1.This Act may be cited as the The Wall
Street Reform and Consumer Protection Act of
2009
.
2.The table of contents
for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Title I—Financial stability improvement Act
Sec. 1000. Short title; definitions.
Sec. 1000A. Restrictions on the Federal Reserve System pending
audit report.
Subtitle A—The Financial Services Oversight
Council
Sec. 1001. Financial Services Oversight Council
established.
Sec. 1002. Resolution of disputes among Federal financial
regulatory agencies.
Sec. 1003. Technical and professional advisory
committees.
Sec. 1004. Financial Services Oversight Council meetings and
council governance.
Sec. 1005. Council staff and funding.
Sec. 1006. Reports to the Congress.
Sec. 1007. Applicability of certain Federal laws.
Sec. 1008. Oversight by GAO.
Subtitle B—Prudential regulation of companies and activities
for financial stability purposes
Sec. 1101. Council and Board authority to obtain
information.
Sec. 1102. Council prudential regulation recommendations to
Federal financial regulatory agencies.
Sec. 1103. Subjecting financial companies to stricter
prudential standards for financial stability purposes.
Sec. 1104. Stricter prudential standards for certain financial
holding companies for financial stability purposes.
Sec. 1105. Mitigation of systemic risk.
Sec. 1106. Subjecting activities or practices to stricter
prudential standards for financial stability purposes.
Sec. 1107. Stricter regulation of activities and practices for
financial stability purposes.
Sec. 1108. Effect of rescission of identification.
Sec. 1109. Emergency financial stabilization.
Sec. 1110. Corporation must receive warrants when paying or
risking taxpayer funds.
Sec. 1111. Examinations and enforcement actions for insurance
and resolutions purposes.
Sec. 1112. Study of the effects of size and complexity of
financial institutions on capital market efficiency and economic
growth.
Sec. 1113. Exercise of Federal Reserve authority.
Sec. 1114. Stress tests.
Sec. 1115. Contingent Capital.
Sec. 1116. Restriction on proprietary trading by designated
financial holding companies.
Sec. 1117. Rule of construction.
Subtitle C—Improvements to supervision and regulation of
Federal depository institutions
Sec. 1201. Definitions.
Sec. 1202. Amendments to the Home Owners’ Loan Act relating to
transfer of functions.
Sec. 1203. Amendments to the revised statutes.
Sec. 1204. Power and duties transferred.
Sec. 1205. Transfer date.
Sec. 1206. Expiration of term of comptroller.
Sec. 1207. Office of Thrift Supervision abolished.
Sec. 1208. Savings provisions.
Sec. 1209. Regulations and orders.
Sec. 1210. Coordination of transition activities.
Sec. 1211. Interim responsibilities of office of the
comptroller of the currency and office of thrift supervision.
Sec. 1212. Employees transferred.
Sec. 1213. Property transferred.
Sec. 1214. Funds transferred.
Sec. 1215. Disposition of affairs.
Sec. 1216. Continuation of services.
Sec. 1217. Contracting and leasing authority.
Sec. 1218. Treatment of savings and loan holding
companies.
Sec. 1219. Practices of certain mutual thrift holding companies
preserved.
Sec. 1220. Implementation plan and reports.
Sec. 1221. Composition of board of directors of the Federal
Deposit Insurance Corporation.
Sec. 1222. Amendments to section 3.
Sec. 1223. Amendments to section 7.
Sec. 1224. Amendments to section 8.
Sec. 1225. Amendments to section 11.
Sec. 1226. Amendments to section 13.
Sec. 1227. Amendments to section 18.
Sec. 1228. Amendments to section 28.
Sec. 1229. Amendments to the Alternative Mortgage Transaction
Parity Act of 1982.
Sec. 1230. Amendments to the Bank Holding Company Act of
1956.
Sec. 1231. Amendments to the Bank Protection Act of
1968.
Sec. 1232. Amendments to the Bank Service Company
Act.
Sec. 1233. Amendments to the Community Reinvestment Act of
1977.
Sec. 1234. Amendments to the Depository Institution Management
Interlocks Act.
Sec. 1235. Amendments to the Emergency Homeowners’ Relief
Act.
Sec. 1236. Amendments to the Equal Credit Opportunity
Act.
Sec. 1237. Amendments to the Federal Credit Union
Act.
Sec. 1238. Amendments to the Federal Financial Institutions
Examination Council Act of 1978.
Sec. 1239. Amendments to the Federal Home Loan Bank
Act.
Sec. 1240. Amendments to the Federal Reserve Act.
Sec. 1241. Amendments to the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
Sec. 1242. Amendments to the Housing Act of 1948.
Sec. 1243. Amendments to the Housing and Community Development
Act of 1992 and the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992.
Sec. 1244. Amendment to the Housing and Urban-Rural Recovery
Act of 1983.
Sec. 1245. Amendments to the National Housing Act.
Sec. 1246. Amendments to the Right to Financial Privacy Act of
1978.
Sec. 1247. Amendments to the Balanced Budget and Emergency
Deficit Control Act of 1985.
Sec. 1248. Amendments to the Crime Control Act of
1990.
Sec. 1249. Amendment to the Flood Disaster Protection Act of
1973.
Sec. 1250. Amendment to the Investment Company Act of
1940.
Sec. 1251. Amendment to the Neighborhood Reinvestment
Corporation Act.
Sec. 1252. Amendments to the Securities Exchange Act of
1934.
Sec. 1253. Amendments to title 18, United States
Code.
Sec. 1254. Amendments to title 31, United States
Code.
Sec. 1255. Requirement for Countercyclical Capital
Requirements.
Sec. 1256. Transfer of authority to the Board with respect to
savings and loan holding companies.
Subtitle D—Further improvements to the regulation of bank
holding companies and depository institutions
Sec. 1301. Treatment of industrial loan companies, savings
associations, and certain other companies under the bank holding company
act.
Sec. 1302. Registration of certain companies as bank holding
companies.
Sec. 1303. Reports and examinations of bank holding companies;
regulation of functionally regulated subsidiaries.
Sec. 1304. Requirements for financial holding companies to
remain well capitalized and well managed.
Sec. 1305. Standards for interstate acquisitions.
Sec. 1306. Enhancing existing restrictions on bank transactions
with affiliates.
Sec. 1307. Eliminating exceptions for transactions with
financial subsidiaries.
Sec. 1308. Lending limits applicable to credit exposure on
derivative transactions, repurchase agreements, reverse repurchase agreements,
and securities lending and borrowing transactions.
Sec. 1309. Restriction on conversions of troubled banks and
thrifts.
Sec. 1310. Lending limits to insiders.
Sec. 1311. Limitations on purchases of assets from
insiders.
Sec. 1312. Rules regarding capital levels of bank holding
companies.
Sec. 1313. Enhancements to factors to be considered in certain
acquisitions.
Sec. 1314. Elimination of elective investment bank holding
company framework.
Sec. 1315. Examination fees for large bank holding
companies.
Subtitle E—Improvements to the Federal Deposit Insurance
Fund
Sec. 1401. Accounting for actual risk to the Deposit Insurance
Fund.
Sec. 1402. Creating a risk-focused assessment base.
Sec. 1403. Elimination of procyclical assessments.
Sec. 1404. Enhanced access to information for deposit insurance
purposes.
Sec. 1405. Transition reserve ratio requirements to reflect new
assessment base.
Subtitle F—Improvements to the asset-backed securitization
process
Sec. 1501. Short title.
Sec. 1502. Credit risk retention.
Sec. 1503. Periodic and other reporting under the Securities
Exchange Act of 1934 for asset-backed securities.
Sec. 1504. Representations and warranties in asset-backed
offerings.
Sec. 1505. Exempted transactions under the Securities Act of
1933.
Sec. 1506. Study on the macroeconomic effects of risk retention
requirements.
Subtitle G—Enhanced dissolution authority
Sec. 1601. Short title.
Sec. 1602. Definitions.
Sec. 1603. Systemic risk determination.
Sec. 1604. Resolution; stabilization.
Sec. 1605. Judicial review.
Sec. 1606. Directors not liable for acquiescing in appointment
of receiver.
Sec. 1607. Termination and exclusion of other
actions.
Sec. 1608. Rulemaking.
Sec. 1609. Powers and duties of corporation.
Sec. 1610. Clarification of prohibition regarding concealment
of assets from receiver or liquidating agent.
Sec. 1611. Office of Resolution.
Sec. 1612. Miscellaneous provisions.
Sec. 1613. Amendment to Federal Deposit Insurance
Act.
Sec. 1614. Application of executive compensation
limitations.
Subtitle H—Additional improvements for financial crisis
management
Sec. 1701. Additional improvements for financial crisis
management.
Sec. 1702. Certain restrictions related to foreign currency
swap authority.
Sec. 1703. Additional oversight of financial regulatory
system.
Subtitle I—Miscellaneous
Sec. 1801. Inclusion of minorities and women; Diversity in
agency workforce.
Subtitle J—International policy coordination
Sec. 1901. International policy coordination.
Subtitle K—International financial provisions
Sec. 1951. Access to United States financial market by foreign
institutions.
Title II—Corporate and Financial Institution Compensation
Fairness Act
Sec. 2001. Short title.
Sec. 2002. Shareholder vote on executive compensation
disclosures.
Sec. 2003. Compensation committee independence.
Sec. 2004. Enhanced compensation structure reporting to reduce
perverse incentives.
Title III—Over-the-Counter Derivatives Markets Act
Sec. 3001. Short title.
Subtitle A—Regulation of Swap Markets
Sec. 3101. Definitions.
Sec. 3102. Jurisdiction.
Sec. 3103. Clearing.
Sec. 3104. Public reporting of aggregate swap data.
Sec. 3105. Swap repositories.
Sec. 3106. Reporting and recordkeeping.
Sec. 3107. Registration and regulation of swap dealers and
major swap participants.
Sec. 3108. Segregation of assets held as collateral in swap
transactions.
Sec. 3109. Conflicts of interest.
Sec. 3110. Swap execution facilities.
Sec. 3111. Derivatives transaction execution facilities and
exempt boards of trade.
Sec. 3112. Designated contract markets.
Sec. 3113. Position limits.
Sec. 3114. Enhanced authority over registered
entities.
Sec. 3115. Foreign boards of trade.
Sec. 3116. Legal certainty for swaps.
Sec. 3117. Multilateral clearing organizations.
Sec. 3118. Primary enforcement authority.
Sec. 3119. Enforcement.
Sec. 3120. Retail commodity transactions.
Sec. 3121. Large swap trader reporting.
Sec. 3122. Authority to ban abusive swaps.
Sec. 3123. International harmonization.
Sec. 3124. Authority to ban access to the United States
Financial System.
Sec. 3125. Other authority.
Sec. 3126. Antitrust.
Sec. 3127. Effective date.
Subtitle B—Regulation of Security-Based Swap
Markets
Sec. 3201. Definitions under the Securities Exchange Act of
1934.
Sec. 3202. Repeal of prohibition on regulation of
security-based swaps.
Sec. 3203. Amendments to the Securities Exchange Act of
1934.
Sec. 3204. Registration and regulation of swap dealers and
major swap participants.
Sec. 3205. National security exchange registration
requirements.
Sec. 3206. Reporting and recordkeeping.
Sec. 3207. State gaming and bucket shop laws.
Sec. 3208. Amendments to the Securities Act of 1933; treatment
of security-based swaps.
Sec. 3209. Other authority.
Sec. 3210. Jurisdiction.
Sec. 3211. Effective date.
Subtitle C—Miscellaneous
Sec. 3301. Study on feasibility of requiring use of
standardized algorithmic descriptions for financial derivatives.
Sec. 3302. Study of desirability and feasibility of
establishing single regulator for all transactions involving financial
derivatives.
Sec. 3303. Recommendations for changes to insolvency
laws.
Sec. 3304. Prohibition against government
assistance.
Title IV—Consumer Financial Protection Agency Act
Sec. 4001. Short title.
Sec. 4002. Definitions.
Subtitle A—Establishment of the Agency
Sec. 4101. Establishment of the Consumer Financial Protection
Agency.
Sec. 4102. Director.
Sec. 4103. Consumer Financial Protection Oversight
Board.
Sec. 4104. Executive and administrative powers.
Sec. 4105. Administration.
Sec. 4106. Consumer Advisory Board.
Sec. 4107. Coordination.
Sec. 4108. Reports to the Congress.
Sec. 4109. Funding; fees and assessments; penalties and
fines.
Sec. 4110. Amendments relating to other administrative
provisions.
Sec. 4111. Effective date.
Subtitle B—General Powers of the Director and
Agency
Sec. 4201. Mandate and objectives.
Sec. 4202. Authorities.
Sec. 4203. Examination and enforcement for small banks,
thrifts, and credit unions.
Sec. 4204. Simultaneous and coordinated supervisory
action.
Sec. 4205. Limitations on authority of agency and
director.
Sec. 4206. Collection of information; confidentiality
regulations.
Sec. 4207. Monitoring; assessments of significant regulations;
reports.
Sec. 4208. Authority to restrict mandatory predispute
arbitration.
Sec. 4209. Registration and supervision of nondepository
covered persons.
Sec. 4210. Effective date.
Subtitle C—Specific Authorities
Sec. 4301. Prohibiting unfair, deceptive, or abusive acts or
practices.
Sec. 4302. Disclosures.
Sec. 4303. Sales practices.
Sec. 4304. Pilot disclosures.
Sec. 4305. Adopting operational standards to deter unfair,
deceptive, or abusive practices.
Sec. 4306. Duties.
Sec. 4307. Consumer rights to access information.
Sec. 4308. Prohibited acts.
Sec. 4309. Treatment of remittance transfers.
Sec. 4310. Effective date.
Sec. 4311. No authority to require the offering of financial
products or services.
Sec. 4312. Appraisal independence requirements.
Subtitle D—Preservation of State Law
Sec. 4401. Relation to State law.
Sec. 4402. Preservation of enforcement powers of
States.
Sec. 4403. Preservation of existing contracts.
Sec. 4404. State law preemption standards for national banks
and subsidiaries clarified.
Sec. 4405. Visitorial standards.
Sec. 4406. Clarification of law applicable to nondepository
institution subsidiaries.
Sec. 4407. State law preemption standards for Federal savings
associations and subsidiaries clarified.
Sec. 4408. Visitorial standards.
Sec. 4409. Clarification of law applicable to nondepository
institution subsidiaries.
Sec. 4410. Effective date.
Subtitle E—Enforcement Powers
Sec. 4501. Definitions.
Sec. 4502. Investigations and administrative
discovery.
Sec. 4503. Hearings and adjudication proceedings.
Sec. 4504. Litigation authority.
Sec. 4505. Relief available.
Sec. 4506. Referrals for criminal proceedings.
Sec. 4507. Employee protection.
Sec. 4508. Effective date.
Subtitle F—Transfer of Functions and Personnel; Transitional
Provisions
Sec. 4601. Transfer of certain functions.
Sec. 4602. Designated transfer date.
Sec. 4603. Savings provisions.
Sec. 4604. Transfer of certain personnel.
Sec. 4605. Incidental transfers.
Sec. 4606. Interim authority of the Secretary.
Subtitle G—Regulatory Improvements
Sec. 4701. Collection of deposit account data.
Sec. 4702. Small business data collection.
Sec. 4703. Annual financial autopsy.
Subtitle H—Conforming Amendments
Sec. 4801. Amendments to the Inspector General Act of
1978.
Sec. 4802. Amendments to the Privacy Act of 1974.
Sec. 4803. Amendments to the Alternative Mortgage Transaction
Parity Act of 1982.
Sec. 4804. Amendments to the Consumer Credit Protection
Act.
Sec. 4805. Amendments to the Expedited Funds Availability
Act.
Sec. 4806. Amendments to the Federal Deposit Insurance
Act.
Sec. 4807. Amendments to the Gramm-Leach-Bliley
Act.
Sec. 4808. Amendments to the Home Mortgage Disclosure Act of
1975.
Sec. 4809. Amendments to division D of the Omnibus
Appropriations Act, 2009.
Sec. 4810. Amendments to the Homeowners Protection Act of
1998.
Sec. 4811. Amendments to the Real Estate Settlement Procedures
Act of 1974.
Sec. 4812. Amendments to the Right to Financial Privacy Act of
1978.
Sec. 4813. Amendments to the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008.
Sec. 4814. Amendments to the Truth in Savings Act.
Sec. 4815. Amendments to the Telemarketing and Consumer Fraud
and Abuse Prevention Act.
Sec. 4816. Membership in Financial Literacy and Education
Commission.
Sec. 4817. Effective date.
Subtitle I—Improvements to the Federal Trade Commission
Act
Sec. 4901. Amendments to the Federal Trade Commission
Act.
Title V—Capital Markets
Subtitle A—Private Fund Investment Advisers Registration
Act
Sec. 5001. Short title.
Sec. 5002. Definitions.
Sec. 5003. Elimination of private adviser exemption; Limited
exemption for foreign private fund advisers; Limited intrastate
exemption.
Sec. 5004. Collection of systemic risk data.
Sec. 5005. Elimination of disclosure provision.
Sec. 5006. Exemption of and reporting by venture capital fund
advisers.
Sec. 5007. Exemption of and reporting by certain private fund
advisers.
Sec. 5008. Clarification of rulemaking authority.
Sec. 5009. GAO study.
Sec. 5010. Effective date; Transition period.
Sec. 5011. Qualified client standard.
Subtitle B—Accountability and Transparency in Rating Agencies
Act
Sec. 6001. Short title.
Sec. 6002. Enhanced regulation of nationally recognized
statistical rating organizations.
Sec. 6003. Standards for private actions.
Sec. 6004. Issuer disclosure of preliminary
ratings.
Sec. 6005. Change to designation.
Sec. 6006. Timeline for regulations.
Sec. 6007. Elimination of exemption from fair disclosure
rule.
Sec. 6008. Advisory Board.
Sec. 6009. Removal of statutory references to credit
ratings.
Sec. 6010. Review of reliance on ratings.
Sec. 6011. Publication of rating histories on the EDGAR
system.
Sec. 6012. Effect of Rule 436(g).
Sec. 6013. Studies.
Subtitle C—Investor Protection Act
Sec. 7001. Short title.
Part 1—Disclosure
Sec. 7101. Investor Advisory Committee established.
Sec. 7102. Clarification of the Commission’s authority to
engage in consumer testing.
Sec. 7103. Establishment of a fiduciary duty for brokers,
dealers, and investment advisers, and harmonization of regulation.
Sec. 7104. Commission study on disclosure to retail customers
before purchase of products or services.
Sec. 7105. Beneficial ownership and short-swing profit
reporting.
Sec. 7106. Revision to recordkeeping rules.
Sec. 7107. Study on enhancing investment advisor
examinations.
Sec. 7108. GAO study of financial planning.
Part 2—Enforcement and Remedies
Sec. 7201. Authority to restrict mandatory pre-dispute
arbitration.
Sec. 7202. Comptroller General study to review securities
arbitration system.
Sec. 7203. Whistleblower protection.
Sec. 7204. Conforming amendments for whistleblower
protection.
Sec. 7205. Implementation and transition provisions for
whistleblower protections.
Sec. 7206. Collateral bars.
Sec. 7207. Aiding and abetting authority under the Securities
Act and the Investment Company Act.
Sec. 7208. Authority to impose penalties for aiding and
abetting violations of the Investment Advisers Act.
Sec. 7209. Deadline for completing examinations, inspections
and enforcement actions.
Sec. 7210. Nationwide service of subpoenas.
Sec. 7211. Authority to impose civil penalties in cease and
desist proceedings.
Sec. 7212. Formerly associated persons.
Sec. 7213. Sharing privileged information with other
authorities.
Sec. 7214. Expanded access to grand jury material.
Sec. 7215. Aiding and abetting standard of knowledge satisfied
by recklessness.
Sec. 7216. Extraterritorial jurisdiction of the antifraud
provisions of the Federal securities laws.
Sec. 7217. Fidelity bonding.
Sec. 7218. Enhanced SEC authority to conduct surveillance and
risk assessment.
Sec. 7219. Investment company examinations.
Sec. 7220. Control person liability under the Securities
Exchange Act.
Sec. 7221. Enhanced application of anti-fraud
provisions.
Sec. 7222. SEC authority to issue rules on proxy
access.
Part 3—Commission funding and organization
Sec. 7301. Authorization of appropriations.
Sec. 7302. Investment adviser regulation funding.
Sec. 7303. Amendments to section 31 of the Securities Exchange
Act of 1934.
Sec. 7304. Commission organizational study and
reform.
Sec. 7305. Capital Markets Safety Board.
Sec. 7306. Report on implementation of post-Madoff
reforms
.
Sec. 7307. Joint Advisory Committee.
Part 4—Additional Commission reforms
Sec. 7401. Regulation of securities lending.
Sec. 7402. Lost and stolen securities.
Sec. 7403. Fingerprinting.
Sec. 7404. Equal treatment of self-regulatory organization
rules.
Sec. 7405. Clarification that section 205 of the Investment
Advisers Act of 1940 does not apply to State-registered advisers.
Sec. 7406. Conforming amendments for the repeal of the Public
Utility Holding Company Act of 1935.
Sec. 7407. Promoting transparency in financial
reporting.
Sec. 7408. Unlawful margin lending.
Sec. 7409. Protecting confidentiality of materials submitted to
the Commission.
Sec. 7410. Technical corrections.
Sec. 7411. Municipal securities.
Sec. 7412. Interested person definition.
Sec. 7413. Rulemaking authority to protect redeeming
investors.
Sec. 7414. Study on SEC revolving door.
Sec. 7415. Study on internal control evaluation and reporting
cost burdens on smaller issuers.
Sec. 7416. Analysis of rule regarding smaller reporting
companies.
Sec. 7417. Financial Reporting Forum.
Sec. 7418. Investment advisers subject to State
authorities.
Sec. 7419. Custodial requirements.
Sec. 7420. Ombudsman.
Part 5—Securities Investor Protection Act amendments
Sec. 7501. Increasing the minimum assessment paid by SIPC
members.
Sec. 7502. Increasing the borrowing limit on treasury
loans.
Sec. 7503. Increasing the cash limit of protection.
Sec. 7504. SIPC as trustee in SIPA liquidation
proceedings.
Sec. 7505. Insiders ineligible for SIPC advances.
Sec. 7506. Eligibility for direct payment
procedure.
Sec. 7507. Increasing the fine for prohibited acts under
SIPA.
Sec. 7508. Penalty for misrepresentation of SIPC membership or
protection.
Sec. 7509. Futures held in a portfolio margin securities
account protection.
Sec. 7510. Study and report on the feasibility of risk-based
assessments for SIPC members.
Sec. 7511. Budgetary treatment of Commission loans to
SIPC.
Part 6—Sarbanes-Oxley Act Amendments
Sec. 7601. Public Company Accounting Oversight Board oversight
of auditors of brokers and dealers.
Sec. 7602. Foreign regulatory information sharing.
Sec. 7603. Expansion of audit information to be produced and
exchanged with foreign counterparts.
Sec. 7604. Conforming amendment related to
registration.
Sec. 7605. Fair fund amendments.
Sec. 7606. Exemption for nonaccelerated filers.
Sec. 7607. Whistleblower protection against retaliation by a
subsidiary of an issuer.
Sec. 7608. Congressional access to information.
Sec. 7609. Creation of ombudsman for the PCAOB.
Sec. 7610. Auditing Oversight Board.
Part 7—Senior Investment Protection
Sec. 7701. Findings.
Sec. 7702. Definitions.
Sec. 7703. Grants to States for enhanced protection of seniors
from being mislead by false designations.
Sec. 7704. Applications.
Sec. 7705. Length of participation.
Sec. 7706. Authorization of appropriations.
Part 8—Registration of Municipal Financial Advisors
Sec. 7801. Municipal financial adviser registration
requirement.
Sec. 7802. Conforming amendments.
Sec. 7803. Effective dates.
Title VI—Federal Insurance Office
Sec. 8001. Short title.
Sec. 8002. Federal Insurance Office established.
Sec. 8003. Report on global reinsurance market.
Sec. 8004. Study on modernization and improvement of insurance
regulation in the United States.
<enum>I</enum><header>Financial
stability improvement Act</header>
<section id="H0644F4EE2A5944FDB0C5C37F955773DA"><enum>1000.</enum><header>Short title;
definitions</header>
<subsection id="HBEE11188F7F74312ACF21A1CA3F5F00B"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This title may be cited
as the <quote><short-title>Financial Stability Improvement
Act of 2009</short-title></quote>.</text>
</subsection><subsection id="H555FBAB234D440D78FFBB71F57DA4697"><enum>(b)</enum><header>Definitions</header><text>For
purposes of this title, the following definitions shall apply:</text>
<paragraph id="HD540B156BDF64B03BA27C7D6C3D41A4F"><enum>(1)</enum><text>The term
<quote>Board</quote> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><paragraph id="H7EAF8C0FA0E54988B76DE6E9D49DB63E"><enum>(2)</enum><text display-inline="yes-display-inline">The term <quote>Council</quote> means the
Financial Services Oversight Council established under section 1001.</text>
</paragraph><paragraph id="HED7A5944628E4ECA822710A17CBBA1EC"><enum>(3)</enum><text display-inline="yes-display-inline">The term <quote>Federal financial
regulatory agency</quote> means any agency that has a voting member of the
Council as set forth in section 1001(b)(1).</text>
</paragraph><paragraph id="H2719680A61744C0F988036874BA4F7AF"><enum>(4)</enum><text display-inline="yes-display-inline">The term <quote>financial company</quote>
means a company or other entity—</text>
<subparagraph id="H5E627798C3B04C40805A2A3AD274C669"><enum>(A)</enum><text>that is—</text>
<clause id="HC6FE2EBFAA3D4698A417F09C78C15408"><enum>(i)</enum><text>incorporated or
organized under the laws of the United States or any State, territory, or
possession of the United States, the District of Columbia, Commonwealth of
Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or
the United States Virgin Islands; or</text>
</clause><clause display-inline="no-display-inline" id="H4123BB7935CC456F8AD868FD1FF7B1AE"><enum>(ii)</enum><text display-inline="yes-display-inline">a company incorporated in or organized in a
country other than the United States that has significant operations in the
United States through—</text>
<subclause id="H7211F468732549229BFD32F896C91F2B"><enum>(I)</enum><text>a
Federal or State branch or agency of a foreign bank as such terms are defined
in the International Banking Act of 1978 (12 U.S.C. 3101 et seq.); or</text>
</subclause><subclause id="H6BDF91EB5B35496A8B5199FBC3E0BB18"><enum>(II)</enum><text>a United States
affiliate or other United States operating entity of a company that is
incorporated or organized in a country other than the United States; and</text>
</subclause></clause></subparagraph><subparagraph id="HA8F7079BBAA34776926F6A090E9E615A"><enum>(B)</enum><text>that is, in whole
or in part, directly or indirectly, engaged in financial activities.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HEEA9D3C9822A48448884291AFDC6607D"><enum>(5)</enum><header>Financial
holding company subject to stricter standards</header><text display-inline="yes-display-inline">The term <quote>financial holding company
subject to stricter standards</quote> means—</text>
<subparagraph id="HFBFAD15863FD4FD3991C3D433B3180F4"><enum>(A)</enum><text>a financial
company that has been subjected to stricter prudential standards under subtitle
B; or</text>
</subparagraph><subparagraph id="HDE9209410205437AB5F3FE1ACE0ADC55"><enum>(B)</enum><text>in the case of a
financial company described in subparagraph (A) that is required to establish
an intermediate holding company under section 6 of the Bank Holding Company
Act, the section 6 holding company through which the financial company is
required to conduct its financial activities.</text>
</subparagraph></paragraph><paragraph id="H03E477ABCD074689894D0E154CF09973"><enum>(6)</enum><text display-inline="yes-display-inline">The term <quote>primary financial
regulatory agency</quote> means the following:</text>
<subparagraph id="HB8DA0DB3203449C3AE80936EDB4EC074"><enum>(A)</enum><text>The Comptroller of
the Currency, with respect to any national bank, any Federal branch or Federal
agency of a foreign bank, and, after the date on which the functions of the
Office of Thrift Supervision and the Director of the Office of Thrift
Supervision are transferred under subtitle C, a Federal savings
association.</text>
</subparagraph><subparagraph id="HC685D3A01E71408DAC2904435C77BA1B"><enum>(B)</enum><text>The Board, with
respect to—</text>
<clause id="HBD33AB1913844807AD63C6DAC2B83DD8"><enum>(i)</enum><text>any
State member bank;</text>
</clause><clause id="H383C8EE20A0645A88E205E2DA9B2B7BB"><enum>(ii)</enum><text>any
bank holding company and any subsidiary of such company (as such terms are
defined in the Bank Holding Company Act), other than a subsidiary that is
described in any other subparagraph of this paragraph to the extent that the
subsidiary is engaged in an activity described in such subparagraph;</text>
</clause><clause id="H39736B7F75D24824AE37EB913E2308FB"><enum>(iii)</enum><text display-inline="yes-display-inline">any financial holding company subject to
stricter standards and any subsidiary (as such term is defined in the Bank
Holding Company Act) of such company, other than a subsidiary that is described
in any other subparagraph of this paragraph to the extent that the subsidiary
is engaged in an activity described in such subparagraph;</text>
</clause><clause id="HD8C4BE7F83454AFD83D71448E4999672"><enum>(iv)</enum><text>any
organization organized and operated under section 25 or 25A of the Federal
Reserve Act (12 U.S.C. 601 et seq. or 611 et seq.); and</text>
</clause><clause id="HAE5B1D0362584C78AE5298D745E328AD"><enum>(v)</enum><text>any
foreign bank or company that is treated as a bank holding company under
subsection (a) of section 8 of the International Banking Act of 1978 and any
subsidiary (other than a bank or other subsidiary that is described in any
other subparagraph of this paragraph) of any such foreign bank or
company.</text>
</clause></subparagraph><subparagraph id="H67C6A0356257479E925F910C14E16C6F"><enum>(C)</enum><text>The Federal
Deposit Insurance Corporation, with respect to a State nonmember bank, any
insured State branch of a foreign bank (as such terms are defined in section 3
of the Federal Deposit Insurance Act), and, after the date on which the
functions of the Office of Thrift Supervision are transferred under subtitle C,
any State savings association.</text>
</subparagraph><subparagraph id="H2EFB378603704680955053A2D320D020"><enum>(D)</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.).</text>
</subparagraph><subparagraph id="H7B36CF966DBA419DA7B6EC6A51913D4E"><enum>(E)</enum><text>The Securities and
Exchange Commission, with respect to—</text>
<clause id="H767C6E7D47844246BC9C03F56123FBB8"><enum>(i)</enum><text>any
broker or dealer registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</clause><clause id="HA6D131D687FA45C88E1F6A1B86D1F30B"><enum>(ii)</enum><text>any
investment company registered with the Securities and Exchange Commission under
the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.);</text>
</clause><clause id="HA191FCC0899A4EE8B493B52DBD5CF192"><enum>(iii)</enum><text>any investment
adviser registered with the Securities and Exchange Commission under the
Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) with respect to the
investment advisory activities of such company and activities incidental to
such advisory activities;</text>
</clause><clause id="H0AB6A066A9D6459AA43394CFAB59B6B2"><enum>(iv)</enum><text display-inline="yes-display-inline">any clearing agency (as defined in section
3(a)(23) of the Securities Exchange Act of 1934;</text>
</clause><clause id="HA0E9F6988E8A4868B898096FB3F78997"><enum>(v)</enum><text display-inline="yes-display-inline">any exchange registered as a national
securities exchange with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</clause><clause id="H197671DEC64D44AA8BA19CBDE52481C1"><enum>(vi)</enum><text>any
credit rating agency registered with the Securities and Exchange Commission
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);</text>
</clause><clause id="HDCA3E671F13949EC867C699C1444B711"><enum>(vii)</enum><text display-inline="yes-display-inline">any securities information processor
registered with the Securities and Exchange Commission under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.); and</text>
</clause><clause id="H1F028E77FA674EA3A9AEE522EBDE1CC5"><enum>(viii)</enum><text display-inline="yes-display-inline">any transfer agent registered with the
Securities and Exchange Commission under the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.).</text>
</clause></subparagraph><subparagraph id="H6955D9B7280C4875A7662D8630DDB24B"><enum>(F)</enum><text>The Commodity
Futures Trading Commission, with respect to—</text>
<clause id="HAB88CA6C6C264792BF594DB0EFB959D0"><enum>(i)</enum><text>any
futures commission merchant, any commodity trading adviser, and 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 commodities
activities of such entity and activities incidental to such commodities
activities; and</text>
</clause><clause id="HFA0BAB0AFC7D4CCF8278A4B514F4CDF8"><enum>(ii)</enum><text display-inline="yes-display-inline">any derivatives clearing organization (as
defined in the Commodity Exchange Act).</text>
</clause></subparagraph><subparagraph id="H1940E6B2F33B4292AD80C4443F25000F"><enum>(G)</enum><text>The Federal
Housing Finance Agency with respect to the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, and the Federal home
loan banks.</text>
</subparagraph><subparagraph id="H3D31D415E023499880FFFB91415885CD"><enum>(H)</enum><text>The State
insurance authority of the State in which an insurance company is domiciled,
with respect to the insurance activities and activities incidental to such
insurance activities of an insurance company that is subject to supervision by
the State insurance authority under State insurance law.</text>
</subparagraph><subparagraph id="HAA1F15306F594E2893FA34206834FA69"><enum>(I)</enum><text>The Office of
Thrift Supervision, with respect to any Federal savings association, State
savings association, or savings and loan holding company, until the date on
which the functions of the Office of Thrift Supervision are transferred under
subtitle C.</text>
</subparagraph></paragraph><paragraph id="H66974C80321A45D39D999AAC25D9966A"><enum>(7)</enum><header>Terms defined in
other laws</header>
<subparagraph id="H94AFEAEA81B5493FAFAFB1C2642779EC"><enum>(A)</enum><header>Affiliate</header><text>The
term <term>affiliate</term> has the meaning given such term in section 2(k) of
the Bank Holding Company Act of 1956.</text>
</subparagraph><subparagraph id="H154125F252B34BDD94081EAE92F8D2B0"><enum>(B)</enum><header>State member
bank, state nonmember bank</header><text>The terms <term>State member
bank</term> and <term>State nonmember bank</term> have the same meanings as in
subsections (d)(2) and (e)(2), respectively, of section 3 of the Federal
Deposit Insurance Act.</text>
</subparagraph></paragraph></subsection></section><section id="H6DFA1B9F51044314B74291B39C9A8C72"><enum>1000A.</enum><header>Restrictions
on the Federal Reserve System pending audit report</header>
<subsection id="H9215014F24F14D1888C61C37ADE8E6F7"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Comptroller General of the United States shall perform an audit of all actions
taken by the Board of Governors of the Federal Reserve System and the Federal
reserve banks during the current economic crisis pursuant to the authority
granted under section 13(c) of the Federal Reserve Act. Such audit shall be
completed as expeditiously as possible after the date of the enactment of the
Financial Stability Improvement Act of 2009.</text>
</subsection><subsection id="HAF462B911DAD44B2B56083F0AF45F1F4"><enum>(b)</enum><header>Report</header>
<paragraph id="HB1D58BE59FBA4014A8C5FDDCBF0C0835"><enum>(1)</enum><header>Required</header><text display-inline="yes-display-inline">Not later than the end of the 90-day period
beginning on the date the audit referred to in subsection (a) is completed, the
Comptroller General of the United States shall submit a report to the Congress,
and make such report available to the public.</text>
</paragraph><paragraph id="H6300A8E335854563ADFE679769EDDDB1"><enum>(2)</enum><header>Contents</header><text>The
report under paragraph (1) shall include a detailed description of the findings
and conclusion of the Comptroller General with respect to the audit that is the
subject of the report, together with such recommendations for legislative or
administrative action as the Comptroller General may determine to be
appropriate.</text>
</paragraph></subsection></section><subtitle id="HC8376F7C280C4C47AAAE83FB03670017"><enum>A</enum><header>The Financial
Services Oversight Council</header>
<section id="H48F0A67802C34493BAED8F18F8614893"><enum>1001.</enum><header>Financial
Services Oversight Council established</header>
<subsection id="H4A986D7618D64C86B6E9F6F2F90F18D8"><enum>(a)</enum><header>Establishment</header><text>Immediately
upon enactment of this title, there is established a Financial Services
Oversight Council.</text>
</subsection><subsection id="HD739D0EB800A451EBD80CB5E742F1B21"><enum>(b)</enum><header>Membership</header><text>The
Council shall consist of the following:</text>
<paragraph id="H6CE61E067BBD46458ED96A2098ADE785"><enum>(1)</enum><header>Voting
members</header><text>Voting members, who shall each have one vote on the
Council, as follows:</text>
<subparagraph id="HDA04956B74AA4B61ADBC6FEB8A2E75F1"><enum>(A)</enum><text>The Secretary of
the Treasury, who shall serve as the Chairman of the Council.</text>
</subparagraph><subparagraph id="H9DA5A6D9A18948FA976720480D27B003"><enum>(B)</enum><text>The Chairman of
the Board of Governors of the Federal Reserve System.</text>
</subparagraph><subparagraph id="HC520C81D5FFD4579A03E829219D1B4A9"><enum>(C)</enum><text>The Comptroller of
the Currency.</text>
</subparagraph><subparagraph id="HDD360D4A37174A54B6DF04B237C506F2"><enum>(D)</enum><text>The Director of
the Office of Thrift Supervision, until the functions of the Director of the
Office of Thrift Supervision are transferred to pursuant to subtitle C.</text>
</subparagraph><subparagraph id="H0165C85B87FB4E8783623730A52AFED5"><enum>(E)</enum><text>The Chairman of
the Securities and Exchange Commission.</text>
</subparagraph><subparagraph id="H0ECAE39F13004AA79285F397C0BBD129"><enum>(F)</enum><text>The Chairman of
the Commodity Futures Trading Commission.</text>
</subparagraph><subparagraph id="H3C8853BF49DD41C893513C593E187168"><enum>(G)</enum><text>The Chairperson of
the Federal Deposit Insurance Corporation.</text>
</subparagraph><subparagraph id="H019BAF68DC854FB5810B139AC55A5694"><enum>(H)</enum><text>The Director of
the Federal Housing Finance Agency.</text>
