the Consumer Advisory Council of the Board</quote> and
inserting <quote>Bureau, in consultation with the Advisory Board to the
Bureau</quote>; and</text>
</paragraph><paragraph id="HF1EDCEF8D7424152AC8F2B476DCE2897"><enum>(2)</enum><text>in section 158(b),
by striking <quote>Board of Governors of the Federal Reserve System</quote> and
inserting <quote>Bureau</quote>.</text>
</paragraph></section><section id="H1113FE5C70D94F6793B5353968B73014"><enum>1097.</enum><header>Amendments to
the Omnibus Appropriations Act, 2009</header><text display-inline="no-display-inline">Section 626 of the Omnibus Appropriations
Act, 2009 (15 U.S.C. 1638 note) is amended—</text>
<paragraph id="H5C929982116246FA897DFF56DD586E17"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEE2E0AFA8E50409FA926D34FD4A73712" style="OLC">
<subsection id="H184C2EB1D5C945E4B743D954BF3DAFE5"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H3AD75996F7934BD9951CF674A698FC0D"><enum>(1)</enum><text>The Bureau of Consumer
Financial Protection 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.</text>
</paragraph><paragraph id="H589972B6631243FF8B86C7B5E2ED5E1B" indent="up1"><enum>(2)</enum><text>The Bureau of Consumer Financial
Protection 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.</text>
</paragraph><paragraph id="HEAB05B0B761A4045A084ACF0441C1827" indent="up1"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6B980FD137A4411DB4EF95749AE6B4D1"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H2C9FFB4A0108447C9DF856107CA4AC12"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEC3F64F3C86E442DB21A81672A6A2547" style="OLC">
<paragraph id="H0B44486112D44488BFA8365F2CD4D004"><enum>(1)</enum><text>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—</text>
<subparagraph id="HA51B0448DBBD4AEFAECECE1782F104F3"><enum>(A)</enum><text>to enjoin that
practice;</text>
</subparagraph><subparagraph id="H8899EF9A06C74AC0A11EA93ADA71F6F5"><enum>(B)</enum><text>to enforce
compliance with the rule;</text>
</subparagraph><subparagraph id="H271DFDE32CFE40268301664149863D30"><enum>(C)</enum><text>to obtain damages,
restitution, or other compensation on behalf of the residents of the State;
or</text>
</subparagraph><subparagraph id="H237763D0AFA04B5DADB38E64D5626AB2"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2D19D4DEC16B435A8D6DEBB0C5AFB8E3"><enum>(B)</enum><text>in paragraphs (2)
and (3), by striking <quote>the primary Federal regulator</quote> each time the
term appears and inserting <quote>the Bureau of Consumer Financial Protection
or the Commission, as appropriate</quote>;</text>
</subparagraph><subparagraph id="H0A96DDCD82A4472EBC0AAC19AFF89638"><enum>(C)</enum><text>in paragraph (3),
by inserting <quote>and subject to subtitle B of the Consumer Financial
Protection Act of 2010,</quote> after <quote>paragraph (2),</quote>; and</text>
</subparagraph><subparagraph id="H444AF9EAB4CB4E75A174D947D06E74A7"><enum>(D)</enum><text>in paragraph (6),
by striking <quote>the primary Federal regulator</quote> each place that term
appears and inserting <quote>the Bureau of Consumer Financial Protection or the
Commission</quote>.</text>
</subparagraph></paragraph></section><section id="HCE024F1959604AC99479A9A71672DAC4"><enum>1098.</enum><header>Amendments to
the Real Estate Settlement Procedures Act of 1974</header><text display-inline="no-display-inline">The Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2601 et seq.) is amended—</text>
<paragraph id="H5A31564BB0B84ECCB761DAAD1D8BA6A3"><enum>(1)</enum><text>in section 3 (12
U.S.C. 2602)—</text>
<subparagraph id="H845A094DC1144802AD1482C9F7F72230"><enum>(A)</enum><text>in paragraph (7),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HFD186604B6F7403FB49299B5A681ED97"><enum>(B)</enum><text>in paragraph (8),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="HBA287C9A066340559EB8ECA3F926D7C6"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD8FCBAB64F6F40BFB353E13DC51C2B99" style="OLC">
<paragraph id="H4BD0C4191D4547FEA4D67E572DB6F4C2"><enum>(9)</enum><text>the term
<term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HB26489DCDEB24315896308B20CD472F3"><enum>(2)</enum><text>in section 4 (12
U.S.C. 2603)—</text>
<subparagraph id="H101E95E18C374CA8832107998E36B0D3"><enum>(A)</enum><text>in subsection (a),
by striking the first sentence and inserting the following: <quote>The Bureau
shall publish a single, integrated disclosure for mortgage loan transactions
(including real estate settlement cost statements) which includes the
disclosure requirements of this section and section 5, in conjunction with the
disclosure requirements of the Truth in Lending Act that, taken together, may
apply to a transaction that is subject to both or either provisions of law. The
purpose of such model disclosure shall be to facilitate compliance with the
disclosure requirements of this title and the Truth in Lending Act, and to aid
the borrower or lessee in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of the
disclosures.</quote>;</text>
</subparagraph><subparagraph id="H1FA4634E625D414B9A80EC23731635E8"><enum>(B)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="H3F775EEBAE5742B198DEF8A41BC9E256"><enum>(C)</enum><text>by striking
<quote>form</quote> each place that term appears and inserting
<quote>forms</quote>;</text>
</subparagraph></paragraph><paragraph id="H931F47F345D4496388864F328A7B9638"><enum>(3)</enum><text>in section 5 (12
U.S.C. 2604)—</text>
<subparagraph id="H390F408FD5F14E6383234E1BA9FDF4A0"><enum>(A)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="H40E527EDF60D48C78ED680426E846456"><enum>(B)</enum><text>in subsection (a),
by striking the first sentence and inserting the following: <quote>The Bureau
shall prepare and distribute booklets jointly addressing compliance with the
requirements of the Truth in Lending Act and the provisions of this title, in
order to help persons borrowing money to finance the purchase of residential
real estate better to understand the nature and costs of real estate settlement
services.</quote>;</text>
</subparagraph></paragraph><paragraph id="H9F3126D64505465B89A11B2936981B3B"><enum>(4)</enum><text>in section 6(j)(3)
(12 U.S.C. 2605(j)(3))—</text>
<subparagraph id="H831929012B374A4EAEB409A82D3B85D4"><enum>(A)</enum><text>by striking
<quote>Secretary</quote> and inserting <quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="H963BD6664125434AA29A257989F16732"><enum>(B)</enum><text>by striking
<quote>, by regulations that shall take effect not later than April 20,
1991,</quote>;</text>
</subparagraph></paragraph><paragraph id="HCEC022B7BE584AE084F68A89B7A06ED2"><enum>(5)</enum><text>in section 7(b)
(12 U.S.C. 2606(b)) by striking <quote>Secretary</quote> and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="HC82D6157D90D4F38BEDE1AF1D5CF5DFD"><enum>(6)</enum><text>in section 8(c)(5)
(12 U.S.C. 2607(c)(5)), by striking <quote>Secretary</quote> and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="H58DF3DA2405D4AEBAD2FD03A563C5353"><enum>(7)</enum><text>in section 8(d)
(12 U.S.C. 2607(d))—</text>
<subparagraph id="H879852873D3642A98D6A97C37179AC8F"><enum>(A)</enum><text>in the subsection
heading, by inserting <quote><header-in-text level="subsection" style="OLC">Bureau and</header-in-text></quote> before <quote><header-in-text level="subparagraph" style="OLC">Secretary</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H9996C38340AC468CA746D7305DA8CCA2"><enum>(B)</enum><text>by striking
paragraph (4), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H753FB915428644588DA391A9983D35FE" style="OLC">
<paragraph id="HAD412B5EE295412CBF8E75E75B50B085"><enum>(4)</enum><text>The Bureau, the
Secretary, or the attorney general or the insurance commissioner of any State
may bring an action to enjoin violations of this section. Except, to the extent
that a person is subject to the jurisdiction of the Bureau, the Secretary, or
the attorney general or the insurance commissioner of any State, the Bureau
shall have primary authority to enforce or administer this section, subject to
subtitle B of the Consumer Financial Protection Act of
2010.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE38CF47B13D64158B7BD4936AB4DB332"><enum>(8)</enum><text>in section 10(c)
(12 U.S.C. 2609(c) and (d)), by striking <quote>Secretary</quote> and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="HCAAE0BA54EE1400BB58863711ED7E25F"><enum>(9)</enum><text>in section 16 (12
U.S.C. 2614), by inserting <quote>the Bureau,</quote> before <quote>the
Secretary</quote>;</text>
</paragraph><paragraph id="H55677D719D774CAC903FFFACA897A1E6"><enum>(10)</enum><text>in section 18 (12
U.S.C. 2616), by striking <quote>Secretary</quote> each place that term appears
and inserting <quote>Bureau</quote>; and</text>
</paragraph><paragraph id="H93052D5FDFEF4A7A8C25A8929576CB1A"><enum>(11)</enum><text>in section 19 (12
U.S.C. 2617)—</text>
<subparagraph id="HD872B3ACC0A5402CA64E8FEFD094718C"><enum>(A)</enum><text>in the section
heading by striking <quote><header-in-text level="section" style="OLC">Secretary</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="OLC">Bureau</header-in-text></quote>;</text>
</subparagraph><subparagraph id="HE50783D11F6E41548EFBD738817D89C0"><enum>(B)</enum><text>in subsection (a),
by striking <quote>Secretary</quote> each place that term appears and inserting
<quote>Bureau</quote>; and</text>
</subparagraph><subparagraph id="H8889D0E64D36411998A682457CD22026"><enum>(C)</enum><text>in subsections (b)
and (c), by striking <quote>the Secretary</quote> each place that term appears
and inserting <quote>the Bureau</quote>.</text>
</subparagraph></paragraph></section><section id="H24277937059A43B29330E4DE072C7B9C"><enum>1098A.</enum><header>Amendments to
the Interstate Land Sales Full Disclosure Act</header><text display-inline="no-display-inline">The Interstate Land Sales Full Disclosure
Act (15 U.S.C. 1701 et seq.) is amended—</text>
<paragraph id="H15FE1C23B50D49E8BE29BE28BFC4E98C"><enum>(1)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Director</quote>;</text>
</paragraph><paragraph id="H1754EA4E8F73448EAC0D796CDE6DE7FD"><enum>(2)</enum><text>by striking
<quote>Department of Housing and Urban Development</quote> each place that term
appears and inserting <quote>Bureau of Consumer Financial
Protection</quote>;</text>
</paragraph><paragraph id="H908863D146A443FDBA1F15FC5FABAE8A"><enum>(3)</enum><text>by striking
<quote>Department</quote> each place that term appears and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="H2F333743C6E847508ED908A404DE4A39"><enum>(4)</enum><text>in section 1402
(15 U.S.C. 1701)—</text>
<subparagraph id="H0D96A51F922C42DDBD08FD23AD37E5C3"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H663BE5440D284891B21F55451A75A153" style="OLC">
<paragraph id="H7A86C4F5D3524C26B408CDFE8294E6E3"><enum>(1)</enum><text><quote>Director</quote>
means the Director of the Bureau of Consumer Financial
Protection;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD3B0D35DA58048898E59C81ABA1F39FE"><enum>(B)</enum><text>in paragraph (10),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H37FEDAEDD7A740EEBE196D7E8BA472FE"><enum>(C)</enum><text>in paragraph (11),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H8ACCAEB0AFB84396B52545CE17D9118C"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA8E4C9E074F845E2A5398AF23ECB5AA3" style="OLC">
<paragraph id="HFB2CAC45FD09442EA8188A471E3AAB59"><enum>(12)</enum><text><quote>Bureau</quote>
means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HD47E24254B6D40D6999EF5F6CC873E7A"><enum>(5)</enum><text>in section 1416(a)
(15 U.S.C. 1715(a)), by striking <quote>Secretary of Housing and Urban
Development</quote> and inserting <quote>Director of the Bureau of Consumer
Financial Protection</quote>.</text>
</paragraph></section><section id="H7AEE0576DEDC4C10B6BA73A9614D07F2"><enum>1099.</enum><header>Amendments to
the Right to Financial Privacy Act of 1978</header><text display-inline="no-display-inline">The Right to Financial Privacy Act of 1978
(12 U.S.C. 3401 et seq.) is amended—</text>
<paragraph id="H270AAE6C977C4FADAECCCDD20BA5FE67"><enum>(1)</enum><text>in section
1101—</text>
<subparagraph commented="no" id="H16F3AC0C02B441B294BF2E27938C3A93"><enum>(A)</enum><text>in paragraph
(6)—</text>
<clause commented="no" id="H1129386E28F2434DA0C9FF046EBD8051"><enum>(i)</enum><text>in subparagraph
(A), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause commented="no" id="H4742307E9E3F430CA3F21ECDEDCCBA69"><enum>(ii)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end; and</text>
</clause><clause commented="no" id="HC07F504DA94648BE8271468CDC1A04D1"><enum>(iii)</enum><text>by striking
subparagraph (C); and</text>
</clause></subparagraph><subparagraph commented="no" id="H383C1738B9FA4AECA999F48946185051"><enum>(B)</enum><text>in paragraph (7),
by striking subparagraph (B), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC9DD9095BA6C47B8B4A16D8B08AFC7C0" style="OLC">
<subparagraph commented="no" id="HBC2E88A2E7AA46ED91D9B05811B51CC9"><enum>(B)</enum><text>the Bureau of
Consumer Financial
Protection;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HA6F5BEACB4584B0FAD555C9876AD339F"><enum>(2)</enum><text>in section 1112(e)
(12 U.S.C. 3412(e)), by striking <quote>and the Commodity Futures Trading
Commission is permitted</quote> and inserting <quote>the Commodity Futures
Trading Commission, and the Bureau of Consumer Financial Protection is
permitted</quote>; and</text>
</paragraph><paragraph commented="no" id="HB637DC8513C24C7D91E98E4B600DF288"><enum>(3)</enum><text>in section 1113
(12 U.S.C. 3413), by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H867303DEA9FD41E18605EB8B770750E3" style="OLC">
<subsection commented="no" id="H06FBAC8D5B2A442992E76AADB35B4B90"><enum>(r)</enum><header>Disclosure to
the Bureau of Consumer Financial Protection</header><text>Nothing in this title
shall apply to the examination by or disclosure to the Bureau of Consumer
Financial Protection of financial records or information in the exercise of its
authority with respect to a financial
institution.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HCDFDF6D4FA83476398A3F6821BDB2917"><enum>1100.</enum><header>Amendments to
the Secure and Fair Enforcement for Mortgage Licensing Act of
2008</header><text display-inline="no-display-inline">The S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is amended—</text>
<paragraph id="H947B607A97B447438310639F54550975"><enum>(1)</enum><text>by striking
<quote>a Federal banking agency</quote> each place that term appears, other
than in paragraphs (7) and (11) of section 1503 and section 1507(a)(1), and
inserting <quote>the Bureau</quote>;</text>
</paragraph><paragraph id="HDD97B61D316D4594912C36F2710E5F9F"><enum>(2)</enum><text>by striking
<quote>Federal banking agencies</quote> each place that term appears and
inserting “Bureau”; and</text>
</paragraph><paragraph id="HEE723EAD31C84D8BA2670047BC9C2C73"><enum>(3)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Director</quote>;</text>
</paragraph><paragraph id="H5C341327740942E58D3EE3CD53BF67B7"><enum>(4)</enum><text>in section 1503
(12 U.S.C. 5102)—</text>
<subparagraph commented="no" id="H63D514DD1A214BFEB411C992F39A3264"><enum>(A)</enum><text>by redesignating
paragraphs (2) through (12) as (3) through (13), respectively;</text>
</subparagraph><subparagraph id="HFCA61DE1567D494886AEF8BDECB02522"><enum>(B)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HD848B069ADD84D9FB1A3D5B30324DBC0" style="OLC">
<paragraph id="H51BA85655C204090A349F5680A523A29"><enum>(1)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><paragraph id="HD6F26CC65E56430DA464EF03D35EC98B"><enum>(2)</enum><header>Federal banking
agency</header><text>The term <term>Federal banking agency</term> means the
Board of Governors of the Federal Reserve System, the Office of the Comptroller
of the Currency, the National Credit Union Administration, and the Federal
Deposit Insurance Corporation.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD4B94F7E663445A8B58C74F2096A5915"><enum>(C)</enum><text>by striking
paragraph (10), as so designated by this section, and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HE3062CD407B84DF4857EF6C2814BE2D2" style="OLC">
<paragraph id="HBBCDA0A7D4F4489BA1D19CF5672866A7"><enum>(10)</enum><header>Director</header><text>The
term <term>Director</term> means the Director of the Bureau of Consumer
Financial Protection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H016CE4D840C24B9B896A6E7E7E9D7108"><enum>(5)</enum><text>in section 1507
(12 U.S.C. 5106)—</text>
<subparagraph id="H85DE0AA3BB9C4B1A932FE9F447F3F0CE"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H69660D8120A5473C91BA735BC6CD1C52"><enum>(i)</enum><text>by
striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H566DC2A01415434C90FA8B1AF4A5A10E" style="OLC">
<paragraph id="H75476ED1C9464B3F97EDFCED2BE91295"><enum>(1)</enum><header>In
general</header><text>The Bureau shall develop and maintain a system for
registering employees of a depository institution, employees of a subsidiary
that is owned and controlled by a depository institution and regulated by a
Federal banking agency, or employees of an institution regulated by the Farm
Credit Administration, as registered loan originators with the Nationwide
Mortgage Licensing System and Registry. The system shall be implemented before
the end of the 1-year period beginning on the date of enactment of the Consumer
Financial Protection Act of 2010.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H08CA42FC3A234ECB9BD1190FEFAFFE0A"><enum>(ii)</enum><text>in
paragraph (2)—</text>
<subclause id="HD16C83F976A746438A0C6FB1B44B9840"><enum>(I)</enum><text>by striking
<quote>appropriate Federal banking agency and the Farm Credit
Administration</quote> and inserting <quote>Bureau</quote>; and</text>
</subclause><subclause id="HF56241C49A04402B861B25506CB57E72"><enum>(II)</enum><text>by striking
<quote>employees's identity</quote> and inserting <quote>identity of the
employee</quote>; and</text>
</subclause></clause></subparagraph><subparagraph id="H1117C9323E6040AD9E1DFD67D8F4C067"><enum>(B)</enum><text>in subsection (b),
by striking <quote>through the Financial Institutions Examination Council, and
the Farm Credit Administration</quote>, and inserting <quote>and the Bureau of
Consumer Financial Protection</quote>;</text>
</subparagraph></paragraph><paragraph id="HB6E75E7B189E485D9C71DF9F312C91D3"><enum>(6)</enum><text>in section 1508
(12 U.S.C. 5107)—</text>
<subparagraph id="HF0176B4E2F6E40A4B2FED4F5EB338A84"><enum>(A)</enum><text>by striking the
section heading and inserting the following: <quote><header-in-text level="section" style="OLC">Sec. 1508. Bureau of Consumer Financial Protection
backup authority to establish loan originator licensing
system.</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H1E309FE13C7242B693F2719072DA1131"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H442C389E8D2B43BA8CA591DDCD9AE728" style="OLC">
<subsection id="HD9306F26531042BA81EDE8F3D4C023A6"><enum>(f)</enum><header>Regulation
authority</header>
<paragraph id="HA6867B69C26F41C6AA0644519EDD61D8"><enum>(1)</enum><header>In
general</header><text>The Bureau is authorized to promulgate regulations
setting minimum net worth or surety bond requirements for residential mortgage
loan originators and minimum requirements for recovery funds paid into by loan
originators.</text>
</paragraph><paragraph id="HA7876DC5DA58453B9F8BECC3A6EE6F60"><enum>(2)</enum><header>Considerations</header><text>In
issuing regulations under paragraph (1), the Bureau shall take into account the
need to provide originators adequate incentives to originate affordable and
sustainable mortgage loans, as well as the need to ensure a competitive
origination market that maximizes consumer access to affordable and sustainable
mortgage
loans.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1DA128B6AF5B4EF9AAFC38FABD7C9F8C"><enum>(7)</enum><text>by striking
section 1510 (12 U.S.C. 5109) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HAE660A30486A44B483113CC2965AA5D8" style="OLC">
<section id="HE78212814C744BE5AEF639E00EA25684"><enum>1510.</enum><header>Fees</header><text display-inline="no-display-inline">The Bureau, the Farm Credit Administration,
and the Nationwide Mortgage Licensing System and Registry may charge reasonable
fees to cover the costs of maintaining and providing access to information from
the Nationwide Mortgage Licensing System and Registry, to the extent that such
fees are not charged to consumers for access to such system and
registry.</text>
</section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF1FAE6D9ECA446F39961219E49C341EF"><enum>(8)</enum><text>by striking
section 1513 (12 U.S.C. 5112) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3CDAEBA899F740F69DA498075D5E925A" style="OLC">
<section id="H5A047259E5064048BE40E4DE5284FA67"><enum>1513.</enum><header>Liability
provisions</header><text display-inline="no-display-inline">The Bureau, any
State official or agency, or any organization serving as the administrator of
the Nationwide Mortgage Licensing System and Registry or a system established
by the Director under section 1509, or any officer or employee of any such
entity, shall not be subject to any civil action or proceeding for monetary
damages by reason of the good faith action or omission of any officer or
employee of any such entity, while acting within the scope of office or
employment, relating to the collection, furnishing, or dissemination of
information concerning persons who are loan originators or are applying for
licensing or registration as loan
originators.</text>
</section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA80958F44458406E80F5BB19C30C7C0C"><enum>(9)</enum><text>in section 1514
(12 U.S.C. 5113) in the section heading, by striking <quote><header-in-text level="section" style="OLC">Under HUD backup licensing
system</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">By the Bureau</header-in-text></quote>.</text>
</paragraph></section><section id="H422BA2C83E4C4C20A218BFEF71C7E3D0"><enum>1100A.</enum><header>Amendments to
the Truth in Lending Act</header><text display-inline="no-display-inline">The
Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended—</text>
<paragraph id="H6CC060CE92CA45E7B78AEC1D72598125"><enum>(1)</enum><text display-inline="yes-display-inline">in section 103 (15 U.S.C. 1602)—</text>
<subparagraph id="H847C4584A60E43DC9C25819DF2DFD393"><enum>(A)</enum><text>by redesignating
subsections (b) through (bb) as subsections (c) through (cc), respectively;
and</text>
</subparagraph><subparagraph id="H9E86BF069A7B4792ADAAD57A49A0B50A"><enum>(B)</enum><text>by inserting after
subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="H83CC702F459947EEB13E6EC577B236C8" style="OLC">
<subsection id="H6DC41110843449BB9E9F492755BC20C7"><enum>(b)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFBF6207929B2465AA26BD8F4708A2676"><enum>(2)</enum><text>by striking
<quote>Board</quote> each place that term appears, other than in section 140(d)
and sections 105(i) and 108(a), as amended by this section, and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="HD0D9F956206C46FDA0DE215A55DA2153"><enum>(3)</enum><text>by striking
<quote>Federal Trade Commission</quote> each place that term appears, other
than in section 108(c) and section 129(m), as amended by this Act, and other
than in the context of a reference to the Federal Trade Commission Act, and
inserting <quote>Bureau</quote>;</text>
</paragraph><paragraph id="H822250679FBA404189D03917503E5F22"><enum>(4)</enum><text>in section 105(a)
(15 U.S.C. 1604(a)), in the second sentence—</text>
<subparagraph id="HFBE75B32A4264EE4B6F8C557C916AC00"><enum>(A)</enum><text>by striking
<quote>Except in the case of a mortgage referred to in section 103(aa), these
regulations may contain such</quote> and inserting <quote>Except with respect
to the provisions of section 129 that apply to a mortgage referred to in
section 103(aa), such regulations may contain such additional
requirements,</quote>; and</text>
</subparagraph><subparagraph id="H4EA450553F98453594AE379E430D368C"><enum>(B)</enum><text>by inserting
<quote>all or</quote> after <quote>exceptions for</quote>;</text>
</subparagraph></paragraph><paragraph id="H876CDA9FBA0B48CE98E05EB602703060"><enum>(5)</enum><text>in section 105(b)
(15 U.S.C. 1604(b)), by striking the first sentence and inserting the
following: <quote>The Bureau shall publish a single, integrated disclosure for
mortgage loan transactions (including real estate settlement cost statements)
which includes the disclosure requirements of this title in conjunction with
the disclosure requirements of the Real Estate Settlement Procedures Act of
1974 that, taken together, may apply to a transaction that is subject to both
or either provisions of law. The purpose of such model disclosure shall be to
facilitate compliance with the disclosure requirements of this title and the
Real Estate Settlement Procedures Act of 1974, and to aid the borrower or
lessee in understanding the transaction by utilizing readily understandable
language to simplify the technical nature of the disclosures.</quote>;</text>
</paragraph><paragraph id="HDE6522ADA81F4B809E2EFB377BC156BD"><enum>(6)</enum><text>in section
105(f)(1) (15 U.S.C. 1604(f)(1)), by inserting <quote>all or</quote> after
<quote>from all or part of this title</quote>;</text>
</paragraph><paragraph id="H91E16F27B29F4183B3743CA5E1A9B8C8"><enum>(7)</enum><text>in section 105 (15
U.S.C. 1604), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9B4DE9A4A5BC419699B6505CEC297004" style="OLC">
<clause commented="no" id="HF404C5F208684B33ABBD224E967DB92B"><enum>(i)</enum><header>Authority of the
board to prescribe rules</header><text>Notwithstanding subsection (a), the
Board shall have authority to prescribe rules under this title with respect to
a person described in section 1029(a) of the Consumer Financial Protection Act
of 2010. Regulations prescribed under this subsection may contain such
classifications, differentiations, or other provisions, as in the judgment of
the Board are necessary or proper to effectuate the purposes of this title, to
prevent circumvention or evasion thereof, or to facilitate compliance
therewith.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H7F235EBDA3AB46FB9162B1C8BC198B82"><enum>(8)</enum><text>in section 108 (15
U.S.C. 1604), by adding at the end the following:</text>
<subparagraph commented="no" id="H0192302BE797417C80EA71CFDCA925FA"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H943F9825F2DD4E389C53DF913F532FF3" style="OLC">
<subsection id="H6D8647FA9B414DAA818C4CB4D5DD3457"><enum>(a)</enum><header>Enforcing
agencies</header><text>Subject to subtitle B of the Consumer Financial
Protection Act of 2010, compliance with the requirements imposed under this
title shall be enforced under—</text>
<paragraph id="H1743860C55994E32BEE2DFBAA5F1906D"><enum>(1)</enum><text>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 (12 U.S.C.
1813(q)), with respect to—</text>
<subparagraph id="HB09A7A18B0D24C9681AF9ED46F157081"><enum>(A)</enum><text>national banks,
Federal savings associations, and Federal branches and Federal agencies of
foreign banks;</text>
</subparagraph><subparagraph id="H754F0FB2A08E4F79BE12B6A769733C59"><enum>(B)</enum><text>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, and organizations operating under section 25 or
25A of the Federal Reserve Act; and</text>
</subparagraph><subparagraph id="HD9CA1F3E46F64F2AA717A2637288F2E3"><enum>(C)</enum><text>banks and State
savings associations insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), and insured State branches
of foreign banks;</text>
</subparagraph></paragraph><paragraph id="H82CFF1EEF2E448729B5891BE61A62FE1"><enum>(2)</enum><text>the Federal Credit
Union Act, by the Director of the National Credit Union Administration, with
respect to any Federal credit union;</text>
</paragraph><paragraph id="HEC334E1E6E5C4F739D9A63D4E31F80C5"><enum>(3)</enum><text>the Federal
Aviation Act of 1958, by the Secretary of Transportation, with respect to any
air carrier or foreign air carrier subject to that Act;</text>
</paragraph><paragraph id="H5CBAA40496AB45068F6603970F43F379"><enum>(4)</enum><text>the Packers and
Stockyards Act, 1921 (except as provided in section 406 of that Act), by the
Secretary of Agriculture, with respect to any activities subject to that
Act;</text>
</paragraph><paragraph id="H55ACE8411B3C434695135EA96C63D706"><enum>(5)</enum><text>the Farm Credit
Act of 1971, by the Farm Credit Administration with respect to any Federal land
bank, Federal land bank association, Federal intermediate credit bank, or
production credit association; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D0BDE2D5B794BFDBC588F87B4641575"><enum>(6)</enum><text display-inline="yes-display-inline">subtitle E of the Consumer Financial
Protection Act of 2010, by the Bureau, with respect to any person subject to
this title.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HE31A1A621B92435FA5DD01347B8FD2D0"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H55B9895C44704B10A4BD665C41AAE9F9" style="OLC">
<subsection id="H5F66EF619AA14F9B88F5C2DE090F7D6B"><enum>(c)</enum><header>Overall
enforcement authority of the Federal trade commission</header><text>Except to
the extent that enforcement of the requirements imposed under this title is
specifically committed to some other Government agency under any of paragraphs
(1) through (5) of subsection (a), and subject to subtitle B of the Consumer
Financial Protection Act of 2010, the Federal Trade Commission shall be
authorized to enforce such requirements. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal Trade
Commission Act, a violation of any requirement imposed under this title shall
be deemed a violation of a requirement imposed under that Act. All of the
functions and powers of the Federal Trade Commission under the Federal Trade
Commission Act are available to the Federal Trade Commission to enforce
compliance by any person with the requirements under this title, irrespective
of whether that person is engaged in commerce or meets any other jurisdictional
tests under the Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H993EB01719A54B67835BEC49B62C5AB4"><enum>(9)</enum><text>in section 129 (15
U.S.C. 1639), by striking subsection (m) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEF23BFAABF7448FFABF5A87085605159" style="OLC">
<subsection id="HEA46166DAC154E99B00B2E840DEE1845"><enum>(m)</enum><header>Civil penalties
in Federal trade commission enforcement actions</header><text>For purposes of
enforcement by the Federal Trade Commission, any violation of a regulation
issued by the Bureau pursuant to subsection (l)(2) shall be treated as a
violation of a rule promulgated under section 18 of the Federal Trade
Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or
practices.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HD04BB9D839604F85BD004ED0562064A2"><enum>(10)</enum><text>in chapter 5 (15
U.S.C. 1667 et seq.)—</text>
<subparagraph commented="no" id="H20526D70884B416BBCB7EB417AA7FDF2"><enum>(A)</enum><text>by striking
<quote>the Board</quote> each place that term appears and inserting <quote>the
Bureau</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H89A0CE803A7A4CBCA8EB84A7D2AE0343"><enum>(B)</enum><text>by striking
<quote>The Board</quote> each place that term appears and inserting <quote>The
Bureau</quote>.</text>
</subparagraph></paragraph></section><section id="H7B21EA215C364351BAE7F2B00CFF01FE"><enum>1100B.</enum><header>Amendments to
the Truth in Savings Act</header><text display-inline="no-display-inline">The
Truth in Savings Act (12 U.S.C. 4301 et seq.) is amended—</text>
<paragraph id="HD391F1A4A9F44A80BA98BBA56555BD04"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
that term appears, other than in section 272(b) (12 U.S.C. 4311), and inserting
<quote>Bureau</quote>;</text>
</paragraph><paragraph id="HE04F3ABEE12B49149F6B92B59CFE3B1B"><enum>(2)</enum><text display-inline="yes-display-inline">in section 270(a) (12 U.S.C. 4309)—</text>
<subparagraph id="HEA71509F481848BE854FDB845B273B1B"><enum>(A)</enum><text>by striking
<quote>Compliance</quote> and all that follows through the end of paragraph (1)
and inserting: “Subject to subtitle B of the Consumer Financial Protection Act
of 2010, compliance with the requirements imposed under this subtitle shall be
enforced under—</text>
<quoted-block display-inline="no-display-inline" id="HFA46CC0603694C56A7FC7ECCAFD5E587" style="OLC">
<paragraph id="H36B2D3891CAB43E7AC90A3FF8D4DA3B0"><enum>(1)</enum><text>section 8 of the
Federal Deposit Insurance Act by the appropriate Federal banking agency (as
defined in section 3(q) of that Act), with respect to—</text>
<subparagraph id="H0C3263E4E0C64506BF402168841A12D0"><enum>(A)</enum><text>insured depository
institutions (as defined in section 3(c)(2) of that Act);</text>
</subparagraph><subparagraph id="H46C4D3CD78C448428E66926C814D5AD4"><enum>(B)</enum><text>depository
institutions described in clause (i), (ii), or (iii) of section 19(b)(1)(A) of
the Federal Reserve Act which are not insured depository institutions (as
defined in section 3(c)(2) of the Federal Deposit Insurance Act); and</text>
</subparagraph><subparagraph id="H55F63AF510F84B01ADC6885F17FC3761"><enum>(C)</enum><text>depository
institutions described in clause (v) or (vi) of section 19(b)(1)(A) of the
Federal Reserve Act which are not insured depository institutions (as defined
in section 3(c)(2) of the Federal Deposit Insurance
Act);</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H6AA17355B96A49F7962DE13B5BAB734F"><enum>(B)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H523569486E3B409AB9C9F35E981BCB82"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA16962BFA5B74AB2A4F63D6E211090AF" style="OLC">
<paragraph id="H15650455EF114B6BBF1041095DF40155"><enum>(3)</enum><text>subtitle E of the
Consumer Financial Protection Act of 2010, by the Bureau, with respect to any
person subject to this
subtitle.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H3A44E395DFE94C7BB7D5DCEE5B392687"><enum>(3)</enum><text>in section 272(b)
(12 U.S.C. 4311(b)), by striking <quote>regulation prescribed by the
Board</quote> each place that term appears and inserting <quote>regulation
prescribed by the Bureau</quote>; and</text>
</paragraph><paragraph id="HED33D13CC3A34FB2A85E3C707808245A"><enum>(4)</enum><text>in section 274 (12
U.S.C. 4313), by striking paragraph (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6667D3FD32854688844F8E64C67E9F99" style="OLC">
<paragraph id="H5FEF20134A134E6AA1A21DF5BCD78008"><enum>(4)</enum><header>Bureau</header><text>The
term <term>Bureau</term> means the Bureau of Consumer Financial
Protection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HFB60D6E9CBE649179063945FFD1F2A18"><enum>1100C.</enum><header>Amendments to
the Telemarketing and Consumer Fraud and Abuse Prevention Act</header>
<subsection id="H3B322A546FCD43E9B5E0AC5795A6DFA6"><enum>(a)</enum><header>Amendments to
Section <enum-in-header>3</enum-in-header></header><text>Section 3 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6102) is
amended by striking subsections (b) and (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HBD23964B949D4FCF821405D440F1761E" style="OLC">
<subsection id="H559334C4F2BD485CA8C018316FB97DF9"><enum>(b)</enum><header>Rulemaking
authority</header><text>The Commission shall have authority to prescribe rules
under subsection (a), in accordance with section 553 of title 5, United States
Code. In prescribing a rule under this section that relates to the provision of
a consumer financial product or service that is subject to the Consumer
Financial Protection Act of 2010, including any enumerated consumer law
thereunder, the Commission shall consult with the Bureau of Consumer Financial
Protection regarding the consistency of a proposed rule with standards,
purposes, or objectives administered by the Bureau of Consumer Financial
Protection.</text>
</subsection><subsection id="H91E7C347541B405692450EB8CF9211F1"><enum>(c)</enum><header>Violations</header><text>Any
violation of any rule prescribed under subsection (a)—</text>
<paragraph id="HCE801255FE524365848334E3056C83C5"><enum>(1)</enum><text>shall be treated
as a violation of a rule under section 18 of the Federal Trade Commission Act
regarding unfair or deceptive acts or practices; and</text>
</paragraph><paragraph id="H1A9A616BF7A14F8FA8A2D038DDBCB3D4"><enum>(2)</enum><text>that is committed
by a person subject to the Consumer Financial Protection Act of 2010 shall be
treated as a violation of a rule under section 1031 of that Act regarding
unfair, deceptive, or abusive acts or
practices.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H19FFC1A75F114D8CBBBA4FECA6B52579"><enum>(b)</enum><header>Amendments to
Section <enum-in-header>4</enum-in-header></header><text>Section 4(d) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6103(d))
is amended by inserting after <quote>Commission</quote> each place that term
appears the following: <quote>or the Bureau of Consumer Financial
Protection</quote>.</text>
</subsection><subsection id="HED1FFC2341784D7B87662EA81E6B70E0"><enum>(c)</enum><header>Amendments to
Section <enum-in-header>5</enum-in-header></header><text>Section 5(c) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6104(c))
is amended by inserting after <quote>Commission</quote> each place that term
appears the following: <quote>or the Bureau of Consumer Financial
Protection</quote>.</text>
</subsection><subsection id="HAA124004FECC4D2EB762500F8F521C76"><enum>(d)</enum><header>Amendment to
Section <enum-in-header>6</enum-in-header></header><text>Section 6 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6105) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5EA7260813E44D7E9E66DA2CD04E201F" style="OLC">
<subsection id="HFB53AD94D1984F90AB892CAF6A1EC3A7"><enum>(d)</enum><header>Enforcement by
Bureau of Consumer Financial Protection</header><text>Except as otherwise
provided in sections 3(d), 3(e), 4, and 5, and subject to subtitle B of the
Consumer Financial Protection Act of 2010, this Act shall be enforced by the
Bureau of Consumer Financial Protection under subtitle E of the Consumer
Financial Protection Act of 2010, with respect to the offering or provision of
a consumer financial product or service subject to that
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H86316AAB896D4B17AE4F62B49438A32C"><enum>1100D.</enum><header>Amendments to
the Paperwork Reduction Act</header>
<subsection id="H3974CFC6CD494CEAB7A4EFECCA4E4238"><enum>(a)</enum><header>Designation as
an independent agency</header><text>Section 2(5) of the Paperwork Reduction Act
(44 U.S.C. 3502(5)) is amended by inserting <quote>the Bureau of Consumer
Financial Protection, the Office of Financial Research,</quote> after
<quote>the Securities and Exchange Commission,</quote>.</text>
</subsection><subsection id="H95A22521A7A247CFB7979575148FFD46"><enum>(b)</enum><header>Comparable
treatment</header><text>Section 3513 of title 44, United States Code, is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8663900F3EAF49BCAD08467EA46E7109" style="OLC">
<subsection id="H5B8DE2784D0C420F925AA2AE406B5B07"><enum>(c)</enum><header>Comparable
treatment</header><text>Notwithstanding any other provision of law, the
Director shall treat or review a rule or order prescribed or proposed by the
Director of the Bureau of Consumer Financial Protection on the same terms and
conditions as apply to any rule or order prescribed or proposed by the Board of
Governors of the Federal Reserve
System.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HB82BD79B09C4426F9FEEF2A884B78482"><enum>1100E.</enum><header>Adjustments
for inflation in the Truth in Lending Act</header>
<subsection id="H839B5713C65D49D8A1A7F97E79B15998"><enum>(a)</enum><header>Caps</header>
<paragraph id="H4BF47208A24842DCBB6CAAC51C8086FD"><enum>(1)</enum><header>Credit
transactions</header><text>Section 104(3) of the Truth in Lending Act (15
U.S.C. 1603(3)) is amended by striking <quote>$25,000</quote> and inserting
<quote>$50,000</quote>.</text>
</paragraph><paragraph id="H7EA793B122E74ED7B2165D3A3B06BD4F"><enum>(2)</enum><header>Consumer
leases</header><text>Section 181(1) of the Truth in Lending Act (15 U.S.C.
1667(1)) is amended by striking <quote>$25,000</quote> and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="HDCCA8429B3E54930903E3DB06651D2B6"><enum>(b)</enum><header>Adjustments for
inflation</header><text>On and after December 31, 2011, the Bureau shall adjust
annually the dollar amounts described in sections 104(3) and 181(1) of the
Truth in Lending Act (as amended by this section), by the annual percentage
increase in the Consumer Price Index for Urban Wage Earners and Clerical
Workers, as published by the Bureau of Labor Statistics, rounded to the nearest
multiple of $100, or $1,000, as applicable.</text>
</subsection></section><section id="H0E43DDCC2B814E8E8C9A38FC260A1980"><enum>1100F.</enum><header>Use of
consumer reports</header><text display-inline="no-display-inline">Section 615
of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended—</text>
<paragraph id="HD2E4C71FBA8A4E0FAF32FFEF35019A0F"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph id="H20E574E46CFF438AAE41787720F20085"><enum>(A)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively;</text>
</subparagraph><subparagraph id="H6A09E9854B1146E5ABE5A4A1178951A0"><enum>(B)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H866943A3C7134CBAA66A1FFCE29AB30F" style="OLC">
<paragraph id="HD2D9A21765C7478CADD2F2A9FAC4814B"><enum>(2)</enum><text>provide to the
consumer written or electronic disclosure—</text>
<subparagraph id="H48EFCBF531BD4F8F8ADE3B3BFE1B3AD1"><enum>(A)</enum><text>of a numerical
credit score as defined in section 609(f)(2)(A) used by such person in taking
any adverse action based in whole or in part on any information in a consumer
report; and</text>
</subparagraph><subparagraph id="H16EDD79FB26A412F828EC94C46C43824"><enum>(B)</enum><text>of the information
set forth in subparagraphs (B) through (E) of section
609(f)(1);</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H1F285E46A2244D22877C68697C773ACE"><enum>(C)</enum><text>in paragraph (4)
(as so redesignated), by striking <quote>paragraph (2)</quote> and inserting
<quote>paragraph (3)</quote>; and</text>
</subparagraph></paragraph><paragraph id="H19978EEC62B8400191589E5221BE94A4"><enum>(2)</enum><text>in subsection
(h)(5)—</text>
<subparagraph id="HCF1CB54F6770431283486C281CF080FD"><enum>(A)</enum><text>in subparagraph
(C), by striking <quote>; and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="H1BEABE398C724381BB0A249D199583C8"><enum>(B)</enum><text>in subparagraph
(D), by striking the period and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="HB5AD3D1BADA84D1FA2CD05C9111EEE57"><enum>(C)</enum><text>by inserting at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAD806CF2406E49FDA7E4A060FADC5A75" style="OLC">
<subparagraph id="HC10BA42E08254CB69D457114B836DDF0"><enum>(E)</enum><text>include a
statement informing the consumer of—</text>
<clause id="HC778DAD49C0340BCBE81E8195C33BBB7"><enum>(i)</enum><text>a
numerical credit score as defined in section 609(f)(2)(A), used by such person
in making the credit decision described in paragraph (1) based in whole or in
part on any information in a consumer report; and</text>
</clause><clause id="HD334EE8DB17F417D95368090505EE746"><enum>(ii)</enum><text>the information
set forth in subparagraphs (B) through (E) of section
609(f)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="H22665A8FC6FF4BA68E923C27ACDFE20D"><enum>1100G.</enum><header>Small
business fairness and regulatory transparency</header>
<subsection id="HD2BDFAF97D9F48B4A08F4951F2E3F2D0"><enum>(a)</enum><header>Panel
requirement</header><text>Section 609(d) of title 5, United States Code, is
amended by striking <quote>means the</quote> and all that follows and inserting
the following: “means—</text>
<quoted-block display-inline="no-display-inline" id="HC5E2F33C29434F94BAC8026280EFF631" style="OLC">
<paragraph id="H8F2B6AC5535A47C2B844C4EB48D7F58C"><enum>(1)</enum><text>the Environmental
Protection Agency;</text>
</paragraph><paragraph id="HCF11D72B6E4C48528C9F1DFABDA82FCF"><enum>(2)</enum><text>the Consumer
Financial Protection Bureau of the Federal Reserve System; and</text>
</paragraph><paragraph id="H4D9854D6B9CF456684D84544A9860300"><enum>(3)</enum><text>the Occupational
Safety and Health Administration of the Department of
Labor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE5E6E07EDD9D441AA4EFCDA7D72C2B46"><enum>(b)</enum><header>Initial
regulatory flexibility analysis</header><text>Section 603 of title 5, United
States Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HACF5D4CF61AB4ACAB608D76DD5E82DED" style="OLC">
<subsection id="HB21C346C19294DB0A686DE270F7465DF"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H03FE52E1278C424BA95CC3F60F1AEB96"><enum>(1)</enum><text>For a covered agency, as
defined in section 609(d)(2), each initial regulatory flexibility analysis
shall include a description of—</text>
<subparagraph id="HBB2314DEEA1940248297D730E0AA2468" indent="up1"><enum>(A)</enum><text>any projected increase in the cost of
credit for small entities;</text>
</subparagraph><subparagraph id="HF1AFE8E378604B63A9EC9487224AD128" indent="up1"><enum>(B)</enum><text>any significant alternatives to the
proposed rule which accomplish the stated objectives of applicable statutes and
which minimize any increase in the cost of credit for small entities;
and</text>
</subparagraph><subparagraph id="H7C191CFA18CE40DFB0A553ABCBA15934" indent="up1"><enum>(C)</enum><text>advice and recommendations of
representatives of small entities relating to issues described in subparagraphs
(A) and (B) and subsection (b).</text>
</subparagraph></paragraph><paragraph id="HBDFAB720B01D4F6A9590A4BCD8C38981" indent="up1"><enum>(2)</enum><text>A covered agency, as defined in
section 609(d)(2), shall, for purposes of complying with paragraph
(1)(C)—</text>
<subparagraph id="H1961072B76A243E0AD7B8731CE62BA34"><enum>(A)</enum><text>identify representatives of small
entities in consultation with the Chief Counsel for Advocacy of the Small
Business Administration; and</text>
</subparagraph><subparagraph id="HD49A066763D647A48A2C83BC46C0E79D"><enum>(B)</enum><text>collect advice and recommendations
from the representatives identified under subparagraph (A) relating to issues
described in subparagraphs (A) and (B) of paragraph (1) and subsection
(b).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H09463193F1C845ABBFD766791A5F9A7A"><enum>(c)</enum><header>Final regulatory
flexibility analysis</header><text>Section 604(a) of title 5, United States
Code, is amended—</text>
<paragraph id="H26C59416546A40DFA73366DF5358C0D4"><enum>(1)</enum><text>in paragraph (4),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HAC785A7C484C4CFE94906CF23F17E1FA"><enum>(2)</enum><text>in paragraph (5),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="HEE8330D8A77A44BAA6AFB7DBA7953B03"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6EBA588177A34B09A382E532E1CB44C3" style="OLC">
<paragraph id="H75399CE6CE874D66BCFC8B3ED5D93A35"><enum>(6)</enum><text>for a covered
agency, as defined in section 609(d)(2), a description of the steps the agency
has taken to minimize any additional cost of credit for small
entities.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H194E780FAD4741CDBC00CE8335A17B9B" section-type="subsequent-section"><enum>1100H.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this subtitle and the amendments made by this subtitle, this
subtitle and the amendments made by this subtitle, other than sections 1081 and
1082, shall become effective on the designated transfer date.</text>
</section></subtitle><enum>XI</enum><header>Federal Reserve
System provisions</header>
<section id="HCE50F75C8F9E47B5A2D61923981E77C9"><enum>1101.</enum><header>Federal
Reserve Act amendments on emergency lending authority</header>
<subsection commented="no" display-inline="no-display-inline" id="H706147DE46C74E47AED24DBC3D5998E9"><enum>(a)</enum><header display-inline="yes-display-inline">Federal Reserve Act</header><text display-inline="yes-display-inline">The third undesignated paragraph of section
13 of the Federal Reserve Act (12 U.S.C. 343) (relating to emergency lending
authority) is amended—</text>
<paragraph id="H14A44AB56ECA45C7AAA3D9FF3B927983"><enum>(1)</enum><text>by inserting
<quote>(3)(A)</quote> before <quote>In unusual</quote>;</text>
</paragraph><paragraph id="HF5168144F3D449DC8C8D54B336FEA7C6"><enum>(2)</enum><text>by striking
<quote>individual, partnership, or corporation</quote> the first place that
term appears and inserting the following: <quote>participant in any program or
facility with broad-based eligibility</quote>;</text>
</paragraph><paragraph id="H79B25930E4FA44588554EEA085A2629D"><enum>(3)</enum><text>by striking
<quote>exchange for an individual or a partnership or corporation</quote> and
inserting <quote>exchange,</quote>;</text>
</paragraph><paragraph id="HEF05445C0EA74568854890D5193D0396"><enum>(4)</enum><text>by striking
<quote>such individual, partnership, or corporation</quote> and inserting the
following: <quote>such participant in any program or facility with broad-based
eligibility</quote>;</text>
</paragraph><paragraph id="HC5634A2F77DC4F1184CA91DEE40E3135"><enum>(5)</enum><text>by striking
<quote>for individuals, partnerships, corporations</quote> and inserting
<quote>for any participant in any program or facility with broad-based
eligibility</quote>; and</text>
</paragraph><paragraph id="HA123677FDB9546C9B35BE78D863DDE9E"><enum>(6)</enum><text>by striking
<quote>may prescribe.</quote> and inserting the following: “may
prescribe.</text>
<quoted-block display-inline="no-display-inline" id="H9FB9B19432D946938B370D284089F445" style="OLC">
<subparagraph id="H7519484CE424482F8F351E9ADC71F1B9"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HBA2340BFBA504B74B62EFE3D7960FF74"><enum>(i)</enum><text>As soon as is
practicable after the date of enactment of this subparagraph, the Board shall
establish, by regulation, in consultation with the Secretary of the Treasury,
the policies and procedures governing emergency lending under this paragraph.