</subparagraph><subparagraph id="H1FD6EE1DAF564F2194DC64187382259F"><enum>(I)</enum><text>The Chairman of
the National Credit Union Administration.</text>
</subparagraph></paragraph><paragraph id="H89D62D20FDFC412DBB56CA6491CAB8D4"><enum>(2)</enum><header>Nonvoting
members</header><text>Nonvoting members, who shall serve in an advisory
capacity:</text>
<subparagraph id="H3F340799852D4698ACED439713DD631A"><enum>(A)</enum><text>A State insurance
commissioner, to be designated by a selection process determined by the State
insurance commissioners, provided that the term for which a State insurance
commissioner may serve shall last no more than the 2-year period beginning on
the date that the commissioner is selected.</text>
</subparagraph><subparagraph id="H07BD54D6AE984A75AF758CAA1DDC9848"><enum>(B)</enum><text>A State banking
supervisor, to be designated by a selection process determined by the State
bank supervisors, provided that the term for which a State banking supervisor
may serve shall last no more than the 2-year period beginning on the date that
the supervisor is selected.</text>
</subparagraph></paragraph></subsection><subsection id="H2A279A5266D846BA9B4410376383AD0B"><enum>(c)</enum><header>Duties</header><text>The
Council shall have the following duties:</text>
<paragraph id="H74AC857A2ACE4630BA0CDC246EB9B905"><enum>(1)</enum><text display-inline="yes-display-inline">To advise the Congress on financial
domestic and international regulatory developments, including insurance and
accounting developments, and make recommendations that will enhance the
integrity, efficiency, orderliness, competitiveness, and stability of the
United States financial markets.</text>
</paragraph><paragraph id="H429A2737F72E44F59019EA59FC3A8B2E"><enum>(2)</enum><text>To monitor the
financial services marketplace to identify potential threats to the stability
of the United States financial system.</text>
</paragraph><paragraph id="HD8A9C8E876F143298FECD0E7FEE835B0"><enum>(3)</enum><text display-inline="yes-display-inline">To identify potential threats to the
stability of the United States financial system that do not arise out of the
financial services marketplace.</text>
</paragraph><paragraph id="HE2848AB280C546488169785CBDC289AF"><enum>(4)</enum><text>To develop plans
(and conduct exercises in furtherance of those plans) to prepare for potential
threats identified under paragraphs (2) and (3).</text>
</paragraph><paragraph display-inline="no-display-inline" id="HB2A3FD6D307A470BAE99DFDDE700B27B"><enum>(5)</enum><text display-inline="yes-display-inline">To subject financial companies and
financial activities to stricter prudential standards in order to promote
financial stability and mitigate systemic risk in accordance with subtitle
B.</text>
</paragraph><paragraph id="HB4C55B43CC2E4EB4A3646D8CB11B6EBE"><enum>(6)</enum><text>To issue formal
recommendations that a Council member agency adopt stricter prudential
standards for firms it regulates to mitigate systemic risk in accordance with
subtitle B of this title.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H114B054B65D045078782E409FE366CEB"><enum>(7)</enum><text display-inline="yes-display-inline">To monitor international regulatory
developments, including both insurance and accounting developments, and to
identify those developments that may conflict with the policies of the United
States or place United States financial services firms or United States
financial markets at a competitive disadvantage.</text>
</paragraph><paragraph id="H0558834EB35C4415BB861B2CA3039E92"><enum>(8)</enum><text>To facilitate
information sharing and coordination among the members of the Council regarding
financial services policy development, rulemakings, examinations, reporting
requirements, and enforcement actions.</text>
</paragraph><paragraph id="H001FC5A57FC4429281F326566CF3D239"><enum>(9)</enum><text>To provide a forum
for discussion and analysis of emerging market developments and financial
regulatory issues among its members.</text>
</paragraph><paragraph id="H2BD7B6C79C364160A3DE8DC822092B91"><enum>(10)</enum><text>At the request of
an agency that is a Council member, to resolve a jurisdictional dispute between
that agency and another agency that is a Council member in accordance with
section 1002.</text>
</paragraph><paragraph id="H883AD2C2899A40219238B1C129619590"><enum>(11)</enum><text display-inline="yes-display-inline">To review and submit comments to the
Securities and Exchange Commission and any standards setting body with respect
to an existing or proposed accounting principle, standard, or procedure.</text>
</paragraph></subsection></section><section id="H0615C20DA93446CDB74646243CE4ECFF"><enum>1002.</enum><header>Resolution of
disputes among Federal financial regulatory agencies</header>
<subsection id="H40F4E8AA49A3430B9F7151358147FB08"><enum>(a)</enum><header>Request for
dispute resolution</header><text>The Council shall resolve a dispute among 2 or
more Federal financial regulatory agencies if—</text>
<paragraph id="HB876F8F0837C47C78E48C7C8B4D8108E"><enum>(1)</enum><text>a
Federal financial regulatory agency has a dispute with another Federal
financial regulatory agency about the agencies’ respective jurisdiction over a
particular financial company or financial activity or product (excluding
matters for which another dispute mechanism specifically has been provided
under Federal law);</text>
</paragraph><paragraph id="H7CDCEF1BC00544269CAF1A5D30A65295"><enum>(2)</enum><text>the disputing
agencies cannot, after a demonstrated good faith effort, resolve the dispute
among themselves; and</text>
</paragraph><paragraph id="H8482C8DE656146E4BCB86BB4ED745D3E"><enum>(3)</enum><text>any of the Federal
financial regulatory agencies involved in the dispute—</text>
<subparagraph id="H21C66ED038EB43D9BD4E781DBC93A37A"><enum>(A)</enum><text>provides all other
disputants prior notice of its intent to request dispute resolution by the
Council; and</text>
</subparagraph><subparagraph id="HCCEF9C4E1AB844C2961C8FF395D0F935"><enum>(B)</enum><text>requests in
writing, no earlier than 14 days after providing the notice described in
paragraph (A), that the Council resolve the dispute.</text>
</subparagraph></paragraph></subsection><subsection id="HEF7E3137E37C4ED1B9714F4C546BAEF9"><enum>(b)</enum><header>Council
decision</header><text>The Council shall decide the dispute—</text>
<paragraph id="HACEF9414D788468081B3FD2723F3BFDB"><enum>(1)</enum><text>within a
reasonable time after receiving the dispute resolution request;</text>
</paragraph><paragraph id="H1EC03B4E89694F18B36622909C62F9C6"><enum>(2)</enum><text>after
consideration of relevant information provided by each party to the dispute;
and</text>
</paragraph><paragraph id="HD295BF727F7449EC96B8AA1F9CA65DB1"><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 id="H066DEB21D49D416F92448566712C56E2"><enum>(c)</enum><header>Form and binding
effect</header><text>A Council decision under this section shall be in writing
and include an explanation and shall be binding on all Federal financial
regulatory agencies that are parties to the dispute.</text>
</subsection></section><section id="HFFB59082D96E47E5836D8F47AEDF3975"><enum>1003.</enum><header>Technical and
professional advisory committees</header><text display-inline="no-display-inline">The Council is authorized to appoint—</text>
<paragraph id="HA5A059D170C24B03BE18CF4E9F4D316C"><enum>(1)</enum><text>subsidiary working
groups composed of Council members and their staff, Council staff, or a
combination; and</text>
</paragraph><paragraph id="HC2706603C07A46A6991174602CBF17ED"><enum>(2)</enum><text>such temporary
special advisory, technical, or professional committees as may be useful in
carrying out its functions, which may be composed of Council members and their
staff, other persons, or a combination.</text>
</paragraph></section><section id="H50F764C00DE74CB2989A985734900D61"><enum>1004.</enum><header>Financial
Services Oversight Council meetings and council governance</header>
<subsection id="H3414CF8D5A7A4CBE8DB6D0C151F976D2"><enum>(a)</enum><header>Meetings</header><text>The
Council shall meet as frequently as the Chairman deems necessary, but not less
than quarterly.</text>
</subsection><subsection id="H68690532830241B69FED99026B0E3E58"><enum>(b)</enum><header>Voting</header><text>Unless
otherwise provided, the Council shall make all decisions the Council is
required or authorized to make by a majority of the total voting membership of
the Council under section 1001(b)(1).</text>
</subsection></section><section id="HDA35BD5021C24C83A6446A837EB94E0F"><enum>1005.</enum><header>Council staff
and funding</header>
<subsection id="H73C626C28DDF4446BEB58C613368383C"><enum>(a)</enum><header>Department of
the treasury</header><text>The Secretary of the Treasury shall—</text>
<paragraph id="H25C51B8B29824AA29216D2C093BE9DCF"><enum>(1)</enum><text>detail permanent
staff from the Department of the Treasury to provide the Council (and any
temporary special advisory, technical, or professional committees appointed by
the Council) with professional and expert support; and</text>
</paragraph><paragraph id="HEE1DCE5C9C394D52867AD2B4AD304BE2"><enum>(2)</enum><text>provide such other
services and facilities necessary for the performance of the Council’s
functions and fulfillment of the duties and mission of the Council.</text>
</paragraph></subsection><subsection id="HEC119752183E4C60944F4AA452FC53C8"><enum>(b)</enum><header>Other
departments and agencies</header><text>In addition to the assistance prescribed
in subsection (a), departments and agencies of the United States may, with the
approval of the Secretary of the Treasury—</text>
<paragraph id="H2B728FD1973C469F8BF579A8B638D84F"><enum>(1)</enum><text>detail department
or agency staff on a temporary basis to provide additional support to the
Council (and any special advisory, technical, or professional committees
appointed by the Council); and</text>
</paragraph><paragraph id="H1F70BA9869784FA58C20A73E29918FCF"><enum>(2)</enum><text>provide such
services, and facilities as the other departments or agencies may determine
advisable.</text>
</paragraph></subsection><subsection id="H93B81A521E254170B3B44FC773A55369"><enum>(c)</enum><header>Staff status;
council funding</header>
<paragraph id="H4E426B8294764CB0B58F02D61327BBCB"><enum>(1)</enum><header>Status</header><text>Staff
detailed to the Council by the Secretary of the Treasury and other United
States departments or agencies shall—</text>
<subparagraph id="H060540A1D04548518D7D16E14606E0AD"><enum>(A)</enum><text>report to and be
subject to oversight by the Council during their assignment to the Council;
and</text>
</subparagraph><subparagraph id="H0C2038E1D5DE4D7FBEC7D87AE1F64E6D"><enum>(B)</enum><text>be compensated by
the department of agency from which the staff was detailed.</text>
</subparagraph></paragraph><paragraph id="HA1EB8A54364F4E939E982CFE00BFAF5E"><enum>(2)</enum><header>Funding</header><text>The
administrative expense of the Council shall be paid by the departments and
agencies represented by voting members of the Council on an equal basis.</text>
</paragraph></subsection></section><section id="H58C2D5A8F2584888831E5C02E86D30BE"><enum>1006.</enum><header>Reports to the
Congress</header>
<subsection id="H084C134EBEC042FE9DAF9321783908DD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Semiannually the
Council shall submit a report to the Committee on Financial Services of the
House of Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Comptroller General of the United States that—</text>
<paragraph id="HC4CC72B9B9A64698BA60BB60CA950B68"><enum>(1)</enum><text display-inline="yes-display-inline">describes significant financial and
regulatory developments, including insurance and accounting regulations and
standards, and assesses the impact of those developments on the stability of
the financial system;</text>
</paragraph><paragraph id="HE49C6BBC1F084CC4A6715DDCCDDCC4A3"><enum>(2)</enum><text>recommends actions
that will improve financial stability;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H0D604E7A7597408CA298927AD85E2E8C"><enum>(3)</enum><text display-inline="yes-display-inline">details the size, scale, scope,
concentration, activities, and interconnectedness of the 50 largest financial
institutions, by total assets, in the United States;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HEA9B1547CF904714981A53F81426AF77"><enum>(4)</enum><text display-inline="yes-display-inline">describes plans developed by the Council to
respond to potential threats to the stability of the United States financial
system and the outcome of exercises conducted in furtherance of those
plans;</text>
</paragraph><paragraph id="H43B330C902D84240BE281DBDB02A9EB4"><enum>(5)</enum><text>describes the
nature and scope of any company or activities identified under subtitle B and
steps taken to address them; and</text>
</paragraph><paragraph id="HEB5F7CFD30A244E8993C0E5E1B5999EF"><enum>(6)</enum><text>describes any
dispute resolutions undertaken under section 1002 and the result of such
resolutions.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HDD63EB5341334AE08F9562E4F6167DA1"><enum>(b)</enum><header>Evaluation of
annual report by GAO</header><text display-inline="yes-display-inline">Not
later than 120 days after receiving the report required by subsection (a), the
Comptroller General of the United States shall submit an evaluation of such
report to the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text>
</subsection><subsection id="HBEE28DEAFECB4D2C8F98F06161759F33"><enum>(c)</enum><header>Statements by
voting members of the Council</header><text display-inline="yes-display-inline">At the time each report is submitted under
subsection (a), each voting member of the Council shall—</text>
<paragraph id="H2FEB51BD6F7248389137D704385705C5"><enum>(1)</enum><text display-inline="yes-display-inline">if such member believes that the Council,
the Government, and the private sector are taking all reasonable steps to
ensure financial stability and to prevent systemic risk that would negatively
affect the economy, submit a signed statement to the Committee on Financial
Services of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate stating such belief; or</text>
</paragraph><paragraph id="H33090338F9AB4299B5EA6319B2EAA685"><enum>(2)</enum><text display-inline="yes-display-inline">if such member does not believe that all
reasonable steps described under paragraph (1) are being taken, submit a signed
statement to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate 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="HBDA37BA8D70140D49BE8EE8D12C9C47A"><enum>(d)</enum><header>Testimony by the
Chairman</header><text display-inline="yes-display-inline">The Chairman of the
Council 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 a semi-annual hearing, after the report is submitted under subsection
(a)—</text>
<paragraph id="H03A4E19D250D458C94A5C47D475E72F0"><enum>(1)</enum><text display-inline="yes-display-inline">to discuss the efforts, activities,
objectives, and plans of the Council; and</text>
</paragraph><paragraph id="H2610D7CB56DD480C9D1AC587E38AF628"><enum>(2)</enum><text>to discuss and
answer questions concerning such report.</text>
</paragraph></subsection></section><section id="HCB2ED9C21282456297608687CD311517"><enum>1007.</enum><header>Applicability
of certain Federal laws</header>
<subsection id="H75416BF1E5E44DA0A99A411F030288DF"><enum>(a)</enum><text>The Federal
Advisory Committee Act shall not apply to the Financial Services Oversight
Council, or any special advisory, technical, or professional committees
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 id="HE444A5022CB048569CCD8CE1E8D86331"><enum>(b)</enum><text>The Council shall
not be deemed an <quote>agency</quote> for purposes of any State or Federal
law.</text>
</subsection></section><section display-inline="no-display-inline" id="H2364311E5A9A430A9F6C37E55A305AA8" section-type="subsequent-section"><enum>1008.</enum><header>Oversight by
GAO</header>
<subsection id="H89B6FC9B23134F2780E386717A4A7EDE"><enum>(a)</enum><header>Authority to
audit</header><text display-inline="yes-display-inline">The Comptroller General
of the United States may audit the activities and financial transactions
of—</text>
<paragraph id="H9531F31DD3234E2EA7038C9FF38E8BC1"><enum>(1)</enum><text>the Council;
and</text>
</paragraph><paragraph id="HC24C4D963BE64F429349CC5C20DEE6D3"><enum>(2)</enum><text>any person or
entity acting on behalf of or under the authority of the Council, to the extent
such activities and financial transactions relate to such person’s or entity’s
work for the Council.</text>
</paragraph></subsection><subsection id="H396FA4382CFA4EE29CC1FEB7922916C1"><enum>(b)</enum><header>Access to
information</header>
<paragraph id="H5C030B1724F74B3FBE3C85863C4926EE"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Comptroller General of the United States shall have access, upon request and at
such reasonable time and in such reasonable form as the Comptroller General may
request, to—</text>
<subparagraph id="HE6D2049DDE4746A09C91295AFF3DFB33"><enum>(A)</enum><text>any records or
other information under the control of the Council; and</text>
</subparagraph><subparagraph id="H59BDF8E965CD48DE98C879FE793DE08C"><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 such records or other
information is relevant to an audit under subsection (a).</text>
</subparagraph></paragraph><paragraph id="HAFE4EFBC0D414A2F99867AEEFB318794"><enum>(2)</enum><header>Certain
information specified</header><text>Access under paragraph (1) includes access
to—</text>
<subparagraph id="H2337B37DC9B94CAAB2198B972D10DD35"><enum>(A)</enum><text>information
provided to the Council by its voting and nonvoting members under section 1101;
and</text>
</subparagraph><subparagraph id="HE72F0299D6EE455A9FDF03B22FA72762"><enum>(B)</enum><text>the identity of
each financial holding company subject to stricter standards.</text>
</subparagraph></paragraph></subsection><subsection id="H10C1CBAA42B7471B88B5A270BA3D7FAA"><enum>(c)</enum><header>Periodic
evaluations</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall periodically evaluate the processes and
activities of the Council and the extent to which the Council is fulfilling its
duties under this title. The Comptroller General 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
each such evaluation.</text>
</subsection><subsection id="H8BBC2A2A09FD498F8DC084CBAAFDD6BD"><enum>(d)</enum><header>Confidentiality</header><text>Any
committees or Members of Congress receiving reports or other information from
the Comptroller General of the United States shall maintain the confidentiality
of any such information relating to—</text>
<paragraph id="HD33A73B0F7964325A54D5BC37822BDAA"><enum>(1)</enum><text>dispute
resolutions undertaken under section 1002, including the result of such dispute
resolutions; and</text>
</paragraph><paragraph id="H0A9950FFB51F4F3DB467DC46A69CDAEB"><enum>(2)</enum><text display-inline="yes-display-inline">financial holding companies subject to
stricter standards.</text>
</paragraph></subsection></section></subtitle><subtitle id="HE187E1ECF2A84D3C8F0C085CF0834916"><enum>B</enum><header>Prudential
regulation of companies and activities for financial stability purposes
</header>
<section id="H527B493B08E0497FB858DD44AA4B9EF8"><enum>1101.</enum><header>Council and
Board authority to obtain information</header>
<subsection id="HAF1A4728F2EC407D96CE101955ED6600"><enum>(a)</enum><header>In
general</header><text>The Council and the Board are authorized to receive, and
may request the production of, any data or information from members of the
Council, as necessary—</text>
<paragraph id="H1C25E263FBD542FD8126F42D356414FF"><enum>(1)</enum><text>to monitor the
financial services marketplace to identify potential threats to the stability
of the United States financial system;</text>
</paragraph><paragraph id="HB2C9AB44D030431C98305B6DBEA3A1E8"><enum>(2)</enum><text>to identify global
trends and developments that could pose systemic risks to the stability of the
economy of the United States or other economies; or</text>
</paragraph><paragraph id="HEEAAE27EF10D494281BD279969A812B2"><enum>(3)</enum><text>to otherwise carry
out any of the provisions of this title, including to ascertain a primary
financial regulatory agency’s implementation of recommended prudential
standards under this subtitle.</text>
</paragraph></subsection><subsection id="H21B43B682A0949058945BCF4C8792491"><enum>(b)</enum><header>Submission by
council members</header><text>Notwithstanding any provision of law, any voting
or nonvoting member of the Council is authorized to provide information to the
Council, and the members of the Council shall maintain the confidentiality of
such information.</text>
</subsection><subsection id="HC6EBAF5B5F15487F966FEBF06378E702"><enum>(c)</enum><header>Financial
company data collection</header>
<paragraph id="H843FDD9830EE40B5ADA34613890DD321"><enum>(1)</enum><header>In
general</header><text>The Council or the Board may require the submission of
periodic and other reports from any financial company solely for the purpose of
assessing the extent to which a financial activity or financial market in which
the financial company participates, or the company itself, poses a threat to
financial stability.</text>
</paragraph><paragraph id="HF023575B52C8406CAF97D76DD9223DA4"><enum>(2)</enum><header>Mitigation of
report burden</header><text>Before requiring the submission of reports from
financial companies that are regulated by the primary financial regulatory
agencies, the Council or the Board shall coordinate with such agencies and
shall, whenever possible, rely on information already being collected by such
agencies.</text>
</paragraph></subsection><subsection id="H4896120E83D149B994C6462D25BDDA5E"><enum>(d)</enum><header>Consultation
with agencies and entities</header><text>The Council or the Board, as
appropriate, may consult with Federal and State agencies and other entities to
carry out any of the provisions of this subtitle.</text>
</subsection><subsection id="HEC632164C2BF452EBC589C3D1251075F"><enum>(e)</enum><header>Additional
provisions</header>
<paragraph id="HA6458B1E83FE4FF3A661759E5A97D230"><enum>(1)</enum><header>Data and
Information Sharing</header><text>The Chairman of the Council, in consultation
with the other members of the Council may—</text>
<subparagraph id="H00379B6F4EB142D8B2B32CDFB2452E29"><enum>(A)</enum><text>establish
procedures to share data and information collected by the Council under this
section with the members of the Council;</text>
</subparagraph><subparagraph id="H8C9D065D1ACB4651AB25E8A15773C4E0"><enum>(B)</enum><text>develop an
electronic process for sharing all information collected by the Council with
the Chairman of the Board on a real-time basis; and</text>
</subparagraph><subparagraph id="H15B3CE36D6974F50A61B083F81943353"><enum>(C)</enum><text>issue any
regulations necessary to carry out this subsection; and</text>
</subparagraph><subparagraph id="H5BCE16CD140C453CA57B161671DC0624"><enum>(D)</enum><text>designate the
format in which requested data and information must be submitted to the
Council, including any electronic, digital, or other format that facilitates
the use of such data by the Council in its analysis.</text>
</subparagraph></paragraph><paragraph id="H78AB7FC3A7644342AB650406D860D29E"><enum>(2)</enum><header>Applicable
Privileges Not Waived</header><text>A Federal financial regulator, State
financial regulator, United States financial company, foreign financial company
operating in the United States, financial market utility, or other person shall
not be deemed to have waived any privilege otherwise applicable to any data or
information by transferring the data or information to, or permitting that data
or information to be used by—</text>
<subparagraph id="HCEA8EB5E371F4439AD42D4D31BA6BBF2"><enum>(A)</enum><text>the
Council;</text>
</subparagraph><subparagraph id="H3FB0212E760A4109AA749B5666CAF368"><enum>(B)</enum><text>any Federal
financial regulator or State financial regulator, in any capacity; or</text>
</subparagraph><subparagraph id="H383F7E975A03497E9A3E8366CCB76A18"><enum>(C)</enum><text>any other agency
of the Federal Government (as defined in section 6 of title 18, United States
Code).</text>
</subparagraph></paragraph><paragraph id="H27AF5DAE05D14410809F98BB0A78340F"><enum>(3)</enum><header>Disclosure
Exemption</header><text>Any information obtained by the Council under this
section shall be exempt from the disclosure requirements under section 552 of
title 5, United States Code.</text>
</paragraph><paragraph id="H41C6C1A5590A4FCF999E6D185E95EE75"><enum>(4)</enum><header>Consultation
With Foreign Governments</header><text>Under the supervision of the President,
and in a manner consistent with section 207 of the Foreign Service Act of 1980
(22 U.S.C. 3927), the Chairman 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>
</paragraph><paragraph id="H6A5ED4382E2F468898E8BB6ED067BE31"><enum>(5)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 6 months after the date of
the enactment of this title, the Chairman of the Council shall report to the
Financial Services Committee of the House of Representatives and the Banking,
Housing, and Urban Affairs Committee of the Senate the opinion of the Council
as to whether setting up an electronic database as described in paragraph
(1)(B) would aid the Council in carrying out this section.</text>
</paragraph></subsection></section><section id="H770169668AC442A5AE012FC3BDF8A88C"><enum>1102.</enum><header>Council
prudential regulation recommendations to Federal financial regulatory
agencies</header>
<subsection id="H8EB659A4673243D7BEB376807013E202"><enum>(a)</enum><header>In
general</header><text>The Council is authorized to issue formal
recommendations, publicly or privately, that a Federal financial regulatory
agency adopt stricter prudential standards for firms it regulates to mitigate
systemic risk.</text>
</subsection><subsection id="HF2AAF4E3800F4A968432E497B648741E"><enum>(b)</enum><header>Agency authority
to implement standards</header><text>A Federal financial regulatory agency
specifically is authorized to impose, require reports regarding, examine for
compliance with, and enforce stricter prudential standards and safeguards for
the firms it regulates to mitigate systemic risk. This authority is in addition
to and does not limit any other authority of the Federal financial regulatory
agencies. Compliance by an entity with actions taken by a Federal financial
regulatory agency under this section shall be enforceable in accordance with
the statutes governing the respective Federal financial regulatory agency’s
jurisdiction over the entity as if the agency action were taken under those
statutes.</text>
</subsection><subsection id="H5FBBE20A24E54719A8B541CB4A862759"><enum>(c)</enum><header>Agency notice to
council</header><text>A Federal financial regulatory agency shall, within 60
days of receiving a Council recommendation under this section, notify the
Council in writing regarding—</text>
<paragraph id="H5D96F32CB789471790046CB1C2637911"><enum>(1)</enum><text>the actions the
Federal financial regulatory agency has taken in response to the Council’s
recommendation, additional actions contemplated, and timetables therefore;
or</text>
</paragraph><paragraph id="HB28601A7A4804FBD88830A64EA8919FE"><enum>(2)</enum><text>the reason the
Federal financial regulatory agency has failed to respond to the Council’s
request.</text>
</paragraph></subsection></section><section id="HE8F3DEA00F0E4592923CD3A30B2F25E6"><enum>1103.</enum><header>Subjecting
financial companies to stricter prudential standards for financial stability
purposes</header>
<subsection id="H642C972A6F344846B16341C3CD4D3347"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Council shall, in
consultation with the Board and any other primary financial regulatory agency
that regulates the financial company or a subsidiary of such company, subject a
financial company to stricter prudential standards under this subtitle if the
Council determines that—</text>
<paragraph id="H8F7910066B5D4B9C8403064868425F1B"><enum>(1)</enum><text>material financial
distress at the company could pose a threat to financial stability or the
economy; or</text>
</paragraph><paragraph id="H1BB097614BC547F9B636E3B1392FC4DB"><enum>(2)</enum><text display-inline="yes-display-inline">the nature, scope, size, scale,
concentration, and interconnectedness, or mix of the company’s activities could
pose a threat to financial stability or the economy.</text>
</paragraph></subsection><subsection id="H48FA1C25D5E34FBFB34A23EC4051129B"><enum>(b)</enum><header>Criteria</header><text>In
making a determination under subsection (a), the Council shall consider the
following criteria:</text>
<paragraph id="H2E7C0FA474584F86BB24D32ADF7C4CD8"><enum>(1)</enum><text>The amount and
nature of the company’s financial assets.</text>
</paragraph><paragraph id="H424AE2177CFE440BBA7638131174FF3C"><enum>(2)</enum><text>The amount and
nature of the company’s liabilities, including the degree of reliance on
short-term funding.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HE5DFF52F264240EDAF7FFADA2D0AABB5"><enum>(3)</enum><text display-inline="yes-display-inline">The extent of the company’s
leverage.</text>
</paragraph><paragraph id="HA17DBBE6785F4B3E878D25A82E1FB369"><enum>(4)</enum><text>The extent and
nature of the company’s off-balance sheet exposures.</text>
</paragraph><paragraph id="H3D91C2540C9B4C5D950676BD97FF695C"><enum>(5)</enum><text>The extent and
nature of the company’s transactions and relationships with other financial
companies.</text>
</paragraph><paragraph id="H8878A6FA9FCB474A9FCF7ECFDF5A6CFD"><enum>(6)</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>
</paragraph><paragraph id="HF3C28FD941004FA3AA646D68C8F7F7CA"><enum>(7)</enum><text>The nature, scope,
and mix of the company’s activities.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H22F925ADC68D43CB9A41815BD8C3FEB2"><enum>(8)</enum><text display-inline="yes-display-inline">The degree to which the company is already
regulated by one or more Federal financial regulatory agencies.</text>
</paragraph><paragraph id="HAF3F3FAB5E434F479B37DCBCAAB97D92"><enum>(9)</enum><text>Any other factors
that the Council deems appropriate.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HC14F82F215B84A1F921D5F33935A7F98"><enum>(c)</enum><header>Notification of
decision</header><text display-inline="yes-display-inline">The Board, in an
executive capacity on behalf of the Council, shall immediately upon the
Council’s decision notify the financial company by order, which shall be
public, that the financial company is subject to stricter prudential standards,
as prescribed by the Board in accordance with section 1104.</text>
</subsection><subsection id="H41070A23C70742EF9D0D4426F04FAE31"><enum>(d)</enum><header>Periodic review
and rescission of findings</header>
<paragraph id="H950FF051EE0947D79C4634AE700692CE"><enum>(1)</enum><header>Submission of
assessment</header><text>The Board shall periodically submit a report to the
Council containing an assessment of whether each company subjected to stricter
prudential standards should continue to be subject to such standards.</text>
</paragraph><paragraph id="HC2DE746503C6473CA7A58DF992DBB5F9"><enum>(2)</enum><header>Review and
rescission</header><text>The Council shall—</text>
<subparagraph id="H8DDC086D6F134931A6238D6697313EAD"><enum>(A)</enum><text>review the
assessment submitted pursuant to paragraph (1) and any information or
recommendation submitted by members of the Council regarding whether a
financial holding company subject to stricter standards continues to merit
stricter prudential standards; and</text>
</subparagraph><subparagraph id="H7B95F8D0A67A4F259207FF79458C6810"><enum>(B)</enum><text display-inline="yes-display-inline">rescind the action subjecting a company to
stricter prudential standards if the Council determines that the company no
longer meets the conditions for being subjected to stricter prudential
standards in subsections (a) and (b).</text>
</subparagraph></paragraph></subsection><subsection id="H827DA38AD5BD40A8B45231FF0766D3FC"><enum>(e)</enum><header>Emergency
exception to majority vote of council requirement</header><text display-inline="yes-display-inline">If each of the Secretary of the Treasury,
the Board, and the Federal Deposit Insurance Corporation determines that a
financial company must be subjected to stricter prudential standards in
accordance with this section immediately to prevent destabilization of the
financial system or economy, the Secretary, the Board, and the Corporation may,
upon approval by the President, subject such company to stricter prudential
standards under this section.</text>
</subsection><subsection display-inline="no-display-inline" id="HF24063A2099E4D189EFFBE97847D9BD3"><enum>(f)</enum><header>Appeal</header>
<paragraph id="H65016CAB65EE410EAD920405DDAFE88A"><enum>(1)</enum><header>Administrative</header><text>The
Council and the Board, in an executive capacity on behalf of the Council, shall
establish a procedure through which a financial company that has been subjected
to stricter prudential standards in accordance with this section may appeal
being subjected to stricter prudential standards.</text>
</paragraph><paragraph id="HDEE1306BC60F43398E75D5D20BE0D5CB"><enum>(2)</enum><header>Judicial
review</header><text display-inline="yes-display-inline">Any financial company
which has been subjected to stricter prudential standards may seek judicial
review by filing a petition for such review in the United States Court of
Appeals for the District of Columbia.</text>
</paragraph></subsection><subsection id="H1CB21028B5894E9C9F7F7125AE1477ED"><enum>(g)</enum><header>Effect of
council decision</header>
<paragraph id="HA33B79744CBA4E2BA30146225D816BBE"><enum>(1)</enum><header>Application of
the bank holding company act</header><text display-inline="yes-display-inline">A financial company that is not a bank
holding company as defined in the Bank Holding Company Act at the time the
financial company is subjected to stricter prudential standards in accordance
with this section, shall—</text>
<subparagraph id="HCDEB51F3910C4D6ABE2159602AF99E69"><enum>(A)</enum><text display-inline="yes-display-inline">if such company conducts at the time such
company is subjected to stricter prudential standards in accordance with this
section only activities that are determined to be financial in nature or
incidental thereto under section 4(k) of the Bank Holding Company Act of 1956,
be treated as a bank holding company that has elected to be a financial holding
company for purposes of the Bank Holding Company Act of 1956, the Federal
Deposit Insurance Act, and all other Federal laws and regulations governing
bank holding companies and financial holding companies and be the financial
holding company subject to stricter standards for purposes of this subtitle;
or</text>
</subparagraph><subparagraph id="HF2ADD3EC56C843B4970C68ED14168B29"><enum>(B)</enum><text display-inline="yes-display-inline">if such company conducts at the time that
such company is subjected to stricter prudential standards in accordance with
this section 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, be required to establish and conduct all its activities that are
determined to be financial in nature or incidental thereto under section 4(k)
of the Bank Holding Company Act of 1956 in an intermediate holding company
established under section 6 of the Bank Holding Company Act of 1956, which
intermediate holding company shall be treated as a bank holding company that
has elected to be a financial holding company for purposes of the Bank Holding
Company Act of 1956, the Federal Deposit Insurance Act, and all other Federal
laws and regulations governing bank holding companies and financial holding
companies, and such section 6 holding company shall be a financial holding
company subject to stricter standards for purposes of this title.</text>
</subparagraph></paragraph><paragraph id="H1507276F39864928BC67B5C27FF9DBFA"><enum>(2)</enum><header>Exemptive
authority</header><text>Notwithstanding any provision of the Bank Holding
Company Act of 1956, the Board may, if it determines such action is necessary
to ensure appropriate stricter prudential supervision, issue such exemptions
from that Act as may be necessary with regard to financial holding companies
subject to stricter standards that do not control an insured depository
institution.</text>
</paragraph><paragraph id="HC751A79499314C1588E814731D0FF91B"><enum>(3)</enum><header>Leverage
limitation</header><text display-inline="yes-display-inline">The Board shall
require each financial holding company subject to stricter standards to
maintain a debt to equity ratio of no more than 15 to 1, and the Board shall
issue regulations containing procedures and timelines for how a financial
holding company subject to stricter standards with a debt to equity ratio of
more than 15 to 1 at the time such company becomes a financial holding company
subject to stricter standards shall reduce such ratio.</text>
</paragraph></subsection></section><section id="H2312269A4DFB415C9E9FA16502074FD5"><enum>1104.</enum><header>Stricter
prudential standards for certain financial holding companies for financial
stability purposes</header>
<subsection id="H158B6D40A1A347F7A4B1EFAD09311FBD"><enum>(a)</enum><header>Stricter
prudential standards</header>
<paragraph id="H51E9876D0DB641A8AF254CBDC4116118"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">To mitigate risks to
financial stability and the economy posed by a financial holding company that
has been subjected to stricter prudential standards in accordance with section
1103, the Board shall impose stricter prudential standards on such company.