Such policies and procedures shall be designed to ensure that any emergency
lending program or facility is for the purpose of providing liquidity to the
financial system, and not to aid a failing financial company, and that the
security for emergency loans is sufficient to protect taxpayers from losses and
that any such program is terminated in a timely and orderly fashion. The
policies and procedures established by the Board shall require that a Federal
reserve bank assign, consistent with sound risk management practices and to
ensure protection for the taxpayer, a lendable value to all collateral for a
loan executed by a Federal reserve bank under this paragraph in determining
whether the loan is secured satisfactorily for purposes of this
paragraph.</text>
</clause><clause id="H84CC58E514F54878A2F8271CE694132B" indent="up1"><enum>(ii)</enum><text>The Board shall establish
procedures to prohibit borrowing from programs and facilities by borrowers that
are insolvent. Such procedures may include a certification from the chief
executive officer (or other authorized officer) of the borrower, at the time
the borrower initially borrows under the program or facility (with a duty by
the borrower to update the certification if the information in the
certification materially changes), that the borrower is not insolvent. A
borrower shall be considered insolvent for purposes of this subparagraph, if
the borrower is in bankruptcy, resolution under title II of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, or any other Federal or State
insolvency proceeding.</text>
</clause><clause id="H26BDF3922E2246C1A86A68257614E70E" indent="up1"><enum>(iii)</enum><text>A program or facility that is
structured to remove assets from the balance sheet of a single and specific
company, or that is established for the purpose of assisting a single and
specific company avoid bankruptcy, resolution under title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or any other Federal or State
insolvency proceeding, shall not be considered a program or facility with
broad-based eligibility.</text>
</clause><clause id="HD36F1FC7E0544994AE3CDD719E420225" indent="up1"><enum>(iv)</enum><text>The Board may not establish any
program or facility under this paragraph without the prior approval of the
Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph id="HD6B655E7EC6B47138343C1E9C29BE873"><enum>(C)</enum><text>The Board shall
provide to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives—</text>
<clause id="H67025365002A46128079C8F946A7A6B0"><enum>(i)</enum><text>not later than 7
days after the Board authorizes any loan or other financial assistance under
this paragraph, a report that includes—</text>
<subclause id="H363647CF16FF4F9687731F5658F74134"><enum>(I)</enum><text>the justification
for the exercise of authority to provide such assistance;</text>
</subclause><subclause id="HBDB4D783D3474355BD5F292769FD2AA9"><enum>(II)</enum><text>the identity of
the recipients of such assistance;</text>
</subclause><subclause id="HFF9CFAFF0F81411ABD4DD38CDA94B836"><enum>(III)</enum><text>the date and
amount of the assistance, and form in which the assistance was provided;
and</text>
</subclause><subclause id="H6F47C8654A64439CBADFBCB96C8101E7"><enum>(IV)</enum><text>the material
terms of the assistance, including—</text>
<item id="H951E47EF2CC947A08AAD6B786863F3C9"><enum>(aa)</enum><text>duration;</text>
</item><item id="H71F262BC9EBC41618E0E132CFE076AF6"><enum>(bb)</enum><text>collateral
pledged and the value thereof;</text>
</item><item id="HCC2C813FC6A1454B8442EB33A118AEA5"><enum>(cc)</enum><text>all
interest, fees, and other revenue or items of value to be received in exchange
for the assistance;</text>
</item><item id="HF9097E59EC1540A688089EA7335525EA"><enum>(dd)</enum><text>any
requirements imposed on the recipient with respect to employee compensation,
distribution of dividends, or any other corporate decision in exchange for the
assistance; and</text>
</item><item id="H5AC183B10D0B4B0280EFF1563583877A"><enum>(ee)</enum><text>the
expected costs to the taxpayers of such assistance; and</text>
</item></subclause></clause><clause id="H5D53B6C94E124C23B8466A306134A150"><enum>(ii)</enum><text>once every 30
days, with respect to any outstanding loan or other financial assistance under
this paragraph, written updates on—</text>
<subclause id="H3E78036DB41B41A1BB920BF4A11A90CC"><enum>(I)</enum><text>the value of
collateral;</text>
</subclause><subclause id="HC929F0C6278E4B13B7F00CE39A57324C"><enum>(II)</enum><text>the amount of
interest, fees, and other revenue or items of value received in exchange for
the assistance; and</text>
</subclause><subclause id="H8840FC39738E4D92A6F34367899EA03C"><enum>(III)</enum><text>the expected or
final cost to the taxpayers of such assistance.</text>
</subclause></clause></subparagraph><subparagraph id="H22C0D5009C5C417EA72885FBD1D69BB4"><enum>(D)</enum><text>The information
required to be submitted to Congress under subparagraph (C) related to—</text>
<clause id="H62E3939D28AF4DE1A81DA070A05ABDE8"><enum>(i)</enum><text>the identity of
the participants in an emergency lending program or facility commenced under
this paragraph;</text>
</clause><clause id="H7970C981A2B94A6A8AF0165B3BD78BE3"><enum>(ii)</enum><text>the amounts
borrowed by each participant in any such program or facility;</text>
</clause><clause id="H22FA034608CB402B9F61F796E453ECEB"><enum>(iii)</enum><text>identifying
details concerning the assets or collateral held by, under, or in connection
with such a program or facility,</text>
</clause><continuation-text continuation-text-level="subparagraph">shall
be kept confidential, upon the written request of the Chairman of the Board, in
which case such information shall be made available only to the Chairpersons or
Ranking Members of the Committees described in subparagraph (C).</continuation-text></subparagraph><subparagraph id="H17E8557A17B942A29CA95610B1E5B15A"><enum>(E)</enum><text>If an entity to
which a Federal reserve bank has provided a loan under this paragraph becomes a
covered financial company, as defined in section 201 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, at any time while such loan is
outstanding, and the Federal reserve bank incurs a realized net loss on the
loan, then the Federal reserve bank shall have a claim equal to the amount of
the net realized loss against the covered entity, with the same priority as an
obligation to the Secretary of the Treasury under section 210(b) of the
Dodd-Frank Wall Street Reform and Consumer Protection
Act.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDDA0FD7521F94B8AB9AF6012DAF2FC5A"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 507(a)(2) of title 11, United States Code, is
amended by inserting <quote>unsecured claims of any Federal reserve bank
related to loans made through programs or facilities authorized under section
13(3) of the Federal Reserve Act (12 U.S.C. 343),</quote> after <quote>this
title,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H354EC604B4E441FEAEE73CEE6BB82896"><enum>(c)</enum><header>References</header><text>On
and after the date of enactment of this Act, any reference in any provision of
Federal law to the third undesignated paragraph of section 13 of the Federal
Reserve Act (12 U.S.C. 343) shall be deemed to be a reference to section 13(3)
of the Federal Reserve Act, as so designated by this section.</text>
</subsection></section><section id="H112562122C7D4EE1A38B6F72259B727E"><enum>1102.</enum><header>audits of
special Federal reserve credit facilities</header>
<subsection id="H772522939C5242D2BE188F16DDA65EBE"><enum>(a)</enum><header>Audits</header><text>Section
714 of title 31, United States Code, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HDF9A935C6CBB4312AB2CF5FF89014E5E" style="OLC">
<subsection id="HAE62600E41F04690849EFE99073DCF4B"><enum>(f)</enum><header>audits of credit
facilities of the Federal reserve system</header>
<paragraph id="HE1DB173343BD49D0AAA6EBBF256F3864"><enum>(1)</enum><header>Definitions</header><text>In
this subsection, the following definitions shall apply:</text>
<subparagraph id="HFE133B31649B4CE1A29E4F059B61E08A"><enum>(A)</enum><header>Credit
facility</header><text>The term <term>credit facility</term> means a program or
facility, including any special purpose vehicle or other entity established by
or on behalf of the Board of Governors of the Federal Reserve System or a
Federal reserve bank, authorized by the Board of Governors under section 13(3)
of the Federal Reserve Act (12 U.S.C. 343), that is not subject to audit under
subsection (e).</text>
</subparagraph><subparagraph id="H7B1FEC8E4547409386F29BCB5C2F35A5"><enum>(B)</enum><header>Covered
transaction</header><text display-inline="yes-display-inline">The term
<quote>covered transaction</quote> means any open market transaction or
discount window advance that meets the definition of <quote>covered
transaction</quote> in section 11(s) of the Federal Reserve Act.</text>
</subparagraph></paragraph><paragraph id="HD4E27D02795442229605C1E0F640E8ED"><enum>(2)</enum><header>Authority for
audits and examinations</header><text>Subject to paragraph (3), and
notwithstanding any limitation in subsection (b) on the auditing and oversight
of certain functions of the Board of Governors of the Federal Reserve System or
any Federal reserve bank, the Comptroller General of the United States may
conduct audits, including onsite examinations, of the Board of Governors, a
Federal reserve bank, or a credit facility, if the Comptroller General
determines that such audits are appropriate, solely for the purposes of
assessing, with respect to a credit facility or a covered transaction—</text>
<subparagraph id="HF84937A26D33464CAD99F936E00D4DCC"><enum>(A)</enum><text>the operational
integrity, accounting, financial reporting, and internal controls governing the
credit facility or covered transaction;</text>
</subparagraph><subparagraph id="H8120DB451EAC4DB1ADC8A36662E68E3D"><enum>(B)</enum><text>the effectiveness
of the security and collateral policies established for the facility or covered
transaction in mitigating risk to the relevant Federal reserve bank and
taxpayers;</text>
</subparagraph><subparagraph id="HC89AFE31295644D0A171F04CA40B3DAD"><enum>(C)</enum><text>whether the credit
facility or the conduct of a covered transaction inappropriately favors one or
more specific participants over other institutions eligible to utilize the
facility; and</text>
</subparagraph><subparagraph id="H9067DC064FFF4976A39E1B133AE9E118"><enum>(D)</enum><text>the policies
governing the use, selection, or payment of third-party contractors by or for
any credit facility or to conduct any covered transaction.</text>
</subparagraph></paragraph><paragraph id="HF0B7928C69914F1CA8DE25CE689693D7"><enum>(3)</enum><header>Reports and
delayed disclosure</header>
<subparagraph id="HA2874C7FFC654075ABCB9D1076B79B1C"><enum>(A)</enum><header>Reports
required</header><text>A report on each audit conducted under paragraph (2)
shall be submitted by the Comptroller General to the Congress before the end of
the 90-day period beginning on the date on which such audit is
completed.</text>
</subparagraph><subparagraph id="H298F9ABD334A4EBB878E97F4A3B337E3"><enum>(B)</enum><header>Contents</header><text>The
report under subparagraph (A) shall include a detailed description of the
findings and conclusions of the Comptroller General with respect to the matters
described in paragraph (2) that were audited and are the subject of the report,
together with such recommendations for legislative or administrative action
relating to such matters as the Comptroller General may determine to be
appropriate.</text>
</subparagraph><subparagraph id="HCA0BBC8458E2422F971F337B2C2EABD5"><enum>(C)</enum><header>Delayed release
of certain information</header>
<clause id="H630F58E0AAEA4A4882BCE1417823EDAD"><enum>(i)</enum><header>In
general</header><text>The Comptroller General shall not disclose to any person
or entity, including to Congress, the names or identifying details of specific
participants in any credit facility or covered transaction, the amounts
borrowed by or transferred by or to specific participants in any credit
facility or covered transaction, or identifying details regarding assets or
collateral held or transferred by, under, or in connection with any credit
facility or covered transaction, and any report provided under subparagraph (A)
shall be redacted to ensure that such names and details are not
disclosed.</text>
</clause><clause id="H9F7402129D2845689D94A39C4D58AD9E"><enum>(ii)</enum><header>Delayed
release</header><text>The nondisclosure obligation under clause (i) shall
expire with respect to any participant on the date on which the Board of
Governors, directly or through a Federal reserve bank, publicly discloses the
identity of the subject participant or the identifying details of the subject
assets, collateral, or transaction.</text>
</clause><clause id="H835CB4A3DB4D4346B4534B9CAF5F3341"><enum>(iii)</enum><header>General
release</header><text>The Comptroller General shall release a nonredacted
version of any report on a credit facility 1 year after the effective date of
the termination by the Board of Governors of the authorization for the credit
facility. For purposes of this clause, a credit facility shall be deemed to
have terminated 24 months after the date on which the credit facility ceases to
make extensions of credit and loans, unless the credit facility is otherwise
terminated by the Board of Governors.</text>
</clause><clause id="HB5B551F38E4E41AA9D1158B04BC99670"><enum>(iv)</enum><header>Exceptions</header><text>The
nondisclosure obligation under clause (i) shall not apply to the credit
facilities Maiden Lane, Maiden Lane II, and Maiden Lane III.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC47478DA656F4BC0939EC1A8CDD67C40"><enum>(v)</enum><header display-inline="yes-display-inline">Release of covered transaction
information</header><text display-inline="yes-display-inline">The Comptroller
General shall release a nonredacted version of any report regarding covered
transactions upon the release of the information regarding such covered
transactions by the Board of Governors of the Federal Reserve System, as
provided in section 11(s) of the Federal Reserve
Act.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5216E42593E446E88CF7800AB351385E"><enum>(b)</enum><header>Access to
records</header><text>Section 714(d) of title 31, United States Code, is
amended—</text>
<paragraph id="HBBDD7A37B61F4432889F973451B2E089"><enum>(1)</enum><text>in paragraph (2),
by inserting <quote>or any person or entity described in paragraph
(3)(A)</quote> after <quote>used by an agency</quote>;</text>
</paragraph><paragraph id="HD0A1F14436F14DC4A572B14559CB94ED"><enum>(2)</enum><text>in paragraph (3),
by inserting <quote>or (f)</quote> after <quote>subsection (e)</quote> each
place that term appears;</text>
</paragraph><paragraph id="H7973074EA2CC47BDA8788C8201B2175C"><enum>(3)</enum><text>in clauses (i) and
(ii) of paragraph (3)(A), by inserting <quote>or the Federal Reserve
banks</quote> after <quote>by the Board</quote> each place that term
appears;</text>
</paragraph><paragraph id="H99FDD45ACFC24B72AE141F0A91E1734E"><enum>(4)</enum><text>in paragraph
(3)(A)(ii), by inserting <quote>participating in or</quote> after <quote>any
entity</quote>; and</text>
</paragraph><paragraph id="HCC099076773F4D41BCB838AC1DE6739F"><enum>(5)</enum><text>in paragraph
(3)(B), by adding at the end the following: <quote>The Comptroller General may
make and retain copies of books, accounts, and other records provided under
subparagraph (A) as the Comptroller General deems appropriate. The Comptroller
General shall provide to any person or entity described in subparagraph (A) a
current list of officers and employees to whom, with proper identification,
records and property may be made available, and who may make notes or copies
necessary to carry out a audit or examination under this
subsection.</quote>.</text>
</paragraph></subsection></section><section id="HF9B0077F70704AFFA8E116CCC2E7669F"><enum>1103.</enum><header>Public access
to information</header>
<subsection id="HB491AB2007924E80B31D07CAFFE27C5A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 2B of the
Federal Reserve Act (12 U.S.C. 225b) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF2953791640B4066888C6CA13AF843E9" style="OLC">
<subsection id="H74E3A40DB4C04F4DA81BEA5B0A52971A"><enum>(c)</enum><header>Public access to
information</header><text>The Board shall place on its home Internet website, a
link entitled <quote>Audit</quote>, which shall link to a webpage that shall
serve as a repository of information made available to the public for a
reasonable period of time, not less than 6 months following the date of release
of the relevant information, including—</text>
<paragraph id="H1D65DE28E6A445C3BB1D7BCC73174799"><enum>(1)</enum><text>the reports
prepared by the Comptroller General under section 714 of title 31, United
States Code;</text>
</paragraph><paragraph id="H3CA5268DFCF74C448B1FA3F2530DB3DE"><enum>(2)</enum><text>the annual
financial statements prepared by an independent auditor for the Board in
accordance with section 11B;</text>
</paragraph><paragraph id="HB69F52F730E4494DA54CD1621392D874"><enum>(3)</enum><text>the reports to the
Committee on Banking, Housing, and Urban Affairs of the Senate required under
section 13(3) (relating to emergency lending authority); and</text>
</paragraph><paragraph id="H74E1F89D777F4CB38887F7A11288496A"><enum>(4)</enum><text>such other
information as the Board reasonably believes is necessary or helpful to the
public in understanding the accounting, financial reporting, and internal
controls of the Board and the Federal reserve
banks.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDCAEC97BBB604DFDB746D1433D1E242F"><enum>(b)</enum><header>Federal reserve
transparency and release of information</header><text display-inline="yes-display-inline">Section 11 of the Federal Reserve Act (12
U.S.C. 248) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H188FEA8FCAB94E82BCC3CE6988ABB016" style="OLC">
<subsection id="H1B6C1D444E0F4BCBA634AB5FE884C8C6"><enum>(s)</enum><header>Federal reserve
transparency and release of information</header>
<paragraph id="H409A4C1EC26A480092BBEB9396D02615"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In order to ensure
the disclosure in a timely manner consistent with the purposes of this Act of
information concerning the borrowers and counterparties participating in
emergency credit facilities, discount window lending programs, and open market
operations authorized or conducted by the Board or a Federal reserve bank, the
Board of Governors shall disclose, as provided in paragraph (2)—</text>
<subparagraph id="HB3FA18D429844749A169DB240C2C152A"><enum>(A)</enum><text display-inline="yes-display-inline">the names and identifying details of each
borrower, participant, or counterparty in any credit facility or covered
transaction;</text>
</subparagraph><subparagraph id="H983B5C28176D44A08F900F43A1F0C26D"><enum>(B)</enum><text>the amount
borrowed by or transferred by or to a specific borrower, participant, or
counterparty in any credit facility or covered transaction;</text>
</subparagraph><subparagraph id="H2465D2C02EB04AE080A83E27914673FE"><enum>(C)</enum><text>the interest rate
or discount paid by each borrower, participant, or counterparty in any credit
facility or covered transaction; and</text>
</subparagraph><subparagraph id="H01CD9205F57A4AAAA65549D775611719"><enum>(D)</enum><text>information
identifying the types and amounts of collateral pledged or assets transferred
in connection with participation in any credit facility or covered
transaction.</text>
</subparagraph></paragraph><paragraph id="H88746CE3D9F54700B76556FBD6E8FD43"><enum>(2)</enum><header>Mandatory
release date</header><text>In the case of—</text>
<subparagraph id="H0DA92DFFD20B41E5B1ED131BE96E5C1B"><enum>(A)</enum><text display-inline="yes-display-inline">a credit facility, the Board shall disclose
the information described in paragraph (1) on the date that is 1 year after the
effective date of the termination by the Board of the authorization of the
credit facility; and</text>
</subparagraph><subparagraph id="H878648235C80442BB03FAB4D75F8E19A"><enum>(B)</enum><text>a covered
transaction, the Board shall disclose the information described in paragraph
(1) on the last day of the eighth calendar quarter following the calendar
quarter in which the covered transaction was conducted.</text>
</subparagraph></paragraph><paragraph id="H09603EDAE7BC49A18BF7E224B168F4A6"><enum>(3)</enum><header>Earlier release
date authorized</header><text display-inline="yes-display-inline">The Chairman
of the Board may publicly release the information described in paragraph (1)
before the relevant date specified in paragraph (2), if the Chairman determines
that such disclosure would be in the public interest and would not harm the
effectiveness of the relevant credit facility or the purpose or conduct of
covered transactions.</text>
</paragraph><paragraph id="H751D511300D944B79C6F3A5D4CC1D814"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="H298E14FB01C04F90B35D91CC47C31CAA"><enum>(A)</enum><header>Credit
facility</header><text>The term <quote>credit facility</quote> has the same
meaning as in section 714(f)(1)(A) of title 31, United States Code.</text>
</subparagraph><subparagraph id="H9192B77DDD7944AFB0E3F448E4EA5848"><enum>(B)</enum><header>Covered
transaction</header><text>The term <quote>covered transaction</quote>
means—</text>
<clause id="HBD1E82B31DA543D4AD58F2239CD6104C"><enum>(i)</enum><text display-inline="yes-display-inline">any open market transaction with a
nongovernmental third party conducted under the first undesignated paragraph of
section 14 or subparagraph (a), (b), or (c) of the 2nd undesignated paragraph
of such section, after the date of enactment of the Dodd-Frank Wall Street
Reform and Consumer Protection Act; and</text>
</clause><clause id="H8FA464FDC03E415897D200CF8F4D8829"><enum>(ii)</enum><text display-inline="yes-display-inline">any advance made under section 10B after
the date of enactment of that Act.</text>
</clause></subparagraph></paragraph><paragraph id="HCE67D19DED8C4E4BA7B1C8520FECE426"><enum>(5)</enum><header>Termination of
credit facility by operation of law</header><text display-inline="yes-display-inline">A credit facility shall be deemed to have
terminated as of the end of the 24-month period beginning on the date on which
the credit facility ceases to make extensions of credit and loans, unless the
credit facility is otherwise terminated by the Board before such date.</text>
</paragraph><paragraph id="HC97DB1465791413DAE63F750AED2420E"><enum>(6)</enum><header>Consistent
treatment of information</header><text display-inline="yes-display-inline">Except as provided in this subsection or
section 13(3)(D), or in section 714(f)(3)(C) of title 31, United States Code,
the information described in paragraph (1) and information concerning the
transactions described in section 714(f) of such title, shall be confidential,
including for purposes of section 552(b)(3) of title 5 of such Code, until the
relevant mandatory release date described in paragraph (2), unless the Chairman
of the Board determines that earlier disclosure of such information would be in
the public interest and would not harm the effectiveness of the relevant credit
facility or the purpose of conduct of the relevant transactions.</text>
</paragraph><paragraph id="HF2D75AE60B8F42A983A124A07D358FEA"><enum>(7)</enum><header>Protection of
personal privacy</header><text display-inline="yes-display-inline">This
subsection and section 13(3)(C), section 714(f)(3)(C) of title 31, United
States Code, and subsection (a) or (c) of section 1109 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act shall not be construed as requiring
any disclosure of nonpublic personal information (as defined for purposes of
section 502 of the Gramm-Leach-Bliley Act (12 U.S.C. 6802)) concerning any
individual who is referenced in collateral pledged or assets transferred in
connection with a credit facility or covered transaction, unless the person is
a borrower, participant, or counterparty under the credit facility or covered
transaction.</text>
</paragraph><paragraph id="H2BA58324F09D4F96B9B54F9B1EA23375"><enum>(8)</enum><header>Study of FOIA
exemption impact</header>
<subparagraph id="H4A280B0E2AD54FC5A0C77DE5B219F555"><enum>(A)</enum><header>Study</header><text>The
Inspector General of the Board of Governors of the Federal Reserve System
shall—</text>
<clause id="HB5ECDAD4FEC947348C7B2F559B21141F"><enum>(i)</enum><text>conduct a study on
the impact that the exemption from section 552(b)(3) of title 5 (known as the
Freedom of Information Act) established under paragraph (6) has had on the
ability of the public to access information about the administration by the
Board of Governors of emergency credit facilities, discount window lending
programs, and open market operations; and</text>
</clause><clause id="H2C974077356C4E2DA9C29B733B38ECF0"><enum>(ii)</enum><text>make any
recommendations on whether the exemption described in clause (i) should remain
in effect.</text>
</clause></subparagraph><subparagraph id="H81CA2D75F76642D2B31CA2188BCE0BE4"><enum>(B)</enum><header>Report</header><text>Not
later than 30 months after the date of enactment of this section, the Inspector
General of the Board of Governors of the Federal Reserve System shall submit a
report on the findings of the study required under subparagraph (A) to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, and publish
the report on the website of the Board.</text>
</subparagraph></paragraph><paragraph id="H1640413A7B9E447A843282B1B9DE1166"><enum>(9)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Nothing in this
section is meant to affect any pending litigation or lawsuit filed under
section 552 of title 5, United States Code (popularly known as the Freedom of
Information Act), on or before the date of enactment of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H96EE5E71A8044A4BA51F1D9E3ECC028B"><enum>1104.</enum><header>Liquidity
event determination</header>
<subsection id="H3F243BEEED2F4A87AFDFFBC4794AE792"><enum>(a)</enum><header>Determination
and written recommendation</header>
<paragraph id="H69BA412F70604E4B8DFAC0ED48829917"><enum>(1)</enum><header>Determination
request</header><text>The Secretary may request the Corporation and the Board
of Governors to determine whether a liquidity event exists that warrants use of
the guarantee program authorized under section 1105.</text>
</paragraph><paragraph id="H7A96BEEA73CC412490C26E55A291A86B"><enum>(2)</enum><header>Requirements of
determination</header><text>Any determination pursuant to paragraph (1)
shall—</text>
<subparagraph id="H8717388AFF584E27863815563CCC546A"><enum>(A)</enum><text>be written;
and</text>
</subparagraph><subparagraph id="HD02566B895274ACFA653D1AAE2EB7C36"><enum>(B)</enum><text>contain an
evaluation of the evidence that—</text>
<clause id="H0A3AAFEF8D714140B0AC7B5ADB4E7718"><enum>(i)</enum><text>a
liquidity event exists;</text>
</clause><clause id="HD6614355A4004A9098BFA3FDAAD3C3E9"><enum>(ii)</enum><text>failure to take
action would have serious adverse effects on financial stability or economic
conditions in the United States; and</text>
</clause><clause id="H494021293215428AA37F42ECDCFA8D75"><enum>(iii)</enum><text>actions
authorized under section 1105 are needed to avoid or mitigate potential adverse
effects on the United States financial system or economic conditions.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H4C3A4FCDCC8A4FCF8851B98CF5D8B320"><enum>(b)</enum><header>Procedures</header><text>Notwithstanding
any other provision of Federal or State law, upon the determination of both the
Corporation (upon a vote of not fewer than <fraction>2/3</fraction> of the
members of the Corporation then serving) and the Board of Governors (upon a
vote of not fewer than <fraction>2/3</fraction> of the members of the Board of
Governors then serving) under subsection (a) that a liquidity event exists that
warrants use of the guarantee program authorized under section 1105, and with
the written consent of the Secretary—</text>
<paragraph id="HF8B32428B10B4969BA17AB49463DB417"><enum>(1)</enum><text>the Corporation
shall take action in accordance with section 1105(a); and</text>
</paragraph><paragraph id="H1AA3976D4D064A3A9DE0689DE37589CD"><enum>(2)</enum><text>the Secretary (in
consultation with the President) shall take action in accordance with section
1105(c).</text>
</paragraph></subsection><subsection id="H4B5E513FD8E14C41A697662E86589265"><enum>(c)</enum><header>Documentation
and review</header>
<paragraph id="H54BFBDD318EF47E5BD8997BE6B67700C"><enum>(1)</enum><header>Documentation</header><text>The
Secretary shall—</text>
<subparagraph id="H9DC3F7C908374A648CF144484C15F176"><enum>(A)</enum><text>maintain the
written documentation of each determination of the Corporation and the Board of
Governors under this section; and</text>
</subparagraph><subparagraph id="HC642A32E4C034AD3B1431BB4D5032BE4"><enum>(B)</enum><text>provide the
documentation for review under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="H6D67780ECE074C1BACC01E29194928D8"><enum>(2)</enum><header>GAO
review</header><text>The Comptroller General of the United States shall review
and report to Congress on any determination of the Corporation and the Board of
Governors under subsection (a), including—</text>
<subparagraph id="H6260D3EC4F0E4795AACE2A16BBAD2FCD"><enum>(A)</enum><text>the basis for the
determination; and</text>
</subparagraph><subparagraph id="HD7B913CE4BBC404E93B079CB07A4C54E"><enum>(B)</enum><text>the likely effect
of the actions taken.</text>
</subparagraph></paragraph></subsection><subsection id="H82E4BEA02A844B7AA14B907B864F2E7A"><enum>(d)</enum><header>Report to
Congress</header><text>On the earlier of the date of a submission made to
Congress under section 1105(c), or within 30 days of the date of a
determination under subsection (a), the Secretary shall provide written notice
of the determination of the Corporation and the Board of Governors to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, including a
description of the basis for the determination.</text>
</subsection></section><section id="HB60DCD9A66FD4722A25BE48F75318401"><enum>1105.</enum><header>Emergency
financial stabilization</header>
<subsection id="H23884691925140318DF61EB141C100E6"><enum>(a)</enum><header>In
general</header><text>Upon the written determination of the Corporation and the
Board of Governors under section 1104, the Corporation shall create a widely
available program to guarantee obligations of solvent insured depository
institutions or solvent depository institution holding companies (including any
affiliates thereof) during times of severe economic distress, except that a
guarantee of obligations under this section may not include the provision of
equity in any form.</text>
</subsection><subsection id="H505B64026BB040D7BDF0F84BF8E35FEA"><enum>(b)</enum><header>Rulemaking and
terms and conditions</header>
<paragraph id="H30115AB9151F4D1CA28EA8F0B33B10AE"><enum>(1)</enum><header>Policies and
procedures</header><text>As soon as is practicable after the date of enactment
of this Act, the Corporation shall establish, by regulation, and in
consultation with the Secretary, policies and procedures governing the issuance
of guarantees authorized by this section. Such policies and procedures may
include a requirement of collateral as a condition of any such
guarantee.</text>
</paragraph><paragraph id="H65AC62640FDF4FD086FFD41D1FDD8F83"><enum>(2)</enum><header>Terms and
conditions</header><text>The terms and conditions of any guarantee program
shall be established by the Corporation, with the concurrence of the
Secretary.</text>
</paragraph></subsection><subsection id="HBDF4C6CD84D04FE2B994313AE862072E"><enum>(c)</enum><header>Determination of
guaranteed amount</header>
<paragraph id="HC35BEA43D0534721BA3026C4A6861B36"><enum>(1)</enum><header>In
general</header><text>In connection with any program established pursuant to
subsection (a) and subject to paragraph (2) of this subsection, the Secretary
(in consultation with the President) shall determine the maximum amount of debt
outstanding that the Corporation may guarantee under this section, and the
President may transmit to Congress a written report on the plan of the
Corporation to exercise the authority under this section to issue guarantees up
to that maximum amount and a request for approval of such plan. The Corporation
shall exercise the authority under this section to issue guarantees up to that
specified maximum amount upon passage of the joint resolution of approval, as
provided in subsection (d). Absent such approval, the Corporation shall issue
no such guarantees.</text>
</paragraph><paragraph id="H8C45F3DE6FAA4E2F82DCF3BF24FD2207"><enum>(2)</enum><header>Additional debt
guarantee authority</header><text>If the Secretary (in consultation with the
President) determines, after a submission to Congress under paragraph (1), that
the maximum guarantee amount should be raised, and the Council concurs with
that determination, the President may transmit to Congress a written report on
the plan of the Corporation to exercise the authority under this section to
issue guarantees up to the increased maximum debt guarantee amount. The
Corporation shall exercise the authority under this section to issue guarantees
up to that specified maximum amount upon passage of the joint resolution of
approval, as provided in subsection (d). Absent such approval, the Corporation
shall issue no such guarantees.</text>
</paragraph></subsection><subsection id="HE41A724FAD5E42C591313A83FF0177EF"><enum>(d)</enum><header>Resolution of
approval</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDF5C5009083A4CA697907C7D430AF0B6"><enum>(1)</enum><header display-inline="yes-display-inline">Additional debt guarantee
authority</header><text display-inline="yes-display-inline">A request by the
President under this section shall be considered granted by Congress upon
adoption of a joint resolution approving such request. Such joint resolution
shall be considered in the Senate under expedited procedures.</text>
</paragraph><paragraph id="H24D23B7287CC492C8AA50390264D87AE"><enum>(2)</enum><header>Fast track
consideration in Senate</header>
<subparagraph id="H40A1A7EB65D546E48E24F9675E9D45E1"><enum>(A)</enum><header>Reconvening</header><text>Upon
receipt of a request under subsection (c), if the Senate has adjourned or
recessed for more than 2 days, the majority leader of the Senate, after
consultation with the minority leader of the Senate, shall notify the Members
of the Senate that, pursuant to this section, the Senate shall convene not
later than the second calendar day after receipt of such message.</text>
</subparagraph><subparagraph id="HCE273CDB24F34B3D9FD510DAA0D3718B"><enum>(B)</enum><header>Placement on
calendar</header><text>Upon introduction in the Senate, the joint resolution
shall be placed immediately on the calendar.</text>
</subparagraph><subparagraph id="H36CBF2D31AA54DAAA84890D4F89054C5"><enum>(C)</enum><header>Floor
consideration</header>
<clause id="H09D6D168B6C44B9C97F138F282063AC6"><enum>(i)</enum><header>In
general</header><text>Notwithstanding Rule XXII of the Standing Rules of the
Senate, it is in order at any time during the period beginning on the 4th day
after the date on which Congress receives a request under subsection (c), and
ending on the 7th day after that date (even though a previous motion to the
same effect has been disagreed to) to move to proceed to the consideration of
the joint resolution, and all points of order against the joint resolution (and
against consideration of the joint resolution) are waived. The motion to
proceed is not debatable. The motion is not subject to a motion to postpone. A
motion to reconsider the vote by which the motion is agreed to or disagreed to
shall not be in order. If a motion to proceed to the consideration of the
resolution is agreed to, the joint resolution shall remain the unfinished
business until disposed of.</text>
</clause><clause id="H78653A49754647D6B017AF5DD14D852D"><enum>(ii)</enum><header>Debate</header><text>Debate
on the joint resolution, and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours, which shall be divided
equally between the majority and minority leaders or their designees. A motion
further to limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.</text>
</clause><clause id="H5CFF14A02EB3486BB7713EBA1EE4E636"><enum>(iii)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on the joint resolution, and a single quorum call at
the conclusion of the debate if requested in accordance with the rules of the
Senate.</text>
</clause><clause id="H92C1198F531547F7867CC1D0B5CDDC75"><enum>(iv)</enum><header>Rulings of the
chair on procedure</header><text>Appeals from the decisions of the Chair
relating to the application of the rules of the Senate, as the case may be, to
the procedure relating to a joint resolution shall be decided without
debate.</text>
</clause></subparagraph></paragraph><paragraph id="H82A932085F8D4D618771FAD5704234CE"><enum>(3)</enum><header>Rules</header>
<subparagraph id="H6AD12C54B7A541EB86EF246EF23247EE"><enum>(A)</enum><header>Coordination
with action by house of Representatives</header><text>If, before the passage by
the Senate of a joint resolution of the Senate, the Senate receives a joint
resolution, from the House of Representatives, then the following procedures
shall apply:</text>
<clause id="H9284A055ADB1449C81D156AF15E55FD2"><enum>(i)</enum><text>The
joint resolution of the House of Representatives shall not be referred to a
committee.</text>
</clause><clause id="H48EF3162DDDC436AA59927908645E7AC"><enum>(ii)</enum><text>With respect to a
joint resolution of the Senate—</text>
<subclause id="H397A529BEFD94B0CA2CF06BAFCC28212"><enum>(I)</enum><text>the procedure in
the Senate shall be the same as if no joint resolution had been received from
the other House; but</text>
</subclause><subclause id="H85F66722C0344C06B9F89F21A0CFE323"><enum>(II)</enum><text>the vote on
passage shall be on the joint resolution of the House of
Representatives.</text>
</subclause></clause></subparagraph><subparagraph id="H434D037F985E4CA7863C15D25C3D963A"><enum>(B)</enum><header>Treatment of
joint resolution of House of Representatives</header><text>If the Senate fails
to introduce or consider a joint resolution under this section, the joint
resolution of the House of Representatives shall be entitled to expedited floor
procedures under this subsection.</text>
</subparagraph><subparagraph id="HB83A6ACEE9A24E858C90A5FE337CF068"><enum>(C)</enum><header>Treatment of
companion measures</header><text>If, following passage of the joint resolution
in the Senate, the Senate then receives the companion measure from the House of
Representatives, the companion measure shall not be debatable.</text>
</subparagraph><subparagraph id="H4278B935E840457CBA0B8D47AEB2839A"><enum>(D)</enum><header>Rules of the
Senate</header><text>This subsection is enacted by Congress—</text>
<clause id="H035F79E0259D4FE0ACA1B33775071380"><enum>(i)</enum><text>as
an exercise of the rulemaking power of the Senate, and as such it is deemed a
part of the rules of the Senate, but applicable only with respect to the
procedure to be followed in the Senate in the case of a joint resolution, and
it supersedes other rules, only to the extent that it is inconsistent with such
rules; and</text>
</clause><clause id="H24B5182FE3C44370BD99DFE1B2C43352"><enum>(ii)</enum><text>with full
recognition of the constitutional right of the Senate to change the rules (so
far as relating to the procedure of the Senate) at any time, in the same
manner, and to the same extent as in the case of any other rule of the
Senate.</text>
</clause></subparagraph></paragraph><paragraph id="HD71ED2058FA04197BA1FEA5CD1DE2E02"><enum>(4)</enum><header>Definition</header><text>As
used in this subsection, the term <quote>joint resolution</quote> means only a
joint resolution—</text>
<subparagraph id="H7A88F5DFC21D4113B0663902EC7CE0A9"><enum>(A)</enum><text>that is introduced
not later than 3 calendar days after the date on which the request referred to
in subsection (c) is received by Congress;</text>
</subparagraph><subparagraph id="HB4549C0905524ABE885B60A4174AD51A"><enum>(B)</enum><text>that does not have
a preamble;</text>
</subparagraph><subparagraph id="H19658615D47742288CCEB93406AFAEF7"><enum>(C)</enum><text>the title of which
is as follows: <quote>Joint resolution relating to the approval of a plan to
guarantee obligations under section 1105 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act</quote>; and</text>
</subparagraph><subparagraph id="HC3AE77043CDB4DDDBAF53AFB38B41F81"><enum>(D)</enum><text>the matter after
the resolving clause of which is as follows: <quote>That Congress approves the
obligation of any amount described in section 1105(c) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HFD3880F22F4C4F679BD402CCE5724B97"><enum>(e)</enum><header>Funding</header>
<paragraph id="H0B764EE70AF74148B084C9E2DB3F058F"><enum>(1)</enum><header>Fees and other
charges</header><text>The Corporation shall charge fees and other assessments
to all participants in the program established pursuant to this section, in
such amounts as are necessary to offset projected losses and administrative
expenses, including amounts borrowed pursuant to paragraph (3), and such
amounts shall be available to the Corporation.</text>
</paragraph><paragraph id="H4D7E5A7FD83C4358AA9DC99C814B0A60"><enum>(2)</enum><header>Excess
funds</header><text>If, at the conclusion of the program established under this
section, there are any excess funds collected from the fees associated with
such program, the funds shall be deposited in the General Fund of the
Treasury.</text>
</paragraph><paragraph id="HE3C9F78F4253449EBDE194BC38AA835B"><enum>(3)</enum><header>Authority of
corporation</header><text>The Corporation—</text>
<subparagraph id="H9CAE5C5156D5427694CEF55A3FA29C73"><enum>(A)</enum><text>may borrow funds
from the Secretary of the Treasury and issue obligations of the Corporation to
the Secretary for amounts borrowed, and the amounts borrowed shall be available
to the Corporation for purposes of carrying out a program established pursuant
to this section, including the payment of reasonable costs of administering the
program, and the obligations issued shall be repaid in full with interest
through fees and charges paid by participants in accordance with paragraphs (1)
and (4), as applicable; and</text>
</subparagraph><subparagraph id="H6CC5FDA81B964899B10CD4EFC50DB951"><enum>(B)</enum><text>may not borrow
funds from the Deposit Insurance Fund established pursuant to section 11(a)(4)
of the Federal Deposit Insurance Act.</text>
</subparagraph></paragraph><paragraph id="H9D64A7E17C174A43AA7BCCE770BB821A"><enum>(4)</enum><header>Backup special
assessments</header><text>To the extent that the funds collected pursuant to
paragraph (1) are insufficient to cover any losses or expenses, including
amounts borrowed pursuant to paragraph (3), arising from a program established
pursuant to this section, the Corporation shall impose a special assessment
solely on participants in the program, in amounts necessary to address such
insufficiency, and which shall be available to the Corporation to cover such
losses or expenses.</text>
</paragraph><paragraph id="H8DCC5E3F17C247F0994307397553BE50"><enum>(5)</enum><header>Authority of the
Secretary</header><text>The Secretary may purchase any obligations issued under
paragraph (3)(A). For such purpose, the Secretary may use the proceeds of the
sale of any securities issued under chapter 31 of title 31, United States Code,
and the purposes for which securities may be issued under that chapter 31 are
extended to include such purchases, and the amount of any securities issued
under that chapter 31 for such purpose shall be treated in the same manner as
securities issued under section 208(n)(5)(E).</text>
</paragraph></subsection><subsection id="H7A1CEFFB62D54751B4215E1E0E914728"><enum>(f)</enum><header>Rule of
construction</header><text>For purposes of this section, a guarantee of
deposits held by insured depository institutions shall not be treated as a debt
guarantee program.</text>
</subsection><subsection id="HAD6F8B89EA2B445DB28F5FB4FFC83DD7"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H178C2EFCDDE14761ACEDFDCF1FD44B72"><enum>(1)</enum><header>Company</header><text>The
term <term>company</term> means any entity other than a natural person that is
incorporated or organized under Federal law or the laws of any State.</text>
</paragraph><paragraph id="H486086E8D25A4EAFA76464ACA4F5D4BF"><enum>(2)</enum><header>Depository
institution holding company</header><text>The term <term>depository institution
holding company</term> has the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph id="H80C4F73FEE1642ACB91F39EAC8D880C3"><enum>(3)</enum><header>Liquidity
event</header><text>The term <term>liquidity event</term> means—</text>
<subparagraph id="H2B0CB798E5AA4A748CFECD9C2C759250"><enum>(A)</enum><text>an exceptional and
broad reduction in the general ability of financial market participants—</text>
<clause id="H4187E43AB8B34FA0BE2E308880E3F2F4"><enum>(i)</enum><text>to
sell financial assets without an unusual and significant discount; or</text>
</clause><clause id="H9EE7C5B284C5455A961E5DFD56679D17"><enum>(ii)</enum><text>to
borrow using financial assets as collateral without an unusual and significant
increase in margin; or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE0BFAED5128842C8B5316B18B251924F"><enum>(B)</enum><text>an unusual and
significant reduction in the ability of financial market participants to obtain
unsecured credit.</text>
</subparagraph></paragraph><paragraph id="HFE5F9EAAC4094D248EB76F3A989EABB7"><enum>(4)</enum><header>Solvent</header><text>The
term <term>solvent</term> means that the value of the assets of an entity
exceed its obligations to creditors.</text>
</paragraph></subsection></section><section id="HA4C967E72D7541E38F8B58912DB08696"><enum>1106.</enum><header>Additional
related amendments</header>
<subsection id="HA833920331CC49B2A86F350321E222F7"><enum>(a)</enum><header>Suspension of
parallel Federal deposit insurance Act authority</header><text>Effective upon
the date of enactment of this section, the Corporation may not exercise its
authority under section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(i)) to establish any widely available debt guarantee
program for which section 1105 would provide authority.</text>
</subsection><subsection id="H08F56F1CD9264A649EA8A609843A9106"><enum>(b)</enum><header>Federal Deposit
Insurance Act</header><text>Section 13(c)(4)(G) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)(G)) is amended—</text>
<paragraph id="HC5222F5B7D474C16B03710B448781D3F"><enum>(1)</enum><text>in clause
(i)—</text>
<subparagraph id="HA785D14AA6204442BD9CDA9356404973"><enum>(A)</enum><text>in subclause (I),
by inserting <quote>for which the Corporation has been appointed
receiver</quote> before <quote>would have serious</quote>; and</text>
</subparagraph><subparagraph id="H9FB15502F1E04CC5829CA9DC573404CD"><enum>(B)</enum><text>in the
undesignated matter following subclause (II), by inserting <quote>for the
purpose of winding up the insured depository institution for which the
Corporation has been appointed receiver</quote> after <quote>provide assistance
under this section</quote>; and</text>
</subparagraph></paragraph><paragraph id="HEA61699D15834105AF4F1822A1D164BA"><enum>(2)</enum><text>in clause (v)(I),
by striking <quote>The</quote> and inserting <quote>Not later than 3 days after
making a determination under clause (i), the</quote>.</text>
</paragraph></subsection><subsection id="H0F89701B09EB4FB996BBAE948FB577C6"><enum>(c)</enum><header>Effect of
Default on an FDIC Guarantee</header><text>If an insured depository institution
or depository institution holding company (as those terms are defined in
section 3 of the Federal Deposit Insurance Act) participating in a program
under section 1105, or any participant in a debt guarantee program established
pursuant to section 13(c)(4)(G)(i) of the Federal Deposit Insurance Act
defaults on any obligation guaranteed by the Corporation after the date of
enactment of this Act, the Corporation shall—</text>
<paragraph id="HB9928FF946D94798A49309805BD30850"><enum>(1)</enum><text>appoint itself as
receiver for the insured depository institution that defaults; and</text>
</paragraph><paragraph id="H2BB9B130F4004685928FF0110EAB03BE"><enum>(2)</enum><text>with respect to
any other participating company that is not an insured depository institution
that defaults—</text>
<subparagraph id="HC5DB22FABD324E56BDBE4E6C2D6D6D54"><enum>(A)</enum><text>require—</text>
<clause id="H6D466B9873A241029C5C6BED88DFFE28"><enum>(i)</enum><text>consideration of
whether a determination shall be made, as provided in section 203 to resolve
the company under section 202; and</text>
</clause><clause id="HD4B8EEF2D4CD4201B1065296DCEED327"><enum>(ii)</enum><text>the
company to file a petition for bankruptcy under section 301 of title 11, United
States Code, if the Corporation is not appointed receiver pursuant to section
202 within 30 days of the date of default; or</text>
</clause></subparagraph><subparagraph id="H826F602E31994DD7A638231AC0637C5A"><enum>(B)</enum><text>file a petition
for involuntary bankruptcy on behalf of the company under section 303 of title
11, United States Code.</text>
</subparagraph></paragraph></subsection></section><section id="H16F6C05B5C5043F9907CA10BCC7A9B46"><enum>1107.</enum><header>Federal
Reserve Act amendments on Federal reserve bank governance</header><text display-inline="no-display-inline">The 5th subparagraph of the 4th undesignated
paragraph of section 4 of the Federal Reserve Act (12 U.S.C. 341) is amended by
striking the 2nd sentence and inserting the following: <quote>The president
shall be the chief executive officer of the bank and shall be appointed by the
Class B and Class C directors of the bank, with the approval of the Board of
Governors of the Federal Reserve System, for a term of 5 years; and all other
executive officers and all employees of the bank shall be directly responsible
to the president.</quote>.</text>
</section><section id="H79B2CD5561CC47D8920D161E03E448BF"><enum>1108.</enum><header>Federal
Reserve Act amendments on supervision and regulation policy</header>
<subsection id="H7BD43E8B15B149C58042476206E32903"><enum>(a)</enum><header>Establishment of
the position of vice chairman for supervision</header>
<paragraph id="HD41847AC82DD41228206582D4FBD144F"><enum>(1)</enum><header>Position
established</header><text>The second undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 242) (relating to the Chairman and Vice
Chairman of the Board) is amended by striking the third sentence and inserting
the following: <quote>Of the persons thus appointed, 1 shall be designated by
the President, by and with the advice and consent of the Senate, to serve as
Chairman of the Board for a term of 4 years, and 2 shall be designated by the
President, by and with the advice and consent of the Senate, to serve as Vice
Chairmen of the Board, each for a term of 4 years, 1 of whom shall serve in the
absence of the Chairman, as provided in the fourth undesignated paragraph of
this section, and 1 of whom shall be designated Vice Chairman for Supervision.
The Vice Chairman for Supervision shall develop policy recommendations for the
Board regarding supervision and regulation of depository institution holding
companies and other financial firms supervised by the Board, and shall oversee
the supervision and regulation of such firms.</quote>.</text>
</paragraph><paragraph id="H65B2AF0336C84CFDBF3CB85A6D205FFC"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by subsection (a) takes effect on the
date of enactment of this title and applies to individuals who are designated
by the President on or after that date to serve as Vice Chairman of
Supervision.</text>
</paragraph></subsection><subsection id="HCD1FC434A1314BB189FDADA106FDE914"><enum>(b)</enum><header>Appearances
before congress</header><text>Section 10 of the Federal Reserve Act (12 U.S.C.
241 et seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC27C77E53279415ABA831D465C4B6151" style="OLC">
<paragraph id="HFCC697B9C9CE4F658EE0A1387BC448C8"><enum>(12)</enum><header>Appearances
before congress</header><text>The Vice Chairman for Supervision shall appear
before the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives and at
semi-annual hearings regarding the efforts, activities, objectives, and plans
of the Board with respect to the conduct of supervision and regulation of
depository institution holding companies and other financial firms supervised
by the
Board.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF7169E7CA84B4C7DB07875AEE64C4662"><enum>(c)</enum><header>Board
responsibility To set supervision and regulatory policy</header><text>Section
11 of the Federal Reserve Act (12 U.S.C. 248) (relating to enumerated powers of
the Board) is amended by adding at the end of subsection (k) (relating to
delegation) the following: <quote>The Board of Governors may not delegate to a
Federal reserve bank its functions for the establishment of policies for the
supervision and regulation of depository institution holding companies and
other financial firms supervised by the Board of Governors.</quote>.</text>
</subsection><subsection id="H00D7A0FA26C1406BA1FF3217C023A3A7"><enum>(d)</enum><header>Exercise of
Federal Reserve authority</header>
<paragraph id="H6BF44D94DB5445B8BE59CD3DEDA0FC37"><enum>(1)</enum><header>No decisions by
federal reserve bank presidents</header><text display-inline="yes-display-inline">No provision of title I relating to the
authority of the Board of Governors shall be construed as conferring any
decision-making authority on presidents of Federal reserve banks.</text>
</paragraph><paragraph id="HE56F5167E61E4675AB022A67D37B7DBB"><enum>(2)</enum><header>Voting decisions
by board</header><text display-inline="yes-display-inline">The Board of
Governors shall not delegate the authority to make any voting decision that the
Board of Governors is authorized or required to make under title I of this Act
in contravention of section 11(k) of the Federal Reserve Act.</text>
</paragraph></subsection></section><section id="H1F1E08D476664F0C933097E75EB82FEC"><enum>1109.</enum><header>GAO audit of
the Federal Reserve facilities; publication of Board actions</header>
<subsection id="HCB4BAA658EBE432FB22AD7EE44675DDC"><enum>(a)</enum><header>GAO
Audit</header>
<paragraph id="HF3A90E9B6D9345BD87134CE1B4DE304D"><enum>(1)</enum><header>In
general</header><text>Notwithstanding section 714(b) of title 31, United States
Code, or any other provision of law, the Comptroller General of the United
States (in this subsection referred to as the <quote>Comptroller
General</quote>) shall conduct a one-time audit of all loans and other
financial assistance provided during the period beginning on December 1, 2007
and ending on the date of enactment of this Act by the Board of Governors or a
Federal reserve bank under the Asset-Backed Commercial Paper Money Market
Mutual Fund Liquidity Facility, the Term Asset-Backed Securities Loan Facility,
the Primary Dealer Credit Facility, the Commercial Paper Funding Facility, the
Term Securities Lending Facility, the Term Auction Facility, Maiden Lane,
Maiden Lane II, Maiden Lane III, the agency Mortgage-Backed Securities program,
foreign currency liquidity swap lines, and any other program created as a
result of section 13(3) of the Federal Reserve Act (as so designated by this
title).</text>
</paragraph><paragraph id="H667256DCE61E46C1A15887764709512D"><enum>(2)</enum><header>Assessments</header><text>In
conducting the audit under paragraph (1), the Comptroller General shall
assess—</text>
<subparagraph id="HB2572A85CBFC44839844213EA3920D5F"><enum>(A)</enum><text>the operational
integrity, accounting, financial reporting, and internal controls of the credit
facility;</text>
</subparagraph><subparagraph id="H8120DB451EAC4DB1ADC8A36662E68E3D3"><enum>(B)</enum><text>the effectiveness
of the security and collateral policies established for the facility in
mitigating risk to the relevant Federal reserve bank and taxpayers;</text>
</subparagraph><subparagraph id="HC89AFE31295644D0A171F04CA40B3DAD5"><enum>(C)</enum><text>whether the
credit facility inappropriately favors one or more specific participants over
other institutions eligible to utilize the facility;</text>
</subparagraph><subparagraph id="H9067DC064FFF4976A39E1B133AE9E11877"><enum>(D)</enum><text>the policies
governing the use, selection, or payment of third-party contractors by or for
any credit facility; and</text>
</subparagraph><subparagraph id="HDC6B3CE1C36C4D318E13B1290D687EB2"><enum>(E)</enum><text>whether there were
conflicts of interest with respect to the manner in which such facility was
established or operated.</text>
</subparagraph></paragraph><paragraph id="HAF9F3800622241A385ADF82083013800"><enum>(3)</enum><header>Timing</header><text>The
audit required by this subsection shall be commenced not later than 30 days
after the date of enactment of this Act, and shall be completed not later than
12 months after that date of enactment.</text>
</paragraph><paragraph id="H2CC82840C04541FDA1FAA95232CE5221"><enum>(4)</enum><header>Report
required</header><text>The Comptroller General shall submit a report on the
audit conducted under paragraph (1) to the Congress not later than 12 months
after the date of enactment of this Act, and such report shall be made
available to—</text>
<subparagraph id="HD19C1D64E0364EF0A63EEF420B564EFC"><enum>(A)</enum><text>the Speaker of the
House of Representatives;</text>
</subparagraph><subparagraph id="H68FB7B4AA0634831B22A13857BA471A3"><enum>(B)</enum><text>the majority and
minority leaders of the House of Representatives;</text>
</subparagraph><subparagraph id="HE74BA2A053FE48C984CB159D84ADD931"><enum>(C)</enum><text>the majority and
minority leaders of the Senate;</text>
</subparagraph><subparagraph id="H25F661B292FE4AB58F5E14E69E567CD1"><enum>(D)</enum><text>the Chairman and
Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the
Senate and of the Committee on Financial Services of the House of
Representatives; and</text>
</subparagraph><subparagraph id="H29764E771BA243059D27A8CF67F18F83"><enum>(E)</enum><text>any member of
Congress who requests it.</text>
</subparagraph></paragraph></subsection><subsection id="HA8D51FC3022B4529AD71EE71BDDB97EE"><enum>(b)</enum><header>Audit of Federal
Reserve Bank Governance</header>
<paragraph id="H26F8DA21D3A84155B2C8E89FB1E77C0B"><enum>(1)</enum><header>Audit</header>
<subparagraph id="H2A67D96E69B746CFB7B3FF54C3C616C0"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Comptroller General shall complete an audit of the governance of the
Federal reserve bank system.</text>
</subparagraph><subparagraph id="H9B754A39724040D4AE7D8345A41B8567"><enum>(B)</enum><header>Required
examinations</header><text>The audit required under subparagraph (A)
shall—</text>
<clause id="HFBA36EE89690494AA3C95400BAF53838"><enum>(i)</enum><text>examine the extent
to which the current system of appointing Federal reserve bank directors
effectively represents <quote>the public, without discrimination on the basis
of race, creed, color, sex or national origin, and with due but not exclusive
consideration to the interests of agriculture, commerce, industry, services,
labor, and consumers</quote> in the selection of bank directors, as such
requirement is set forth under section 4 of the Federal Reserve Act;</text>
</clause><clause id="HE905065270FE4416B4C1F62E95FE3C8E"><enum>(ii)</enum><text>examine whether
there are actual or potential conflicts of interest created when the directors
of Federal reserve banks, which execute the supervisory functions of the Board
of Governors of the Federal Reserve System, are elected by member banks;</text>
</clause><clause id="H0722B19A8D234DF5A316F21EE7A5860C"><enum>(iii)</enum><text>examine the
establishment and operations of each facility described in subsection (a)(1)
and each Federal reserve bank involved in the establishment and operations
thereof; and</text>
</clause><clause id="H10ED28FBE826482786A10ABE68595B87"><enum>(iv)</enum><text>identify changes
to selection procedures for Federal reserve bank directors, or to other aspects
of Federal reserve bank governance, that would—</text>
<subclause id="HFCA73D559E614B4A840573E46E1E30BA"><enum>(I)</enum><text>improve how the
public is represented;</text>
</subclause><subclause id="HC9B1542412BC41A58630AB6FA6B8C598"><enum>(II)</enum><text>eliminate actual
or potential conflicts of interest in bank supervision;</text>
</subclause><subclause id="H8B0E113184FB4909A3D9245442D59B8C"><enum>(III)</enum><text>increase the
availability of information useful for the formation and execution of monetary
policy; or</text>
</subclause><subclause id="HDE873C81AC0B4FCEA648C0544FE7B084"><enum>(IV)</enum><text>in other ways
increase the effectiveness or efficiency of reserve banks.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H12CF03AFD5A241C5AF243FFF3BBF61F8"><enum>(2)</enum><header>Report
required</header><text>A report on the audit conducted under paragraph (1)
shall be submitted by the Comptroller General to the Congress before the end of
the 90-day period beginning on the date on which such audit is completed, and
such report shall be made available to—</text>
<subparagraph id="HACE93B6F97914C7C9E00A121B5A5C902"><enum>(A)</enum><text>the Speaker of the
House of Representatives;</text>
</subparagraph><subparagraph id="HB1FF0A028A0249079955B3BD5F11E131"><enum>(B)</enum><text>the majority and
minority leaders of the House of Representatives;</text>
</subparagraph><subparagraph id="HA8EF75905B584C568293ADD634A98E0A"><enum>(C)</enum><text>the majority and
minority leaders of the Senate;</text>
</subparagraph><subparagraph id="H6004FB24E67C4BBF96BA83DC423CB96D"><enum>(D)</enum><text>the Chairman and
Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the
Senate and of the Committee on Financial Services of the House of
Representatives; and</text>
</subparagraph><subparagraph id="H088B8D304049444986E4EBEFC6A40BE0"><enum>(E)</enum><text>any member of
Congress who requests it.</text>
</subparagraph></paragraph></subsection><subsection id="HABD25D7AA5AB4DCA8FF3DF78B04DF63D"><enum>(c)</enum><header>Publication of
Board actions</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of law, the Board of Governors shall publish on its
website, not later than December 1, 2010, with respect to all loans and other
financial assistance provided during the period beginning on December 1, 2007
and ending on the date of enactment of this Act under the Asset-Backed
Commercial Paper Money Market Mutual Fund Liquidity Facility, the Term
Asset-Backed Securities Loan Facility, the Primary Dealer Credit Facility, the
Commercial Paper Funding Facility, the Term Securities Lending Facility, the
Term Auction Facility, Maiden Lane, Maiden Lane II, Maiden Lane III, the agency
Mortgage-Backed Securities program, foreign currency liquidity swap lines, and
any other program created as a result of section 13(3) of the Federal Reserve
Act (as so designated by this title)—</text>
<paragraph id="HF79F9314F6C5491EA6AC628314896ACC"><enum>(1)</enum><text>the identity of
each business, individual, entity, or foreign central bank to which the Board
of Governors or a Federal reserve bank has provided such assistance;</text>
</paragraph><paragraph id="HDCFF6BCF76934E63880CC7C0CE941169"><enum>(2)</enum><text>the type of
financial assistance provided to that business, individual, entity, or foreign
central bank;</text>
</paragraph><paragraph id="HEEABFE50D9A24256AB1344C9019186B0"><enum>(3)</enum><text>the value or
amount of that financial assistance;</text>
</paragraph><paragraph id="H0BAAC3684C8644ADAF2A0D523433E06E"><enum>(4)</enum><text>the date on which
the financial assistance was provided;</text>
</paragraph><paragraph id="HC11240B61EB04956B0897D1BC450D636"><enum>(5)</enum><text>the specific terms
of any repayment expected, including the repayment time period, interest
charges, collateral, limitations on executive compensation or dividends, and
other material terms; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD6784BBD6DD145388596D2234903EB59"><enum>(6)</enum><text>the specific
rationale for each such facility or program.</text>
</paragraph></subsection></section><enum>XII</enum><header>Improving access
to mainstream financial institutions</header>
<section id="H46A8C024535A4C97B662A6EC1BFA0666" section-type="subsequent-section"><enum>1201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Improving Access to Mainstream Financial Institutions Act of
2010</quote>.</text>
</section><section id="H56CF715A8354446684610C5E487CEB74"><enum>1202.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this title is to encourage
initiatives for financial products and services that are appropriate and
accessible for millions of Americans who are not fully incorporated into the
financial mainstream.</text>
</section><section id="HE6294F80929D4886A091FF4E862C7BE5"><enum>1203.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="HD1E3AA254701497B98B62861DE5B80BA"><enum>(1)</enum><header>Account</header><text>The
term <term>account</term> means an agreement between an individual and an
eligible entity under which the individual obtains from or through the entity 1
or more banking products and services, and includes a deposit account, a
savings account (including a money market savings account), an account for a
closed-end loan, and other products or services, as the Secretary deems
appropriate.</text>
</paragraph><paragraph id="H2A8E023057A34C3890D09910152226AB"><enum>(2)</enum><header>Community
development financial institution</header><text>The term <term>community
development financial institution</term> has the same meaning as in section
103(5) of the Community Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702(5)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD599C98D4904B74998FC3801AC61AA4"><enum>(3)</enum><header>Eligible
entity</header><text display-inline="yes-display-inline">The term
<term>eligible entity</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H188C5DF2055B4D648FEB58DDD9D0C506"><enum>(A)</enum><text display-inline="yes-display-inline">an organization described in section
501(c)(3) of the Internal Revenue Code of 1986, and exempt from tax under
section 501(a) of such Code;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD07C7BDE78634B1F81DD732DC00DB24C"><enum>(B)</enum><text display-inline="yes-display-inline">a federally insured depository
institution;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE75A94456A2D47E585DD1C5BD9E35663"><enum>(C)</enum><text display-inline="yes-display-inline">a community development financial
institution;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE78BFDCBB80F47609A5511E8D47499CD"><enum>(D)</enum><text>a State, local, or
tribal government entity; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H95BA895879B941F0858CDA93D641C99A"><enum>(E)</enum><text display-inline="yes-display-inline">a partnership or other joint venture
comprised of 1 or more of the entities described in subparagraphs (A) through
(D), in accordance with regulations prescribed by the Secretary under this
title.</text>
</subparagraph></paragraph><paragraph id="HF565662F223145B8A5E2EE011971A1D9"><enum>(4)</enum><header>Federally
insured depository institution</header><text>The term <term>federally insured
depository institution</term> means any insured depository institution (as that
term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)) and any insured credit union (as that term is defined in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752)).</text>
</paragraph></section><section id="H416C081D49F143BE8A09A25D7B183FFB"><enum>1204.</enum><header>Expanded
access to mainstream financial institutions</header>
<subsection id="H83A4909FBFF54CD0A4A4CB0AAC37BC4C"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to establish a multiyear
program of grants, cooperative agreements, financial agency agreements, and
similar contracts or undertakings to promote initiatives designed—</text>
<paragraph id="H2BE7A98EF7374924A5C47B11C0CACE61"><enum>(1)</enum><text>to enable low- and
moderate-income individuals to establish one or more accounts in a federally
insured depository institution that are appropriate to meet the financial needs
of such individuals; and</text>
</paragraph><paragraph id="HAB61B960E2574B1AA1BD868678DA260D"><enum>(2)</enum><text>to improve access
to the provision of accounts, on reasonable terms, for low- and moderate-income
individuals.</text>
</paragraph></subsection><subsection id="HC9EF1D9E40044FB5BEAF080E844E8099"><enum>(b)</enum><header>Program
eligibility and activities</header>
<paragraph id="H8B98F0CD36FB4D149629FCB1F5A93F9B"><enum>(1)</enum><header>In
general</header><text>The Secretary shall restrict participation in any program
established under subsection (a) to an eligible entity. Subject to regulations
prescribed by the Secretary under this title, 1 or more eligible entities may
participate in 1 or several programs established under subsection (a).</text>
</paragraph><paragraph id="HA35B491703134D5CA45CF5E2AB5B3BB9"><enum>(2)</enum><header>Account
activities</header><text>Subject to regulations prescribed by the Secretary, an
eligible entity may, in participating in a program established under subsection
(a), offer or provide to low- and moderate-income individuals products and
services relating to accounts, including—</text>
<subparagraph id="H54A1299F45144DE28BE0E286D71DA490"><enum>(A)</enum><text>small-dollar value
loans; and</text>
</subparagraph><subparagraph id="HB677CFACEC56469EA903901AB592A503"><enum>(B)</enum><text>financial
education and counseling relating to conducting transactions in and managing
accounts.</text>
</subparagraph></paragraph></subsection></section><section id="H25408F676599463A90FAD776721E48A3"><enum>1205.</enum><header>Low-cost
alternatives to small dollar loans</header>
<subsection commented="no" display-inline="no-display-inline" id="HA1C13BCA8EE54E8F89D825E6411D4182"><enum>(a)</enum><header>Grants
authorized</header><text display-inline="yes-display-inline">The Secretary is
authorized to establish multiyear demonstration programs by means of grants,
cooperative agreements, financial agency agreements, and similar contracts or
undertakings, with eligible entities to provide low-cost, small loans to
consumers that will provide alternatives to more costly small dollar
loans.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5FDF83B1715C4CD5A4D514C65DB23270"><enum>(b)</enum><header>Terms and
conditions</header>
<paragraph id="H3D02475B2E474FC4822B3A3B3601CFD2"><enum>(1)</enum><header>In
general</header><text>Loans under this section shall be made on terms and
conditions, and pursuant to lending practices, that are reasonable for
consumers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD9201E49C594F0783637C168357A014"><enum>(2)</enum><header>Financial
literacy and education opportunities</header>
<subparagraph id="HEB7A87C9050D4DC987551E4C997282D9"><enum>(A)</enum><header>In
general</header><text>Each eligible entity awarded a grant under this section
shall promote and take appropriate steps to ensure the provision of financial
literacy and education opportunities, such as relevant counseling services,
educational courses, or wealth building programs, to each consumer provided
with a loan pursuant to this section.</text>
</subparagraph><subparagraph id="HAF677420717E4C7DA4C010D18EE69142"><enum>(B)</enum><header>Authority to
expand access</header><text>As part of the grants, agreements, and undertakings
established under this section, the Secretary may implement reasonable measures
or programs designed to expand access to financial literacy and education
opportunities, including relevant counseling services, educational courses, or
wealth building programs to be provided to individuals who obtain loans from
eligible entities under this section.</text>
</subparagraph></paragraph></subsection></section><section id="H8280003503D2493C8C7785A985F00EEA"><enum>1206.</enum><header>Grants to
establish loan-loss reserve funds</header><text display-inline="no-display-inline">The Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4701 et seq.) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H50BB657DABE3438EAD8CC9DC853F3724" style="OLC">
<section id="HE9E07712880742E48943BDB8DD408F7F"><enum>122.</enum><header>Grants to
establish loan-loss reserve funds</header>
<subsection id="H92CC2D9B2BF645DEA95BEC1F7E2C14AA"><enum>(a)</enum><header>Purposes</header><text>The
purposes of this section are—</text>
<paragraph id="HE70DC35A32ED4E6A95A8100EFBDDDF28"><enum>(1)</enum><text>to make financial
assistance available from the Fund in order to help community development
financial institutions defray the costs of operating small dollar loan
programs, by providing the amounts necessary for such institutions to establish
their own loan loss reserve funds to mitigate some of the losses on such small
dollar loan programs; and</text>
</paragraph><paragraph id="H5FE1D932764744588C7995B62B84E917"><enum>(2)</enum><text>to encourage
community development financial institutions to establish and maintain small
dollar loan programs that would help give consumers access to mainstream
financial institutions and combat high cost small dollar lending.</text>
</paragraph></subsection><subsection id="HE245533F586B4DFD83BF7F622F089F32"><enum>(b)</enum><header>Grants</header>
<paragraph id="H0F0148B7CD4542D2B85756DF0719F30B"><enum>(1)</enum><header>Loan-loss
reserve fund grants</header><text>The Fund shall make grants to community
development financial institutions or to any partnership between such community
development financial institutions and any other federally insured depository
institution with a primary mission to serve targeted investment areas, as such
areas are defined under section 103(16), to enable such institutions or any
partnership of such institutions to establish a loan-loss reserve fund in order
to defray the costs of a small dollar loan program established or maintained by
such institution.</text>
</paragraph><paragraph id="HD1E0DECB36EF4605B13E82E9AA17DC9A"><enum>(2)</enum><header>Matching
requirement</header><text>A community development financial institution or any
partnership of institutions established pursuant to paragraph (1) shall provide
non-Federal matching funds in an amount equal to 50 percent of the amount of
any grant received under this section.</text>
</paragraph><paragraph id="HCF963DBC6D4744FCA54AB0224836D7D4"><enum>(3)</enum><header>Use of
funds</header><text>Any grant amounts received by a community development
financial institution or any partnership between or among such institutions
under paragraph (1)—</text>
<subparagraph id="H5D632FD5DACE489BB4E9807AD4564275"><enum>(A)</enum><text>may not be used by
such institution to provide direct loans to consumers;</text>
</subparagraph><subparagraph id="HDD7FE5952CC4419CAEF49E62C5FCE694"><enum>(B)</enum><text>may be used by
such institution to help recapture a portion or all of a defaulted loan made
under the small dollar loan program of such institution; and</text>
</subparagraph><subparagraph id="H116B255B8BF64851A18242BD14EB15E8"><enum>(C)</enum><text>may be used to
designate and utilize a fiscal agent for services normally provided by such an
agent.</text>
</subparagraph></paragraph><paragraph id="HC21D0FC85B94417EB6A17C9C03983498"><enum>(4)</enum><header>Technical
assistance grants</header><text>The Fund shall make technical assistance grants
to community development financial institutions or any partnership between or
among such institutions to support and maintain a small dollar loan program.
Any grant amounts received under this paragraph may be used for technology,
staff support, and other costs associated with establishing a small dollar loan
program.</text>
</paragraph></subsection><subsection id="H4AAC43AE567D41ADBD175BBA0D7DD265"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H36BB127FEE57464DA38C97C9600956A6"><enum>(1)</enum><text>the term
<term>consumer reporting agency that compiles and maintains files on consumers
on a nationwide basis</term> has the same meaning given such term in section
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); and</text>
</paragraph><paragraph id="H56D420DE0A794C8EB4C466DAB877CD81"><enum>(2)</enum><text>the term
<term>small dollar loan program</term> means a loan program wherein a community
development financial institution or any partnership between or among such
institutions offers loans to consumers that—</text>
<subparagraph id="H17EAACCFC3344E748E8C1CDE2585232D"><enum>(A)</enum><text>are made in
amounts not exceeding $2,500;</text>
</subparagraph><subparagraph id="H3C5AF22E13F64A8BB9F24D850D7385CA"><enum>(B)</enum><text>must be repaid in
installments;</text>
</subparagraph><subparagraph id="H412EF57D9B9743B3820559338472203D"><enum>(C)</enum><text>have no
pre-payment penalty;</text>
</subparagraph><subparagraph id="H838F7BE495B64353ADFFF69F3550C406"><enum>(D)</enum><text>the institution
has to report payments regarding the loan to at least 1 of the consumer
reporting agencies that compiles and maintains files on consumers on a
nationwide basis; and</text>
</subparagraph><subparagraph id="HC19C087AFE014932A8210507E96629E2"><enum>(E)</enum><text>meet any other
affordability requirements as may be established by the
Administrator.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8E5B736C90084EFEA402F77E3BAE55A5"><enum>1207.</enum><header>Procedural
provisions</header><text display-inline="no-display-inline">An eligible entity
desiring to participate in a program or obtain a grant under this title shall
submit an application to the Secretary, in such form and containing such
information as the Secretary may require.</text>
</section><section id="HAD5AF460615446FAB98808940D994BF0"><enum>1208.</enum><header>Authorization
of appropriations</header>
<subsection id="HEB28A9F283FD443FA9239220583855D9"><enum>(a)</enum><header>Authorization to
the Secretary</header><text>There are authorized to be appropriated to the
Secretary, such sums as are necessary to both administer and fund the programs
and projects authorized by this title, to remain available until
expended.</text>
</subsection><subsection id="H2C6DF17014BB4EA4AFD4409D0E75B059"><enum>(b)</enum><header>Authorization to
the fund</header><text>There is authorized to be appropriated to the Fund for
each fiscal year beginning in fiscal year 2010, an amount equal to the amount
of the administrative costs of the Fund for the operation of the grant program
established under this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H626DA6863EC542F88E3C0EA49C51C8AF" section-type="subsequent-section"><enum>1209.</enum><header>Regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="H7B9A316AB807457291BE5B0A267F1151"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary is
authorized to promulgate regulations to implement and administer the grant
programs and undertakings authorized by this title.</text>
</subsection><subsection id="H0C9DEF41F25142C1B8AE358C97566418"><enum>(b)</enum><header>Regulatory
authority</header><text>Regulations prescribed under this section may contain
such classifications, differentiations, or other provisions, and may provide
for such adjustments and exceptions for any class of grant programs,
undertakings, or eligible entities, as, in the judgment of the Secretary, are
necessary or proper to effectuate the purposes of this title, to prevent
circumvention or evasion of this title, or to facilitate compliance with this
title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H8D061B9352CE41EEA4C927E2AFDAAE29" section-type="subsequent-section"><enum>1210.</enum><header>Evaluation and
reports to Congress</header><text display-inline="no-display-inline">For each
fiscal year in which a program or project is carried out under this title, the
Secretary shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives containing a description of the activities funded, amounts
distributed, and measurable results, as appropriate and available.</text>
</section><enum>XIII</enum><header>Pay It Back
Act</header>
<section id="HF96CE53339E9407FB987865417A2F48D"><enum>1301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Pay It Back
Act</short-title></quote>.</text>
</section><section id="H95821D599D0F4DF6AC1A05B4D39B9C52"><enum>1302.</enum><header>Amendment to
reduce TARP authorization</header><text display-inline="no-display-inline">Section 115(a) of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5225(a)) is amended—</text>
<paragraph id="H3D9CE46ADA8E4BFEB1F4D28D83CE9705"><enum>(1)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H31A002A639834F549DE03E6D9D0D98DB"><enum>(A)</enum><text>by striking
<quote>, $700,000,000,000, as such amount is reduced by $1,259,000,000, as such
amount is reduced by $1,244,000,000</quote> and inserting
<quote>$475,000,000,000</quote>; and</text>
</subparagraph><subparagraph id="HC621D9E3C59C4FCB93C1CE21FA339E50"><enum>(B)</enum><text>by striking
<quote>outstanding at any one time</quote>; and</text>
</subparagraph></paragraph><paragraph id="H8A79DA25F088497D830B2912D5A09E8E"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H80A5BCDA909E42F2BB7472A87CF6696C" style="OLC">
<paragraph id="HB54848D756F94E6AB601D9F1DF7E0B32"><enum>(4)</enum><text>For purposes of
this subsection, the amount of authority considered to be exercised by the
Secretary shall not be reduced by—</text>
<subparagraph id="H2B6677577BE741A5B6CDCEA2FE4AC3F8"><enum>(A)</enum><text>any amounts
received by the Secretary before, on, or after the date of enactment of the Pay
It Back Act from repayment of the principal of financial assistance by an
entity that has received financial assistance under the TARP or any other
program enacted by the Secretary under the authorities granted to the Secretary
under this Act;</text>
</subparagraph><subparagraph id="H89B50096B9514647AFA12FEDEDEB7544"><enum>(B)</enum><text>any amounts
committed for any guarantees pursuant to the TARP that became or become
uncommitted; or</text>
</subparagraph><subparagraph id="H90E1FE13F7EC444FB8659658CBCF4AA1"><enum>(C)</enum><text>any losses
realized by the Secretary.</text>
</subparagraph></paragraph><paragraph id="HA330BCF4AF7543D4BCAF454AE0DBBBD2"><enum>(5)</enum><text>No authority under
this Act may be used to incur any obligation for a program or initiative that
was not initiated prior to June 25,
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HCDC30B4B61684435B7F3CDE902B44B00"><enum>1303.</enum><header>Report</header><text display-inline="no-display-inline">Section 106 of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5216) is amended by inserting at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HCFC3F7D79E44400CAD22310502915F2A" style="OLC">
<subsection id="HACA37F8D82DA438990E1F81787CD5B7F"><enum>(f)</enum><header>Report</header><text>The
Secretary of the Treasury shall report to Congress every 6 months on amounts
received and transferred to the general fund under subsection
(d).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H275295F5A38D4F4E8C420C6BF37B01E4"><enum>1304.</enum><header>Amendments to
Housing and Economic Recovery Act of 2008</header>
<subsection id="H179AA8B0BE364A418E36AFC480CE3B93"><enum>(a)</enum><header>Sale of Fannie
Mae obligations and securities by the Treasury; deficit
reduction</header><text>Section 304(g)(2) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1719(g)(2)) is amended—</text>
<paragraph id="H0DEEEEF8B1FD46C7821F2508E45FDF65"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</paragraph><paragraph id="HBDF1342F4FC84816B890A71A91026211"><enum>(2)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5028B9B33873485F865B5BC0DFD7BB0A" style="OLC">
<subparagraph id="H4DA8EA67242343E9ACDD6DFDE446033C"><enum>(C)</enum><header>Deficit
reduction</header><text>The Secretary of the Treasury shall deposit in the
General Fund of the Treasury any amounts received by the Secretary from the
sale of any obligation acquired by the Secretary under this subsection, where
such amounts shall be—</text>
<clause id="H1ED7573908304ABD93493EC30600B46B"><enum>(i)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</clause><clause id="HC64CD7CA555A42DAB8AD4A2EC973AF2C"><enum>(ii)</enum><text>prohibited from
use as an offset for other spending increases or revenue
reductions.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD815799A80E94CB4B8C58FD281AC359C"><enum>(b)</enum><header>Sale of Freddie
Mac obligations and securities by the Treasury; deficit
reduction</header><text>Section 306(l)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1455(l)(2)) is amended—</text>
<paragraph id="H3AB4D0976E894B6F95892F200A8CEC4E"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</paragraph><paragraph id="H6C3FBC58557A44A5ACBF2CA094985259"><enum>(2)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="H3653824335C646479EF97D0943514D41" style="OLC">
<subparagraph id="HA142198C95C94EAEB8822CE00F9B9233"><enum>(C)</enum><header>Deficit
reduction</header><text>The Secretary of the Treasury shall deposit in the
General Fund of the Treasury any amounts received by the Secretary from the
sale of any obligation acquired by the Secretary under this subsection, where
such amounts shall be—</text>
<clause id="H564075133208498588CC618C7EAC1D62"><enum>(i)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</clause><clause id="H9867D3B9F572424DB079F7964B8B8E39"><enum>(ii)</enum><text>prohibited from
use as an offset for other spending increases or revenue
reductions.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H094BE09A9D5B4B688A90F6AAB7D5C8EF"><enum>(c)</enum><header>Sale of Federal
Home Loan Banks obligations by the Treasury; deficit
reduction</header><text>Section 11(l)(2) of the Federal Home Loan Bank Act (12
U.S.C. 1431(l)(2)) is amended—</text>
<paragraph id="HB9B52C44EBCD48ED8A6F551AEE1E0AAE"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</paragraph><paragraph id="HF6C2278F15C64758AFEE84B4EFF544D1"><enum>(2)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="H3D6D9C9007584A4BAE05C19FD11F10C0" style="OLC">
<subparagraph id="HCAF893CCDC2A4308BFFC00D846B18D93"><enum>(C)</enum><header>Deficit
reduction</header><text>The Secretary of the Treasury shall deposit in the
General Fund of the Treasury any amounts received by the Secretary from the
sale of any obligation acquired by the Secretary under this subsection, where
such amounts shall be—</text>
<clause id="HCAD2457125524E19AD20C2C06D3D7B89"><enum>(i)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</clause><clause id="H006123F53C444DEBA7C45087657C891C"><enum>(ii)</enum><text>prohibited from
use as an offset for other spending increases or revenue
reductions.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H828BDA49B64F4F468B339A4C08E29F4B"><enum>(d)</enum><header>Repayment of
fees</header><text>Any periodic commitment fee or any other fee or assessment
paid by the Federal National Mortgage Association or Federal Home Loan Mortgage
Corporation to the Secretary of the Treasury as a result of any preferred stock
purchase agreement, mortgage-backed security purchase program, or any other
program or activity authorized or carried out pursuant to the authorities
granted to the Secretary of the Treasury under section 1117 of the Housing and
Economic Recovery Act of 2008 (Public Law 110–289; 122 Stat. 2683), including
any fee agreed to by contract between the Secretary and the Association or
Corporation, shall be deposited in the General Fund of the Treasury where such
amounts shall be—</text>
<paragraph id="H0D056A2956D04A1EA44478A7FE9B2BA8"><enum>(1)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</paragraph><paragraph id="HFED8E02340A942FFA20D4AE3E8422E28"><enum>(2)</enum><text>prohibited from
use as an offset for other spending increases or revenue reductions.</text>
</paragraph></subsection></section><section id="H5F467CE6671C49E3AEBDAF070F7F7C13"><enum>1305.</enum><header>Federal
Housing Finance Agency report</header><text display-inline="no-display-inline">The Director of the Federal Housing Finance
Agency shall submit to Congress a report on the plans of the Agency to continue
to support and maintain the Nation's vital housing industry, while at the same
time guaranteeing that the American taxpayer will not suffer unnecessary
losses.</text>
</section><section id="HEB3F1B94492E4833998BBD0103EE6659"><enum>1306.</enum><header>Repayment of
unobligated ARRA funds</header>
<subsection id="HE6668A85274C40DAA3F9CF1B1DECF4E6"><enum>(a)</enum><header>Rejection of
ARRA funds by State</header><text>Section 1607 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 305) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H72D0D62F9B434F7DBAA06628ECF6A78D" style="OLC">
<subsection id="H64F90024065E4B3EAE48F72D7B9C98DE"><enum>(d)</enum><header>Statewide
rejection of funds</header><text>If funds provided to any State in any division
of this Act are not accepted for use by the Governor of the State pursuant to
subsection (a) or by the State legislature pursuant to subsection (b), then all
such funds shall be—</text>
<paragraph id="H4F2C78EE991F4590BB01F803370885B7"><enum>(1)</enum><text>rescinded;
and</text>
</paragraph><paragraph id="H6FD8E7AC9B5B4817AC14B793DBEEBF4C"><enum>(2)</enum><text>deposited in the
General Fund of the Treasury where such amounts shall be—</text>
<subparagraph id="H15B4C5F883024AB29A8D13FB7FB08E22"><enum>(A)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7F69D1F6559B4572B55B8DD46422EF2E"><enum>(B)</enum><text>prohibited from
use as an offset for other spending increases or revenue
reductions.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8826AAC262C94977AC3DCF0986A57270"><enum>(b)</enum><header>Withdrawal or
recapture of unobligated funds</header><text>Title XVI of the American Recovery
and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA883A1AE7713452485867095918B1901" style="OLC">
<section id="HD8FF2628C2F94DF8935F9D2A0D8911CE"><enum>1613.</enum><header>Withdrawal or
recapture of unobligated funds</header><text display-inline="no-display-inline">Notwithstanding any other provision of this
Act, if the head of any executive agency withdraws or recaptures for any reason
funds appropriated or otherwise made available under this division, and such
funds have not been obligated by a State to a local government or for a
specific project, such recaptured funds shall be—</text>
<paragraph id="H1F0B4C0E78A94A16B58BDDA090F5C845"><enum>(1)</enum><text display-inline="yes-display-inline">rescinded; and</text>
</paragraph><paragraph id="H5F736E76F0304B9EAD9D5134075DFA0C"><enum>(2)</enum><text display-inline="yes-display-inline">deposited in the General Fund of the
Treasury where such amounts shall be—</text>
<subparagraph id="HB2E756F17D6E4BAAB7A92489466ACD4E"><enum>(A)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD8DB42DAD94456BBABB47DA9049C547"><enum>(B)</enum><text display-inline="yes-display-inline">prohibited from use as an offset for other
spending increases or revenue
reductions.</text>
</subparagraph></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HABBC39844FD0479783507CD1AFA40944"><enum>(c)</enum><header>Return of
unobligated funds by end of 2012</header><text>Section 1603 of the American
Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is
amended by—</text>
<paragraph id="H59E971DA540943C998DA0C48C9EB60A8"><enum>(1)</enum><text>striking
<quote>All funds</quote> and inserting <quote>(a)
<header-in-text level="subsection" style="OLC">In general</header-in-text>.—All
funds</quote>; and</text>
</paragraph><paragraph id="H42DE6C7E38354E279F0C27C46EF2FDBF"><enum>(2)</enum><text>adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="HA7E4F981BA1D4BC49DD06541CF5A1D94" style="OLC">
<subsection id="H5328E0C6CB6D411B868E03A55B4992F8"><enum>(b)</enum><header>Repayment of
unobligated funds</header><text>Any discretionary appropriations made available
in this division that have not been obligated as of December 31, 2012, are
hereby rescinded, and such amounts shall be deposited in the General Fund of
the Treasury where such amounts shall be—</text>
<paragraph id="H5F1B40583EF34C8C9E782DCA73967149"><enum>(1)</enum><text>dedicated for the
sole purpose of deficit reduction; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE09473222C1541BFA0887C751043E98E"><enum>(2)</enum><text>prohibited from
use as an offset for other spending increases or revenue reductions.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2CD989C4AF074F17B55101DE9789CD28"><enum>(c)</enum><header>Presidential
waiver authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA362FD00AA8A4C1789BC5FFDEB591130"><enum>(1)</enum><header>In
general</header><text>The President may waive the requirements under subsection
(b), if the President determines that it is not in the best interest of the
Nation to rescind a specific unobligated amount after December 31, 2012.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H84B07F6383914FB2A2CAA05DC8596EE8"><enum>(2)</enum><header>Requests</header><text>The
head of an executive agency may also apply to the President for a waiver from
the requirements under subsection
(b).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>XIV</enum><header>Mortgage Reform
and Anti-Predatory Lending Act</header>
<section id="H5DA255DDFFBA4816A0A1558392265105" section-type="subsequent-section"><enum>1400.</enum><header>Short title;
designation as enumerated consumer law</header>
<subsection id="H37033CBEE776423799EF9A97577A1977"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This title may be cited
as the <quote><short-title>Mortgage Reform and
Anti-Predatory Lending Act</short-title></quote>.</text>
</subsection><subsection id="H044CEF7E596E4D0181857FE00927D816"><enum>(b)</enum><header>Designation as
enumerated consumer law under the purview of the Bureau of Consumer Financial
Protection</header><text>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 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.</text>
</subsection><subsection id="H540D24AEF17F4056BD883560933C0D6A"><enum>(c)</enum><header>Regulations;
effective date</header>
<paragraph id="H5C09C6D298B1454F8DB6472A0640F1AC"><enum>(1)</enum><header>Regulations</header><text>The
regulations required to be prescribed under this title or the amendments made
by this title shall—</text>
<subparagraph id="H28C57D64185C47C0B0C9A0DD42D2F796"><enum>(A)</enum><text>be prescribed in
final form before the end of the 18-month period beginning on the designated
transfer date; and</text>
</subparagraph><subparagraph id="H6E06B6D8F90E4B85B5FF63FC2F479368"><enum>(B)</enum><text>take effect not
later than 12 months after the date of issuance of the regulations in final
form.</text>
</subparagraph></paragraph><paragraph id="H325F621E19544F5C9167F248FA4B45C8"><enum>(2)</enum><header>Effective date
established by rule</header><text>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.</text>
</paragraph><paragraph id="H9311E12D90284B898C01DB2C175BB732"><enum>(3)</enum><header>Effective
date</header><text>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.</text>
</paragraph></subsection></section><subtitle id="H5787307EFAA94A79AD1F6EF2FC9D6EEF"><enum>A</enum><header>Residential
Mortgage Loan Origination Standards</header>
<section id="H1307DE8BF62E42A1B09FEB9B8D9656CE" section-type="subsequent-section"><enum>1401.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 103 of the Truth in Lending Act (15
U.S.C. 1602) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC914C0C216E347BB8ABED9728E26BBDC" style="USC">
<subsection id="HCA5E480571F34A639CE4DC550AB3DC48"><enum>(cc)</enum><header>Definitions
relating to mortgage origination and residential mortgage loans</header>
<paragraph id="H6762CA88DE90489DAFCD49B2BC9A839E"><enum>(1)</enum><header>Commission</header><text>Unless
otherwise specified, the term <term>Commission</term> means the Federal Trade
Commission.</text>
</paragraph><paragraph commented="no" id="H445979F69DD543D4A7245A017B287F8A"><enum>(2)</enum><header>Mortgage
originator</header><text>The term <term>mortgage originator</term>—</text>
<subparagraph commented="no" id="H9C51E69442924A9CB86D9817345E5C14"><enum>(A)</enum><text display-inline="yes-display-inline">means any person who, for direct or
indirect compensation or gain, or in the expectation of direct or indirect
compensation or gain—</text>
<clause commented="no" id="H40DB6F10999D4E95A16456807EA6D3B8"><enum>(i)</enum><text>takes a
residential mortgage loan application;</text>
</clause><clause commented="no" id="H744FAE8286FC4C99A8FCF1EA09696262"><enum>(ii)</enum><text>assists a
consumer in obtaining or applying to obtain a residential mortgage loan;
or</text>
</clause><clause commented="no" id="HEEB55A466F32470580EC5D0FCBC12880"><enum>(iii)</enum><text display-inline="yes-display-inline">offers or negotiates terms of a residential
mortgage loan;</text>
</clause></subparagraph><subparagraph commented="no" id="H2A7A7FFFD697436FADFE1C2AE354A9D4"><enum>(B)</enum><text display-inline="yes-display-inline">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);</text>
</subparagraph><subparagraph commented="no" id="H5FA54D5C68C449B39A1125CA9CEA0AA4"><enum>(C)</enum><text display-inline="yes-display-inline">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) an employee of a retailer of manufactured homes who
is not described in clause (i) or (iii) of subparagraph (A) and who does not
advise a consumer on loan terms (including rates, fees, and other
costs);</text>
</subparagraph><subparagraph id="H0A5CAC595CA4408A90EE9D692D8FE995"><enum>(D)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="H3B5C3212A902465F88435A54432895F7"><enum>(E)</enum><text display-inline="yes-display-inline">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—</text>
<clause id="H331FCEAC53FE47FAA561A233676CA6B7"><enum>(i)</enum><text>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;</text>
</clause><clause id="HB6CAC1DABA9A4E24BB1267586E771812"><enum>(ii)</enum><text>is fully
amortizing;</text>
</clause><clause id="H05DBB2692D01463A9F0328A76D638D92"><enum>(iii)</enum><text>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;</text>
</clause><clause id="H1BFD050DC26249C18D5B62B5A1642A56"><enum>(iv)</enum><text>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</text>
</clause><clause id="H935E5FE0E68C4EE683CB0EE147878ACB"><enum>(v)</enum><text>meets any other
criteria the Board may prescribe;</text>
</clause></subparagraph><subparagraph id="HC14E64FCE804413784B340120E565FA2"><enum>(F)</enum><text display-inline="yes-display-inline">does not include the creditor (except the
creditor in a table-funded transaction) under paragraph (1), (2), or (4) of
section 129B(c); and</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HC77D555C5A9148DEBA3F5CEC14915933"><enum>(G)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H3D60E4EE4F9E4821B6CEB8DAC03389F6"><enum>(3)</enum><header>Nationwide
Mortgage Licensing System and Registry</header><text display-inline="yes-display-inline">The term <term>Nationwide Mortgage
Licensing System and Registry</term> has the same meaning as in the Secure and
Fair Enforcement for Mortgage Licensing Act of 2008.</text>
</paragraph><paragraph commented="no" id="H4F8E9A71D993440D893BACF9508F6FD0"><enum>(4)</enum><header>Other
definitions relating to mortgage originator</header><text display-inline="yes-display-inline">For purposes of this subsection, a person
<term>assists a consumer in obtaining or applying to obtain a residential
mortgage loan</term> 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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA1C4AF6635AC470AAB3D58F5F4AC55A5"><enum>(5)</enum><header>Residential
mortgage loan</header><text display-inline="yes-display-inline">The term
<term>residential mortgage loan</term> 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.</text>
</paragraph><paragraph id="H966DD29207E24C92864B804D9020BD89"><enum>(6)</enum><header>Secretary</header><text>The
term <term>Secretary</term>, when used in connection with any transaction or
person involved with a residential mortgage loan, means the Secretary of
Housing and Urban Development.</text>
</paragraph><paragraph id="H38D2DB12BECF4FDCB045ECC30BF42A70"><enum>(7)</enum><header>Servicer</header><text display-inline="yes-display-inline">The term <term>servicer</term> 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)).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA219E0443F1B4D77ADEBFDF867BD3030" section-type="subsequent-section"><enum>1402.</enum><header>Residential
mortgage loan origination</header>
<subsection id="HC2CA23C1CD49420E8386A6D8320856F2"><enum>(a)</enum><header>In
general</header><text>Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended—</text>
<paragraph id="HDF9260D41E84431AB21BADE26F93D83C"><enum>(1)</enum><text>by redesignating
the 2nd of the 2 sections designated as section 129 (15 U.S.C. 1639a) (relating
to duty of servicers of residential mortgages) as section 129A; and</text>
</paragraph><paragraph id="H3434AB34EC3549AEBF42010AB294ED7C"><enum>(2)</enum><text>by inserting after
section 129A (as so redesignated) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H695C95F1FB1946EDA6517C71A47A1132" style="USC">
<section id="HC55498EFD9514333A58D9908C643364E"><enum>129B.</enum><header>Residential
mortgage loan origination</header>
<subsection id="H543FE3D5D3CB4A3F960F804B2F87D7DE"><enum>(a)</enum><header>Finding and
purpose</header>
<paragraph id="H7BC7B013E12B4D219AB02DBE911AA958"><enum>(1)</enum><header>Finding</header><text>The
Congress finds that economic stabilization would be enhanced by the protection,
limitation, and regulation of the terms of residential mortgage credit and the
practices related to such credit, while ensuring that responsible, affordable
mortgage credit remains available to consumers.</text>
</paragraph><paragraph id="H668458C32594411EA0E7EE15E373A5F6"><enum>(2)</enum><header>Purpose</header><text>It
is the purpose of this section and section 129C to assure that consumers are
offered and receive residential mortgage loans on terms that reasonably reflect
their ability to repay the loans and that are understandable and not unfair,
deceptive or abusive.</text>
</paragraph></subsection><subsection id="H4663972E66994001A0C1767A191063FF"><enum>(b)</enum><header>Duty of
care</header>
<paragraph id="H50DAE6FE8DE8417FA7B5891E608189C6"><enum>(1)</enum><header>Standard</header><text display-inline="yes-display-inline">Subject to regulations prescribed under
this subsection, each mortgage originator shall, in addition to the duties
imposed by otherwise applicable provisions of State or Federal law—</text>
<subparagraph id="H7ACFA235CDA7428DBFDB8AF15D27C7F4"><enum>(A)</enum><text display-inline="yes-display-inline">be qualified and, when required, registered
and licensed as a mortgage originator in accordance with applicable State or
Federal law, including the Secure and Fair Enforcement for Mortgage Licensing
Act of 2008; and</text>
</subparagraph><subparagraph commented="no" id="H61FED8F822BB4FDB938A836BB7C1F902"><enum>(B)</enum><text display-inline="yes-display-inline">include on all loan documents any unique
identifier of the mortgage originator provided by the Nationwide Mortgage
Licensing System and Registry.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H25521937F8F24D86BE250DD80C16D220"><enum>(2)</enum><header>Compliance
procedures required</header><text display-inline="yes-display-inline">The Board
shall prescribe regulations requiring depository institutions to establish and
maintain procedures reasonably designed to assure and monitor the compliance of
such depository institutions, the subsidiaries of such institutions, and the
employees of such institutions or subsidiaries with the requirements of this
section and the registration procedures established under section 1507 of the
Secure and Fair Enforcement for Mortgage Licensing Act of
2008.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA889A52361F34C4A99578B65E84A0D40"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 2 of the Truth in
Lending Act is amended by inserting after the item relating to section 129 the
following new items:</text>
<quoted-block display-inline="no-display-inline" id="H6A283D6FA5CB44C0AE78A39D593074EA" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">129A. Fiduciary duty of servicers of
pooled residential mortgages.</toc-entry>
<toc-entry level="section">129B. Residential mortgage loan
origination.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD7A575A13C1048578097C53E22D20934"><enum>1403.</enum><header>Prohibition on
steering incentives</header><text display-inline="no-display-inline">Section
129B of the Truth in Lending Act (as added by section 1402(a)) is amended by
inserting after subsection (b) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H07843ACC5C2B4B45A25B12327406DC93" style="USC">
<subsection id="H6E9F14A2CA4348B7826907D727F1FAE4"><enum>(c)</enum><header>Prohibition on
steering incentives</header>
<paragraph commented="no" id="HD2E70F58E8ED41E282CD0F45C0F8DD16"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For any residential
mortgage loan, no mortgage originator shall receive from any person and no
person shall pay to a mortgage originator, directly or indirectly, compensation
that varies based on the terms of the loan (other than the amount of the
principal).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H5B4DFF303A594D3F984E809698056D55"><enum>(2)</enum><header>Restructuring of
financing origination fee</header>
<subparagraph id="HBD825F3F88894217BE0605BB64143143"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For any mortgage
loan, a mortgage originator may not receive from any person other than the
consumer and no person, other than the consumer, who knows or has reason to
know that a consumer has directly compensated or will directly compensate a
mortgage originator may pay a mortgage originator any origination fee or charge
except bona fide third party charges not retained by the creditor, mortgage
originator, or an affiliate of the creditor or mortgage originator .</text>
</subparagraph><subparagraph id="H3E5789A3DE82423A8B5447563E71E697"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Notwithstanding subparagraph (A), a
mortgage originator may receive from a person other than the consumer an
origination fee or charge, and a person other than the consumer may pay a
mortgage originator an origination fee or charge, if—</text>
<clause id="H0CBC415C18784D59B16DC4909802F10D"><enum>(i)</enum><text>the mortgage
originator does not receive any compensation directly from the consumer;
and</text>
</clause><clause id="H5071EEDC17374F2B8012721C40619CB1"><enum>(ii)</enum><text display-inline="yes-display-inline">the consumer does not make an upfront
payment of discount points, origination points, or fees, however denominated
(other than bona fide third party charges not retained by the mortgage
originator, creditor, or an affiliate of the creditor or originator), except
that the Board may, by rule, waive or provide exemptions to this clause if the
Board determines that such waiver or exemption is in the interest of consumers
and in the public interest.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H824544B176654AC7AA254E4FB5208C98"><enum>(3)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Board shall prescribe regulations to
prohibit—</text>
<subparagraph id="H37B9E3B565F0427CB03DA337F3B60E34"><enum>(A)</enum><text>mortgage
originators from steering any consumer to a residential mortgage loan
that—</text>
<clause commented="no" id="HB193D71382ED461CAE892A359ECAA716"><enum>(i)</enum><text display-inline="yes-display-inline">the consumer lacks a reasonable ability to
repay (in accordance with regulations prescribed under section 129C(a));
or</text>
</clause><clause commented="no" id="H2E88E6FE8B76404797EBB565EABF344E"><enum>(ii)</enum><text>has predatory
characteristics or effects (such as equity stripping, excessive fees, or
abusive terms);</text>
</clause></subparagraph><subparagraph commented="no" id="HF41922AB48B443F1BC61390F0E302A27"><enum>(B)</enum><text display-inline="yes-display-inline">mortgage originators from steering any
consumer from a residential mortgage loan for which the consumer is qualified
that is a qualified mortgage (as defined in section 129C(b)(2)) to a
residential mortgage loan that is not a qualified mortgage;</text>
</subparagraph><subparagraph commented="no" id="HF53E5D39EF954EB5BC832388D91B081F"><enum>(C)</enum><text display-inline="yes-display-inline">abusive or unfair lending practices that
promote disparities among consumers of equal credit worthiness but of different
race, ethnicity, gender, or age; and</text>
</subparagraph><subparagraph id="H08A65E01640E462AB049B19E64F40008"><enum>(D)</enum><text display-inline="yes-display-inline">mortgage originators from—</text>
<clause id="H07D0BC91D3584F698B140BEA5138BA08"><enum>(i)</enum><text display-inline="yes-display-inline">mischaracterizing the credit history of a
consumer or the residential mortgage loans available to a consumer;</text>
</clause><clause id="H8967E6B968144A4089AE83B3C9527CC4"><enum>(ii)</enum><text display-inline="yes-display-inline">mischaracterizing or suborning the
mischaracterization of the appraised value of the property securing the
extension of credit; or</text>
</clause><clause id="H276D191424A549968D974C78DD07C4F1"><enum>(iii)</enum><text display-inline="yes-display-inline">if unable to suggest, offer, or recommend
to a consumer a loan that is not more expensive than a loan for which the
consumer qualifies, discouraging a consumer from seeking a residential mortgage
loan secured by a consumer’s principal dwelling from another mortgage
originator.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H3A33A8B64EEF4262AC76696EDBE7CBEC"><enum>(4)</enum><header>Rules of
construction</header><text>No provision of this subsection shall be construed
as—</text>
<subparagraph id="H06D1F010F64D4BD5B4159B9530D72557"><enum>(A)</enum><text display-inline="yes-display-inline">permitting any yield spread premium or
other similar compensation that would, for any residential mortgage loan,
permit the total amount of direct and indirect compensation from all sources
permitted to a mortgage originator to vary based on the terms of the loan
(other than the amount of the principal);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8EF6A5249A684067B8E6FBB034BC907D"><enum>(B)</enum><text display-inline="yes-display-inline">limiting or affecting the amount of
compensation received by a creditor upon the sale of a consummated loan to a
subsequent purchaser;</text>
</subparagraph><subparagraph commented="no" id="H96B118FA61F9423085209B01FB5C3116"><enum>(C)</enum><text display-inline="yes-display-inline">restricting a consumer’s ability to
finance, at the option of the consumer, including through principal or rate,
any origination fees or costs permitted under this subsection, or the mortgage
originator’s right to receive such fees or costs (including compensation) from
any person, subject to paragraph (2)(B), so long as such fees or costs do not
vary based on the terms of the loan (other than the amount of the principal) or
the consumer’s decision about whether to finance such fees or costs; or</text>
</subparagraph><subparagraph commented="no" id="H4932C371A5174FAB8C8FAE0EEF1578C9"><enum>(D)</enum><text>prohibiting
incentive payments to a mortgage originator based on the number of residential
mortgage loans originated within a specified period of
time.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H667B662E49B64816A23514BBC4B85898"><enum>1404.</enum><header>Liability</header><text display-inline="no-display-inline">Section 129B of the Truth in Lending Act is
amended by inserting after subsection (c) (as added by section 1403) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H16B4F87B742241C4AE41295966333D39" style="OLC">
<subsection id="H4115133C6CF449C1BC931CC8290422DA"><enum>(d)</enum><header>Liability for
violations</header>
<paragraph id="H4EC926A6A4FE492582A8A229BA2EC1F7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
providing a cause of action for any failure by a mortgage originator, other
than a creditor, to comply with any requirement imposed under this section and
any regulation prescribed under this section, section 130 shall be applied with
respect to any such failure by substituting <term>mortgage originator</term>
for <term>creditor</term> each place such term appears in each such
subsection.</text>
</paragraph><paragraph id="H712DAAA2C66D4FCEA733D0534F7D047B"><enum>(2)</enum><header>Maximum</header><text display-inline="yes-display-inline">The maximum amount of any liability of a
mortgage originator under paragraph (1) to a consumer for any violation of this
section shall not exceed the greater of actual damages or an amount equal to 3
times the total amount of direct and indirect compensation or gain accruing to
the mortgage originator in connection with the residential mortgage loan
involved in the violation, plus the costs to the consumer of the action,
including a reasonable attorney’s
fee.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA089639A66D746769230E8D8AA265858"><enum>1405.</enum><header>Regulations</header>
<subsection id="H197D9E42D6C641569A6C07009101DCC0"><enum>(a)</enum><header>Discretionary
regulatory authority</header><text display-inline="yes-display-inline">Section
129B of the Truth in Lending Act is amended by inserting after subsection (d)
(as added by section 1404) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HFBA89D6FF8C045B79E67252B769F0ED8" style="OLC">
<subsection id="H6F0F319B4AAD4158980ECCD0DB170A2B"><enum>(e)</enum><header>Discretionary
regulatory authority</header>
<paragraph id="HF34831F2B06B496B9BB60F9CF77D26F3"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall, by
regulations, prohibit or condition terms, acts or practices relating to
residential mortgage loans that the Board finds to be abusive, unfair,
deceptive, predatory, necessary or proper to ensure that responsible,
affordable mortgage credit remains available to consumers in a manner
consistent with the purposes of this section and section 129C, necessary or
proper to effectuate the purposes of this section and section 129C, to prevent
circumvention or evasion thereof, or to facilitate compliance with such
sections, or are not in the interest of the borrower.</text>
</paragraph><paragraph id="H7DA3BD0A4AB14545B2EB0A20E1875D7A"><enum>(2)</enum><header>Application</header><text>The
regulations prescribed under paragraph (1) shall be applicable to all
residential mortgage loans and shall be applied in the same manner as
regulations prescribed under section 105.</text>
</paragraph></subsection><subsection id="HE187156889CC49288575F3E8C0C3E705"><enum>(f)</enum><text>Section 129B and
any regulations promulgated thereunder do not apply to an extension of credit
relating to a plan described in section 101(53D) of title 11, United States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HBE31AF2AAEFC49E085544B65D4981FCE"><enum>(b)</enum><header>Disclosures</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
title, in order to improve consumer awareness and understanding of transactions
involving residential mortgage loans through the use of disclosures, the Board
may, by rule, exempt from or modify disclosure requirements, in whole or in
part, for any class of residential mortgage loans if the Board determines that
such exemption or modification is in the interest of consumers and in the
public interest.</text>
</subsection></section><section id="H1D4DADB8BEDC4230BC2A922BC259C08B"><enum>1406.</enum><header>Study of
shared appreciation mortgages</header>
<subsection id="H8D0F1570679E4A84BE640870E37DF3CB"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development, in consultation with the Secretary of the Treasury and other
relevant agencies, shall conduct a comprehensive study to determine prudent
statutory and regulatory requirements sufficient to provide for the widespread
use of shared appreciation mortgages to strengthen local housing markets,
provide new opportunities for affordable homeownership, and enable homeowners
at risk of foreclosure to refinance or modify their mortgages.</text>
</subsection><subsection id="H08641B47D7BE4F75AB8A53E9C780119B"><enum>(b)</enum><header>Report</header><text>Not
later than the expiration of the 6-month period beginning on the date of the
enactment of this Act, the Secretary of Housing and Urban Development shall
submit a report to the Congress on the results of the study, which shall
include recommendations for the regulatory and legislative requirements
referred to in subsection (a).</text>
</subsection></section></subtitle><subtitle id="H1234C94633574AE697464B8798095E52"><enum>B</enum><header>Minimum Standards
For Mortgages</header>
<section id="H4E788C66DB8A46E1A1F06C4E6213C943"><enum>1411.</enum><header>Ability to
repay</header>
<subsection id="HFEE226BD61A8401BA77B3EAD8D2BC675"><enum>(a)</enum><header>In
general</header>
<paragraph id="HAAEFCF63CC06432480118BB6A7260F41"><enum>(1)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">No regulation,
order, or guidance issued by the Bureau under this title shall be construed as
requiring a depository institution to apply mortgage underwriting standards
that do not meet the minimum underwriting standards required by the appropriate
prudential regulator of the depository institution.</text>
</paragraph><paragraph id="HC76B94F15BE645429F19B838E0710CAD"><enum>(2)</enum><header>Amendment to
truth in lending act</header><text>Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129B (as added by
section 1402(a)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H2DA1CAE6C3B6490CBA5DF59138289962" style="USC">
<section id="H56E4E8321267472D9333EE5F885EEBF7"><enum>129C.</enum><header>Minimum
standards for residential mortgage loans</header>
<subsection id="HA646F500B87B46A9B5750B146EFEF677"><enum>(a)</enum><header>Ability To
repay</header>
<paragraph id="H1BEB2B8DBC704859A8D7B0474141AD3C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In accordance with
regulations prescribed by the Board, no creditor may make a residential
mortgage loan unless the creditor makes a reasonable and good faith
determination based on verified and documented information that, at the time
the loan is consummated, the consumer has a reasonable ability to repay the
loan, according to its terms, and all applicable taxes, insurance (including
mortgage guarantee insurance), and assessments.</text>
</paragraph><paragraph id="HE02EA4E06DE740C0AE2BB51E78F43DEC"><enum>(2)</enum><header>Multiple
loans</header><text display-inline="yes-display-inline">If the creditor knows,
or has reason to know, that 1 or more residential mortgage loans secured by the
same dwelling will be made to the same consumer, the creditor shall make a
reasonable and good faith determination, based on verified and documented
information, that the consumer has a reasonable ability to repay the combined
payments of all loans on the same dwelling according to the terms of those
loans and all applicable taxes, insurance (including mortgage guarantee
insurance), and assessments.</text>
</paragraph><paragraph id="H8BEE41F4D17E4BD89CF6ABFE1E3BAF70"><enum>(3)</enum><header>Basis for
determination</header><text display-inline="yes-display-inline">A determination
under this subsection of a consumer’s ability to repay a residential mortgage
loan shall include consideration of the consumer’s credit history, current
income, expected income the consumer is reasonably assured of receiving,
current obligations, debt-to-income ratio or the residual income the consumer
will have after paying non-mortgage debt and mortgage-related obligations,
employment status, and other financial resources other than the consumer’s
equity in the dwelling or real property that secures repayment of the loan. A
creditor shall determine the ability of the consumer to repay using a payment
schedule that fully amortizes the loan over the term of the loan.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H5616CD53AE8943EA9C1E5700720B7D9B"><enum>(4)</enum><header>Income
verification</header><text display-inline="yes-display-inline">A creditor
making a residential mortgage loan shall verify amounts of income or assets
that such creditor relies on to determine repayment ability, including expected
income or assets, by reviewing the consumer’s Internal Revenue Service Form
W–2, tax returns, payroll receipts, financial institution records, or other
third-party documents that provide reasonably reliable evidence of the
consumer’s income or assets. In order to safeguard against fraudulent
reporting, any consideration of a consumer's income history in making a
determination under this subsection shall include the verification of such
income by the use of—</text>
<subparagraph id="H5B0408E7337E440888A2A5D2489B4C16"><enum>(A)</enum><text display-inline="yes-display-inline">Internal Revenue Service transcripts of tax
returns; or</text>
</subparagraph><subparagraph id="H39E3F4B21A00468595E4DB795DB65BE5"><enum>(B)</enum><text display-inline="yes-display-inline">a method that quickly and effectively
verifies income documentation by a third party subject to rules prescribed by
the Board.</text>
</subparagraph></paragraph><paragraph id="H918B378A65BA45B6870CB671C2C037AD"><enum>(5)</enum><header>Exemption</header><text display-inline="yes-display-inline">With respect to loans made, guaranteed, or
insured by Federal departments or agencies identified in subsection
(b)(3)(B)(ii), such departments or agencies may exempt refinancings under a
streamlined refinancing from this income verification requirement as long as
the following conditions are met:</text>
<subparagraph id="H311C18C5D03642D587A0AA423F80D9F9"><enum>(A)</enum><text>The consumer is
not 30 days or more past due on the prior existing residential mortgage
loan.</text>
</subparagraph><subparagraph id="H10433AB2FDB14CF7A27D0050679E6B14"><enum>(B)</enum><text>The refinancing
does not increase the principal balance outstanding on the prior existing
residential mortgage loan, except to the extent of fees and charges allowed by
the department or agency making, guaranteeing, or insuring the
refinancing.</text>
</subparagraph><subparagraph id="H4A267B6EC55B45C7813F6A125D224ABD"><enum>(C)</enum><text>Total points and
fees (as defined in section 103(aa)(4), other than bona fide third party
charges not retained by the mortgage originator, creditor, or an affiliate of
the creditor or mortgage originator) payable in connection with the refinancing
do not exceed 3 percent of the total new loan amount.</text>
</subparagraph><subparagraph id="HEFABD1858AC84BAC9D60D03069D6E054"><enum>(D)</enum><text>The interest rate
on the refinanced loan is lower than the interest rate of the original loan,
unless the borrower is refinancing from an adjustable rate to a fixed-rate
loan, under guidelines that the department or agency shall establish for loans
they make, guarantee, or issue.</text>
</subparagraph><subparagraph id="H5857D6755786457DBF89104FA73568FC"><enum>(E)</enum><text>The refinancing is
subject to a payment schedule that will fully amortize the refinancing in
accordance with the regulations prescribed by the department or agency making,
guaranteeing, or insuring the refinancing.</text>
</subparagraph><subparagraph id="H77AC8F5E54C84701B323275E3DC19D7E"><enum>(F)</enum><text>The terms of the
refinancing do not result in a balloon payment, as defined in subsection
(b)(2)(A)(ii).</text>
</subparagraph><subparagraph id="H5285998D3E67420CB75442FF02BA73DF"><enum>(G)</enum><text>Both the
residential mortgage loan being refinanced and the refinancing satisfy all
requirements of the department or agency making, guaranteeing, or insuring the
refinancing.</text>
</subparagraph></paragraph><paragraph id="H3168D0FE83304A60A9A47572C19B598A"><enum>(6)</enum><header>Nonstandard
loans</header>
<subparagraph id="H55A26F325C414AF1B6AECF545FFAEA5B"><enum>(A)</enum><header>Variable rate
loans that defer repayment of any principal or interest</header><text display-inline="yes-display-inline">For purposes of determining, under this
subsection, a consumer’s ability to repay a variable rate residential mortgage
loan that allows or requires the consumer to defer the repayment of any
principal or interest, the creditor shall use a fully amortizing repayment
schedule.</text>
</subparagraph><subparagraph id="HBD2F818A61B04EEE9A73037D8E7AF090"><enum>(B)</enum><header>Interest-only
loans</header><text display-inline="yes-display-inline">For purposes of
determining, under this subsection, a consumer’s ability to repay a residential
mortgage loan that permits or requires the payment of interest only, the
creditor shall use the payment amount required to amortize the loan by its
final maturity.</text>
</subparagraph><subparagraph id="HE8435F939DC4402793F04117503CC341"><enum>(C)</enum><header>Calculation for
negative amortization</header><text display-inline="yes-display-inline">In
making any determination under this subsection, a creditor shall also take into
consideration any balance increase that may accrue from any negative
amortization provision.</text>
</subparagraph><subparagraph id="H99D01610FFF9459E978DDCEC2B09CE6B"><enum>(D)</enum><header>Calculation
process</header><text display-inline="yes-display-inline">For purposes of
making any determination under this subsection, a creditor shall calculate the
monthly payment amount for principal and interest on any residential mortgage
loan by assuming—</text>
<clause id="H75551D536B4449F788837DE0BF2E7A1B"><enum>(i)</enum><text>the loan proceeds
are fully disbursed on the date of the consummation of the loan;</text>
</clause><clause display-inline="no-display-inline" id="HEB8BD381826D4D67BB3E1E742748AF35"><enum>(ii)</enum><text display-inline="yes-display-inline">the loan is to be repaid in substantially
equal monthly amortizing payments for principal and interest over the entire
term of the loan with no balloon payment, unless the loan contract requires
more rapid repayment (including balloon payment), in which case the calculation
shall be made (I) in accordance with regulations prescribed by the Board, with
respect to any loan which has an annual percentage rate that does not exceed
the average prime offer rate for a comparable transaction, as of the date the
interest rate is set, by 1.5 or more percentage points for a first lien
residential mortgage loan; and by 3.5 or more percentage points for a
subordinate lien residential mortgage loan; or (II) using the contract’s
repayment schedule, with respect to a loan which has an annual percentage rate,
as of the date the interest rate is set, that is at least 1.5 percentage points
above the average prime offer rate for a first lien residential mortgage loan;
and 3.5 percentage points above the average prime offer rate for a subordinate
lien residential mortgage loan; and</text>
</clause><clause id="H559D52553A944D569B022B6BDF679F42"><enum>(iii)</enum><text>the interest
rate over the entire term of the loan is a fixed rate equal to the fully
indexed rate at the time of the loan closing, without considering the
introductory rate.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="HA53547A670B24928975B34C5D6ADE51F"><enum>(E)</enum><header>Refinance of
hybrid loans with current lender</header><text display-inline="yes-display-inline">In considering any application for
refinancing an existing hybrid loan by the creditor into a standard loan to be
made by the same creditor in any case in which there would be a reduction in
monthly payment and the mortgagor has not been delinquent on any payment on the
existing hybrid loan, the creditor may—</text>
<clause id="H3D19F3B2DEF940CC866454AA417FD0D2"><enum>(i)</enum><text>consider the
mortgagor’s good standing on the existing mortgage;</text>
</clause><clause id="H76A0EEDFE5F042258FECA7558A5392DB"><enum>(ii)</enum><text>consider if the
extension of new credit would prevent a likely default should the original
mortgage reset and give such concerns a higher priority as an acceptable
underwriting practice; and</text>
</clause><clause id="H3999977821C342C6B3D9259AD45F016C"><enum>(iii)</enum><text>offer rate
discounts and other favorable terms to such mortgagor that would be available
to new customers with high credit ratings based on such underwriting
practice.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H69F72FF461DC4E37B2F9D03D6591AC77"><enum>(7)</enum><header>Fully-indexed
rate defined</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <term>fully indexed rate</term> means the index rate
prevailing on a residential mortgage loan at the time the loan is made plus the
margin that will apply after the expiration of any introductory interest
rates.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30385737A1AA419FAB37A1B8CAEDCDE1"><enum>(8)</enum><header display-inline="yes-display-inline">Reverse mortgages and bridge
loans</header><text display-inline="yes-display-inline">This subsection shall
not apply with respect to any reverse mortgage or temporary or bridge loan with
a term of 12 months or less, including to any loan to purchase a new dwelling
where the consumer plans to sell a different dwelling within 12 months.</text>
</paragraph><paragraph id="H64F53C66F7D94C12A8A1867D12BC6661"><enum>(9)</enum><header>Seasonal
income</header><text display-inline="yes-display-inline">If documented income,
including income from a small business, is a repayment source for a residential
mortgage loan, a creditor may consider the seasonality and irregularity of such
income in the underwriting of and scheduling of payments for such
credit.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H92078F4EBD1643D388F02AB85BEEEDD5"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 2 of the Truth in
Lending Act is amended by inserting after the item relating to section 129B (as
added by section 1402(b)) the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H8DBF13BA1A2C47DE9203D9E3E746D662" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">129C. Minimum standards for residential
mortgage
loans.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H00F8569719F94789AEB25A8B60A04115"><enum>1412.</enum><header>Safe harbor
and rebuttable presumption</header><text display-inline="no-display-inline">Section 129C of the Truth in Lending Act is
amended by inserting after subsection (a) (as added by section 1411) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD769B2D6AC9349A4AE7B94266E6C24FB" style="OLC">
<subsection id="HDD9724EDBB534955ADEA83934CF4E69A"><enum>(b)</enum><header>Presumption of
ability To repay</header>
<paragraph id="H463924680D1447469517A4A66419F6EF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Any creditor with
respect to any residential mortgage loan, and any assignee of such loan subject
to liability under this title, may presume that the loan has met the
requirements of subsection (a), if the loan is a qualified mortgage.</text>
</paragraph><paragraph id="H5F7413D7AAAC494F8C50097D4036DFFA"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="H3B178E7CA6EB4368A8E6F6669DD42975"><enum>(A)</enum><header>Qualified
mortgage</header><text display-inline="yes-display-inline">The term
<term>qualified mortgage</term> means any residential mortgage loan—</text>
<clause id="HA27745BD209B46A4A738D782AC9B37B5"><enum>(i)</enum><text display-inline="yes-display-inline">for which the regular periodic payments for
the loan may not—</text>
<subclause id="H5975AB0B34724BF9AED74808B3D248EE"><enum>(I)</enum><text>result in an
increase of the principal balance; or</text>
</subclause><subclause id="H6E0B37B4E65F4FBB837A83C358E42B26"><enum>(II)</enum><text>except as
provided in subparagraph (E), allow the consumer to defer repayment of
principal;</text>
</subclause></clause><clause id="H315BD2EFC7F348279D9F7258301A51F5"><enum>(ii)</enum><text display-inline="yes-display-inline">except as provided in subparagraph (E), the
terms of which do not result in a balloon payment, where a <quote>balloon
payment</quote> is a scheduled payment that is more than twice as large as the
average of earlier scheduled payments;</text>
</clause><clause id="HB18219E07F1E4C2882B5D0FA617A02ED"><enum>(iii)</enum><text>for which the
income and financial resources relied upon to qualify the obligors on the loan
are verified and documented;</text>
</clause><clause id="HCF2B3B8C9E3B4BCB8DF79A66C3615BD7"><enum>(iv)</enum><text>in the case of a
fixed rate loan, for which the underwriting process is based on a payment
schedule that fully amortizes the loan over the loan term and takes into
account all applicable taxes, insurance, and assessments;</text>
</clause><clause id="HDFA9D569163B403DA1B3D9D8819D02E1"><enum>(v)</enum><text>in
the case of an adjustable rate loan, for which the underwriting is based on the
maximum rate permitted under the loan during the first 5 years, and a payment
schedule that fully amortizes the loan over the loan term and takes into
account all applicable taxes, insurance, and assessments;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4CF53375C73D4D3B9B13498B4BC5F7ED"><enum>(vi)</enum><text display-inline="yes-display-inline">that complies with any guidelines or
regulations established by the Board relating to ratios of total monthly debt
to monthly income or alternative measures of ability to pay regular expenses
after payment of total monthly debt, taking into account the income levels of
the borrower and such other factors as the Board may determine relevant and
consistent with the purposes described in paragraph (3)(B)(i);</text>
</clause><clause id="H726965B20D2643C3BAAEDCF765DEF1E4"><enum>(vii)</enum><text display-inline="yes-display-inline">for which the total points and fees (as
defined in subparagraph (C)) payable in connection with the loan do not exceed
3 percent of the total loan amount;</text>
</clause><clause id="H59C74A0B002142458C1285C2B6CAA7DF"><enum>(viii)</enum><text display-inline="yes-display-inline">for which the term of the loan does not
exceed 30 years, except as such term may be extended under paragraph (3), such
as in high-cost areas; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8721A6480F6A41FE96B7D44905DDD0B6"><enum>(ix)</enum><text display-inline="yes-display-inline">in the case of a reverse mortgage (except
for the purposes of subsection (a) of section 129C, to the extent that such
mortgages are exempt altogether from those requirements), a reverse mortgage
which meets the standards for a qualified mortgage, as set by the Board in
rules that are consistent with the purposes of this subsection.</text>
</clause></subparagraph><subparagraph id="HD596324B6C9B43BF894649952B833005"><enum>(B)</enum><header>Average prime
offer rate</header><text display-inline="yes-display-inline">The term
<term>average prime offer rate</term> means the average prime offer rate for a
comparable transaction as of the date on which the interest rate for the
transaction is set, as published by the Board..</text>
</subparagraph><subparagraph id="H420ED7C0B5154815A95FF9F59C0A30CD"><enum>(C)</enum><header>Points and
fees</header>
<clause id="HCC0D2306B0C94F458E562E95DD75AE79"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the term <quote>points and fees</quote> means points and fees