Such standards shall be designed to maximize financial stability taking costs
to long-term financial and economic growth into account, be heightened when
compared to the standards that otherwise would apply to financial holding
companies that are not subjected to stricter prudential standards pursuant to
this subtitle (including by addressing additional or different types of risks
than otherwise applicable standards), and reflect the potential risk posed to
financial stability by the financial holding company subject to stricter
standards.</text>
</paragraph><paragraph id="HA8D71AFC4FEA4225B599732066C57655"><enum>(2)</enum><header>Standards</header>
<subparagraph id="H7BB0786C73F148C5951D020EBDC9BB80"><enum>(A)</enum><header>Required
standards</header><text>The heightened standards imposed by the Board under
this section shall include—</text>
<clause id="H6A908671E5744368899EEB4F8D3AC899"><enum>(i)</enum><text>risk-based capital
requirements;</text>
</clause><clause id="H44830EC1829F432589B88C09935D9457"><enum>(ii)</enum><text>leverage
limits;</text>
</clause><clause id="H2735301EF90C4947A048795A2230B833"><enum>(iii)</enum><text>liquidity
requirements;</text>
</clause><clause id="HDEF4B59C48C44DD8A76D619483F971D1"><enum>(iv)</enum><text>concentration
requirements (as specified in subsection (c));</text>
</clause><clause id="H8F7AA6280415459D878C2AF4FCC175F2"><enum>(v)</enum><text>prompt corrective
action requirements (as specified in subsection (e));</text>
</clause><clause id="H3486ADBA2CD8458DB6171BCCA75A85F0"><enum>(vi)</enum><text>resolution plan
requirements (as specified in subsection (f));</text>
</clause><clause id="H4A246843774143179ABDDC912A5EC7CB"><enum>(vii)</enum><text>overall risk
management requirements; and</text>
</clause><clause id="HAEC8B89DF2F747ED887EDBD09222EDA3"><enum>(viii)</enum><text display-inline="yes-display-inline">and may establish short-term debt limits in
accordance with subsection (d).</text>
</clause></subparagraph><subparagraph id="H1E3CE7B22D594332B7C272594EA69E75"><enum>(B)</enum><header>Additional
standards</header><text>The heightened standards imposed by the Board under
this section also may include any other prudential standards that the Board
deems advisable, including taking actions to mitigate systemic risk.</text>
</subparagraph><subparagraph id="H721F51D5C3E841C9BF56929AF4A0AF58"><enum>(C)</enum><header>Consultation
with Federal financial regulatory agencies</header><text display-inline="yes-display-inline">The Board, in developing stricter
prudential standards under this subsection, shall consult with other Federal
financial regulatory agencies with respect to any standard that is likely to
have a significant impact on a functionally regulated subsidiary, or a
subsidiary depository institution, of a financial holding company that is
subject to stricter prudential standards under this title.</text>
</subparagraph></paragraph><paragraph id="H3147186A51B44A2D8DA26B41F1B55CD1"><enum>(3)</enum><header>Application of
required standards</header><text>In imposing prudential standards under this
subsection, the Board may differentiate among financial holding companies
subject to stricter standards on an individual basis or by category, taking
into consideration their capital structure, risk, complexity, financial
activities, the financial activities of their subsidiaries, and any other
factors that the Board deems appropriate.</text>
</paragraph><paragraph id="HD74B70EE387547C89B62D6394200CF5B"><enum>(4)</enum><header>Well capitalized
and well managed</header><text display-inline="yes-display-inline">A financial
holding company subject to stricter standards shall at all times after it is
subject to such standards be well capitalized and well managed as defined by
the Board.</text>
</paragraph><paragraph id="HC3F4C491B8ED4DCFB59504077B682BCF"><enum>(5)</enum><header>Application to
foreign financial companies</header><text display-inline="yes-display-inline">The Board shall prescribe regulations
regarding the application of stricter prudential standards to financial
companies that are organized or incorporated in a country other than the United
States, and that own or control a Federal or State branch, subsidiary, or
operating entity that is a financial holding company subject to stricter
standards, giving due regard to the principle of national treatment and
equality of competitive opportunity and taking into account the extent to which
such companies are subject to home country standards comparable to those
applied to financial holding companies in the United States.</text>
</paragraph><paragraph id="HF0DF8A1E3733480FAB257BD6017D4729"><enum>(6)</enum><header>Inclusion of off
balance sheet activities in computing capital requirements</header>
<subparagraph id="H1EDD9646983F4891BF12C011D701CA13"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
financial holding company subject to stricter standards, the computation of
capital requirements shall take into account off balance sheet activities for
such a company.</text>
</subparagraph><subparagraph id="HAEA3103498D64FA798D9CF138C23219B"><enum>(B)</enum><header>Exemption</header><text display-inline="yes-display-inline">If the Board determines that an exemption
from the requirements under subparagraph (A) is appropriate, the Board may
exempt a financial holding company subject to stricter standards from the
requirements under subparagraph (A) or any transaction or transactions engaged
in by such a company.</text>
</subparagraph><subparagraph id="H313E0A94543543C4BEE4CE6D4E605B45"><enum>(C)</enum><header>Off balance
sheet activities defined</header><text display-inline="yes-display-inline">For
purposes of this paragraph, the term <quote>off balance sheet
activities</quote> means a liability 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 they may create a liability:</text>
<clause id="HC02128F97F70425081223A86D647DED9"><enum>(i)</enum><text>Direct credit
substitutes in which a bank substitutes its own credit for a third party,
including standby letters of credit.</text>
</clause><clause id="HECE74AFD08E341E38F266A216528665A"><enum>(ii)</enum><text>Irrevocable
letters of credit that guarantee repayment of commercial paper or tax-exempt
securities.</text>
</clause><clause id="H54952965EFDD415AA7F7C85BB08212CC"><enum>(iii)</enum><text>Risk
participation in bankers’ acceptances.</text>
</clause><clause id="HAA32427B0007450EA53510E128FCC48F"><enum>(iv)</enum><text>Sale and
repurchase agreements.</text>
</clause><clause id="HD91E8B90B803435396D8E47F56D5F39C"><enum>(v)</enum><text>Asset sales with
recourse against the seller.</text>
</clause><clause id="HA5414250787445CAADBE8A7BD663DA28"><enum>(vi)</enum><text>Interest rate
swaps.</text>
</clause><clause id="H3E1F8BDA232641129FB77B9D1657E3A0"><enum>(vii)</enum><text>Credit
swaps.</text>
</clause><clause id="HD526E46AF5DB4A3EA311C2D9154E0746"><enum>(viii)</enum><text>Commodity
contracts.</text>
</clause><clause id="H712537E2099E46EA8E0E444FE1042F27"><enum>(ix)</enum><text>Forward
contracts.</text>
</clause><clause id="HA6872B280682407AB6EDA81AF770BAA4"><enum>(x)</enum><text>Securities
contracts.</text>
</clause><clause id="H33382708462E4879BC4E89B4014F6018"><enum>(xi)</enum><text display-inline="yes-display-inline">Such other activities or transactions as
the Board may, by rule, define.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HCD4B62CF678C4B7BAC6BC08E4C8F1A26"><enum>(b)</enum><header>Prudential
standards at functionally regulated subsidiaries and subsidiary depository
institutions</header>
<paragraph id="H07E95985C02647AFBAFF901612C7B0F0"><enum>(1)</enum><header>Board authority
to recommend standards</header><text>With respect to a functionally regulated
subsidiary (as such term is defined in section 5 of the Bank Holding Company
Act) or a subsidiary depository institution of a financial holding company
subject to stricter standards, the Board may recommend that the relevant
Federal financial regulatory agency for such functionally regulated subsidiary
or subsidiary depository institution prescribe stricter prudential standards on
such functionally regulated subsidiary or subsidiary depository institution.
Any standards recommended by the Board under this section shall be of the same
type as those described in subsection (a)(2) that the Board is required or
authorized to impose directly on the financial holding company subject to
stricter standards.</text>
</paragraph><paragraph id="HCA21198C8FB94D4BAECCEAF796868F2A"><enum>(2)</enum><header>Agency authority
to implement heightened standards and safeguards</header><text>Each Federal
financial regulatory agency that receives a Board recommendation under
paragraph (1) is authorized to impose, require reports regarding, examine for
compliance with, and enforce standards under this subsection with respect to
the entities such agency regulates, as such entities are described in section
1006(b)(6). This authority is in addition to and does not limit any other
authority of the Federal financial regulatory agencies. Compliance by an entity
with actions taken by a Federal financial regulatory agency under this section
shall be enforceable in accordance with the statutes governing the respective
agency’s jurisdiction over the entity as if the agency action were taken under
those statutes.</text>
</paragraph><paragraph id="H28744792A6F843839228AF743F15D052"><enum>(3)</enum><header>Imposition of
standards</header><text>Standards imposed by a Federal financial regulatory
agency under this subsection shall be the standards recommended by the Board in
accordance with paragraph (1) or any other similar standards that the Board
deems acceptable after consultation between the Board and the primary financial
regulatory agency.</text>
</paragraph><paragraph id="H2F8C39C2BA934A9482B9FDC7AF5B09AA"><enum>(4)</enum><header>Federal
financial regulatory agency response; notice to council and board</header><text display-inline="yes-display-inline">A Federal financial regulatory agency shall
notify the Council and the Board in writing on whether and to what extent the
agency has imposed the stricter prudential standards described in paragraph (3)
within 60 days of the Board’s recommendation under paragraph (1). A Federal
financial regulatory agency that fails to impose such standards shall provide
specific justification for such failure to act in the written notice from the
agency to the Council and Board.</text>
</paragraph></subsection><subsection id="H18065570B10B4A24BC2F365E6606010D"><enum>(c)</enum><header>Concentration
limits for financial holding companies subject to stricter standards</header>
<paragraph id="H5CCF27D393504933BAA6E596C74A8F14"><enum>(1)</enum><header>Standards</header><text>In
order to limit the risks that the failure of any company could pose to a
financial holding company subject to stricter standards and to the stability of
the United States financial system, the Board, by regulation, shall prescribe
standards that limit the risks posed by the exposure of a financial holding
company subject to stricter standards to any other company.</text>
</paragraph><paragraph id="HF9909C2AEF5E4CAB871077897F7F0BD7"><enum>(2)</enum><header>Limitation on
credit exposure</header><text display-inline="yes-display-inline">The
regulations prescribed by the Board shall prohibit each financial holding
company subject to stricter standards from having credit exposure to any
unaffiliated company that exceeds 25 percent of capital stock and surplus of
the financial holding company subject to stricter standards, or such lower
amount as the Board may determine by regulation to be necessary to mitigate
risks to financial stability.</text>
</paragraph><paragraph id="H830241C07D134A6D816A004075A87E11"><enum>(3)</enum><header>Credit
exposure</header><text display-inline="yes-display-inline">For purposes of this
subsection and with respect to a financial holding company subject to stricter
standards, the term <quote>credit exposure</quote> to a company means—</text>
<subparagraph id="HA40AA28A5E044AEB9387C4AFB0E297C3"><enum>(A)</enum><text>all extensions of
credit to the company, including loans, deposits, and lines of credit;</text>
</subparagraph><subparagraph id="HD5A48B5E6C0049BDA4E9A6E9FC5711C7"><enum>(B)</enum><text>all repurchase
agreements and reverse repurchase agreement with the company;</text>
</subparagraph><subparagraph id="H09C26D7AF58443A587056BB008839C62"><enum>(C)</enum><text>all securities
borrowing and lending transactions with the company to the extent that such
transactions create credit exposure of the financial holding company subject to
stricter standards to the company;</text>
</subparagraph><subparagraph id="H7F6F66A41A0A43619E266D8E18C3AAD3"><enum>(D)</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="H5C8A4DAB1FBB4A90AAE1C2CDC623DA98"><enum>(E)</enum><text>all purchases of
or investment in securities issued by the company;</text>
</subparagraph><subparagraph id="HB242B7A96D3249ADAE1122485F68DD46"><enum>(F)</enum><text>counterparty
credit exposure to the company in connection with a derivative transaction
between the financial holding company subject to stricter standards and the
company; and</text>
</subparagraph><subparagraph id="H7F7FD4CEA0134D2EAFC38D02CCE25B12"><enum>(G)</enum><text>any other similar
transactions that the Board by regulation determines to be a credit exposure
for purposes of this section.</text>
</subparagraph></paragraph><paragraph id="HDF739B0D859C4365B6891199199DF896"><enum>(4)</enum><header>Attribution
rule</header><text>For purposes of this subsection, any transaction by a
financial holding company subject to stricter standards with any person is
deemed 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="H96154BB6BFF440A0ACC762BA06E2BFB9"><enum>(5)</enum><header>Rulemaking</header><text>The
Board may issue such regulations and orders, including definitions consistent
with this subsection, as may be necessary to administer and carry out the
purpose of this subsection.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HE4154A1A166D416BBDD4B7556AF4F743"><enum>(6)</enum><header>Exemptions</header>
<subparagraph id="HD11109B64EC34CEA8C1D2354D7075C27"><enum>(A)</enum><header>In
general</header>
<clause id="H37719A5310C3460D9BB27AC75EC5BAF1"><enum>(i)</enum><header>Federal home
loan banks</header><text display-inline="yes-display-inline">This subsection
shall not apply to any Federal home loan bank, but Federal home loan banks are
not exempt from any other provision of this title.</text>
</clause><clause id="H6E0B2AB6C53841CE8B05D587E5CB37C7"><enum>(ii)</enum><header>Applicability
to other entities</header><text display-inline="yes-display-inline">The Federal
National Mortgage Association and the Federal Home Loan Mortgage Corporation
are not exempt from any provision of this title.</text>
</clause></subparagraph><subparagraph id="H908E4C69D44D4DE69F41C437BFB38A5C"><enum>(B)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Board may, by regulation or order,
exempt transactions, in whole or in part, from the definition of credit
exposure if it finds that the exemption is in the public interest and
consistent with the purpose of this subsection.</text>
</subparagraph></paragraph><paragraph id="HC8F05E1C61244757B5A9F9C26B966C4A"><enum>(7)</enum><header>Transition
period</header><text>This subsection and any regulations and orders of the
Board under the authority of this subsection shall not take effect until the
date that is 3 years from the date of the enactment of this subsection. The
Board may extend the effective date for up to 2 additional years to promote
financial stability.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H6D21C432044043F4BD36B0B48AA7D226"><enum>(d)</enum><header>Short-term debt
limits for certain financial holding companies</header>
<paragraph id="H13873CA47A9E4DFBA6A1D27EC2327092"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In order to limit the
risks that an overaccumulation of short-term debt could pose to financial
holding companies and to the stability of the United States financial system,
the Board shall by regulation prescribe a limit on the amount of short-term
debt, including off-balance sheet exposures, that may be accumulated by any
financial holding company subject to stricter standards for purposes of this
title.</text>
</paragraph><paragraph id="HD6D74EE057664D1398D10BC042850DDE"><enum>(2)</enum><header>Basis of
limit</header><text>The limit prescribed under paragraph (1) shall be based on
a financial holding company’s short-term debt as a percentage of its capital
stock and surplus or on such other measure as the Board considers
appropriate.</text>
</paragraph><paragraph id="H0516DD19ACE547C6A6399CADB3A2076D"><enum>(3)</enum><header>Short-term debt
defined</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <quote>short-term debt</quote> means such liabilities with
short-dated maturity that the Board identifies by regulation, except that such
term does not include insured deposits.</text>
</paragraph><paragraph commented="no" id="HFF1F52718B554CB2AE342916A6AA397D"><enum>(4)</enum><header>Rulemaking
authority</header><text display-inline="yes-display-inline">In addition to
prescribing regulations under paragraphs (1) and (3), the Board 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="H65D91C5BD8994FCB9F573310B1280A4A"><enum>(5)</enum><header>Authority to
issue exemptions and adjustments</header><text display-inline="yes-display-inline">Notwithstanding the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.), the Board may, if it determines such
action is necessary to ensure appropriate heightened prudential supervision,
with respect to a financial holding company 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><paragraph id="H8E5BFBB795C5472CA20266E23C188F95"><enum>(6)</enum><header>Transition
period</header><text display-inline="yes-display-inline">This subsection and
any regulation or order of the Board under this subsection shall take effect 3
years after the date of the enactment of this title. The Board may postpone the
date when this subsection takes effect by not more than 2 years in order to
promote financial stability.</text>
</paragraph></subsection><subsection id="H41642520BBB745F49E4A5D4A52EE1BE0"><enum>(e)</enum><header>Prompt
corrective action for financial holding companies subject to stricter
standards</header>
<paragraph id="H4DFB88B2CB3B45019D8648F5894D163D"><enum>(1)</enum><header>Prompt
corrective action required</header><text display-inline="yes-display-inline">The Board shall take prompt corrective
action to resolve the problems of financial holding companies subject to
stricter standards. Except as specifically provided otherwise, this subsection
shall apply only to financial holding companies that are incorporated or
organized under United States laws.</text>
</paragraph><paragraph id="H1ECDBC3DE05948D8B54C08F128F84654"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<subparagraph id="H63E11EDD4D9847789E57E8DA6E33812E"><enum>(A)</enum><header>Capital
categories</header>
<clause id="H6E6ED558846A4FF883EC3AEC4A33425C"><enum>(i)</enum><header>Well
capitalized</header><text display-inline="yes-display-inline">A financial
holding company subject to stricter standards is <quote>well
capitalized</quote> if it exceeds the required minimum level for each relevant
capital measure.</text>
</clause><clause id="HC85C1D05102B4E99971AD17005EF114A"><enum>(ii)</enum><header>Undercapitalized</header><text display-inline="yes-display-inline">A financial holding company subject to
stricter standards is <quote>undercapitalized</quote> if it fails to meet the
required minimum level for any relevant capital measure.</text>
</clause><clause id="H92835A4C4331471D9BD3CC2DA5453CBC"><enum>(iii)</enum><header>Significantly
undercapitalized</header><text display-inline="yes-display-inline">A financial
holding company subject to stricter standards is <quote>significantly
undercapitalized</quote> if it is significantly below the required minimum
level for any relevant capital measure.</text>
</clause><clause id="HAD860FC87614465898D2ED062ACB5BF9"><enum>(iv)</enum><header>Critically
undercapitalized</header><text display-inline="yes-display-inline">A financial
holding company subject to stricter standards is <quote>critically
undercapitalized</quote> if it fails to meet any level specified in paragraph
(4)(C)(i).</text>
</clause></subparagraph></paragraph><paragraph id="H7B0B378ADE494313AE6138FDE9D6A830"><enum>(3)</enum><header>Other
definitions</header>
<subparagraph id="H7BD21B4DE09941BAB433080686BBAE4C"><enum>(A)</enum><header>Average</header><text>The
<quote>average</quote> of an accounting item (such as total assets or tangible
equity) during a given period means the sum of that item at the close of
business on each business day during that period divided by the total number of
business days in that period.</text>
</subparagraph><subparagraph id="H4F3D561DFCD140DAB15A34A02A7CE3C0"><enum>(B)</enum><header>Capital
distribution</header><text>The term <term>capital distribution</term>
means—</text>
<clause id="HDF2A99CD84EF47F48EA02F8EDDB1917B"><enum>(i)</enum><text>a
distribution of cash or other property by a financial holding company subject
to stricter standards to its owners made on account of that ownership, but not
including any dividend consisting only of shares of the financial holding
company subject to stricter standards or rights to purchase such shares;</text>
</clause><clause id="HE463D3CE39364C9A9C8FC9DD9B653434"><enum>(ii)</enum><text>a
payment by a financial holding company subject to stricter standards to
repurchase, redeem, retire, or otherwise acquire any of its shares or other
ownership interests, including any extension of credit to finance any person’s
acquisition of those shares or interests; and</text>
</clause><clause id="H915BC4233A094B88AA6BD01D38173536"><enum>(iii)</enum><text>a
transaction that the Board determines, by order or regulation, to be in
substance a distribution of capital to the owners of the financial holding
company subject to stricter standards.</text>
</clause></subparagraph><subparagraph id="H6ED2505E3C2349B390CDE80C7F87F724"><enum>(C)</enum><header>Capital
restoration plan</header><text>The term <term>capital restoration plan</term>
means a plan submitted under paragraph (6)(B).</text>
</subparagraph><subparagraph id="H1F6C4CBDAEE947A79360133F7ED20B76"><enum>(D)</enum><header>Compensation</header><text>The
term <term>compensation</term> includes any payment of money or provision of
any other thing of value in consideration of employment.</text>
</subparagraph><subparagraph id="H5DD7F6C228D14AFB8EE5716AEA5978C0"><enum>(E)</enum><header>Relevant capital
measure</header><text>The term <term>relevant capital measure</term> means the
measures described in paragraph (4).</text>
</subparagraph><subparagraph id="HFFBC60E23B234C81A278E8A19312EA48"><enum>(F)</enum><header>Required minimum
level</header><text>The term <term>required minimum level</term> means, with
respect to each relevant capital measure, the minimum acceptable capital level
specified by the Board by regulation.</text>
</subparagraph><subparagraph id="H449333F3AD6C43128E9388124B061A9C"><enum>(G)</enum><header>Senior executive
officer</header><text>The term <term>senior executive officer</term> has the
same meaning as the term <term>executive officer</term> in section 22(h) of the
Federal Reserve Act (12 U.S.C. 375b).</text>
</subparagraph></paragraph><paragraph id="H3E63D90A365642B29A6E1C206CEB7030"><enum>(4)</enum><header>Capital
standards</header>
<subparagraph id="H7A3783EB8D20476FA0D61E681DAF8A37"><enum>(A)</enum><header>Relevant capital
measures</header>
<clause id="H3AB5EBFEA74A47AD81C49B9CF46448DE"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii)(II), the capital
standards prescribed by the Board under section 1104(a)(2) shall
include—</text>
<subclause id="H8CF189B3FDCE479FB4C2091B18B1D042"><enum>(I)</enum><text>a
leverage limit; and</text>
</subclause><subclause id="H5F58B1A598D44553BB49A1366E4BF4C4"><enum>(II)</enum><text>a risk-based
capital requirement.</text>
</subclause></clause><clause id="HB4E6EFC78EDD4AFDA69F3A65B5ADB91E"><enum>(ii)</enum><header>Other capital
measures</header><text>The Board may by regulation—</text>
<subclause id="H2710BCE8D9C6498B944AE2FDC4905B19"><enum>(I)</enum><text>establish any
additional relevant capital measures to carry out this section; or</text>
</subclause><subclause id="HABF533DDAA7F4B7DAF43A4CCB8179C15"><enum>(II)</enum><text>rescind any
relevant capital measure required under clause (i) upon determining that the
measure is no longer an appropriate means for carrying out this section.</text>
</subclause></clause></subparagraph><subparagraph id="H62D989BEC02944ADA5F540AE9AA66143"><enum>(B)</enum><header>Capital
categories generally</header><text>The Board shall, by regulation, specify for
each relevant capital measure the levels at which a financial holding company
subject to stricter standards is well capitalized, undercapitalized, and
significantly undercapitalized.</text>
</subparagraph><subparagraph id="H69A3D22F0BEC435E9FE1C0617E224E54"><enum>(C)</enum><header>Critical
capital</header>
<clause id="HC26D0F815DE5448EBA31196A13A4F7B9"><enum>(i)</enum><header>Board to specify
level</header>
<subclause id="HC70D19BDDEEB4D68A061FAA5233A537B"><enum>(I)</enum><header>Leverage
limit</header><text>The Board shall, by regulation, specify the ratio of
tangible equity to total assets at which a financial holding company subject to
stricter standards is critically undercapitalized.</text>
</subclause><subclause id="H39C5A81023E84B9B833E9A663D2CA323"><enum>(II)</enum><header>Other relevant
capital measures</header><text>The Board may, by regulation, specify for 1 or
more other relevant capital measures, the level at which a financial holding
company subject to stricter standards is critically undercapitalized.</text>
</subclause></clause><clause id="H89C819F856F9410BA8FE9C23EC4D4832"><enum>(ii)</enum><header>Leverage limit
range</header><text>The level specified under clause (i)(I) shall require
tangible equity in an amount—</text>
<subclause id="H86FC09685AB9485291388D8E1AA13965"><enum>(I)</enum><text>not less than 2
percent of total assets; and</text>
</subclause><subclause id="H46019263B0044D37B4F981BDB4CEB9A4"><enum>(II)</enum><text>except as
provided in subclause (I), not more than 65 percent of the required minimum
level of capital under the leverage limit.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H8E66B50AC1BE44C4A1846E829BA73BBE"><enum>(5)</enum><header>Capital
distributions restricted</header>
<subparagraph id="H8F7FAA56D2734FD5A6977979BFC8724E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A financial holding
company subject to stricter standards shall make no capital distribution if,
after making the distribution, the financial holding company subject to
stricter standards would be undercapitalized.</text>
</subparagraph><subparagraph id="H4849ECD91E36431081B41D9350BFD512"><enum>(B)</enum><header>Exception</header><text>Notwithstanding
subparagraph (A), the Board may permit a financial holding company subject to
stricter standards to repurchase, redeem, retire, or otherwise acquire shares
or ownership interests if the repurchase, redemption, retirement, or other
acquisition—</text>
<clause id="H01C763FF04D04E3A88A4AADCB87D0BE5"><enum>(i)</enum><text>is
made in connection with the issuance of additional shares or obligations of the
financial holding company subject to stricter standards in at least an
equivalent amount; and</text>
</clause><clause id="H3D8CD76223654579BE2F72803B41DB09"><enum>(ii)</enum><text display-inline="yes-display-inline">will reduce the financial obligations of
the financial holding company subject to stricter standards or otherwise
improve the financial condition of the financial holding company subject to
stricter standards.</text>
</clause></subparagraph></paragraph><paragraph id="HA5BD23E8CAB54B5B82B9E3DF43480A8A"><enum>(6)</enum><header>Provisions
applicable to undercapitalized financial holding company subject to stricter
standards</header>
<subparagraph id="H4C8D673B9CB94D14A20589A0D26528D1"><enum>(A)</enum><header>Monitoring
required</header><text>The Board shall—</text>
<clause id="H5BB5495BEF9343AAAB74723C35259497"><enum>(i)</enum><text display-inline="yes-display-inline">closely monitor the condition of any
undercapitalized financial holding company subject to stricter
standards;</text>
</clause><clause id="HE226387BA4DF41C7B768D5C1B3BF9601"><enum>(ii)</enum><text display-inline="yes-display-inline">closely monitor compliance by any
undercapitalized financial holding company subject to stricter standards with
capital restoration plans, restrictions, and requirements imposed under this
section; and</text>
</clause><clause id="H65822324F6D2470EAAD3C779BE64D27F"><enum>(iii)</enum><text display-inline="yes-display-inline">periodically review the plan, restrictions,
and requirements applicable to any undercapitalized financial holding company
subject to stricter standards to determine whether the plan, restrictions, and
requirements are effective.</text>
</clause></subparagraph><subparagraph id="H816BE421103A4F2388760E9684522E2A"><enum>(B)</enum><header>Capital
restoration plan required</header>
<clause id="HB2B2F804C07F46FE87D86DAC7D730B53"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Any undercapitalized
financial holding company subject to stricter standards shall submit an
acceptable capital restoration plan to the Board within the time allowed by the
Board under clause (iv).</text>
</clause><clause id="H2FCDFE0E89664C8381A8C8C11491FB7D"><enum>(ii)</enum><header>Contents of
plan</header><text>The capital restoration plan shall—</text>
<subclause id="H15C32E4EE6334FC1A8B8269F83AF4A80"><enum>(I)</enum><text>specify—</text>
<item id="H14D7D25A46F94E71A8A871D91A957396"><enum>(aa)</enum><text>the
steps the financial holding company subject to stricter standards will take to
become well capitalized;</text>
</item><item id="H05E28968517544C0A8795F250E176DF7"><enum>(bb)</enum><text>the
levels of capital to be attained by the financial holding company subject to
stricter standards during each year in which the plan will be in effect;</text>
</item><item id="HE283DFE6CB0C405F991AB7B511704861"><enum>(cc)</enum><text>how
the financial holding company subject to stricter standards will comply with
the restrictions or requirements then in effect under this section; and</text>
</item><item id="HF5007D5443D14EE7BF902EC0465E2A69"><enum>(dd)</enum><text>the
types and levels of activities in which the financial holding company subject
to stricter standards will engage; and</text>
</item></subclause><subclause id="H6FF6647066014FED93E9EDEA92CCD2BD"><enum>(II)</enum><text>contain such
other information that the Board may require.</text>
</subclause></clause><clause id="HD35B298774464F94BFAE58D10E44C84E"><enum>(iii)</enum><header>Criteria for
accepting plan</header><text>The Board shall not accept a capital restoration
plan unless it determines that the plan—</text>
<subclause id="H31A529521A8B4E239A8FF55B1B787127"><enum>(I)</enum><text>complies with
clause (ii);</text>
</subclause><subclause id="H0E4B9C8484A142C6816C29E75B8E6000"><enum>(II)</enum><text display-inline="yes-display-inline">is based on realistic assumptions, and is
likely to succeed in restoring the capital of the financial holding company
subject to stricter standards; and</text>
</subclause><subclause id="HAFA291872DCF4E5F88A64417EB18A974"><enum>(III)</enum><text>would not
appreciably increase the risk (including credit risk, interest-rate risk, and
other types of risk) to which the financial holding company subject to stricter
standards is exposed.</text>
</subclause></clause><clause id="H62D013FF820E490A894FA9A6E429761E"><enum>(iv)</enum><header>Deadlines for
submission and review of plans</header><text>The Board shall, by regulation,
establish deadlines that—</text>
<subclause id="H0862EA6AD26246E9818DB239526C67DA"><enum>(I)</enum><text>provide financial
holding companies subject to stricter standards with reasonable time to submit
capital restoration plans, and generally require a financial holding company
subject to stricter standards to submit a plan not later than 45 days after it
becomes undercapitalized; and</text>
</subclause><subclause id="H2F6D04CE495642928106E051F77620E8"><enum>(II)</enum><text>require the Board
to act on capital restoration plans expeditiously, and generally not later than
60 days after the plan is submitted.</text>
</subclause></clause></subparagraph><subparagraph id="H8283FF5EB9F54E43A6E3905016C55BE7"><enum>(C)</enum><header>Asset growth
restricted</header><text display-inline="yes-display-inline">An
undercapitalized financial holding company subject to stricter standards shall
not permit its average total assets during any calendar quarter to exceed its
average total assets during the preceding calendar quarter unless—</text>
<clause id="HF437A8DC02F140899921B4E616AFE2D4"><enum>(i)</enum><text display-inline="yes-display-inline">the Board has accepted the capital
restoration plan of the financial holding company subject to stricter
standards;</text>
</clause><clause id="HBF03634B1C0A4D59A63F5C3792549890"><enum>(ii)</enum><text>any
increase in total assets is consistent with the plan; and</text>
</clause><clause id="H463F13DE6D6B4D0CA957FB6BBA79472F"><enum>(iii)</enum><text display-inline="yes-display-inline">the ratio of tangible equity to total
assets of the financial holding company subject to stricter standards increases
during the calendar quarter at a rate sufficient to enable it to become well
capitalized within a reasonable time.</text>
</clause></subparagraph><subparagraph id="HE31C82C04017431F893EA0A5768AC49C"><enum>(D)</enum><header>Prior approval
required for acquisitions and new lines of business</header><text display-inline="yes-display-inline">An undercapitalized financial holding
company subject to stricter standards shall not, directly or indirectly,
acquire any interest in any company or insured depository institution, or
engage in any new line of business, unless—</text>
<clause id="H04528EC1D106487AAB95712B5A8D25C9"><enum>(i)</enum><text display-inline="yes-display-inline">the Board has accepted the capital
restoration plan of the financial holding company subject to stricter
standards, the financial holding company subject to stricter standards is
implementing the plan, and the Board determines that the proposed action is
consistent with and will further the achievement of the plan;</text>
</clause><clause id="HEBEE09DE21304C9C83F86A79A3EE2D40"><enum>(ii)</enum><text>the
Board determines that the specific proposed action is appropriate; or</text>
</clause><clause id="H8578D7034F824B9D9726855C0A2BEA6A"><enum>(iii)</enum><text>the Board has
exempted the financial holding company subject to stricter standards from the
requirements of this paragraph with respect to the class of acquisitions that
includes the proposed action.</text>
</clause></subparagraph><subparagraph id="HE9613E814A7E47D4BEB3B6D0F8088D09"><enum>(E)</enum><header>Discretionary
safeguards</header><text display-inline="yes-display-inline">The Board may,
with respect to any undercapitalized financial holding company subject to
stricter standards, take actions described in any clause of paragraph (7)(B) if
the Board determines that those actions are necessary.</text>
</subparagraph></paragraph><paragraph id="H5A0AA7672D794899AA4046359C511E3C"><enum>(7)</enum><header>Provisions
applicable to significantly undercapitalized financial holding companies
subject to stricter standards and undercapitalized financial holding companies
subject to stricter standards that fail to submit and implement capital
restoration plans</header>
<subparagraph id="H2FBC6E7A6B364092A6E03334347904D6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">This paragraph shall
apply with respect to any financial holding company subject to stricter
standards that—</text>
<clause id="HCED8F721DA4043C295999294CE29F0D8"><enum>(i)</enum><text>is
significantly undercapitalized; or</text>
</clause><clause id="H70B2983995AA48B7BA640264553F85E3"><enum>(ii)</enum><text>is
undercapitalized and—</text>
<subclause id="HBEAE686BDBD54B64AE624B937B784D45"><enum>(I)</enum><text>fails to submit an
acceptable capital restoration plan within the time allowed by the Board under
paragraph (6)(B)(iv); or</text>
</subclause><subclause id="H6DF453318B254572BC7C49E6B05407C5"><enum>(II)</enum><text>fails in any
material respect to implement a capital restoration plan accepted by the
Board.</text>
</subclause></clause></subparagraph><subparagraph id="H0EAB84769AEA40CA9EA836660E668C28"><enum>(B)</enum><header>Specific actions
authorized</header><text>The Board shall carry out this paragraph by taking 1
or more of the following actions—</text>
<clause id="H77BED62C51B54263B414EEE17661C1FB"><enum>(i)</enum><header>Requiring
recapitalization</header><text>Doing one or more of the following:</text>
<subclause id="HBF0B4408E0764130B8AC470888351CEC"><enum>(I)</enum><text>Requiring the
financial holding company subject to stricter standards to sell enough shares
or obligations of the financial holding company subject to stricter standards
so that the financial holding company subject to stricter standards will be
well capitalized after the sale.</text>
</subclause><subclause id="HC6BB1A3A6A4F48E08DF3AA7F862AF014"><enum>(II)</enum><text>Further requiring
that instruments sold under subclause (I) be voting shares.</text>
</subclause><subclause id="HA8C08D9FDFD84E8E9F518638AE0173AA"><enum>(III)</enum><text>Requiring the
financial holding company subject to stricter standards to be acquired by or
combine with another company.</text>
</subclause></clause><clause id="HE9F2BF463FBA44D5A5C9483E3AE6F873"><enum>(ii)</enum><header>Restricting
transactions with affiliates</header>
<subclause id="H0BB9C939492E465CB3CB1363D8ED535D"><enum>(I)</enum><text>Requiring the
financial holding company subject to stricter standards to comply with section
23A of the Federal Reserve Act (12 U.S.C. 371c), as if it were a member
bank.</text>
</subclause><subclause id="H8C83BA22015F49DC80EA8C3D5C1E8932"><enum>(II)</enum><text display-inline="yes-display-inline">Further restricting the transactions of the
financial holding company subject to stricter standards with affiliates and
insiders.</text>
</subclause></clause><clause id="H6850211061FD4D90ADED4EDAC42D817E"><enum>(iii)</enum><header>Restricting
asset growth</header><text display-inline="yes-display-inline">Restricting the
asset growth of the financial holding company subject to stricter standards
more stringently than paragraph (6)(C), or requiring the financial holding
company subject to stricter standards to reduce its total assets.</text>
</clause><clause id="H465CA60229654CBFB0DD3C3F4E8D8203"><enum>(iv)</enum><header>Restricting
activities</header><text>Requiring the financial holding company subject to
stricter standards or any of its subsidiaries to alter, reduce, or terminate
any activity that the Board determines poses excessive risk to the financial
holding company subject to stricter standards.</text>
</clause><clause id="H049662910D5A4EE987898F44C20A1508"><enum>(v)</enum><header>Improving
management</header><text>Doing one or more of the following:</text>
<subclause id="HC248EAC9DAD742149EF14C5D0846CCCC"><enum>(I)</enum><header>New election of
directors</header><text display-inline="yes-display-inline">Ordering a new
election for the board of directors of the financial holding company subject to
stricter standards.</text>
</subclause><subclause id="H17349FA1C0E24102BFDB841F031A9F6D"><enum>(II)</enum><header>Dismissing
directors or senior executive officers</header><text>Requiring the financial
holding company subject to stricter standards to dismiss from office any
director or senior executive officer who had held office for more than 180 days
immediately before the financial holding company subject to stricter standards
became undercapitalized. Dismissal under this clause shall not be construed to
be a removal under section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818).</text>
</subclause><subclause id="H9B00AFE9B5BB43C6998F886BDEE9F3AF"><enum>(III)</enum><header>Employing
qualified senior executive officers</header><text>Requiring the financial
holding company subject to stricter standards to employ qualified senior
executive officers (who, if the Board so specifies, shall be subject to
approval by the Board).</text>
</subclause></clause><clause id="HEF46448C00FB46A2A9A9BDE8CB0607FA"><enum>(vi)</enum><header>Requiring
divestiture</header><text display-inline="yes-display-inline">Requiring the
financial holding company subject to stricter standards to divest itself of or
liquidate any subsidiary if the Board determines that the subsidiary is in
danger of becoming insolvent, poses a significant risk to the financial holding
company subject to stricter standards, or is likely to cause a significant
dissipation of the assets or earnings of the financial holding company subject
to stricter standards.</text>
</clause><clause id="H5A0545D6010E4F319C6DB9C7D929615F"><enum>(vii)</enum><header>Requiring
other action</header><text display-inline="yes-display-inline">Requiring the
financial holding company subject to stricter standards to take any other
action that the Board determines will better carry out the purpose of this
section than any of the actions described in this subparagraph.</text>
</clause></subparagraph><subparagraph id="H7F6519478D15416982D155E8056C7660"><enum>(C)</enum><header>Presumption in
favor of certain actions</header><text>In complying with subparagraph (B), the
Board shall take the following actions, unless the Board determines that the
actions would not be appropriate—</text>
<clause id="H1744483755214A2EBC1D23E621D41BA0"><enum>(i)</enum><text>The
action described in subclause (I) or (III) of subparagraph (B)(i) (relating to
requiring the sale of shares or obligations, or requiring the financial holding
company subject to stricter standards to be acquired by or combine with another
company).</text>
</clause><clause id="H12F2B6F18E7545F1A2D72ECBA13678AA"><enum>(ii)</enum><text>The
action described in subparagraph (B)(ii) (relating to restricting transactions
with affiliates).</text>
</clause></subparagraph><subparagraph id="H75D704CA247447798F570091BF9DD93B"><enum>(D)</enum><header>Senior executive
officers’ compensation restricted</header>
<clause id="H76954D5AD4C44C3FA4C5F69A95C03674"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The financial holding
company subject to stricter standards shall not do any of the following without
the prior written approval of the Board:</text>
<subclause id="H9597B2149CE845C6B5A01198FD217367"><enum>(I)</enum><text>Pay any bonus to
any senior executive officer.</text>
</subclause><subclause id="H4A7778EA7B8B4D0DBE18E957174BE090"><enum>(II)</enum><text>Provide
compensation to any senior executive officer at a rate exceeding that officer’s
average rate of compensation (excluding bonuses, stock options, and
profit-sharing) during the 12 calendar months preceding the calendar month in
which the financial holding company subject to stricter standards became
undercapitalized.</text>
</subclause></clause><clause id="HF6DE64A09ED2450B943E0029FE59F59B"><enum>(ii)</enum><header>Failing to
submit plan</header><text>The Board shall not grant any approval under clause
(i) with respect to a financial holding company subject to stricter standards
that has failed to submit an acceptable capital restoration plan.</text>
</clause></subparagraph><subparagraph id="HD5474EFF8B1242B6AE03E2CC3E43B0D7"><enum>(E)</enum><header>Consultation
with other regulators</header><text>Before the Board makes a determination
under subparagraph (B)(vi) with respect to a subsidiary that is a broker,
dealer, government securities broker, government securities dealer, investment
company, or investment adviser, the Board shall consult with the Securities and
Exchange Commission and, in the case of any other subsidiary which is subject
to any financial responsibility or capital requirement, any other appropriate
regulator of such subsidiary with respect to the proposed determination of the
Board and actions pursuant to such determination.</text>
</subparagraph></paragraph><paragraph id="HE38B77D43EE34A0BBC7203F48776D863"><enum>(8)</enum><header>More stringent
treatment based on other supervisory criteria</header>
<subparagraph id="H2F827C53B4E84285998E672AA68BCF16"><enum>(A)</enum><header>In
general</header><text>If the Board determines (after notice and an opportunity
for hearing) that a financial holding company subject to stricter standards is
in an unsafe or unsound condition or, pursuant to section 8(b)(8) of the
Federal Deposit Insurance Act (12 U.S.C. 1818(b)(8)), deems the financial
holding company subject to stricter standards to be engaging in an unsafe or
unsound practice, the Board may—</text>
<clause id="H960E2A876ADB41E380AA8A8EF2FFB57A"><enum>(i)</enum><text>if
the financial holding company subject to stricter standards is well
capitalized, require the financial holding company subject to stricter
standards to comply with one or more provisions of paragraphs (6) and (7), as
if the institution were undercapitalized; or</text>
</clause><clause id="H2AA6E35C9AE0405099836AA7E4B49841"><enum>(ii)</enum><text>if
the financial holding company subject to stricter standards is
undercapitalized, take any one or more actions authorized under paragraph
(7)(B) as if the financial holding company subject to stricter standards were
significantly undercapitalized.</text>
</clause></subparagraph><subparagraph id="H9A4A8DF14A2B49CFB22DA5DA95E0823D"><enum>(B)</enum><header>Contents of
plan</header><text>A plan that may be required pursuant to subparagraph (A)(i)
shall specify the steps that the financial holding company subject to stricter
standards will take to correct the unsafe or unsound condition or
practice.</text>
</subparagraph></paragraph><paragraph id="H38EE18C760FA41D2B0DB401493970942"><enum>(9)</enum><header>Implementation</header><text>The
Board shall prescribe such regulations, issue such orders, and take such other
actions the Board determines to be necessary to carry out this
subsection.</text>
</paragraph><paragraph id="HD358F84B12B64593946A5D098B21FDEC"><enum>(10)</enum><header>Other authority
not affected</header><text>This section does not limit any authority of the
Board, any other Federal regulatory agency, or a State to take action in
addition to (but not in derogation of) that required under this section.</text>
</paragraph><paragraph id="H5D9E784424CB4B2599B7A2006DF593ED"><enum>(11)</enum><header>Consultation</header><text>The
Board and the Secretary of the Treasury shall consult with their foreign
counterparts and through appropriate multilateral organizations to reach
agreement to extend comprehensive and robust prudential supervision and
regulation to all highly leveraged and substantially interconnected financial
companies.</text>
</paragraph><paragraph id="H05F4C7FF6CEC41DC99B36A2E6BB7F687"><enum>(12)</enum><header>Administrative
review of dismissal orders</header>
<subparagraph id="H2BB0948AA0C14B76A142DAE6D5A2C19F"><enum>(A)</enum><header>Timely petition
required</header><text>A director or senior executive officer dismissed
pursuant to an order under paragraph (7)(B)(v)(II) may obtain review of that
order by filing a written petition for reinstatement with the Board not later
than 10 days after receiving notice of the dismissal.</text>
</subparagraph><subparagraph id="HA4D7E103C47245F7ADF198D5918341DB"><enum>(B)</enum><header>Procedure</header>
<clause id="H6DD18BE55693416EBEAFDE937590BEA7"><enum>(i)</enum><header>Hearing
required</header><text>The Board shall give the petitioner an opportunity
to—</text>
<subclause id="HFEBCB1DB5FF4494E975A40878B2464EA"><enum>(I)</enum><text>submit written
materials in support of the petition; and</text>
</subclause><subclause id="H469D75BADF4D49D49ACB6083F98B8AD1"><enum>(II)</enum><text>appear,
personally or through counsel, before 1 or more members of the Board or
designated employees of the Board.</text>
</subclause></clause><clause id="H9FCA146A0D8341F9B6B4E212E14BCFF2"><enum>(ii)</enum><header>Deadline for
hearing</header><text>The Board shall—</text>
<subclause id="H2E51655B415844AD9606FC1392DBB4F3"><enum>(I)</enum><text>schedule the
hearing referred to in clause (i)(II) promptly after the petition is filed;
and</text>
</subclause><subclause id="H1E66FBC69F2742FFB52968DF2BD6D44D"><enum>(II)</enum><text>hold the hearing
not later than 30 days after the petition is filed, unless the petitioner
requests that the hearing be held at a later time.</text>
</subclause></clause><clause id="H0F419C2C58E742E88A59C7053D75DC8C"><enum>(iii)</enum><header>Deadline for
decision</header><text>Not later than 60 days after the date of the hearing,
the Board shall—</text>
<subclause id="HD07A9BB474074248AED459B40646E0C0"><enum>(I)</enum><text>by order, grant or
deny the petition;</text>
</subclause><subclause id="H66F504F140F04CE582D5D921B71BA3E8"><enum>(II)</enum><text>if the order is
adverse to the petitioner, set forth the basis for the order; and</text>
</subclause><subclause id="HB852FEE42EFC4EF0B7D04C62818054CD"><enum>(III)</enum><text>notify the
petitioner of the order.</text>
</subclause></clause></subparagraph><subparagraph id="H18CC88A863E94B0FB52C95DF6C72EF0D"><enum>(C)</enum><header>Standard for
review of dismissal orders</header><text display-inline="yes-display-inline">The petitioner shall bear the burden of
proving that the petitioner’s continued employment would materially strengthen
the ability of the financial holding company subject to stricter
standards—</text>
<clause id="HC1EADCCDA82F4068B37D25B0E42110A6"><enum>(i)</enum><text display-inline="yes-display-inline">to become well capitalized, to the extent
that the order is based on the capital level of the financial holding company
subject to stricter standards or such company’s failure to submit or implement
a capital restoration plan; and</text>
</clause><clause id="H62DD67B26ABF4F9FB773FEEEBBF69A6D"><enum>(ii)</enum><text>to
correct the unsafe or unsound condition or unsafe or unsound practice, to the
extent that the order is based on paragraph (8)(A).</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC0EF95FAB1904F108269B3A90F6C6A5E"><enum>(13)</enum><header>Enforcement
authority for foreign financial holding company subject to stricter
standards</header>
<subparagraph id="HC15BC647D7DC4D4294AD82321EB7406B"><enum>(A)</enum><header>Termination
authority</header><text display-inline="yes-display-inline">If the Board
believes that a condition, practice, or activity of a foreign financial holding
company subject to stricter standards does not comply with this title or the
rules or orders prescribed by the Board under this title or otherwise poses a
threat to financial stability, the Board may, after notice and opportunity for
a hearing, take such actions as necessary to mitigate such risk, including
ordering a foreign financial holding company subject to stricter standards in
the United States to terminate the activities of such branch, agency, or
subsidiary.</text>
</subparagraph><subparagraph id="H7853EB1ABB2A48E7813E590B4A7B9DED"><enum>(B)</enum><header>Discretion to
deny hearing</header><text>The Board may issue an order under paragraph (1)
without providing for an opportunity for a hearing if the Board determines that
expeditious action is necessary in order to protect the public interest.</text>
</subparagraph></paragraph></subsection><subsection id="H4FB171C5EBE649EBBEC9D04DA9DA8687"><enum>(f)</enum><header>Reports
regarding rapid and orderly resolution and credit exposure</header>
<paragraph id="H3E1E7C72B4B440CCB32CFD7BFB302EAB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall
require each financial holding company subject to stricter standards
incorporated or organized in the United States to report periodically to the
Board on—</text>
<subparagraph id="H9894B8D0551747A99B90B70471439310"><enum>(A)</enum><text>its plan for rapid
and orderly resolution in the event of severe financial distress;</text>
</subparagraph><subparagraph id="HBCE6199395E84DB4BF612BF258A4E018"><enum>(B)</enum><text>the nature and
extent to which the financial holding company subject to stricter standards has
credit exposure to other significant financial companies; and</text>
</subparagraph><subparagraph id="HDDA27CA593704CD7A20B0F1CD2F2010D"><enum>(C)</enum><text>the nature and
extent to which other significant financial companies have credit exposure to
the financial holding company subject to stricter standards.</text>
</subparagraph></paragraph><paragraph id="H962B38B44A9B4A61A771EA0594C7E48F"><enum>(2)</enum><header>No limiting
effect</header><text>A rapid resolution plan submitted in accordance with this
subsection shall not be binding on a receiver appointed under subtitle G, a
bankruptcy court, or any other authority that is authorized or required to
resolve the financial holding company subject to stricter standards or any of
its subsidiaries or affiliates.</text>
</paragraph><paragraph id="HF20B66E8B1C749C990DE6844CC7090A4"><enum>(3)</enum><header>Reporting
triggered by stress test results</header>
<subparagraph id="H8B75A55BF0C846C2A45BF152A1329B5B"><enum>(A)</enum><header>Financial
holding companies subject to stricter standards</header><text display-inline="yes-display-inline">Each time the results of a quarterly stress
test under baseline or adverse conditions conducted by a financial holding
company subject to stricter standards under section 1114(a) or the results of a
stress test of that financial holding company subject to stricter standards
conducted by the Board under subsection (g) indicate that the financial holding
company subject to stricter standards is, in the determination of the Board,
significantly or critically undercapitalized, that financial holding company
subject to stricter standards shall submit a rapid resolution plan in
accordance with this subsection that has been revised to address the causes of
those results.</text>
</subparagraph><subparagraph id="H5A4F6919FFD44932860FC8BAB677DB3E"><enum>(B)</enum><header>Financial
companies that are not financial holding companies subject to stricter
standards</header><text display-inline="yes-display-inline">Each time the
results of a semiannual stress test under baseline or adverse conditions
conducted by a financial company under section 1114(b) indicate that the
financial company is, in the determination of the Board, significantly or
critically undercapitalized, that financial company shall be required to report
under this subsection. The Board shall prescribe regulations establishing
expedited procedures for such reporting.</text>
</subparagraph><subparagraph id="HF1AE5A211B7945A5A8EA8C9A3AF86370"><enum>(C)</enum><header>Transparency</header><text>Any
rapid resolution plan submitted pursuant to this paragraph shall be subject to
any restrictions regarding the disclosure of any other rapid resolution plan
submitted pursuant to this subsection.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H6DFF3D983C134560A0E364CDBB094F48"><enum>(g)</enum><header>Stress
tests</header>
<paragraph id="HE89BBCAA330547618FD74A3247D0EF8B"><enum>(1)</enum><text display-inline="yes-display-inline">The Board, in coordination with the
appropriate primary financial regulatory agency, shall conduct annual stress
tests of each financial holding company subject to stricter standards. The
Board may, as the Board determines appropriate, conduct stress tests of
financial companies that are not financial holding companies subject to
stricter standards. The Board shall publish a summary of the results of such
stress tests.</text>
</paragraph><paragraph id="HA546710A39DE4797A2C6AB5880EF82C5"><enum>(2)</enum><text>The Board shall
issue regulations to define the term <quote>stress test</quote> for purposes of
this subsection. Such a definition shall provide for not less than 3 different
sets of conditions under which a stress test should be conducted: baseline,
adverse, and severely adverse scenarios.</text>
</paragraph></subsection><subsection id="H6CE1F5EF3D0341F389E1F51D3764DB36"><enum>(h)</enum><header>Avoiding
duplication</header><text>The Board shall take any action the Board deems
appropriate to avoid imposing duplicative requirements under this subtitle for
financial holding companies subject to stricter standards that are also bank
holding companies.</text>
</subsection><subsection id="H3B080B107388453396C71AB8E2ECDBFF"><enum>(i)</enum><header>Resolution plans
required</header>
<paragraph id="H08EA802D2826406A98522803265C26E6"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Corporation and
the Board, after consultation with the Council, shall jointly issue regulations
requiring financial holding companies subject to stricter standards to develop
plans designed to assist in the rapid and orderly resolution of the
company.</text>
</paragraph><paragraph id="H78957A04416643A995291914B599BD71"><enum>(2)</enum><header>Standards for
resolution plans</header><text>The regulations required by paragraph (1)
shall—</text>
<subparagraph id="HF9E269F43ED04A6B891B136FB278A9AC"><enum>(A)</enum><text display-inline="yes-display-inline">define the scope of financial holding
companies subject to stricter standards covered by these requirements and may
exempt financial holding companies subject to stricter standards from the
requirements of this subsection if the Corporation and the Board jointly
determine that exemption is consistent with the purposes of this title;</text>
</subparagraph><subparagraph id="HAB83D4545739440AA0C7B41DD6FE4D96"><enum>(B)</enum><text display-inline="yes-display-inline">require each plan to demonstrate that any
insured depository institution affiliated with a financial holding company
subject to stricter standards is adequately insulated from the activities of
any non-bank subsidiary of the institution or financial holding companies
subject to stricter standards;</text>
</subparagraph><subparagraph id="H45D537DF4762418C9BA94469D4DDC91E"><enum>(C)</enum><text display-inline="yes-display-inline">require that each plan include information
detailing—</text>
<clause id="HF23AD83473804A4EB420DCF372ACFB81"><enum>(i)</enum><text>the
nature and extent to which the financial holding company subject to stricter
standards has credit exposure to other significant financial companies;</text>
</clause><clause id="H225A2D0B7A644F1DA345EDF7F6884EA0"><enum>(ii)</enum><text>the
nature and extent to which other significant financial companies have credit
exposure to the financial holding company subject to stricter standards;</text>
</clause><clause id="HCEB7460BF96E4775A060327696DF97D9"><enum>(iii)</enum><text display-inline="yes-display-inline">full descriptions of the financial holding
company subject to stricter standards’ ownership structure, assets,
liabilities, and contractual obligations; and</text>
</clause><clause id="HF2E1BF2CD1044925804CA615D7A9BEDC"><enum>(iv)</enum><text>the
cross-guarantees tied to different securities, a list of major counterparties,
and a process for determining where the financial holding company subject to
stricter standards’ collateral is pledged; and</text>
</clause></subparagraph><subparagraph id="H22DC826CDAEF4A2786A16D5E52E5C70B"><enum>(D)</enum><text>establish such
other standards as the Corporation and the Board may jointly deem necessary to
carry out this subsection.</text>
</subparagraph></paragraph><paragraph id="HE72486C051344098A6297A0CABF6F83C"><enum>(3)</enum><header>Review of
plans</header>
<subparagraph id="H92EDF2A971644EA19C04EB10E5D1FD34"><enum>(A)</enum><header>Submission of
plans</header><text>Each financial holding company subject to stricter
standards that is subject to the requirement under paragraph (1) shall submit
its plan to the Corporation and the Board.</text>
</subparagraph><subparagraph id="HD76EC10FBDFC417DA533F7ED9B805F55"><enum>(B)</enum><header>Review</header><text>Upon
the submission of a plan pursuant to subparagraph (A), and not less often than
annually thereafter, the Corporation and the Board, after consultation with any
Federal financial regulatory agencies with jurisdiction over the financial
holding company subject to stricter standards, shall jointly review such plan
and may require a financial holding company subject to stricter standards to
revise its plan consistent with the standards established pursuant to paragraph
(2).</text>
</subparagraph></paragraph><paragraph id="H13ADEDF3DCEA42F7B8BF9C5E13AA2D5D"><enum>(4)</enum><header>Enforcement</header>
<subparagraph id="H8C647D387A6D43B1B2A0386EEB615779"><enum>(A)</enum><header>In
general</header><text>The Corporation, after consultation with the Board, shall
have the authority to take any enforcement action in section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818) against any financial holding company
subject to stricter standards that fails to comply with the requirements of
this section or any regulations issued pursuant to this section.</text>
</subparagraph><subparagraph id="H47EB87C79EBF49809773B62C8AAD1D30"><enum>(B)</enum><header>No limitation on
Board authority</header><text>Nothing under this subsection shall be construed
as limiting any enforcement authority available to the Board under any other
provision of law.</text>
</subparagraph></paragraph><paragraph id="H7C4DDB22B08A4B95B8AE44B223F88EB5"><enum>(5)</enum><header>No limiting
effect on receiver</header><text display-inline="yes-display-inline">A rapid
resolution plan submitted under this section shall not be binding on a receiver
appointed under subtitle G, a bankruptcy court, or any other authority that is
authorized or required to resolve the financial holding company subject to
stricter standards or any of its subsidiaries or affiliates.</text>
</paragraph><paragraph id="H385DB9E9AB5842AB945302F61874EDF5"><enum>(6)</enum><header>No private right
of action</header><text>No private right of action may be based on any
resolution plan submitted under this section.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H70C8D7BA735543798E9D0D18B5780680" section-type="subsequent-section"><enum>1105.</enum><header>Mitigation of
systemic risk</header>
<subsection id="H8D8013DD75C046B2924D56B84F2B5D14"><enum>(a)</enum><header>Council
authority to restrict operations and activities</header><text display-inline="yes-display-inline">If the Council determines, after notice and
an opportunity for hearing, that despite the higher prudential standards
imposed pursuant to section 1104(a)(2), the size of a financial holding company
subject to stricter standards or the scope, nature, scale, concentration,
interconnectedness, or mix of activities directly or indirectly conducted by a
financial holding company subject to stricter standards poses a grave threat to
the financial stability or economy of the United States, the Council shall
require the company to undertake 1 or more mitigatory actions described in
subsection (d).</text>
</subsection><subsection id="H6B4A265ABE1B49DC85B6F63FE63F736A"><enum>(b)</enum><header>Consultation
with Federal financial regulatory agencies</header><text display-inline="yes-display-inline">The Council, in determining whether to
impose any requirement under this section that is likely to have a significant
impact on a functionally regulated subsidiary, or a subsidiary depository
institution, of a financial company subjected to stricter prudential standards
under this title, shall consult with the Federal financial regulatory agency
for any such subsidiary.</text>
</subsection><subsection id="HA6B4567EB67F4E5481DACAC492CA69C5"><enum>(c)</enum><header>Factors for
consideration</header><text display-inline="yes-display-inline">In reaching a
determination described in subsection (a), the Council shall take into
consideration the following factors, as appropriate—</text>
<paragraph id="HEA2BB5750C8E428EBCDAE26AE8765EA1"><enum>(1)</enum><text>the amount and
nature of the company’s financial assets;</text>
</paragraph><paragraph id="H13160925D36F445590D5B18DEDA914E9"><enum>(2)</enum><text>the amount and
nature of the company’s liabilities, including the degree of reliance on
short-term funding;</text>
</paragraph><paragraph id="HF1AF7C274058448FA0C0B78D86645FD0"><enum>(3)</enum><text>the extent and
nature of the company’s off-balance sheet exposures;</text>
</paragraph><paragraph id="H9BCDA86AA9804C8E9A524203E576D864"><enum>(4)</enum><text>the company’s
reliance on leverage;</text>
</paragraph><paragraph id="HB1F01F2D4F494B9DA3DC8C86B99C295C"><enum>(5)</enum><text>the extent and
nature of the company’s transactions, relationships, and interconnectedness
with other financial and non-financial companies;</text>
</paragraph><paragraph id="HA9B8611C6C624F1F92699C6B45B25456"><enum>(6)</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>
</paragraph><paragraph id="HE32243A04FA649A384AC7B256558C41E"><enum>(7)</enum><text>the scope, nature,
size, scale, concentration, interconnectedness and mix of the company’s
activities;</text>
</paragraph><paragraph id="HD0C56C4DF03E4C1E8B4D88D60BF798B4"><enum>(8)</enum><text>the extent to
which prudential regulations mitigate the risk posed; and</text>
</paragraph><paragraph id="HBF2EBF84BBE34FED8A5E887912D984FF"><enum>(9)</enum><text>any other factors
identified that the Council determines appropriate.</text>
</paragraph></subsection><subsection id="HA3042D9663C0454AA35D8116C4BC3561"><enum>(d)</enum><header>Mitigatory
actions</header>
<paragraph id="HF6C636DC49944293AF8986AB2D822F40"><enum>(1)</enum><header>In
general</header><text>Mitigatory action may include—</text>
<subparagraph id="HF4DCF860156B4E649C83BF78E85F772E"><enum>(A)</enum><text>modifying the
prudential standards imposed pursuant to section 1104(a);</text>
</subparagraph><subparagraph id="HA50886A27DF44F8BB04F1E555E4DD9BB"><enum>(B)</enum><text>terminating 1 or
more activities;</text>
</subparagraph><subparagraph id="H469586741F834304923F79A32C8F210A"><enum>(C)</enum><text display-inline="yes-display-inline">imposing conditions on the manner in which
a financial holding company subject to stricter standards conducts 1 or more
activities;</text>
</subparagraph><subparagraph id="H282051E8E1CD46609222CA1F9B7EC2C5"><enum>(D)</enum><text>limiting the
ability to merge with, acquire, consolidate with, or otherwise become
affiliated with another company;</text>
</subparagraph><subparagraph id="H17DE42ECAF974FA9984A361723F00AAF"><enum>(E)</enum><text>restricting the
ability to offer a financial product or products; and</text>
</subparagraph><subparagraph id="H8FC3E140B4424DA58C282C94AB94B197"><enum>(F)</enum><text>in the event the
Council deems subparagraphs (A) through (E) inadequate as a means to address
the identified risks, selling, divesting, or otherwise transferring business
units, branches, assets, or off-balance sheet items to unaffiliated
companies.</text>
</subparagraph></paragraph><paragraph id="HE40733BCF2124FE6AD73BE7D0FC21328"><enum>(2)</enum><header>International
competitiveness considerations</header><text>In making any decision pursuant to
paragraph (1), the Council shall consider—</text>
<subparagraph id="H6A99E962E6494A75A4830151A7A331FB"><enum>(A)</enum><text>the need to
maintain the international competitiveness of the United States financial
services industry; and</text>
</subparagraph><subparagraph id="H87372A3ECB534C0DA3B196A3F9A7EF20"><enum>(B)</enum><text>the extent to
which other countries with a significant financial services industry have
established corresponding regimes to mitigate threats to financial stability or
the economy posed by financial companies.</text>
</subparagraph></paragraph></subsection><subsection id="H0A64FF05ABF94330B36470CF0809FAB9"><enum>(e)</enum><header>Due
process</header>
<paragraph id="H6F7CC07D505D418C8E277E9876316154"><enum>(1)</enum><header>Notice and
hearing</header><text>The Council shall give notice to a financial company
subject to stricter prudential standards, and opportunity for hearing if
requested, that the financial company is being considered for mitigatory action
pursuant to subsection (a). The hearing shall occur no later than 30 days after
the financial company receives notice of the proposed action from the
Council.</text>
</paragraph><paragraph id="HB51D82FCCD29418D90348A2818DBADB9"><enum>(2)</enum><header>Notice</header><text>The
Council shall notify the financial company subject to stricter prudential
standards of the Council’s determination, and, if the Council determines that
mitigatory action is appropriate, require the company to submit a plan to the
Council to implement the required mitigatory action.</text>
</paragraph><paragraph id="H5E290D0B7DB846D991A8FF1DC95626AA"><enum>(3)</enum><header>Submission of
plan</header><text display-inline="yes-display-inline">The financial holding
company subject to stricter standards shall submit its proposed plan to
implement the required mitigatory action or actions to the Council within 60
days from the date it receives notice under paragraph (2) or such shorter
timeframe as the Council may require, if the Council determines an emergency
situation merits expeditious implementation.</text>
</paragraph><paragraph id="HEDA165FC3EC4456D8E2CF62540622030"><enum>(4)</enum><header>Approval or
amendment of the plan</header><text>The Council shall review the plan submitted
pursuant to paragraph (3) and determine whether the plan achieves the goal of
mitigating a grave threat to the financial stability or the economy of the
United States. The Council may approve or disapprove the plan with or without
amendment.</text>
</paragraph><paragraph id="HB45C7388EE5346EE80D6D1624DDC0FB0"><enum>(5)</enum><header>Effect of plan
approval</header><text>The Council shall—</text>
<subparagraph id="H86EB229FE3EC4D5C8E82B23C52D1D611"><enum>(A)</enum><text display-inline="yes-display-inline">notify a financial holding company subject
to stricter standards by order, which shall be public, that the Council has
approved the plan with or without amendment; and</text>
</subparagraph><subparagraph id="H9BE96526C43C4F23BD2B06C9FDE1A7C1"><enum>(B)</enum><text display-inline="yes-display-inline">direct the Board to require a financial
holding company subject to stricter standards to comply with the plan to
implement mitigatory action or actions within a reasonable timeframe after the
Council’s approval and in accordance with such deadlines established in the
plan.</text>
</subparagraph></paragraph></subsection><subsection id="H40A422C3EF5B47A69E7769AEAE0EB93E"><enum>(f)</enum><header>Treasury
secretary concurrence</header><text display-inline="yes-display-inline">Mitigatory action imposed by the Council
involving the sale, divestiture, or transfer of more than $10,000,000,000 in
total assets by a financial holding company subject to stricter standards shall
require the Secretary of the Treasury’s concurrence before the issuance of the
notice in subsection (e)(5)(A). If the sale, divestiture, or transfer of total
assets by a financial holding company subject to stricter standards exceeds
$100,000,000,000, the Secretary of the Treasury shall consult with the
President before concurrence.</text>
</subsection><subsection id="HFDED77E9137B4E6182D10F015244B990"><enum>(g)</enum><header>Failure to
implement the plan</header><text display-inline="yes-display-inline">If a
financial holding company subject to stricter standards fails to implement a
plan for mitigatory action imposed pursuant to subsection (e)(5) within a
reasonable timeframe, the Council shall direct the Board to take such actions
as necessary to ensure compliance with the plan.</text>
</subsection><subsection id="H2AE58A4E61E749D3AAC3164B862DB30A"><enum>(h)</enum><header>Judicial
review</header><text display-inline="yes-display-inline">For any plan required
under this section, a financial holding company subject to stricter standards
may, not later than 30 days after receipt of the Council’s notice under
subsection (e)(5), bring an action in the United States district court for the
judicial district in which the home office of such company is located, or in
the United States District Court for the District of Columbia, for an order
requiring that the requirement for a mitigatory action be rescinded. Judicial
review under this section shall be limited to the imposition of a mitigatory
action. In reviewing the Council’s imposition of a mitigatory action, the court
shall rescind or dismiss only those mitigatory actions it finds to be imposed
in an arbitrary and capricious manner.</text>
</subsection></section><section id="H718EA8A535654CF5BF5C121E497AE280"><enum>1106.</enum><header>Subjecting
activities or practices to stricter prudential standards for financial
stability purposes</header>
<subsection id="HEADCD16F5DFD415F870BFEB1C1A55E96"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Council may
subject a financial activity or practice to stricter prudential standards under
this subtitle 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 financial institutions or markets and local, minority, or
underserved communities, and thereby threaten the stability of the financial
system or economy.</text>
</subsection><subsection id="H675F366973074DEE914D7056917A3E8B"><enum>(b)</enum><header>Periodic review
of activity identifications</header>
<paragraph id="H4A8523711C084541B4BB8C463C7A09F8"><enum>(1)</enum><header>Submission of
assessment</header><text>The Board shall periodically submit a report to the
Council containing an assessment of whether each activity or practice subjected
to stricter prudential standards should continue to be subject to such
standards.</text>
</paragraph><paragraph id="HF5D40EDA70A046A8876BE7DDA2D4BE91"><enum>(2)</enum><header>Review and
recision</header><text>The Council shall—</text>
<subparagraph id="H63F36A24244F4655BB2E091A939DCA6B"><enum>(A)</enum><text display-inline="yes-display-inline">review the assessment submitted pursuant to
paragraph (1) and any information or recommendation submitted by members of the
Council regarding whether a financial activity subjected to stricter prudential
standards continues to merit stricter prudential standards; and</text>
</subparagraph><subparagraph id="H358881B187F5426D86F38CE8AE93B82A"><enum>(B)</enum><text>rescind the action
subjecting an activity to heightened prudential supervision if the Council
determines that the activity no longer meets the criteria in subsection
(a).</text>
</subparagraph></paragraph></subsection><subsection id="H81BD43F55C6D4E11B27EC969F676F442"><enum>(c)</enum><header>Procedure for
subjecting or ceasing to subject an activity or practice to stricter prudential
standards</header>
<paragraph id="HE60344C879424DF39E28A48DD7A63B83"><enum>(1)</enum><header>Council and
board coordination</header><text display-inline="yes-display-inline">The
Council shall inform the Board if the Council is considering whether to subject
or cease to subject an activity to stricter prudential standards in accordance
with this section.</text>
</paragraph><paragraph id="H792DD5F91F1647EF85997C368E21AF0D"><enum>(2)</enum><header>Notice and
opportunity for consideration of written materials</header>
<subparagraph id="H19BA0E7EAC9A4471A18EF4A1358F2364"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board shall, in
an executive capacity on behalf of the Council, provide notice to financial
companies that the Council is considering whether to subject an activity or
practice to heightened prudential regulation, and shall provide a financial
company engaged in such activity or practice 30 days to submit written
materials to inform the Council’s decision. The Council shall decide, and the
Board shall provide notice of the Council’s decision, within 60 days of the due
date for such written materials.</text>
</subparagraph><subparagraph id="HFFB068BBACA24B96B68C93BF46D802F5"><enum>(B)</enum><header>Emergency
exception</header><text>The Council may waive or modify the requirements of
subparagraph (A) if the Council determines that such waiver or modification is
necessary or appropriate to prevent or mitigate threats posed by an activity to
financial stability. The Board shall, in an executive capacity on behalf of the
Council, provide notice of such waiver or modification to financial companies
as soon as practicable, which shall be no later than 24 hours after the waiver
or modification.</text>
</subparagraph></paragraph><paragraph id="H56DD460502AC4D3BBEF76D07D942DCDF"><enum>(3)</enum><header>Form of
decision</header><text>The Board shall provide all notices required under this
subsection by posting a notice on the Board’s web site and publishing a notice
in the Federal Register.</text>
</paragraph></subsection></section><section id="HAE74F4A259CD4F1CAE2E96ADAC1EB23C"><enum>1107.</enum><header>Stricter
regulation of activities and practices for financial stability
purposes</header>
<subsection id="H76300C56406E4CFEA0F143270C819E2F"><enum>(a)</enum><header>Prudential
Standards</header>
<paragraph id="HB621A584AE544F4B905250F7E76E5B83"><enum>(1)</enum><header>Board authority
to recommend</header>
<subparagraph id="HE38ADEA426014959B82676237A4B3565"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">To mitigate the risks
to United States financial stability and the United States economy posed by
financial activities and practices that the Council identifies for stricter
prudential standards under section 1106 the Board shall recommend prudential
standards to the appropriate primary financial regulatory agencies to apply to
such identified activities and practices.</text>
</subparagraph><subparagraph id="H50E7D12953DF46AD9E09AA71BFAFFFC1"><enum>(B)</enum><header>Consultation
with primary financial regulatory agencies</header><text display-inline="yes-display-inline">The Board, in developing recommendations
under this subsection, shall consult with the relevant primary financial
regulatory agencies with respect to any standard that is likely to have a
significant effect on entities described in section 1000(b)(6).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H62D6AC1FFC104C13A446C411E6F5C0EC"><enum>(2)</enum><header>Criteria</header><text>The
actions recommended under paragraph (1)—</text>
<subparagraph id="H0D634CD343D54596B27909CAAA0772CC"><enum>(A)</enum><text>shall be designed
to maximize financial stability, taking costs to long-term financial and
economic growth into account; and</text>
</subparagraph><subparagraph id="H46F5E17271F44D97804E6EC1F9E98734"><enum>(B)</enum><text display-inline="yes-display-inline">may include prescribing the conduct of the
activity or practice in specific ways (such as by limiting its scope, nature,
size, scale, concentration, or interconnectedness, or applying particular
capital or risk-management requirements to the conduct of the activity) or
prohibiting the activity or practice altogether.</text>
</subparagraph></paragraph></subsection><subsection id="H8D2C9CCC139A439AA2C2F62DE503C1F0"><enum>(b)</enum><header>Implementation
of recommended standards</header>
<paragraph id="H23465C590E1041E3877DBB668737D763"><enum>(1)</enum><header>Role of primary
financial regulatory agency</header><text>Each primary financial regulatory
agency is authorized to impose, require reports regarding, examine for
compliance with, and enforce standards in accordance with this section with
respect to those entities described in section 1000(b)(6) for which it is the
primary financial regulatory agency. This authority is in addition to and does
not limit any other authority of the primary financial regulatory agencies.