as defined by section 103(aa)(4) (other than bona fide third party charges not
retained by the mortgage originator, creditor, or an affiliate of the creditor
or mortgage originator).</text>
</clause><clause id="H422E1548565D40AEB01DA91CD5F934EF"><enum>(ii)</enum><header>Computation</header><text display-inline="yes-display-inline">For purposes of computing the total points
and fees under this subparagraph, the total points and fees shall exclude
either of the amounts described in the following subclauses, but not
both:</text>
<subclause id="H2F427B917E8347789151F1018A6A87B6"><enum>(I)</enum><text>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 the average prime offer rate.</text>
</subclause><subclause id="HDD2FD2AE105241C09B11FD5BB973B858"><enum>(II)</enum><text>Unless 2 bona
fide discount points have been excluded under subclause (I), 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 the
average prime offer rate.</text>
</subclause></clause><clause id="HE88626775F2D42E99513484CEF4FCF22"><enum>(iii)</enum><header>Bona fide
discount points defined</header><text display-inline="yes-display-inline">For
purposes of clause (ii), the term <quote>bona fide discount points</quote>
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.</text>
</clause><clause id="H8DF3305C640F4DDFB2B40602CE99829C"><enum>(iv)</enum><header>Interest rate
reduction</header><text display-inline="yes-display-inline">Subclauses (I) and
(II) of clause (ii) 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.</text>
</clause></subparagraph><subparagraph id="H2D194889BBE84ABA8B6D5AF5A6E5826B"><enum>(D)</enum><header>Smaller
loans</header><text>The Board shall prescribe rules adjusting the criteria
under subparagraph (A)(vii) in order to permit lenders that extend smaller
loans to meet the requirements of the presumption of compliance under paragraph
(1). In prescribing such rules, the Board shall consider the potential impact
of such rules on rural areas and other areas where home values are
lower.</text>
</subparagraph><subparagraph id="HA21A959CC77C4B1E9C0244D780768B4B"><enum>(E)</enum><header>Balloon
loans</header><text>The Board may, by regulation, provide that the term
<quote>qualified mortgage</quote> includes a balloon loan—</text>
<clause id="H5A712FF0764A490CB5D2FD1F990B2BFB"><enum>(i)</enum><text>that meets all of
the criteria for a qualified mortgage under subparagraph (A) (except clauses
(i)(II), (ii), (iv), and (v) of such subparagraph);</text>
</clause><clause id="HB2864C66B91B445FAD9A0C8DDDAF34E4"><enum>(ii)</enum><text>for which the
creditor makes a determination that the consumer is able to make all scheduled
payments, except the balloon payment, out of income or assets other than the
collateral;</text>
</clause><clause id="H325851AB4D724B2F82B38C76745D98A3"><enum>(iii)</enum><text>for which the
underwriting is based on a payment schedule that fully amortizes the loan over
a period of not more than 30 years and takes into account all applicable taxes,
insurance, and assessments; and</text>
</clause><clause id="H189478A12A394F518354999AD6D6746A"><enum>(iv)</enum><text>that is extended
by a creditor that—</text>
<subclause id="H11BFCCD8A78A427493AA7C6F6FE25EEB"><enum>(I)</enum><text>operates
predominantly in rural or underserved areas;</text>
</subclause><subclause id="H3098237B9A9349AFB4476E6B3B2D08E4"><enum>(II)</enum><text>together with all
affiliates, has total annual residential mortgage loan originations that do not
exceed a limit set by the Board;</text>
</subclause><subclause id="H4980AF91B2CB422DAABF09A1CAAEF04E"><enum>(III)</enum><text>retains the
balloon loans in portfolio; and</text>
</subclause><subclause id="H4BC6926B194D41FEAAFB3112EFD3C475"><enum>(IV)</enum><text>meets any asset
size threshold and any other criteria as the Board may establish, consistent
with the purposes of this subtitle.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H1374281A4E0745B9ADF3CF0F6567F300"><enum>(3)</enum><header>Regulations</header>
<subparagraph id="HB22CA52EF3C14998B6DCE932B1AFE78C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall
prescribe regulations to carry out the purposes of this subsection.</text>
</subparagraph><subparagraph id="H4CE305A765D748AE95062907F643E323"><enum>(B)</enum><header>Revision of safe
harbor criteria</header>
<clause id="H9838F017CA4F4D2DBAFFF32AB0F1AA8F"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board may
prescribe regulations that revise, add to, or subtract from the criteria that
define a qualified mortgage upon a finding that such regulations are necessary
or proper to ensure that responsible, affordable mortgage credit remains
available to consumers in a manner consistent with the purposes of this
section, necessary and appropriate to effectuate the purposes of this section
and section 129B, to prevent circumvention or evasion thereof, or to facilitate
compliance with such sections.</text>
</clause><clause id="H9DF1FE2FD5A74518ADC26DD68FD354C6"><enum>(ii)</enum><header>Loan
definition</header><text display-inline="yes-display-inline">The following
agencies shall, in consultation with the Board, prescribe rules defining the
types of loans they insure, guarantee, or administer, as the case may be, that
are qualified mortgages for purposes of paragraph (2)(A), and such rules may
revise, add to, or subtract from the criteria used to define a qualified
mortgage under paragraph (2)(A), upon a finding that such rules are consistent
with the purposes of this section and section 129B, to prevent circumvention or
evasion thereof, or to facilitate compliance with such sections:</text>
<subclause id="H6EF2CA11398F42E7A04CA5DFB6FF4048"><enum>(I)</enum><text>The Department of
Housing and Urban Development, with regard to mortgages insured under the
National Housing Act (12 U.S.C. 1707 et seq.).</text>
</subclause><subclause id="H69326F6BE1F24F59928176172210761A"><enum>(II)</enum><text>The Department of
Veterans Affairs, with regard to a loan made or guaranteed by the Secretary of
Veterans Affairs.</text>
</subclause><subclause id="H21A4183DED6443CBA4E6CB531674A6BF"><enum>(III)</enum><text>The Department
of Agriculture, with regard loans guaranteed by the Secretary of Agriculture
pursuant to 42 U.S.C. 1472(h).</text>
</subclause><subclause id="H893D07A99E5C4EFB9793A610021FDAD4"><enum>(IV)</enum><text>The Rural Housing
Service, with regard to loans insured by the Rural Housing
Service.</text>
</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H7DA01978C933467FAE7EDD0590ED95AE" section-type="subsequent-section"><enum>1413.</enum><header>Defense to
foreclosure</header><text display-inline="no-display-inline">Section 130 of the
Truth in Lending Act (15 U.S.C. 1640) is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H141E46277C67470BB669E1445E978C25" style="OLC">
<subsection commented="no" id="H9F1D738F034546BC966CD22C645B5D2E"><enum>(k)</enum><header>Defense to
foreclosure</header>
<paragraph commented="no" id="H14654EBAC8E54446B8FD0B3884DF05BF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, when a creditor, assignee, or other holder of a
residential mortgage loan or anyone acting on behalf of such creditor,
assignee, or holder, initiates a judicial or nonjudicial foreclosure of the
residential mortgage loan, or any other action to collect the debt in
connection with such loan, a consumer may assert a violation by a creditor of
paragraph (1) or (2) of section 129B(c), or of section 129C(a), as a matter of
defense by recoupment or set off without regard for the time limit on a private
action for damages under subsection (e).</text>
</paragraph><paragraph commented="no" id="H2067451006544AA8834AC5301B0ECF0B"><enum>(2)</enum><header>Amount of
recoupment or setoff</header>
<subparagraph commented="no" id="H8C091CABE2D54B3989F806A3550B6CE8"><enum>(A)</enum><header>In
general</header><text>The amount of recoupment or set-off under paragraph (1)
shall equal the amount to which the consumer would be entitled under subsection
(a) for damages for a valid claim brought in an original action against the
creditor, plus the costs to the consumer of the action, including a reasonable
attorney’s fee.</text>
</subparagraph><subparagraph commented="no" id="HD9438673DE234E24B29DE6EA6A5C618D"><enum>(B)</enum><header>Special
rule</header><text>Where such judgment is rendered after the expiration of the
applicable time limit on a private action for damages under subsection (e), the
amount of recoupment or set-off under paragraph (1) derived from damages under
subsection (a)(4) shall not exceed the amount to which the consumer would have
been entitled under subsection (a)(4) for damages computed up to the day
preceding the expiration of the applicable time
limit.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H94315111AE774675903A6ADB65DE2DA5"><enum>1414.</enum><header>Additional
standards and requirements</header>
<subsection id="H2F6B6CF37B2647DE80FD8700DC4A3C58"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 129C of the
Truth in Lending Act is amended by inserting after subsection (b) (as added by
this title) the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="HEEFBFF019B2F44C2B1502A733AA0808B" style="OLC">
<subsection id="HD50044BB5EF841B28177D727C3C27B20"><enum>(c)</enum><header>Prohibition on
certain prepayment penalties</header>
<paragraph id="H13A520D4C603449E99E75B1145940502"><enum>(1)</enum><header>Prohibited on
certain loans</header>
<subparagraph id="H1C41741177ED482EB9148A1A964EBD7C"><enum>(A)</enum><header>In
general</header><text>A residential mortgage loan that is not a <term>qualified
mortgage</term>, as defined under subsection (b)(2), may not contain terms
under which a consumer must pay a prepayment penalty for paying all or part of
the principal after the loan is consummated.</text>
</subparagraph><subparagraph id="H0EEB04C2D85440DCB562D7644C042874"><enum>(B)</enum><header>Exclusions</header><text>For
purposes of this subsection, a <term>qualified mortgage</term> may not include
a residential mortgage loan that—</text>
<clause id="HB274451A21184173B68602A050D6DF28"><enum>(i)</enum><text>has an adjustable
rate; or</text>
</clause><clause id="H806599C602CD4AF6B428014B4AB150E6"><enum>(ii)</enum><text display-inline="yes-display-inline">has an annual percentage rate that exceeds
the average prime offer rate for a comparable transaction, as of the date the
interest rate is set—</text>
<subclause id="H4FC5D286FD824F2BA4C28C01A6EC483E"><enum>(I)</enum><text>by 1.5 or more
percentage points, in the case of a first lien residential mortgage loan having
a original principal obligation amount that is equal to or less than the amount
of the maximum limitation on the original principal obligation of mortgage in
effect for a residence of the applicable size, as of the date of such interest
rate set, pursuant to the 6th sentence of section 305(a)(2) the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2));</text>
</subclause><subclause id="H378F21162F0948B39292C2FB50A983E6"><enum>(II)</enum><text>by 2.5 or more
percentage points, in the case of a first lien residential mortgage loan having
a original principal obligation amount that is more than the amount of the
maximum limitation on the original principal obligation of mortgage in effect
for a residence of the applicable size, as of the date of such interest rate
set, pursuant to the 6th sentence of section 305(a)(2) the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)); and</text>
</subclause><subclause id="H499C121815934889B4ABCEB9D9A0C0AD"><enum>(III)</enum><text>by 3.5 or more
percentage points, in the case of a subordinate lien residential mortgage
loan.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H3A1C443E280749368E8580496BD75F99"><enum>(2)</enum><header> Publication of
average prime offer rate and apr thresholds</header><text display-inline="yes-display-inline">The Board—</text>
<subparagraph id="HF6873B22AC7846EFB706ECF84C752731"><enum>(A)</enum><text>shall publish, and
update at least weekly, average prime offer rates;</text>
</subparagraph><subparagraph id="HAA1089C85A9545D29E68F28A70B47F7A"><enum>(B)</enum><text>may publish
multiple rates based on varying types of mortgage transactions; and</text>
</subparagraph><subparagraph id="HF3CBA404B05B46D5A0396FFF867D547E"><enum>(C)</enum><text>shall adjust the
thresholds established under subclause (I), (II), and (III) of paragraph
(1)(B)(ii) as necessary to reflect significant changes in market conditions and
to effectuate the purposes of the Mortgage Reform and Anti-Predatory Lending
Act.</text>
</subparagraph></paragraph><paragraph id="H84FDE5FDCE9E4A30BDA83774BA1516F2"><enum>(3)</enum><header>Phased-out
penalties on qualified mortgages</header><text>A qualified mortgage (as defined
in subsection (b)(2)) may not contain terms under which a consumer must pay a
prepayment penalty for paying all or part of the principal after the loan is
consummated in excess of the following limitations:</text>
<subparagraph id="H2F7B72B4CF074164AABD46378D152E8D"><enum>(A)</enum><text>During the 1-year
period beginning on the date the loan is consummated, the prepayment penalty
shall not exceed an amount equal to 3 percent of the outstanding balance on the
loan.</text>
</subparagraph><subparagraph id="H07FB14F8912B4E279F2AAD23FB0FCD8B"><enum>(B)</enum><text display-inline="yes-display-inline">During the 1-year period beginning after
the period described in subparagraph (A), the prepayment penalty shall not
exceed an amount equal to 2 percent of the outstanding balance on the
loan.</text>
</subparagraph><subparagraph id="HC9090D8449CD49FAB6DE154B47E26C6A"><enum>(C)</enum><text display-inline="yes-display-inline">During the 1-year period beginning after
the 1-year period described in subparagraph (B), the prepayment penalty shall
not exceed an amount equal to 1 percent of the outstanding balance on the
loan.</text>
</subparagraph><subparagraph id="H680B9CC3E1D44F4B9BE2CFD5B631EAF9"><enum>(D)</enum><text display-inline="yes-display-inline">After the end of the 3-year period
beginning on the date the loan is consummated, no prepayment penalty may be
imposed on a qualified mortgage.</text>
</subparagraph></paragraph><paragraph id="H3BDFB38BE05744CA90CEBFDB3E588E96"><enum>(4)</enum><header>Option for no
prepayment penalty required</header><text>A creditor may not offer a consumer a
residential mortgage loan product that has a prepayment penalty for paying all
or part of the principal after the loan is consummated as a term of the loan
without offering the consumer a residential mortgage loan product that does not
have a prepayment penalty as a term of the loan.</text>
</paragraph></subsection><subsection id="H55BA0E1ED07149D98394D711E0660571"><enum>(d)</enum><header>Single premium
credit insurance prohibited</header><text display-inline="yes-display-inline">No creditor may finance, directly or
indirectly, in connection with any residential mortgage loan or with any
extension of credit under an open end consumer credit plan secured by the
principal dwelling of the consumer, 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—</text>
<paragraph id="HCE5B8FAD39004A3294A1A659564BF1FF"><enum>(1)</enum><text>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; and</text>
</paragraph><paragraph id="HD7BA30B2F0F44BA2AD241DF693FB358B"><enum>(2)</enum><text display-inline="yes-display-inline">this subsection shall not apply to credit
unemployment insurance for which the unemployment insurance premiums are
reasonable, the creditor receives no direct or indirect compensation in
connection with the unemployment insurance premiums, and the unemployment
insurance premiums are paid pursuant to another insurance contract and not paid
to an affiliate of the creditor.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HFA5DC22BA06C4B1499F865D64668A9BD"><enum>(e)</enum><header>Arbitration</header>
<paragraph id="H9F441C767E8E422CA07291F5E90A3157"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No residential
mortgage loan and no extension of credit under an open end consumer credit plan
secured by the principal dwelling of the consumer may include terms which
require arbitration or any other nonjudicial procedure as the method for
resolving any controversy or settling any claims arising out of the
transaction.</text>
</paragraph><paragraph id="H540260E55041427DB0CE6979FF6BE90A"><enum>(2)</enum><header>Post-controversy
agreements</header><text>Subject to paragraph (3), paragraph (1) shall not be
construed as limiting the right of the consumer and the creditor or any
assignee to agree to arbitration or any other nonjudicial procedure as the
method for resolving any controversy at any time after a dispute or claim under
the transaction arises.</text>
</paragraph><paragraph id="HC15F0176AD1647F2A5906A31ECC62A9F"><enum>(3)</enum><header>No waiver of
statutory cause of action</header><text display-inline="yes-display-inline">No
provision of any residential mortgage loan or of any extension of credit under
an open end consumer credit plan secured by the principal dwelling of the
consumer, and no other agreement between the consumer and the creditor relating
to the residential mortgage loan or extension of credit referred to in
paragraph (1), shall be applied or interpreted so as to bar a consumer from
bringing an action in an appropriate district court of the United States, or
any other court of competent jurisdiction, pursuant to section 130 or any other
provision of law, for damages or other relief in connection with any alleged
violation of this section, any other provision of this title, or any other
Federal law.</text>
</paragraph></subsection><subsection id="H9F8F3BF26C764945B25C3F5920EB2AE8"><enum>(f)</enum><header>Mortgages with
negative amortization</header><text>No creditor may extend credit to a borrower
in connection with a consumer credit transaction under an open or closed end
consumer credit plan secured by a dwelling or residential real property that
includes a dwelling, other than a reverse mortgage, that provides or permits a
payment plan that may, at any time over the term of the extension of credit,
result in negative amortization unless, before such transaction is
consummated—</text>
<paragraph id="H45D8FE51F65C4B94892CFE027C9B08B6"><enum>(1)</enum><text>the creditor
provides the consumer with a statement that—</text>
<subparagraph id="H46E560DD7C544283B74C1D015E751740"><enum>(A)</enum><text>the pending
transaction will or may, as the case may be, result in negative
amortization;</text>
</subparagraph><subparagraph id="HF269C03CBD9C46A9A53DC3F27F853979"><enum>(B)</enum><text>describes negative
amortization in such manner as the Board shall prescribe;</text>
</subparagraph><subparagraph id="H964A419B15AC43FA9B200EDD8A359C75"><enum>(C)</enum><text display-inline="yes-display-inline">negative amortization increases the
outstanding principal balance of the account; and</text>
</subparagraph><subparagraph id="H2BDD74DE0E70437AB32022AF2DC4D457"><enum>(D)</enum><text display-inline="yes-display-inline">negative amortization reduces the
consumer’s equity in the dwelling or real property; and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8CBB4CD6F0BD471C80ECF005B099A41F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a first-time borrower with
respect to a residential mortgage loan that is not a qualified mortgage, the
first-time borrower provides the creditor with sufficient documentation to
demonstrate that the consumer received homeownership counseling from
organizations or counselors certified by the Secretary of Housing and Urban
Development as competent to provide such
counseling.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE2135F69A1F849DF85397110C8427C92"><enum>(b)</enum><header>Conforming
amendment relating to enforcement</header><text>Section 108(a) of the Truth in
Lending Act (15 U.S.C. 1607(a)) is amended by inserting after paragraph (6) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2E6F3E43190E4FE48F96E60B02B44275" style="OLC">
<paragraph id="H7FF32B6307424B3DA2CF1FF9E22DB12E"><enum>(7)</enum><text display-inline="yes-display-inline">sections 21B and 21C of the Securities
Exchange Act of 1934, in the case of a broker or dealer, other than a
depository institution, by the Securities and Exchange
Commission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1AE94646E0F548D68F874A824A8478F0"><enum>(c)</enum><header>Protection
against loss of anti-deficiency protection</header><text>Section 129C of the
Truth in Lending Act is amended by inserting after subsection (f) (as added by
subsection (a)) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HABD51DC91AC5437099CA02D8C6EBF62D" style="OLC">
<subsection id="H9AD080EC9F4A41A796875AC8675900CA"><enum>(g)</enum><header>Protection
against loss of anti-deficiency protection</header>
<paragraph id="H90A144D52C5A4E90984DBCCD6BAB44CF"><enum>(1)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>anti-deficiency law</quote> means the law of any State which provides
that, in the event of foreclosure on the residential property of a consumer
securing a mortgage, the consumer is not liable, in accordance with the terms
and limitations of such State law, for any deficiency between the sale price
obtained on such property through foreclosure and the outstanding balance of
the mortgage.</text>
</paragraph><paragraph id="H4721CC0D78BD4DD3A3A04C4441855C9D"><enum>(2)</enum><header>Notice at time
of consummation</header><text display-inline="yes-display-inline">In the case
of any residential mortgage loan that is, or upon consummation will be, subject
to protection under an anti-deficiency law, the creditor or mortgage originator
shall provide a written notice to the consumer describing the protection
provided by the anti-deficiency law and the significance for the consumer of
the loss of such protection before such loan is consummated.</text>
</paragraph><paragraph id="HFCA366546B42466E9F6E527D00506A89"><enum>(3)</enum><header>Notice before
refinancing that would cause loss of protection</header><text>In the case of
any residential mortgage loan that is subject to protection under an
anti-deficiency law, if a creditor or mortgage originator provides an
application to a consumer, or receives an application from a consumer, for any
type of refinancing for such loan that would cause the loan to lose the
protection of such anti-deficiency law, the creditor or mortgage originator
shall provide a written notice to the consumer describing the protection
provided by the anti-deficiency law and the significance for the consumer of
the loss of such protection before any agreement for any such refinancing is
consummated.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5BB873696EA349498DB659EC3FF216B1"><enum>(d)</enum><header>Policy regarding
acceptance of partial payment</header><text display-inline="yes-display-inline">Section 129C of the Truth in Lending Act is
amended by inserting after subsection (g) (as added by subsection (c)) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H82CD83518BD1453299B1949BFA7C055A" style="OLC">
<subsection id="HA9C12E91610B4BD9BC1B9D81F0937949"><enum>(h)</enum><header>Policy regarding
acceptance of partial payment</header><text display-inline="yes-display-inline">In the case of any residential mortgage
loan, a creditor shall disclose prior to settlement or, in the case of a person
becoming a creditor with respect to an existing residential mortgage loan, at
the time such person becomes a creditor—</text>
<paragraph id="H8C0EE892158041EC8A269B22206C6140"><enum>(1)</enum><text>the creditor’s
policy regarding the acceptance of partial payments; and</text>
</paragraph><paragraph id="H2CE804BB74944737A4A401E38EA00056"><enum>(2)</enum><text>if partial
payments are accepted, how such payments will be applied to such mortgage and
if such payments will be placed in escrow.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H61D5F9DEA8AF4FCFAC05BBCDEF82B9F7"><enum>(i)</enum><header display-inline="yes-display-inline">Timeshare plans</header><text display-inline="yes-display-inline">This section and any regulations
promulgated under this section do not apply to an extension of credit relating
to a plan described in section 101(53D) of title 11, United States
Code.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H4C3A3F039463457E975AB93F8CC459AE" section-type="subsequent-section"><enum>1415.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">Except as
otherwise expressly provided in section 129B or 129C of the Truth in Lending
Act (as added by this title), no provision of such section 129B or 129C shall
be construed as superseding, repealing, or affecting any duty, right,
obligation, privilege, or remedy of any person under any other provision of the
Truth in Lending Act or any other provision of Federal or State law.</text>
</section><section commented="no" id="HAB00AEC000AA4E018EBBDBFD7A4EEB56"><enum>1416.</enum><header>Amendments to
civil liability provisions</header>
<subsection commented="no" id="H479EFEEF11BF4823970DDBBCC2CD44B3"><enum>(a)</enum><header>Increase in
amount of civil money penalties for certain violations</header><text>Section
130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended—</text>
<paragraph id="H868C3C8FB4444EC7BAA3E6C388916956"><enum>(1)</enum><text>in paragraph
(2)(A)(ii)—</text>
<subparagraph id="H9153D7047A984DB2A368A190F7EDE5BC"><enum>(A)</enum><text>by striking
<quote>$100</quote> and inserting <quote>$200</quote>; and</text>
</subparagraph><subparagraph id="HFA780D930AED49F4A566AAC44E4C290C"><enum>(B)</enum><text>by striking
<quote>$1,000</quote> and inserting <quote>$2,000</quote>;</text>
</subparagraph></paragraph><paragraph id="H6EE677E7B23F4B21A4ACA8AB078A55FA"><enum>(2)</enum><text>in paragraph
(2)(B), by striking <quote>$500,000</quote> and inserting
<quote>$1,000,000</quote>; and</text>
</paragraph><paragraph id="H306C02A030E3458BA6FC1F520DB81AAA"><enum>(3)</enum><text>in paragraph (4),
by inserting <quote>, paragraph (1) or (2) of section 129B(c), or section
129C(a) </quote> after <quote>section 129</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H95BF974F215F4DA29EFDD7396CC6AB0E"><enum>(b)</enum><header>Statute of
limitations extended for section 129 violations</header><text>Section 130(e) of
the Truth in Lending Act (15 U.S.C. 1640(e)) is amended—</text>
<paragraph commented="no" id="HFA8C38FD6D4442B6B3AC93C94A49E0FE"><enum>(1)</enum><text>in the first
sentence, by striking <quote>Any action</quote> and inserting <quote>Except as
provided in the subsequent sentence, any action</quote>; and</text>
</paragraph><paragraph commented="no" id="H9EE5EB86AA9047F08FD677F177250BE6"><enum>(2)</enum><text>by inserting after
the first sentence the following new sentence: <quote>Any action under this
section with respect to any violation of section 129, 129B, or 129C may be
brought in any United States district court, or in any other court of competent
jurisdiction, before the end of the 3-year period beginning on the date of the
occurrence of the violation.</quote>.</text>
</paragraph></subsection></section><section id="HF9B9FD9A92DC45B69F6F2BB7A4391280"><enum>1417.</enum><header>Lender rights
in the context of borrower deception</header><text display-inline="no-display-inline">Section 130 of the Truth in Lending Act (15
U.S.C. 1640) is amended by adding after subsection (k) (as added by this title)
the following new subsection:</text>
<quoted-block id="H50888A2628B846E7877877F443A66716" style="OLC">
<subsection id="H12BB638DE1E0484B80F0646918A0A942"><enum>(l)</enum><header>Exemption from
liability and rescission in case of borrower fraud or deception</header><text display-inline="yes-display-inline">In addition to any other remedy available
by law or contract, no creditor or assignee shall be liable to an obligor under
this section, if such obligor, or co-obligor has been convicted of obtaining by
actual fraud such residential mortgage
loan.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H65DF756E7FC64C39A99CA7E55AEE5499"><enum>1418.</enum><header>Six-month
notice required before reset of hybrid adjustable rate mortgages</header>
<subsection id="H9A8F6A3DFC0D4AB8AFB22C42FB449F97"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 2 of the
Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after
section 128 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H342BE0E5B377460D93ED8AFF22888D7A" style="USC">
<section id="HA07DC3998CFC4DB0B0FC7CA46CC2C750"><enum>128A.</enum><header>Reset of
hybrid adjustable rate mortgages</header>
<subsection id="HEF7DF3A6FB244D59A8DD6C5E8B4FDE14"><enum>(a)</enum><header>Hybrid
adjustable rate mortgages defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>hybrid adjustable rate mortgage</term> means a consumer credit
transaction secured by the consumer's principal residence with a fixed interest
rate for an introductory period that adjusts or resets to a variable interest
rate after such period.</text>
</subsection><subsection id="H0D31DB4E896D43D38EFE732C3C956A6A"><enum>(b)</enum><header>Notice of Reset
and alternatives</header><text display-inline="yes-display-inline">During the
1-month period that ends 6 months before the date on which the interest rate in
effect during the introductory period of a hybrid adjustable rate mortgage
adjusts or resets to a variable interest rate or, in the case of such an
adjustment or resetting that occurs within the first 6 months after
consummation of such loan, at consummation, the creditor or servicer of such
loan shall provide a written notice, separate and distinct from all other
correspondence to the consumer, that includes the following:</text>
<paragraph id="H88D905E0C513427D9ED5E3C139DB06B4"><enum>(1)</enum><text display-inline="yes-display-inline">Any index or formula used in making
adjustments to or resetting the interest rate and a source of information about
the index or formula.</text>
</paragraph><paragraph id="HCD6ED6E650AD4E5FA8B4C4EBB6FDEFE9"><enum>(2)</enum><text display-inline="yes-display-inline">An explanation of how the new interest rate
and payment would be determined, including an explanation of how the index was
adjusted, such as by the addition of a margin.</text>
</paragraph><paragraph id="HF2426188AFD74E2FB627C0C26250836B"><enum>(3)</enum><text display-inline="yes-display-inline">A good faith estimate, based on accepted
industry standards, of the creditor or servicer of the amount of the monthly
payment that will apply after the date of the adjustment or reset, and the
assumptions on which this estimate is based.</text>
</paragraph><paragraph id="H7DC07EB2AE3445C3A5DB2CB918B8A82A"><enum>(4)</enum><text display-inline="yes-display-inline">A list of alternatives consumers may pursue
before the date of adjustment or reset, and descriptions of the actions
consumers must take to pursue these alternatives, including—</text>
<subparagraph id="HA33654C45EFF4F10A04C40CF7FED630E"><enum>(A)</enum><text>refinancing;</text>
</subparagraph><subparagraph id="HDC376DBAA0B44DEBA2C22E3467381960"><enum>(B)</enum><text>renegotiation of
loan terms;</text>
</subparagraph><subparagraph id="H1B7F0F793AB04E71BC47542BED237DFF"><enum>(C)</enum><text>payment
forbearances; and</text>
</subparagraph><subparagraph id="HF5BABF9533EF4789AC5A1A31B5698A6A"><enum>(D)</enum><text>pre-foreclosure
sales.</text>
</subparagraph></paragraph><paragraph id="H7EA308F3969C4D399C6C6D167A847023"><enum>(5)</enum><text display-inline="yes-display-inline">The names, addresses, telephone numbers,
and Internet addresses of counseling agencies or programs reasonably available
to the consumer that have been certified or approved and made publicly
available by the Secretary of Housing and Urban Development or a State housing
finance authority (as defined in section 1301 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989).</text>
</paragraph><paragraph id="HCCFB3652DF424BA2BC9CF38DE979E03C"><enum>(6)</enum><text display-inline="yes-display-inline">The address, telephone number, and Internet
address for the State housing finance authority (as so defined) for the State
in which the consumer resides.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1423FFD37EC3494395FA664A346542E5"><enum>(c)</enum><header display-inline="yes-display-inline">Savings
clause</header><text display-inline="yes-display-inline">The Board may require
the notice in paragraph (b) or other notice consistent with this Act for
adjustable rate mortgage loans that are not hybrid adjustable rate mortgage
loans.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDCF9687D3B914EA295FD973731878383"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 2 of the Truth in
Lending Act is amended by inserting after the item relating to section 128 the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="H1269E4659A5F4281803983BF20C2B546" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">128A. Reset of hybrid adjustable rate
mortgages.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H56EAE89F54D9499C8A1281C92CDFE3BD" section-type="subsequent-section"><enum>1419.</enum><header>Required
disclosures</header><text display-inline="no-display-inline">Section 128(a) of
Truth in Lending Act (15 U.S.C. 1638(a)) is amended by adding at the end the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HDAB07581538D49CB91E45D4C2B5B02CA" style="OLC">
<paragraph id="H41D54A5ECA78486C88326849446FA6E5"><enum>(16)</enum><text display-inline="yes-display-inline">In the case of a variable rate residential
mortgage loan for which an escrow or impound account will be established for
the payment of all applicable taxes, insurance, and assessments—</text>
<subparagraph id="H1FBD0CD6C5D4471D8F66D320329ED0E7"><enum>(A)</enum><text>the amount of
initial monthly payment due under the loan for the payment of principal and
interest, and the amount of such initial monthly payment including the monthly
payment deposited in the account for the payment of all applicable taxes,
insurance, and assessments; and</text>
</subparagraph><subparagraph id="HBDEAC626BF4F41FF9930850ACE10B271"><enum>(B)</enum><text>the amount of the
fully indexed monthly payment due under the loan for the payment of principal
and interest, and the amount of such fully indexed monthly payment including
the monthly payment deposited in the account for the payment of all applicable
taxes, insurance, and assessments.</text>
</subparagraph></paragraph><paragraph id="HE278E369272B44CB8F9D1FE1238939F4"><enum>(17)</enum><text>In the case of a
residential mortgage loan, the aggregate amount of settlement charges for all
settlement services provided in connection with the loan, the amount of charges
that are included in the loan and the amount of such charges the borrower must
pay at closing, the approximate amount of the wholesale rate of funds in
connection with the loan, and the aggregate amount of other fees or required
payments in connection with the loan.</text>
</paragraph><paragraph id="HA995F7958986428298F9EE37270B8378"><enum>(18)</enum><text>In the case of a
residential mortgage loan, the aggregate amount of fees paid to the mortgage
originator in connection with the loan, the amount of such fees paid directly
by the consumer, and any additional amount received by the originator from the
creditor.</text>
</paragraph><paragraph id="HD78620E07BBA44A3B6C7DE73F51FD546"><enum>(19)</enum><text>In the case of a
residential mortgage loan, the total amount of interest that the consumer will
pay over the life of the loan as a percentage of the principal of the loan.
Such amount shall be computed assuming the consumer makes each monthly payment
in full and on-time, and does not make any
over-payments.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H912A3B2BFE254A008C016E5BA071BEEB"><enum>1420.</enum><header>Disclosures
required in monthly statements for residential mortgage loans</header><text display-inline="no-display-inline">Section 128 of the Truth in Lending Act (15
U.S.C. 1638) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HED66CF5C0B2343E7AE2FE7BDF6CFE370" style="OLC">
<subsection id="H169A8C7CCB3B4ED08C88C984A4E78048"><enum>(f)</enum><header>Periodic
statements for residential mortgage loans</header>
<paragraph id="H28A9FD2B2BA4448987F53EE25D0AC61B"><enum>(1)</enum><header>In
general</header><text>The creditor, assignee, or servicer with respect to any
residential mortgage loan shall transmit to the obligor, for each billing
cycle, a statement setting forth each of the following items, to the extent
applicable, in a conspicuous and prominent manner:</text>
<subparagraph id="HA89C65D46B834DF890A70BD94A944BDF"><enum>(A)</enum><text display-inline="yes-display-inline">The amount of the principal obligation
under the mortgage.</text>
</subparagraph><subparagraph id="H5A085C3C25764555B7ACBDD07A9B7DA8"><enum>(B)</enum><text>The current
interest rate in effect for the loan.</text>
</subparagraph><subparagraph id="HCAE4EED8CE414B4DA94441507EAE854C"><enum>(C)</enum><text>The date on which
the interest rate may next reset or adjust.</text>
</subparagraph><subparagraph id="HEE50577307334A249508296730FC0F71"><enum>(D)</enum><text>The amount of any
prepayment fee to be charged, if any.</text>
</subparagraph><subparagraph id="H58B369C37B7C4A6584625C7AC64DE4F9"><enum>(E)</enum><text>A description of
any late payment fees.</text>
</subparagraph><subparagraph id="HE39A3A441C3D49FDB9D01565AB879BA4"><enum>(F)</enum><text>A telephone number
and electronic mail address that may be used by the obligor to obtain
information regarding the mortgage.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HEB326221CC0D4A3DB83F1ACF07CD7348"><enum>(G)</enum><text display-inline="yes-display-inline">The names, addresses, telephone numbers,
and Internet addresses of counseling agencies or programs reasonably available
to the consumer that have been certified or approved and made publicly
available by the Secretary of Housing and Urban Development or a State housing
finance authority (as defined in section 1301 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989).</text>
</subparagraph><subparagraph id="H719EB84C76344D989E25B71FF91D3FAE"><enum>(H)</enum><text>Such other
information as the Board may prescribe in regulations.</text>
</subparagraph></paragraph><paragraph id="H29B43E9105F4490EBD8331EDACFF14D7"><enum>(2)</enum><header>Development and
use of standard form</header><text display-inline="yes-display-inline">The
Board shall develop and prescribe a standard form for the disclosure required
under this subsection, taking into account that the statements required may be
transmitted in writing or electronically.</text>
</paragraph><paragraph id="HDE20DC231EFB4C9B948CF8F7F57C1CC4"><enum>(3)</enum><header>Exception</header><text>Paragraph
(1) shall not apply to any fixed rate residential mortgage loan where the
creditor, assignee, or servicer provides the obligor with a coupon book that
provides the obligor with substantially the same information as required in
paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H904C63DCEF324BE39EDDE1DC189DA744"><enum>1421.</enum><header>Report by the
GAO</header>
<subsection id="H117966991B9444F59C93FA6A7C3B9C0B"><enum>(a)</enum><header>Report
required</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall conduct a study to determine the effects the
enactment of this Act will have on the availability and affordability of credit
for consumers, small businesses, homebuyers, and mortgage lending, including
the effect—</text>
<paragraph id="H1D91B031EA2C437FAF4115568096DA20"><enum>(1)</enum><text display-inline="yes-display-inline">on the mortgage market for mortgages that
are not within the safe harbor provided in the amendments made by this
subtitle;</text>
</paragraph><paragraph id="HA1905B2A33FF47729828B4C7C8FF72AF"><enum>(2)</enum><text>on the ability of
prospective homebuyers to obtain financing;</text>
</paragraph><paragraph id="HB1EB1BB8485C48229267221CA4FDDC40"><enum>(3)</enum><text>on the ability of
homeowners facing resets or adjustments to refinance—for example, do they have
fewer refinancing options due to the unavailability of certain loan products
that were available before the enactment of this Act;</text>
</paragraph><paragraph id="HC4AB2CB6004C462F833386751E8130A6"><enum>(4)</enum><text>on minorities’
ability to access affordable credit compared with other prospective
borrowers;</text>
</paragraph><paragraph id="H698A54AF4840435380B6DDB667303B99"><enum>(5)</enum><text>on home sales and
construction;</text>
</paragraph><paragraph id="H95E9496E0A994B0D9228928231811682"><enum>(6)</enum><text>of extending the
rescission right, if any, on adjustable rate loans and its impact on
litigation;</text>
</paragraph><paragraph id="H6EE8B22AF19D4BBB83676EA66797EE34"><enum>(7)</enum><text>of State
foreclosure laws and, if any, an investor’s ability to transfer a property
after foreclosure;</text>
</paragraph><paragraph id="H8D6A343187EF423D89D76FC094DD3A09"><enum>(8)</enum><text>of expanding the
existing provisions of the Home Ownership and Equity Protection Act of
1994;</text>
</paragraph><paragraph id="HEA92DCF89D68411FB7A0B044EA4116BB"><enum>(9)</enum><text>of prohibiting
prepayment penalties on high-cost mortgages; and</text>
</paragraph><paragraph id="HA3C100762883440EA527226FA9A6D939"><enum>(10)</enum><text display-inline="yes-display-inline">of establishing counseling services under
the Department of Housing and Urban Development and offered through the Office
of Housing Counseling.</text>
</paragraph></subsection><subsection id="H1E11DDB9B66D46E699C1AED21BD5A4A1"><enum>(b)</enum><header>Report</header><text>Before
the end of the 1-year period beginning on the date of the enactment of this
Act, the Comptroller General shall submit a report to the Congress containing
the findings and conclusions of the Comptroller General with respect to the
study conducted pursuant to subsection (a).</text>
</subsection><subsection id="HC5DEDB36EDDE48B8807610148A300ED2"><enum>(c)</enum><header>Examination
related to certain credit risk retention provisions</header><text display-inline="yes-display-inline">The report required by subsection (b) shall
also include an analysis by the Comptroller General of the effect on the
capital reserves and funding of lenders of credit risk retention provisions for
non-qualified mortgages, including an analysis of the exceptions and
adjustments authorized in section 129C(b)(3) of the Truth in Lending Act and a
recommendation on whether a uniform standard is needed.</text>
</subsection><subsection id="H1B486588BD3B477A954FC263417F6216"><enum>(d)</enum><header>Analysis of
credit risk retention provisions</header><text display-inline="yes-display-inline">The report required by subsection (b) shall
also include—</text>
<paragraph id="H016FBD6926ED4B9F811CE1567FB9338C"><enum>(1)</enum><text>an analysis by the
Comptroller General of whether the credit risk retention provisions have
significantly reduced risks to the larger credit market of the repackaging and
selling of securitized loans on a secondary market; and</text>
</paragraph><paragraph id="H6D2E9678E56F4EFDAB33AE010DD5BF27"><enum>(2)</enum><text>recommendations to
the Congress on adjustments that should be made, or additional measures that
should be undertaken.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HC6184FD4EF484526A06A0A803F60BACE" section-type="subsequent-section"><enum>1422.</enum><header>State attorney
general enforcement authority</header><text display-inline="no-display-inline">Section 130(e) of the Truth in Lending Act
(15 U.S.C. 1640(e)) is amended by striking <quote>section 129 may also</quote>
and inserting <quote>section 129, 129B, 129C, 129D, 129E, 129F, 129G, or 129H
of this Act may also</quote>.</text>
</section></subtitle><subtitle id="HDD6B4594178F423DB4590E05B29CA4A0"><enum>C</enum><header>High-Cost
Mortgages</header>
<section id="H99ECE9DF73524846839C20B41160D520"><enum>1431.</enum><header>Definitions
relating to high-cost mortgages</header>
<subsection id="HE0DF5128C10E4439B85F4CA3112FF58F"><enum>(a)</enum><header>High-cost
mortgage defined</header><text>Section 103(aa) of the Truth in Lending Act (15
U.S.C. 1602(aa)) is amended by striking all that precedes paragraph (2) and
inserting the following:</text>
<quoted-block id="HE328753A3B454BDDB51B6501188B2407">
<subsection id="H440B2171CAB8469D96BA66451A723F0A"><enum>(aa)</enum><header>High-cost
mortgage</header>
<paragraph id="HCA33DE9FA9944C11A76C06A489D7ADAF"><enum>(1)</enum><header>Definition</header>
<subparagraph id="H784F00D4C9EA4C2E92F0B60913F48839"><enum>(A)</enum><header>In
general</header><text>The term <term>high-cost mortgage</term>, 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—</text>
<clause id="H5FD0300B667D40FDB5D786E499B3275D"><enum>(i)</enum><text>in
the case of a credit transaction secured—</text>
<subclause id="H234D6F864DF341B8BF39670F5BEC8840"><enum>(I)</enum><text display-inline="yes-display-inline">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</text>
</subclause><subclause id="HCF60F0B56826423F89C709471F15F959"><enum>(II)</enum><text display-inline="yes-display-inline">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;</text>
</subclause></clause><clause id="H0E47D140790E4A65A7878F207F8FC4C3"><enum>(ii)</enum><text display-inline="yes-display-inline">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—</text>
<subclause id="H87DDB7C056F14E1CB62606E07BBAD5BE"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a transaction for $20,000 or
more, 5 percent of the total transaction amount; or</text>
</subclause><subclause id="HCD7880BFDE1245B28F4D1E8AC7EC337F"><enum>(II)</enum><text>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 Board shall
prescribe by regulation); or</text>
</subclause></clause><clause id="H748A5DBD57464B158702FF5B3380C763"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="H8D0268F6AB4E47A1A1385428D06D5B69"><enum>(B)</enum><header>Introductory
rates taken into account</header><text>For purposes of subparagraph (A)(i), the
annual percentage rate of interest shall be determined based on the following
interest rate:</text>
<clause id="H98ED0F56B9264861BF5F9E905E7B926F"><enum>(i)</enum><text>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.</text>
</clause><clause id="H3C1D4D50D2194D83A4406578FB41940A"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause><clause id="H07C7D6C94E624876A9F3D7B588F76648"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="H35CE832BC6D14C639A4696CDF51DAE6D"><enum>(C)</enum><header>Mortgage
insurance</header><text display-inline="yes-display-inline">For the purposes of
computing the total points and fees under paragraph (4), the total points and
fees shall exclude—</text>
<clause id="HB81A0419AFB04C63A3DF0953FCF72450"><enum>(i)</enum><text>any premium
provided by an agency of the Federal Government or an agency of a State;</text>
</clause><clause id="H5FE871E760824BCB829CAA601855D8F9"><enum>(ii)</enum><text>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</text>
</clause><clause id="HD5961EB323D446B5938E07CBA63B21DB"><enum>(iii)</enum><text>any premium paid
by the consumer after
closing.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H631F13D77F764150A7A36D32D059E008"><enum>(b)</enum><header>Adjustment of
percentage points</header><text>Section 103(aa)(2) of the Truth in Lending Act
(15 U.S.C. 1602(aa)(2)) is amended by striking subparagraph (B) and inserting
the following new subparagraph:</text>
<quoted-block id="H62CDB4936D024F558A3145F83889A8B8">
<subparagraph id="H21897F2FF85740D0BD508DE63B28C523"><enum>(B)</enum><text>An increase or
decrease under subparagraph (A)—</text>
<clause id="H6D7517C1179848249B82A2BA19E9E58A"><enum>(i)</enum><text>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</text>
</clause><clause id="HF5582BABBAF8400AA2226B0ED8AF350A"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB77802AF403448C5B622F51229CB8985"><enum>(c)</enum><header>Points and fees
defined</header>
<paragraph id="H9343655C8DC747A380860BE221D17655"><enum>(1)</enum><header>In
general</header><text>Section 103(aa)(4) of the Truth in Lending Act (15 U.S.C.
1602(aa)(4)) is amended—</text>
<subparagraph id="HEEBE6EE77A6F4BCE985A9389816EE307"><enum>(A)</enum><text>by striking
subparagraph (B) and inserting the following:</text>
<quoted-block id="H91C6D3BBD7CA490089DEBBDC8C480D4D">
<subparagraph id="H963AFE337738467B8024F56AB45E3491"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H75F2E129B5F34A778FA6AA5D65AD6E76"><enum>(B)</enum><text>by redesignating
subparagraph (D) as subparagraph (G); and</text>
</subparagraph><subparagraph id="H639FA1D379FD4A9F98E0FC0E4DD19FC9"><enum>(C)</enum><text>by inserting after
subparagraph (C) the following new subparagraphs:</text>
<quoted-block id="HF834AB10829A45158C8814A9648702B2">
<subparagraph id="H44513A80D5B04EF99E44C61BC8EB6BC5"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="HF6A210CF1C7148D3990A2D1802145D98"><enum>(E)</enum><text>the maximum
prepayment fees and penalties which may be charged or collected under the terms
of the credit transaction;</text>
</subparagraph><subparagraph id="H0A91EBE5A66A44ED819E21C30C9C8E60"><enum>(F)</enum><text>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</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4D6AF3F8E51E4C739BA767D755E92908"><enum>(2)</enum><header>Calculation of
points and fees for open-end consumer credit plans</header><text>Section
103(aa) of the Truth in Lending Act (15 U.S.C. 1602(aa)) is amended—</text>
<subparagraph id="H294B25A8312C4FD5A3487F53BEB8CB03"><enum>(A)</enum><text>by redesignating
paragraph (5) as paragraph (6); and</text>
</subparagraph><subparagraph id="H1AB0195DAF754BE194EAD4013CAE5021"><enum>(B)</enum><text>by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H14B5369AC04245EB979D0CFCD79748A5" style="OLC">
<paragraph id="HE266B51D3DE14082841DFAEF6C7D9B8A"><enum>(5)</enum><header>Calculation of
points and fees for open-end consumer credit plans</header><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H31D174D17C49428DA6CCFB3C72A621CA"><enum>(d)</enum><header>Bona fide
discount loan discount points</header><text>Section 103 of the Truth in Lending
Act (15 U.S.C. 1602) is amended by inserting after subsection (cc) (as added by
section 1401) the following new subsection:</text>
<quoted-block id="HAC1B6F74D4214364ABF54B9BEBDFC7B6">
<subsection id="H0E3C21844BA94732B12A202389E4A045"><enum>(dd)</enum><header>Bona fide
discount points and prepayment penalties</header><text display-inline="yes-display-inline">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:</text>
<paragraph id="H4BC7669F56C8488E85B96E72B1102BBB"><enum>(1)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HB8ED84FC3E77434E99A94F91F6785754"><enum>(A)</enum><text display-inline="yes-display-inline">the average prime offer rate, as defined in
section 129C; or</text>
</subparagraph><subparagraph id="HEC8CFD2F235C406591EB3A9A1CE65B4A"><enum>(B)</enum><text>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.).</text>
</subparagraph></paragraph><paragraph id="H90F390415D244DB6AEAC8A4F0B988C99"><enum>(2)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H834B4CA726F24514A88BD654A7DDAE1E"><enum>(A)</enum><text display-inline="yes-display-inline">the average prime offer rate, as defined in
section 129C; or</text>
</subparagraph><subparagraph id="H66A4172E3E624D0185FF6BBF942288CE"><enum>(B)</enum><text>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.).</text>
</subparagraph></paragraph><paragraph id="HCBC111E644194FC0ADEF4B9F44B706A0"><enum>(3)</enum><text>For purposes of
paragraph (1), the term <term>bona fide discount points</term> 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.</text>
</paragraph><paragraph id="HC417FE59CF8B4BB7B535BF26EDD9375A"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="HABAD60DDB578401BB3110F7182E766BD" section-type="subsequent-section"><enum>1432.</enum><header>Amendments to
existing requirements for certain mortgages</header>
<subsection display-inline="no-display-inline" id="H984732AD435B41A3A8F608938A1FDA5A"><enum>(a)</enum><header>Prepayment
penalty provisions</header><text display-inline="yes-display-inline">Section
129(c)(2) of the Truth in Lending Act (15 U.S.C. 1639(c)(2)) is hereby
repealed.</text>
</subsection><subsection id="H3FCBAAF3FBDA407096C1213AFD753A27"><enum>(b)</enum><header>No balloon
payments</header><text>Section 129(e) of the Truth in Lending Act (15 U.S.C.
1639(e)) is amended to read as follows:</text>
<quoted-block id="HF0D810FFA6BD46B58A59FEE30850A1AA">
<subsection id="H1A3B9A2A70614C5DB31886F5015B021F"><enum>(e)</enum><header>No balloon
payments</header><text display-inline="yes-display-inline">No high-cost
mortgage may contain a scheduled payment that is more than twice as large as
the average of earlier scheduled payments. This subsection shall not apply when
the payment schedule is adjusted to the seasonal or irregular income of the
consumer.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="H79DC23A85F0C4C4096CE09B96AAC7175"><enum>1433.</enum><header>Additional
requirements for certain mortgages</header>
<subsection commented="no" id="H6B003235C51D49A2BFA3023938E2C6C9"><enum>(a)</enum><header>Additional
Requirements for Certain Mortgages</header><text>Section 129 of the Truth in
Lending Act (15 U.S.C. 1639) is amended—</text>
<paragraph commented="no" id="HF3998C641DCF4855A80F88D3EA874858"><enum>(1)</enum><text>by redesignating
subsections (j), (k), (l) and (m) as subsections (n), (o), (p), and (q)
respectively; and</text>
</paragraph><paragraph commented="no" id="HCECA84810CEB485B83E5C04C5DBFD4DE"><enum>(2)</enum><text>by inserting after
subsection (i) the following new subsections:</text>
<quoted-block id="HF314EDF35A6041CBB49E2B75DF468095">
<subsection commented="no" id="H2608786A06DF4371BFB98B1FCEAD18FE"><enum>(j)</enum><header>Recommended
Default</header><text>No creditor shall recommend or encourage default on an
existing loan or other debt prior to and in connection with the closing or
planned closing of a high-cost mortgage that refinances all or any portion of
such existing loan or debt.</text>
</subsection><subsection commented="no" id="H14908E37734647C99715027B4B3F9095"><enum>(k)</enum><header>Late
fees</header>
<paragraph commented="no" id="H442E63A8E3CF4641896F292EF652F446"><enum>(1)</enum><header>In
general</header><text>No creditor may impose a late payment charge or fee in
connection with a high-cost mortgage—</text>
<subparagraph commented="no" id="H781216A8273D43B4B5FF2D2E3158C5CC"><enum>(A)</enum><text>in an amount in
excess of 4 percent of the amount of the payment past due;</text>
</subparagraph><subparagraph commented="no" id="H0981E762BF0A47B8A821205C4D6BE1D7"><enum>(B)</enum><text>unless the loan
documents specifically authorize the charge or fee;</text>
</subparagraph><subparagraph commented="no" id="H1007D1C36F344863A7FDC0E940F76F94"><enum>(C)</enum><text>before the end of
the 15-day period beginning on the date the payment is due, or in the case of a
loan on which interest on each installment is paid in advance, before the end
of the 30-day period beginning on the date the payment is due; or</text>
</subparagraph><subparagraph commented="no" id="HE415CC0F7F4E4C8D9E0AD2986E9A4774"><enum>(D)</enum><text>more than once
with respect to a single late payment.</text>
</subparagraph></paragraph><paragraph commented="no" id="H040C16D18E2C44EC8F3C9D666228A53F"><enum>(2)</enum><header>Coordination
with subsequent late fees</header><text>If a payment is otherwise a full
payment for the applicable period and is paid on its due date or within an
applicable grace period, and the only delinquency or insufficiency of payment
is attributable to any late fee or delinquency charge assessed on any earlier
payment, no late fee or delinquency charge may be imposed on such
payment.</text>
</paragraph><paragraph commented="no" id="HDC4F15156A844A6885F316EE656407D4"><enum>(3)</enum><header>Failure to make
installment payment</header><text>If, in the case of a loan agreement the terms
of which provide that any payment shall first be applied to any past due
principal balance, the consumer fails to make an installment payment and the
consumer subsequently resumes making installment payments but has not paid all
past due installments, the creditor may impose a separate late payment charge
or fee for any principal due (without deduction due to late fees or related
fees) until the default is cured.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H6C57E72DBCB04D2DB3481C4DF1041FB2"><enum>(l)</enum><header>Acceleration of
Debt</header><text display-inline="yes-display-inline">No high-cost mortgage
may contain a provision which permits the creditor to accelerate the
indebtedness, except when repayment of the loan has been accelerated by default
in payment, or pursuant to a due-on-sale provision, or pursuant to a material
violation of some other provision of the loan document unrelated to payment
schedule.</text>
</subsection><subsection commented="no" id="H98500D351D224A569DC4D0AEBB4B93BF"><enum>(m)</enum><header>Restriction on
financing points and fees</header><text>No creditor may directly or indirectly
finance, in connection with any high-cost mortgage, any of the
following:</text>
<paragraph commented="no" id="HB2EF0CF85079482E998108D2D6140556"><enum>(1)</enum><text>Any prepayment fee
or penalty payable by the consumer in a refinancing transaction if the creditor
or an affiliate of the creditor is the noteholder of the note being
refinanced.</text>
</paragraph><paragraph commented="no" id="HD77F7F2095DD48D09A13104C213B117E"><enum>(2)</enum><text>Any points or
fees.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H2559DC13883E400E916CF0D4AEFA68D5"><enum>(b)</enum><header>Prohibitions on
evasions</header><text>Section 129 of the Truth in Lending Act (15 U.S.C. 1639)
is amended by inserting after subsection (q) (as so redesignated by subsection
(a)(1)) the following new subsection:</text>
<quoted-block id="HEC1211F057824B48AFEBE95A71003DBD">
<subsection commented="no" id="HF68993DA3029485F90DE21581A335A7E"><enum>(r)</enum><header>Prohibitions on
evasions, structuring of transactions, and reciprocal
arrangements</header><text>A creditor may not take any action in connection
with a high-cost mortgage—</text>
<paragraph commented="no" id="H284AE0950B2642228D732E97DE85E4D5"><enum>(1)</enum><text>to structure a
loan transaction as an open-end credit plan or another form of loan for the
purpose and with the intent of evading the provisions of this title; or</text>
</paragraph><paragraph commented="no" id="H2B0DCA80C4C34F98B22DE995D533B853"><enum>(2)</enum><text>to divide any loan
transaction into separate parts for the purpose and with the intent of evading
provisions of this
title.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H7B2DB80771AD45E092BDC5C7D2FA85D6"><enum>(c)</enum><header>Modification or
Deferral Fees</header><text>Section 129 of the Truth in Lending Act (15 U.S.C.
1639) is amended by inserting after subsection (r) (as added by subsection (b)
of this section) the following new subsection:</text>
<quoted-block id="H225513FA2F7B486DB9FD451B06BAE6A1">
<subsection commented="no" id="H11DC8C45546449F188E6D47B2221F98E"><enum>(s)</enum><header>Modification and
deferral fees prohibited</header><text display-inline="yes-display-inline">A
creditor, successor in interest, assignee, or any agent of any of the above,
may not charge a consumer any fee to modify, renew, extend, or amend a
high-cost mortgage, or to defer any payment due under the terms of such
mortgage.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HAE7B94EF86E14615821EA48F6E09C625"><enum>(d)</enum><header>Payoff
statement</header><text>Section 129 of the Truth in Lending Act (15 U.S.C.