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 primary financial regulatory agency’s jurisdiction
over the entity as if the agency action were taken under those statutes.</text>
</paragraph><paragraph id="H932DD84D8EE441B3BB8F90E2F141D9C3"><enum>(2)</enum><header>Imposition of
standards</header><text>Standards imposed under this subsection shall be the
standards recommended by the Board in accordance with subsection (a) or any
other similar standards that the Board deems acceptable after consultation
between the Board and the primary financial regulatory agency.</text>
</paragraph><paragraph id="HE1D78731274C4E528B2E94173E72EC71"><enum>(3)</enum><header>Primary
financial regulatory agency response</header><text display-inline="yes-display-inline">A primary financial regulatory agency shall
notify the Council and the Board in writing on whether and to what extent the
agency has imposed the stricter prudential standards described in paragraph (2)
within 60 days of the Board’s recommendation. A primary financial regulatory
agency that fails to impose such standards shall provide specific justification
for such failure to act in the written notice from the agency to the Council
and Board.</text>
</paragraph></subsection></section><section id="H019573578BE04002BB66904AD41FE4B7"><enum>1108.</enum><header>Effect of
rescission of identification</header>
<subsection id="H96A0019C831041EEA53C86376A5A6766"><enum>(a)</enum><header>Notice</header><text display-inline="yes-display-inline">When the Council determines that a company
or activity or practice no longer is subject to heightened prudential scrutiny,
the Board shall inform the relevant primary financial regulatory agency or
agencies (if different from the Board) of that finding.</text>
</subsection><subsection id="HABB469AADA6E40BCB94F00C8FC903D14"><enum>(b)</enum><header>Determination of
primary financial regulatory agency to continue</header><text>A primary
financial regulatory agency that has imposed stricter prudential standards for
financial stability purposes under this subtitle shall determine whether
standards that it has imposed under this subtitle should remain in
effect.</text>
</subsection></section><section display-inline="no-display-inline" id="H71D7285647CA46EAB5AA937415465282" section-type="subsequent-section"><enum>1109.</enum><header>Emergency financial
stabilization</header>
<subsection id="H0B1CB6724870477DA8380CA136F5F591"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Upon the written
determination of the Council that a liquidity event exists that could
destabilize the financial system (which determination shall be made upon a vote
of not less than two-thirds of the members of the Council then serving) and
with the written consent of the Secretary of the Treasury (after certification
by the President that an emergency exists), the Corporation may create a
widely-available program designed to avoid or mitigate adverse effects on
systemic economic conditions or financial stability by guaranteeing obligations
of solvent insured depository institutions or other solvent companies that are
predominantly engaged in activities that are financial in nature or are
incidental thereto pursuant to section 4(k) of the Bank Holding Company Act, if
necessary to prevent systemic financial instability during times of severe
economic distress, except that a guarantee of obligations under this section
may not include provision of equity in any form.</text>
</subsection><subsection id="H535DF4DD12E34D49B10283D1F633490A"><enum>(b)</enum><header>Policies and
procedures</header><text display-inline="yes-display-inline">Prior to
exercising any authority under this section, the Corporation shall establish
policies and procedures governing the issuance of guarantees. The terms and
conditions of any guarantees issued shall be established by the Corporation
with the approval of the Secretary of the Treasury and the Financial Stability
Oversight Council.</text>
</subsection><subsection id="HBBF563568AE149F2BCC69AF89F43D970"><enum>(c)</enum><header>Funding</header>
<paragraph id="H178BFC5C762A479B8C4289EE41DA4A35"><enum>(1)</enum><header>Administrative
expenses and cost of guarantees</header><text>A program established pursuant to
this section shall require funding only for the purposes of paying
administrative expenses and for paying a guarantee in the event that a
guaranteed loan defaults.</text>
</paragraph><paragraph id="H2F2298A20B75490B9A4070BBBB05B685"><enum>(2)</enum><header>Fees and other
charges</header><text>The Corporation shall charge fees or other charges to all
participants in such program established pursuant to this section. To the
extent that a program established pursuant to this section has expenses or
losses, the program will be funded entirely through fees or other charges
assessed on participants in such program.</text>
</paragraph><paragraph id="HB1D18915D2814EC1B9297C4E4237F6D2"><enum>(3)</enum><header>Excess
funds</header><text>If at the conclusion of such program there are any excess
funds collected from the fees associated with such program, the funds will be
deposited into the Systemic Resolution Fund established pursuant to section
1609(n).</text>
</paragraph><paragraph id="H02A30506F5AD470EBE920454F29AB55C"><enum>(4)</enum><header>Authority of
corporation</header><text>For purposes of conducting a program established
pursuant to this section, the Corporation—</text>
<subparagraph id="H752CDBE0E6CE4746BDF44B751432536A"><enum>(A)</enum><text>may borrow funds
from the Secretary of the Treasury, which shall be repaid in full with interest
through fees and charges paid by participants in accordance with paragraph (2),
and, to the extent such additional amounts are necessary, assessments on large
financial companies under paragraph (5), and there shall be available to the
Corporation amounts in the Treasury not otherwise appropriated, including for
the payment of reasonable administrative expenses;</text>
</subparagraph><subparagraph id="HC6399BD8B6C140529D3DDD365A38E0E1"><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; and</text>
</subparagraph><subparagraph id="H15777EFB039249A88EB28E844D29825D"><enum>(C)</enum><text>may not borrow
funds from the Systemic Resolution Fund established pursuant to section
1609(n).</text>
</subparagraph></paragraph><paragraph id="HBC8F2DFCEBD340AC8B52778746A3F523"><enum>(5)</enum><header>Back-up special
assessment</header><text>To the extent that the funds collected pursuant to
paragraph (2) are insufficient to cover any losses or expenses (including
monies borrowed pursuant to paragraph (4)) arising from a program established
pursuant to this section, the Corporation shall impose a special assessment
on—</text>
<subparagraph id="H72FD8D97617F43148AE29BCFEE182E9F"><enum>(A)</enum><text>large financial
companies subject to assessments under section 1609(n) (whether or not such
company participated in such program) in the manner provided in such section
1609(n); and</text>
</subparagraph><subparagraph id="H0A75A92F4AC54EA58CE79BBE166A4FE4"><enum>(B)</enum><text>participants in
the program that are not large financial companies paying assessments pursuant
to section 1609(n).</text>
</subparagraph></paragraph></subsection><subsection id="H1912AFA1F9714C099905DED11682663F"><enum>(d)</enum><header>Plan for
maintenance or increase of lending</header><text display-inline="yes-display-inline">In connection with any application or
request to participate in such program authorized pursuant to this section, a
solvent company seeking to participate in such program shall be required to
submit to the Corporation a plan detailing how the use of such guaranteed funds
will facilitate the increase or maintenance of such solvent company’s level of
lending to consumers or small businesses.</text>
</subsection><subsection id="HB4B7A7FAA2344970AC16865B504F45E1"><enum>(e)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions apply:</text>
<paragraph id="H5CA8FE6CB40B40C4B1EE04E5BF303466"><enum>(1)</enum><header>Activities that
are financial in nature</header><text display-inline="yes-display-inline">The
term <term>activities that are financial in nature</term> means activities that
are determined to be financial in nature, or incidental to such activities,
under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k))
and activities that are identified for stricter prudential standards under
section 1106.</text>
</paragraph><paragraph id="H9D2C4B5C777741F18A783DFC36B41B5A"><enum>(2)</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="H798CA10B696340158D7A33904469E36A"><enum>(3)</enum><header>Corporation</header><text>The
term <term>Corporation</term> means the Federal Deposit Insurance
Corporation.</text>
</paragraph><paragraph id="H28FB790B4FCF4AAB947F6E8D96DAEDA3"><enum>(4)</enum><header>Insured
depository institution</header><text>The term <term>insured depository
institution</term> shall have the same meaning as in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph><paragraph id="H78A0A79FD70D42BDA93B941D3C999F06"><enum>(5)</enum><header>Solvent</header><text>The
term <term>solvent</term> means assets are more than the obligations to
creditors.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H1AA874D057614815AE8FD0F7A6E2A4AB"><enum>(f)</enum><header>Sunset of
corporation’s authority</header><text>The Corporation’s authority under
subsections (a) and (c) and the authority to borrow or obligate funds under
section 1609(n) shall expire on December 31, 2013, unless the President
transmits to the Congress a request for renewal of the authority and there is
enacted a joint resolution, as defined in subsection (g).</text>
</subsection><subsection id="H3C186301A58D4FFAA7CAC2CF94B77589"><enum>(g)</enum><header>Joint
resolution</header>
<paragraph id="H55252C6CB4A44463B4B8ECD2EAEFEA9F"><enum>(1)</enum><header>Terms</header><text display-inline="yes-display-inline">For purposes of subsection (f), the term
<quote>joint resolution</quote> means only a joint resolution which is
introduced within a 2-day period beginning on the date on which the President
transmits the request to the Congress under subsection (f), and—</text>
<subparagraph id="H189A90FF200C486D850D3DC574722EDA"><enum>(A)</enum><text>which does not
have a preamble;</text>
</subparagraph><subparagraph id="H7A2B0967AA8E43EC95FDBE0C20C01245"><enum>(B)</enum><text>the matter after
the resolving clause of which is as follows: <quote>That Congress approves the
request for renewal of authority provided under sections 1108 and 1609(n) of
the Financial Stability Improvement Act of 2009 as submitted by the President
on _______</quote>, the blank space being filled in with the appropriate date;
and</text>
</subparagraph><subparagraph id="HFE9B0280099C40AAB8F1D3C6FA9901A6"><enum>(C)</enum><text>the title of which
is as follows: <quote>Joint resolution approving the renewal of financial
stabilization authority.</quote>.</text>
</subparagraph></paragraph><paragraph id="HA776AEAE6D4741539FB5E32F81D7585A"><enum>(2)</enum><header>Referral</header><text display-inline="yes-display-inline">A resolution described in paragraph (1)
that is introduced in the House of Representatives shall be referred to the
Committee on Financial Services of the House of Representatives. A resolution
described in paragraph (1) introduced in the Senate shall be referred to the
Committee on Banking, Housing, and Urban Affairs of the Senate.</text>
</paragraph><paragraph id="H2FA5EB3D7E884AEB88E741CE3AD08063"><enum>(3)</enum><header>Discharge</header><text>If
the committee to which a resolution described in paragraph (1) is referred has
not reported such resolution (or an identical resolution) by the end of the
2-day period beginning on the date on which the President transmits the request
to the Congress under subsection (f), such committee shall be, at the end of
such period, discharged from further consideration of such resolution, and such
resolution shall be placed on the appropriate calendar of the House
involved.</text>
</paragraph><paragraph id="HC0B2D8DB051C4165B385C05C4B85BFD6"><enum>(4)</enum><header>Consideration</header>
<subparagraph id="H79939B3446C841F9A91ADAC612FA3D7E"><enum>(A)</enum><header>In
general</header><text>On or after the day after the date on which the committee
to which such a resolution is referred has reported, or has been discharged
(under paragraph (3)) from further consideration of, such a resolution, it is
in order (even though a previous motion to the same effect has been disagreed
to) for any Member of the respective House to move to proceed to the
consideration of the resolution. A Member may make the motion only on the day
after the calendar day on which the Member announces to the House concerned the
Member’s intention to make the motion, except that, in the case of the House of
Representatives, the motion may be made without such prior announcement if the
motion is made by direction of the committee to which the resolution was
referred. All points of order against the resolution (and against consideration
of the resolution) are waived. The motion is highly privileged in the House of
Representatives and is privileged in the Senate and is not debatable. The
motion is not subject to amendment, or to a motion to postpone, or to a motion
to proceed to the consideration of other business. 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
respective House shall immediately proceed to consideration of the joint
resolution without intervening motion, order, or other business, and the
resolution shall remain the unfinished business of the respective House until
disposed of.</text>
</subparagraph><subparagraph id="H48A8E487FAF7496F8B0043160B230B20"><enum>(B)</enum><header>Debate</header><text>Debate
on the resolution, and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 2 hours, which shall be divided
equally between those favoring and those opposing the resolution. An amendment
to the resolution is not in order. A motion to limit further debate is in order
and not debatable. A motion to postpone, or a motion to proceed to the
consideration of other business, or a motion to recommit the resolution is not
in order. A motion to reconsider the vote by which the resolution is agreed to
or disagreed to is not in order.</text>
</subparagraph><subparagraph id="HCB2F60A6BCC24542BFA080F9314F212E"><enum>(C)</enum><header>Vote</header><text>Immediately
following the conclusion of the debate on a resolution described in paragraph
(1) and a single quorum call at the conclusion of the debate, if requested in
accordance with the rules of the appropriate House, the vote on final passage
of the resolution shall occur.</text>
</subparagraph><subparagraph id="HBFE6F59ED57A4EEDB3CF939AE55A479C"><enum>(D)</enum><header>Rules
appeals</header><text>Appeals of the decisions of the Chair relating to the
application of the rules of the Senate or the House of Representatives, as the
case may be, to the procedure relating to a resolution described in paragraph
(1) shall be decided without debate.</text>
</subparagraph></paragraph><paragraph id="HCDA98CF789F74785A51BF014756B546B"><enum>(5)</enum><header>Consideration by
other house</header>
<subparagraph id="H941121312DB64B8183E7CE75334D4456"><enum>(A)</enum><header>In
general</header><text>If, before the passage by one House of a resolution of
that House described in paragraph (1), that House receives from the other House
a resolution described in paragraph (1), then the following procedures shall
apply:</text>
<clause id="H2155363FEC264F82AC10F6F1B7254C21"><enum>(i)</enum><text>The
resolution of the other House shall not be referred to a committee and may not
be considered in the House receiving it except in the case of final passage as
provided in clause (ii)(II).</text>
</clause><clause id="HFE537FFD64BF4831A91A58157B494020"><enum>(ii)</enum><text>With respect to a
resolution described in paragraph (1) of the House receiving the
resolution—</text>
<subclause id="H1C6D8C368D2144749D73EBFC82553EAB"><enum>(I)</enum><text>the procedure in
that House shall be the same as if no resolution had been received from the
other House; but</text>
</subclause><subclause id="H78823008F31D4D44BA20C4AD8A07C03D"><enum>(II)</enum><text>the vote on final
passage shall be on the resolution of the other House.</text>
</subclause></clause></subparagraph><subparagraph id="HF387931B775643A686C2007565CF69C8"><enum>(B)</enum><header>Consideration</header><text>Upon
disposition of the resolution received from the other House, it shall no longer
be in order to consider the resolution that originated in the receiving
House.</text>
</subparagraph></paragraph><paragraph id="H669AAAB790A649EF8C5DCA79B1C4716F"><enum>(6)</enum><header>Rules of the
Senate and House</header><text>This subsection is enacted by the
Congress—</text>
<subparagraph id="H2A6198CB5DAB4868B50A2D57F00A7051"><enum>(A)</enum><text>as an exercise of
the rulemaking power of the Senate and House of Representatives, respectively,
and as such it is deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in that House in
the case of a resolution described in paragraph (1), and it supersedes other
rules only to the extent that it is inconsistent with such rules; and</text>
</subparagraph><subparagraph id="HEFE17D3714724D298CEFE3E8EF4F1109"><enum>(B)</enum><text>with full
recognition of the constitutional right of either House to change the rules (so
far as relating to the procedure of that House) at any time, in the same
manner, and to the same extent as in the case of any other rule of that
House.</text>
</subparagraph></paragraph><paragraph id="H0294D06D77AC4429914B12AF1F77F4E4"><enum>(7)</enum><header>Effective
period</header><text display-inline="yes-display-inline">The Presidential
request referred to in paragraph (1) shall specify the period of time that such
authority is extended and the adoption of the joint resolution shall extend
such powers for such period of time.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC0229FB150164CFC867872954288070C" section-type="subsequent-section"><enum>1110.</enum><header>Corporation must
receive warrants when paying or risking taxpayer funds</header>
<subsection id="H266E4B2368034BC789327F706242725D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Federal Deposit
Insurance Corporation (hereinafter in this section referred to as the
<quote>Corporation</quote>) may not provide any payment, credit extension, or
guarantee, or make any such commitment under the authority of section 1109 or
1604, unless the Corporation receives from the financial company for which the
credit extension or guarantee is intended, as fair market value consideration
for such payment, credit extension or guarantee—</text>
<paragraph id="H17F61323031F445998228152BBE34C30"><enum>(1)</enum><text>in the case of a
financial company, the securities of which are traded on a national securities
exchange, a warrant giving the right to the Corporation to receive nonvoting
common stock or preferred stock in such financial institution, or voting stock
with respect to which, the Corporation agrees not to exercise voting power, as
the Corporation determines appropriate; or</text>
</paragraph><paragraph id="H73A0D4DB90FF4BC2A82E6AB609959A67"><enum>(2)</enum><text>in the case of any
financial company other than one described in paragraph (1), a warrant for
common or preferred stock, or a senior debt instrument from such financial
institution, as described in subsection (b)(3).</text>
</paragraph></subsection><subsection id="H1F68046FAF494582A99193F5C90FAE1F"><enum>(b)</enum><header>Terms and
conditions</header><text>The terms and conditions of any warrant or senior debt
instrument required under subsection (a) shall meet the following
requirements:</text>
<paragraph id="H8D66431914DE4BACAFE1B9F2CEC29DB6"><enum>(1)</enum><header>Purposes</header><text>Such
terms and conditions shall, at a minimum, be designed—</text>
<subparagraph id="HEFAB5A27E1D2474785ECE957E6F4EEA1"><enum>(A)</enum><text>to provide for
reasonable participation by the Corporation, for the benefit of taxpayers, in
equity appreciation in the case of a warrant or other equity security, or a
reasonable interest rate premium, in the case of a debt instrument; and</text>
</subparagraph><subparagraph id="H354D45AFC7E14618B7F22B2E16998585"><enum>(B)</enum><text>to provide
additional protection for the taxpayer against losses from such payment,
extension of credit, or guarantee by the Corporation under this title.</text>
</subparagraph></paragraph><paragraph id="H18AC7146888C461AAE0BF9A685D7A27A"><enum>(2)</enum><header>Authority to
sell, exercise, or surrender</header><text>The Corporation may sell, exercise,
or surrender a warrant or any senior debt instrument received under this
subsection, based on the conditions established under paragraph (1).</text>
</paragraph><paragraph id="HDD8460B64E6943609E2F5F2E48DE9879"><enum>(3)</enum><header>Conversion</header><text>The
warrant shall provide that if, after the warrant is received by the Corporation
under this subsection, the financial company that issued the warrant is no
longer listed or traded on a national securities exchange or securities
association, as described in subsection (a)(1), such warrants shall convert to
senior debt, or contain appropriate protections for the Corporation to ensure
that the Corporation is appropriately compensated for the value of the warrant,
in an amount determined by the Corporation.</text>
</paragraph><paragraph id="H1515F926960C40B89D80BC5A11BC6367"><enum>(4)</enum><header>Protections</header><text>Any
warrant representing securities to be received by the Corporation under this
subsection shall contain anti-dilution provisions of the type employed in
capital market transactions, as determined by the Corporation. Such provisions
shall protect the value of the securities from market transactions such as
stock splits, stock distributions, dividends, and other distributions, mergers,
and other forms of reorganization or recapitalization.</text>
</paragraph><paragraph id="H9CBE3D618E7C4854901625455E430517"><enum>(5)</enum><header>Exercise
price</header><text>The exercise price for any warrant issued pursuant to this
subsection shall be set by the Corporation, in the interest of the
taxpayers.</text>
</paragraph><paragraph id="H17487536F19041E499AB55F311180BA8"><enum>(6)</enum><header>Sufficiency</header><text>The
financial company shall guarantee to the Corporation that it has authorized
shares of nonvoting stock available to fulfill its obligations under this
subsection. Should the financial company not have sufficient authorized shares,
including preferred shares that may carry dividend rights equal to a multiple
number of common shares, the Corporation may, to the extent necessary, accept a
senior debt note in an amount, and on such terms as will compensate the
Corporation with equivalent value, in the event that a sufficient shareholder
vote to authorize the necessary additional shares cannot be obtained.</text>
</paragraph></subsection><subsection id="H9EC184F3B997416EBD528EBA4A9746B8"><enum>(c)</enum><header>Exceptions</header>
<paragraph id="HB44C9BD43B414522AF4AF364AB586A26"><enum>(1)</enum><text>The Corporation
shall establish an exception to the requirements of this section and
appropriate alternative requirements for any participating financial company
that is legally prohibited from issuing securities and debt instruments, so as
not to allow circumvention of the requirements of this section.</text>
</paragraph><paragraph id="HC8297970D629494E91A788F63841B1E5"><enum>(2)</enum><text>If the Corporation
is providing a payment, extension of credit, or guarantee with regard to its
authority under section 1604 and the Corporate determines that it is certain
that at the conclusion of the Resolution Process the shareholders of all
classes shall lose their entire investment and receive nothing therefor, then
the requirements of this section shall not apply.</text>
</paragraph></subsection></section><section id="H5C790EF34F0F4CC6AAB52E0A201B545E"><enum>1111.</enum><header>Examinations
and enforcement actions for insurance and resolutions purposes</header>
<subsection id="H0FB3A5F70A5048B5B6ED4321E32A2DA0"><enum>(a)</enum><header>Examinations for
insurance and resolutions purposes</header><text>Section 10(b)(3) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is amended by striking
<quote>whenever the Board of Directors determines</quote> and all that follows
through the period and inserting <quote>or financial holding company subject to
stricter standards (as defined in section 1000(b)(5) of the Financial Stability
Improvement Act of 2009) whenever the Board of Directors determines a special
examination of any such depository institution is necessary to determine the
condition of such depository institution for insurance or such financial
holding company subject to stricter standards for resolution
purposes.</quote>.</text>
</subsection><subsection id="H9F21BC8928DF4674A06BC97A4CA32A54"><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="H7B9221BA95C84CF18FD828189ABF9295"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HC3661BC187814A868828B6F607B11F19"><enum>(A)</enum><text>at the end of
subparagraph (B), by striking <quote>or</quote>;</text>
</subparagraph><subparagraph id="HD34D38F0FD48438387C21CF09EB14453"><enum>(B)</enum><text>at the end of
subparagraph (C), by striking the period and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="HD8FD1658AD4548EEAD6968A9FDECA179"><enum>(C)</enum><text>by inserting at
the end the following new subparagraph:</text>
<quoted-block id="HDFE7E60874004692B108DAB2671AD0B4" style="OLC">
<subparagraph id="H830D83DAECCD47AF9D80C6D551118BAF"><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.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H85B02CF894014709BD5D235FDED7ACE5"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H32ABEBC721804B0DB16249E109042F2E" style="OLC">
<paragraph id="H561FEA0A1FEB4520B1FD376A2D8EC9DA"><enum>(6)</enum><text>For purposes of
this subsection:</text>
<subparagraph id="H4D2B7CACCBE846F190B6B95B223058FA"><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="HC9768B777E9C4BE7B72CDEC3FC6B490A"><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></section><section display-inline="no-display-inline" id="H82D5E997D60A4BE4909AC08416B75DBF" section-type="subsequent-section"><enum>1112.</enum><header>Study of the
effects of size and complexity of financial institutions on capital market
efficiency and economic growth</header>
<subsection id="H972CFF80EA27407E91615F8643A8B914"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Chairman 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 effect on the efficiency of capital markets, costs imposed
on the financial sector, and on national economic growth, of—</text>
<paragraph id="HCAD2452CE8E04BDBB8C9D56A57EF8A52"><enum>(1)</enum><text>explicit or
implicit limits on the maximum size of banks, bank holding companies, and other
large financial institutions;</text>
</paragraph><paragraph id="H7591C002C0AE4F60B02583EAB00F3D76"><enum>(2)</enum><text>limits on the
organizational complexity and diversification of large financial
institutions;</text>
</paragraph><paragraph id="H88BEE649B265468598C1B2AD2A9C7396"><enum>(3)</enum><text>requirements for
operational separation between business units of large financial institutions
in order to expedite resolution in case of failure;</text>
</paragraph><paragraph id="HEEC1DABBBD7C42FFABC126FD79F6EC2C"><enum>(4)</enum><text>limits on risk
transfer between business units of large financial institutions;</text>
</paragraph><paragraph id="HDCE1EBF859A6418C9AA040225D203070"><enum>(5)</enum><text>requirements to
carry contingent capital or similar mechanisms;</text>
</paragraph><paragraph id="HA53BF7F7AF744C9FA3537DB3851894D2"><enum>(6)</enum><text>limits on
commingling of commercial and financial activities by large financial
institutions;</text>
</paragraph><paragraph id="HDF31533BC120459EBEF7B243396B6073"><enum>(7)</enum><text>segregation
requirements between traditional financial activities and trading or other
high-risk operations in large financial institutions; and</text>
</paragraph><paragraph id="HCD94B0A19BCC48139D101ACB4DF35158"><enum>(8)</enum><text>other limitations
on the activities or structure of large financial institutions that may be
useful to limit systemic risk.</text>
</paragraph><continuation-text continuation-text-level="subsection">The study
shall include recommendations for the optimal structure of any limits
considered in paragraphs (1) through (5) in order to maximize their
effectiveness and minimize their economic impact.</continuation-text></subsection><subsection id="H2ED9CA3CC8A24E099CB6353E39426885"><enum>(b)</enum><header>Report</header><text>Not
later than the end of the 180-day period beginning on the date of the enactment
of this title, the Chairman 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><section display-inline="no-display-inline" id="HD9F658E9BFFE4808BACDFCA58516FAEF" section-type="subsequent-section"><enum>1113.</enum><header>Exercise of Federal
Reserve authority</header>
<subsection id="H0BC3026B2E7B4645A4358AD1A6EB4326"><enum>(a)</enum><header>No decisions by
federal reserve bank presidents</header><text display-inline="yes-display-inline">No provision of this title relating to the
authority of the Board shall be construed as conferring any decision-making
authority on presidents of Federal reserve banks.</text>
</subsection><subsection id="H2717C873DEEA465AAB1311CF6C4E6A0C"><enum>(b)</enum><header>Voting decisions
by board</header><text display-inline="yes-display-inline">The Board of
Governors of the Federal Reserve System shall not delegate the authority to
make any voting decision that the Board is authorized or required to make under
this title in contravention of section 11(k) of the Federal Reserve Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H3075EE098D324797803B0AD3C633D6A3" section-type="subsequent-section"><enum>1114.</enum><header>Stress
tests</header>
<subsection id="H5460274947DE4F8294FB877064A19450"><enum>(a)</enum><text display-inline="yes-display-inline">A financial holding company subject to
stricter standards shall—</text>
<paragraph id="HDAF1B60F15B745C4855E583C303A57B7"><enum>(1)</enum><text>conduct quarterly
stress tests; and</text>
</paragraph><paragraph id="HBC21299B76544FD6B898688BF661972C"><enum>(2)</enum><text>submit a report on
its quarterly stress test to the head of the primary financial regulatory
agency and to the Board at such time, in such form, and containing such
information as the head of the primary financial regulatory agency may
require.</text>
</paragraph></subsection><subsection id="HDBF054CC72904254BD3C0046CA7732D7"><enum>(b)</enum><text display-inline="yes-display-inline">A financial company that has more than
$10,000,000,000 in total assets and is not a financial holding company subject
to stricter standards shall—</text>
<paragraph id="HD80ACC673D2240FABDB369073433DDC6"><enum>(1)</enum><text>conduct semiannual
stress tests; and</text>
</paragraph><paragraph id="H8F58AB2A415A47E58CFF53E9C876E2F0"><enum>(2)</enum><text>submit a report on
its semiannual stress test to the head of the primary financial regulatory
agency and to the Board at such time, in such form, and containing such
information as the head of the primary financial regulatory agency may
require.</text>
</paragraph></subsection><subsection id="H6C026D06DECD4709B15E7C6DD58FB492"><enum>(c)</enum><text>A stress test
under this section shall provide for testing under each of the following sets
of conditions:</text>
<paragraph id="HA6116A4CAADA439CA0E2EB0C20E73F9B"><enum>(1)</enum><text>Baseline.</text>
</paragraph><paragraph id="HB4EB6467136040FFA834B44AA871BB92"><enum>(2)</enum><text>Adverse.</text>
</paragraph><paragraph id="H3D80022A4A3647B08490EAB19CC779FC"><enum>(3)</enum><text>Severely
adverse.</text>
</paragraph></subsection><subsection id="H7DFED5AF33FD407CB477B5923FF371F3"><enum>(d)</enum><text>The head of each
primary financial regulatory agency, in coordination with the Board, shall
issue regulations to define the term <quote>stress test</quote> for purposes of
this section.</text>
</subsection></section><section display-inline="no-display-inline" id="HB2392464C36D47149BE2B9E4D81FF610" section-type="subsequent-section"><enum>1115.</enum><header>Contingent
Capital</header>
<subsection id="HFAB6B5C449234DE1843C7D0534D13184"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Board, in
coordination with the appropriate primary financial regulatory agency, may
promulgate regulations that require a financial holding company subject to
stricter standards to maintain a minimum amount of long-term hybrid debt that
is convertible to equity when—</text>
<paragraph id="H39F91FD1861D45A9A4C0FDD32D63D048"><enum>(1)</enum><text>a
specified financial company fails to meet prudential standards established by
the agency; and</text>
</paragraph><paragraph id="H9B8D4030AB514B1382D8A663BB72F30B"><enum>(2)</enum><text>the agency has
determined that threats to United States financial system stability make such a
conversion necessary.</text>
</paragraph></subsection><subsection id="H37AC1E16C3ED4AB0842D18A20EF2069F"><enum>(b)</enum><header>Factors to
consider</header><text>In establishing regulations under this section, the
Board shall consider—</text>
<paragraph id="HE368021E72FB4412865244ECC3E4C0B0"><enum>(1)</enum><text>an appropriate
transition period for implementation of a conversion under this section;</text>
</paragraph><paragraph id="HFA5BA82E1DD84DF0967917682BEC5BA0"><enum>(2)</enum><text>capital
requirements applicable to the specified financial company and its
subsidiaries; and</text>
</paragraph><paragraph id="HE023F67BF16945708A2875A396058EFD"><enum>(3)</enum><text>any other factor
that the Board deems appropriate.</text>
</paragraph></subsection><subsection id="H25CC7138C0F0496C865A8B04941BBC5B"><enum>(c)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Chairman of the
Council shall carry out a study to determine an optimal implementation of
contingent capital requirements to maximize financial stability, minimize the
probability of drawing on the Systemic Resolution Fund established under
section 1609(n) in a financial crisis, and minimize costs for financial holding
companies subject to stricter standards. To the extent practicable, the study
shall take place with input from industry participants and international
financial regulators. Such study shall include—</text>
<paragraph id="HE304C1E2CED34CAFA77F6B45EA1F1A04"><enum>(1)</enum><text>an evaluation of
the characteristics and amounts of convertible debt that should be required,
including possible tranche structure;</text>
</paragraph><paragraph id="HE7C779B75DEF46BCB3F419E630F3D4AE"><enum>(2)</enum><text>an analysis of
possible trigger mechanisms for debt conversion, including violation of
regulatory capital requirements, failure of stress tests, declaration of
systemic emergency by regulators, market-based triggers and other trigger
mechanisms;</text>
</paragraph><paragraph id="H00909868E36D4C45832CC7D9AAB289A6"><enum>(3)</enum><text>an estimate of the
costs of carrying contingent capital;</text>
</paragraph><paragraph id="H9DEDD9655AC7430DA2DFD139CA1CF539"><enum>(4)</enum><text>an estimate of the
effectiveness of contingent capital requirements in reducing losses to the
systemic resolution fund in cases of single-firm or systemic failure;
and</text>
</paragraph><paragraph id="HC05068D78CB6412B84FD101E036A4D44"><enum>(5)</enum><text>recommendations
for implementing legislation.</text>
</paragraph></subsection><subsection id="HFA10D41587534721B0EC108323B80EDD"><enum>(d)</enum><header>Report</header><text>Not
later than the end of the 180-day period beginning on the date of the enactment
of this title, the Chairman of Council shall issue a report to the Congress
containing any findings and determinations made in carrying out the study
required under subsection (c).</text>
</subsection></section><section display-inline="no-display-inline" id="H84D7580CFD1E47AFB88A8C662093657D" section-type="subsequent-section"><enum>1116.</enum><header>Restriction on
proprietary trading by designated financial holding companies</header>
<subsection id="H18612BC7F5774D7E8B9C580E70AC56CF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Board
determines that propriety trading by a financial holding company subject to
stricter standards poses an existing or foreseeable threat to the safety and
soundness of such company or to the financial stability of the United States,
the Board may prohibit such company from engaging in propriety trading.</text>
</subsection><subsection id="HF8D1EC6B4BFB4E3BB4B32C2BE62F9481"><enum>(b)</enum><header>Exceptions
permitted</header><text>The Board may exempt from the prohibition of subsection
(a) proprietary trading that the Board determines to be ancillary to other
operations of such company and not to pose a threat to the safety and soundness
of such company or to the financial stability of the United States,
including—</text>
<paragraph id="HEFA4522247F84CCC88E5F1F571449A8B"><enum>(1)</enum><text>making a market in
securities issued by such company;</text>
</paragraph><paragraph id="HA8465CB054FD4D15ACAF8B113EC194DC"><enum>(2)</enum><text>hedging or
managing risk;</text>
</paragraph><paragraph id="HB165965DAE2146A3A2DD51ACF56729F0"><enum>(3)</enum><text>determining the
market value of assets of such company; and</text>
</paragraph><paragraph id="HC97B00A849A842118813A72666863906"><enum>(4)</enum><text>propriety trading
for such other purposes allowed by the Board by rule.</text>
</paragraph></subsection><subsection id="H04C23918BB6A4F2CAE2399EC7DDA6B8C"><enum>(c)</enum><header>Rulemaking
authority</header><text>The primary financial regulatory agencies of banks and
bank holding companies shall jointly issue regulations to carry out this
section.</text>
</subsection><subsection id="H681C75405E7C418F8E54C07EEB2B3BD8"><enum>(d)</enum><header>Effective
date</header><text>The provisions of this section shall take effect after the
end of the 180-day period beginning on the date of the enactment of this
title.</text>
</subsection><subsection id="H9B69501492674EC4B7D12CF7E8B3348E"><enum>(e)</enum><header>Proprietary
trading defined</header><text>For purposes of this section and with respect to
a company, the term <quote>proprietary trading</quote> means the trading of
stocks, bonds, options, commodities, derivatives, or other financial
instruments with the company’s own money and for the company’s own
account.</text>
</subsection></section><section id="HD66C84D7AEDD4B958DF33CE6A730B1F8"><enum>1117.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">The authorities
granted to agencies under this subtitle are in addition to any rulemaking,
report-related, examination, enforcement, or other authority that such agencies
may have under other law and in no way shall be construed to limit such other
authority, except that any standards imposed for financial stability purposes
under this subtitle shall supersede any conflicting less stringent requirements
of the primary financial regulatory agency but only the extent of the
conflict.</text>
</section></subtitle><subtitle id="HB86AB7B76A01404389D5685BC1F67DD3"><enum>C</enum><header>Improvements to
supervision and regulation of Federal depository institutions </header>
<section id="HDDA08482BF5041B58B23924739528709"><enum>1201.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph id="H51971E267B81404495D8EE590118A5FC"><enum>(1)</enum><header>Board of
governors</header><text>The term <term>Board of Governors</term> means the
Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph id="H186F13BF297F46868506201B5F36C4D4"><enum>(2)</enum><header>Corporation</header><text>The
term <term>Corporation</term> means the Federal Deposit Insurance
Corporation.</text>
</paragraph><paragraph id="H52907609459642DD9F1D29D32F2B129E"><enum>(3)</enum><header>Office of the
comptroller of the currency</header><text>The term <term>Office of the
Comptroller of the Currency</term> means the office established by section 324
of the Revised Statutes (12 U.S.C. 1).</text>
</paragraph><paragraph id="H57E3B851D3E54D67BDDDACFB719FE8FB"><enum>(4)</enum><header>Office of thrift
supervision</header><text>The term <term>Office of Thrift Supervision</term>
means the office established by section 3 of the Home Owners’ Loan Act (12
U.S.C. 1462a).</text>
</paragraph><paragraph id="H5481851BFB7942189F47374D07305541"><enum>(5)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="H9982E4A811194C108E9DBFA6AE7DA225"><enum>(6)</enum><header>Transfer
date</header><text>The term <term>transfer date</term> has the meaning provided
in section 1205.</text>
</paragraph><paragraph id="H4370FA79E29F43318CF4F2B590374EDF"><enum>(7)</enum><header>Certain other
terms</header><text>The terms <term>affiliate</term>, <term>bank holding
company</term>, <term>control</term> (when used with respect to a depository
institution), <quote>depository institution</quote>, <quote>Federal banking
agency</quote>, <quote>Federal savings association</quote>,
<quote>including</quote>, <quote>insured branch</quote>, <quote>insured
depository institution</quote>, <quote>savings association</quote>,
<quote>State savings association</quote>, and <quote>subsidiary</quote> have
the same meanings as in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph></section><section id="H1EDC9ED526D042E8BC6BFE87AA278CDC"><enum>1202.</enum><header>Amendments to
the Home Owners’ Loan Act relating to transfer of functions</header>
<subsection id="HFD77C45FFCDB41B296D9D94E9763089C"><enum>(a)</enum><header>Amendments to
section 2</header><text>Section 2 of the Home Owners’ Loan Act (12 U.S.C. 1462)
is amended—</text>
<paragraph id="H507CA174724D4C9297FC4F1C36D4113C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block id="H16F39E86E04F4213BBC0DA9528671F79" style="OLC">
<paragraph id="HD2A5EC07E6EA415A819F592D4843D2AB"><enum>(1)</enum><header>Board of
governors</header><text>The term <term>Board of Governors</term> means the
Board of Governors of the Federal Reserve
System.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5526354212C24317A327BA0A6265CFE5"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (3) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBFFC9CB3D2284E219B3927859F85369C" style="OLC">
<paragraph id="H3E2CBC59EBB4425DB61C807BB1EA5036"><enum>(3)</enum><text display-inline="yes-display-inline">[repealed]</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4FDD5C09DBC341CA8BAF787308233130"><enum>(b)</enum><header>Amendments to
section 3</header><text>Section 3 of the Home Owners’ Loan Act (12 U.S.C.
1462a) is amended—</text>
<paragraph id="H7DB8835CB71E4AB9851441B11F5BE809"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following new subsection:</text>
<quoted-block id="HCC48A56025E74172A502D594DA5C9E68" style="OLC">
<subsection id="H6487EFA2D82E445E8A9A9DAE94F3D174"><enum>(a)</enum><header>Establishment of
division of thrift supervision</header><text>To carry out the purposes of this
Act, there is hereby established the Division of Thrift Supervision, which
shall be a division within the Office of the Comptroller of the
Currency.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC141B251B6E7478582BEFA4A9C6F7DA9"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="HE39F085567EC4A94B2AE790BD4766A30"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="H72CD37027D0D41278CF08C72BCECAEE3" style="OLC">
<paragraph id="HEDB848583D3F4F9A93404A6F9487F1A6"><enum>(1)</enum><header>In
general</header><text>The Division of Thrift Supervision shall be headed by a
Senior Deputy Comptroller of the Currency who shall be subject to the general
oversight of the Comptroller of the
Currency.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H807F580C6E3F4849924F782BBA010E2E"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>Director</quote> and inserting <quote>Comptroller of the
Currency</quote>; and</text>
</subparagraph><subparagraph id="H4000F06511354BF1BC42E2FF8827FEBA"><enum>(C)</enum><text>by striking
paragraphs (3) and (4);</text>
</subparagraph></paragraph><paragraph id="H494F203B44F74BC591211654DDD6568E"><enum>(3)</enum><text>by striking
subsections (c), (d), and (e) and inserting the following new
subsection:</text>
<quoted-block id="H41715BB813F6451984E17265B67977DE" style="OLC">
<subsection id="H9B50F8F4DCE64DB58BBEBF612E127BB1"><enum>(c)</enum><header>Powers of the
comptroller of the currency</header><text>The Comptroller of the Currency shall
have all the powers, duties, and functions transferred by the Financial
Stability Improvement Act of 2009 to the Comptroller of the Currency to carry
out this
Act.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H966A988752144787BBC773F5BFEC79F8"><enum>(4)</enum><text>by redesignating
subsections (f) and (i) as subsections (d) and (e), respectively;</text>
</paragraph><paragraph id="HE81033A960544DE38DFAE24007C06C20"><enum>(5)</enum><text>in subsection (d)
(as so redesignated), by striking <quote>Director</quote> each place such term
appears and inserting <quote>Comptroller of the Currency</quote>;</text>
</paragraph><paragraph id="H6E3BC86B4C184737992B5B1FA197404E"><enum>(6)</enum><text>by striking
subsections (g), (h), and (j); and</text>
</paragraph><paragraph id="H558CCE9463674F459D430FBB08B33F58"><enum>(7)</enum><text>in subsection (e)
(as so redesignated), by striking <quote>compensation of the Director and other
employees of the Office and all other expenses thereof</quote> and inserting
<quote>expenses incurred by the Comptroller of the Currency in carrying out
this Act</quote>.</text>
</paragraph></subsection><subsection id="HAA9FB9729DF940E2A06F5EEC65D55A46"><enum>(c)</enum><header>Amendments to
section 4</header><text>Section 4 of the Home Owners’ Loan Act (12 U.S.C. 1463)
is amended by striking <quote>Director</quote> each time it appears and
inserting <quote>Comptroller of the Currency</quote>.</text>
</subsection><subsection id="H292A6A5A70B944A9A6C23335F5C826B5"><enum>(d)</enum><header>Amendments to
section 5</header>
<paragraph id="H23E5121C2DA24ACC9413936EE50AC165"><enum>(1)</enum><header>Universal</header><text>Section
5 of the Home Owners’ Loan Act (12 U.S.C. 1464) is amended—</text>
<subparagraph id="H1764BA3E0DF84A4383DE28411AC8AA87"><enum>(A)</enum><text>by striking
<quote>Director</quote> and <quote>Director of the Office of Thrift
Supervision</quote> each place such terms appear and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph id="H515DEDD2E52348CAA30A6ED2D744C146"><enum>(B)</enum><text>by striking
<quote>Director’s</quote> each place such term appears and inserting
<quote>Comptroller of the Currency’s</quote>.</text>
</subparagraph></paragraph><paragraph id="HE446D0FB249B4B1B8A7966A4D2E4CB01"><enum>(2)</enum><header>Specific
provisions</header>
<subparagraph id="HCE6F1E1AD9DF4A89994F880F81C163E0"><enum>(A)</enum><text>Section 5(d)(2)(E)
of the Home Owners’ Loan Act is amended by striking <quote>or the Resolution
Trust Corporation, as appropriate,</quote> each place such term appears.</text>
</subparagraph><subparagraph id="HDD565F40181847DF9C58635828A03815"><enum>(B)</enum><text>Section 5(d)(3)(B)
of the Home Owners’ Loan Act is amended by striking <quote>or the Resolution
Trust Corporation</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HBA11E349A410460AA26FF5177B75B583"><enum>(e)</enum><header>Amendments to
sections 8 and 9</header><text>Sections 8 and 9 of the Home Owners’ Loan Act
(12 U.S.C. 1466a and 1467) are each amended by striking <quote>Director</quote>
each place such term appears and inserting <quote>Comptroller of the
Currency</quote>.</text>
</subsection><subsection id="HD4A490CDFB4A434190AC8954EAD97FA3"><enum>(f)</enum><header>Technical and
conforming amendments</header>
<paragraph id="HA523D04B26A5483988C49CFF14D47C62"><enum>(1)</enum><header>Section
3</header><text display-inline="yes-display-inline">The heading for section 3
of the Home Owners’ Loan Act is amended by striking <quote><header-in-text level="section" style="OLC">Director of the Office of Thrift
Supervision</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Division of Thrift Supervision</header-in-text></quote>.</text>
</paragraph><paragraph id="H5A670C6A496D49538CFE830B5B657F13"><enum>(2)</enum><header>Section
5</header><text>The heading for paragraph (2)(E)(ii) of section 5(d) of the
Home Owners’ Loan Act and the heading for paragraph (3)(B) of such section are
each amended by striking <quote>OR RTC</quote>.</text>
</paragraph></subsection><subsection id="HB63684A06E6E4890B1A454BF105ABD86"><enum>(g)</enum><header>Clerical
amendment</header><text>The table of contents section for the Home Owners’ Loan
Act is amended by striking the item relating to section 3 and inserting the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="HDE57B10175D44819BCCD5496E5A66420" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 3. Division of Thrift
Supervision.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5552589DE68247EBAF3AF40776E59031"><enum>1203.</enum><header>Amendments to
the revised statutes</header>
<subsection id="HD06945F04B164BB7863AD324AD39ED40"><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 id="HC202A2A3D11B4530B5CAA4AA63E0B6C8" style="OLC">
<section id="H0FEB2020BEAE411BB09F1E91BBA8732B"><enum>324.</enum><header>Comptroller of
the Currency</header><text display-inline="no-display-inline">There shall be in
the Department of the Treasury a bureau, the chief officer of which bureau
shall be called the Comptroller of the Currency, and shall perform the duties
of the Comptroller of the Currency under the general direction of the Secretary
of the Treasury. The Comptroller of the Currency shall have the same authority
over matters as were vested in the Director of the Office of Thrift Supervision
or the Office of Thrift Supervision on the day before the date of enactment of
the Financial Stability Improvement Act of 2009 other than those authorities
with respect to savings and loan holding companies and any affiliate of any
such company (other than a savings association) as were vested in the Director
of the Office of Thrift Supervision on such date. 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>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0D445775E69848E0AAE729BE6CF8E236"><enum>(b)</enum><header>Amendments to
section 327</header><text>Section 327 of the Revised Statutes of the United
States (12 U.S.C. 4) is amended to read as follows:</text>
<quoted-block id="H890EEF1EDCAC45D28FEA0961D8E0C3D2" style="OLC">
<section id="H78E9BAD86F9641C2874502172C054311"><enum>327</enum><header>Deputy
comptrollers</header>
<subsection id="HB12058A642EF40819F5A4FB6E425A103"><enum>(a)</enum><header>Appointment</header><text>The
Secretary of the Treasury shall appoint no more than 5 Deputy Comptrollers of
the Currency—</text>
<paragraph id="H26D3A95CA9B2430EA13A7DA532AE8AE2"><enum>(1)</enum><text display-inline="yes-display-inline">1 of whom shall be designated the Senior
Deputy Comptroller for National Banks, who shall oversee the regulation and
supervision of national banks; and</text>
</paragraph><paragraph id="H31619C3F2023425580D4C2FCCE099335"><enum>(2)</enum><text display-inline="yes-display-inline">1 of whom shall be designated the Senior
Deputy Comptroller for Thrift Supervision, who shall oversee the regulation and
supervision of Federal savings associations.</text>
</paragraph></subsection><subsection id="H5C65A484FE0848A88A09FEE4D9B7D504"><enum>(b)</enum><header>Pay</header><text>The
Secretary of the Treasury shall fix the compensation of the Deputy Comptrollers
of the Currency and provide such other benefits as the Secretary may determine
to be appropriate.</text>
</subsection><subsection id="HE3984BEB02D44A0182399D1B9D14B096"><enum>(c)</enum><header>Oath of office;
Duties</header><text>Each Deputy Comptroller shall take the oath of office and
shall perform such duties as the Comptroller of the Currency shall
direct.</text>
</subsection><subsection id="H171E4B51F6614F7EB95C71BB970AC515"><enum>(d)</enum><header>Service as
acting comptroller</header><text>During a vacancy in the office or during the
absence or disability of the Comptroller, each Deputy Comptroller shall possess
the power and perform the duties attached by law to the Office of the
Comptroller under such order of succession as the Comptroller shall
direct.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE620B6BB48FF47098B81AEED8BB8A526"><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 <quote>or any Federal savings
association</quote> before the period at the end.</text>
</subsection><subsection id="H37B787DB0F9247F594D66B4035A8DD11"><enum>(d)</enum><header>Amendment to
section 5240</header><text>The fourth sentence of the second undesignated
paragraph of Section 5240 of the Revised Statutes of the United States (12
U.S.C. 481) is amended by striking <quote>Secretary of the Treasury;</quote>
and all that follows through the end of the sentence, and inserting
<quote>Secretary of the Treasury; the employment and compensation of examiners,
chief examiners, reviewing examiners, assistant examiners, and of the other
employees of the office of the Comptroller of the Currency whose compensation
is and shall be paid from assessments on banks or affiliates thereof or from
other fees or charges imposed pursuant to this subchapter shall be set and
adjusted pursuant 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></text>
</subsection><subsection id="HDEC82855C37345118BC3370807CA411D"><enum>(e)</enum><header>Amendment to
section 5240</header><text>The first sentence in the first undesignated
paragraph of Section 5240 of the Revised Statutes of the United States (12
U.S.C. 482) is amended by inserting <quote>pursuant to chapter 71 of title 5,
United States Code,</quote> after <quote>shall,</quote>.</text>
</subsection></section><section id="H6BF351D951E54EB5A9E70E5010BCD5E9"><enum>1204.</enum><header>Power and
duties transferred</header>
<subsection id="H9700EA717AB94C31BF8E6206A427F073"><enum>(a)</enum><header>Director of the
office of thrift supervision</header>
<paragraph id="H82E9AEAE58B24847BBC9A025F0CC9650"><enum>(1)</enum><header>Transfer of
functions</header><text>Except as otherwise provided in this subtitle, all
functions of the Director of the Office of Thrift Supervision are transferred
to the Office of the Comptroller of the Currency.</text>
</paragraph><paragraph id="H504B499376DA4DD3BEA8278D71CBDC36"><enum>(2)</enum><header>Comptroller’s
authority</header><text display-inline="yes-display-inline">Except as otherwise
provided in this subtitle, the Comptroller of the Currency shall succeed to all
powers, authorities, rights, and duties that were vested in the Director of the
Office of Thrift Supervision under Federal law, including the Home Owners’ Loan
Act, on the day before the transfer date other than those powers, authorities,
rights, and duties with respect to savings and loan holding companies and any
affiliate of any such company (other than a savings association) as were vested
in the Director of the Office of Thrift Supervision on such date.</text>
</paragraph><paragraph id="H60AF5FEAEFDE47449BE6AE3D3C8D0054"><enum>(3)</enum><header>Functions
relating to supervision of state savings associations</header>
<subparagraph id="H3334862AD14748058C8EEDD863779B92"><enum>(A)</enum><header>Transfer of
functions</header><text>All functions of the Director of the Office of Thrift
Supervision relating to the supervision and regulation of State savings
associations are transferred to the Corporation.</text>
</subparagraph><subparagraph id="H94077F537A0C4A8E8390210C9E414D88"><enum>(B)</enum><header>Corporation’s
authority</header><text>The Corporation shall succeed to all powers,
authorities, rights, and duties that were vested in the Director of the Office
of Thrift Supervision under Federal law, including the Home Owners’ Loan Act,
on the day before the transfer date, relating to the supervision and regulation
of State savings associations.</text>
</subparagraph></paragraph></subsection><subsection id="HEEA958C657F54D5F939168BEC727783F"><enum>(b)</enum><header>Appropriate
federal banking agency</header><text>Section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813) is amended in subsection (q)—</text>
<paragraph id="H07701D4B16F24DEDA7E5EE46D72AE926"><enum>(1)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block id="H9A83FDEBA48043FF8982D11F03E144CE" style="OLC">
<paragraph id="H53FE6F4B997C4D96B7699CEDBEF0BE19"><enum>(1)</enum><text>the Comptroller of
the Currency in the case of any national bank, Federal savings association or
any Federal branch or agency of a foreign
bank;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6E102F5CDFAD4CB0B15A7B710A032F65"><enum>(2)</enum><text>in paragraph
(2)(F), by adding <quote>and</quote> at the end after the semicolon;</text>
</paragraph><paragraph id="H6142DFB5C501428EB6158FBF8C890E39"><enum>(3)</enum><text>by amending
paragraph (3) to read as follows:</text>
<quoted-block id="H765290B078A14F61837452FA79001979" style="OLC">
<paragraph id="H532E50CEB5B24889908AF847CA4B9E8F"><enum>(3)</enum><text>the Federal
Deposit Insurance Corporation in the case of a State nonmember insured bank, a
State savings association or a foreign bank having an insured
branch.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCA7369728AA340F0BBA560593DE6D813"><enum>(4)</enum><text>by striking
paragraph (4).</text>
</paragraph></subsection><subsection id="H6F23E0755EE54112BA04CEDE5A9FCF55"><enum>(c)</enum><header>Transfer of
consumer financial protection functions</header><text>Nothing in subsection (a)
or (b) shall affect any transfer of consumer financial protection functions of
the Comptroller of the Currency and the Director of the Office of Thrift
Supervision to the Consumer Financial Protection Agency as provided in the
Consumer Financial Protection Agency Act of 2009.</text>
</subsection><subsection id="H9491A6D588134F939CD9E454EE0125AF"><enum>(d)</enum><header>Effective
date</header><text>Subsections (a) and (b) shall become effective on the
transfer date.</text>
</subsection></section><section id="H4544EB8C6C584DF9B22E082593B2EB2E"><enum>1205.</enum><header>Transfer
date</header>
<subsection id="H5F9613242DC944E88AFC19D5E8DF9114"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b), the date for the
transfer of functions to the Office of the Comptroller of the Currency and the
Corporation under section 1204 shall be 1 year after the date of enactment of
this title.</text>
</subsection><subsection id="H120A9D5D05764FA4B0EE23BB1BDADD0A"><enum>(b)</enum><header>Extension
permitted</header>
<paragraph id="HFAC81F0CD4674BB290A1745709BBF4DE"><enum>(1)</enum><header>Notice
required</header><text>The Secretary, in consultation with the Comptroller of
the Currency and the Director of the Office of Thrift Supervision, may
designate a calendar date for the transfer of functions of the Office of Thrift
Supervision to the Office of the Comptroller of the Currency, and the
Corporation under section 1204 that is later than 1 year after the date of
enactment of this title if the Secretary—</text>
<subparagraph id="HA3C36EDC8C9D4137849CEC8624FCDB9B"><enum>(A)</enum><text>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>
<clause id="H7B0233245DBC43CBB8349F5776311A8A"><enum>(i)</enum><text>a
written determination that orderly implementation of this subtitle is not
feasible on the date that is 1 year after the date of enactment of this
subtitle;</text>
</clause><clause id="HEFCC2F80BC9D4F28AF3CD6C1D08F8E7C"><enum>(ii)</enum><text>an
explanation of why an extension is necessary for the orderly implementation of
this subtitle; and</text>
</clause><clause id="H95D655CEB3144D83A023C411F90836B8"><enum>(iii)</enum><text>a
description of the steps that will be taken to effect an orderly and timely
implementation of this subtitle within the extended time period; and</text>
</clause></subparagraph><subparagraph id="H030ECE70EE4F4ED68C10AB41FAFC0A7D"><enum>(B)</enum><text>publishes notice
of that designated later date in the Federal Register.</text>
</subparagraph></paragraph><paragraph id="HC8892784E66B42D185B7DA2E284C42E9"><enum>(2)</enum><header>Extension
limited</header><text>In no case shall any date designated under paragraph (1)
be later than 18 months after the date of enactment of this subtitle.</text>
</paragraph><paragraph id="HC679D8DB52274B8EA3D2D1A46FF9834F"><enum>(3)</enum><header>Effect on
references to <quote>transfer date</quote></header><text>If the Secretary takes
the actions provided in paragraph (1) for designating a date for the transfer
of functions to the Office of the Comptroller of the Currency, and the
Corporation under section 1204, references in this title to <quote>transfer
date</quote> shall mean the date designated by the Secretary.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H4DFA5C0AF7944A1DADE2F460AC6AD9E9" section-type="subsequent-section"><enum>1206.</enum><header>Expiration of term
of comptroller</header>
<subsection id="H2FA6B00066C84E399ECD19A7546925C3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
section 325 of the Revised Statutes of the United States, the term of the
person serving as Comptroller on the date of the enactment of this title shall
terminate as of such date.</text>
</subsection><subsection id="HE529D47742444D52A59A84614D6CA18A"><enum>(b)</enum><header>Acting
comptroller</header><text display-inline="yes-display-inline">Subject to
sections 3345, 3346, and 3347 of title 5, United States Code, the President may
designate a person to serve as acting Comptroller and perform the functions and
duties of the Comptroller until a Comptroller has been appointed and qualified
in the manner established in section 325 of the Revised Statutes of the United
States.</text>
</subsection></section><section id="H9F0FC717B8714EEC80BA7C52EF8566A0"><enum>1207.</enum><header>Office of
Thrift Supervision abolished</header><text display-inline="no-display-inline">Effective 90 days after the transfer date,
the position of Director of the Office of Thrift Supervision and the Office of
Thrift Supervision are abolished.</text>
</section><section id="HF1B9E20D43DF41FBB697D30169798E5B"><enum>1208.</enum><header>Savings
provisions</header>
<subsection id="H3A81034FDC6847ED92A19DC9B81C4783"><enum>(a)</enum><header>Office of thrift
supervision</header>
<paragraph id="HE41C003120484BE0A4F68CC7060A1EE2"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Sections 1204(a) and 1207
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 id="HB1533927F5E147FDB3F78F54FA58251F"><enum>(2)</enum><header>Continuation of
suits</header><text>This subtitle 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 id="H70265EB98DC1442AAE56087F2F862F41"><enum>(A)</enum><text>for any action or
proceeding arising out of a function of the Director of the Office of Thrift
Supervision transferred to the Comptroller of the Currency by this title, the
Comptroller of the Currency or the Office of the Comptroller of the Currency
shall be substituted for the Director of the Office of Thrift Supervision or
the Office of Thrift Supervision, as the case may be, as a party to the action
or proceeding as of the transfer date; and</text>
</subparagraph><subparagraph id="HF289532EEBCB43ABB2575D30B685392A"><enum>(B)</enum><text>for any action or
proceeding arising out of a function of the Director of the Office of Thrift
Supervision transferred to the Corporation by this title, the Chairman of the
Corporation shall be substituted for the Director of the Office of Thrift
Supervision as a party to the action or proceeding as of the transfer
date.</text>
</subparagraph></paragraph></subsection><subsection id="HD8F855AF61A54C95B7F689DFEF7F2C4D"><enum>(b)</enum><header>Continuation of
existing OTS orders, resolutions, determinations, agreements, regulations,
etc</header><text>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 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 those 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 id="H243AE7E3561945E0B983934C18967E5A"><enum>(1)</enum><text>the Office of the
Comptroller of the Currency, in the case of a function of the Director of the
Office of Thrift Supervision transferred to the Comptroller of the Currency,
until modified, terminated, set aside, or superseded in accordance with
applicable law by the Office of the Comptroller of the Currency, by any court
of competent jurisdiction, or by operation of law; and</text>
</paragraph><paragraph id="H78B218383A184B53850037F900DB8F47"><enum>(2)</enum><text>the Corporation,
in the case of a function of 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 display-inline="no-display-inline" id="HAFE28DEF12074103A7FF6BAEDFCAD504"><enum>(c)</enum><header>Continuation of
existing OTS enforcement actions</header><text display-inline="yes-display-inline">Any formal or informal enforcement action
taken by the Director of the Office of Thrift Supervision with respect to a
savings and loan holding company, a subsidiary of a savings and loan holding
company (other than a savings association) or an institution-affiliated party
of a savings and loan holding company or such a subsidiary, that is in effect
on the day before the date of the enactment of this title shall continue to be
effective and enforceable against such company, subsidiary, or
institution-affiliated party after such date as if—</text>
<paragraph id="HF8D701874FF247F6ABADC73B701AC248"><enum>(1)</enum><text>such savings and
loan holding company, or the savings and loan holding company related to such
subsidiary or institution-affiliated party, had been a bank holding company on
the effective date of the final enforcement action; and</text>
</paragraph><paragraph id="HB60A7990803D44FEB2A2D0E1516506F5"><enum>(2)</enum><text>the action had
been taken by the Board, unless otherwise terminated or modified by the
Board.</text>
</paragraph></subsection><subsection id="HF9434ACDA1F0494589FB854EC3904675"><enum>(d)</enum><header>Identification
of regulations continued</header>
<paragraph id="H70C7358CC4BF40F7865917693A7E7B9E"><enum>(1)</enum><header>By office of the
comptroller of the currency</header><text>Not later than the transfer date, the
Comptroller of the Currency shall—</text>
<subparagraph id="H2246A874A69041C595097D735F517910"><enum>(A)</enum><text>after consultation
with the Chairperson of 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 id="H0B6B0415CA854D79A9AA5EB1071264F4"><enum>(B)</enum><text>publish a list of
such regulations in the Federal Register.</text>
</subparagraph></paragraph><paragraph id="H4839704C1005478B97CB04F9FC7A8ACF"><enum>(2)</enum><header>By the
corporation</header><text>Not later than the transfer date, the Corporation
shall—</text>
<subparagraph id="H3D655DA6ACDD40D7A6565FD62B7AB564"><enum>(A)</enum><text>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 id="H1DE66A49EFD541249D9A78154AB80371"><enum>(B)</enum><text>publish a list of
such regulations in the Federal Register.</text>
</subparagraph></paragraph></subsection><subsection id="HB2C0BF7B75D3480F9238C82E7325DEFF"><enum>(e)</enum><header>Status of
regulations proposed or not yet effective</header>
<paragraph id="H744D1EF0B9E04501A46C89935954D0CE"><enum>(1)</enum><header>Proposed
regulations</header><text>Any proposed regulation of the Office of Thrift
Supervision, which that agency, in performing functions transferred by this
title, has proposed before the transfer date but has not published as a final
regulation before that date, shall be deemed to be a proposed regulation of the
Office of the Comptroller of the Currency, or the Corporation, as appropriate,
according to its terms.</text>
</paragraph><paragraph id="HC726EE477B844CC3B2F0250E2C3BB522"><enum>(2)</enum><header>Regulations not
yet effective</header><text>Any interim or final regulation of the Office of
Thrift Supervision, which that agency, 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 Corporation, as appropriate,
according to its terms.</text>
</paragraph></subsection></section><section id="HD1828555375A43C89638263524FA041B"><enum>1209.</enum><header>Regulations
and orders</header><text display-inline="no-display-inline">In addition to any
powers transferred to the Comptroller of the Currency by this title, the
Comptroller of the Currency may prescribe such regulations and issue such
orders as the Comptroller of the Currency determines to be appropriate to carry
out this title and the powers and duties transferred to the Comptroller of the
Currency by this title.</text>
</section><section id="HD740C646ABDB4949A1BA75F188D29EA9"><enum>1210.</enum><header>Coordination
of transition activities</header><text display-inline="no-display-inline">Before the transfer date, the Comptroller of
the Currency shall—</text>
<paragraph id="HA35A5EAAA6824530BF245DF51C5CCFE6"><enum>(1)</enum><text>consult and
cooperate with the Office of Thrift Supervision to facilitate the orderly
transfer of functions to the Comptroller of the Currency;</text>
</paragraph><paragraph id="H6EB8764925A44461A71441DF19452A05"><enum>(2)</enum><text>determine and
redetermine, from time to time—</text>
<subparagraph id="H24B12A0C3E3A4A6199AD6A58C5E990EF"><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 title and ending
on the transfer date;</text>
</subparagraph><subparagraph id="HFB4987689DD74A278F8A664C12D3ACBC"><enum>(B)</enum><text>what personnel are
appropriate to facilitate the orderly transfer of functions by this title;
and</text>
</subparagraph><subparagraph id="HEB4F2A1F8B6643D9B6CE66E6D3F45BEA"><enum>(C)</enum><text>what property and
administrative services are necessary to support the Office of the Comptroller
of the Currency during the period beginning on the date of enactment of this
title and ending on the transfer date; and</text>
</subparagraph></paragraph><paragraph id="H1A4CEFF6835F448EADF6CE8EC85F7FCA"><enum>(3)</enum><text>take such actions
as may be necessary to provide for the orderly implementation of this
title.</text>
</paragraph></section><section id="H4E28F02D1C5D4523B8147A54521044AD"><enum>1211.</enum><header>Interim
responsibilities of office of the comptroller of the currency and office of
thrift supervision</header>
<subsection id="HA5075070BD034F84BAA394AE7F036B72"><enum>(a)</enum><header>In
general</header><text>When requested by the Comptroller of the Currency to do
so before the transfer date, the Office of Thrift Supervision shall—</text>
<paragraph id="H20CA2FFAB2534F0BBF310F1098D8BAA5"><enum>(1)</enum><text>pay to the
Comptroller of the Currency, 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 that the
Comptroller of the Currency determines to be necessary under section
1210(2)(A);</text>
</paragraph><paragraph id="H1F81A82846414B52BE8944EF7F643A1E"><enum>(2)</enum><text>detail to the
Office of the Comptroller of the Currency such personnel as the Comptroller of
the Currency determines to be appropriate under section 1210(2)(B); and</text>
</paragraph><paragraph id="H63E30152DFD042959A7CD0887D674DE0"><enum>(3)</enum><text>make available to
the Office of the Comptroller of the Currency such property and provide the
Office of the Comptroller of the Currency such administrative services as the
Comptroller of the Currency determines to be necessary under section
1210(2)(C).</text>
</paragraph></subsection><subsection id="H226D047C4F34469196DCE2B213284000"><enum>(b)</enum><header>Notice
required</header><text>The Comptroller of the Currency shall give the Office of
Thrift Supervision reasonable prior notice of any request that the Office of
the Comptroller of the Currency intends to make under subsection (a).</text>
</subsection></section><section id="H29F4269F9BE34D24BE467DDE2CC4640A"><enum>1212.</enum><header>Employees
transferred</header>
<subsection id="H3BD2662BD7FF48F3B9ECE6E0B78C53C3"><enum>(a)</enum><header>In
general</header>
<paragraph id="HB92BDCBDAA3D4F1D8FB298CBDC28232E"><enum>(1)</enum><header>OTS
employees</header>
<subparagraph id="HD9D11EA29ABA488BA49AA0570EAA9D67"><enum>(A)</enum><header>In
general</header><text>All employees of the Office of Thrift Supervision shall
be transferred to either the Comptroller of the Currency or the Corporation for
employment.</text>
</subparagraph><subparagraph id="H0C763FDF75884D8C95E5F4B65CFF941A"><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="H15A2A7D2BF12480B9A9D2C1122EE791A"><enum>(i)</enum><text>jointly determine
the number of employees of the Office of Thrift Supervision necessary to
perform or support—</text>
<subclause id="H5CD5EF67AFC747C5B3DFC0E6BA5B7917"><enum>(I)</enum><text>the functions of
the Office of Thrift Supervision that are transferred to the Office of the
Comptroller of the Currency by this title; and</text>
</subclause><subclause id="H9F9D1A37EF4F493BB2127F8D17627A95"><enum>(II)</enum><text>the functions of
the Office of Thrift Supervision that are transferred to the Corporation by
this title;</text>
</subclause></clause><clause id="HED90DCF34B85499B9DB522ADAA1CFF9A"><enum>(ii)</enum><text>consistent with
the numbers determined under clause (ii), jointly identify employees of the
Office of Thrift Supervision for transfer to the Office of the Comptroller of
the Currency or the Corporation in a manner that the Director of the Office of
Thrift Supervision, the Comptroller of the Currency, and the Chairperson of the
Corporation, in their discretion, deem equitable.</text>
</clause></subparagraph></paragraph><paragraph id="HE9C07CBBFDF040DAA3CB0D77FF6BFFEA"><enum>(2)</enum><header>Transfer of
employees performing consumer financial protection
functions</header><text>Nothing in paragraph (1) shall affect the transfer of
employees performing or supporting consumer financial protection functions of
the Comptroller of the Currency and the Director of the Office of Thrift
Supervision to the Consumer Financial Protection Agency as provided in the
Consumer Financial Protection Agency Act of 2009.</text>
</paragraph><paragraph id="H523F9D9AA69A4DF6916D5F1772FAD601"><enum>(3)</enum><header>Appointment
authority for excepted service transferred</header>
<subparagraph id="H92D66F4690FD4A419D641FD4E561E32B"><enum>(A)</enum><header>In
general</header><text>In the case of employees occupying positions in the
excepted 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="H8C9F36D157D7428FB433E55717A4A7B6"><enum>(B)</enum><header>Declining
transfers allowed</header><text>The Office of the Comptroller of the Currency
and the Corporation may decline to accept 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.</text>
</subparagraph></paragraph></subsection><subsection id="HB0F4999B81834A25A22E420473F3CE04"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under this section shall—</text>
<paragraph id="H546A7CB4061B4DAFAAE18CBF89C17D3C"><enum>(1)</enum><text>be transferred not
later than 90 days after the transfer date; and</text>
</paragraph><paragraph id="HB49E9EACC0FF4EE0A07F7E25E195DF89"><enum>(2)</enum><text>receive notice of
his or her position assignment not later than 120 days after the effective date
of his or her transfer.</text>
</paragraph></subsection><subsection id="HB65C18701AED49DD8C5CF4247A0CB73F"><enum>(c)</enum><header>Transfer of
function</header>
<paragraph id="H3525C65C87204E83B0644EA487F9CFE5"><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="H26DC35594752493B9C2AC6C2EA878184"><enum>(2)</enum><header>Priority of this
subtitle</header><text>If any provision of this subtitle conflicts with any
protection provided to transferred employees under section 3503 of title 5,
United States Code, the provisions of this subtitle shall control.</text>
</paragraph></subsection><subsection id="H12948D29C7DC459F8F5FD0D0D8695446"><enum>(d)</enum><header>Employees’
status and eligibility</header><text>The transfer of functions and employees
under this title, and the abolition of the Office of Thrift Supervision, 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="HE19F84BF221C4E5E9740395564546B4A"><enum>(e)</enum><header>Equal status and
tenure positions</header><text>Each employee transferred from the Office of
Thrift Supervision shall be placed in a position at either the Office of the
Comptroller of the Currency or the Corporation with the same status and tenure
as he or she held on the day before the transfer date.</text>
</subsection><subsection id="HB9D7BD1373A8447AB73EFD3B418C4F3F"><enum>(f)</enum><header>No additional
certification requirements</header><text>Examiners transferred to the Office of
the Comptroller of the Currency or the Corporation shall not be subject to any
additional certification requirements before being placed in a comparable
examiner’s position at the Office of the Comptroller of the Currency or the
Corporation examining the same types of institutions as they examined before
they were transferred.</text>
</subsection><subsection id="H3CFAC72938FE4A1BBC4880EB96D9F73E"><enum>(g)</enum><header>Personnel
actions limited</header>
<paragraph commented="no" id="HEEB6F4AF9B21443FA59B84C70C5D4EB1"><enum>(1)</enum><header>3-year
protection</header>
<subparagraph commented="no" id="H158AAD55C6B0452E8FA4D642F2CAED3F"><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 3-year period
beginning on the transfer date, be involuntarily separated, or involuntarily
reassigned outside his or her locality pay area as defined by the Office of
Personnel Management.</text>
</subparagraph><subparagraph commented="no" id="H59BB970BED154C009DFE70EE1053657E"><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="H00CF64CC7C124754B3E38FE8D7059ED9"><enum>(i)</enum><text>an employee
transferred from the Office of Thrift Supervision holding a permanent position
on the day before the transfer date;</text>
</clause><clause commented="no" id="H8DCDA61570094ADBA679E1A754A2E3BC"><enum>(ii)</enum><text>an employee of
the Office of the Comptroller of the Currency holding a permanent position on
the day before the transfer date; and</text>
</clause><clause commented="no" id="H7F1DC2D3328D41608DC3E28460B7FCFF"><enum>(iii)</enum><text>an employee of
the Corporation holding a permanent position on the day before the transfer
date.</text>
</clause></subparagraph></paragraph><paragraph id="H778B121535D44A2B9EDD18E4759EFE61"><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="H90D0E349FC26462389AE5A2DCC751EBA"><enum>(A)</enum><text>separate an
employee for cause or for unacceptable performance; or</text>
</subparagraph><subparagraph id="H9D1BEF06FFC946CB967CEC7BEF8DFD9B"><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.</text>
</subparagraph></paragraph></subsection><subsection id="H3E8AF130D6EE44E381A119BFB81DA222"><enum>(h)</enum><header>Pay</header>
<paragraph id="H2544CA88D8FB492EA2A103CAB3075593"><enum>(1)</enum><header>1-year
protection</header><text>Except as provided in paragraph (2), each employee
transferred from the Office of Thrift Supervision shall, during the 1-year
period beginning on the transfer date, receive pay at a rate not less than the
basic rate of pay (including any geographic differential) that the employee
received during the 1-year period immediately before the transfer.</text>
</paragraph><paragraph id="H3CF8DC7864EB49CA9F2D40195FA31092"><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 reduce a transferred employee’s rate of basic pay—</text>