1639) is amended by inserting after subsection (s) (as added by subsection (c)
of this section) the following new subsection:</text>
<quoted-block id="H561DB18FF38C429CBAA39795E263A6F1">
<subsection commented="no" id="H5EBA0B8B64864BF0A93A52ED500E3537"><enum>(t)</enum><header>Payoff
statement</header>
<paragraph commented="no" id="H5AAAA789B9DA4D628553E7AF7122C16A"><enum>(1)</enum><header>Fees</header>
<subparagraph commented="no" id="HA79F530B45B94D24AD2F3FB2716D117D"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), no creditor or
servicer may charge a fee for informing or transmitting to any person the
balance due to pay off the outstanding balance on a high-cost mortgage.</text>
</subparagraph><subparagraph commented="no" id="HE13DF02FE76B48739E5557580D06AF5B"><enum>(B)</enum><header>Transaction
fee</header><text>When payoff information referred to in subparagraph (A) is
provided by facsimile transmission or by a courier service, a creditor or
servicer may charge a processing fee to cover the cost of such transmission or
service in an amount not to exceed an amount that is comparable to fees imposed
for similar services provided in connection with consumer credit transactions
that are secured by the consumer's principal dwelling and are not high-cost
mortgages.</text>
</subparagraph><subparagraph commented="no" id="H968BDDF8217B48399DD195675746572B"><enum>(C)</enum><header>Fee
disclosure</header><text>Prior to charging a transaction fee as provided in
subparagraph (B), a creditor or servicer shall disclose that payoff balances
are available for free pursuant to subparagraph (A).</text>
</subparagraph><subparagraph commented="no" id="H6508D61FD30E4123884FC88022D2AAA5"><enum>(D)</enum><header>Multiple
requests</header><text>If a creditor or servicer has provided payoff
information referred to in subparagraph (A) without charge, other than the
transaction fee allowed by subparagraph (B), on 4 occasions during a calendar
year, the creditor or servicer may thereafter charge a reasonable fee for
providing such information during the remainder of the calendar year.</text>
</subparagraph></paragraph><paragraph commented="no" id="H3499EF4B70A44BDA8F05F57E6B826873"><enum>(2)</enum><header>Prompt
delivery</header><text>Payoff balances shall be provided within 5 business days
after receiving a request by a consumer or a person authorized by the consumer
to obtain such
information.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H0C5C5E7C85AA4D17A823CC13DB0229C3"><enum>(e)</enum><header>Pre-Loan
Counseling Required</header><text>Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection t) (as added by
subsection (d) of this section) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF7528BD0C5904FEBA95E861E2996055C" style="OLC">
<subsection commented="no" id="HD1E19B701FB74F71BAFEAABCCF04F0F4"><enum>(u)</enum><header>Pre-Loan
Counseling</header>
<paragraph commented="no" id="HBFE74C7840AF42FB890004AE2ED3D36C"><enum>(1)</enum><header>In
general</header><text>A creditor may not extend credit to a consumer under a
high-cost mortgage without first receiving certification from a counselor that
is approved by the Secretary of Housing and Urban Development, or at the
discretion of the Secretary, a State housing finance authority, that the
consumer has received counseling on the advisability of the mortgage. Such
counselor shall not be employed by the creditor or an affiliate of the creditor
or be affiliated with the creditor.</text>
</paragraph><paragraph commented="no" id="H7313B8CFC516444E86FD8D822EB98107"><enum>(2)</enum><header>Disclosures
required prior to counseling</header><text>No counselor may certify that a
consumer has received counseling on the advisability of the high-cost mortgage
unless the counselor can verify that the consumer has received each statement
required (in connection with such loan) by this section or the Real Estate
Settlement Procedures Act of 1974 with respect to the transaction.</text>
</paragraph><paragraph commented="no" id="HDD43F3898F1241C896A83D01E4B83A13"><enum>(3)</enum><header>Regulations</header><text>The
Board may prescribe such regulations as the Board determines to be appropriate
to carry out the requirements of paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H98926203B436452AB34C092EFB57FA68"><enum>(f)</enum><header>Corrections and
unintentional violations</header><text display-inline="yes-display-inline">Section 129 of the Truth in Lending Act (15
U.S.C. 1639) is amended by inserting after subsection (u) (as added by
subsection (e)) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1A9EE55B93244DA19CCE046C32042373" style="OLC">
<subsection display-inline="no-display-inline" id="HCBAF509E9A774A75A0AABBE692079446"><enum>(v)</enum><header>Corrections and
unintentional violations</header><text display-inline="yes-display-inline">A
creditor or assignee in a high-cost mortgage who, when acting in good faith,
fails to comply with any requirement under this section will not be deemed to
have violated such requirement if the creditor or assignee establishes that
either—</text>
<paragraph commented="no" id="H8060938187F146F687016E8D5EF536B4"><enum>(1)</enum><text>within 30 days of
the loan closing and prior to the institution of any action, the consumer is
notified of or discovers the violation, appropriate restitution is made, and
whatever adjustments are necessary are made to the loan to either, at the
choice of the consumer—</text>
<subparagraph commented="no" id="HA180D673D1BA437D9C0076908D5D82EA"><enum>(A)</enum><text>make the loan
satisfy the requirements of this chapter; or</text>
</subparagraph><subparagraph commented="no" id="HD66C6568D6AB4371A449A0CDAB89BDD6"><enum>(B)</enum><text>in the case of a
high-cost mortgage, change the terms of the loan in a manner beneficial to the
consumer so that the loan will no longer be a high-cost mortgage; or</text>
</subparagraph></paragraph><paragraph commented="no" id="HE8C50F9F6DDE4BA9AEF829D6461FAD45"><enum>(2)</enum><text>within 60 days of
the creditor's discovery or receipt of notification of an unintentional
violation or bona fide error and prior to the institution of any action, the
consumer is notified of the compliance failure, appropriate restitution is
made, and whatever adjustments are necessary are made to the loan to either, at
the choice of the consumer—</text>
<subparagraph commented="no" id="HE7E6EE6EC5F844ADB5E7649F3A6C2547"><enum>(A)</enum><text>make the loan
satisfy the requirements of this chapter; or</text>
</subparagraph><subparagraph commented="no" id="HA858570C6C734EC9839DCF028DBE7166"><enum>(B)</enum><text>in the case of a
high-cost mortgage, change the terms of the loan in a manner beneficial so that
the loan will no longer be a high-cost
mortgage.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="H8326E5A149544BB082EC02632E3682EC"><enum>D</enum><header>Office of Housing
Counseling</header>
<section id="H3A7250D2E60649BEBDA808A440F438C8"><enum>1441.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Expand and Preserve Home
Ownership Through Counseling Act</short-title></quote>.</text>
</section><section id="HFC5BF8819BDA4AE090DC9B95AA6EDD0A"><enum>1442.</enum><header>Establishment
of Office of Housing Counseling</header><text display-inline="no-display-inline">Section 4 of the Department of
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (42
U.S.C. 3533) is amended by adding at the end the following new
subsection:</text>
<quoted-block act-name="Housing" id="H4C3E4D005930433EB05C09F31C9D8E39">
<subsection id="H10C24A90B9A448E9888E959B7D368AD1"><enum>(g)</enum><header>Office of
Housing Counseling</header>
<paragraph id="H7C4C186D726D42B0BE6C82FD13BF6E15"><enum>(1)</enum><header>Establishment</header><text>There
is established, in the Department, the Office of Housing Counseling.</text>
</paragraph><paragraph id="H456A39A4C95C4BEDB583466B5FDC9260"><enum>(2)</enum><header>Director</header><text>There
is established the position of Director of Housing Counseling. The Director
shall be the head of the Office of Housing Counseling and shall be appointed
by, and shall report to, the Secretary. Such position shall be a
career-reserved position in the Senior Executive Service.</text>
</paragraph><paragraph id="H4DCCC036AAD248889E4944A9127EDF20"><enum>(3)</enum><header>Functions</header>
<subparagraph id="H4F0CB76E86964055899716CB8650360C"><enum>(A)</enum><header>In
general</header><text>The Director shall have primary responsibility within the
Department for all activities and matters relating to homeownership counseling
and rental housing counseling, including—</text>
<clause id="H4D19CC2ACE984EA5BA5946256365BBD4"><enum>(i)</enum><text>research, grant
administration, public outreach, and policy development relating to such
counseling; and</text>
</clause><clause id="H47AA0121AEC5401BA6EB0DA4E53E1085"><enum>(ii)</enum><text>establishment,
coordination, and administration of all regulations, requirements, standards,
and performance measures under programs and laws administered by the Department
that relate to housing counseling, homeownership counseling (including
maintenance of homes), mortgage-related counseling (including home equity
conversion mortgages and credit protection options to avoid foreclosure), and
rental housing counseling, including the requirements, standards, and
performance measures relating to housing counseling.</text>
</clause></subparagraph><subparagraph id="HF04897FB1433428FBAE162ABE9F77845"><enum>(B)</enum><header>Specific
functions</header><text display-inline="yes-display-inline">The Director shall
carry out the functions assigned to the Director and the Office under this
section and any other provisions of law. Such functions shall include
establishing rules necessary for—</text>
<clause id="H1A7E4C13229C49F1A2A237BA8F147095"><enum>(i)</enum><text>the counseling
procedures under section 106(g)(1) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (12
U.S.C. 1701x(h)(1));</text>
</clause><clause id="HC167C6C42D554EC7AA827C931EC678D1"><enum>(ii)</enum><text>carrying out all
other functions of the Secretary under section 106(g) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968, including the establishment, operation, and publication of the
availability of the toll-free telephone number under paragraph (2) of such
section;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB9209E1BD3BF4782BA3E404F7B678C9C"><enum>(iii)</enum><text display-inline="yes-display-inline">contributing to the distribution of home
buying information booklets pursuant to section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604);</text>
</clause><clause id="HE03740B3D3BF4B19B2D76E7E00B408A5"><enum>(iv)</enum><text>carrying out the
certification program under section 106(e) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(e));</text>
</clause><clause id="H728313A3EC2C4448A6AD1F9676153BB9"><enum>(v)</enum><text>carrying out the
assistance program under section 106(a)(4) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968, including criteria for selection of applications to receive
assistance;</text>
</clause><clause id="H6328B9001782404A9AB4344A11574F7E"><enum>(vi)</enum><text>carrying out any
functions regarding abusive, deceptive, or unscrupulous lending practices
relating to residential mortgage loans that the Secretary considers
appropriate, which shall include conducting the study under section 6 of the
Expand and Preserve Home Ownership Through Counseling Act;</text>
</clause><clause id="H5F859DDA75B648AFBD561737752C9BAB"><enum>(vii)</enum><text>providing for
operation of the advisory committee established under paragraph (4) of this
subsection;</text>
</clause><clause id="H3368A5D287CE4C06910A93FFB6C83277"><enum>(viii)</enum><text>collaborating
with community-based organizations with expertise in the field of housing
counseling; and</text>
</clause><clause id="H4DB29568739B4F57BA71EE60726885EB"><enum>(ix)</enum><text display-inline="yes-display-inline">providing for the building of capacity to
provide housing counseling services in areas that lack sufficient services,
including underdeveloped areas that lack basic water and sewer systems,
electricity services, and safe, sanitary housing.</text>
</clause></subparagraph></paragraph><paragraph id="H80F7641265BE41E3B9AEDC53F3BA525A"><enum>(4)</enum><header>Advisory
Committee</header>
<subparagraph id="HC4F826C4550C46DD9258454917BC136B"><enum>(A)</enum><header>In
general</header><text>The Secretary shall appoint an advisory committee to
provide advice regarding the carrying out of the functions of the
Director.</text>
</subparagraph><subparagraph id="H17729BC256224C13BA19F2B2161F80A9"><enum>(B)</enum><header>Members</header><text>Such
advisory committee shall consist of not more than 12 individuals, and the
membership of the committee shall equally represent the mortgage and real
estate industry, including consumers and housing counseling agencies certified
by the Secretary.</text>
</subparagraph><subparagraph id="H5240B27F0AB04DFDA807C1D50675761C"><enum>(C)</enum><header>Terms</header><text>Except
as provided in subparagraph (D), each member of the advisory committee shall be
appointed for a term of 3 years. Members may be reappointed at the discretion
of the Secretary.</text>
</subparagraph><subparagraph id="HA0A71A1F647544AA9B1D1CCCBBD28C8E"><enum>(D)</enum><header>Terms of initial
appointees</header><text>As designated by the Secretary at the time of
appointment, of the members first appointed to the advisory committee, 4 shall
be appointed for a term of 1 year and 4 shall be appointed for a term of 2
years.</text>
</subparagraph><subparagraph id="H6EC85048926147A4B9600BACDDC99EF0"><enum>(E)</enum><header>Prohibition of
pay; travel expenses</header><text>Members of the advisory committee shall
serve without pay, but shall receive travel expenses, including per diem in
lieu of subsistence, in accordance with applicable provisions under subchapter
I of chapter 57 of title 5, United States Code.</text>
</subparagraph><subparagraph id="H157E403EE52747BA81B149EC8FE0D4EC"><enum>(F)</enum><header>Advisory role
only</header><text>The advisory committee shall have no role in reviewing or
awarding housing counseling grants.</text>
</subparagraph></paragraph><paragraph id="H4474E68826DD4BE6AA07D1DE02C5079B"><enum>(5)</enum><header>Scope of
homeownership counseling</header><text>In carrying out the responsibilities of
the Director, the Director shall ensure that homeownership counseling provided
by, in connection with, or pursuant to any function, activity, or program of
the Department addresses the entire process of homeownership, including the
decision to purchase a home, the selection and purchase of a home, issues
arising during or affecting the period of ownership of a home (including
refinancing, default and foreclosure, and other financial decisions), and the
sale or other disposition of a
home.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8093073773064C6789A27703E71C21F8"><enum>1443.</enum><header>Counseling
procedures</header>
<subsection id="HE1232F4326B343BEAAE2E836F1F7D987"><enum>(a)</enum><header>In
general</header><text>Section 106 of the <act-name parsable-cite="HUDA">Housing
and Urban Development Act</act-name> of 1968 (12 U.S.C. 1701x) is amended by
adding at the end the following new subsection:</text>
<quoted-block act-name="Housing" id="H15A1A9C540504ABEB67EF75DC0630896">
<subsection id="H9B2C9CD38A894F6E9A10F138CD100DC5"><enum>(g)</enum><header>Procedures and
activities</header>
<paragraph id="H591A45935C9E44F9A81818E67F744ACC"><enum>(1)</enum><header>Counseling
procedures</header>
<subparagraph id="HE4F10B6276054CEF94AEEF46693F31A0"><enum>(A)</enum><header>In
general</header><text>The Secretary shall establish, coordinate, and monitor
the administration by the Department of Housing and Urban Development of the
counseling procedures for homeownership counseling and rental housing
counseling provided in connection with any program of the Department, including
all requirements, standards, and performance measures that relate to
homeownership and rental housing counseling.</text>
</subparagraph><subparagraph id="HED62B4A10ADF4908A071D9CBDF96286F"><enum>(B)</enum><header>Homeownership
counseling</header><text>For purposes of this subsection and as used in the
provisions referred to in this subparagraph, the term <term>homeownership
counseling</term> means counseling related to homeownership and residential
mortgage loans. Such term includes counseling related to homeownership and
residential mortgage loans that is provided pursuant to—</text>
<clause id="HC3E5F6716CC44286AE7AA8C73DA6C42D"><enum>(i)</enum><text>section 105(a)(20)
of the <act-name parsable-cite="HCDA">Housing and Community Development Act of
1974</act-name> (42 U.S.C. 5305(a)(20));</text>
</clause><clause id="H6C3EB21DCA1142D2AE6AFAE7AC60F5D1"><enum>(ii)</enum><text>in the
<act-name parsable-cite="USHA">United States Housing Act of
1937</act-name>—</text>
<subclause id="H0F5C57EDE308461E9F7A0F08CF2C2966"><enum>(I)</enum><text>section 9(e) (42
U.S.C. 1437g(e));</text>
</subclause><subclause id="H4DCB961EF4A54A7793D222CE69EA407F"><enum>(II)</enum><text>section
8(y)(1)(D) (42 U.S.C. 1437f(y)(1)(D));</text>
</subclause><subclause id="H36AD3C007C61427FA30DBD42C3B4ADF1"><enum>(III)</enum><text>section
18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));</text>
</subclause><subclause id="H626EFB15AAC9405486BEB87EA4E7381A"><enum>(IV)</enum><text>section 23(c)(4)
(42 U.S.C. 1437u(c)(4));</text>
</subclause><subclause id="H70FBEEA8DC8E4EBE975F131E76F2F085"><enum>(V)</enum><text>section 32(e)(4)
(42 U.S.C. 1437z–4(e)(4));</text>
</subclause><subclause id="H43DB51A77032458F85F258BDC487D6B3"><enum>(VI)</enum><text>section
33(d)(2)(B) (42 U.S.C. 1437z–5(d)(2)(B));</text>
</subclause><subclause id="H5E9251B7AA8941F39AF8087B4208ABEA"><enum>(VII)</enum><text>sections
302(b)(6) and 303(b)(7) (42 U.S.C. 1437aaa–1(b)(6), 1437aaa–2(b)(7));
and</text>
</subclause><subclause id="H51B7A80466BC4A1CAB2C86457DA2658C"><enum>(VIII)</enum><text>section
304(c)(4) (42 U.S.C. 1437aaa–3(c)(4));</text>
</subclause></clause><clause id="HE1C2D4B8DB024C6891BD824F3CAB51E2"><enum>(iii)</enum><text>section
302(a)(4) of the American Homeownership and Economic Opportunity Act of 2000
(42 U.S.C. 1437f note);</text>
</clause><clause id="HE2D02EC589304EB09429E837BDFF3476"><enum>(iv)</enum><text>sections
233(b)(2) and 258(b) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez
National Affordable Housing Act</act-name> (42 U.S.C. 12773(b)(2),
12808(b));</text>
</clause><clause id="HF97C03C1DB014209AB5BB807644B2CAB"><enum>(v)</enum><text>this section and
section 101(e) of the <act-name parsable-cite="HUDA">Housing and Urban
Development Act</act-name> of 1968 (12 U.S.C. 1701x, 1701w(e));</text>
</clause><clause id="HA500BE63796D479A8FF53925699130FB"><enum>(vi)</enum><text>section
220(d)(2)(G) of the Low-Income Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4110(d)(2)(G));</text>
</clause><clause id="HCDE132143EEE4A9AABC3784ACB254FF9"><enum>(vii)</enum><text>sections
422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), and 443(b)(6) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), 12892(b)(6),
and 12893(b)(6));</text>
</clause><clause id="H1B250E41FC454283AD7F64F7DC90673C"><enum>(viii)</enum><text>section
491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11408(b)(1)(F)(iii));</text>
</clause><clause id="HE6CCA6F8F78F444A84CD069DC87D5D51"><enum>(ix)</enum><text>sections 202(3)
and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of
1996 (25 U.S.C. 4132(3), 4229(b)(2)(A));</text>
</clause><clause id="H70E61E7142BF420DAE5D7D16ED4B9313"><enum>(x)</enum><text>in
the <act-name parsable-cite="NHA">National Housing Act</act-name>—</text>
<subclause id="HC94C3202A3474D579DD408A329FF7BCD"><enum>(I)</enum><text>in section 203 (12
U.S.C. 1709), the penultimate undesignated paragraph of paragraph (2) of
subsection (b), subsection (c)(2)(A), and subsection (r)(4);</text>
</subclause><subclause id="H5FF7BCFE575E4A5FA6041381AEBC2956"><enum>(II)</enum><text>subsections (a)
and (c)(3) of section 237 (12 U.S.C. 1715z–2); and</text>
</subclause><subclause id="H037B6FDDC30342DFBE1C83C89AC60CC4"><enum>(III)</enum><text>subsections
(d)(2)(B) and (m)(1) of section 255 (12 U.S.C. 1715z–20);</text>
</subclause></clause><clause id="H2BD24A08B3244652873B6C8B0A24CBA7"><enum>(xi)</enum><text>section
502(h)(4)(B) of the <act-name parsable-cite="HA49">Housing Act of
1949</act-name> (42 U.S.C. 1472(h)(4)(B));</text>
</clause><clause id="HDAFC246884C849459940BA95757AC549"><enum>(xii)</enum><text>section 508 of
the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name>
of 1970 (12 U.S.C. 1701z–7); and</text>
</clause><clause id="HF06EA0367B504172B854182821FBAE37"><enum>(xiii)</enum><text display-inline="yes-display-inline">section 106 of the Energy Policy Act of
1992 (42 U.S.C. 12712 note).</text>
</clause></subparagraph><subparagraph id="H94C24FCC3E6643FAA238BB139297B8BF"><enum>(C)</enum><header>Rental housing
counseling</header><text>For purposes of this subsection, the term <term>rental
housing counseling</term> means counseling related to rental of residential
property, which may include counseling regarding future homeownership
opportunities and providing referrals for renters and prospective renters to
entities providing counseling and shall include counseling related to such
topics that is provided pursuant to—</text>
<clause id="HCC31DC2C7BEE44958CBF894182F9F452"><enum>(i)</enum><text>section 105(a)(20)
of the <act-name parsable-cite="HCDA">Housing and Community Development Act of
1974</act-name> (42 U.S.C. 5305(a)(20));</text>
</clause><clause id="H516A65C566AC4F2DB1D331ED5BEAB7B7"><enum>(ii)</enum><text>in the
<act-name parsable-cite="USHA">United States Housing Act of
1937</act-name>—</text>
<subclause id="H7AE0A79A8213485DB3AEEA57998D9B95"><enum>(I)</enum><text>section 9(e) (42
U.S.C. 1437g(e));</text>
</subclause><subclause id="H71AF8A0398A042BBBB210ED530BC3554"><enum>(II)</enum><text>section
18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));</text>
</subclause><subclause id="HDD115D9B56F64490A8B5F79A13CBFEEB"><enum>(III)</enum><text>section 23(c)(4)
(42 U.S.C. 1437u(c)(4));</text>
</subclause><subclause id="H8D94E28364844E228A8B84A65F318369"><enum>(IV)</enum><text>section 32(e)(4)
(42 U.S.C. 1437z–4(e)(4));</text>
</subclause><subclause id="H1628F9CDABB745F981B8F9D3D14C3AC0"><enum>(V)</enum><text>section
33(d)(2)(B) (42 U.S.C. 1437z–5(d)(2)(B)); and</text>
</subclause><subclause id="H384FB2EAAF6A4AEDAFA5CC75FFDD9B3D"><enum>(VI)</enum><text>section 302(b)(6)
(42 U.S.C. 1437aaa–1(b)(6));</text>
</subclause></clause><clause id="H7AC33EC832DC400A83C6974DAEA9E378"><enum>(iii)</enum><text>section
233(b)(2) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National
Affordable Housing Act</act-name> (42 U.S.C. 12773(b)(2));</text>
</clause><clause id="H7DABCC7CE8714E299BF197742324CDD0"><enum>(iv)</enum><text>section 106 of
the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name>
of 1968 (12 U.S.C. 1701x);</text>
</clause><clause id="H5E1CFFBF36B54783B5FA9859534D9F67"><enum>(v)</enum><text>section 422(b)(6)
of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable
Housing Act</act-name> (42 U.S.C. 12872(b)(6));</text>
</clause><clause id="H50F37FA6F0CF4496B447EAB591C1BE8C"><enum>(vi)</enum><text>section
491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11408(b)(1)(F)(iii));</text>
</clause><clause id="HCE85913A820F42459EC2647E947B910F"><enum>(vii)</enum><text>sections 202(3)
and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of
1996 (25 U.S.C. 4132(3), 4229(b)(2)(A)); and</text>
</clause><clause id="HFCFF6D0FEDC44F3B962107F21F3F4A06"><enum>(viii)</enum><text>the rental
assistance program under section 8 of the <act-name parsable-cite="USHA">United
States Housing Act of 1937</act-name> (42 U.S.C. 1437f).</text>
</clause></subparagraph></paragraph><paragraph id="H4BF56A8446B64937BD1E2F1CBC2BEEB9"><enum>(2)</enum><header>Standards for
materials</header><text display-inline="yes-display-inline">The Secretary, in
consultation with the advisory committee established under subsection (g)(4) of
the Department of Housing and Urban Development Act, shall establish standards
for materials and forms to be used, as appropriate, by organizations providing
homeownership counseling services, including any recipients of assistance
pursuant to subsection (a)(4).</text>
</paragraph><paragraph id="HE048191FCE444109B5BD83917305042A"><enum>(3)</enum><header>Mortgage
software systems</header>
<subparagraph id="HCCCF314CEE2A4EA58714423379548A9D"><enum>(A)</enum><header>Certification</header><text>The
Secretary shall provide for the certification of various computer software
programs for consumers to use in evaluating different residential mortgage loan
proposals. The Secretary shall require, for such certification, that the
mortgage software systems take into account—</text>
<clause id="HDE7E348D80B642C38B66212C684FEB28"><enum>(i)</enum><text>the consumer’s
financial situation and the cost of maintaining a home, including insurance,
taxes, and utilities;</text>
</clause><clause id="HC3D2E9F6FA6D4C8FB924B6F63576D858"><enum>(ii)</enum><text>the amount of
time the consumer expects to remain in the home or expected time to maturity of
the loan; and</text>
</clause><clause id="H7E99218F0EA94F5386DCD2A78009D6AA"><enum>(iii)</enum><text>such other
factors as the Secretary considers appropriate to assist the consumer in
evaluating whether to pay points, to lock in an interest rate, to select an
adjustable or fixed rate loan, to select a conventional or government-insured
or guaranteed loan and to make other choices during the loan application
process.</text>
</clause><continuation-text continuation-text-level="subparagraph">If the
Secretary determines that available existing software is inadequate to assist
consumers during the residential mortgage loan application process, the
Secretary shall arrange for the development by private sector software
companies of new mortgage software systems that meet the Secretary’s
specifications.</continuation-text></subparagraph><subparagraph id="HA563F3ACC7D64788B676890F1C6B867C"><enum>(B)</enum><header>Use and initial
availability</header><text>Such certified computer software programs shall be
used to supplement, not replace, housing counseling. The Secretary shall
provide that such programs are initially used only in connection with the
assistance of housing counselors certified pursuant to subsection (e).</text>
</subparagraph><subparagraph id="H3B4075FA549745489AE647461FABD0D2"><enum>(C)</enum><header>Availability</header><text>After
a period of initial availability under subparagraph (B) as the Secretary
considers appropriate, the Secretary shall take reasonable steps to make
mortgage software systems certified pursuant to this paragraph widely available
through the Internet and at public locations, including public libraries,
senior-citizen centers, public housing sites, offices of public housing
agencies that administer rental housing assistance vouchers, and housing
counseling centers.</text>
</subparagraph><subparagraph id="HD273B3E58E32438BAE0DF722F32EB1B3"><enum>(D)</enum><header>Budget
compliance</header><text display-inline="yes-display-inline">This paragraph
shall be effective only to the extent that amounts to carry out this paragraph
are made available in advance in appropriations Acts.</text>
</subparagraph></paragraph><paragraph id="H5B7C22D56FE546EEA6122A51346BDDB4"><enum>(4)</enum><header>National public
service multimedia campaigns to promote housing counseling</header>
<subparagraph id="H12F3ECC5C0AE4E9BB18AFB91AB29BFEA"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director of
Housing Counseling shall develop, implement, and conduct national public
service multimedia campaigns designed to make persons facing mortgage
foreclosure, persons considering a subprime mortgage loan to purchase a home,
elderly persons, persons who face language barriers, low-income persons,
minorities, and other potentially vulnerable consumers aware that it is
advisable, before seeking or maintaining a residential mortgage loan, to obtain
homeownership counseling from an unbiased and reliable sources and that such
homeownership counseling is available, including through programs sponsored by
the Secretary of Housing and Urban Development.</text>
</subparagraph><subparagraph id="H7103CAB3A76845DA8E86E4F9E8BBCE8C"><enum>(B)</enum><header>Contact
information</header><text display-inline="yes-display-inline">Each segment of
the multimedia campaign under subparagraph (A) shall publicize the toll-free
telephone number and website of the Department of Housing and Urban Development
through which persons seeking housing counseling can locate a housing
counseling agency in their State that is certified by the Secretary of Housing
and Urban Development and can provide advice on buying a home, renting,
defaults, foreclosures, credit issues, and reverse mortgages.</text>
</subparagraph><subparagraph id="HE02777B2436F47ABB1A170135309E311"><enum>(C)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary, not to exceed $3,000,000 for
fiscal years 2009, 2010, and 2011, for the development, implementation, and
conduct of national public service multimedia campaigns under this
paragraph.</text>
</subparagraph><subparagraph id="H50CEC8F889184898905CC5D5ED2EDB97"><enum>(D)</enum><header>Foreclosure
rescue education programs</header>
<clause id="HC0E509A8CC2C45488B67E90CAD8CBF3E"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Ten percent of any
funds appropriated pursuant to the authorization under subparagraph (C) shall
be used by the Director of Housing Counseling to conduct an education program
in areas that have a high density of foreclosure. Such program shall involve
direct mailings to persons living in such areas describing—</text>
<subclause id="HB5F2FA785F054BC0A5DB3F0F2690C93D"><enum>(I)</enum><text>tips on avoiding
foreclosure rescue scams;</text>
</subclause><subclause id="H03CD8472035345D58E5BA3CD6ABCD152"><enum>(II)</enum><text>tips on avoiding
predatory lending mortgage agreements;</text>
</subclause><subclause id="HEA6B308B0B3D4E88ACEF10B4E67F8549"><enum>(III)</enum><text>tips on avoiding
for-profit foreclosure counseling services; and</text>
</subclause><subclause id="H87A9453D74EF447AAB9C9DD33B7C97E2"><enum>(IV)</enum><text>local counseling
resources that are approved by the Department of Housing and Urban
Development.</text>
</subclause></clause><clause id="HAB85D0C372D442DF86BB01245DEC4195"><enum>(ii)</enum><header>Program
emphasis</header><text>In conducting the education program described under
clause (i), the Director of Housing Counseling shall also place an emphasis on
serving communities that have a high percentage of retirement communities or a
high percentage of low-income minority communities.</text>
</clause><clause id="H746DD344A6A24748961FF9B813421E69"><enum>(iii)</enum><header>Terms
defined</header><text display-inline="yes-display-inline">For purposes of this
subparagraph:</text>
<subclause id="H4124055BD1E24534840E2A91C6B19FC6"><enum>(I)</enum><header>High density of
foreclosures</header><text display-inline="yes-display-inline">An area has a
<term>high density of foreclosures</term> if such area is one of the
metropolitan statistical areas (as that term is defined by the Director of the
Office of Management and Budget) with the highest home foreclosure
rates.</text>
</subclause><subclause id="HCDCA66E9BD2D47869783097CCB1BA61D"><enum>(II)</enum><header>High percentage
of retirement communities</header><text display-inline="yes-display-inline">An
area has a <term>high percentage of retirement communities</term> if such area
is one of the metropolitan statistical areas (as that term is defined by the
Director of the Office of Management and Budget) with the highest percentage of
residents aged 65 or older.</text>
</subclause><subclause id="H0BF3D1FF96714A2FAA5EA18A9153BF0D"><enum>(III)</enum><header>High
percentage of low-income minority communities</header><text>An area has a
<term>high percentage of low-income minority communities</term> if such area
contains a higher-than-normal percentage of residents who are both minorities
and low-income, as defined by the Director of Housing Counseling.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H0CBA26BF88FF44619213ED5F8FBD2EE5"><enum>(5)</enum><header>Education
programs</header><text display-inline="yes-display-inline">The Secretary shall
provide advice and technical assistance to States, units of general local
government, and nonprofit organizations regarding the establishment and
operation of, including assistance with the development of content and
materials for, educational programs to inform and educate consumers,
particularly those most vulnerable with respect to residential mortgage loans
(such as elderly persons, persons facing language barriers, low-income persons,
minorities, and other potentially vulnerable consumers), regarding home
mortgages, mortgage refinancing, home equity loans, home repair loans, and
where appropriate by region, any requirements and costs associated with
obtaining flood or other disaster-specific insurance
coverage.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9783D13D49134B9C9023F473FD971B2D"><enum>(b)</enum><header>Conforming
amendments to grant program for homeownership counseling
organizations</header><text>Section 106(c)(5)(A)(ii) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended—</text>
<paragraph id="H76B0F4C1755D4BEA95E5DD4A749A109C"><enum>(1)</enum><text>in subclause
(III), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H6B1D81AD000847D487EC1D8B04BC9889"><enum>(2)</enum><text>in subclause (IV)
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H932BF9C17AC5445B8D936FCA1C0141F9"><enum>(3)</enum><text>by inserting after
subclause (IV) the following new subclause:</text>
<quoted-block id="H54D8276D2C5F463EBD46A278603B0B8C">
<subclause id="H8F8DE6C65C5F4CFD8347BA4E02421814"><enum>(V)</enum><text>notify the housing
or mortgage applicant of the availability of mortgage software systems provided
pursuant to subsection
(g)(3).</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HDCDB35381EC4405FB30434713EE8C13B"><enum>1444.</enum><header>Grants for
housing counseling assistance</header><text display-inline="no-display-inline">Section 106(a) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(a)) is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="Housing" id="H0D395CBA6BA247CDB8C8610173226B04">
<paragraph id="H41185E21123C435C8F73F8F6C6C44726" indent="up1"><enum>(4)</enum><header>Homeownership and rental counseling
assistance</header>
<subparagraph id="H2AD4DAB6C4614BD39D97DA015CC1A4B3"><enum>(A)</enum><header>In general</header><text>The
Secretary shall make financial assistance available under this paragraph to
HUD-approved housing counseling agencies and State housing finance
agencies.</text>
</subparagraph><subparagraph id="H5C6900DF280747FEB6C8DBA67570AF90"><enum>(B)</enum><header>Qualified entities</header><text>The
Secretary shall establish standards and guidelines for eligibility of
organizations (including governmental and nonprofit organizations) to receive
assistance under this paragraph, in accordance with subparagraph (D).</text>
</subparagraph><subparagraph id="H05BAC9DFEE6C4B27AAAF5CEABABD6CCB"><enum>(C)</enum><header>Distribution</header><text display-inline="yes-display-inline">Assistance made available under this
paragraph shall be distributed in a manner that encourages efficient and
successful counseling programs and that ensures adequate distribution of
amounts for rural areas having traditionally low levels of access to such
counseling services, including areas with insufficient access to the Internet.
In distributing such assistance, the Secretary may give priority consideration
to entities serving areas with the highest home foreclosure rates.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H686FF37ADA1541F0A56B8EC5907858E0"><enum>(D)</enum><header>Limitation on distribution of
assistance</header>
<clause id="H21F7578572174032A7896EA1B77EE48B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">None of the amounts made available under
this paragraph shall be distributed to—</text>
<subclause id="HF6E81A01B5E845629041B9483737E221"><enum>(I)</enum><text>any organization which has been convicted
for a violation under Federal law relating to an election for Federal office;
or</text>
</subclause><subclause id="H55C71FEDB75C4B6EAFF8CBDB1BBDD823"><enum>(II)</enum><text>any organization which employs
applicable individuals.</text>
</subclause></clause><clause id="HCB3057AB2F0B444F81CCD9E9A6AF56F3"><enum>(ii)</enum><header>Definition of applicable
individuals</header><text display-inline="yes-display-inline">In this
subparagraph, the term <quote>applicable individual</quote> means an individual
who—</text>
<subclause id="H94AC9BCC55024CC39B0527B7D4A0E456"><enum>(I)</enum><text>is—</text>
<item id="HB2BC5A3E0C4945FCADAB97EA67604E14"><enum>(aa)</enum><text>employed by the organization in a
permanent or temporary capacity;</text>
</item><item id="H72A160098DB44343858BE53EA5CBB23E"><enum>(bb)</enum><text>contracted or retained by the
organization; or</text>
</item><item id="HE61F2FDC1D3F4389B876D913B23A3F73"><enum>(cc)</enum><text>acting on behalf of, or with the
express or apparent authority of, the organization; and</text>
</item></subclause><subclause display-inline="no-display-inline" id="H9B38649CE5C64D088BE4609E385B33E4"><enum>(II)</enum><text display-inline="yes-display-inline">has been convicted for a violation under
Federal law relating to an election for Federal office.</text>
</subclause></clause></subparagraph><subparagraph display-inline="no-display-inline" id="HAAF2C70A79104CCCB1FBA8692DE0984A"><enum>(E)</enum><header>Grantmaking process</header><text display-inline="yes-display-inline">In making assistance available under this
paragraph, the Secretary shall consider appropriate ways of streamlining and
improving the processes for grant application, review, approval, and
award.</text>
</subparagraph><subparagraph id="H9CF192408A1849C8BA1F9D698955534F"><enum>(F)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated
$45,000,000 for each of fiscal years 2009 through 2012 for—</text>
<clause id="HFC8A686F60484AED967F6A385923C15A"><enum>(i)</enum><text>the operations of the Office of
Housing Counseling of the Department of Housing and Urban Development;</text>
</clause><clause id="HCD4B7FD086314B0698D87734FD43E673"><enum>(ii)</enum><text>the responsibilities of the
Director of Housing Counseling under paragraphs (2) through (5) of subsection
(g); and</text>
</clause><clause id="HAFB978B00B194AB8B9FBCB437FE4E1A3"><enum>(iii)</enum><text>assistance pursuant to this
paragraph for entities providing homeownership and rental
counseling.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC86A2E36126042EA988F0597137A0661"><enum>1445.</enum><header>Requirements
to use HUD-certified counselors under HUD programs</header><text display-inline="no-display-inline">Section
106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development
Act</act-name> of 1968 (12 U.S.C. 1701x(e)) is amended—</text>
<paragraph id="HF61ED85D9B5747F688C889B019DE7FFA"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="HF931CDE4BB0A48BAB0EFB17AA9015FF6">
<paragraph id="HD2BDAFCD940E4D3087ADF356704D0DAB"><enum>(1)</enum><header>Requirement for
assistance</header><text>An organization may not receive assistance for
counseling activities under subsection (a)(1)(iii), (a)(2), (a)(4), (c), or (d)
of this section, or under section 101(e), unless the organization, or the
individuals through which the organization provides such counseling, has been
certified by the Secretary under this subsection as competent to provide such
counseling.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H971174CE63FB410A9D682615AB14C30A"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HDB084E6D8BD94E12907BBE640F1FFE77"><enum>(A)</enum><text>by inserting
<quote>and for certifying organizations</quote> before the period at the end of
the first sentence; and</text>
</subparagraph><subparagraph id="H7265E1CC082E46179619EE208CCF7337"><enum>(B)</enum><text>in the second
sentence by striking <quote>for certification</quote> and inserting <quote>,
for certification of an organization, that each individual through which the
organization provides counseling shall demonstrate, and, for certification of
an individual,</quote>;</text>
</subparagraph></paragraph><paragraph id="HCEA0298FEE5E47F2A8D39AF15216A00C"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>organizations and</quote> before
<quote>individuals</quote>;</text>
</paragraph><paragraph id="H46D4F63BAE0543F890B66F4CC793BDB8"><enum>(4)</enum><text>by redesignating
paragraph (3) as paragraph (5); and</text>
</paragraph><paragraph id="HD7190B10FA58433E9E6E9B3A71A07AE0"><enum>(5)</enum><text>by inserting after
paragraph (2) the following new paragraphs:</text>
<quoted-block id="HA6BCD16B89AC4ED7891840FEB605F6C4">
<paragraph id="H93276018724C424E822C70BE233E2274"><enum>(3)</enum><header>Requirement
under hud programs</header><text>Any homeownership counseling or rental housing
counseling (as such terms are defined in subsection (g)(1)) required under, or
provided in connection with, any program administered by the Department of
Housing and Urban Development shall be provided only by organizations or
counselors certified by the Secretary under this subsection as competent to
provide such counseling.</text>
</paragraph><paragraph id="H57BA8CFF06E7413B8FB6057CB40E22C3"><enum>(4)</enum><header>Outreach</header><text>The
Secretary shall take such actions as the Secretary considers appropriate to
ensure that individuals and organizations providing homeownership or rental
housing counseling are aware of the certification requirements and standards of
this subsection and of the training and certification programs under subsection
(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="H08060D06852C429592834004FA511A17"><enum>1446.</enum><header>Study of
defaults and foreclosures</header><text display-inline="no-display-inline">The
Secretary of Housing and Urban Development shall conduct an extensive study of
the root causes of default and foreclosure of home loans, using as much
empirical data as are available. The study shall also examine the role of
escrow accounts in helping prime and nonprime borrowers to avoid defaults and
foreclosures, and the role of computer registries of mortgages, including those
used for trading mortgage loans. Not later than 12 months after the date of the
enactment of this Act, the Secretary shall submit to the Congress a preliminary
report regarding the study. Not later than 24 months after such date of
enactment, the Secretary shall submit a final report regarding the results of
the study, which shall include any recommended legislation relating to the
study, and recommendations for best practices and for a process to identify
populations that need counseling the most.</text>
</section><section display-inline="no-display-inline" id="HFB7C9DFD2A24443A8691B0CCEB3D6912"><enum>1447.</enum><header>Default and
foreclosure database</header>
<subsection id="H431FE7E618BF4CE58ABA6CD807F1389E"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development and the Director of the Bureau, in consultation with the Federal
agencies responsible for regulation of banking and financial institutions
involved in residential mortgage lending and servicing, shall establish and
maintain a database of information on foreclosures and defaults on mortgage
loans for one- to four-unit residential properties and shall make such
information publicly available, subject to subsection (e).</text>
</subsection><subsection id="HB1F0F51C88A54F169C3F7783DBE44CD6"><enum>(b)</enum><header>Census tract
data</header><text>Information in the database may be collected, aggregated,
and made available on a census tract basis.</text>
</subsection><subsection id="HAA3A213A3DB54B26B36C3BD19E11F03E"><enum>(c)</enum><header>Requirements</header><text>Information
collected and made available through the database shall include—</text>
<paragraph id="H3646DC2ECB354CA4B4B07D070D68B4ED"><enum>(1)</enum><text display-inline="yes-display-inline">the number and percentage of such mortgage
loans that are delinquent by more than 30 days;</text>
</paragraph><paragraph id="H9B003E4499E64803AB63DE423A7A29D8"><enum>(2)</enum><text>the number and
percentage of such mortgage loans that are delinquent by more than 90
days;</text>
</paragraph><paragraph id="HF2C9139AC28C48198E3A14D550CE6C06"><enum>(3)</enum><text>the number and
percentage of such properties that are real estate-owned;</text>
</paragraph><paragraph id="H0F6F2073DE564A699DDE4DC402F77EA3"><enum>(4)</enum><text>number and
percentage of such mortgage loans that are in the foreclosure process;</text>
</paragraph><paragraph id="H90B2CF8D32EA44CCBF5F6678E0CE5FF6"><enum>(5)</enum><text>the number and
percentage of such mortgage loans that have an outstanding principal obligation
amount that is greater than the value of the property for which the loan was
made; and</text>
</paragraph><paragraph id="H519A18FF1EB54D8EA7E06FA47147233B"><enum>(6)</enum><text display-inline="yes-display-inline">such other information as the Secretary of
Housing and Urban Development and the Director of the Bureau consider
appropriate.</text>
</paragraph></subsection><subsection id="H911335AA55EE44DDAAFB2519EF69C403"><enum>(d)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to
encourage discriminatory or unsound allocation of credit or lending policies or
practices.</text>
</subsection><subsection id="HA1EBA802B08D4D498E340A065FFE6D46"><enum>(e)</enum><header>Privacy and
confidentiality</header><text display-inline="yes-display-inline">In
establishing and maintaining the database described in subsection (a), the
Secretary of Housing and Urban Development and the Director of the Bureau
shall—</text>
<paragraph id="H18252917E2184D219C76997A0ED435CD"><enum>(1)</enum><text>be subject to the
standards applicable to Federal agencies for the protection of the
confidentiality of personally identifiable information and for data security
and integrity;</text>
</paragraph><paragraph id="H50114634897F44DE9210514E535F8396"><enum>(2)</enum><text>implement the
necessary measures to conform to the standards for data integrity and security
described in paragraph (1); and</text>
</paragraph><paragraph id="H8D16AD9E686247AC99ED1EE9C7B2AA8F"><enum>(3)</enum><text>collect and make
available information under this section, in accordance with paragraphs (5) and
(6) of section 1022(c) and the rules prescribed under such paragraphs, in order
to protect privacy and confidentiality.</text>
</paragraph></subsection></section><section id="HAA4E85D851A549F190CB5AF7AFAF637F"><enum>1448.</enum><header>Definitions
for counseling-related programs</header><text display-inline="no-display-inline">Section 106 of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x), as amended by the preceding provisions of this
subtitle, is amended by adding at the end the following new subsection:</text>
<quoted-block act-name="Housing" id="H949E05C3CDA14BF5BCA7D29C153D280C">
<subsection id="H49D054DC1DDE46FB99A70498DFCA2B3F"><enum>(h)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="H17BD6FEE1C924DB1B50B49F194A4D3B4"><enum>(1)</enum><header>Nonprofit
organization</header><text>The term <term>nonprofit organization</term> has the
meaning given such term in section 104(5) of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name> (42 U.S.C. 12704(5)), except that subparagraph (D) of such
section shall not apply for purposes of this section.</text>
</paragraph><paragraph id="H8CAE525C87454A7AAF2FB2D64E03E24D"><enum>(2)</enum><header>State</header><text>The
term <term>State</term> means each of the several States, the Commonwealth of
Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana
Islands, Guam, the Virgin Islands, American Samoa, the Trust Territories of the
Pacific, or any other possession of the United States.</text>
</paragraph><paragraph id="HE4D4E8BE7C3A44738F4ABCB44AC2B659"><enum>(3)</enum><header>Unit of general
local government</header><text>The term <term>unit of general local
government</term> means any city, county, parish, town, township, borough,
village, or other general purpose political subdivision of a State.</text>
</paragraph><paragraph id="H8F7F91857B4B4C849C5571DDA9A9415C"><enum>(4)</enum><header>HUD-approved
counseling agency</header><text display-inline="yes-display-inline">The term
<term>HUD-approved counseling agency</term> means a private or public nonprofit
organization that is—</text>
<subparagraph id="HD981F5404E434A2B890F5C966F9D02D3"><enum>(A)</enum><text>exempt from
taxation under section 501(c) of the Internal Revenue Code of 1986; and</text>
</subparagraph><subparagraph id="HFFE79BFCCB46434F84E02DFEF28AF36C"><enum>(B)</enum><text>certified by the
Secretary to provide housing counseling services.</text>
</subparagraph></paragraph><paragraph id="HD3EE541FE786412A85FF25D35AA2DD79"><enum>(5)</enum><header>State housing
finance agency</header><text>The term <term>State housing finance agency</term>
means any public body, agency, or instrumentality specifically created under
State statute that is authorised to finance activities designed to provide
housing and related facilities throughout an entire State through land
acquisition, construction, or
rehabilitation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HB70AF36A87364139B2ED5ACD17FE9FD7"><enum>1449.</enum><header>Accountability
and transparency for grant recipients</header><text display-inline="no-display-inline">Section 106 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x), as amended by the preceding
provisions of this subtitle, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H2A85A5D8C6224129A3D8CB81DA1A3FCF" style="OLC">
<subsection id="H07D294939E384979A8DDF840AFD6C187"><enum>(i)</enum><header>Accountability
for recipients of covered assistance</header>
<paragraph id="H9A727C5227074B049DB268FA3A695168"><enum>(1)</enum><header>Tracking of
funds</header><text display-inline="yes-display-inline">The Secretary
shall—</text>
<subparagraph id="H7F3492F48B264BB999B69A2318D17049"><enum>(A)</enum><text display-inline="yes-display-inline">develop and maintain a system to ensure
that any organization or entity that receives any covered assistance uses all
amounts of covered assistance in accordance with this section, the regulations
issued under this section, and any requirements or conditions under which such
amounts were provided; and</text>
</subparagraph><subparagraph id="HBE17956D3D87488EB5B7B2B6BEE7CCD5"><enum>(B)</enum><text display-inline="yes-display-inline">require any organization or entity, as a
condition of receipt of any covered assistance, to agree to comply with such
requirements regarding covered assistance as the Secretary shall establish,
which shall include—</text>
<clause id="HA971641B08644500BFEC1A5A24B22B3E"><enum>(i)</enum><text display-inline="yes-display-inline">appropriate periodic financial and grant
activity reporting, record retention, and audit requirements for the duration
of the covered assistance to the organization or entity to ensure compliance
with the limitations and requirements of this section, the regulations under
this section, and any requirements or conditions under which such amounts were
provided; and</text>
</clause><clause id="H8D9224A93A294D138D227ECD28BCE9B7"><enum>(ii)</enum><text>any other
requirements that the Secretary determines are necessary to ensure appropriate
administration and compliance.</text>
</clause></subparagraph></paragraph><paragraph id="H8F2C8F7255DD44728023F31789D156AB"><enum>(2)</enum><header>Misuse of
funds</header><text display-inline="yes-display-inline">If any organization or
entity that receives any covered assistance is determined by the Secretary to
have used any covered assistance in a manner that is materially in violation of
this section, the regulations issued under this section, or any requirements or
conditions under which such assistance was provided—</text>
<subparagraph id="HBDB82EDFC4E1419F8C920CE99B3BEC1D"><enum>(A)</enum><text>the Secretary
shall require that, within 12 months after the determination of such misuse,
the organization or entity shall reimburse the Secretary for such misused
amounts and return to the Secretary any such amounts that remain unused or
uncommitted for use; and</text>
</subparagraph><subparagraph id="H8D5B45028A284CDBB3950034CCC85034"><enum>(B)</enum><text display-inline="yes-display-inline">such organization or entity shall be
ineligible, at any time after such determination, to apply for or receive any
further covered assistance.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
remedies under this paragraph are in addition to any other remedies that may be
available under law.</continuation-text></paragraph><paragraph id="H8378E74BC503463685F8CB30FA600DC3"><enum>(3)</enum><header>Covered
assistance</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <quote>covered assistance</quote> means any grant or
other financial assistance provided under this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HDA25C5B6610843F6882392460DA9CAF5"><enum>1450.</enum><header>Updating and
simplification of mortgage information booklet</header><text display-inline="no-display-inline">Section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604) is amended—</text>
<paragraph id="H3605464ADE144013B263E4C71BE1E211"><enum>(1)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="traditional">special</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="traditional">home
buying</header-in-text></quote>;</text>
</paragraph><paragraph id="H27CC66107D3F4B0DA66E6F7FB72E2428"><enum>(2)</enum><text>by striking
subsections (a) and (b) and inserting the following new subsections:</text>
<quoted-block id="H2938F323613545D4B169EBD363D09EA6">
<subsection id="HCA6646A0D31446BFAE057313F7777162"><enum>(a)</enum><header>Preparation and
distribution</header><text>The Director of the Bureau of Consumer Financial
Protection (hereafter in this section referred to as the
<quote>Director</quote>) shall prepare, at least once every 5 years, a booklet
to help consumers applying for federally related mortgage loans to understand
the nature and costs of real estate settlement services. The Director shall
prepare the booklet in various languages and cultural styles, as the Director
determines to be appropriate, so that the booklet is understandable and
accessible to homebuyers of different ethnic and cultural backgrounds. The
Director shall distribute such booklets to all lenders that make federally
related mortgage loans. The Director shall also distribute to such lenders
lists, organized by location, of homeownership counselors certified under
section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban
Development Act</act-name> of 1968 (12 U.S.C. 1701x(e)) for use in complying
with the requirement under subsection (c) of this section.</text>
</subsection><subsection id="H2F9A7F0461184BD0A3E787AFF7059D41"><enum>(b)</enum><header>Contents</header><text>Each
booklet shall be in such form and detail as the Director shall prescribe and,
in addition to such other information as the Director may provide, shall
include in plain and understandable language the following information:</text>
<paragraph id="HD69FF290D6CB4CABB64CC613B550EBE2"><enum>(1)</enum><text>A description and
explanation of the nature and purpose of the costs incident to a real estate
settlement or a federally related mortgage loan. The description and
explanation shall provide general information about the mortgage process as
well as specific information concerning, at a minimum—</text>
<subparagraph id="H3A4BB3E3C9014710979D620EB09BFF3A"><enum>(A)</enum><text>balloon
payments;</text>
</subparagraph><subparagraph id="H96EC5F82B6774094AD027799329F5900"><enum>(B)</enum><text>prepayment
penalties;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H38A3534FCA0E4460AC98FA87B2140CFA"><enum>(C)</enum><text display-inline="yes-display-inline">the advantages of prepayment; and</text>
</subparagraph><subparagraph id="H8CCF8349D0644D0FA32BFF7F20B57B9B"><enum>(D)</enum><text>the trade-off
between closing costs and the interest rate over the life of the loan.</text>
</subparagraph></paragraph><paragraph id="H4E7F14A1806042C88A93DC1BAE85C772"><enum>(2)</enum><text>An explanation and
sample of the uniform settlement statement required by section 4.</text>
</paragraph><paragraph id="H3935E2A792B6449FAB049587CB020FF9"><enum>(3)</enum><text>A list and
explanation of lending practices, including those prohibited by the Truth in
Lending Act or other applicable Federal law, and of other unfair practices and
unreasonable or unnecessary charges to be avoided by the prospective buyer with
respect to a real estate settlement.</text>
</paragraph><paragraph id="H42DEDC7E0ABA4DB8BD551626E1A7599D"><enum>(4)</enum><text>A list and
explanation of questions a consumer obtaining a federally related mortgage loan
should ask regarding the loan, including whether the consumer will have the
ability to repay the loan, whether the consumer sufficiently shopped for the
loan, whether the loan terms include prepayment penalties or balloon payments,
and whether the loan will benefit the borrower.</text>
</paragraph><paragraph id="H7B5AAA412296416AA4BAFEDB74A3FC3C"><enum>(5)</enum><text>An explanation of
the right of rescission as to certain transactions provided by sections 125 and
129 of the Truth in Lending Act.</text>
</paragraph><paragraph id="H711FC0A0C2ED46DAB353D157AD997E2F"><enum>(6)</enum><text>A brief
explanation of the nature of a variable rate mortgage and a reference to the
booklet entitled <quote>Consumer Handbook on Adjustable Rate Mortgages</quote>,
published by the Director, or to any suitable substitute of such booklet that
the Director may subsequently adopt pursuant to such section.</text>
</paragraph><paragraph id="H2B70327849F34206AF0BCAB2F4DC5F55"><enum>(7)</enum><text>A brief
explanation of the nature of a home equity line of credit and a reference to
the pamphlet required to be provided under section 127A of the Truth in Lending
Act.</text>
</paragraph><paragraph id="HAF1E3D5180584CA0BB40A479F4C18A55"><enum>(8)</enum><text>Information about
homeownership counseling services made available pursuant to section 106(a)(4)
of the <act-name parsable-cite="HUDA">Housing and Urban Development
Act</act-name> of 1968 (12 U.S.C. 1701x(a)(4)), a recommendation that the
consumer use such services, and notification that a list of certified providers
of homeownership counseling in the area, and their contact information, is
available.</text>
</paragraph><paragraph id="HF309819B1BE44AA7BBC4D15520307906"><enum>(9)</enum><text>An explanation of
the nature and purpose of escrow accounts when used in connection with loans
secured by residential real estate and the requirements under section 10 of
this Act regarding such accounts.</text>
</paragraph><paragraph id="H73CEBA073C494E92A3D81223B71170B9"><enum>(10)</enum><text>An explanation of
the choices available to buyers of residential real estate in selecting persons
to provide necessary services incidental to a real estate settlement.</text>
</paragraph><paragraph id="H137A4C2AA518429D968849C650A1DD2D"><enum>(11)</enum><text>An explanation of
a consumer’s responsibilities, liabilities, and obligations in a mortgage
transaction.</text>
</paragraph><paragraph id="H8FA90742F88342EC95585D52193A50B8"><enum>(12)</enum><text>An explanation of
the nature and purpose of real estate appraisals, including the difference
between an appraisal and a home inspection.</text>
</paragraph><paragraph id="H4F73A2E51D7340568BE18DE4B20ED260"><enum>(13)</enum><text>Notice that the
Office of Housing of the Department of Housing and Urban Development has made
publicly available a brochure regarding loan fraud and a World Wide Web address
and toll-free telephone number for obtaining the brochure.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
booklet prepared pursuant to this section shall take into consideration
differences in real estate settlement procedures that may exist among the
several States and territories of the United States and among separate
political subdivisions within the same State and
territory.</continuation-text></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE38E00CCE5834097B8E5D06C798CB713"><enum>(3)</enum><text>in subsection (c),
by inserting at the end the following new sentence: <quote>Each lender shall
also include with the booklet a reasonably complete or updated list of
homeownership counselors who are certified pursuant to section 106(e) of the
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of
1968 (12 U.S.C. 1701x(e)) and located in the area of the lender.</quote>;
and</text>
</paragraph><paragraph id="H627B3688774E410EBC7A9E317D0F1F61"><enum>(4)</enum><text>in subsection (d),
by inserting after the period at the end of the first sentence the following:
<quote>The lender shall provide the booklet in the version that is most
appropriate for the person receiving it.</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HAAFF538D33324FACB1A0C07821876E6B" section-type="subsequent-section"><enum>1451.</enum><header>Home inspection
counseling</header>
<subsection commented="no" id="HDF097F3B94C645F694D477358BC298D0"><enum>(a)</enum><header>Public
outreach</header>
<paragraph commented="no" id="H3B2412BE3A7D4FF3ACB0697B19F4E492"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Housing and Urban Development (in this section referred to as the
<quote>Secretary</quote>) shall take such actions as may be necessary to inform
potential homebuyers of the availability and importance of obtaining an
independent home inspection. Such actions shall include—</text>
<subparagraph commented="no" id="HDBBDA8DEC2B2471B85B394C79216BDB7"><enum>(A)</enum><text>publication of the
HUD/FHA form HUD 92564–CN entitled <quote>For Your Protection: Get a Home
Inspection</quote>, in both English and Spanish languages;</text>
</subparagraph><subparagraph commented="no" id="HAF0FDA7CC77B48F39A5CD5EFA750B634"><enum>(B)</enum><text>publication of the
HUD/FHA booklet entitled <quote>For Your Protection: Get a Home
Inspection</quote>, in both English and Spanish languages;</text>
</subparagraph><subparagraph commented="no" id="H71E82CFD91364B82B1FBCAA14AB97F8E"><enum>(C)</enum><text>development and
publication of a HUD booklet entitled <quote>For Your Protection—Get a Home
Inspection</quote> that does not reference FHA-insured homes, in both English
and Spanish languages; and</text>
</subparagraph><subparagraph commented="no" id="H46965635B94E4C2B804BE72A642D406E"><enum>(D)</enum><text>publication of the
HUD document entitled <quote>Ten Important Questions To Ask Your Home
Inspector</quote>, in both English and Spanish languages.</text>
</subparagraph></paragraph><paragraph commented="no" id="H08B873BD778746FB99039638674E0F07"><enum>(2)</enum><header>Availability</header><text>The
Secretary shall make the materials specified in paragraph (1) available for
electronic access and, where appropriate, inform potential homebuyers of such
availability through home purchase counseling public service announcements and
toll-free telephone hotlines of the Department of Housing and Urban
Development. The Secretary shall give special emphasis to reaching first-time
and low-income homebuyers with these materials and efforts.</text>
</paragraph><paragraph commented="no" id="HB900354C556044CAB3C4D7F0ED404050"><enum>(3)</enum><header>Updating</header><text>The
Secretary may periodically update and revise such materials, as the Secretary
determines to be appropriate.</text>
</paragraph></subsection><subsection commented="no" id="H12439682F7B04CC3B0FD36507A2679F2"><enum>(b)</enum><header>Requirement for
FHA-approved lenders</header><text>Each mortgagee approved for participation in
the mortgage insurance programs under title II of the National Housing Act
shall provide prospective homebuyers, at first contact, whether upon
pre-qualification, pre-approval, or initial application, the materials
specified in subparagraphs (A), (B), and (D) of subsection (a)(1).</text>
</subsection><subsection commented="no" id="H91BE3FE7AB9A43B98DAEE3A91AAD3ACC"><enum>(c)</enum><header>Requirements for
HUD-approved counseling agencies</header><text display-inline="yes-display-inline">Each counseling agency certified pursuant
by the Secretary to provide housing counseling services shall provide each of
their clients, as part of the home purchase counseling process, the materials
specified in subparagraphs (C) and (D) of subsection (a)(1).</text>
</subsection><subsection commented="no" id="HA069C597875F4FEA9BF85E3FFE6BF934"><enum>(d)</enum><header>Training</header><text>Training
provided the Department of Housing and Urban Development for housing counseling
agencies, whether such training is provided directly by the Department or
otherwise, shall include—</text>
<paragraph commented="no" id="H5A9224F4FFE14814BA36CBDEDEB338A2"><enum>(1)</enum><text>providing
information on counseling potential homebuyers of the availability and
importance of getting an independent home inspection;</text>
</paragraph><paragraph commented="no" id="HEF380D68740240F99B2E01731AC66D94"><enum>(2)</enum><text>providing
information about the home inspection process, including the reasons for
specific inspections such as radon and lead-based paint testing;</text>
</paragraph><paragraph commented="no" id="HFE4461DE6A714BF7B8E65BE03D6E4454"><enum>(3)</enum><text>providing
information about advising potential homebuyers on how to locate and select a
qualified home inspector; and</text>
</paragraph><paragraph commented="no" id="H08D01EEC098943FB9132F71A5DC3178B"><enum>(4)</enum><text>review of home
inspection public outreach materials of the Department.</text>
</paragraph></subsection></section><section id="H7EC2CFDF45754D74A98EFF2E20A915D9"><enum>1452.</enum><header>Warnings to
homeowners of foreclosure rescue scams</header>
<subsection id="HA32BDD18265C4C4E9A31A25F1A92D477"><enum>(a)</enum><header>Assistance to
NRC</header><text display-inline="yes-display-inline">Notwithstanding any other
provision of law, of any amounts made available for any fiscal year pursuant to
section 106(a)(4)(F) of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(a)(4)(F)) (as added by section 1444), 10 percent shall be used
only for assistance to the Neighborhood Reinvestment Corporation for
activities, in consultation with servicers of residential mortgage loans, to
provide notice to borrowers under such loans who are delinquent with respect to
payments due under such loans that makes such borrowers aware of the dangers of
fraudulent activities associated with foreclosure.</text>
</subsection><subsection id="HE500276FA551471BAAC9FF6E74EC2E53"><enum>(b)</enum><header>Notice</header><text>The
Neighborhood Reinvestment Corporation, in consultation with servicers of
residential mortgage loans, shall use the amounts provided pursuant to
subsection (a) to carry out activities to inform borrowers under residential
mortgage loans—</text>
<paragraph id="H89AE472C7C4849CEB7258ABA9F2A79D9"><enum>(1)</enum><text>that the
foreclosure process is complex and can be confusing;</text>
</paragraph><paragraph id="H9A8747B347514402AC53EEF094342959"><enum>(2)</enum><text>that the borrower
may be approached during the foreclosure process by persons regarding saving
their home and they should use caution in any such dealings;</text>
</paragraph><paragraph id="H7E0044530B344C28BABC460D628E6813"><enum>(3)</enum><text>that there are
Federal Government and nonprofit agencies that may provide information about
the foreclosure process, including the Department of Housing and Urban
Development;</text>
</paragraph><paragraph id="HFEE9643182D243D9B841E853C65208D4"><enum>(4)</enum><text display-inline="yes-display-inline">that they should contact their lender
immediately, contact the Department of Housing and Urban Development to find a
housing counseling agency certified by the Department to assist in avoiding
foreclosure, or visit the Department’s website regarding tips for avoiding
foreclosure; and</text>
</paragraph><paragraph id="HB6635448BE994056B12FC19E6ABE658E"><enum>(5)</enum><text>of the telephone
number of the loan servicer or successor, the telephone number of the
Department of Housing and Urban Development housing counseling line, and the
Uniform Resource Locators (URLs) for the Department of Housing and Urban
Development Web sites for housing counseling and for tips for avoiding
foreclosure.</text>
</paragraph></subsection></section></subtitle><subtitle id="H09D38064FA04475DB882C80ACF0EA4A0"><enum>E</enum><header>Mortgage
Servicing</header>
<section display-inline="no-display-inline" id="HE57979D5CD0742B0ADBB027E4653E842" section-type="subsequent-section"><enum>1461.</enum><header>Escrow and impound
accounts relating to certain consumer credit transactions</header>
<subsection id="HE22408D3E2FF4940AE3D1D570468FD4C"><enum>(a)</enum><header>In
general</header><text>Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by inserting after section 129C (as added by section 1411) the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H07822BEF6FD8499B9354B100F6A014DD" style="USC">
<section id="HCFD2EE1973F64C9C9AF2F0D14A95B141"><enum>129D.</enum><header>Escrow or
impound accounts relating to certain consumer credit transactions</header>
<subsection id="H9E8BE74C9EA14E9BB84417A83D3DA7A6"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b), (c), (d), or (e), a
creditor, in connection with the consummation of a consumer credit transaction
secured by a first lien on the principal dwelling of the consumer, other than a
consumer credit transaction under an open end credit plan or a reverse
mortgage, shall establish, before the consummation of such transaction, an
escrow or impound account for the payment of taxes and hazard insurance, and,
if applicable, flood insurance, mortgage insurance, ground rents, and any other
required periodic payments or premiums with respect to the property or the loan
terms, as provided in, and in accordance with, this section.</text>
</subsection><subsection id="H755232FBC7234CCA9D781655F8E98CEE"><enum>(b)</enum><header>When
required</header><text>No impound, trust, or other type of account for the
payment of property taxes, insurance premiums, or other purposes relating to
the property may be required as a condition of a real property sale contract or
a loan secured by a first deed of trust or mortgage on the principal dwelling
of the consumer, other than a consumer credit transaction under an open end
credit plan or a reverse mortgage, except when—</text>
<paragraph id="H24CB643887804D609812EBC4DDAA0D14"><enum>(1)</enum><text>any such impound,
trust, or other type of escrow or impound account for such purposes is required
by Federal or State law;</text>
</paragraph><paragraph id="HFFA61F1D7B2842A2BB70C2303B2AB263"><enum>(2)</enum><text>a loan is made,
guaranteed, or insured by a State or Federal governmental lending or insuring
agency;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HE2F6FDB78CB0417CA8A8E0A16CD57630"><enum>(3)</enum><text display-inline="yes-display-inline">the transaction is secured by a first
mortgage or lien on the consumer’s principal dwelling having an original
principal obligation amount that—</text>
<subparagraph id="H909511625ACD47889803C8C41396D078"><enum>(A)</enum><text>does not exceed
the amount of the maximum limitation on the original principal obligation of
mortgage in effect for a residence of the applicable size, as of the date such
interest rate set, pursuant to the sixth sentence of section 305(a)(2) the
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the
annual percentage rate will exceed the average prime offer rate as defined in
section 129C by 1.5 or more percentage points; or</text>
</subparagraph><subparagraph id="H821E0CAD1D314703B8A14B937A6023E0"><enum>(B)</enum><text>exceeds the amount
of the maximum limitation on the original principal obligation of mortgage in
effect for a residence of the applicable size, as of the date such interest
rate set, pursuant to the sixth sentence of section 305(a)(2) the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), and the annual percentage
rate will exceed the average prime offer rate as defined in section 129C by 2.5
or more percentage points; or</text>
</subparagraph></paragraph><paragraph id="H23C9EC3A7D14471CACD730FC95EC1024"><enum>(4)</enum><text>so required
pursuant to regulation.</text>
</paragraph></subsection><subsection id="H9E37BCAF838245BBADB9B5BB86A5CB8C"><enum>(c)</enum><header>Exemptions</header><text>The
Board may, by regulation, exempt from the requirements of subsection (a) a
creditor that—</text>
<paragraph id="H6270C83E64764F7995EC8628D219A161"><enum>(1)</enum><text>operates
predominantly in rural or underserved areas;</text>
</paragraph><paragraph id="H8D3C94F83D1C444ABDED72E3CF6E96B7"><enum>(2)</enum><text>together with all
affiliates, has total annual mortgage loan originations that do not exceed a
limit set by the Board;</text>
</paragraph><paragraph id="H5D377E52267946449A14AE986DFACABA"><enum>(3)</enum><text>retains its
mortgage loan originations in portfolio; and</text>
</paragraph><paragraph id="H9272DC6F61ED439FA62AC62B406B416C"><enum>(4)</enum><text>meets any asset
size threshold and any other criteria the Board may establish, consistent with
the purposes of this subtitle.</text>
</paragraph></subsection><subsection id="H8091EDA36E6F4578BB187D7295C9FF09"><enum>(d)</enum><header>Duration of
mandatory escrow or impound account</header><text>An escrow or impound account
established pursuant to subsection (b) shall remain in existence for a minimum
period of 5 years, beginning with the date of the consummation of the loan,
unless and until—</text>
<paragraph id="H16569813998A4CD0998F0086CA2EC9FC"><enum>(1)</enum><text>such borrower has
sufficient equity in the dwelling securing the consumer credit transaction so
as to no longer be required to maintain private mortgage insurance;</text>
</paragraph><paragraph id="H47EE90C6E8B64B1E84C9371E3D813C52"><enum>(2)</enum><text>such borrower is
delinquent;</text>
</paragraph><paragraph id="H178C31903D0E4F1EB9D3FF05657858DB"><enum>(3)</enum><text>such borrower
otherwise has not complied with the legal obligation, as established by rule;
or</text>
</paragraph><paragraph id="H26C8714DBA35432D8A363179DEF5B934"><enum>(4)</enum><text>the underlying
mortgage establishing the account is terminated.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HDFCC471CEBCB44A5B009923E48F3D312"><enum>(e)</enum><header>Limited
exemptions for loans secured by shares in a cooperative or in which an
association must maintain a master insurance policy</header><text display-inline="yes-display-inline">Escrow accounts need not be established for
loans secured by shares in a cooperative. Insurance premiums need not be
included in escrow accounts for loans secured by dwellings or units, where the
borrower must join an association as a condition of ownership, and that
association has an obligation to the dwelling or unit owners to maintain a
master policy insuring the dwellings or units.</text>
</subsection><subsection id="H804B49A006BA4E528E77DBD406F4579C"><enum>(f)</enum><header>Clarification on
escrow accounts for loans not meeting statutory test</header><text>For
mortgages not covered by the requirements of subsection (b), no provision of
this section shall be construed as precluding the establishment of an impound,
trust, or other type of account for the payment of property taxes, insurance
premiums, or other purposes relating to the property—</text>
<paragraph id="H36051FF2B30B4A9A88123A66C6080438"><enum>(1)</enum><text>on terms mutually
agreeable to the parties to the loan;</text>
</paragraph><paragraph id="HFD649B98F8D3470AAEAF209AB5EA7463"><enum>(2)</enum><text>at the discretion
of the lender or servicer, as provided by the contract between the lender or
servicer and the borrower; or</text>
</paragraph><paragraph id="H39380EE915A74E0EA7D7EA80BEC41E39"><enum>(3)</enum><text display-inline="yes-display-inline">pursuant to the requirements for the
escrowing of flood insurance payments for regulated lending institutions in
section 102(d) of the Flood Disaster Protection Act of 1973.</text>
</paragraph></subsection><subsection id="H09DE2A9C77974657A55C95DFD7A7D295"><enum>(g)</enum><header>Administration
of mandatory escrow or impound accounts</header>
<paragraph id="H3262386AA7DA4395A092A744F33E72E9"><enum>(1)</enum><header>In
general</header><text>Except as may otherwise be provided for in this title or
in regulations prescribed by the Board, escrow or impound accounts established
pursuant to subsection (b) shall be established in a federally insured
depository institution or credit union.</text>
</paragraph><paragraph id="HC82EF3BD55FD4FFE8CED06F560DD6278"><enum>(2)</enum><header>Administration</header><text>Except
as provided in this section or regulations prescribed under this section, an
escrow or impound account subject to this section shall be administered in
accordance with—</text>
<subparagraph id="H9FABCC07926B44828B8E95C6FC361933"><enum>(A)</enum><text>the Real Estate
Settlement Procedures Act of 1974 and regulations prescribed under such
Act;</text>
</subparagraph><subparagraph id="H913042584A4A46C4BC4ABEB6F4124386"><enum>(B)</enum><text>the Flood Disaster
Protection Act of 1973 and regulations prescribed under such Act; and</text>
</subparagraph><subparagraph id="H97F7F9E2F727421A8BA7B6BDAEB73ED6"><enum>(C)</enum><text>the law of the
State, if applicable, where the real property securing the consumer credit
transaction is located.</text>
</subparagraph></paragraph><paragraph id="H2FF90DADD06D42548B11F0C0866EA5E2"><enum>(3)</enum><header>Applicability of
payment of interest</header><text>If prescribed by applicable State or Federal
law, each creditor shall pay interest to the consumer on the amount held in any
impound, trust, or escrow account that is subject to this section in the manner
as prescribed by that applicable State or Federal law.</text>
</paragraph><paragraph id="HCF547DA0042847C9BF82401DAF86EB3F"><enum>(4)</enum><header>Penalty
coordination with RESPA</header><text display-inline="yes-display-inline">Any
action or omission on the part of any person which constitutes a violation of
the Real Estate Settlement Procedures Act of 1974 or any regulation prescribed
under such Act for which the person has paid any fine, civil money penalty, or
other damages shall not give rise to any additional fine, civil money penalty,
or other damages under this section, unless the action or omission also
constitutes a direct violation of this section.</text>
</paragraph></subsection><subsection id="H84BB8B72A59E422A854564215BD9BE41"><enum>(h)</enum><header>Disclosures
relating to mandatory escrow or impound account</header><text>In the case of
any impound, trust, or escrow account that is required under subsection (b),
the creditor shall disclose by written notice to the consumer at least 3
business days before the consummation of the consumer credit transaction giving
rise to such account or in accordance with timeframes established in prescribed
regulations the following information:</text>
<paragraph id="HA2ECCBE0580841BEAAD10CEAB71A4790"><enum>(1)</enum><text>The fact that an
escrow or impound account will be established at consummation of the
transaction.</text>
</paragraph><paragraph id="HE347E387BA61456FBC6DA792F871B61B"><enum>(2)</enum><text>The amount
required at closing to initially fund the escrow or impound account.</text>
</paragraph><paragraph id="H48F67D4840D947C38D23A347D150812C"><enum>(3)</enum><text>The amount, in the
initial year after the consummation of the transaction, of the estimated taxes
and hazard insurance, including flood insurance, if applicable, and any other
required periodic payments or premiums that reflects, as appropriate, either
the taxable assessed value of the real property securing the transaction,
including the value of any improvements on the property or to be constructed on
the property (whether or not such construction will be financed from the
proceeds of the transaction) or the replacement costs of the property.</text>
</paragraph><paragraph id="HE91D6E44D34449BE846A4EDE2B26990B"><enum>(4)</enum><text>The estimated
monthly amount payable to be escrowed for taxes, hazard insurance (including
flood insurance, if applicable) and any other required periodic payments or
premiums.</text>
</paragraph><paragraph id="HA871E33201A74B88AC158CA9CAF16BAD"><enum>(5)</enum><text>The fact that, if
the consumer chooses to terminate the account in the future, the consumer will
become responsible for the payment of all taxes, hazard insurance, and flood
insurance, if applicable, as well as any other required periodic payments or
premiums on the property unless a new escrow or impound account is
established.</text>
</paragraph><paragraph id="HA8221E0F99B143498D8BEE6AEF4E85BD"><enum>(6)</enum><text display-inline="yes-display-inline">Such other information as the Board
determines necessary for the protection of the consumer.</text>
</paragraph></subsection><subsection id="HEAFBAE02E1FF483FA6619116A75BF933"><enum>(i)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="HAA5CED5AE9174A5B9A5F5AD733BC2E33"><enum>(1)</enum><header>Flood
insurance</header><text>The term <term>flood insurance</term> means flood
insurance coverage provided under the national flood insurance program pursuant
to the National Flood Insurance Act of 1968.</text>
</paragraph><paragraph id="H42DD55DAD1624133B80386552C1278CD"><enum>(2)</enum><header>Hazard
insurance</header><text>The term <term>hazard insurance</term> shall have the
same meaning as provided for <term>hazard insurance</term>, <term>casualty
insurance</term>, <term>homeowner’s insurance</term>, or other similar term
under the law of the State where the real property securing the consumer credit
transaction is
located.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2FD7BD252D644E1C8F3EC936FC52EE81"><enum>(b)</enum><header>Exemptions and
modifications</header><text>The Board may prescribe rules that revise, add to,
or subtract from the criteria of section 129D(b) of the Truth in Lending Act if
the Board determines that such rules are in the interest of consumers and in
the public interest.</text>
</subsection><subsection id="H997A892B591742ACA7BB5F675FD6652E"><enum>(c)</enum><header>Clerical
Amendment</header><text display-inline="yes-display-inline">The table of
sections for chapter 2 of the Truth in Lending Act is amended by inserting
after the item relating to section 129C (as added by section 1411) the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD08419095B164B48B3E588761C0BEED9" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">129D. Escrow or impound accounts relating
to certain consumer credit
transactions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H8FD228EDDB26470587EE9BDF8BF2E92F"><enum>1462.</enum><header>Disclosure
notice required for consumers who waive escrow services</header><text display-inline="no-display-inline">Section 129D of the Truth in Lending Act (as
added by section 1461) is amended by adding at the end the following new
subsection:</text>
<quoted-block id="H20C7DD1C6A1F4EF59CE23CB90AAD491C" style="OLC">
<subsection id="H6082A825997B4508A876634371E779F6"><enum>(j)</enum><header>Disclosure
notice required for consumers who waive escrow services</header>
<paragraph id="HF809CDDEA1564E6A9A23F3C9A92BA2C3"><enum>(1)</enum><header>In
general</header><text>If—</text>
<subparagraph id="HF95699D9E7444F63B49FC5FBFB64DDB9"><enum>(A)</enum><text>an impound, trust,
or other type of account for the payment of property taxes, insurance premiums,
or other purposes relating to real property securing a consumer credit
transaction is not established in connection with the transaction; or</text>
</subparagraph><subparagraph id="H471BE037E42841F8873AEC059D510CA7"><enum>(B)</enum><text>a consumer
chooses, and provides written notice to the creditor or servicer of such
choice, at any time after such an account is established in connection with any
such transaction and in accordance with any statute, regulation, or contractual
agreement, to close such account,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the
creditor or servicer shall provide a timely and clearly written disclosure to
the consumer that advises the consumer of the responsibilities of the consumer
and implications for the consumer in the absence of any such account.</continuation-text></paragraph><paragraph id="HC9C3AA927B7A4407999943E2EF5D1C40"><enum>(2)</enum><header>Disclosure
requirements</header><text>Any disclosure provided to a consumer under
paragraph (1) shall include the following:</text>
<subparagraph id="H244B1655D2E14FACA4F50019B6B92F11"><enum>(A)</enum><text>Information
concerning any applicable fees or costs associated with either the
non-establishment of any such account at the time of the transaction, or any
subsequent closure of any such account.</text>
</subparagraph><subparagraph id="H62AE33A3279044D8AC14D7F471865880"><enum>(B)</enum><text>A clear and
prominent statement that the consumer is responsible for personally and
directly paying the non-escrowed items, in addition to paying the mortgage loan
payment, in the absence of any such account, and the fact that the costs for
taxes, insurance, and related fees can be substantial.</text>
</subparagraph><subparagraph id="HD1C726C55FA64E63B4A1668FBEFACA10"><enum>(C)</enum><text>A clear
explanation of the consequences of any failure to pay non-escrowed items,
including the possible requirement for the forced placement of insurance by the
creditor or servicer and the potentially higher cost (including any potential
commission payments to the servicer) or reduced coverage for the consumer in
the event of any such creditor-placed insurance.</text>
</subparagraph><subparagraph id="HE7DBE55A618D4AD1A75936AE1B6E5F82"><enum>(D)</enum><text display-inline="yes-display-inline">Such other information as the Board
determines necessary for the protection of the
consumer.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC3CDBEC230C24458B1AA06548037297D"><enum>1463.</enum><header>Real Estate
Settlement Procedures Act of 1974 amendments</header>
<subsection id="H36C31E65FC394C6185130C81377CFBBA"><enum>(a)</enum><header>Servicer
prohibitions</header><text>Section 6 of the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the following new
subsections:</text>
<quoted-block id="HFD6ADDEBA7A6447A824059092ACE2BAA" style="OLC">
<subsection id="H8A1E693A4E214A22A3E9B1021B158C72"><enum>(k)</enum><header>Servicer
prohibitions</header>
<paragraph id="H481A0EB037A84B639D8925333FDD7CE4"><enum>(1)</enum><header>In
general</header><text>A servicer of a federally related mortgage shall
not—</text>
<subparagraph id="H3BD4C201DDB142F4B1E10091739B8FD6"><enum>(A)</enum><text>obtain
force-placed hazard insurance unless there is a reasonable basis to believe the
borrower has failed to comply with the loan contract’s requirements to maintain
property insurance;</text>
</subparagraph><subparagraph id="H4429CAC498F041369ABB97E8B65C24BE"><enum>(B)</enum><text>charge fees for
responding to valid qualified written requests (as defined in regulations which
the Bureau of Consumer Financial Protection shall prescribe) under this
section;</text>
</subparagraph><subparagraph id="HA38846188EBE40A8854FBF8A287F5F13"><enum>(C)</enum><text>fail to take
timely action to respond to a borrower’s requests to correct errors relating to
allocation of payments, final balances for purposes of paying off the loan, or
avoiding foreclosure, or other standard servicer’s duties;</text>
</subparagraph><subparagraph id="HCF49A3151D9C4421B5B8C40F34F04085"><enum>(D)</enum><text>fail to respond
within 10 business days to a request from a borrower to provide the identity,
address, and other relevant contact information about the owner or assignee of
the loan; or</text>
</subparagraph><subparagraph id="H8224F46B7D334F84A8B60534856D248F"><enum>(E)</enum><text>fail to comply
with any other obligation found by the Bureau of Consumer Financial Protection,
by regulation, to be appropriate to carry out the consumer protection purposes
of this Act.</text>
</subparagraph></paragraph><paragraph id="H8C4946A509B045A8A832E3EB9D443322"><enum>(2)</enum><header>Force-placed
insurance defined</header><text>For purposes of this subsection and subsections
(l) and (m), the term <term>force-placed insurance</term> means hazard
insurance coverage obtained by a servicer of a federally related mortgage when
the borrower has failed to maintain or renew hazard insurance on such property
as required of the borrower under the terms of the mortgage.</text>
</paragraph></subsection><subsection id="H33F9ABA59CB04469941B53385926CAB0"><enum>(l)</enum><header>Requirements for
force-placed insurance</header><text>A servicer of a federally related mortgage
shall not be construed as having a reasonable basis for obtaining force-placed
insurance unless the requirements of this subsection have been met.</text>
<paragraph id="H40F712A24A694869A783BAD7349EED65"><enum>(1)</enum><header>Written notices
to borrower</header><text>A servicer may not impose any charge on any borrower
for force-placed insurance with respect to any property securing a federally
related mortgage unless—</text>
<subparagraph id="H0E7C6994ABEF46DAB1E998EC5C47EC52"><enum>(A)</enum><text display-inline="yes-display-inline">the servicer has sent, by first-class mail,
a written notice to the borrower containing—</text>
<clause id="HC0E54B4553CB4FAB81147C4E768664C3"><enum>(i)</enum><text>a
reminder of the borrower’s obligation to maintain hazard insurance on the
property securing the federally related mortgage;</text>
</clause><clause id="HBF52081EC5324B11AF7F306EE5A0B2B3"><enum>(ii)</enum><text>a
statement that the servicer does not have evidence of insurance coverage of
such property;</text>
</clause><clause id="H1EAFB4EA130C4502BC6F726AEF684902"><enum>(iii)</enum><text>a clear and
conspicuous statement of the procedures by which the borrower may demonstrate
that the borrower already has insurance coverage; and</text>
</clause><clause commented="no" id="HFF210FC5C79D4C52B659A7538AB837FA"><enum>(iv)</enum><text display-inline="yes-display-inline">a statement that the servicer may obtain
such coverage at the borrower’s expense if the borrower does not provide such
demonstration of the borrower’s existing coverage in a timely manner;</text>
</clause></subparagraph><subparagraph id="H171F55CD1550401498A01F8A0F606C68"><enum>(B)</enum><text display-inline="yes-display-inline">the servicer has sent, by first-class mail,
a second written notice, at least 30 days after the mailing of the notice under
subparagraph (A) that contains all the information described in each clause of
such subparagraph; and</text>
</subparagraph><subparagraph id="H4B4479C3E69C493E80BB764FD7F39EF8"><enum>(C)</enum><text>the servicer has
not received from the borrower any demonstration of hazard insurance coverage
for the property securing the mortgage by the end of the 15-day period
beginning on the date the notice under subparagraph (B) was sent by the
servicer.</text>
</subparagraph></paragraph><paragraph id="H00455B0CDAB3495DBE9FBFA28F795ED3"><enum>(2)</enum><header>Sufficiency of
demonstration</header><text display-inline="yes-display-inline">A servicer of a
federally related mortgage shall accept any reasonable form of written
confirmation from a borrower of existing insurance coverage, which shall
include the existing insurance policy number along with the identity of, and
contact information for, the insurance company or agent, or as otherwise
required by the Bureau of Consumer Financial Protection.</text>
</paragraph><paragraph id="HD1E2234D39B84CF5B7CB9D90628EFD34"><enum>(3)</enum><header>Termination of
force-placed insurance</header><text display-inline="yes-display-inline">Within
15 days of the receipt by a servicer of confirmation of a borrower’s existing
insurance coverage, the servicer shall—</text>
<subparagraph commented="no" id="H4B2C2E6548B141D0A44B9593A69BD5A3"><enum>(A)</enum><text>terminate the
force-placed insurance; and</text>
</subparagraph><subparagraph id="HEF1E92F3210D4DA5BB5F9867885DF0BD"><enum>(B)</enum><text>refund to the
consumer all force-placed insurance premiums paid by the borrower during any
period during which the borrower’s insurance coverage and the force-placed
insurance coverage were each in effect, and any related fees charged to the
consumer’s account with respect to the force-placed insurance during such
period.</text>
</subparagraph></paragraph><paragraph id="HFABC15BDEDC7471981E162717D86BC33"><enum>(4)</enum><header>Clarification
with respect to Flood Disaster Protection Act</header><text display-inline="yes-display-inline">No provision of this section shall be
construed as prohibiting a servicer from providing simultaneous or concurrent
notice of a lack of flood insurance pursuant to section 102(e) of the Flood
Disaster Protection Act of 1973.</text>
</paragraph></subsection><subsection id="H91A037D2BFA3424499EF56DA682128CC"><enum>(m)</enum><header>Limitations on
force-placed insurance charges</header><text>All charges, apart from charges
subject to State regulation as the business of insurance, related to
force-placed insurance imposed on the borrower by or through the servicer shall
be bona fide and
reasonable.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H19A8106D2FD24F4D9033F4B55D1FA634"><enum>(b)</enum><header>Increase in
penalty amounts</header><text>Section 6(f) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(f)) is amended—</text>
<paragraph id="H0A163FC0F5524E05861F39B3CC0C5247"><enum>(1)</enum><text>in paragraphs
(1)(B) and (2)(B), by striking <quote>$1,000</quote> each place such term
appears and inserting <quote>$2,000</quote>; and</text>
</paragraph><paragraph id="H5313C8EA8D704BB0A63CA7AF3EF58904"><enum>(2)</enum><text>in paragraph
(2)(B)(i), by striking <quote>$500,000</quote> and inserting
<quote>$1,000,000</quote>.</text>
</paragraph></subsection><subsection id="H345211E4069A478BB26D5A6EED920304"><enum>(c)</enum><header>Decrease in
response times</header><text>Section 6(e) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(e)) is amended—</text>
<paragraph id="HD12FB5B0C8D4412C97AE901806D67E8F"><enum>(1)</enum><text>in paragraph
(1)(A), by striking <quote>20 days</quote> and inserting <quote>5
days</quote>;</text>
</paragraph><paragraph id="H1E9CCC851B8247538ABC3B0178280853"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>60 days</quote> and inserting <quote>30 days</quote>;
and</text>
</paragraph><paragraph id="H8DA1500F5D0D437AA04436918BA8CB1E"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H62CBE43A5C92407B922DCD36833280C5" style="OLC">
<paragraph id="H77462DFED31042B0BB43ABE86B8B5E92"><enum>(4)</enum><header>Limited
extension of response time</header><text>The 30-day period described in
paragraph (2) may be extended for not more than 15 days if, before the end of
such 30-day period, the servicer notifies the borrower of the extension and the
reasons for the delay in
responding.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HEDB416C87C484142908B925123B91092"><enum>(d)</enum><header>Prompt refund of
escrow accounts upon payoff</header><text>Section 6(g) of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2605(g)) is amended by adding at
the end the following new sentence: <quote>Any balance in any such account that
is within the servicer’s control at the time the loan is paid off shall be
promptly returned to the borrower within 20 business days or credited to a
similar account for a new mortgage loan to the borrower with the same
lender.</quote>.</text>
</subsection></section><section id="H2375B69EAA764FF0A5CDD39833C51FB6"><enum>1464.</enum><header>Truth in
Lending Act amendments</header>
<subsection id="H5244534066334BA8B72303343D93F3B8"><enum>(a)</enum><header>Requirements for
prompt crediting of home loan payments</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129E (as added by
section 1472) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H53CC50B47724469DB3BA59A667370F76" style="USC">
<section id="HBD7263E78390443EA6145E43A0A168F9"><enum>129F.</enum><header>Requirements
for prompt crediting of home loan payments</header>
<subsection id="HD1552608915A493190F2B9B6D42E9535"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In connection with a
consumer credit transaction secured by a consumer’s principal dwelling, no
servicer shall fail to credit a payment to the consumer’s loan account as of
the date of receipt, except when a delay in crediting does not result in any
charge to the consumer or in the reporting of negative information to a
consumer reporting agency, except as required in subsection (b).</text>
</subsection><subsection id="H79E9598F00064E078930DD5CDB2C5F37"><enum>(b)</enum><header>Exception</header><text>If
a servicer specifies in writing requirements for the consumer to follow in
making payments, but accepts a payment that does not conform to the
requirements, the servicer shall credit the payment as of 5 days after
receipt.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3E528C4088E4476997204B692FD43C38"><enum>(b)</enum><header>Requests for
payoff amounts</header><text display-inline="yes-display-inline">Chapter 2 of
the Truth in Lending Act (15 U.S.C. 1631 et seq.), as amended by this title, is
amended by inserting after section 129F (as added by subsection (a)) the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H39DCB5F27E4E4E37A8CCB3BAE5E8F464" style="USC">
<section id="HA9B970E9E78746B989770F305FCE6F19"><enum>129G.</enum><header>Requests for
payoff amounts of home loan</header><text display-inline="no-display-inline">A
creditor or servicer of a home loan shall send an accurate payoff balance
within a reasonable time, but in no case more than 7 business days, after the
receipt of a written request for such balance from or on behalf of the
borrower.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H4B021D30F6A940F7AF206701F0161A85"><enum>1465.</enum><header>Escrows
included in repayment analysis</header><text display-inline="no-display-inline">Section 128(b) of the Truth in Lending Act
(15 U.S.C. 1638(b)) is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H14908455C1904533A4CEC852B17D942D" style="OLC">
<paragraph id="H7334520D68ED45598AC3159F7E8608DF"><enum>(4)</enum><header>Repayment
analysis required to include escrow payments</header>
<subparagraph id="H5F1673E8395F43788DE304066B7FF7F1"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
consumer credit transaction secured by a first mortgage or lien on the
principal dwelling of the consumer, other than a consumer credit transaction
under an open end credit plan or a reverse mortgage, for which an impound,
trust, or other type of account has been or will be established in connection
with the transaction for the payment of property taxes, hazard and flood (if
any) insurance premiums, or other periodic payments or premiums with respect to
the property, the information required to be provided under subsection (a) with
respect to the number, amount, and due dates or period of payments scheduled to
repay the total of payments shall take into account the amount of any monthly
payment to such account for each such repayment in accordance with section
10(a)(2) of the Real Estate Settlement Procedures Act of 1974.</text>
</subparagraph><subparagraph id="HC7632C3C2D914A4BABFDFDC0F0703229"><enum>(B)</enum><header>Assessment
value</header><text>The amount taken into account under subparagraph (A) for
the payment of property taxes, hazard and flood (if any) insurance premiums, or
other periodic payments or premiums with respect to the property shall reflect
the taxable assessed value of the real property securing the transaction after
the consummation of the transaction, including the value of any improvements on
the property or to be constructed on the property (whether or not such
construction will be financed from the proceeds of the transaction), if known,
and the replacement costs of the property for hazard insurance, in the initial
year after the
transaction.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="HF16B8C5528F141209DB1DA564FD36715"><enum>F</enum><header>Appraisal
Activities</header>
<section display-inline="no-display-inline" id="HE0357D8EC7D648729C5BEF28702498BE"><enum>1471.</enum><header>Property
appraisal requirements</header><text display-inline="no-display-inline">Chapter
2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting
after 129G (as added by section 1464(b)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H4980B5F4AEFE4F07A8DD0FD45EC84A5B" style="USC">
<section id="H5C5F5B6C63044CF1B211CCD6DC4B1DE4"><enum>129H.</enum><header>Property
appraisal requirements</header>
<subsection display-inline="no-display-inline" id="HBDD6C0BC25FB4A8ABC24C32FE10E4867"><enum>(a)</enum><header>In
general</header><text>A creditor may not extend credit in the form of a
higher-risk mortgage to any consumer without first obtaining a written
appraisal of the property to be mortgaged prepared in accordance with the
requirements of this section.</text>
</subsection><subsection id="H1104C74A1F444DB18CE629A25F54BD7A"><enum>(b)</enum><header>Appraisal
requirements</header>
<paragraph id="H1A24D51BA6A548F4A2E6695F6D2C0A22"><enum>(1)</enum><header>Physical
property visit</header><text display-inline="yes-display-inline">Subject to the
rules prescribed under paragraph (4), an appraisal of property to be secured by
a higher-risk mortgage does not meet the requirement of this section unless it
is performed by a certified or licensed appraiser who conducts a physical
property visit of the interior of the mortgaged property.</text>
</paragraph><paragraph id="H043915E350784FB89C9D5BA3409FE64B"><enum>(2)</enum><header>Second appraisal
under certain circumstances</header>
<subparagraph id="HE934EEC800AB42BFA2284BEB281F654D"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If the purpose of a
higher-risk mortgage is to finance the purchase or acquisition of the mortgaged
property from a person within 180 days of the purchase or acquisition of such
property by that person at a price that was lower than the current sale price
of the property, the creditor shall obtain a second appraisal from a different
certified or licensed appraiser. The second appraisal shall include an analysis
of the difference in sale prices, changes in market conditions, and any
improvements made to the property between the date of the previous sale and the
current sale.</text>
</subparagraph><subparagraph id="H8202899BBED6409CA2461D5D285548C0"><enum>(B)</enum><header>No cost to
applicant</header><text>The cost of any second appraisal required under
subparagraph (A) may not be charged to the applicant.</text>
</subparagraph></paragraph><paragraph id="H65FAD62187F94FF6B4204D00EAE0B14C"><enum>(3)</enum><header>Certified or
licensed appraiser defined</header><text>For purposes of this section, the term
<quote>certified or licensed appraiser</quote> means a person who—</text>
<subparagraph id="H5C9FDC3A3DBA4B9EB27F029A79B8C83E"><enum>(A)</enum><text>is, at a minimum,
certified or licensed by the State in which the property to be appraised is
located; and</text>
</subparagraph><subparagraph id="H757C5FECA4B24C9989783D3F78FA1F22"><enum>(B)</enum><text>performs each
appraisal in conformity with the Uniform Standards of Professional Appraisal
Practice and title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, and the regulations prescribed under such title, as in
effect on the date of the appraisal.</text>
</subparagraph></paragraph><paragraph id="H2E29F98805FD4858A647E1806D2C35AA"><enum>(4)</enum><header>Regulations</header>
<subparagraph id="H9A4715DCF7AF4099A95CDCCA43F6709C"><enum>(A)</enum><header>In
general</header><text>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 shall jointly prescribe
regulations to implement this section.</text>
</subparagraph><subparagraph id="H9FCD8E5D7D0C468AB6813D2C93B0B573"><enum>(B)</enum><header>Exemption</header><text>The
agencies listed in subparagraph (A) may jointly exempt, by rule, a class of
loans from the requirements of this subsection or subsection (a) if the
agencies determine that the exemption is in the public interest and promotes
the safety and soundness of creditors.</text>
</subparagraph></paragraph></subsection><subsection id="H31F1BC426A794DC18937E68E852ADCEA"><enum>(c)</enum><header>Free copy of
appraisal</header><text>A creditor shall provide 1 copy of each appraisal
conducted in accordance with this section in connection with a higher-risk
mortgage to the applicant without charge, and at least 3 days prior to the
transaction closing date.</text>
</subsection><subsection id="HDD9BE293E3604D07BF4CDAC52280E281"><enum>(d)</enum><header>Consumer
notification</header><text>At the time of the initial mortgage application, the
applicant shall be provided with a statement by the creditor that any appraisal
prepared for the mortgage is for the sole use of the creditor, and that the
applicant may choose to have a separate appraisal conducted at the expense of
the applicant.</text>
</subsection><subsection id="HB337B7F574964A05AB165EF35D07DADC"><enum>(e)</enum><header>Violations</header><text>In
addition to any other liability to any person under this title, a creditor
found to have willfully failed to obtain an appraisal as required in this
section shall be liable to the applicant or borrower for the sum of
$2,000.</text>
</subsection><subsection id="HA1A0B47C1BF2499CB4F01D0F080ECE82"><enum>(f)</enum><header>Higher-risk
mortgage defined</header><text display-inline="yes-display-inline">For purposes
of this section, the term <quote>higher-risk mortgage</quote> means a
residential mortgage loan, other than a reverse mortgage loan that is a
qualified mortgage, as defined in section 129C, secured by a principal
dwelling—</text>
<paragraph id="H8E51714D822641729E6137553EDF0647"><enum>(1)</enum><text>that is not a
qualified mortgage, as defined in section 129C; and</text>
</paragraph><paragraph id="H72AD4C7C72B5442D804D9B8050B4F054"><enum>(2)</enum><text display-inline="yes-display-inline">with an annual percentage rate that exceeds
the average prime offer rate for a comparable transaction, as defined in
section 129C, as of the date the interest rate is set—</text>
<subparagraph id="HFE5EB0C3C255410F8D9B38084B3CC5C4"><enum>(A)</enum><text display-inline="yes-display-inline">by 1.5 or more percentage points, in the
case of a first lien residential mortgage loan having an original principal
obligation amount that does not exceed the amount of the maximum limitation on
the original principal obligation of mortgage in effect for a residence of the
applicable size, as of the date of such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2));</text>
</subparagraph><subparagraph id="H7B4915837A8041FA808A7BAE0EEE24B9"><enum>(B)</enum><text display-inline="yes-display-inline">by 2.5 or more percentage points, in the
case of a first lien residential mortgage loan having an original principal
obligation amount that exceeds the amount of the maximum limitation on the
original principal obligation of mortgage in effect for a residence of the
applicable size, as of the date of such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2)); and</text>
</subparagraph><subparagraph id="HF4728F1C2AE04EE0AB6FD480D7DF18FE"><enum>(C)</enum><text>by 3.5 or more
percentage points for a subordinate lien residential mortgage
loan.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H448EA7B77CBD4E7BA11BAC9A780A79F5"><enum>1472.</enum><header>Appraisal
independence requirements</header>
<subsection id="H68C4D23B72A745EDA60BD5435D781A12"><enum>(a)</enum><header>In
general</header><text>Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by inserting after section 129D (as added by section 1461(a))
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H3ED12E300405435AA5CFE3B2EE213BD9" style="USC">
<section id="HA097012D269B4202B35B8C5BBA94BFC4"><enum>129E.</enum><header>Appraisal
independence requirements</header>
<subsection id="HAB60A3408C094E86B9637AA91DBF7F7D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall be unlawful,
in extending credit or in providing any services for a consumer credit
transaction secured by the principal dwelling of the consumer, to engage in any
act or practice that violates appraisal independence as described in or
pursuant to regulations prescribed under this section.</text>
</subsection><subsection id="H7E345AF7407244C5939C4A8187AAD313"><enum>(b)</enum><header>Appraisal
independence</header><text>For purposes of subsection (a), acts or practices
that violate appraisal independence shall include—</text>
<paragraph id="HEFD8B074146E4653B44F22FB3173565B"><enum>(1)</enum><text>any appraisal of a
property offered as security for repayment of the consumer credit transaction
that is conducted in connection with such transaction in which a person with an
interest in the underlying transaction compensates, coerces, extorts, colludes,
instructs, induces, bribes, or intimidates a person, appraisal management
company, firm, or other entity conducting or involved in an appraisal, or
attempts, to compensate, coerce, extort, collude, instruct, induce, bribe, or
intimidate such a person, for the purpose of causing the appraised value
assigned, under the appraisal, to the property to be based on any factor other
than the independent judgment of the appraiser;</text>
</paragraph><paragraph id="HA2390C58A4284956A02037BF5346DCA7"><enum>(2)</enum><text display-inline="yes-display-inline">mischaracterizing, or suborning any
mischaracterization of, the appraised value of the property securing the
extension of the credit;</text>
</paragraph><paragraph id="H111B4ADDF7A449E7A3136E1D346D5CF5"><enum>(3)</enum><text display-inline="yes-display-inline">seeking to influence an appraiser or
otherwise to encourage a targeted value in order to facilitate the making or
pricing of the transaction; and</text>
</paragraph><paragraph id="H68F3D6B769674923B2642B0D59C28306"><enum>(4)</enum><text display-inline="yes-display-inline">withholding or threatening to withhold
timely payment for an appraisal report or for appraisal services rendered when
the appraisal report or services are provided for in accordance with the
contract between the parties.</text>
</paragraph></subsection><subsection id="H9E3681BF34CD4CF19C13D36D61DA9410"><enum>(c)</enum><header>Exceptions</header><text>The
requirements of subsection (b) shall not be construed as prohibiting a mortgage
lender, mortgage broker, mortgage banker, real estate broker, appraisal
management company, employee of an appraisal management company, consumer, or
any other person with an interest in a real estate transaction from asking an
appraiser to undertake 1 or more of the following:</text>
<paragraph id="HC5C8FAEAD2844602AFEAFAB495359EF6"><enum>(1)</enum><text>Consider
additional, appropriate property information, including the consideration of
additional comparable properties to make or support an appraisal.</text>
</paragraph><paragraph id="HE1F842C601AD472F95783872832E09FB"><enum>(2)</enum><text>Provide further
detail, substantiation, or explanation for the appraiser’s value
conclusion.</text>
</paragraph><paragraph id="HCAB8FC7ACB894BFDAA9A31D71EA1AAE0"><enum>(3)</enum><text>Correct errors in
the appraisal report.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H425C354AA9F8404C80DA29B5A2942C6E"><enum>(d)</enum><header>Prohibitions on
conflicts of interest</header><text display-inline="yes-display-inline">No
certified or licensed appraiser conducting, and no appraisal management company
procuring or facilitating, an appraisal in connection with a consumer credit
transaction secured by the principal dwelling of a consumer may have a direct
or indirect interest, financial or otherwise, in the property or transaction
involving the appraisal.</text>
</subsection><subsection id="H63284BAC53E0469F94F6D0E833302835"><enum>(e)</enum><header>Mandatory
reporting</header><text display-inline="yes-display-inline">Any mortgage
lender, mortgage broker, mortgage banker, real estate broker, appraisal
management company, employee of an appraisal management company, or any other
person involved in a real estate transaction involving an appraisal in
connection with a consumer credit transaction secured by the principal dwelling
of a consumer who has a reasonable basis to believe an appraiser is failing to
comply with the Uniform Standards of Professional Appraisal Practice, is
violating applicable laws, or is otherwise engaging in unethical or
unprofessional conduct, shall refer the matter to the applicable State
appraiser certifying and licensing agency.</text>
</subsection><subsection id="H25C19E597D0D4A4CB6CA9C7BE4D1DC99"><enum>(f)</enum><header>No extension of
credit</header><text display-inline="yes-display-inline">In connection with a
consumer credit transaction secured by a consumer’s principal dwelling, a
creditor who knows, at or before loan consummation, of a violation of the
appraisal independence standards established in subsections (b) or (d) shall
not extend credit based on such appraisal unless the creditor documents that
the creditor has acted with reasonable diligence to determine that the
appraisal does not materially misstate or misrepresent the value of such
dwelling.</text>
</subsection><subsection id="HBB4F750DDBE9404D9812AF9811A2F3DD"><enum>(g)</enum><header>Rules and
interpretive guidelines</header>
<paragraph id="H6D40696BBA6D46BD9D3E2E0EF5F5F05F"><enum>(1)</enum><header>In
general</header><text>Except as provided under paragraph (2), 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 may jointly issue rules, interpretive guidelines, and general
statements of policy with respect to acts or practices that violate appraisal
independence in the provision of mortgage lending services for a consumer
credit transaction secured by the principal dwelling of the consumer and
mortgage brokerage services for such a transaction, within the meaning of
subsections (a), (b), (c), (d), (e), (f), (h), and (i).</text>
</paragraph><paragraph id="H44EA931B1E224799B9740BCBE8CBC5ED"><enum>(2)</enum><header>Interim final
regulations</header><text>The Board shall, for purposes of this section,
prescribe interim final regulations no later than 90 days after the date of
enactment of this section defining with specificity acts or practices that
violate appraisal independence in the provision of mortgage lending services
for a consumer credit transaction secured by the principal dwelling of the
consumer or mortgage brokerage services for such a transaction and defining any
terms in this section or such regulations. Rules prescribed by the Board under
this paragraph shall be deemed to be rules prescribed by the agencies jointly
under paragraph (1).</text>
</paragraph></subsection><subsection id="HA0DE06C2095640368F66ADFEEB6E5D25"><enum>(h)</enum><header>Appraisal report
portability</header><text display-inline="yes-display-inline">Consistent with
the requirements of this section, 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 may
jointly issue regulations that address the issue of appraisal report
portability, including regulations that ensure the portability of the appraisal
report between lenders for a consumer credit transaction secured by a 1-4 unit
single family residence that is the principal dwelling of the consumer, or
mortgage brokerage services for such a transaction.</text>
</subsection><subsection id="H4EB3094EAC68464AAD33A2E0A7A3AEAF"><enum>(i)</enum><header>Customary and
reasonable fee</header>
<paragraph id="HA95196E8CA714371BCAB1152C32DB0CB"><enum>(1)</enum><header>In
general</header><text>Lenders and their agents shall compensate fee appraisers
at a rate that is customary and reasonable for appraisal services performed in
the market area of the property being appraised. Evidence for such fees may be
established by objective third-party information, such as government agency fee
schedules, academic studies, and independent private sector surveys. Fee
studies shall exclude assignments ordered by known appraisal management
companies.</text>
</paragraph><paragraph id="HE273BA49F50A49EAB12E0979D145B62B"><enum>(2)</enum><header>Fee appraiser
definition</header><text>For purposes of this section, the term <quote>fee
appraiser</quote> means a person who is not an employee of the mortgage loan
originator or appraisal management company engaging the appraiser and
is—</text>
<subparagraph id="HF89D7DB0528C4687910C56BE062D3E72"><enum>(A)</enum><text>a State licensed
or certified appraiser who receives a fee for performing an appraisal and
certifies that the appraisal has been prepared in accordance with the Uniform
Standards of Professional Appraisal Practice; or</text>
</subparagraph><subparagraph id="HF00357150A984F34A4C62FCB3C457C2E"><enum>(B)</enum><text>a company not
subject to the requirements of section 1124 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) that
utilizes the services of State licensed or certified appraisers and receives a
fee for performing appraisals in accordance with the Uniform Standards of
Professional Appraisal Practice.</text>
</subparagraph></paragraph><paragraph id="HF42E49A40E83418D9FDC764025CFC9A6"><enum>(3)</enum><header>Exception for
complex assignments</header><text>In the case of an appraisal involving a
complex assignment, the customary and reasonable fee may reflect the increased
time, difficulty, and scope of the work required for such an appraisal and
include an amount over and above the customary and reasonable fee for
non-complex assignments.</text>
</paragraph></subsection><subsection id="H3F9B31C7C9B34A3793429F248F06493E"><enum>(j)</enum><header>Sunset</header><text>Effective
on the date the interim final regulations are promulgated pursuant to
subsection (g), the Home Valuation Code of Conduct announced by the Federal
Housing Finance Agency on December 23, 2008, shall have no force or
effect.</text>
</subsection><subsection id="H39FC6C23BC534BF09C9DD4BF65943E94"><enum>(k)</enum><header>Penalties</header>
<paragraph id="HA8CE4D5CDBBE4EF68883EBEDAE3A1147"><enum>(1)</enum><header>First
violation</header><text>In addition to the enforcement provisions referred to
in section 130, each person who violates this section shall forfeit and pay a
civil penalty of not more than $10,000 for each day any such violation
continues.</text>
</paragraph><paragraph id="H88B1115D36FC4BCAA7D16933AD95EAF0"><enum>(2)</enum><header>Subsequent
violations</header><text>In the case of any person on whom a civil penalty has
been imposed under paragraph (1), paragraph (1) shall be applied by
substituting <quote>$20,000</quote> for <quote>$10,000</quote> with respect to
all subsequent violations.</text>
</paragraph><paragraph id="H0215F4A4069D4C409688B74750D3FA63"><enum>(3)</enum><header>Assessment</header><text>The
agency referred to in subsection (a) or (c) of section 108 with respect to any
person described in paragraph (1) shall assess any penalty under this
subsection to which such person is
subject.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H711647071A014738AB3E0A3515AD7834"><enum>(b)</enum><header>Clerical
Amendment</header><text>The table of sections for chapter 2 of the Truth in
Lending Act is amended by inserting after the item relating to section 129D (as
added by section 1461(c)) the following new items:</text>
<quoted-block display-inline="no-display-inline" id="H0F1D9CCBF1DB4B139CA4C585270BBFB8" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">129E. Appraisal independence
requirements.</toc-entry>
<toc-entry bold="off" level="section">129F. Requirements for prompt
crediting of home loan payments.</toc-entry>
<toc-entry bold="off" level="section">129G. Requests for payoff
amounts of home loan.</toc-entry>
<toc-entry bold="off" level="section">129H. Property appraisal
requirements.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H90CDF4F14BEC44F9A41C74F90501249F"><enum>(c)</enum><header>Deference</header><text>Section
105 of the Truth in Lending Act (15 U.S.C. 1604) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H37FC181DA4C242F99F3374B4D37E00FD" style="OLC">
<subsection id="HC26CB335C75C432FBABDA25EB6AB3EA4"><enum>(h)</enum><header>Deference</header><text>Notwithstanding
any power granted to any Federal agency under this title, the deference that a
court affords to the Bureau with respect to a determination made by the Bureau
relating to the meaning or interpretation of any provision of this title, other
than section 129E or 129H, shall be applied as if the Bureau were the only
agency authorized to apply, enforce, interpret, or administer the provisions of
this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAA24885BC17D4853918B186D803824B1"><enum>(d)</enum><header>Conforming
amendments in title X not applicable to sections 129E and
129H</header><text>Notwithstanding section 1099A, the term <quote>Board</quote>
in sections 129E and 129H, as added by this subtitle, shall not be substituted
by the term <quote>Bureau</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="HF1B93CDFB2164C0E8AB9839464831CF7" section-type="subsequent-section"><enum>1473.</enum><header>Amendments relating
to Appraisal Subcommittee of FFIEC, Appraiser Independence Monitoring, Approved
Appraiser Education, Appraisal Management Companies, Appraiser Complaint
Hotline, Automated Valuation Models, and Broker Price Opinions</header>
<subsection id="HB0AD64FF8EBB48328BF3A507E0C787C4"><enum>(a)</enum><header>Threshold
levels</header><text>Section 1112(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b)) is amended by
inserting before the period the following: <quote>, and receives concurrence
from the Bureau of Consumer Financial Protection that such threshold level
provides reasonable protection for consumers who purchase 1–4 unit
single-family residences</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="H3845C3BEBE97480695DFB03ED1FBEB34"><enum>(b)</enum><header>Annual report of
Appraisal Subcommittee</header><text display-inline="yes-display-inline">Section 1103(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a))
is amended at the end by inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H9F4CD5FC35394167A2F7F80AA39FB161" style="OLC">
<paragraph id="H1BACDB737620422C893625E674AF6E4A"><enum>(5)</enum><text display-inline="yes-display-inline">transmit an annual report to the Congress
not later than June 15 of each year that describes the manner in which each
function assigned to the Appraisal Subcommittee has been carried out during the
preceding year. The report shall also detail the activities of the Appraisal
Subcommittee, including the results of all audits of State appraiser regulatory
agencies, and provide an accounting of disapproved actions and warnings taken
in the previous year, including a description of the conditions causing the
disapproval and actions taken to achieve
compliance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2AD01FD3F1604CAC8378091E05A92BFB"><enum>(c)</enum><header>Open
meetings</header><text>Section 1104(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3333(b)) is amended—</text>
<paragraph id="HB6149AF1B85642FBA7CA314AEFD3857C"><enum>(1)</enum><text>by inserting
<quote>in public session after notice in the Federal Register, but may close
certain portions of these meetings related to personnel and review of
preliminary State audit reports,</quote> after <quote>shall meet</quote>;
and</text>
</paragraph><paragraph id="HC95ED28D0BB441B5A493F095D631DAD8"><enum>(2)</enum><text>by adding after
the final period the following: <quote>The subject matter discussed in any
closed or executive session shall be described in the Federal Register notice
of the meeting.</quote>.</text>
</paragraph></subsection><subsection id="H59623645DFC648A08165B4E8B1C2C83D"><enum>(d)</enum><header>Regulations</header><text>Section
1106 of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3335) is amended—</text>
<paragraph id="H9B3C4B145DFA475392E20B77970F9830"><enum>(1)</enum><text>by inserting
<quote>prescribe regulations in accordance with chapter 5 of title 5, United
States Code (commonly referred to as the Administrative Procedures Act) after
notice and opportunity for comment,</quote> after <quote>hold hearings</quote>;
and</text>
</paragraph><paragraph id="HC29AA63C5BBD433AB015CA9096496BB5"><enum>(2)</enum><text>at the end by
inserting <quote>Any regulations prescribed by the Appraisal Subcommittee shall
(unless otherwise provided in this title) be limited to the following
functions: temporary practice, national registry, information sharing, and
enforcement. For purposes of prescribing regulations, the Appraisal
Subcommittee shall establish an advisory committee of industry participants,
including appraisers, lenders, consumer advocates, real estate agents, and
government agencies, and hold meetings as necessary to support the development
of regulations.</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H94B31CFF6F684305A19BCA645F9B7BE6"><enum>(e)</enum><header>Appraisal
reviews and complex appraisals</header>
<paragraph display-inline="no-display-inline" id="H483C27858942470995E91D36773504F4"><enum>(1)</enum><header>Section
1110</header><text display-inline="yes-display-inline">Section 1110 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3339) is amended—</text>
<subparagraph id="H8884C06FAFF14DF3BEA0460804470893"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>and</quote>;</text>
</subparagraph><subparagraph id="HE836493F1CDC4E978C88B72403E45D57"><enum>(B)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="HB43103D65F5847C693C4F4E9CC977D8B"><enum>(C)</enum><text>by inserting after
paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0471952F13AA423B9249E34161AFFF84" style="OLC">
<paragraph id="H7FBA58A67B2846F4A79ACC818A63A7FA"><enum>(3)</enum><text>that such
appraisals shall be subject to appropriate review for compliance with the
Uniform Standards of Professional Appraisal
Practice.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H5EA079CEEB0C43E8AB6BF01354ED06E3"><enum>(2)</enum><header>Section
1113</header><text display-inline="yes-display-inline">Section 1113 of the
Financial Institutions and Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3342) is amended by inserting before the period the following: <quote>,
where a complex 1-to-4 unit single family residential appraisal means an
appraisal for which the property to be appraised, the form of ownership, the
property characteristics, or the market conditions are atypical</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HADCA9D447258499C8425D9E242F43E9E"><enum>(f)</enum><header>Appraisal
management services</header>
<paragraph id="HA6B4CCFAF8274CC0900E1E7D38E66ADB"><enum>(1)</enum><header>Supervision of
third party providers of appraisal management services</header><text display-inline="yes-display-inline">Section 1103(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a))
(as previously amended by this section) is amended—</text>
<subparagraph id="HD8D760B5A1334BACA6C87F7B5C399875"><enum>(A)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1F4DDC6FA0E54356802A5E7E61ABC3A1" style="OLC">
<paragraph id="H71DFF7EED8BB4ADFA3111E79C6ED52B1"><enum>(1)</enum><text display-inline="yes-display-inline">monitor the requirements established by
States—</text>
<subparagraph id="H6A237CBE70E1457D88372D37D0638629"><enum>(A)</enum><text>for the
certification and licensing of individuals who are qualified to perform
appraisals in connection with federally related transactions, including a code
of professional responsibility; and</text>
</subparagraph><subparagraph id="HC497631B48454E608A54CECD4758419B"><enum>(B)</enum><text display-inline="yes-display-inline">for the registration and supervision of the
operations and activities of an appraisal management
company;</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9DBF7F6256194D3A81CCD6904AF301D9"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H708051AB51FF49DA98CB66A822BEFC87" style="OLC">
<paragraph id="H2C04CF07EF014405A1A2CB11D34801FE"><enum>(6)</enum><text display-inline="yes-display-inline">maintain a national registry of appraisal
management companies that either are registered with and subject to supervision
of a State appraiser certifying and licensing agency or are operating
subsidiaries of a Federally regulated financial
institution.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBCC91DF00C464AC3A72B9C0AFBDBF4EF"><enum>(2)</enum><header>Appraisal
management company minimum requirements</header><text display-inline="yes-display-inline">Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is
amended by adding at the end the following new section (and amending the table
of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H86A5B1D145E94C64BA090BEE99962A66" style="OLC">
<section id="HD8C9B2F7CB174F78A133F82A12FBE141"><enum>1124.</enum><header>Appraisal
management company minimum requirements</header>
<subsection id="H0135187F128B4014AE6873E76A3C3FF0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 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—</text>
<paragraph id="H18CA82DC02D745AB84E59FF8948EC9D8"><enum>(1)</enum><text display-inline="yes-display-inline">register with and be subject to supervision
by a State appraiser certifying and licensing agency in each State in which
such company operates;</text>
</paragraph><paragraph id="HFA588E36831D4B62B12FF791CD4F0439"><enum>(2)</enum><text>verify that only
licensed or certified appraisers are used for federally related
transactions;</text>
</paragraph><paragraph id="HBB7CCA4614DB4A50BFC7689668BCA35D"><enum>(3)</enum><text>require that
appraisals coordinated by an appraisal management company comply with the
Uniform Standards of Professional Appraisal Practice; and</text>
</paragraph><paragraph id="H042BAE94429B4DE0B1016FBA9FAB7DB2"><enum>(4)</enum><text>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.</text>
</paragraph></subsection><subsection id="H7E018FD968AA459CBAAE570729511034"><enum>(b)</enum><header>Relation to
State law</header><text>Nothing in this section shall be construed to prevent
States from establishing requirements in addition to any rules promulgated
under subsection (a).</text>
</subsection><subsection id="HAC340D9903E34F0199DDA49D1F0E636C"><enum>(c)</enum><header>Federally
regulated financial institutions</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HB82D8A462C3D4430A9A584D7836CE193"><enum>(d)</enum><header>Registration
limitations</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H68DD6A16006F40EE96DB529C77E895FF"><enum>(e)</enum><header>Reporting</header><text>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 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.</text>
</subsection><subsection id="H1DDCA2629AEA466A84488CB2B403E8E2"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H771FEE0564B34A7BA61399880D635A55"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H37C588645A4B4997B4AA40FABABB8E1D"><enum>(2)</enum><header>Extension of
effective date</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA66E005791B0447E9F70C2D5E2F09929"><enum>(3)</enum><header>State appraiser
certifying and licensing agency authority</header><text display-inline="yes-display-inline">Section 1117 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3346) is amended by
adding at the end the following: <quote>The duties of such agency may
additionally include the registration and supervision of appraisal management
companies and the addition of information about the appraisal management
company to the national registry.</quote>.</text>
</paragraph><paragraph id="H1E69966CEF2D4D998327FDB6AC1FA1D1"><enum>(4)</enum><header>Appraisal
management company definition</header><text display-inline="yes-display-inline">Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE1D7792835CF4511830E30859419C56C" style="OLC">
<paragraph id="H2DDBF40E5A4E4CADB52BBB4E7496F32B"><enum>(11)</enum><header>Appraisal
management company</header><text display-inline="yes-display-inline">The term
<term>appraisal management company</term> means, in connection with valuing
properties collateralizing mortgage loans or mortgages incorporated into a
securitization, any external third party authorized either by a creditor of a
consumer credit transaction secured by a consumer’s principal dwelling or by an
underwriter of or other principal in the secondary mortgage markets, that
oversees a network or panel of more than 15 certified or licensed appraisers in
a State or 25 or more nationally within a given year—</text>
<subparagraph id="H0C06C94EFFEC4EBD8F1E4ACB1388234C"><enum>(A)</enum><text>to recruit,
select, and retain appraisers;</text>
</subparagraph><subparagraph id="H25C7217B9B06454B8C1F1E464626A0C1"><enum>(B)</enum><text>to contract with
licensed and certified appraisers to perform appraisal assignments;</text>
</subparagraph><subparagraph id="H4855393E7F5343A89E3E1ABD245E2521"><enum>(C)</enum><text>to manage the
process of having an appraisal performed, including providing administrative
duties such as receiving appraisal orders and appraisal reports, submitting
completed appraisal reports to creditors and underwriters, collecting fees from
creditors and underwriters for services provided, and reimbursing appraisers
for services performed; or</text>
</subparagraph><subparagraph id="H0FB31B5D4996413786716C856CF52F89"><enum>(D)</enum><text>to review and
verify the work of
appraisers.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5206B19FC5FC431198B32A62B8C8BE54"><enum>(g)</enum><header>State agency
reporting requirement</header><text>Section 1109(a) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(a))
is amended—</text>
<paragraph id="H5B13CF7668E94D36805FDC39FE800924"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon in paragraph (1);</text>
</paragraph><paragraph id="H2D68FBF269AF456FB257712B47F015DD"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (2) as paragraph
(4); and</text>
</paragraph><paragraph id="H9C0BC6DBD5C94831AF9F4A150FE9A356"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the
following new paragraphs:</text>
<quoted-block id="H371997B2D64E460298548A0EBF1DE107" style="OLC">
<paragraph id="H8432F6335D36471FAD33D1280D0EAB37"><enum>(2)</enum><text>transmit reports
on the issuance and renewal of licenses and certifications, sanctions,
disciplinary actions, license and certification revocations, and license and
certification suspensions on a timely basis to the national registry of the
Appraisal Subcommittee;</text>
</paragraph><paragraph id="H808E1BD412AB4D6D9717DA8AC9D6D77D"><enum>(3)</enum><text display-inline="yes-display-inline">transmit reports on a timely basis of
supervisory activities involving appraisal management companies or other
third-party providers of appraisals and appraisal management services,
including investigations initiated and disciplinary actions taken;
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H9974CABB3D584BBD8C06D1F026E00D2C"><enum>(h)</enum><header>Registry fees
modified</header>
<paragraph id="H82563F51354B4A68A18DDFB7FFDEC4CD"><enum>(1)</enum><header>In
general</header><text>Section 1109(a) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended—</text>
<subparagraph id="H4D2E77FCAE244DF4BD1E16537CAA8841"><enum>(A)</enum><text>by amending
paragraph (4) (as modified by section 1473(g)) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9C6F83F7CFB9406DAB13DC7D9B82FE32" style="OLC">
<paragraph id="H87681A3D1E5143AF8FEC6EDC45023C0D"><enum>(4)</enum><text display-inline="yes-display-inline">collect—</text>
<subparagraph id="H243D726E0A054F90A7A043CDA6FD2932"><enum>(A)</enum><text>from such
individuals who perform or seek to perform appraisals in federally related
transactions, an annual registry fee of not more than $40, such fees to be
transmitted by the State agencies to the Council on an annual basis; and</text>
</subparagraph><subparagraph id="HADB86577F38441FEAA9AA127735CED37"><enum>(B)</enum><text display-inline="yes-display-inline">from an appraisal management company that
either has registered with a State appraiser certifying and licensing agency in
accordance with this title or operates as a subsidiary of a federally regulated
financial institution, an annual registry fee of—</text>
<clause id="H09EA85E6A8DC42D7BC01F9BEFDEFF2AB"><enum>(i)</enum><text>in
the case of such a company that has been in existence for more than a year, $25
multiplied by the number of appraisers working for or contracting with such
company in such State during the previous year, but where such $25 amount may
be adjusted, up to a maximum of $50, at the discretion of the Appraisal
Subcommittee, if necessary to carry out the Subcommittee’s functions under this
title; and</text>
</clause><clause id="H6A3E0FA54B63458B92D533361F2E261F"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of such a company that has not
been in existence for more than a year, $25 multiplied by an appropriate number
to be determined by the Appraisal Subcommittee, and where such number will be
used for determining the fee of all such companies that were not in existence
for more than a year, but where such $25 amount may be adjusted, up to a
maximum of $50, at the discretion of the Appraisal Subcommittee, if necessary
to carry out the Subcommittee’s functions under this
title.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H3503E1191A7041149F852C9DEFA31669"><enum>(B)</enum><text>by amending the
matter following paragraph (4), as redesignated, to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H89507272C2F642BA87CBE76D91B0FB86" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">Subject
to the approval of the Council, the Appraisal Subcommittee may adjust the
dollar amount of registry fees under paragraph (4)(A), up to a maximum of $80
per annum, as necessary to carry out its functions under this title. The
Appraisal Subcommittee shall consider at least once every 5 years whether to
adjust the dollar amount of the registry fees to account for inflation. In
implementing any change in registry fees, the Appraisal Subcommittee shall
provide flexibility to the States for multi-year certifications and licenses
already in place, as well as a transition period to implement the changes in
registry fees. In establishing the amount of the annual registry fee for an
appraisal management company, the Appraisal Subcommittee shall have the
discretion to impose a minimum annual registry fee for an appraisal management
company to protect against the under reporting of the number of appraisers
working for or contracted by the appraisal management
company.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H135DB01EA8FC494E951FD5C2852B2ECD"><enum>(2)</enum><header>Incremental
revenues</header><text display-inline="yes-display-inline">Incremental revenues
collected pursuant to the increases required by this subsection shall be placed
in a separate account at the United States Treasury, entitled the
<quote>Appraisal Subcommittee Account</quote>.</text>
</paragraph></subsection><subsection id="H9DD9CA36947A4D9098A9182F278F71CF"><enum>(i)</enum><header>Grants and
reports</header><text>Section 1109(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(b)) is amended—</text>
<paragraph id="HF4D4E38766184629A30F4132DEE1CDF1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> after the
semicolon in paragraph (3);</text>
</paragraph><paragraph id="H3A294BE80AEF4A2B8AAE4EE93FA87A15"><enum>(2)</enum><text>by striking the
period at the end of paragraph (4) and inserting a semicolon;</text>
</paragraph><paragraph id="H78593F3A4F684244AEAD3DBE81F46653"><enum>(3)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block id="HA43C4D1BA708429EBD205AF78C83A1BF" style="OLC">
<paragraph id="H94B7A4BBA7FA418CA8B5767ABAD024E0"><enum>(5)</enum><text display-inline="yes-display-inline">to make grants to State appraiser
certifying and licensing agencies, in accordance with policies to be developed
by the Appraisal Subcommittee, to support the efforts of such agencies to
comply with this title, including—</text>
<subparagraph id="H23752F454B4A4842B64F81768EE62775"><enum>(A)</enum><text>the complaint
process, complaint investigations, and appraiser enforcement activities of such
agencies; and</text>
</subparagraph><subparagraph id="H889233AD632C46C3A1B3B14E3C61B2D0"><enum>(B)</enum><text>the submission of
data on State licensed and certified appraisers and appraisal management
companies to the National appraisal registry, including information affirming
that the appraiser or appraisal management company meets the required
qualification criteria and formal and informal disciplinary actions; and</text>
</subparagraph></paragraph><paragraph id="HA9F250F0D4204D329AE8E51E353D5EC6"><enum>(6)</enum><text>to report to all
State appraiser certifying and licensing agencies when a license or
certification is surrendered, revoked, or
suspended.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><continuation-text continuation-text-level="subsection">Obligations
authorized under this subsection may not exceed 75 percent of the fiscal year
total of incremental increase in fees collected and deposited in the
<quote>Appraisal Subcommittee Account</quote> pursuant to subsection
(h).</continuation-text></subsection><subsection id="HEC67B0A6F2554243B7182F847667F8DF"><enum>(j)</enum><header>Criteria</header><text>Section
1116 of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3345) is amended—</text>
<paragraph id="HCBC181A261AF4303B284712C69F0B25C"><enum>(1)</enum><text>in subsection (c),
by inserting <quote>whose criteria for the licensing of a real estate appraiser
currently meet or exceed the minimum criteria issued by the Appraisal
Qualifications Board of The Appraisal Foundation for the licensing of real
estate appraisers</quote> before the period at the end; and</text>
</paragraph><paragraph id="HECBE07B5CE774E55B918027A86F7ABCB"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (e) and inserting
the following new subsection:</text>
<quoted-block id="H61C30E8167DE4D748092CAF08237EC03" style="OLC">
<subsection id="HB429A2D60A024620984A8FA65B94D42F"><enum>(e)</enum><header>Minimum
qualification requirements</header><text>Any requirements established for
individuals in the position of <quote>Trainee Appraiser</quote> and
<quote>Supervisory Appraiser</quote> shall meet or exceed the minimum
qualification requirements of the Appraiser Qualifications Board of The
Appraisal Foundation. The Appraisal Subcommittee shall have the authority to
enforce these
requirements.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8360E8719B044D4298C3030605CE7538"><enum>(k)</enum><header>Monitoring of
state appraiser certifying and licensing agencies</header><text>Section 1118 of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3347) is amended—</text>
<paragraph id="H62DDED5AE33B46F9BAB104E300E51396"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subsection (a) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HFCB9581C2C6642BDB41B8419733C4EE0" style="OLC">
<subsection id="H6461E15E20C14A3D9F0FCA05B00D0AB3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Appraisal
Subcommittee shall monitor each State appraiser certifying and licensing agency
for the purposes of determining whether such agency—</text>
<paragraph id="H10C2263833B847C69924AF5FF05C0D8B"><enum>(1)</enum><text>has policies,
practices, funding, staffing, and procedures that are consistent with this
title;</text>
</paragraph><paragraph id="HD9ACCF1346F84F30B959E6AC301813F5"><enum>(2)</enum><text>processes
complaints and completes investigations in a reasonable time period;</text>
</paragraph><paragraph id="HA10BFA2AED2D49B9B2EE4AAC5D7D24D5"><enum>(3)</enum><text>appropriately
disciplines sanctioned appraisers and appraisal management companies;</text>
</paragraph><paragraph id="HAE7508701D1948FB8547412E149A2C3F"><enum>(4)</enum><text>maintains an
effective regulatory program; and</text>
</paragraph><paragraph id="HAA9B0390C72D40E5883D406E1873620E"><enum>(5)</enum><text>reports complaints
and disciplinary actions on a timely basis to the national registries on
appraisers and appraisal management companies maintained by the Appraisal
Subcommittee.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
Appraisal Subcommittee shall have the authority to remove a State licensed or
certified appraiser or a registered appraisal management company from a
national registry on an interim basis, not to exceed 90 days, pending State
agency action on licensing, certification, registration, and disciplinary
proceedings. The Appraisal Subcommittee and all agencies, instrumentalities,
and Federally recognized entities under this title shall not recognize
appraiser certifications and licenses from States whose appraisal policies,
practices, funding, staffing, or procedures are found to be inconsistent with
this title. The Appraisal Subcommittee shall have the authority to impose
sanctions, as described in this section, against a State agency that fails to
have an effective appraiser regulatory program. In determining whether such a
program is effective, the Appraisal Subcommittee shall include an analysis of
the licensing and certification of appraisers, the registration of appraisal
management companies, the issuance of temporary licenses and certifications for
appraisers, the receiving and tracking of submitted complaints against
appraisers and appraisal management companies, the investigation of complaints,
and enforcement actions against appraisers and appraisal management companies.