<subparagraph id="H9E0B288167E64BEEB8EA0608EB037D0A"><enum>(A)</enum><text>for cause;</text>
</subparagraph><subparagraph id="H6E064203A5CB41E29194BEBB9919C505"><enum>(B)</enum><text>for unacceptable
performance; or</text>
</subparagraph><subparagraph id="HF0793C68791B41B2B3C7DA3A95363401"><enum>(C)</enum><text>with the
employee’s consent.</text>
</subparagraph></paragraph><paragraph id="H90CA8CD2A4224CA98480AE3652FE7D5A"><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 Office of the Comptroller of
the Currency or the Corporation.</text>
</paragraph><paragraph id="H4F39754577964AE4BA0ED00EC42378C8"><enum>(4)</enum><header>Pay increases
permitted</header><text>Paragraph (1) does not limit the authority of the
Office of the Comptroller of the Currency or the Corporation to increase a
transferred employee’s pay.</text>
</paragraph></subsection><subsection id="HF6AEC03A229D4E3BB152B92C544FF366"><enum>(i)</enum><header>Benefits</header>
<paragraph id="H408AD7EC0A08457AB0A472152F301824"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="HAC24A93CA36248A7AF4A89F7CAD60F38"><enum>(A)</enum><header>In
general</header>
<clause id="H26C99C70F3CE4732A70B13119A05780F"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text display-inline="yes-display-inline">Each
employee transferred from the Office of Thrift Supervision may remain enrolled
in his or her existing retirement plan or plans as long as he or she remains
employed by the Office of the Comptroller of the Currency or the
Corporation.</text>
</clause><clause id="HEA6B012A5F26422D859DEE28DBBFEE4B"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Office of the Comptroller of the Currency or the
Corporation shall pay any employer contributions to the existing retirement
plan of each employee transferred from the Office of Thrift Supervision as
required under that plan.</text>
</clause></subparagraph><subparagraph id="H41C5681E7B5544198ABC41CFD5730204"><enum>(B)</enum><header>Definition</header><text>For
purposes of this paragraph, the term <term>existing retirement plan</term>
means, with respect to any employee transferred under this section, the
particular retirement plan (including the Financial Institutions Retirement
Fund) and any associated thrift savings plan of the agency from which the
employee was transferred, which the employee was enrolled in on the day before
the transfer date.</text>
</subparagraph></paragraph><paragraph id="HA83AA85E81DD459D889C3ED5A0A23CD7"><enum>(2)</enum><header>Benefits other
than retirement benefits</header>
<subparagraph id="H2C3C8DD408FB4FE68612E9EF1D0D9FA7"><enum>(A)</enum><header>During 1st
year</header>
<clause id="HD25EBF0D872746B2B79F7C0D8C761549"><enum>(i)</enum><header>Existing plans
continue</header><text>Each transferred employee may, for 1 year after the
transfer date, retain membership in any other employee benefit program of the
Office of Thrift Supervision, including a 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="H851500F9EFD54D64AB7B76F4B9E3F962"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Office of the Comptroller of the Currency or the
Corporation shall pay any employer cost 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="H16B1858F29BC4593A38C20037AABE2EA"><enum>(B)</enum><header>Dental, vision,
or life 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 decides not to continue participation in any dental, vision,
or life insurance program of the Office of Thrift Supervision, an employee
transferred from the Office of Thrift Supervision pursuant to this title who is
a member of such a program may, before the decision of the Office of the
Comptroller of the Currency or the Corporation takes effect, elect to enroll,
without regard to any regularly scheduled open season, in—</text>
<clause id="H6FC561C6DF3141C19DC99718292E2DF2"><enum>(i)</enum><text>the
enhanced dental benefits program established by chapter 89A of title 5, United
States Code;</text>
</clause><clause id="HB61701AA74554DB99EDC956962DE1CFF"><enum>(ii)</enum><text>the
enhanced vision benefits established by chapter 89B of title 5, United States
Code; and</text>
</clause><clause id="H87F7F05991804575A5CE464B1E98496B"><enum>(iii)</enum><text>the Federal
Employees Group Life Insurance Program established by chapter 87 of title 5,
United States Code, without regard to any requirement of insurability.</text>
</clause></subparagraph><subparagraph id="H5DCF8CB74D514AC5AEEB242E51CFD2F1"><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 decides not to continue participation in any long term care
insurance program of the Office of Thrift Supervision, an employee transferred
from the Office of Thrift Supervision pursuant to this title who is a member of
such a program may, before the decision of the Office of the Comptroller of the
Currency or the Corporation takes effect, elect to apply for coverage under the
Federal Long Term Care Insurance Program established by chapter 90 of title 5,
United States Code, under the underwriting requirements applicable to a new
active workforce member (as defined in Part 875, title 5, Code of Federal
Regulations).</text>
</subparagraph><subparagraph id="H92DB912DDCB9442F9C4042C449459594"><enum>(D)</enum><header>Employee’s
contribution</header>
<clause id="HBC6A39447A824CF097E2E4073CC003B0"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), an individual enrolled in the
Federal Employees Health Benefits program under this subparagraph shall pay any
employee contribution required by the plan.</text>
</clause><clause id="HF938EDEA0B574EBD9CC91A314D3CACEE"><enum>(ii)</enum><header>Cost
differential</header><text>The difference in costs between the benefits that
the Office of Thrift Supervision is providing on the date of enactment of this
title and the benefits provided by this section shall be paid by the
Comptroller of the Currency or the Corporation.</text>
</clause><clause id="HFAE8836F373B40E09AB34AA19651D5EE"><enum>(iii)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation 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 Office of the Comptroller of the Currency or the
Corporation 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 (i).</text>
</clause></subparagraph><subparagraph id="H23D057531E6F4D5290292CE49DBB72CA"><enum>(E)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="H387AAAB50DE343E9910B946CF05B2D67"><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
the Office of Thrift Supervision on the day before the 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 Office of the Comptroller of the Currency or the
Corporation, without regard to any regularly scheduled open season and
requirement of insurability.</text>
</clause><clause id="HC3C6B116B5424C9B8DFBCED4DC737795"><enum>(ii)</enum><header>Employee’s
contribution</header>
<subclause id="H7346E7177A67439F991F186397AB1C7E"><enum>(I)</enum><header>In
general</header><text>Subject to subclause (II), an individual enrolled in a
life insurance plan under this clause shall pay any employee contribution
required by the plan.</text>
</subclause><subclause id="HF28C7F344A4E437CB7EFD5B10D05F444"><enum>(II)</enum><header>Cost
differential</header><text>The difference in costs between the benefits that
the Office of Thrift Supervision is providing on the date of enactment of this
title and the benefits provided by this section shall be paid by the
Comptroller of the Currency or the Corporation.</text>
</subclause><subclause id="H6F2E0F15E3CB441F8069B07EE2D0DF7C"><enum>(III)</enum><header>Funds
transfer</header><text>The Office of the Comptroller of the Currency or the
Corporation 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
Office of the Comptroller of the Currency or the Corporation 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 subclause (I).</text>
</subclause><subclause id="H3344FF2D3E1249E9920965033AD0AF33"><enum>(IV)</enum><header>Credit for time
enrolled in other plans</header><text>For employees transferred under this
section, enrollment in a life insurance plan administered by the Office of the
Comptroller of the Currency, the Office of Thrift Supervision, or the
Corporation 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="H2639E81C7A0B4D95860394B561755BBA"><enum>(j)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Office of the Comptroller of the Currency and the Corporation—</text>
<paragraph id="H045B6A41C1834D6DA23B853981ACBBC1"><enum>(1)</enum><text>shall take no
action that would unfairly disadvantage transferred employees relative to other
employees of the Office of the Comptroller of the Currency or the Corporation
based on their prior employment by the Office of Thrift Supervision;</text>
</paragraph><paragraph id="HF0BD8C10836D4FF19AC74B8F01A5E825"><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 those
employees’ 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;</text>
</paragraph><paragraph id="H07A488556F284698B1C332584675C75B"><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="HE6BBDDEC8E2C457BB199A17F87B55387"><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></section><section id="HD483431D5A86427888137508A3014173"><enum>1213.</enum><header>Property
transferred</header>
<subsection id="H42F2F526A96142B6AC6131E856EEB306"><enum>(a)</enum><header>In
general</header><text>Not later than 90 days after the transfer date, all
property of the Office of Thrift Supervision shall be transferred to the Office
of the Comptroller of the Currency or the Corporation, allocated in a manner
consistent with section 1212(a).</text>
</subsection><subsection id="H18F7BBF7DE154127BCD434FB9D2B16F9"><enum>(b)</enum><header>Contracts
related to property transferred</header><text>All contracts, agreements,
leases, licenses, permits, and similar arrangements 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 together with that property.</text>
</subsection><subsection id="H66ADCFA3E5854FC9A5FBD43D538B8883"><enum>(c)</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><subsection id="HE38114B754ED47BDB71EE41610163523"><enum>(d)</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></section><section id="HB0C6B8A7546849F58EB1AF71432021C6"><enum>1214.</enum><header>Funds
transferred</header><text display-inline="no-display-inline">Except to the
extent needed to dispose of affairs under section 1215, all funds that, on the
day before the transfer date, are available to the Director of the Office of
Thrift Supervision to pay the expenses of the Office of Thrift Supervision
shall be transferred to the Office of the Comptroller of the Currency or the
Corporation, allocated in a manner consistent with section 1212(a), on the
transfer date.</text>
</section><section id="H9E45429188BA46B78E953BCF3DF74403"><enum>1215.</enum><header>Disposition of
affairs</header>
<subsection id="HA09E7AB1480D4DE5B64C5E5169E84012"><enum>(a)</enum><header>In
general</header><text>During the 90-day period beginning on the transfer date,
the Director of the Office of Thrift Supervision—</text>
<paragraph id="H08F04D31D0D34BB0A78F40AFC1E4990D"><enum>(1)</enum><text>shall, solely for
the purpose of winding up the affairs of the agency related to any function
transferred to the Office of the Comptroller of the Currency or the Corporation
by this subtitle—</text>
<subparagraph id="HF35107021D49455C83498B935CC967FB"><enum>(A)</enum><text>manage any
employees of the Office of Thrift Supervision and provide for the payment of
the compensation and benefits of any such employees that accrue before the
transfer date; and</text>
</subparagraph><subparagraph id="HE0D9169EBCFC458690D5ECF97A31A6BB"><enum>(B)</enum><text>manage any
property of the Office of Thrift Supervision until the property is transferred
under section 1213; and</text>
</subparagraph></paragraph><paragraph id="HA3BC54FA27354CC0A1B22A57E590F257"><enum>(2)</enum><text>may take any other
action necessary to wind up the affairs of the Office of Thrift Supervision
relating to the transferred functions.</text>
</paragraph></subsection><subsection id="H40912BA4A25B4706B8B0F54DFB122A84"><enum>(b)</enum><header>Authority and
status of director</header>
<paragraph id="H288C57D710AA4C8E988AF502513C3F91"><enum>(1)</enum><header>In
general</header><text>Notwithstanding the transfers of functions under this
subtitle, the Director of the Office of Thrift Supervision shall, during the
90-day period beginning on the transfer date, retain and may exercise any
authority vested in the Director on the day before the transfer date that is
necessary to carry out the requirements of this subtitle during that
period.</text>
</paragraph><paragraph id="H4E40CB6555F247A4B3AAAE3475A27DC7"><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="HE9CCDD6A6A67474EB01C254E61A1A99E"><enum>(A)</enum><text>treated as an
officer of the United States; and</text>
</subparagraph><subparagraph id="H1D260EF56D8541B08F80F016F5FE8F1F"><enum>(B)</enum><text>entitled to
receive compensation at the same annual rate of basic pay that he or she was
receiving on the day before the transfer date.</text>
</subparagraph></paragraph></subsection></section><section id="H3730419520A64D1A98087BFE3ABFA0B3"><enum>1216.</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 to be transferred to the Office of the Comptroller of
the Currency or the Corporation, shall—</text>
<paragraph id="H37EA3BF123D44E6DA7452B9C8AC64D37"><enum>(1)</enum><text>continue to
provide those services, subject to reimbursement, until the transfer of those
functions is complete; and</text>
</paragraph><paragraph id="H059F5B6FF98840EE9FEC127CB9577A71"><enum>(2)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and orderly
transition.</text>
</paragraph></section><section display-inline="no-display-inline" id="H4E7035F8FC3345AC9BB7194B2EFCB7CE" section-type="subsequent-section"><enum>1217.</enum><header>Contracting and
leasing authority</header><text display-inline="no-display-inline">In addition
to any powers transferred to the Comptroller of the Currency by this subtitle,
the Comptroller of the Currency may—</text>
<paragraph id="HC7B55623F9E04DBB998E6E445FA48E0D"><enum>(1)</enum><text>enter into and
perform contracts, execute instruments, and acquire in any lawful manner such
goods and services, or real or personal property, or interest in property, as
the Comptroller of the Currency determines to be necessary or convenient to
carry out the duties and responsibilities of the Comptroller of the Currency;
and</text>
</paragraph><paragraph id="HC7085D8A8C2748AF821500D2F988B374"><enum>(2)</enum><text>hold, maintain,
sell, lease, or otherwise dispose of any real or personal property or interest
in property without regard to title 40, United States Code, title III of the
Federal Properties and Administrative Services Act of 1949 (41 U.S.C. 251 et
seq.), and other Federal laws of a similar type governing the procurement of
goods and services or the acquisition or disposition of any property or
interest in property by Federal agencies.</text>
</paragraph></section><section id="H77072D0BD10544CA996429E3E6025F22"><enum>1218.</enum><header>Treatment of
savings and loan holding companies</header><text display-inline="no-display-inline">Section 10 of the Home Owners’ Loan Act (12
U.S.C. 1467a) is amended as follows:</text>
<paragraph id="H7B14EE3D4861491BB128231FA0C4BC8C"><enum>(1)</enum><text>In subsection
(m)—</text>
<subparagraph id="H4A4A7B3CC6B64D30B3422118960F5674"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="H40D66AEF45EC4A888A5FC01E62CE1711"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>Director may grant</quote> and inserting <quote>Comptroller
of the Currency may grant</quote>;</text>
</subparagraph><subparagraph id="H185D9B3121744439812032610B803500"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>the Director deems</quote> and inserting <quote>the
Comptroller deems</quote>;</text>
</subparagraph><subparagraph id="H1981D0B38D5B44B4B478FDD5C7861BF0"><enum>(D)</enum><text>in paragraph
(2)(A), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="HD75D98FAC01748B9AEF63A22A5479BB2"><enum>(E)</enum><text>in paragraph
(2)(B), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="HA1FB19E7AAA54609BA282532B21ADF23"><enum>(F)</enum><text>in paragraph
(2)(B)(iii), by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H83099CF5D96D4681822211FACEED3BD8"><enum>(G)</enum><text display-inline="yes-display-inline">by striking subparagraph (A) of paragraph
(3) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H0F3F6E47FA0143B6B844AD1201700864" style="OLC">
<subparagraph id="H2BBFD7A0937340569905FEC2043702BB"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A savings association
that fails to become or remain a qualified thrift lender shall—</text>
<clause id="HB262F412C2744987A9221D27BB0AFE7F"><enum>(i)</enum><text>immediately be
subject to the restrictions in subparagraph (B); and</text>
</clause><clause id="H776EA21E69114B2CB409357F1E47F2FA"><enum>(ii)</enum><text>become one or
more banks (other than a savings bank) within one year after the date on which
the savings association should have become or ceases to be a qualified thrift
lender, except as provided in subparagraph
(C)(i).</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H4143863686F647CFBF03D85DA03210A5"><enum>(H)</enum><text display-inline="yes-display-inline">by striking subclause (III) of paragraph
(3)(B)(i) and inserting the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H391907AD858B4137ACA12C17985E3554" style="OLC">
<subclause id="H37E4E4B326FE492A8DF4C1E1180AA1FD"><enum>(III)
</enum><header>Dividends</header><text display-inline="yes-display-inline">The
savings association shall be prohibited from paying dividends except for such
dividends—</text>
<item id="H58080BA6E64F44A79F9162A47D11BB65"><enum>(aa)</enum><text>as
would be permissible for a national bank;</text>
</item><item id="HB35D36FB1EAC40B2B4E06B9E93D5C647"><enum>(bb)</enum><text>that are
necessary to meet obligations of a company that controls such savings
association; and</text>
</item><item id="H37E9A0AA601B437FAE8A52152EE8A7ED"><enum>(cc)</enum><text>that are
specifically approved by the Comptroller and the Board of Governors after prior
written request of at least 30 days to the Comptroller and the Board of
Governors.</text>
</item></subclause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H4A6FDF63CC4C48D88243C6715755C2D3"><enum>(I)</enum><text>by striking clause
(ii) of paragraph (3)(B);</text>
</subparagraph><subparagraph id="HB62A45F81E654BD1A953F1B976CD82A9"><enum>(J)</enum><text>by striking
subparagraphs (C) and (D) of paragraph (3) and inserting the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H94C8988687794F1E91D6922D327F7C8E" style="OLC">
<subparagraph id="H4A188CFAC113428F90DC80E9A9554F64"><enum>(C)</enum><header>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 and subject to
actions authorized by section 5(d) of the Home Owners’ Loan Act.</text>
</subparagraph><subparagraph id="HD0B74E5BCF824E5D9F2C9A85D0A5C535"><enum>(D)</enum><header>Requalifications</header><text></text>
<clause id="HD098F24A67EB4A57AAC570E2451D1EEE"><enum>(i)</enum><text>A
savings association that should have become or ceases to be a qualified thrift
lender shall not be subject to subparagraph (A)(ii) if the savings association
becomes a qualified thrift lender by meeting the qualified thrift lender
requirement in paragraph (1) on a monthly average basis in 9 out of the
preceding 12 months and remains a qualified thrift lender.</text>
</clause><clause id="H9F9DC0C8267F4C7EB67F79726E7EF3DA"><enum>(ii)</enum><text>If the savings
association referred to in clause (i) (or any savings association that acquired
all or substantially all of its assets from that savings association) at any
time thereafter ceases to be a qualified thrift lender it shall immediately be
subject to subparagraph (A)(ii) as if the one-year time period provided for in
subparagraph (A)(ii) already has expired, and as if the exception in clause (i)
was not applicable or available to such savings
association.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H54CF9F7B52B344759FF528315FAE6903"><enum>(K)</enum><text>in paragraph
(4)(D) by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph id="H863E8AA0AFB94F849B73175A316A0B51"><enum>(L)</enum><text>in paragraph
(4)(E) by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>; and</text>
</subparagraph><subparagraph id="H65E6A4DFC67042B3B58F9E67F9E93011"><enum>(M)</enum><text>in paragraph
(7)(B) by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>.</text>
</subparagraph></paragraph><paragraph id="H4C5B0E447C3A4DBB963A13E31BBFF8B7"><enum>(2)</enum><text>In subsection
(o)—</text>
<subparagraph id="HFFDA74C12C614312826952C7692655F1"><enum>(A)</enum><text>in paragraph (3)
in the heading by striking <quote><header-in-text level="subparagraph" style="OLC">Director</header-in-text></quote> and inserting
<header-in-text level="subparagraph" style="OLC"><quote><header-in-text level="subparagraph" style="OLC">Board</header-in-text></quote></header-in-text>;</text>
</subparagraph><subparagraph id="H5AB1AC5F042B44E78B4B9DFE61B88A91"><enum>(B)</enum><text>in paragraph
(3)(A) by striking <quote>Director</quote> and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph id="H96BA3C0492F247D29714AB7BEF7C081A"><enum>(C)</enum><text>in paragraph
(3)(B) by striking <quote>Director</quote> and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph id="H302FCC918FB14F0FA00D569E7F55B4CB"><enum>(D)</enum><text>in paragraph
(3)(C) by striking <quote>Director</quote> and inserting
<quote>Board</quote>;</text>
</subparagraph><subparagraph id="HF4D7A90CC2274FB694EBF57C18A7C7CF"><enum>(E)</enum><text>in paragraph
(3)(D) by striking <quote>Director</quote> and inserting
<quote>Comptroller</quote>;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HA45CF99670D44F4B9DEC1111CE76096A"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (5)(E), by striking
<quote>activities described in subsection (c)(2) or (c)(9)(A)(ii)</quote> and
inserting <quote>activities otherwise permissible for the company pursuant to,
and in accordance with, section 4 of the Bank Holding Company Act of
1956</quote>;</text>
</subparagraph><subparagraph id="H33F5BB75099B40A2BE13C110D305259B"><enum>(G)</enum><text>in paragraph (7)
by striking <quote>chartered by the Director</quote> and inserting
<quote>chartered by the Comptroller</quote>; and</text>
</subparagraph><subparagraph id="H7A15ACC94A4F42EF8063C3F57C17DD32"><enum>(H)</enum><text>in paragraph (7)
by striking <quote>regulations as the Director may</quote> and inserting
<quote>regulations as the Board may</quote>.</text>
</subparagraph></paragraph></section><section id="H34A99480CB2349BF941069A0092B0374"><enum>1219.</enum><header>Practices of
certain mutual thrift holding companies preserved</header>
<subsection id="HD782B091DD1F428185A504F14630DF3C"><enum>(a)</enum><header>Treatment of
dividends by certain mutual holding companies</header><text>Section 3(g) of the
Bank Holding Company Act of 1956 (12 U.S. C. 1842(g)) is amended by adding at
the end the following new paragraphs:</text>
<quoted-block id="H33407D4C3F4B4648A83D89504DE0E90A" style="OLC">
<paragraph id="H54FC7087F4584F269F80EDD1921BC08D"><enum>(3)</enum><header>Declaration of
dividends</header><text>Every subsidiary savings association of a mutual
holding company shall give the Board not less than 30 days advance notice of
the proposed declaration by its directors of any dividend on its guaranty,
permanent, or other nonwithdrawable stock. Such notice period shall commence to
run from the date of receipt of such notice by the Board. Any such dividend
declared within such period, or without the giving of such notice to the Board,
shall be invalid and shall confer no rights or benefits upon the holder of any
such stock.</text>
</paragraph><paragraph id="HBDB727C45FB24C3E9907B735DE8DDB44"><enum>(4)</enum><header>Waiver of
dividends</header><text>Any mutual thrift holding company organized under
section 10(b) of the Home Owners’ Loan Act shall be permitted to waive such
company’s right to receive any dividend declared by a subsidiary, if—</text>
<subparagraph id="HAFDD5D0EE0164F6DA0DE8FB7C5B3293D"><enum>(A)</enum><text>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>
</subparagraph><subparagraph id="H23F4D1D5A40C4C4889CB0CE1B5D2A47A"><enum>(B)</enum><text display-inline="yes-display-inline">the mutual holding company provides the
Board with written notice of its intent to waive its right to receive dividends
30 days prior to the proposed date of payment of the dividend and the Board
does not object.</text>
</subparagraph></paragraph><paragraph id="H1AFCEDEB2BDC4A79A11D957E753BC227"><enum>(5)</enum><header>Standards for
waiver of dividend</header><text>The Board shall not object to a notice of
intent to waive dividends under paragraph (4) if—</text>
<subparagraph id="H28E31DD8D61B42AAAC41A54E8DABDFF3"><enum>(A)</enum><text>the waiver would
not be detrimental to the safe and sound operation of the savings association;
and</text>
</subparagraph><subparagraph id="H9D718E6249D74132952F6FC0F1D711CB"><enum>(B)</enum><text>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 directors’
fiduciary duties to the mutual members of such company.</text>
</subparagraph></paragraph><paragraph id="H29510D0C78B74CF9A7E58C909D803156"><enum>(6)</enum><header>Resolution
included in waiver notice</header><text>A dividend waiver notice shall include
a copy of the resolution of the board of directors of the mutual holding
company, in form and substance satisfactory to the Board, together with any
supporting materials relied upon by the board of directors, concluding that the
proposed dividend waiver is consistent with the board of director’s fiduciary
duties to the mutual members of the mutual holding company.</text>
</paragraph><paragraph id="H7B792565DF0144C5AE9C6683ABAA53B7"><enum>(7)</enum><header>Valuation</header><text>The
Board will not consider waived dividends in determining an appropriate exchange
ratio in the event of a full conversion to stock
form.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H39FE6CEBFF8549A6BD5AD2B4D8A4CE88" section-type="subsequent-section"><enum>1220.</enum><header>Implementation plan
and reports</header>
<subsection id="HDF8C99B2BCAE4A228EDC44460B7F1B53"><enum>(a)</enum><header>Plan
submission</header><text display-inline="yes-display-inline">Within 90 days of
the enactment of the Financial Stability Improvement Act of 2009, the Secretary
and the Corporation, in consultation with the Office of the Comptroller of the
Currency and the Office of Thrift Supervision, shall jointly submit a plan to
the Congress and the Inspectors General of the Department of the Treasury and
of the Corporation detailing the steps the Secretary, the Corporation, the
Office of the Comptroller of the Currency, and the Office of Thrift Supervision
will take to implement the provisions of sections 1201 through 1216, and the
provisions of the amendments made by such sections.</text>
</subsection><subsection id="H7F9DA51D7DC942B9904FA362FD202F12"><enum>(b)</enum><header>Inspectors
General review of the plan</header><text display-inline="yes-display-inline">Within 60 days of the date on which the
Congress receives the plan required under subsection (a), the Inspectors
General of the Department of the Treasury and of the Corporation shall jointly
provide a written report to the Secretary and the Corporation and shall submit
a copy to the Congress detailing whether the plan conforms with the intent of
the provisions of sections 1201 through 1216, and the provisions of the
amendments made by such sections, including—</text>
<paragraph id="HCDAEDA05FE4E411BB0FF24B9FC369249"><enum>(1)</enum><text>whether the plan
sufficiently takes into consideration the orderly transfer of personnel;</text>
</paragraph><paragraph id="HA65F8AA274814FE691BD988E01CA6CA2"><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="HD3534DB068324DC1A13739E08348020F"><enum>(3)</enum><text>whether the plan
sufficiently takes into consideration the orderly transfer of authority and
responsibilities;</text>
</paragraph><paragraph id="H5CA1F22951F94A3B83B4312ED4B90827"><enum>(4)</enum><text>whether the plan
sufficiently takes into consideration the effective transfer of funds;</text>
</paragraph><paragraph id="H8F94DD3B751E42C0891DD886DED72057"><enum>(5)</enum><text>whether the plan
sufficiently takes in consideration the orderly transfer of property;
and</text>
</paragraph><paragraph id="H95A125110A1A490ABBE1FD9F865A01C7"><enum>(6)</enum><text>any additional
recommendations for an orderly and effective process.</text>
</paragraph></subsection><subsection id="H03E1DE25BB104F46B8A0C0CDB1CD4F45"><enum>(c)</enum><header>Implementation
reports</header><text display-inline="yes-display-inline">Not later than 6
months after the date on which the Congress 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
and the Corporation shall jointly provide a written report on the status of the
implementation of the plan to the Secretary and the Corporation and shall
submit a copy to the Congress.</text>
</subsection></section><section id="HDDA4DCFA165345D48952195D468C73F4"><enum>1221.</enum><header>Composition of
board of directors of the Federal Deposit Insurance Corporation</header><text display-inline="no-display-inline">Section 2 of the Federal Deposit Insurance
Act (12 U.S.C. 1812) is amended—</text>
<paragraph id="H915D452F9703477CAC7FE4D813C572BF"><enum>(1)</enum><text>in subsection
(a)(1)—</text>
<subparagraph id="H1A2BE75E8890455C84F4561CDFDB0955"><enum>(A)</enum><text>in subparagraph
(B), 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, or such other member of the Board of Governors as the Chairman of the
Board of Governors shall designate</quote>;</text>
</subparagraph></paragraph><paragraph id="H0C7BDBAC297B4C3C8235C6866020FCE4"><enum>(2)</enum><text>by amending
subsection (d)(2) to read as follows:</text>
<quoted-block id="H04788BF3C9344075A8A47DBEDB8F87EA" style="OLC">
<paragraph id="H993D0855A5A94FA09808C6C4B940A33E"><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 and pending the appointment of a successor, or
during the absence or disability of the Comptroller of the Currency, the acting
Comptroller of the Currency shall be a member of the Board of Directors in the
place of the Comptroller of the
Currency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB211052656254B43B2F37AE48EAF8A13"><enum>(3)</enum><text>in subsection
(f)(2), by striking <quote>or of the Office of Thrift
Supervision</quote>.</text>
</paragraph></section><section id="HD0ABD97CC2B74CF1A30F8D25B963A13C"><enum>1222.</enum><header>Amendments to
section 3</header><text display-inline="no-display-inline">Section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813) is amended—</text>
<paragraph id="HFF1593CE7D8942A5B96D9E279720E5CE"><enum>(1)</enum><text>in subsection
(b)(1)(C) (relating to the definition of the term <term>savings
association</term>), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>;</text>
</paragraph><paragraph id="HEC3FA1DB91A94F4B882D06AEC643F67C"><enum>(2)</enum><text>in subsection
(l)(5) (relating to the definition of the term <term>deposit</term>), in the
introductory text, by striking <quote>Director of the Office of Thrift
Supervision,</quote>; and</text>
</paragraph><paragraph id="H7B2D8786F18B442C90A304CB20138DE8"><enum>(3)</enum><text>in subsection (z)
(relating to the definition of the term <term>Federal banking agency</term>),
by striking <quote>the Director of the Office of Thrift
Supervision,</quote>.</text>
</paragraph></section><section id="H8C9B28D2FC6D4A95902EA28E63BF26E7"><enum>1223.</enum><header>Amendments to
section 7</header><text display-inline="no-display-inline">Section 7(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1817) is amended—</text>
<paragraph id="H636F79773EA4418AA8D8E9F91B9CEE9D"><enum>(1)</enum><text>in paragraph
(2)(A)—</text>
<subparagraph id="H3CAE53EF2FD44E37980F1B91830E6980"><enum>(A)</enum><text>in the first
sentence, by striking <quote>the Director of the Office of Thrift
Supervision</quote>;</text>
</subparagraph><subparagraph id="HACA58B43752C4E8AA0508025B3EB9865"><enum>(B)</enum><text>in the second
sentence, by striking <quote>the Director of the Office of Thrift
Supervision,</quote>;</text>
</subparagraph></paragraph><paragraph id="H9D3E7DBACE48477F801FD8062845C712"><enum>(2)</enum><text>in paragraph (3),
in the first sentence, by striking <quote>, the 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>; and</text>
</paragraph><paragraph id="H684BD5907D604F218263BBD1468D99E1"><enum>(3)</enum><text>in paragraph (7),
by striking <quote>, the Director of the Office of Thrift
Supervision,</quote>.</text>
</paragraph></section><section id="H4682ABCFDDEB4C71B07E7432192F84A6"><enum>1224.</enum><header>Amendments to
section 8</header><text display-inline="no-display-inline">Section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—</text>
<paragraph id="HE8BC352B3B36460CB9192F412258CD4D"><enum>(1)</enum><text>in subsection
(a)(8)(B)(ii), in the last sentence—</text>
<subparagraph id="HA59F27868772477D8B4BA1F597091163"><enum>(A)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> each place it
appears and inserting <quote>Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph id="H883CD19ACA904DED8A6581521831DAD0"><enum>(B)</enum><text>by inserting
<quote>the Office of Thrift Supervision, as a successor to</quote> after
<quote>as a successor to</quote>;</text>
</subparagraph></paragraph><paragraph id="HA8BF83AB93E94458A94873F7E7063513"><enum>(2)</enum><text>in subsection (o),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>; and</text>
</paragraph><paragraph id="H4CE6D0FE289D4DC6B6B5DA8907736520"><enum>(3)</enum><text>in subsection
(w)(3)(A), by striking <quote>Office of Thrift Supervision</quote> and
inserting <quote>Office of the Comptroller of the Currency</quote>.</text>
</paragraph></section><section id="HA752CD7FC6D741A0939CA8811FE19DD8"><enum>1225.</enum><header>Amendments to
section 11</header><text display-inline="no-display-inline">Section 11 of the
Federal Deposit Insurance Act (12 U.S.C. 1821) is amended—</text>
<paragraph id="H75EF1AA33589420BA79512ABCF6C506F"><enum>(1)</enum><text>in subsection
(c)(6)—</text>
<subparagraph id="HB3386902330B4D97B97131E81044554A"><enum>(A)</enum><text>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>
</subparagraph><subparagraph id="H380683A91C394A8CA60452F365E36F91"><enum>(B)</enum><text>in subparagraph
(A), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H2DA2774DE24A4B5B893C0448D98CD496"><enum>(C)</enum><text>in subparagraph
(B), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>;</text>
</subparagraph></paragraph><paragraph id="H485FF4800F3B4FDD927B49DEFB71E7C9"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="H12CE96D3D7B04E54A6A00B74582E21D7"><enum>(A)</enum><text>in paragraph
(17)(A)—</text>
<clause id="H417878CB3D884EF5801484B2DE6854FE"><enum>(i)</enum><text>by
striking <quote>, or the Director of the Office of Thrift Supervision</quote>;
and</text>
</clause><clause id="H0068BD276C1F4AFDBE79D48F99D9BD41"><enum>(ii)</enum><text>by
striking <quote>appropriate</quote>; and</text>
</clause></subparagraph><subparagraph id="HD5B221F98FA74B9CB910CC09419EE24C"><enum>(B)</enum><text>in paragraph
(18)(B), by striking <quote>or the Director of the Office of Thrift
Supervision</quote>; and</text>
</subparagraph></paragraph><paragraph id="HEF4515EBB4324C5BB5745DE55490D21B"><enum>(3)</enum><text>in subsection
(n)—</text>
<subparagraph id="HA37BF3A6A3754ED6AC200CB2645C0425"><enum>(A)</enum><text>in paragraph
(1)(A), by striking <quote>the Director of the Office of Thrift Supervision,
with respect to 1 or more insured</quote></text>
</subparagraph><subparagraph id="HFC3F6B657AA141DEA0E08CD27D32E8C1"><enum>(B)</enum><text>in paragraph
(2)(A), by striking <quote>the Director of the Office of Thrift
Supervision</quote>;</text>
</subparagraph><subparagraph id="H14BFC6EA12F4471B86F5BB4655675C45"><enum>(C)</enum><text>in paragraph
(4)(D), by striking <quote>and the Director of the Office of Thrift
Supervision, as appropriate,</quote>;</text>
</subparagraph><subparagraph id="H20F3241D5E064F85A7DB1A428630ED7F"><enum>(D)</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>
</subparagraph><subparagraph id="HE13F0EC4EDC44F2180C634960077D443"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (12)(B), by striking <quote>or
the Director of the Office of Thrift Supervision, as
appropriate,</quote>.</text>
</subparagraph></paragraph></section><section id="H54EE18B9C9FD453289651BB579F0534A"><enum>1226.</enum><header>Amendments to
section 13</header><text display-inline="no-display-inline">Section
13(k)(1)(A)(iv) of the Federal Deposit Insurance Act (12 U.S.C.