The Appraisal Subcommittee shall have the authority to impose interim actions
and suspensions against a State agency as an alternative to, or in advance of,
the derecognition of a State
agency.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H415FA28DA31D4E18BFA1EE7C080F13A8"><enum>(2)</enum><text>in subsection
(b)(2), by inserting after “authority” the following: “or sufficient
funding”.</text>
</paragraph></subsection><subsection id="H606238B7BA234ECBAE429EB721859492"><enum>(l)</enum><header>Reciprocity</header><text>Subsection
(b) of section 1122 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3351(b)) is amended to read as
follows:</text>
<quoted-block id="HCF8734CA59A94CD7B3191A1D9249F649" style="OLC">
<subsection id="HF2A1004564E44205B520C50B67E3659D"><enum>(b)</enum><header>Reciprocity</header><text>Notwithstanding
any other provisions of this title, a federally related transaction shall not
be appraised by a certified or licensed appraiser unless the State appraiser
certifying or licensing agency of the State certifying or licensing such
appraiser has in place a policy of issuing a reciprocal certification or
license for an individual from another State when—</text>
<paragraph id="H3FD75372D55544C3B8955DE2FBBFFCBD"><enum>(1)</enum><text>the appraiser
licensing and certification program of such other State is in compliance with
the provisions of this title; and</text>
</paragraph><paragraph id="H32B2F324CB6347E3B1F30D70663B33CC"><enum>(2)</enum><text>the appraiser
holds a valid certification from a State whose requirements for certification
or licensing meet or exceed the licensure standards established by the State
where an individual seeks appraisal
licensure.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H98073D69818147AF9DC16EBE2CF8C264"><enum>(m)</enum><header>Consideration of
professional appraisal designations</header><text>Section 1122(d) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3351(d)) is amended by striking <quote>shall not exclude</quote> and all that
follows through the end of the subsection and inserting the following:
<quote>may include education achieved, experience, sample appraisals, and
references from prior clients. Membership in a nationally recognized
professional appraisal organization may be a criteria considered, though lack
of membership therein shall not be the sole bar against consideration for an
assignment under these criteria.</quote>.</text>
</subsection><subsection id="H9C8A5CB4C201447687ECA2F722FC506F"><enum>(n)</enum><header>Appraiser
independence</header><text>Section 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by adding at
the end the following new subsection:</text>
<quoted-block id="H5B3439658BAC42B29AFF532A3FB19EDF" style="OLC">
<subsection id="H68F7BA535D3442988660A4C01E748BA4"><enum>(g)</enum><header>Appraiser
independence monitoring</header><text display-inline="yes-display-inline">The
Appraisal Subcommittee shall monitor each State appraiser certifying and
licensing agency for the purpose of determining whether such agency’s policies,
practices, and procedures are consistent with the purposes of maintaining
appraiser independence and whether such State has adopted and maintains
effective laws, regulations, and policies aimed at maintaining appraiser
independence.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDABC7F2D0EEE4414814EECE83AD7B51E"><enum>(o)</enum><header>Appraiser
education</header><text>Section 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by inserting
after subsection (g) (as added by subsection (l) of this section) the following
new subsection:</text>
<quoted-block id="HC0983CF7BBC94551BF940A47E4E40624" style="OLC">
<subsection id="H83B858C8BB5343C2A380B3771E730904"><enum>(h)</enum><header>Approved
education</header><text>The Appraisal Subcommittee shall encourage the States
to accept courses approved by the Appraiser Qualification Board’s Course
Approval
Program.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H49E3D79F45C243E5986FDEA31198F5D0"><enum>(p)</enum><header>Appraisal
complaint hotline</header><text display-inline="yes-display-inline">Section
1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3351), as amended by this section, is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H7A5A698BFC544BF7A9816101004ADB62" style="OLC">
<subsection id="HE5A887EDB1404ACE82B3632D0D6AD415"><enum>(i)</enum><header>Appraisal
complaint national hotline</header><text display-inline="yes-display-inline">If, 6 months after the date of the
enactment of this subsection, the Appraisal Subcommittee determines that no
national hotline exists to receive complaints of non-compliance with appraisal
independence standards and Uniform Standards of Professional Appraisal
Practice, including complaints from appraisers, individuals, or other entities
concerning the improper influencing or attempted improper influencing of
appraisers or the appraisal process, the Appraisal Subcommittee shall establish
and operate such a national hotline, which shall include a toll-free telephone
number and an email address. If the Appraisal Subcommittee operates such a
national hotline, the Appraisal Subcommittee shall refer complaints for further
action to appropriate governmental bodies, including a State appraiser
certifying and licensing agency, a financial institution regulator, or other
appropriate legal authorities. For complaints referred to State appraiser
certifying and licensing agencies or to Federal regulators, the Appraisal
Subcommittee shall have the authority to follow up such complaint referrals in
order to determine the status of the resolution of the
complaint.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2B4910F56A1B482CB8B7A54B1DD28D41"><enum>(q)</enum><header>Automated
valuation models</header><text display-inline="yes-display-inline">Title XI of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3331 et seq.), as amended by this section, is amended by adding at the
end the following new section (and amending the table of contents
accordingly):</text>
<quoted-block display-inline="no-display-inline" id="H7473945570FC4E9CBC0169BBE561F48C" style="OLC">
<section id="HF7961FDDFB094690A6871BB6AB856594"><enum>1125.</enum><header>Automated
valuation models used to estimate collateral value for mortgage lending
purposes</header>
<subsection id="H68C6938089D6457DA6B5857900F2B09C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Automated valuation
models shall adhere to quality control standards designed to—</text>
<paragraph id="HAA3E5B368C954EB8ABB3CD425FE9CDF2"><enum>(1)</enum><text display-inline="yes-display-inline">ensure a high level of confidence in the
estimates produced by automated valuation models;</text>
</paragraph><paragraph id="HF32B41B5CFCE4F0F8349BC3CA3F57FE6"><enum>(2)</enum><text>protect against
the manipulation of data;</text>
</paragraph><paragraph id="H6FD084FF404744718AA119C33910783C"><enum>(3)</enum><text>seek to avoid
conflicts of interest;</text>
</paragraph><paragraph id="HBA97C4086C794B04AFECFE9150BF4CDC"><enum>(4)</enum><text>require random
sample testing and reviews; and</text>
</paragraph><paragraph id="HFE098E2B13EF498D97A7F05812EF2A60"><enum>(5)</enum><text>account for any
other such factor that the agencies listed in subsection (b) determine to be
appropriate.</text>
</paragraph></subsection><subsection id="HB080BEE5882E48B5924E094B4409783B"><enum>(b)</enum><header>Adoption of
regulations</header><text display-inline="yes-display-inline">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, 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.</text>
</subsection><subsection id="H4F627AB4B59B41E595E40F5502062233"><enum>(c)</enum><header>Enforcement</header><text display-inline="yes-display-inline">Compliance with regulations issued under
this subsection shall be enforced by—</text>
<paragraph id="H088C17018D314F75A21739A5C5746256"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="H91D4B289244A4C4D9ECBF24292E55188"><enum>(2)</enum><text>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, and a State attorney general.</text>
</paragraph></subsection><subsection id="HAF11CED84AB54322ADF7FB39428373E2"><enum>(d)</enum><header>Automated
valuation model defined</header><text display-inline="yes-display-inline">For
purposes of this section, the term <quote>automated valuation model</quote>
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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H486D98ABAB384F78B25ACCD1E32C680D"><enum>(r)</enum><header>Broker price
opinions</header><text display-inline="yes-display-inline">Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3331 et seq.), as amended by this section, is amended by adding at the end the
following new section (and amending the table of contents accordingly):</text>
<quoted-block display-inline="no-display-inline" id="HEDA213384C634728982F99C87BB8213C" style="OLC">
<section id="H7AF9F9BFB14B496D8730087C4D89E40F"><enum>1126.</enum><header>Broker price
opinions</header>
<subsection id="HCE40F2D907B143DBB177AB8AC6A3AC33"><enum>(a)</enum><header>General
prohibition</header><text display-inline="yes-display-inline">In conjunction
with the purchase of a consumer’s principal dwelling, broker price opinions may
not be used as the primary basis to determine the value of a piece of property
for the purpose of a loan origination of a residential mortgage loan secured by
such piece of property.</text>
</subsection><subsection id="H6FC7EB4B79294D2F961B2234D056B969"><enum>(b)</enum><header>Broker price
opinion defined</header><text>For purposes of this section, the term
<quote>broker price opinion</quote> means an estimate prepared by a real estate
broker, agent, or sales person that details the probable selling price of a
particular piece of real estate property and provides a varying level of detail
about the property’s condition, market, and neighborhood, and information on
comparable sales, but does not include an automated valuation model, as defined
in section
1125(c).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H53B23AB8FEC84A8BB6AAE50D5AE78406"><enum>(s)</enum><header>Amendments to
appraisal subcommittee</header><text>Section 1011 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is
amended—</text>
<paragraph id="H8B2315B5552448F0886E0E0F33818665"><enum>(1)</enum><text>in the first
sentence, by adding before the period the following: <quote>, the Bureau of
Consumer Financial Protection, and the Federal Housing Finance Agency</quote>;
and</text>
</paragraph><paragraph id="HA077DBF670CF4E4BAD82D56962208914"><enum>(2)</enum><text>by inserting at
the end the following: <quote>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.</quote>.</text>
</paragraph></subsection><subsection id="H9CC0EA6B9BDB4326AF30D1DB5927C188"><enum>(t)</enum><header>Technical
corrections</header>
<paragraph id="HFC5F62A7C714409D941B0158E1128E18"><enum>(1)</enum><text>Section 1119(a)(2)
of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3348(a)(2)) is amended by striking <quote>council,</quote> and inserting
<quote>Council,</quote>.</text>
</paragraph><paragraph id="H886C1BB24FE94F0E8536CEC95444F3C9"><enum>(2)</enum><text>Section 1121(6) of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3350(6)) is amended by striking <quote>Corporations,</quote> and
inserting <quote>Corporation,</quote>.</text>
</paragraph><paragraph id="H54124E3EF4C34F11A5430E6D48E8778D"><enum>(3)</enum><text>Section 1121(8) of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3350(8)) is amended by striking <quote>council</quote> and inserting
<quote>Council</quote>.</text>
</paragraph><paragraph id="H25DC885B06354927879CC366F045B367"><enum>(4)</enum><text>Section 1122 of
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3351) is amended—</text>
<subparagraph id="HDAB75F77BC8141C3861CC75067B8CD96"><enum>(A)</enum><text>in subsection
(a)(1) by moving the left margin of subparagraphs (A), (B), and (C) 2 ems to
the right; and</text>
</subparagraph><subparagraph id="HC043FE872C69492B81A1987FC34595E4"><enum>(B)</enum><text>in subsection
(c)—</text>
<clause id="H6293F04CBD504CD09A2679E997CD07D6"><enum>(i)</enum><text>by
striking <quote>Federal Financial Institutions Examination Council</quote> and
inserting <quote>Financial Institutions Examination Council</quote>; and</text>
</clause><clause id="HCBE1BA2261F6481C9A29DCA3E9081900"><enum>(ii)</enum><text>by
striking <quote>the council’s functions</quote> and inserting <quote>the
Council’s functions</quote>.</text>
</clause></subparagraph></paragraph></subsection></section><section commented="no" id="H4F512073DC414EFABCAA7E90A79AA3F4"><enum>1474.</enum><header>Equal Credit
Opportunity Act amendment</header><text display-inline="no-display-inline">Subsection (e) of section 701 of the Equal
Credit Opportunity Act (15 U.S.C. 1691) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEF80C1FFE48A4A43A7EAF22F77AAED66" style="OLC">
<subsection display-inline="no-display-inline" id="H6AA6CAD2586B452AB1FAACA074CB515D"><enum>(e)</enum><header>Copies furnished
to applicants</header>
<paragraph id="H7EF44B9AB71B4A4E93292907E889FC22"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each creditor shall
furnish to an applicant a copy of any and all written appraisals and valuations
developed in connection with the applicant’s application for a loan that is
secured or would have been secured by a first lien on a dwelling promptly upon
completion, but in no case later than 3 days prior to the closing of the loan,
whether the creditor grants or denies the applicant’s request for credit or the
application is incomplete or withdrawn.</text>
</paragraph><paragraph id="HAFF3BF27EDD84B22BBA40117E0F4C7EF"><enum>(2)</enum><header>Waiver</header><text display-inline="yes-display-inline">The applicant may waive the 3 day
requirement provided for in paragraph (1), except where otherwise required in
law.</text>
</paragraph><paragraph id="HE1F545CCF5B5432F9F1DE03447A31377"><enum>(3)</enum><header>Reimbursement</header><text>The
applicant may be required to pay a reasonable fee to reimburse the creditor for
the cost of the appraisal, except where otherwise required in law.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H2B74F977B90549FEB01900E87425B857"><enum>(4)</enum><header>Free
copy</header><text>Notwithstanding paragraph (3), the creditor shall provide a
copy of each written appraisal or valuation at no additional cost to the
applicant.</text>
</paragraph><paragraph id="H4E94A6320623414698AA9FBA88098529"><enum>(5)</enum><header>Notification to
applicants</header><text>At the time of application, the creditor shall notify
an applicant in writing of the right to receive a copy of each written
appraisal and valuation under this subsection.</text>
</paragraph><paragraph id="H13847D25FA9C4B02A8AD98353D7951BE"><enum>(6)</enum><header>Valuation
defined</header><text>For purposes of this subsection, the term
<term>valuation</term> shall include any estimate of the value of a dwelling
developed in connection with a creditor’s decision to provide credit, including
those values developed pursuant to a policy of a government sponsored
enterprise or by an automated valuation model, a broker price opinion, or other
methodology or
mechanism.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8FB416EE3BB4412C991742622212E30C"><enum>1475.</enum><header>Real Estate
Settlement Procedures Act of 1974 amendment relating to certain appraisal
fees</header><text display-inline="no-display-inline">Section 4 of the Real
Estate Settlement Procedures Act of 1974 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HEE640CBE292A4ACA8F7DD6E9F31BC8F6" style="OLC">
<subsection id="H2601A36323A94486A6DA17C8F68129CC"><enum>(c)</enum><text display-inline="yes-display-inline">The standard form described in subsection
(a) may include, in the case of an appraisal coordinated by an appraisal
management company (as such term is defined in section 1121(11) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3350(11))), a clear disclosure of—</text>
<paragraph id="HD87576357A9F4120954771C02FF8C38B"><enum>(1)</enum><text display-inline="yes-display-inline">the fee paid directly to the appraiser by
such company; and</text>
</paragraph><paragraph id="HA36E786752D942D6AA665E9A854EE078"><enum>(2)</enum><text>the administration
fee charged by such
company.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE6D0E1F3381F472B972D4DEA9C827EA3" section-type="subsequent-section"><enum>1476.</enum><header>GAO study on the
effectiveness and impact of various appraisal methods, valuation models and
distributions channels, and on the Home Valuation Code of conduct and the
Appraisal Subcommittee</header>
<subsection id="H19DBFF32D40E4081AE1AE3E870FC8FE3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Government
Accountability Office shall conduct a study on—</text>
<paragraph id="H46C28EFED9924F1988271CAEBE60C541"><enum>(1)</enum><text>the effectiveness
and impact of—</text>
<subparagraph id="H49B6EDC0A7FB41BDB71D430DB8B38297"><enum>(A)</enum><text>appraisal methods,
including the cost approach, the comparative sales approach, the income
approach, and others that may be available;</text>
</subparagraph><subparagraph id="H7972538B8AC841A69D34FA47879F890D"><enum>(B)</enum><text>appraisal
valuation models, including licensed and certified appraisals, broker-priced
opinions, and automated valuation models; and</text>
</subparagraph><subparagraph id="H31FDC53CEB294BA0A31EE5913A03AE0C"><enum>(C)</enum><text>appraisal
distribution channels, including appraisal management companies, independent
appraisal operations within mortgage originators, and fee-for-service
appraisers;</text>
</subparagraph></paragraph><paragraph id="H76338E1CC23E4965887A84F664667A16"><enum>(2)</enum><text>the Home Valuation
Code of Conduct; and</text>
</paragraph><paragraph id="H406C9319CAA143D39FDD063B7177F422"><enum>(3)</enum><text>the Appraisal
Subcommittee’s functions pursuant to title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989.</text>
</paragraph></subsection><subsection id="HDE7772FEA2E74AAB85FC1FA9FAA5F442"><enum>(b)</enum><header>Study</header><text>Not
later than—</text>
<paragraph id="HF6E4D8BDD510495D96C5CD96206EDB7E"><enum>(1)</enum><text>12 months after
the date of enactment of this Act, the Government Accountability Office shall
submit a study to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives;
and</text>
</paragraph><paragraph id="H24BE50E1134542769BF3B81A21E8FA89"><enum>(2)</enum><text>90 days after the
date of enactment of this Act, the Government Accountability Office shall
provide a report on the status of the study and any preliminary findings to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives.</text>
</paragraph></subsection><subsection id="HBE0E1060D287440D8EF220CE6A26E06F"><enum>(c)</enum><header>Content of
study</header><text display-inline="yes-display-inline">The study required by
this section shall include an examination of the following:</text>
<paragraph id="H0D9D9757CF8B485F96D18CF47B6BCC72"><enum>(1)</enum><header>Appraisal
approaches, valuation models, and distribution channels</header>
<subparagraph id="H193BF86595284E4591E309AC373390B2"><enum>(A)</enum><text>The prevalence,
alone or in combination, of certain appraisal approaches, models, and channels
in purchase-money and refinance mortgage transactions.</text>
</subparagraph><subparagraph id="HD2033EAEA0D74E97AF7E6C9DACEF8309"><enum>(B)</enum><text>The accuracy of
these approaches, models, and channels in assessing the property as
collateral.</text>
</subparagraph><subparagraph id="HCF68978F8E1B4F13A1EAFA6B7AFE9808"><enum>(C)</enum><text>Whether and how
these approaches, models, and channels contributed to price speculation during
the previous cycle.</text>
</subparagraph><subparagraph id="H28D9EE3616B346A586F31E2E0D784F68"><enum>(D)</enum><text>The costs to
consumers of these approaches, models, and channels.</text>
</subparagraph><subparagraph id="H9D24D10D19B0470682FD126CDEA7EC11"><enum>(E)</enum><text>The disclosure of
fees to consumers in the appraisal process.</text>
</subparagraph><subparagraph id="HB418556CF7CA4D07A5A1A4D9F2E04A17"><enum>(F)</enum><text>To what extent the
usage of these approaches, models, and channels may be influenced by a conflict
of interest between the mortgage lender and the appraiser and the mechanism by
which the lender selects and compensates the appraiser.</text>
</subparagraph><subparagraph id="H0B5F22D7AE664D50A27FE53299CF13ED"><enum>(G)</enum><text>The suitability of
these approaches, models, and channels in rural versus urban areas.</text>
</subparagraph></paragraph><paragraph id="HC3FCE0D621A144B3AFD9DF78008A1E05"><enum>(2)</enum><header>Home valuation
code of conduct (HVCC)</header>
<subparagraph id="H0CAAE7ECB26C43569C6F384BBC6F118A"><enum>(A)</enum><text display-inline="yes-display-inline">How the HVCC affects mortgage lenders’
selection of appraisers.</text>
</subparagraph><subparagraph id="HF85B8DDB05694B8287B994270F548890"><enum>(B)</enum><text>How the HVCC
affects State regulation of appraisers and appraisal distribution
channels.</text>
</subparagraph><subparagraph id="H64804005FC3D4AF88E4CD67623DE2BC2"><enum>(C)</enum><text>How the HVCC
affects the quality and cost of appraisals and the length of time to obtain an
appraisal.</text>
</subparagraph><subparagraph id="HF7CA84B76BE944E29631A77421DC7622"><enum>(D)</enum><text>How the HVCC
affects mortgage brokers, small businesses, and consumers.</text>
</subparagraph></paragraph></subsection><subsection id="HD1BAF9C3C65040F19B2DDAD53A28CB57"><enum>(d)</enum><header>Additional study
required</header>
<paragraph id="H0B8B9E5AC9484B89A8B426F7C13636CA"><enum>(1)</enum><header>In
general</header><text>Not later than 18 months after the date of enactment of
this Act, the Government Accountability Office shall submit a study to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives.</text>
</paragraph><paragraph id="H85E9A23C1B7A4372807A81D800F86FB8"><enum>(2)</enum><header>Content of
additional study</header><text>The study required under paragraph (1) shall
include—</text>
<subparagraph id="H3A8E9539382048658B955B2C7826DD09"><enum>(A)</enum><text>an examination
of—</text>
<clause id="H647C41973A964C778FB19FB443071CC2"><enum>(i)</enum><text>the
Appraisal Subcommittee’s ability to monitor and enforce State and Federal
certification requirements and standards, including by providing a summary with
a statistical breakdown of enforcement actions taken during the last 10
years;</text>
</clause><clause id="HBB440B31E9F5436A9C4A868A38655193"><enum>(ii)</enum><text>whether existing
Federal financial institutions regulatory agency exemptions on appraisals for
federally related transactions needs to be revised; and</text>
</clause><clause id="HD7B8CA130F394D7BAE8DBEBD83783C85"><enum>(iii)</enum><text>whether new
means of data collection, such as the establishment of a national repository,
would benefit the Appraisal Subcommittee’s ability to perform its functions;
and</text>
</clause></subparagraph><subparagraph commented="no" id="HD519F0F6C2F741ABB6FD152952B57E0B"><enum>(B)</enum><text>recommendations
from this examination for administrative and legislative action at the Federal
and State level.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="HE56EA268AC2C43059CFE5783C2EA4243"><enum>G</enum><header>Mortgage
resolution and modification</header>
<section id="H56D9C69A0A824435819B0461A5A9FDF9"><enum>1481.</enum><header>Multifamily
mortgage resolution program</header>
<subsection id="HE16735B10AE947C2A52725F8E2A99336"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall develop a program under this subsection to ensure the
protection of current and future tenants and at-risk multifamily properties,
where feasible, based on criteria that may include—</text>
<paragraph id="H00687624F47140D4B073B5792E2B290A"><enum>(1)</enum><text>creating
sustainable financing of such properties, that may take into consideration such
factors as—</text>
<subparagraph id="H138941FF51FC42CB81CA764093B5EA7D"><enum>(A)</enum><text>the rental income
generated by such properties; and</text>
</subparagraph><subparagraph id="H1DA13B3107A449D0ADC8AA6812559FA4"><enum>(B)</enum><text>the preservation
of adequate operating reserves;</text>
</subparagraph></paragraph><paragraph id="HC086AEC795224556B455DC8CEFBEBDEE"><enum>(2)</enum><text>maintaining the
level of Federal, State, and city subsidies in effect as of the date of the
enactment of this Act;</text>
</paragraph><paragraph id="H03141456640045ACA1C3A474F31FAAD0"><enum>(3)</enum><text>providing funds
for rehabilitation; and</text>
</paragraph><paragraph id="H4BC08C05D1954A7984EE58BEB46BB9C5"><enum>(4)</enum><text>facilitating the
transfer of such properties, when appropriate and with the agreement of owners,
to responsible new owners and ensuring affordability of such properties.</text>
</paragraph></subsection><subsection id="H6AE49A5045934FB9A651605A7C1BED8D"><enum>(b)</enum><header>Coordination</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may, in carrying out the program developed under this section,
coordinate with the Secretary of the Treasury, the Federal Deposit Insurance
Corporation, the Board of Governors of the Federal Reserve System, the Federal
Housing Finance Agency, and any other Federal Government agency that the
Secretary considers appropriate.</text>
</subsection><subsection id="HF48E0C5223F84DE1A12D262C1A5DA4A0"><enum>(c)</enum><header>Definition</header><text>For
purposes of this section, the term <quote>multifamily properties</quote> means
a residential structure that consists of 5 or more dwelling units.</text>
</subsection><subsection id="HCFD91F601EB046A6824707E865987B1B"><enum>(d)</enum><header>Prevention of
qualification for criminal applicants</header>
<paragraph id="HC6497F8F99E64667B9D4C1C1CF07BA13"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No person shall be
eligible to begin receiving assistance from the Making Home Affordable Program
authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5201 et seq.), or any other mortgage assistance program authorized or funded by
that Act, on or after 60 days after the date of the enactment of this Act, if
such person, in connection with a mortgage or real estate transaction, has been
convicted, within the last 10 years, of any one of the following:</text>
<subparagraph id="HD54E035144A844F5B29DE0EB9DB53B38"><enum>(A)</enum><text>Felony larceny,
theft, fraud, or forgery.</text>
</subparagraph><subparagraph id="HF5029FB53D3D47A9860EB8FF4031DE87"><enum>(B)</enum><text>Money
laundering.</text>
</subparagraph><subparagraph id="HE703F310D342472B847934DEBAB170FA"><enum>(C)</enum><text>Tax
evasion.</text>
</subparagraph></paragraph><paragraph id="H0CB1B04C33AB4C59A8217E602DFE2F8D"><enum>(2)</enum><header>Procedures</header><text>The
Secretary shall establish procedures to ensure compliance with this
subsection.</text>
</paragraph><paragraph id="H96AC0B26A8594FCD9E77E0665ADA5CDB"><enum>(3)</enum><header>Report</header><text>The
Secretary shall report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate regarding the implementation of this provision. The report shall also
describe the steps taken to implement this subsection.</text>
</paragraph></subsection></section><section id="H7ED5744F5E5E4F5EB4B544E78C229B51"><enum>1482.</enum><header>Home
Affordable Modification Program guidelines</header>
<subsection id="HB417C1DCF6B4446BB41FCEB2331471F6"><enum>(a)</enum><header>Net present
value input data</header><text display-inline="yes-display-inline">The
Secretary of the Treasury (in this section referred to as the
<quote>Secretary</quote>) shall revise the supplemental directives and other
guidelines for the Home Affordable Modification Program of the Making Home
Affordable initiative of the Secretary of the Treasury, authorized under the
Emergency Economic Stabilization Act of 2008 (Public Law 110–343), to require
each mortgage servicer participating in such program to provide each borrower
under a mortgage whose request for a mortgage modification under the Program is
denied with all borrower-related and mortgage-related input data used in any
net present value (NPV) analyses performed in connection with the subject
mortgage. Such input data shall be provided to the borrower at the time of such
denial.</text>
</subsection><subsection id="HA00C120DFC02482986D362395EA31243"><enum>(b)</enum><header>Web-based site
for NPV calculator and application</header>
<paragraph id="HE4471F232457419A9B2D163B69859A81"><enum>(1)</enum><header>NPV
calculator</header><text display-inline="yes-display-inline">In carrying out
the Home Affordable Modification Program, the Secretary shall establish and
maintain a site on the World Wide Web that provides a calculator for net
present value analyses of a mortgage, based on the Secretary’s methodology for
calculating such value, that mortgagors can use to enter information regarding
their own mortgages and that provides a determination after entering such
information regarding a mortgage of whether such mortgage would be accepted or
rejected for modification under the Program, using such methodology.</text>
</paragraph><paragraph id="H0419826BADF84398A1C75316982924BA"><enum>(2)</enum><header>Disclosure</header><text>Such
Web site shall also prominently disclose that each mortgage servicer
participating in such Program may use a method for calculating net present
value of a mortgage that is different than the method used by such
calculator.</text>
</paragraph><paragraph id="H3D3FC479486A4843A73BC014511C9F8C"><enum>(3)</enum><header>Application</header><text>The
Secretary shall make a reasonable effort to include on such World Wide Web site
a method for homeowners to apply for a mortgage modification under the Home
Affordable Modification Program.</text>
</paragraph></subsection><subsection id="H0A227FE5FCED4375B1A0A5C0A9B390B7"><enum>(c)</enum><header>Public
availability of NPV methodology, computer model, and
variables</header><text>The Secretary shall make publicly available, including
by posting on a World Wide Web site of the Secretary—</text>
<paragraph id="H4127ED0EAF5449F48867986C0E39F7BB"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary’s methodology and computer
model, including all formulae used in such computer model, used for calculating
net present value of a mortgage that is used by the calculator established
pursuant to subsection (b); and</text>
</paragraph><paragraph id="H9AC7E7E22C7046ED866772ABA8989901"><enum>(2)</enum><text>all
non-proprietary variables used in such net present value analysis.</text>
</paragraph></subsection></section><section id="H0877BF880C8B49E7B056B63BBC96A580"><enum>1483.</enum><header>Public
availability of information of Making Home Affordable Program</header>
<subsection id="HE8487C278F3147168AE7C3DC7ADF3D5D"><enum>(a)</enum><header>Revisions to
program guidelines</header><text display-inline="yes-display-inline">The
Secretary of the Treasury (in this section referred to as the
<quote>Secretary</quote>) shall revise the guidelines for the Home Affordable
Modification Program of the Making Home Affordable initiative of the Secretary
of the Treasury, authorized under the Emergency Economic Stabilization Act of
2008 (Public Law 110–343), to provide that the data being collected by the
Secretary from each mortgage servicer and lender participating in the Program
is made public in accordance with subsection (b).</text>
</subsection><subsection id="HEBF4208ACA49493D9535CF0DA0ACE85A"><enum>(b)</enum><header>Public
availability</header><text display-inline="yes-display-inline">Data shall be
made available according to the following guidelines:</text>
<paragraph id="HB9FCE0210FBA40A7A60C7E54724A1A91"><enum>(1)</enum><text display-inline="yes-display-inline">Not more than 14 days after each monthly
deadline for submission of data by mortgage servicers and lenders participating
in the Program, reports shall be made publicly available by means of a World
Wide Web site of the Secretary, and by submitting a report to the Congress,
that shall includes the following information:</text>
<subparagraph id="HBEEECCB2FA684E26B052B92208958EB8"><enum>(A)</enum><text>The number of
requests for mortgage modifications under the Program that the servicer or
lender has received.</text>
</subparagraph><subparagraph id="H1F1E32B96A9641CA80EAC096C1CECA28"><enum>(B)</enum><text>The number of
requests for mortgage modifications under the Program that the servicer or
lender has processed.</text>
</subparagraph><subparagraph id="HA71F41D2919F472BAF4C93E42FDD04C8"><enum>(C)</enum><text>The number of
requests for mortgage modifications under the Program that the servicer or
lender has approved.</text>
</subparagraph><subparagraph id="HF7249FD0C08947A693FC89721701EBC3"><enum>(D)</enum><text>The number of
requests for mortgage modifications under the Program that the servicer or
lender has denied.</text>
</subparagraph></paragraph><paragraph id="HF4C5B456ECB04A428F64BE2FFE2A0E88"><enum>(2)</enum><text display-inline="yes-display-inline">Not more than 60 days after each monthly
deadline for submission of data by mortgage servicers and lenders participating
in the Program, the Secretary shall make data tables available to the public at
the individual record level. The Secretary shall issue regulations
prescribing—</text>
<subparagraph id="H36C3696BC785456EAA18ACBECC83063F"><enum>(A)</enum><text>the procedures for
disclosing such data to the public; and</text>
</subparagraph><subparagraph id="HE6158B24FD554437BB62E712F7680139"><enum>(B)</enum><text>such deletions as
the Secretary may determine to be appropriate to protect any privacy interest
of any mortgage modification applicant, including the deletion or alteration of
the applicant's name and identification number.</text>
</subparagraph></paragraph></subsection></section><section id="HA67D06FCB0524954A2CFE711FE39C676"><enum>1484.</enum><header>Protecting
tenants at foreclosure extension and clarification</header><text display-inline="no-display-inline">The
Protecting Tenants at Foreclosure Act is amended—</text>
<paragraph id="HAF8067F252E0471AA5CECAEBB6951FA2"><enum>(1)</enum><text>in section 702 (12
U.S.C. 5220 note)—</text>
<subparagraph id="H93A5774CA184449993F79D3C449F72D4"><enum>(A)</enum><text>in subsection
(a)(2), by striking <quote>, as of the date of such notice of
foreclosure</quote>; and</text>
</subparagraph><subparagraph id="H8E4CD338612544438E352DC37E53E180"><enum>(B)</enum><text>in subsection (c),
by inserting after the period the following: <quote>For purposes of this
section, the date of a notice of foreclosure shall be deemed to be the date on
which complete title to a property is transferred to a successor entity or
person as a result of an order of a court or pursuant to provisions in a
mortgage, deed of trust, or security deed.</quote>; and</text>
</subparagraph></paragraph><paragraph id="HB29E7D40D7FB4F18857056BE4D76E137"><enum>(2)</enum><text>in section 704 (12
U.S.C. 5201 note), by striking <quote>2012</quote> and inserting
<quote>2014</quote>.</text>
</paragraph></section></subtitle><subtitle id="HB91ECAFFACBA436BB9E17539489B3BE8"><enum>H</enum><header>Miscellaneous
provisions</header>
<section display-inline="no-display-inline" id="H285296D013A9481090A0DEAB5F4F8DD5" section-type="subsequent-section"><enum>1491.</enum><header>Sense of Congress
regarding the importance of government-sponsored enterprises reform to enhance
the protection, limitation, and regulation of the terms of residential mortgage
credit</header>
<subsection id="H20FDBF5E838441079FF025D01D266357"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds as follows:</text>
<paragraph id="H1D59027F39C64B3593E775F9D52EA403"><enum>(1)</enum><text>The
Government-sponsored enterprises, Federal National Mortgage Association (Fannie
Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), were
chartered by Congress to ensure a reliable and affordable supply of mortgage
funding, but enjoy a dual legal status as privately owned corporations with
Government mandated affordable housing goals.</text>
</paragraph><paragraph id="H7AC283D11A4D4E9D872D3380CC7F6BD6"><enum>(2)</enum><text>In 1996, the
Department of Housing and Urban Development required that 42 percent of Fannie
Mae’s and Freddie Mac’s mortgage financing should go to borrowers with income
levels below the median for a given area.</text>
</paragraph><paragraph id="HA804CFBA105D41ACB8102E131702CA1E"><enum>(3)</enum><text>In 2004, the
Department of Housing and Urban Development revised those goals, increasing
them to 56 percent of their overall mortgage purchases by 2008, and
additionally mandated that 12 percent of all mortgage purchases by Fannie Mae
and Freddie Mac be <quote>special affordable</quote> loans made to borrowers
with incomes less than 60 percent of an area’s median income, a target that
ultimately increased to 28 percent for 2008.</text>
</paragraph><paragraph id="HF3ECDE99274B4E4B8B8E349A2EBD10CF"><enum>(4)</enum><text>To help fulfill
those mandated affordable housing goals, in 1995 the Department of Housing and
Urban Development authorized Fannie Mae and Freddie Mac to purchase subprime
securities that included loans made to low-income borrowers.</text>
</paragraph><paragraph id="HE7EF541D98C44F5EAFE2EE7C9AED50C5"><enum>(5)</enum><text>After this
authorization to purchase subprime securities, subprime and near-prime loans
increased from 9 percent of securitized mortgages in 2001 to 40 percent in
2006, while the market share of conventional mortgages dropped from 78.8
percent in 2003 to 50.1 percent by 2007 with a corresponding increase in
subprime and Alt-A loans from 10.1 percent to 32.7 percent over the same
period.</text>
</paragraph><paragraph id="H66FBE02E088644FCBCDC59587B1F212F"><enum>(6)</enum><text>In 2004 alone,
Fannie Mae and Freddie Mac purchased $175,000,000,000 in subprime mortgage
securities, which accounted for 44 percent of the market that year, and from
2005 through 2007, Fannie Mae and Freddie Mac purchased approximately
$1,000,000,000,000 in subprime and Alt-A loans, while Fannie Mae’s acquisitions
of mortgages with less than 10 percent down payments almost tripled.</text>
</paragraph><paragraph id="H4E8E46E8BF8B429387A65BE9B923ADA6"><enum>(7)</enum><text>According to data
from the Federal Housing Finance Agency (FHFA) for the fourth quarter of 2008,
Fannie Mae and Freddie Mac own or guarantee 75 percent of all newly originated
mortgages, and Fannie Mae and Freddie Mac currently own 13.3 percent of
outstanding mortgage debt in the United States and have issued mortgage-backed
securities for 31.0 percent of the residential debt market, a combined total of
44.3 percent of outstanding mortgage debt in the United States.</text>
</paragraph><paragraph id="HE928617892E943FE9C4A869925F69E0C"><enum>(8)</enum><text>On September 7,
2008, the FHFA placed Fannie Mae and Freddie Mac into conservatorship, with the
Treasury Department subsequently agreeing to purchase at least $200,000,000,000
of preferred stock from each enterprise in exchange for warrants for the
purchase of 79.9 percent of each enterprise’s common stock.</text>
</paragraph><paragraph id="H1006B17B235D4AD1A92987661A265B12"><enum>(9)</enum><text>The
conservatorship for Fannie Mae and Freddie Mac has potentially exposed
taxpayers to upwards of $5,300,000,000,000 worth of risk.</text>
</paragraph><paragraph id="HF9AC1546C9CF417BB005F8BFC01FFF5F"><enum>(10)</enum><text>The hybrid
public-private status of Fannie Mae and Freddie Mac is untenable and must be
resolved to assure that consumers are offered and receive residential mortgage
loans on terms that reasonably reflect their ability to repay the loans and
that are understandable and not unfair, deceptive, or abusive.</text>
</paragraph></subsection><subsection id="H5B3275B7025C4E74A4619D11F0DF7C86"><enum>(b)</enum><header>Sense of the
Congress</header><text>It is the sense of the Congress that efforts to enhance
by the protection, limitation, and regulation of the terms of residential
mortgage credit and the practices related to such credit would be incomplete
without enactment of meaningful structural reforms of Fannie Mae and Freddie
Mac.</text>
</subsection></section><section id="H6ACCDE015D6C4172A57822FC2C99EB19"><enum>1492.</enum><header>GAO study
report on government efforts to combat mortgage foreclosure rescue scams and
loan modification fraud</header>
<subsection id="H89C0680EA90B487F9016BD48CB825984"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study of the current inter-agency efforts of the
Secretary of the Treasury, the Secretary of Housing and Urban Development, the
Attorney General, and the Federal Trade Commission to crackdown on mortgage
foreclosure rescue scams and loan modification fraud in order to advise the
Congress to the risks and vulnerabilities of emerging schemes in the loan
modification arena.</text>
</subsection><subsection id="H850A90E72F944AF8A11098B6A491E32D"><enum>(b)</enum><header>Report</header>
<paragraph id="HBC9B5EFBC22741768974FD3DBFDA0D34"><enum>(1)</enum><header>In
general</header><text>The Comptroller General shall submit a report to the
Congress on the study conducted under subsection (a) containing such
recommendations for legislative and administrative actions as the Comptroller
General may determine to be appropriate in addition to the recommendations
required under paragraph (2).</text>
</paragraph><paragraph id="HF04ED27436E14B96A4F9D0508A95FBEE"><enum>(2)</enum><header>Specific
topics</header><text display-inline="yes-display-inline">The report made under
paragraph (1) shall include—</text>
<subparagraph id="H17F7E06F552F49BDBFAFB4A9EDD120CD"><enum>(A)</enum><text>an evaluation of
the effectiveness of the inter-agency task force current efforts to combat
mortgage foreclosure rescue scams and loan modification fraud scams;</text>
</subparagraph><subparagraph id="HB9C8086ED92046BFA1B0C165CEAF4BC6"><enum>(B)</enum><text>specific
recommendations on agency or legislative action that are essential to properly
protect homeowners from mortgage foreclosure rescue scams and loan modification
fraud scams; and</text>
</subparagraph><subparagraph id="HC0BD8FF4A88C47ECB645FBEEB696F5DF"><enum>(C)</enum><text>the adequacy of
financial resources that the Federal Government is allocating to—</text>
<clause id="HF872ACECF7874E4C8B4AB054A6739147"><enum>(i)</enum><text>crackdown on loan
modification and foreclosure rescue scams; and</text>
</clause><clause id="HAD231AA4E0DE44F18ACC78FEC0A7DDE8"><enum>(ii)</enum><text>the
education of homeowners about fraudulent scams relating to loan modification
and foreclosure rescues.</text>
</clause></subparagraph></paragraph></subsection></section><section id="HADF5E059CDB745F9B46F6D65249EDD7B"><enum>1493.</enum><header>Reporting of
mortgage data by State</header>
<subsection id="H87C464929F7D419FA8797F4FCB6DC0C1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 104(a) of the
Helping Families Save Their Homes Act of 2009 (division A of Public Law 111–22)
is amended—</text>
<paragraph id="H1A79AE0EEA6A401591080A55AC98637A"><enum>(1)</enum><text>in paragraph (2),
by striking <quote>resulting</quote> and inserting <quote>in each State that
result</quote>;</text>
</paragraph><paragraph id="HE9DA8210AEDA43DCB22E1527CFDB2B10"><enum>(2)</enum><text>in paragraph (3),
by inserting <quote>each State for</quote> after <quote>modifications
in</quote>; and</text>
</paragraph><paragraph id="HCE5C6ADE44A242A68B42C84010359299"><enum>(3)</enum><text>in paragraph (4),
by inserting <quote>in each State</quote> after <quote>total number of
loans</quote>.</text>
</paragraph></subsection><subsection id="HF464ED25C4304CCFA5D5F8177AE9CCBC"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section
104(b)(1)(A) of such Act is amended by adding at the end the following
sentence: <quote>Not later than 60 days after the date of the enactment of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the Comptroller of
the Currency and the Director of the Office of Thrift Supervision shall update
such requirements to reflect amendments made to this section by such
Act.</quote>.</text>
</subsection></section><section id="HD3CFFEC0F304483A8D63DD28E1807444"><enum>1494.</enum><header>Study of
effect of drywall presence on foreclosures</header>
<subsection id="H908AFAE378A040318DC436742DD1B29D"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development, in consultation with the Secretary of the Treasury, shall conduct
a study of the effect on residential mortgage loan foreclosures of—</text>
<paragraph id="HB410EF64A6FD4CFE9A38F28E00D5B741"><enum>(1)</enum><text>the presence in
residential structures subject to such mortgage loans of drywall that was
imported from China during the period beginning with 2004 and ending at the end
of 2007; and</text>
</paragraph><paragraph id="HB49661E42F424564BC1E11FEA0949711"><enum>(2)</enum><text>the availability
of property insurance for residential structures in which such drywall is
present.</text>
</paragraph></subsection><subsection id="H6A9F35CE9C1C4A689AC4294625317530"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the expiration of the
120-day period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit to the Congress a
report on the study conducted under subsection (a) containing its findings,
conclusions, and recommendations.</text>
</subsection></section><section id="H4D2552F9E38B4CE89D7BDBC418B39F6B"><enum>1495.</enum><header>Definition</header><text display-inline="no-display-inline">For purposes of this title, the term
<quote>designated transfer date</quote> means the date established under
section 1062 of this Act.</text>
</section><section id="H21D118A2AB9D476B8A4E3107AD72ECBB"><enum>1496.</enum><header>Emergency
mortgage relief</header>
<subsection id="H4C06FE0FA6C04FD992F256B6F1548237"><enum>(a)</enum><header>Emergency
Homeowners’ Relief Fund</header><text display-inline="yes-display-inline">Effective October 1, 2010, and
notwithstanding any other provision of law, there is hereby made available to
the Secretary of Housing and Urban Development such sums as are necessary to
provide $1,000,000,000 in assistance through the Emergency Homeowners’ Relief
Fund, which such Secretary shall establish pursuant to section 107 of the
Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is amended by this
section, for use for emergency mortgage assistance in accordance with title I
of such Act.</text>
</subsection><subsection id="H2399D4DB226E4EC8B221E4AF70F2C82D"><enum>(b)</enum><header>Reauthorization
of emergency mortgage relief program</header><text>Title I of the Emergency
Housing Act of 1975 is amended—</text>
<paragraph id="HE2FFE107A004496A9B92EDD234241DA1"><enum>(1)</enum><text>in section 103 (12
U.S.C. 2702)—</text>
<subparagraph id="HEAA38F3007394CE1AAC2682FD04D4B4F"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="HC564DD10405B4BB5AF63A185F3044E69"><enum>(i)</enum><text>by
striking <quote>have indicated</quote> and all that follows through
<quote>regulation of the holder</quote> and insert <quote>have
certified</quote>;</text>
</clause><clause id="HEE6A7BC71C204AC19C1E1CA21A95693D"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>(such as the volume of
delinquent loans in its portfolio)</quote>; and</text>
</clause><clause id="HC9FFD61FAF3D4EDDBAB435DDD615384B"><enum>(iii)</enum><text>by
striking <quote>, except that such statement</quote> and all that follows
through <quote>purposes of this title</quote>; and</text>
</clause></subparagraph><subparagraph id="H8777CAA608764C41901270E828ECB015"><enum>(B)</enum><text>in paragraph (4),
by inserting <quote>or medical conditions</quote> after <quote>adverse economic
conditions</quote>;</text>
</subparagraph></paragraph><paragraph id="H227D71A8C4674786B4859DBDE9CBC6D2"><enum>(2)</enum><text>in section 104 (12
U.S.C. 2703)—</text>
<subparagraph commented="no" id="H9D40F7B6DE3C40E9BC8166F63E33ADE2"><enum>(A)</enum><text>in subsection (b),
by striking <quote>, but such assistance</quote> and all that follows through
the period at the end and inserting the following: <quote>. The amount of
assistance provided to a homeowner under this title shall be an amount that the
Secretary determines is reasonably necessary to supplement such amount as the
homeowner is capable of contributing toward such mortgage payment, except that
the aggregate amount of such assistance provided for any homeowner shall not
exceed $50,000.</quote>;</text>
</subparagraph><subparagraph id="H0D79AEEA2FD845CE95A99D2585EF65E1"><enum>(B)</enum><text>in subsection (d),
by striking <quote>interest on a loan or advance</quote> and all that follows
through the end of the subsection and inserting the following: <quote>(1) the
rate of interest on any loan or advance of credit insured under this title
shall be fixed for the life of the loan or advance of credit and shall not
exceed the rate of interest that is generally charged for mortgages on
single-family housing insured by the Secretary of Housing and Urban Development
under title II of the National Housing Act at the time such loan or advance of
credit is made, and (2) no interest shall be charged on interest which is
deferred on a loan or advance of credit made under this title. In establishing
rates, terms and conditions for loans or advances of credit made under this
title, the Secretary shall take into account a homeowner’s ability to repay
such loan or advance of credit.</quote>; and</text>
</subparagraph><subparagraph id="H86EF52A1210D45F5914BBADFCF164C53"><enum>(C)</enum><text>in subsection (e),
by inserting after the period at the end of the first sentence the following:
<quote>Any eligible homeowner who receives a grant or an advance of credit
under this title may repay the loan in full, without penalty, by lump sum or by
installment payments at any time before the loan becomes due and
payable.</quote>;</text>
</subparagraph></paragraph><paragraph id="HE5A5CFEFE5DD47C1969FB7EE49493B6C"><enum>(3)</enum><text display-inline="yes-display-inline">in section 105 (12 U.S.C. 2704)—</text>
<subparagraph id="H6E6FEBE621704F34B396E32F69EF158D"><enum>(A)</enum><text>by striking
subsection (b);</text>
</subparagraph><subparagraph commented="no" id="H3E65F9FADB38442DB2345BDC1C13FFFD"><enum>(B)</enum><text>in subsection
(e)—</text>
<clause id="H7124F06835C14B0290796760F1FABBB5"><enum>(i)</enum><text>by
inserting <quote>and emergency mortgage relief payments made under section
106</quote> after <quote>insured under this section</quote>; and</text>
</clause><clause id="H79D1C0D590B44D31B8D8CEDF8FC97336"><enum>(ii)</enum><text>by
striking <quote>$1,500,000,000 at any one time</quote> and inserting
<quote>$3,000,000,000</quote>;</text>
</clause></subparagraph><subparagraph id="HB0E587B607714F58B2B4795B476FE9CF"><enum>(C)</enum><text>by redesignating
subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively;
and</text>
</subparagraph><subparagraph id="HAAE820271F0E4E279698E6F24A6AB085"><enum>(D)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H514672A3C5834C93BD4DDAA44CA40190" style="OLC">
<subsection id="H18F47D5A223B43BE8F7A030BDE65A753"><enum>(e)</enum><text display-inline="yes-display-inline">The Secretary shall establish underwriting
guidelines or procedures to allocate amounts made available for loans and
advances insured under this section and for emergency relief payments made
under section 106 based on the likelihood that a mortgagor will be able to
resume mortgage payments, pursuant to the requirement under section
103(5).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H583810142B5F4887A21A93B70903359A"><enum>(4)</enum><text>in section
107—</text>
<subparagraph id="H2E172D4DADF5469083F0228EF1F4CC84"><enum>(A)</enum><text>by striking
<quote>(a)</quote>; and</text>
</subparagraph><subparagraph id="H0A9080DC51FA4EF890BA9FDBAB4A37B7"><enum>(B)</enum><text>by striking
subsection (b);</text>
</subparagraph></paragraph><paragraph id="H081F223837414DBCAD934370FF23AFE1"><enum>(5)</enum><text>in section 108 (12
U.S.C. 2707), by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HAE9F1C63F8E040CC84562235D381F05B" style="OLC">
<subsection id="HA65103D9BC994AAE942E7A50BC7F31FC"><enum>(d)</enum><header>Coverage of
existing programs</header><text display-inline="yes-display-inline">The
Secretary shall allow funds to be administered by a State that has an existing
program that is determined by the Secretary to provide substantially similar
assistance to homeowners. After such determination is made such State shall not
be required to modify such program to comply with the provisions of this
title.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6D523C1925564CAA8220A20417FFDDBB"><enum>(6)</enum><text>in section 109 (12
U.S.C. 2708)—</text>
<subparagraph id="HC7DED74A4F3143779F3E0C18549FD4C2"><enum>(A)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="traditional">authorization and</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H055D0DB20B674C7D8D5AF409D520B109"><enum>(B)</enum><text>by striking
subsection (a);</text>
</subparagraph><subparagraph id="H9058A2203C1844E2AD58FE5EC0FD7577"><enum>(C)</enum><text>by striking
<quote>(b)</quote>; and</text>
</subparagraph><subparagraph id="HF4D2BB3D2D804E58985E11A03E73F877"><enum>(D)</enum><text>by striking
<quote>1977</quote> and inserting <quote>2011</quote>;</text>
</subparagraph></paragraph><paragraph id="HE6008305630B4491B0ACDEF53A6391C1"><enum>(7)</enum><text display-inline="yes-display-inline">by striking sections 110, 111, and 113 (12
U.S.C. 2709, 2710, 2712); and</text>
</paragraph><paragraph id="HA43F0AF5304E41F3B38E7FC5D5740E24"><enum>(8)</enum><text>by redesignating
section 112 (12 U.S.C. 2711) as section 110.</text>
</paragraph></subsection></section><section id="HEC27011C02004C61A470026A7B2B133F"><enum>1497.</enum><header>Additional
assistance for Neighborhood Stabilization Program</header>
<subsection id="H328440A4A7D944E5ACE953A3DBFE8DDF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Effective October 1,
2010, out of funds in the Treasury not otherwise appropriated, there is hereby
made available to the Secretary of Housing and Urban Development
$1,000,000,000, and the Secretary of Housing and Urban Development shall use
such amounts for assistance to States and units of general local government for
the redevelopment of abandoned and foreclosed homes, in accordance with the
same provisions applicable under the second undesignated paragraph under the
heading <quote>Community Planning and Development—Community Development
Fund</quote> in title XII of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217) to amounts made
available under such second undesignated paragraph, except as follows:</text>
<paragraph id="H8F18DB495C3B4EDF9C6EEA93F1341B62"><enum>(1)</enum><text>Notwithstanding
the matter of such second undesignated paragraph that precedes the first
proviso, amounts made available by this section shall remain available until
expended.</text>
</paragraph><paragraph id="H68411FA2F04C465DA79A2F0E12F1D945"><enum>(2)</enum><text>The 3rd, 4th, 5th,
6th, 7th, and 15th provisos of such second undesignated paragraph shall not
apply to amounts made available by this section.</text>
</paragraph><paragraph id="H20C04A919BA44B4CABDAE328F173ACC1"><enum>(3)</enum><text>Amounts made
available by this section shall be allocated based on a funding formula for
such amounts established by the Secretary in accordance with section 2301(b) of
the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note), except
that—</text>
<subparagraph id="H1A4C01C82385451BA503DE8CEFBAD470"><enum>(A)</enum><text>notwithstanding
paragraph (2) of such section 2301(b), the formula shall be established not
later than 30 days after the date of the enactment of this Act;</text>
</subparagraph><subparagraph id="H78B86F193567487B925EC49180A76930"><enum>(B)</enum><text>notwithstanding
such section 2301(b), each State shall receive, at a minimum, not less than 0.5
percent of funds made available under this section;</text>
</subparagraph><subparagraph id="H32598B451B72451C81C3A23903A33002"><enum>(C)</enum><text>the Secretary may
establish a minimum grant amount for direct allocations to units of general
local government located within a State, which shall not exceed
$1,000,000;</text>
</subparagraph><subparagraph id="H09684724184846FD8F23233D1E78BD26"><enum>(D)</enum><text display-inline="yes-display-inline">each State and local government receiving
grant amounts shall establish procedures to create preferences for the
development of affordable rental housing for properties assisted with amounts
made available by this section; and</text>
</subparagraph><subparagraph id="H081F36B8F96D4AE6A3092EC576A799F5"><enum>(E)</enum><text>the Secretary may
use not more than 2 percent of the funds made available under this section for
technical assistance to grantees.</text>
</subparagraph></paragraph><paragraph id="H4D608E0B59EC48F680298AB8CA8B1256"><enum>(4)</enum><text>Paragraph (1) of
section 2301(c) of the Housing and Economic Recovery Act of 2008 shall not
apply to amounts made available by this section.</text>
</paragraph><paragraph id="HE38CE8BBFD404E90966B0ED624B956C2"><enum>(5)</enum><text>The fourth proviso
from the end of such second undesignated paragraph shall be applied to amounts
made available by this section by substituting <quote>2013</quote> for
<quote>2012</quote>.</text>
</paragraph><paragraph id="H4561C6CE664E469785FFEE358BB2567D"><enum>(6)</enum><text>Notwithstanding
section 2301(a) of the Housing and Economic Recovery Act of 2008, the term
<quote>State</quote> means any State, as defined in section 102 of the Housing
and Community Development Act of 1974 (42 U.S.C. 5302), and the District of
Columbia, for purposes of this section and this title, as applied to amounts
made available by this section.</text>
</paragraph><paragraph id="H24F59CAE235A4489850132E5D2BB8C14"><enum>(7)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H57E13CD975A1486AA57FB05A52461A73"><enum>(A)</enum><text>None of the amounts made
available by this section shall be distributed to—</text>
<clause id="H08CA77CCDA7C40FEB8363685A1008998" indent="up1"><enum>(i)</enum><text>any organization which has been
convicted for a violation under Federal law relating to an election for Federal
office; or</text>
</clause><clause id="H80107E05FCF145D48D123315008E173E" indent="up1"><enum>(ii)</enum><text>any organization which employs
applicable individuals.</text>
</clause></subparagraph><subparagraph id="H361BD39AC692419BA1653B96FDDC3982" indent="up1"><enum>(B)</enum><text>In this paragraph, the term
<quote>applicable individual</quote> means an individual who—</text>
<clause id="HD37D421D099F47E2A43FFBA5B1398238"><enum>(i)</enum><text>is—</text>
<subclause id="H41798FAF901042E9BE5EA5C3D290ED52"><enum>(I)</enum><text>employed by the organization in a
permanent or temporary capacity;</text>
</subclause><subclause id="HFECBD98C59744480A883AC07D00DF5CD"><enum>(II)</enum><text>contracted or retained by the
organization; or</text>
</subclause><subclause id="H2121B888CC81498DB0481782EE9591A0"><enum>(III)</enum><text>acting on behalf of, or with the
express or apparent authority of, the organization; and</text>
</subclause></clause><clause id="H0DF5FF2FCF614AE693AD2C430505F505"><enum>(ii)</enum><text>has been convicted for a violation
under Federal law relating to an election for Federal office.</text>
</clause></subparagraph></paragraph><paragraph id="H3AD4722430394E0B811D42B4DE506A40"><enum>(8)</enum><text display-inline="yes-display-inline">An eligible entity receiving a grant under
this section shall, to the maximum extent feasible, provide for the hiring of
employees who reside in the vicinity, as such term is defined by the Secretary,
of projects funded under this section or contract with small businesses that
are owned and operated by persons residing in the vicinity of such
projects.</text>
</paragraph></subsection><subsection id="H8DC4AD6F98CC4A898D266AC5D950FD28"><enum>(b)</enum><header>Additional
amendments</header>
<paragraph id="HF4DE47C67A2B47428D10BFCBA6D33B08"><enum>(1)</enum><header>Section
2301</header><text>Section 2301(f)(3)(A)(ii) of the Housing and Economic
Recovery Act of 2008 (42 U.S.C. 5301(f)(3)(A)(ii))—</text>
<subparagraph id="H4B0EC996E0264583B5F7B9A924A799E4"><enum>(A)</enum><text>is amended by
striking <quote>for the purchase and redevelopment of abandoned and foreclosed
upon homes or residential properties that will be used</quote>; and</text>
</subparagraph><subparagraph id="HCDA4A4557F64471284E7AA0D14205EC5"><enum>(B)</enum><text>shall apply with
respect to any unexpended or unobligated balances, including recaptured and
reallocated funds made available under this Act, section 2301 of the Housing
and Economic Recovery Act of 2008 (42 U.S.C. 5301), and the heading
<quote>Community Planning and Development—Community Development Fund</quote> in
title XII of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 217).</text>
</subparagraph></paragraph><paragraph id="H2AF65875EFE84F3190CE5D4E79348C5D"><enum>(2)</enum><header>Notice of
foreclosure</header><text display-inline="yes-display-inline">For any amounts
made available under this section, under division B, title III of the Housing
and Economic Recovery Act of 2008 (42 U.S.C. 5301), or under the heading
<quote>Community Planning and Development—Community Development Fund</quote> in
title XII of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 217), the date of a notice of foreclosure shall be
deemed to be the date on which complete title to a property is transferred to a
successor entity or person as a result of an order of a court or pursuant to
provisions in a mortgage, deed of trust, or security deed.</text>
</paragraph></subsection></section><section id="HF52D11BD8B23497784E9AD25E746A6B1"><enum>1498.</enum><header>Legal
assistance for foreclosure-related issues</header>
<subsection id="HF506D210AE524603B7922E08B70B30B4"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development (hereafter in this section referred to as the
<term>Secretary</term>) shall establish a program for making grants for
providing a full range of foreclosure legal assistance to low- and
moderate-income homeowners and tenants related to home ownership preservation,
home foreclosure prevention, and tenancy associated with home
foreclosure.</text>
</subsection><subsection id="H328D8901AA9A4DE28E480C67A9859592"><enum>(b)</enum><header>Competitive
allocation</header><text display-inline="yes-display-inline">The Secretary
shall allocate amounts made available for grants under this section to State
and local legal organizations on the basis of a competitive process. For
purposes of this subsection <term>State and local legal organizations</term>
are those State and local organizations whose primary business or mission is to
provide legal assistance.</text>
</subsection><subsection id="H9FCAF44C3A2946B18477315845EA531A"><enum>(c)</enum><header>Priority to
certain areas</header><text>In allocating amounts in accordance with subsection
(b), the Secretary shall give priority consideration to State and local legal
organizations that are operating in the 125 metropolitan statistical areas (as
that term is defined by the Director of the Office of Management and Budget)
with the highest home foreclosure rates.</text>
</subsection><subsection id="HFFA072CF0E2B43FDA96A4B5D0D88B8A2"><enum>(d)</enum><header>Legal
assistance</header>
<paragraph id="H3221D202DBE045EFBCC3B630D3DD43CF"><enum>(1)</enum><header>In
general</header><text>Any State or local legal organization that receives
financial assistance pursuant to this section may use such amounts only to
assist—</text>
<subparagraph id="H074496F52EED49B9B5C9CD90C718613C"><enum>(A)</enum><text>homeowners of
owner-occupied homes with mortgages in default, in danger of default, or
subject to or at risk of foreclosure; and</text>
</subparagraph><subparagraph id="HEB34634BFA3C45608D3C90F26CC163AA"><enum>(B)</enum><text>tenants at risk of
or subject to eviction as a result of foreclosure of the property in which such
tenant resides.</text>
</subparagraph></paragraph><paragraph id="H951E0AD133C74092A85A5DBC34AC8450"><enum>(2)</enum><header>Commence use
within 90 days</header><text display-inline="yes-display-inline">Any State or
local legal organization that receives financial assistance pursuant to this
section shall begin using any financial assistance received under this section
within 90 days after receipt of the assistance.</text>
</paragraph><paragraph id="HEFC98EDC1D3A4A92801DCB94ACEE5656"><enum>(3)</enum><header>Prohibition on
class actions</header><text>No funds provided to a State or local legal
organization under this section may be used to support any class action
litigation.</text>
</paragraph><paragraph id="HE288BCE527D64338B85DE8A45A053775"><enum>(4)</enum><header>Limitation on
legal assistance</header><text>Legal assistance funded with amounts provided
under this section shall be limited to mortgage-related default, eviction, or
foreclosure proceedings, without regard to whether such foreclosure is judicial
or nonjudicial.</text>
</paragraph><paragraph id="HE07EDFDAF4474E7F91837C22B1CD38B9"><enum>(5)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this Act, this subsection shall take effect on the date of
the enactment of this Act.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H9AD13225BB674714A5AC5539DD5A69A8"><enum>(e)</enum><header>Limitation on
distribution of assistance</header>
<paragraph id="H267800815F0A4541800A1451A4B90C5B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">None of the amounts
made available under this section shall be distributed to—</text>
<subparagraph id="HB2616F9FDA8B44F3B86E13F40C0E76AF"><enum>(A)</enum><text>any organization
which has been convicted for a violation under Federal law relating to an
election for Federal office; or</text>
</subparagraph><subparagraph id="HCF30BA139CC54586B6D00E8EBD7D201A"><enum>(B)</enum><text>any organization
which employs applicable individuals.</text>
</subparagraph></paragraph><paragraph id="HB95421EF79804EBDA7272A097832050D"><enum>(2)</enum><header>Definition of
applicable individuals</header><text>In this subsection, the term
<quote>applicable individual</quote> means an individual who—</text>
<subparagraph id="H22755F10C9F44B408B84CE1A45DF656E"><enum>(A)</enum><text>is—</text>
<clause id="HA66A2232E4FC4EB1956CE4180FC47BB7"><enum>(i)</enum><text>employed by the
organization in a permanent or temporary capacity;</text>
</clause><clause id="HF7A4738F004049A298F0C7B88E87A58F"><enum>(ii)</enum><text>contracted or
retained by the organization; or</text>
</clause><clause id="H9E734ED27EA547DC8CB349C5D8CA7D68"><enum>(iii)</enum><text>acting on behalf
of, or with the express or apparent authority of, the organization; and</text>
</clause></subparagraph><subparagraph id="H83E12023B9F44148B39C76D78AE2B2AE"><enum>(B)</enum><text>has been convicted
for a violation under Federal law relating to an election for Federal
office.</text>
</subparagraph></paragraph></subsection><subsection id="HB375E18E7FC24C5AB3A8D5DE04F89680"><enum>(f)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary $35,000,000 for each of fiscal
years 2011 through 2012 for grants under this section.</text>
</subsection></section></subtitle><enum>XV</enum><header>Miscellaneous
Provisions</header>
<section id="H328A87455B5B4A908914283AB1102455"><enum>1501.</enum><header>Restrictions
on use of United States funds for foreign governments; protection of American
taxpayers</header><text display-inline="no-display-inline">The Bretton Woods
Agreements Act (22 U.S.C. 286 et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HAD6814E70F0449C88A22888EA80876A7" style="OLC">
<section id="H854EC9C9E19B4E6DBD9EE3BC5F451FE0"><enum>68.</enum><header>Restrictions on
use of United States funds for foreign governments; protection of American
taxpayers</header>
<subsection id="H0A47CEEABA694678BA2BBD24BC2553E8"><enum>(a)</enum><header>In
general</header><text>The Secretary of the Treasury shall instruct the United
States Executive Director at the International Monetary Fund—</text>
<paragraph id="H59D50F19D97549DDB514332229DF30B5"><enum>(1)</enum><text>to evaluate, prior
to consideration by the Board of Executive Directors of the Fund , any proposal
submitted to the Board for the Fund to make a loan to a country if—</text>
<subparagraph id="HCA59B0E7EB58437E9AF29B28FFF5517C"><enum>(A)</enum><text>the amount of the
public debt of the country exceeds the gross domestic product of the country as
of the most recent year for which such information is available; and</text>
</subparagraph><subparagraph id="H040782A03C0441A0B07EEE854B2B486F"><enum>(B)</enum><text>the country is not
eligible for assistance from the International Development Association.</text>
</subparagraph></paragraph><paragraph id="HB3650D1391B0457FB9D843D975296D61"><enum>(2)</enum><header>Opposition to
loans unlikely to be repaid in full</header><text>If any such evaluation
indicates that the proposed loan is not likely to be repaid in full, the
Secretary of the Treasury shall instruct the United States Executive Director
at the Fund to use the voice and vote of the United States to oppose the
proposal.</text>
</paragraph></subsection><subsection id="H0EEDF7E1CE4C41C58CD457B15054922A"><enum>(b)</enum><header>Reports to
congress</header><text>Within 30 days after the Board of Executive Directors of
the Fund approves a proposal described in subsection (a), and annually
thereafter by June 30, for the duration of any program approved under such
proposals, the Secretary of the Treasury shall report in writing to the
Committee on Financial Services of the House of Representatives and the
Committee on Foreign Relations and the Committee on Banking, Housing, and Urban
Affairs of the Senate assessing the likelihood that loans made pursuant to such
proposals will be repaid in full, including—</text>
<paragraph id="H120232AE036F412FB2AC8BB92BF97B08"><enum>(1)</enum><text>the borrowing
country's current debt status, including, to the extent possible, its maturity
structure, whether it has fixed or floating rates, whether it is indexed, and
by whom it is held;</text>
</paragraph><paragraph id="H90598593915A408E82E042CAAA60666B"><enum>(2)</enum><text>the borrowing
country's external and internal vulnerabilities that could potentially affect
its ability to repay; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0708AF43886A4393816828F43401A5FF"><enum>(3)</enum><text>the borrowing
country's debt management
strategy.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H33D45EC9CC8E4F718878B3B4E8A323FD"><enum>1502.</enum><header>Conflict
minerals</header>
<subsection id="HBA2089457E12479AA7530162BC5E83DE"><enum>(a)</enum><header>Sense of
Congress on exploitation and trade of conflict minerals originating in the
Democratic Republic of the Congo</header><text>It is the sense of Congress that
the exploitation and trade of conflict minerals originating in the Democratic
Republic of the Congo is helping to finance conflict characterized by extreme
levels of violence in the eastern Democratic Republic of the Congo,
particularly sexual- and gender-based violence, and contributing to an
emergency humanitarian situation therein, warranting the provisions of section
13(p) of the Securities Exchange Act of 1934, as added by subsection
(b).</text>
</subsection><subsection id="H23BEAE5D20DA429882CDAD0EF0171864"><enum>(b)</enum><header>Disclosure
relating to conflict minerals originating in the Democratic Republic of the
Congo</header><text>Section 13 of the Securities Exchange Act of 1934 (15
U.S.C. 78m), as amended by this Act, is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8A6E89CA4070484C879FA31CEF343F70" style="OLC">
<subsection id="H5E04EBFC165C417689A6B93104BCA998"><enum>(p)</enum><header>Disclosures
relating to conflict minerals originating in the Democratic Republic of the
Congo</header>
<paragraph id="H2D193429AD0F411B8929E2159FCEA871"><enum>(1)</enum><header>Regulations</header>
<subparagraph id="H36F190D83E084CDCAB7533D433E51D4C"><enum>(A)</enum><header>In
general</header><text>Not later than 270 days after the date of the enactment
of this subsection, the Commission shall promulgate regulations requiring any
person described in paragraph (2) to disclose annually, beginning with the
person's first full fiscal year that begins after the date of promulgation of
such regulations, whether conflict minerals that are necessary as described in
paragraph (2)(B), in the year for which such reporting is required, did
originate in the Democratic Republic of the Congo or an adjoining country and,
in cases in which such conflict minerals did originate in any such country,
submit to the Commission a report that includes, with respect to the period
covered by the report—</text>
<clause id="H191AD714E79F4E439E9C99011816AF94"><enum>(i)</enum><text>a
description of the measures taken by the person to exercise due diligence on
the source and chain of custody of such minerals, which measures shall include
an independent private sector audit of such report submitted through the
Commission that is conducted in accordance with standards established by the
Comptroller General of the United States, in accordance with rules promulgated
by the Commission, in consultation with the Secretary of State; and</text>
</clause><clause id="HAEBD71BCAF70493B9573158EF6A0319C"><enum>(ii)</enum><text>a
description of the products manufactured or contracted to be manufactured that
are not DRC conflict free (<quote>DRC conflict free</quote> is defined to mean
the products that do not contain minerals that directly or indirectly finance
or benefit armed groups in the Democratic Republic of the Congo or an adjoining
country), the entity that conducted the independent private sector audit in
accordance with clause (i), the facilities used to process the conflict
minerals, the country of origin of the conflict minerals, and the efforts to
determine the mine or location of origin with the greatest possible
specificity.</text>
</clause></subparagraph><subparagraph id="HF9C3887FB3244CDCB6FD39B28F60BF39"><enum>(B)</enum><header>Certification</header><text>The
person submitting a report under subparagraph (A) shall certify the audit
described in clause (i) of such subparagraph that is included in such report.
Such a certified audit shall constitute a critical component of due diligence
in establishing the source and chain of custody of such minerals.</text>
</subparagraph><subparagraph id="H2D2E21A8C1634935B76CF3D09CD905D1"><enum>(C)</enum><header>Unreliable
determination</header><text>If a report required to be submitted by a person
under subparagraph (A) relies on a determination of an independent private
sector audit, as described under subparagraph (A)(i), or other due diligence
processes previously determined by the Commission to be unreliable, the report
shall not satisfy the requirements of the regulations promulgated under
subparagraph (A)(i).</text>
</subparagraph><subparagraph id="H4091B66DC7F74377AB52D9E87C7C29B4"><enum>(D)</enum><header>DRC conflict
free</header><text>For purposes of this paragraph, a product may be labeled as
<quote>DRC conflict free</quote> if the product does not contain conflict
minerals that directly or indirectly finance or benefit armed groups in the
Democratic Republic of the Congo or an adjoining country.</text>
</subparagraph><subparagraph id="HB04EA57AC3DF413A9C89E1343B536785"><enum>(E)</enum><header>Information
available to the public</header><text>Each person described under paragraph (2)
shall make available to the public on the Internet website of such person the
information disclosed by such person under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="HF9CA2BDC96694F2CB36399AF3DC79939"><enum>(2)</enum><header>Person
described</header><text>A person is described in this paragraph if—</text>
<subparagraph id="HFC600FAC5D5842FB8B8C41D67C3ECF56"><enum>(A)</enum><text>the person is
required to file reports with the Commission pursuant to paragraph (1)(A);
and</text>
</subparagraph><subparagraph id="H6EDB9298917645089DA58D3FA5E3603F"><enum>(B)</enum><text>conflict minerals
are necessary to the functionality or production of a product manufactured by
such person.</text>
</subparagraph></paragraph><paragraph id="H09AA7152FAEC4F1B8311C1BA086EB640"><enum>(3)</enum><header>Revisions and
waivers</header><text>The Commission shall revise or temporarily waive the
requirements described in paragraph (1) if the President transmits to the
Commission a determination that—</text>
<subparagraph id="HE0BB19800A3C44F0B75AD948653515E2"><enum>(A)</enum><text>such revision or
waiver is in the national security interest of the United States and the
President includes the reasons therefor; and</text>
</subparagraph><subparagraph id="H287D15482D094403BBEFB4C145A28B2C"><enum>(B)</enum><text>establishes a
date, not later than 2 years after the initial publication of such exemption,
on which such exemption shall expire.</text>
</subparagraph></paragraph><paragraph id="H922DAEA70C5F4E1D89AC9D684597D384"><enum>(4)</enum><header>Termination of
disclosure requirements</header><text>The requirements of paragraph (1) shall
terminate on the date on which the President determines and certifies to the
appropriate congressional committees, but in no case earlier than the date that
is one day after the end of the 5-year period beginning on the date of the
enactment of this subsection, that no armed groups continue to be directly
involved and benefitting from commercial activity involving conflict
minerals.</text>
</paragraph><paragraph id="H6A52B0634D894DF5A34ADCA5AC4FE187"><enum>(5)</enum><header>Definitions</header><text>For
purposes of this subsection, the terms <term>adjoining country</term>,
<term>appropriate congressional committees</term>, <term>armed group</term>,
and <term>conflict mineral</term> have the meaning given those terms under
section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2EE25E76A04741E48F072CB0C300F688"><enum>(c)</enum><header>Strategy and map
to address linkages between conflict minerals and armed groups</header>
<paragraph id="H954C90FD4C064E0582922E5C4628A817"><enum>(1)</enum><header>Strategy</header>
<subparagraph id="H3615CC9F640F46FDA518398077EF73D4"><enum>(A)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of State, in consultation with the Administrator of
the United States Agency for International Development, shall submit to the
appropriate congressional committees a strategy to address the linkages between
human rights abuses, armed groups, mining of conflict minerals, and commercial
products.</text>
</subparagraph><subparagraph id="HA82E880E6AC0482BA80D670E92F41933"><enum>(B)</enum><header>Contents</header><text>The
strategy required by subparagraph (A) shall include the following:</text>
<clause id="HB284805218144CD0BDA1AA9FA9561C47"><enum>(i)</enum><text>A
plan to promote peace and security in the Democratic Republic of the Congo by
supporting efforts of the Government of the Democratic Republic of the Congo,
including the Ministry of Mines and other relevant agencies, adjoining
countries, and the international community, in particular the United Nations
Group of Experts on the Democratic Republic of Congo, to—</text>
<subclause id="HE567BC20816846508DC4BCCAB3CD2332"><enum>(I)</enum><text>monitor and stop
commercial activities involving the natural resources of the Democratic
Republic of the Congo that contribute to the activities of armed groups and
human rights violations in the Democratic Republic of the Congo; and</text>
</subclause><subclause id="H46EB0B675A4B4EAF818DDC9CA9314D13"><enum>(II)</enum><text>develop stronger
governance and economic institutions that can facilitate and improve
transparency in the cross-border trade involving the natural resources of the
Democratic Republic of the Congo to reduce exploitation by armed groups and
promote local and regional development.</text>
</subclause></clause><clause id="H90B453180E70478391356ACBC993E103"><enum>(ii)</enum><text>A
plan to provide guidance to commercial entities seeking to exercise due
diligence on and formalize the origin and chain of custody of conflict minerals
used in their products and on their suppliers to ensure that conflict minerals
used in the products of such suppliers do not directly or indirectly finance
armed conflict or result in labor or human rights violations.</text>
</clause><clause id="H1E386EFF670640DEBD398A1CCB28B174"><enum>(iii)</enum><text>A
description of punitive measures that could be taken against individuals or
entities whose commercial activities are supporting armed groups and human
rights violations in the Democratic Republic of the Congo.</text>
</clause></subparagraph></paragraph><paragraph id="H763053F69C954610B7D9889B22D553EA"><enum>(2)</enum><header>Map</header>
<subparagraph id="HEFD8C378E4DD4674B25CE826434FBED2"><enum>(A)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of State shall, in accordance with the
recommendation of the United Nations Group of Experts on the Democratic
Republic of the Congo in their December 2008 report—</text>
<clause id="H8934CE7A00604BF3B0C833C5D024C3BF"><enum>(i)</enum><text>produce a map of
mineral-rich zones, trade routes, and areas under the control of armed groups
in the Democratic Republic of the Congo and adjoining countries based on data
from multiple sources, including—</text>
<subclause id="HB10A626A10224225B584F053410FDB7B"><enum>(I)</enum><text>the United Nations
Group of Experts on the Democratic Republic of the Congo;</text>
</subclause><subclause id="HCD00F786D4A74E37A6B1A571EEBCE0D2"><enum>(II)</enum><text>the Government of
the Democratic Republic of the Congo, the governments of adjoining countries,
and the governments of other Member States of the United Nations; and</text>
</subclause><subclause id="H8B46F631F71848148B1247625B96A3CC"><enum>(III)</enum><text>local and
international nongovernmental organizations;</text>
</subclause></clause><clause id="H44952C2A274B465F81EBDAC09EAEA28C"><enum>(ii)</enum><text>make such map
available to the public; and</text>
</clause><clause id="H9BC0D7E38C094324855379188387E470"><enum>(iii)</enum><text>provide to the
appropriate congressional committees an explanatory note describing the sources
of information from which such map is based and the identification, where
possible, of the armed groups or other forces in control of the mines
depicted.</text>
</clause></subparagraph><subparagraph id="H0501A0CA019E403DA9482A12EF8832A3"><enum>(B)</enum><header>Designation</header><text>The
map required under subparagraph (A) shall be known as the <quote>Conflict
Minerals Map</quote>, and mines located in areas under the control of armed
groups in the Democratic Republic of the Congo and adjoining countries, as
depicted on such Conflict Minerals Map, shall be known as <quote>Conflict Zone
Mines</quote>.</text>
</subparagraph><subparagraph id="HCBE8AA7B3E124037AFBBB46D0DC46FA4"><enum>(C)</enum><header>Updates</header><text>The
Secretary of State shall update the map required under subparagraph (A) not
less frequently than once every 180 days until the date on which the disclosure
requirements under paragraph (1) of section 13(p) of the Securities Exchange
Act of 1934, as added by subsection (b), terminate in accordance with the
provisions of paragraph (4) of such section 13(p).</text>
</subparagraph><subparagraph id="H46FA54481E134B48B2414651429D62E1"><enum>(D)</enum><header>Publication in
Federal register</header><text>The Secretary of State shall add minerals to the
list of minerals in the definition of conflict minerals under section 1502, as
appropriate. The Secretary shall publish in the Federal Register notice of
intent to declare a mineral as a conflict mineral included in such definition
not later than one year before such declaration.</text>
</subparagraph></paragraph></subsection><subsection id="H59347C4CB3EF4901B6DDF0C128DEAE8A"><enum>(d)</enum><header>Reports</header>
<paragraph id="HBAA64ECEB21C4EC2B2A8E3C64294FF6A"><enum>(1)</enum><header>Baseline
report</header><text>Not later than 1 year after the date of the enactment of
this Act and annually thereafter until the termination of the disclosure
requirements under section 13(p) of the Securities Exchange Act of 1934, the
Comptroller General of the United States shall submit to appropriate
congressional committees a report that includes an assessment of the rate of
sexual- and gender-based violence in war-torn areas of the Democratic Republic
of the Congo and adjoining countries.</text>
</paragraph><paragraph id="HC62E31C6936A4B94816C2EE3E9B8F299"><enum>(2)</enum><header>Regular report
on effectiveness</header><text>Not later than 2 years after the date of the
enactment of this Act and annually thereafter, the Comptroller General of the
United States shall submit to the appropriate congressional committees a report
that includes the following:</text>
<subparagraph id="H0FB766F1A5D14B59AFFFBEFFD7F6B0F2"><enum>(A)</enum><text>An assessment of
the effectiveness of section 13(p) of the Securities Exchange Act of 1934, as
added by subsection (b), in promoting peace and security in the Democratic
Republic of the Congo and adjoining countries.</text>
</subparagraph><subparagraph id="H78E3AE4B52B14E688D14E20616D5C7F3"><enum>(B)</enum><text>A description of
issues encountered by the Securities and Exchange Commission in carrying out
the provisions of such section 13(p).</text>
</subparagraph><subparagraph id="H8E18D6DA14114B44BD0444DFE99C6E3B"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H5763E9D0F12A48E38DE782B054DEAEAE"><enum>(i)</enum><text>A general review of
persons described in clause (ii) and whether information is publicly available
about—</text>
<subclause id="H42D39D27B0204C90BE93881AA5C871EA" indent="up1"><enum>(I)</enum><text>the use of conflict minerals by such
persons; and</text>
</subclause><subclause id="H9CB5367FC000457BB7C2AFD78F8C606B" indent="up1"><enum>(II)</enum><text>whether such conflict minerals originate
from the Democratic Republic of the Congo or an adjoining country.</text>
</subclause></clause><clause id="HBAE660C062DB4493A73862EC6144E9D6" indent="up1"><enum>(ii)</enum><text>A person is described in this
clause if—</text>
<subclause id="H87CD77BF74A14308A632B76A529275CC"><enum>(I)</enum><text>the person is not required to file
reports with the Securities and Exchange Commission pursuant to section
13(p)(1)(A) of the Securities Exchange Act of 1934, as added by subsection (b);
and</text>
</subclause><subclause id="H4AF3AFCF35B745C398B55B8AF632496F"><enum>(II)</enum><text>conflict minerals are necessary to the
functionality or production of a product manufactured by such person.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H71372F48E77A4F2386D80B75D99DF491"><enum>(3)</enum><header>Report on
private sector auditing</header><text>Not later than 30 months after the date
of the enactment of this Act, and annually thereafter, the Secretary of
Commerce shall submit to the appropriate congressional committees a report that
includes the following:</text>
<subparagraph id="H121CF150BF3E42BFB952E8793D4C35C9"><enum>(A)</enum><text>An assessment of
the accuracy of the independent private sector audits and other due diligence
processes described under section 13(p) of the Securities Exchange Act of
1934.</text>
</subparagraph><subparagraph id="H73F95D46518440AABEC8282D70FF3E05"><enum>(B)</enum><text>Recommendations
for the processes used to carry out such audits, including ways to—</text>
<clause id="H1149AF620DDE48B48D841AF0056669B6"><enum>(i)</enum><text>improve the
accuracy of such audits; and</text>
</clause><clause id="HC3F089E64077414E9C00FE41E5B21F78"><enum>(ii)</enum><text>establish
standards of best practices.</text>
</clause></subparagraph><subparagraph id="H72E941CEC5574B57A301860C92EADFD0"><enum>(C)</enum><text>A listing of all
known conflict mineral processing facilities worldwide.</text>
</subparagraph></paragraph></subsection><subsection id="H06E51049C1EA45BE83694FC8C8BAC9D4"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="HC666A71996AD4A7A8B5783758D253B0C"><enum>(1)</enum><header>Adjoining
country</header><text>The term <term>adjoining country</term>, with respect to
the Democratic Republic of the Congo, means a country that shares an
internationally recognized border with the Democratic Republic of the
Congo.</text>
</paragraph><paragraph id="H6C6BD5FE76B3429E8D7B982A676D2604"><enum>(2)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means—</text>
<subparagraph id="H0548DB5C91694B61B792F4965B0686FA"><enum>(A)</enum><text>the Committee on
Appropriations, the Committee on Foreign Affairs, the Committee on Ways and
Means, and the Committee on Financial Services of the House of Representatives;
and</text>
</subparagraph><subparagraph id="H2C97877E15C44F8980D53E92566CF0CB"><enum>(B)</enum><text>the Committee on
Appropriations, the Committee on Foreign Relations, the Committee on Finance,
and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text>
</subparagraph></paragraph><paragraph id="HDC849711D36045EB8966B6E5C307F75B"><enum>(3)</enum><header>Armed
group</header><text>The term <term>armed group</term> means an armed group that
is identified as perpetrators of serious human rights abuses in the annual
Country Reports on Human Rights Practices under sections 116(d) and 502B(b) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) relating to
the Democratic Republic of the Congo or an adjoining country.</text>
</paragraph><paragraph id="HF6F3671E56EF496AA296C8DBF47EB539"><enum>(4)</enum><header>Conflict
mineral</header><text>The term <term>conflict mineral</term> means—</text>
<subparagraph id="H7ADCEBD41DC2471C9E58FC8B54FD1D80"><enum>(A)</enum><text>columbite-tantalite
(coltan), cassiterite, gold, wolframite, or their derivatives; or</text>
</subparagraph><subparagraph id="H44BD83C6DC6E4D64870413A0E99249FC"><enum>(B)</enum><text>any other mineral
or its derivatives determined by the Secretary of State to be financing
conflict in the Democratic Republic of the Congo or an adjoining
country.</text>
</subparagraph></paragraph><paragraph id="HA4CA5FEBC33D4087A0AA2B268F18CAFA"><enum>(5)</enum><header>Under the
control of armed groups</header><text>The term <term>under the control of armed
groups</term> means areas within the Democratic Republic of the Congo or
adjoining countries in which armed groups—</text>
<subparagraph id="H015F5350C90A4131A832F1B4BE616108"><enum>(A)</enum><text>physically control
mines or force labor of civilians to mine, transport, or sell conflict
minerals;</text>
</subparagraph><subparagraph id="H3FA318F101504CDB98C4307130D12ADB"><enum>(B)</enum><text>tax, extort, or
control any part of trade routes for conflict minerals, including the entire
trade route from a Conflict Zone Mine to the point of export from the
Democratic Republic of the Congo or an adjoining country; or</text>
</subparagraph><subparagraph id="H1FE23AC09BA34323B335F3335910B528"><enum>(C)</enum><text>tax, extort, or
control trading facilities, in whole or in part, including the point of export
from the Democratic Republic of the Congo or an adjoining country.</text>
</subparagraph></paragraph></subsection></section><section id="HD68F468885D8487BB0CC9C62123C5EA6"><enum>1503.</enum><header>Reporting
requirements regarding coal or other mine safety</header>
<subsection id="H11DD3D1DF6C843A18D3A4F44EFE0C5AF"><enum>(a)</enum><header>Reporting mine
safety information</header><text>Each issuer that is required to file reports
pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78m, 78o) and that is an operator, or that has a subsidiary that is an
operator, of a coal or other mine shall include, in each periodic report filed
with the Commission under the securities laws on or after the date of enactment
of this Act, the following information for the time period covered by such
report:</text>
<paragraph id="H8199C7B9510B4213913308D3A27B13A9"><enum>(1)</enum><text>For each coal or
other mine of which the issuer or a subsidiary of the issuer is an
operator—</text>
<subparagraph id="H0DA00801D1324B0D9426534ACB5CCA6B"><enum>(A)</enum><text>the total number
of violations of mandatory health or safety standards that could significantly
and substantially contribute to the cause and effect of a coal or other mine
safety or health hazard under section 104 of the Federal Mine Safety and Health
Act of 1977 (30 U.S.C. 814) for which the operator received a citation from the
Mine Safety and Health Administration;</text>
</subparagraph><subparagraph id="H17EE651E98E345DC84DD365B08A52091"><enum>(B)</enum><text>the total number
of orders issued under section 104(b) of such Act (30 U.S.C. 814(b));</text>
</subparagraph><subparagraph id="H0EF7341F4B5D4F53BA75B576AF1075BC"><enum>(C)</enum><text>the total number
of citations and orders for unwarrantable failure of the mine operator to
comply with mandatory health or safety standards under section 104(d) of such
Act (30 U.S.C. 814(d));</text>
</subparagraph><subparagraph id="H0E75097AB7FC4DAFAFB318F535972DC1"><enum>(D)</enum><text>the total number
of flagrant violations under section 110(b)(2) of such Act (30 U.S.C.
820(b)(2));</text>
</subparagraph><subparagraph id="H7BEAC659C5E04E61840B237F2A7E850D"><enum>(E)</enum><text>the total number
of imminent danger orders issued under section 107(a) of such Act (30 U.S.C.
817(a));</text>
</subparagraph><subparagraph id="H87CF77F1BA3C4807B0A49B2021AB73E2"><enum>(F)</enum><text>the total dollar
value of proposed assessments from the Mine Safety and Health Administration
under such Act (30 U.S.C. 801 et seq.); and</text>
</subparagraph><subparagraph id="HA28651151BFE42C3B23196343C6BDEAA"><enum>(G)</enum><text>the total number
of mining-related fatalities.</text>
</subparagraph></paragraph><paragraph id="H792296F451F8473889A19F3E03043048"><enum>(2)</enum><text>A
list of such coal or other mines, of which the issuer or a subsidiary of the
issuer is an operator, that receive written notice from the Mine Safety and
Health Administration of—</text>
<subparagraph id="HD5D90B6C5B064A7BA8BDC2A705DA0B37"><enum>(A)</enum><text>a pattern of
violations of mandatory health or safety standards that are of such nature as
could have significantly and substantially contributed to the cause and effect
of coal or other mine health or safety hazards under section 104(e) of such Act
(30 U.S.C. 814(e)); or</text>
</subparagraph><subparagraph id="HFA5E00CFFE9A471DB30D33675CCAEC94"><enum>(B)</enum><text>the potential to
have such a pattern.</text>
</subparagraph></paragraph><paragraph id="H305269CFAB5F4E3C82EEBF8044571706"><enum>(3)</enum><text>Any pending legal
action before the Federal Mine Safety and Health Review Commission involving
such coal or other mine.</text>
</paragraph></subsection><subsection id="HD94D3B594F6C4B639F5BD27ED4F03FF0"><enum>(b)</enum><header>Reporting
shutdowns and patterns of violations</header><text>Beginning on and after the
date of enactment of this Act, each issuer that is an operator, or that has a
subsidiary that is an operator, of a coal or other mine shall file a current
report with the Commission on Form 8–K (or any successor form) disclosing the
following regarding each coal or other mine of which the issuer or subsidiary
is an operator:</text>
<paragraph id="HCB285B83F5884B88BCB8F3077585F077"><enum>(1)</enum><text>The receipt of an
imminent danger order issued under section 107(a) of the Federal Mine Safety
and Health Act of 1977 (30 U.S.C. 817(a)).</text>
</paragraph><paragraph id="HD521C2CED1FE481B95F947C84DB39B7E"><enum>(2)</enum><text>The receipt of
written notice from the Mine Safety and Health Administration that the coal or
other mine has—</text>
<subparagraph id="HF6CB9FBC2E83458D84B128DA1D299490"><enum>(A)</enum><text>a pattern of
violations of mandatory health or safety standards that are of such nature as
could have significantly and substantially contributed to the cause and effect
of coal or other mine health or safety hazards under section 104(e) of such Act
(30 U.S.C. 814(e)); or</text>
</subparagraph><subparagraph id="H7BB4BDAC63B34770B5D86CC56CBF683C"><enum>(B)</enum><text>the potential to
have such a pattern.</text>
</subparagraph></paragraph></subsection><subsection id="H4AD2167D409941CEB771784CB174217E"><enum>(c)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed to affect
any obligation of a person to make a disclosure under any other applicable law
in effect before, on, or after the date of enactment of this Act.</text>
</subsection><subsection id="HEF11A1DF5890464BB6DC6654759C8E33"><enum>(d)</enum><header>Commission
Authority</header>
<paragraph id="H12066CB35BAE46DDA9BF072BE5E4F65C"><enum>(1)</enum><header>Enforcement</header><text>A
violation by any person of this section, or any rule or regulation of the
Commission issued under this section, shall be treated for all purposes in the
same manner as a violation of the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.) or the rules and regulations issued thereunder, consistent with
the provisions of this section, and any such person shall be subject to the
same penalties, and to the same extent, as for a violation of such Act or the
rules or regulations issued thereunder.</text>
</paragraph><paragraph id="H7DC3F5FA596B419B9ACEE56116FE0CDD"><enum>(2)</enum><header>Rules and
regulations</header><text>The Commission is authorized to issue such rules or
regulations as are necessary or appropriate for the protection of investors and
to carry out the purposes of this section.</text>
</paragraph></subsection><subsection id="HB85B8C8BFD7B4DB7AB93397C2B469CBC"><enum>(e)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H1B4E79C4462D46AE9D686E306060A881"><enum>(1)</enum><text>the terms
<term>issuer</term> and <term>securities laws</term> have the meaning given the
terms in section 3 of the Securities Exchange Act of 1934 (15 U.S.C.
78c);</text>
</paragraph><paragraph id="H66B54C04DB5D42C3B45A31D1ABEE9846"><enum>(2)</enum><text>the term
<quote>coal or other mine</quote> means a coal or other mine, as defined in
section 3 of the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 802),
that is subject to the provisions of such Act (30 U.S.C. 801 et seq.);
and</text>
</paragraph><paragraph id="H124EEE47D5F74C34A89CCBF456B2B2BD"><enum>(3)</enum><text>the term
<quote>operator</quote> has the meaning given the term in section 3 of the
Federal Mine Safety and Health Act of 1977 (30 U.S.C. 802).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H96BB580F30604501BB841C6E0E8567F8"><enum>(f)</enum><header>Effective
date</header><text>This section shall take effect on the day that is 30 days
after the date of enactment of this Act.</text>
</subsection></section><section id="H28C3E5E56C9B47F2B16C4571E4D6C712"><enum>1504.</enum><header>Disclosure of
payments by resource extraction issuers</header><text display-inline="no-display-inline">Section 13 of the Securities Exchange Act of
1934 (15 U.S.C. 78m), as amended by this Act, is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H522AEFF01A7549B7B6307AA8169F235C" style="OLC">
<subsection id="H0ED7DDB8D77E44119F6A35FE4144F9D6"><enum>(q)</enum><header>Disclosure of
payments by resource extraction issuers</header>
<paragraph id="H8FFF0A10A8884B72B759CD7755E2379A"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="H8A8AB41BC59A4235AC3882640391E68D"><enum>(A)</enum><text>the term
<term>commercial development of oil, natural gas, or minerals</term> includes
exploration, extraction, processing, export, and other significant actions
relating to oil, natural gas, or minerals, or the acquisition of a license for
any such activity, as determined by the Commission;</text>
</subparagraph><subparagraph id="H7166D552D3D6420F975CD2EBB9A0E736"><enum>(B)</enum><text>the term
<term>foreign government</term> means a foreign government, a department,
agency, or instrumentality of a foreign government, or a company owned by a
foreign government, as determined by the Commission;</text>
</subparagraph><subparagraph id="HD7AB8F5B59F945C2B37A3041B7E2BD18"><enum>(C)</enum><text>the term
<term>payment</term>—</text>
<clause id="H9EB50071626548559D70C3C547F53437"><enum>(i)</enum><text>means a payment
that is—</text>
<subclause id="HB29863D2983B4BEC824821C6FC3E69EB"><enum>(I)</enum><text>made to further
the commercial development of oil, natural gas, or minerals; and</text>
</subclause><subclause id="H144F22AB41364D1C94BF83EAD7BD92BE"><enum>(II)</enum><text>not de minimis;
and</text>
</subclause></clause><clause id="H483E68BBC0194594A25C79F86540CC8C"><enum>(ii)</enum><text>includes taxes,
royalties, fees (including license fees), production entitlements, bonuses, and
other material benefits, that the Commission, consistent with the guidelines of
the Extractive Industries Transparency Initiative (to the extent practicable),
determines are part of the commonly recognized revenue stream for the
commercial development of oil, natural gas, or minerals;</text>
</clause></subparagraph><subparagraph id="H54A9FE958A254B93A29BB55B5320AD86"><enum>(D)</enum><text>the term
<term>resource extraction issuer</term> means an issuer that—</text>
<clause id="H61ED661A191D46438102E0F10A7B3456"><enum>(i)</enum><text>is
required to file an annual report with the Commission; and</text>
</clause><clause id="HD8432F27FB6744AC9667B93FA37D1285"><enum>(ii)</enum><text>engages in the
commercial development of oil, natural gas, or minerals;</text>
</clause></subparagraph><subparagraph id="H0CDA703A73AE472C92D3F71B2CBF9B98"><enum>(E)</enum><text>the term
<term>interactive data format</term> means an electronic data format in which
pieces of information are identified using an interactive data standard;
and</text>
</subparagraph><subparagraph id="HC9B9E3457A254E4AB2FB266DDBEDE3FF"><enum>(F)</enum><text>the term
<term>interactive data standard</term> means standardized list of electronic
tags that mark information included in the annual report of a resource
extraction issuer.</text>
</subparagraph></paragraph><paragraph id="H91A375DB35BB49DC9E0CA5F0E39EAB40"><enum>(2)</enum><header>Disclosure</header>
<subparagraph id="H7D0718B6113F427CB6692CDE6D5F8158"><enum>(A)</enum><header>Information
required</header><text>Not later than 270 days after the date of enactment of
the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Commission
shall issue final rules that require each resource extraction issuer to include
in an annual report of the resource extraction issuer information relating to
any payment made by the resource extraction issuer, a subsidiary of the
resource extraction issuer, or an entity under the control of the resource
extraction issuer to a foreign government or the Federal Government for the
purpose of the commercial development of oil, natural gas, or minerals,
including—</text>
<clause id="H08F45243B40E458581D57D7539E6B0E3"><enum>(i)</enum><text>the type and total
amount of such payments made for each project of the resource extraction issuer
relating to the commercial development of oil, natural gas, or minerals;
and</text>
</clause><clause id="H12670B50AFB04FF5B7C01B1922747847"><enum>(ii)</enum><text>the type and
total amount of such payments made to each government.</text>
</clause></subparagraph><subparagraph id="H4C8483E64D68458D9AD4D6297DBBF83C"><enum>(B)</enum><header>Consultation in
rulemaking</header><text>In issuing rules under subparagraph (A), the
Commission may consult with any agency or entity that the Commission determines
is relevant.</text>
</subparagraph><subparagraph id="HD0C9012480DA41BB9991943A5D7FDBB3"><enum>(C)</enum><header>Interactive data
format</header><text>The rules issued under subparagraph (A) shall require that
the information included in the annual report of a resource extraction issuer
be submitted in an interactive data format.</text>
</subparagraph><subparagraph id="HD11BB63D8B424355B34F095E46AFC693"><enum>(D)</enum><header>Interactive data
standard</header>
<clause id="HA7221D7129934BDCB281AAC14F04E988"><enum>(i)</enum><header>In
general</header><text>The rules issued under subparagraph (A) shall establish
an interactive data standard for the information included in the annual report
of a resource extraction issuer.</text>
</clause><clause id="H969E8269F8C54CCC9276806ED590F55A"><enum>(ii)</enum><header>Electronic
tags</header><text>The interactive data standard shall include electronic tags
that identify, for any payments made by a resource extraction issuer to a
foreign government or the Federal Government—</text>
<subclause id="HBFCF16736D1C4532BC8A3AA20AE96746"><enum>(I)</enum><text>the total amounts
of the payments, by category;</text>
</subclause><subclause id="HB7C3A7556ADB47868A82E364D6F36C9A"><enum>(II)</enum><text>the currency used
to make the payments;</text>
</subclause><subclause id="H41E3B6B457FD4D6FAD8702F4F00DEFEB"><enum>(III)</enum><text>the financial
period in which the payments were made;</text>
</subclause><subclause id="H71B30F9F3FC04382B6991261009812BC"><enum>(IV)</enum><text>the business
segment of the resource extraction issuer that made the payments;</text>
</subclause><subclause id="H9C4E00C004724C73B4BA77A54BE79090"><enum>(V)</enum><text>the government
that received the payments, and the country in which the government is
located;</text>
</subclause><subclause id="H2831CBF555364C90BCDEE8D4F064DE37"><enum>(VI)</enum><text>the project of
the resource extraction issuer to which the payments relate; and</text>
</subclause><subclause id="H02DBA48B7B244F619F438FCFF26DA933"><enum>(VII)</enum><text>such other
information as the Commission may determine is necessary or appropriate in the
public interest or for the protection of investors.</text>
</subclause></clause></subparagraph><subparagraph id="HCAABFD9CEC70491A8CEE6AD1F3A37CDC"><enum>(E)</enum><header>International
transparency efforts</header><text>To the extent practicable, the rules issued
under subparagraph (A) shall support the commitment of the Federal Government
to international transparency promotion efforts relating to the commercial
development of oil, natural gas, or minerals.</text>
</subparagraph><subparagraph id="HDCA9256E841B41E5A27A0B96488A0311"><enum>(F)</enum><header>Effective
date</header><text>With respect to each resource extraction issuer, the final
rules issued under subparagraph (A) shall take effect on the date on which the
resource extraction issuer is required to submit an annual report relating to
the fiscal year of the resource extraction issuer that ends not earlier than 1
year after the date on which the Commission issues final rules under
subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H8F1483F719904806AAC3B8A6079338D0"><enum>(3)</enum><header>Public
availability of information</header>
<subparagraph id="HE732B4ADC43744DA933D1E377C0233AB"><enum>(A)</enum><header>In
general</header><text>To the extent practicable, the Commission shall make
available online, to the public, a compilation of the information required to
be submitted under the rules issued under paragraph (2)(A).</text>
</subparagraph><subparagraph id="HD925CD5830894EFC82F3B54BDA01E2A3"><enum>(B)</enum><header>Other
information</header><text>Nothing in this paragraph shall require the
Commission to make available online information other than the information
required to be submitted under the rules issued under paragraph (2)(A).</text>
</subparagraph></paragraph><paragraph id="HF75FB2B78F224175A60E7CA94D3C9936"><enum>(4)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Commission such sums as may be necessary to carry out this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE279AD6FCBBD460BB55C74192B4FBDF8"><enum>1505.</enum><header>Study by the
Comptroller General</header>
<subsection id="H78680A2C14C2407EA9A326F20D76D734"><enum>(a)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Comptroller General of the United States shall issue a report
assessing the relative independence, effectiveness, and expertise of
presidentially appointed inspectors general and inspectors general of
designated Federal entities, as such term is defined under section 8G of the
Inspector General Act of 1978, and the effects on independence of the
amendments to the Inspector General Act of 1978 made by this Act.</text>
</subsection><subsection id="H887E1093632D49B9BE6F0257E6056002"><enum>(b)</enum><header>Report</header><text>The
report required by subsection (a) shall be issued to the Committees on
Financial Services and Oversight and Government Reform of the House of
Representatives and the Committees on Banking, Housing, and Urban Affairs and
Homeland Security and Governmental Affairs of the Senate.</text>
</subsection></section><section id="H87356B2034664A3D866CEDC9CFB14C9C"><enum>1506.</enum><header>Study on core
deposits and brokered deposits</header>
<subsection id="H1218516FE2634ADC9CB36D21D723977F"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Corporation shall conduct a study to
evaluate—</text>
<paragraph id="HF20DA0802849458F958E875BC45AA4C4"><enum>(1)</enum><text>the definition of
core deposits for the purpose of calculating the insurance premiums of
banks;</text>
</paragraph><paragraph id="H020B11FE51414585ADB43AC8FA4E3A10"><enum>(2)</enum><text>the potential
impact on the Deposit Insurance Fund of revising the definitions of brokered
deposits and core deposits to better distinguish between them;</text>
</paragraph><paragraph id="H96CB62725E2544E5AD6AB180A771BBB1"><enum>(3)</enum><text>an assessment of
the differences between core deposits and brokered deposits and their role in
the economy and banking sector of the United States;</text>
</paragraph><paragraph id="HC0868096B7D54BE28EBC53E25EFA2C2B"><enum>(4)</enum><text>the potential
stimulative effect on local economies of redefining core deposits; and</text>
</paragraph><paragraph id="HCB8928E3F85548FCB60B1039BC98D7B8"><enum>(5)</enum><text>the competitive
parity between large institutions and community banks that could result from
redefining core deposits.</text>
</paragraph></subsection><subsection id="H9C75EA9B556842BBA8F4DDEE1CAA398E"><enum>(b)</enum><header>Report to
Congress</header><text>Not later than 1 year after the date of enactment of
this Act, the Corporation shall submit to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report on the results of the study under subsection
(a) that includes legislative recommendations, if any, to address concerns
arising in connection with the definitions of core deposits and brokered
deposits.</text>
</subsection></section><enum>XVI</enum><header>Section 1256
contracts</header>
<section commented="no" display-inline="no-display-inline" id="H107E18131E71472A845EC4CEFE9C7868" section-type="subsequent-section"><enum>1601.</enum><header>Certain swaps,
etc., not treated as section 1256 contracts</header>
<subsection commented="no" id="H317F146A62974693B8238CA867B394D5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (b) of
section 1256 of the Internal Revenue Code of 1986 is amended—</text>
<paragraph commented="no" id="H912DB74EDEBC4685B6A0A560B92D262B"><enum>(1)</enum><text>by redesignating
paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and
by indenting such subparagraphs (as so redesignated) accordingly,</text>
</paragraph><paragraph commented="no" id="H8DDD72B0730C4F4790217DB7F883D498"><enum>(2)</enum><text>by striking
<quote>For purposes of</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C3F6F84EC54469DA35BED71A6C43B11" style="OLC">
<paragraph commented="no" id="HD0FA58476D6743FC8AEE54B04FD11D0D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes
of</text>
</paragraph><after-quoted-block>, and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H8F802364D54A4292A91B9A48FB920C33"><enum>(3)</enum><text>by striking the
last sentence and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H209132ED17484DF6A7F285B1A7ADD8DF" style="OLC">
<paragraph commented="no" id="H0B372F498F87464289F54EEA45558D67"><enum>(2)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The term <quote>section 1256
contract</quote> shall not include—</text>
<subparagraph commented="no" id="H76743F83E38E44E7A0C933C315CC8618"><enum>(A)</enum><text>any securities
futures contract or option on such a contract unless such contract or option is
a dealer securities futures contract, or</text>
</subparagraph><subparagraph commented="no" id="H76E2A29D755C4135A1037A4B181256AC"><enum>(B)</enum><text display-inline="yes-display-inline">any interest rate swap, currency swap,
basis swap, interest rate cap, interest rate floor, commodity swap, equity
swap, equity index swap, credit default swap, or similar
agreement.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H3FA3B6F6CEEE4B188A0BB58DDBA04016"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section>
Speaker of the House of Representatives.
Vice President of the United States and President of the
Senate.