1823(k)(1)(A)(iv)) is amended by striking <quote>Director of the Office of
Thrift Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>.</text>
</section><section id="HF902E596604C4086959F63B9EBEBC260"><enum>1227.</enum><header>Amendments to
section 18</header><text display-inline="no-display-inline">Section 18 of the
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended—</text>
<paragraph id="H35327952472B4CBD843FFE28AF4038DD"><enum>(1)</enum><text>in subsection
(c)(2)—</text>
<subparagraph id="HE8AA7767DE1F4866B72E9CC89A0EB2F6"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>bank;</quote> and inserting <quote>bank or a savings
association; and</quote>;</text>
</subparagraph><subparagraph id="H558045AE6587450C993E183410E8D6B6"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>and</quote> at the end after the semicolon;</text>
</subparagraph><subparagraph id="HC9E16393C08641C998CCF66CE03B6DBC"><enum>(C)</enum><text>in subparagraph
(C), by striking <quote>bank (except a savings bank supervised by the Director
of the Office of Thrift Supervision); and</quote> and inserting <quote>bank or
State savings association.</quote>; and</text>
</subparagraph><subparagraph id="HA55EC3D2CF474899B4555FD354FC2E96"><enum>(D)</enum><text>by striking
subparagraph (D); and</text>
</subparagraph></paragraph><paragraph id="H6B8DB08F5780464482E7E6D351429ED6"><enum>(2)</enum><text>in subsection
(g)(1), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>;</text>
</paragraph><paragraph id="H275463B335574FA1AAA9CA7B77DD1ACC"><enum>(3)</enum><text>in subsection
(i)(2)—</text>
<subparagraph id="HA16DE506491A4CB18269EFDDB1D944E7"><enum>(A)</enum><text>by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block id="H21C9DE514A8E4CFF859B51836E596192" style="OLC">
<subparagraph id="HBFEBB9F0D83F44D5BE844BF09FB94DF8"><enum>(B)</enum><text>the Corporation,
if the resulting institution is to be a State nonmember insured bank or insured
State savings association.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H89704A2CA97A41D5BEFC6CBA55A354CE"><enum>(B)</enum><text>by striking
subparagraph (C);</text>
</subparagraph></paragraph><paragraph id="H86A1601FD22841C7881FAC08C877E65F"><enum>(4)</enum><text>in subsection
(m)—</text>
<subparagraph id="HDFABB0F5E8F14A50A3F2EDEF8118A4C1"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H2FA58476A7C74512B479E2D538125EE1"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause><clause id="H0BE770DA527646A6A2852F1BDB1BE018"><enum>(ii)</enum><text>in
subparagraph (B), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>;</text>
</clause></subparagraph><subparagraph id="H096E6106A6934A2DB421F8E4F36E28F7"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H8749E4EF7C0C4EFBACEC3F3855A7F964"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause><clause id="H3E458CD1FC644691A096DDF5FD60B1AD"><enum>(ii)</enum><text>in
subparagraph (B)—</text>
<subclause id="H08BA9BFF72B840B882DCB4325E1C8B8B"><enum>(I)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> each place it
appears and inserting <quote>Comptroller of the Currency</quote>; and</text>
</subclause><subclause id="H4F6A8A6A96B4423C898F3FB0192A57B0"><enum>(II)</enum><text>by striking
<quote>Director may deem appropriate</quote> and inserting <quote>Comptroller
may deem appropriate</quote>; and</text>
</subclause></clause></subparagraph><subparagraph id="H024D8AE9F2B949C7A59F1B3AB3FF4F42"><enum>(C)</enum><text>in paragraph
(3)—</text>
<clause id="H20F6E1E68C694473B06F5772EAB2BEDB"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause><clause id="HB0A61846014D499BB4B601F6F8522066"><enum>(ii)</enum><text>in
subparagraph (B), by striking <quote>Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>.</text>
</clause></subparagraph></paragraph></section><section id="HB12E5E944EF34F4F8994B38E12D2FB1D"><enum>1228.</enum><header>Amendments to
section 28</header><text display-inline="no-display-inline">Section 28 of the
Federal Deposit Insurance Act (12 U.S.C. 1831e) is amended—</text>
<paragraph id="H56DF0F71F46B4F78AEE6918101E09A73"><enum>(1)</enum><text>in subsection
(e)—</text>
<subparagraph id="H9630F272B55A4001A13F214D3B874380"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="H87790EAFCBF44D099B558B207758B763"><enum>(i)</enum><text>in
subparagraph (A)(ii), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>;</text>
</clause><clause id="H915AC802282F41D19F6F8A0A0AB070E0"><enum>(ii)</enum><text>in
subparagraph (C), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause><clause id="H5CE45AF6EA434A34B5DA89DBB1D14466"><enum>(iii)</enum><text>in
subparagraph (F), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause></subparagraph><subparagraph id="H9081854F46ED4D2685EF3C46F8808877"><enum>(B)</enum><text>in paragraph
(3)—</text>
<clause id="HFD8B100FB54445CF8467A735E0A3B585"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause><clause id="HB2F363F5B5A7408EB3045C2336F2FE70"><enum>(ii)</enum><text>in
subparagraph (B), by striking <quote>Director of the Office of Thrift
Supervision</quote> and inserting <quote>Comptroller of the Currency</quote>;
and</text>
</clause></subparagraph></paragraph><paragraph id="H36B4E294F90744F684B7ED39A2ED0E6B"><enum>(2)</enum><text>in subsection
(h)(2), by striking <quote>Director of the Office of Thrift Supervision</quote>
and inserting <quote>Comptroller of the Currency</quote>.</text>
</paragraph></section><section id="H9477162C8B0D4CF1BD07DE3C60B914CF"><enum>1229.</enum><header>Amendments to
the Alternative Mortgage Transaction Parity Act of 1982</header>
<subsection id="H863B38876E304FDBB40189E742D9AAD7"><enum>(a)</enum><header>Amendments to
section 802</header><text>Section 802(a)(3) of the Alternative Mortgage
Transaction Parity Act of 1982 (12 U.S.C. 3801(a)(3)) is amended—</text>
<paragraph id="H913170870A9C437092B047A0C7AAF237"><enum>(1)</enum><text>by striking
<quote>Comptroller of the Currency,</quote> and inserting <quote>Comptroller of
the Currency and</quote>; and</text>
</paragraph><paragraph id="H705808AD39A24824BF579B07E8291BE4"><enum>(2)</enum><text>by striking
<quote>, and the Director of the Office of Thrift Supervision</quote>.</text>
</paragraph></subsection><subsection id="HB8E26BAA67BC40E2B59066445CA2927E"><enum>(b)</enum><header>Amendments to
section 804</header><text>Section 804(a) of the Alternative Mortgage
Transaction Parity Act of 1982 (12 U.S.C. 3803(a)) is amended—</text>
<paragraph id="H2358744916484E76AD7F242889876AAC"><enum>(1)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block id="HC5330531B36A49399AD993A22A0E20E6" style="OLC">
<paragraph id="H45D510E5834740D296435D70E94C72AD"><enum>(1)</enum><text>with respect to
banks, savings associations, mutual savings banks, and savings banks, only to
transactions made in accordance with regulations governing alternative mortgage
transactions as prescribed by the Comptroller of the Currency to the extent
that such regulations are authorized by rulemaking authority granted to the
Comptroller of the Currency under laws other than this section;
and</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA111E67B1D7F41EEB166145B1FBA7710"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>; and</quote> and inserting a period; and</text>
</paragraph><paragraph id="H168DB1B3F6A04552A4DFBB5A6920D91A"><enum>(3)</enum><text>by striking
paragraph (3).</text>
</paragraph></subsection></section><section id="HEF7FBC3540AA4CCF8522685A1F29B9B2"><enum>1230.</enum><header>Amendments to
the Bank Holding Company Act of 1956</header><text display-inline="no-display-inline">Section 4(f)(12)(A) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(f)(12)(A)) is amended striking <quote>the
Resolution Trust Corporation, the Federal Deposit Insurance Corporation,
or</quote> and inserting <quote>the Federal Deposit Insurance Corporation
or</quote>.</text>
</section><section id="H5BC5342423CF46D3982C19A8F6BC7938"><enum>1231.</enum><header>Amendments to
the Bank Protection Act of 1968</header><text display-inline="no-display-inline">Section 2 of the Bank Protection Act of 1968
(12 U.S.C. 1881) is amended—</text>
<paragraph id="H0CAB3BBD32034B2BAFB8AE4599625132"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>national banks,</quote> and inserting <quote>national banks
and federal savings associations,</quote>;</text>
</paragraph><paragraph id="H9652B5075EF949779EB92DFC5B3016D2"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H36FC0A791FBE494BBA665FC1C34912AF"><enum>(3)</enum><text>in paragraph (3),
by striking <quote>, and</quote> and inserting a period; and</text>
</paragraph><paragraph id="H93A5CCE0A4FA4AB48DC379BC8839F4BF"><enum>(4)</enum><text>by striking
paragraph (4).</text>
</paragraph></section><section id="H1E9BA8E27DC84BF68F7A027FC24E7150"><enum>1232.</enum><header>Amendments to
the Bank Service Company Act</header><text display-inline="no-display-inline">Section 1(b) of the Bank Service Company Act
(12 U.S.C. 1861(b)) is amended—</text>
<paragraph id="HAB86444349594D8C94A037A6A46339DC"><enum>(1)</enum><text>in paragraph (4),
by striking <quote>insured bank,</quote> and inserting <quote>insured bank
or</quote>;</text>
</paragraph><paragraph id="H77BC60B05621423788DDFFA510A83A20"><enum>(2)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>; and</text>
</paragraph><paragraph id="H2D48A48673E34690A5A95F299E1CE885"><enum>(3)</enum><text>by striking
<quote>, the Federal Savings and Loan Insurance Corporation,</quote>.</text>
</paragraph></section><section id="H7AF3F76800B94221A8D13BF667E11914"><enum>1233.</enum><header>Amendments to
the Community Reinvestment Act of 1977</header><text display-inline="no-display-inline">Section 803 of the Community Reinvestment
Act of 1977 (12 U.S.C. 2902) is amended—</text>
<paragraph id="HAE23DEFE5ED145A1ADA24BC2E8863574"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H19A0BAC5D3114089AA08D9BAB59ABB6E"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>national banks</quote> and inserting <quote>national
banks or savings associations (the deposits of which are insured by the Federal
Deposit Insurance Corporation)</quote>; and</text>
</subparagraph><subparagraph id="H1CC2ABAAC57B434EB02F52AA0B483575"><enum>(B)</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>
</subparagraph></paragraph><paragraph id="HE7744356C0FC4034A81B526627DAF9C9"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the first paragraph (2)
(relating to section 8 of the Federal Deposit Insurance Act).</text>
</paragraph></section><section id="H0AF835150B12478F9E1C02EDB12AD0E3"><enum>1234.</enum><header>Amendments to
the Depository Institution Management Interlocks Act</header>
<subsection id="HBD798A0E933A4EAAB0D156288C4020C9"><enum>(a)</enum><header>Amendment to
section 207</header><text>Section 207 of the Depository Institution Management
Interlocks Act (12 U.S.C. 3206) is amended—</text>
<paragraph id="H8CC7576E4A5345BB9741DAD34BD0DC0D"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>national banks,</quote> and inserting <quote>national banks
and Federal savings associations (the deposits of which are insured by the
Federal Deposit Insurance Corporation),</quote>;</text>
</paragraph><paragraph commented="no" id="HC90A2ACB6AD74536B34C9BC580F6973F"><enum>(2)</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>
</paragraph><paragraph id="H3451E3F9DAF549D8B7882A310EBFE62E"><enum>(3)</enum><text>by striking
paragraph (4); and</text>
</paragraph><paragraph id="H6383E748DF044114A82EC75FA1D988C5"><enum>(4)</enum><text>by redesignating
paragraphs (5) and (6) as paragraphs (4) and (5), respectively.</text>
</paragraph></subsection><subsection id="HB1BCB8F9C70A4C0EA5A9C72D40FB7F8B"><enum>(b)</enum><header>Amendment to
section 209</header><text>Section 209 of the Depository Institution Management
Interlocks Act (12 U.S.C. 3207) is amended—</text>
<paragraph id="H2C3B5624F9ED4EB1A93363DE4C4D4BB8"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>national banks,</quote> and inserting <quote>national banks
and Federal savings associations (the deposits of which are insured by the
Federal Deposit Insurance Corporation),</quote>;</text>
</paragraph><paragraph id="H629EE183AC914770BAF998096AA3A3CC"><enum>(2)</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>
</paragraph><paragraph id="HC2ED058ED2644A65BAB0C076FFFF81A6"><enum>(3)</enum><text>at the end of
paragraph (3), by inserting <quote>and</quote> after the comma;</text>
</paragraph><paragraph id="H873B6ADDAA65492C85904AAB43B5BB43"><enum>(4)</enum><text>by striking
paragraph (4); and</text>
</paragraph><paragraph id="H5FB692E349B14C64BD0BF4D041426692"><enum>(5)</enum><text>by redesignating
paragraph (5) as paragraph (4).</text>
</paragraph></subsection><subsection id="HFDA5655D84454E6790919E5D9FE91DE8"><enum>(c)</enum><header>Amendment to
section 210</header><text>Subsection 210(a) of the Depository Institution
Management Interlocks Act (12 U.S.C. 3208(a)) is amended—</text>
<paragraph id="H21AC58D48EA5435BBF44C0F6CDAF4586"><enum>(1)</enum><text>by striking
<quote>his</quote> and inserting <quote>the</quote>; and</text>
</paragraph><paragraph id="HA8BA2FEA5C9B4DD48BB62E82C4941A94"><enum>(2)</enum><text>by inserting
<quote>of the Attorney General</quote> after <quote>enforcement
functions</quote>.</text>
</paragraph></subsection></section><section id="H18549E3467F84D879540501E5537F3B8"><enum>1235.</enum><header>Amendments to
the 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—</text>
<paragraph id="HA77E2989D68F4FD9BD2091A87B3135C8"><enum>(1)</enum><text>by striking the
<quote>Federal Home Loan Bank Board</quote> and inserting <quote>Federal
Housing Finance Agency</quote>; and</text>
</paragraph><paragraph id="H5EC76BC1FA8E429DB4F532418566C041"><enum>(2)</enum><text>by striking
<quote>the Federal Savings and Loan Insurance Corporation,</quote>.</text>
</paragraph></section><section id="HBB6205A67C574391814A445BBAA59B65"><enum>1236.</enum><header>Amendments to
the Equal Credit Opportunity Act</header><text display-inline="no-display-inline">Section 704(a) of the Equal Credit
Opportunity Act (15 U.S.C. 1691c(a)) is amended—</text>
<paragraph id="HCF08373E721C4F98B6F134BAD62E92CA"><enum>(1)</enum><text>in paragraph
(1)(A), by striking <quote>and Federal branches and Federal agencies of foreign
banks,</quote> and inserting <quote>Federal branches and Federal agencies of
foreign banks, or a savings association the deposits of which are insured by
the Federal Deposit Insurance Corporation,</quote>;</text>
</paragraph><paragraph id="H2889280A84EF42F3A42AA429612F7087"><enum>(2)</enum><text>by striking
paragraph (2); and</text>
</paragraph><paragraph id="H2E8FDA209D4A458AA02EF0013B6F7C90"><enum>(3)</enum><text>by redesignating
paragraphs (3) through (9) as paragraphs (2) through (8).</text>
</paragraph></section><section id="H8C947B7183924FA3878BCC8DB9034EC2"><enum>1237.</enum><header>Amendments to
the Federal Credit Union Act</header>
<subsection id="HCE535F7C5CD74DA59B84CD7A80D5AB69"><enum>(a)</enum><header>Amendments to
section 206</header><text>Section 206(g)(7) of the Federal Credit Union Act (12
U.S.C. 1786(g)(7)) is amended—</text>
<paragraph id="HB4C5BF325BB4409CBF44119364F5EA1C"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph commented="no" id="HAAC06AD8D50A49068656BB8676BB0AF2"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (v), by inserting
<quote>and</quote> after the semicolon;</text>
</subparagraph><subparagraph id="H150D2FC90B8D4E479653DF1B6718922C"><enum>(B)</enum><text>in clause
(vi)—</text>
<clause id="H14054DEC4D7D465984066801DBB7A455"><enum>(i)</enum><text>by
striking <quote>Federal Housing Finance Board</quote> and inserting
<quote>Federal Housing Finance Agency</quote>; and</text>
</clause><clause id="H938C1D0D02BA4B6E944E73BF3B7D5EC8"><enum>(ii)</enum><text>by
striking <quote>; and</quote> and inserting a period; and</text>
</clause></subparagraph><subparagraph id="H3CF3537B452C4EC5B8E915CCB98E56AF"><enum>(C)</enum><text>by striking clause
(vii); and</text>
</subparagraph></paragraph><paragraph id="H4D5F1415DF8F4DD19D878EAEE805B339"><enum>(2)</enum><text>in subparagraph
(D)—</text>
<subparagraph commented="no" id="H4CBA25F4066B406EA11CA6E95F33F21E"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (iii), by inserting
<quote>and</quote> after the semicolon;</text>
</subparagraph><subparagraph id="H775129326EFD4DFEB25BBE3B1D28E407"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (iv), by striking <quote>;
and</quote> and inserting a period; and</text>
</subparagraph><subparagraph id="HBC263E0A4C364D6BA3C2888CCC245AEC"><enum>(C)</enum><text>by striking clause
(v).</text>
</subparagraph></paragraph></subsection></section><section id="H8814906712EF4CAAB2ED13090711E75E"><enum>1238.</enum><header>Amendments to
the Federal Financial Institutions Examination Council Act of 1978</header>
<subsection id="HD0BD5E75262E4E12803896D6C6EADBD0"><enum>(a)</enum><header>Amendment to
section 1002</header><text>Section 1002 of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3301) is amended by striking
<quote>Federal Home Loan Bank Board</quote> and inserting <quote>Federal
Housing Finance Agency</quote>.</text>
</subsection><subsection id="HD2C4C7799B4242BE838E8BC0E4911D51"><enum>(b)</enum><header>Amendment to
section 1003</header><text>Section 1003(1) of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3302(1)) is amended by
striking <quote>the Office of Thrift Supervision,</quote>.</text>
</subsection><subsection id="H68B50A05D47D4FA8A8757F2F84802847"><enum>(c)</enum><header>Amendments to
section 1004</header><text>Section 1004(a) of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)) is
amended—</text>
<paragraph id="HF00A396E854C4173A93C937E959B8D09"><enum>(1)</enum><text>by striking
paragraph (4); and</text>
</paragraph><paragraph id="H2683614CEEA04AFEB708E6ACA8263134"><enum>(2)</enum><text>by redesignating
paragraphs (5) and (6) as paragraphs (4) and (5), respectively.</text>
</paragraph></subsection></section><section id="H487EB0EB7C87406993665B77C89BFE0C"><enum>1239.</enum><header>Amendments to
the Federal Home Loan Bank Act</header>
<subsection id="H50228C289BF64771B09771222570C91C"><enum>(a)</enum><header>Amendments to
section 18</header><text>Section 18(c) of the Federal Home Loan Bank Act (12
U.S.C. 1438(c)) is amended—</text>
<paragraph id="HFAB426BFEA40460884939D020037599F"><enum>(1)</enum><text>by striking
<quote>Director of the Office of Thrift Supervision</quote> each place it
appears and inserting <quote>Comptroller of the Currency</quote>;</text>
</paragraph><paragraph id="HCB146696031447BBB6A384E194B5F840"><enum>(2)</enum><text>in paragraph
(1)(B), by striking <quote>and the agencies under its administration or
supervision</quote>; and</text>
</paragraph><paragraph id="H7A2734B850BF4635A5F1AD9C8E627966"><enum>(3)</enum><text>in paragraph (5),
by striking <quote>and such agencies</quote>.</text>
</paragraph></subsection><subsection id="H84DF35621B3847B3A6172945E35C2C26"><enum>(b)</enum><header>Repeal of
section 21<enum-in-header>A</enum-in-header></header><text>Section 21A of the
Federal Home Loan Bank Act (12 U.S.C. 1441a) is hereby repealed.</text>
</subsection></section><section id="H857A300094C24DA9B74429C21B9C5D32"><enum>1240.</enum><header>Amendments to
the Federal Reserve Act</header><text display-inline="no-display-inline">Section 19(b) of the Federal Reserve Act (12
U.S.C. 461) is amended—</text>
<paragraph id="HF7DE594C941744E4A8995DD160EAB3AC"><enum>(1)</enum><text>in paragraph
(1)(F), by striking <quote>the Director of the Office of Thrift
Supervision</quote> and inserting <quote>the Comptroller of the
Currency</quote>; and</text>
</paragraph><paragraph id="H46E5ABF9A2104DB1B3142280255CD0EA"><enum>(2)</enum><text>in paragraph
(4)(B), by striking <quote>the Director of the Office of Thrift
Supervision</quote> and inserting <quote>the Comptroller of the
Currency</quote>.</text>
</paragraph></section><section id="H13CB18B8B6D647DC8CBDD7484329956E"><enum>1241.</enum><header>Amendments to
the Financial Institutions Reform, Recovery, and Enforcement Act of
1989</header>
<subsection id="HC99A78EDBCF64B419FED09C953B02DD6"><enum>(a)</enum><header>Amendments to
section 302</header><text>Section 302(1) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 is amended by striking <quote>Director of
the Office of Thrift Supervision</quote> and inserting <quote>Comptroller of
the Currency</quote>.</text>
</subsection><subsection id="H28CBAA5AC4364093BE98358358E87686"><enum>(b)</enum><header>Amendment to
section 305</header><text>Section 305(b)(1) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 is amended by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>.</text>
</subsection><subsection id="HF2C92DD27DC44A948D8866F5248DDA81"><enum>(c)</enum><header>Amendment to
section 308</header><text>Section 308(a) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended by
striking <quote>Director of the Office of Supervision</quote> and inserting
<quote>Comptroller of the Currency</quote>.</text>
</subsection><subsection id="H2EF4F8E0C02D411CADC67648F36DF951"><enum>(d)</enum><header>Amendments to
section 402</header><text>Section 402 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1437 note) is amended—</text>
<paragraph id="HA1FB8B1A6F4A4B07803CCA04F65C10E5"><enum>(1)</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>
</paragraph><paragraph id="H8FF2919934544DAA8F1D7330D8E11074"><enum>(2)</enum><text>in subsection (b),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>; and</text>
</paragraph><paragraph id="H36D34A7044284C0684FC7C2E504A989F"><enum>(3)</enum><text>in subsection
(e)—</text>
<subparagraph id="H8DDDE23E245644F9A1B586B3A3143E23"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>Office of Thrift Supervision</quote> and inserting
<quote>Office of the Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="H550A34F5E227455EBFF5EB4487939017"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>Director of the Office of Thrift Supervision</quote> each
place it appears and inserting <quote>Comptroller of the
Currency</quote>;</text>
</subparagraph><subparagraph id="H7E8D29E90FA24E78BBA4554A040CAA31"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>; and</text>
</subparagraph><subparagraph id="HFAD5E75BF46A44D3843C43F6D3CC7A95"><enum>(D)</enum><text>in paragraph (4),
by striking <quote>Director of the Office of Thrift Supervision</quote> and
inserting <quote>Comptroller of the Currency</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H88F8572471344D33906FD1759185C210"><enum>(e)</enum><header>Amendment to
section 1103</header><text>Section 1103(a)(2) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a)(2)) is amended
by striking <quote>and the Resolution Trust Corporation</quote>.</text>
</subsection><subsection id="H9420391EF8B8427AA4C5F378BF95DD63"><enum>(f)</enum><header>Amendments to
section 1205</header><text>Subsection 1205(b) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1818 note) is
amended—</text>
<paragraph id="H8E5E63BD055443C6A7ECE81F7774F6C8"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H93A231CF7EE94E4C8D396DBD28F10375"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>Director of the Office of Thrift Supervision, or the
Director’s designee</quote> and inserting <quote>Comptroller of the Currency,
or the Comptroller’s designee</quote>;</text>
</subparagraph><subparagraph id="H123752504AF44C4CB0EE0C5B637F4DF3"><enum>(B)</enum><text>by striking
subparagraph (D); and</text>
</subparagraph><subparagraph id="H60B5974BCD1F4AFD821CB4A4AC1F8290"><enum>(C)</enum><text>by redesignating
subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively;</text>
</subparagraph></paragraph><paragraph id="HDE0A9970EEF84526962A8AB76DE8AAC7"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>paragraph (1)(F)</quote> and inserting <quote>paragraph
(1)(E)</quote>;</text>
</paragraph><paragraph id="HF07C6C4C2FCF4CD7B5C8BDD4426DDBE3"><enum>(3)</enum><text>in paragraph (3),
by striking <quote>paragraph (1)(F)</quote> and inserting <quote>paragraph
(1)(E)</quote>; and</text>
</paragraph><paragraph id="H35D60625AF2044FB8C3F493213857BCE"><enum>(4)</enum><text>in paragraph (5),
by striking <quote>through (E)</quote> and inserting <quote>through
(D)</quote>.</text>
</paragraph></subsection><subsection id="HF1F51704715242A3AF36E7FCC287BA81"><enum>(g)</enum><header>Amendments to
section 1206</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>
<paragraph id="HFB92A0668D9445D2AD1BF74200DE5FBB"><enum>(1)</enum><text>by striking
<quote>the Oversight Board of the Resolution Trust Corporation</quote> and
inserting <quote>and</quote>; and</text>
</paragraph><paragraph id="HBDB7B7556B1A41788724E2D5E6DD7767"><enum>(2)</enum><text>by striking
<quote>, and the Office of Thrift Supervision,</quote>.</text>
</paragraph></subsection><subsection id="H7158ECA0FD6740EABBBCD8831911F9C4"><enum>(h)</enum><header>Amendments to
section 1216</header><text>Section 1216 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833e) is amended—</text>
<paragraph id="HF307698933A646139DF0D805C5A1296E"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HA8106BFC20E54C5BBEB0C57CFF42770D"><enum>(A)</enum><text>by striking
paragraphs (2), (5), and (6);</text>
</subparagraph><subparagraph id="H7D0C50013C47406F8E1FB1B2573D81C8"><enum>(B)</enum><text>by redesignating
paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and</text>
</subparagraph><subparagraph id="HAE1A1089CBA049BD8E4A0B2C69EA9964"><enum>(C)</enum><text>in paragraph (2)
(as redesignated), by adding <quote>and</quote> at the end;</text>
</subparagraph></paragraph><paragraph id="H46185220593C4484BF688D81ED2F7A53"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="HC651392C0B194F8A9A9F6C609D9FC365"><enum>(A)</enum><text>by striking
<quote>the Director of the Office of Thrift Supervision,</quote> and inserting
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="H012F46B360FB474BAF5BBB648A84C98D"><enum>(B)</enum><text>by striking
<quote>, the Oversight Board of the Resolution Trust Corporation, and the
Resolution Trust Corporation</quote>; and</text>
</subparagraph></paragraph><paragraph id="H8A5461BA6EA3466CAE3BAF2AEA433A68"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph id="H91F646105DC34698AEC987663E3B28FB"><enum>(A)</enum><text>by striking
paragraphs (3), (5) and (6); and</text>
</subparagraph><subparagraph id="HAFF352006767495EB8B4758BA69A8730"><enum>(B)</enum><text>by redesignating
paragraphs (4), (7), and (8) as paragraphs (3), (4), and (5),
respectively.</text>
</subparagraph></paragraph></subsection></section><section id="H0E415D3FC2664CEBA948A3AF5A03958B"><enum>1242.</enum><header>Amendments to
the 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 in the introductory text by striking
<quote>Director of the Office of Thrift Supervision</quote> and inserting
<quote>Comptroller of the Currency </quote>.</text>
</section><section id="H584E783DC5F94CE1ADD536F098F85861"><enum>1243.</enum><header>Amendments to
the Housing and Community Development Act of 1992 and the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</header>
<subsection id="H907FAB3E865C4CC5A075574BAD6743FD"><enum>(a)</enum><header>Amendments to
section 543 of the Housing and Community Development Act of
1992</header><text>Section 543 of the Housing and Community Development Act of
1992 (12 U.S.C. 1707 note) is amended—</text>
<paragraph id="HB9D10DD8AAB1470EB457B15E30AE32D0"><enum>(1)</enum><text>in subsection
(c)(1)—</text>
<subparagraph id="H144967752AD44C6DADD2A3AE723D1A36"><enum>(A)</enum><text>by striking
subparagraphs (D) through (F); and</text>
</subparagraph><subparagraph id="H4966DB2138154567AD268C0879756AB9"><enum>(B)</enum><text>by redesignating
subparagraphs (G) and (H) as subparagraphs (D) and (E), respectively;
and</text>
</subparagraph></paragraph><paragraph id="H7DE5C473DCD146DFBB8E861CA068FC6A"><enum>(2)</enum><text>in subsection
(f)—</text>
<subparagraph id="H06D2865E1BA84846A34B42061318A18F"><enum>(A)</enum><text>in paragraph
(2)—</text>
<clause id="H3520E0075CBF47F0A8A866C1DD62A998"><enum>(i)</enum><text>by
striking <quote>the Office of Thrift Supervision,</quote>; and</text>
</clause><clause id="H4459620D41FA4B97B6A88775C3D355E8"><enum>(ii)</enum><text>in
subparagraph (D), by striking <quote>the Office of Thrift Supervision,</quote>;
and</text>
</clause></subparagraph><subparagraph id="H8ED2C5FDB87F4414B58826A8C3A8E5E3"><enum>(B)</enum><text>in paragraph
(3)—</text>
<clause id="HB05DFAF21A2B4826BE93656883315BEB"><enum>(i)</enum><text>by
striking <quote>the Office of Thrift Supervision,</quote>; and</text>
</clause><clause id="H04639B1CEA9B439DA8916228581A7E58"><enum>(ii)</enum><text>in
subparagraph (D), by striking <quote>Office of Thrift Supervision,</quote> and
inserting <quote>Comptroller of the Currency,</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H101ACD8F1D594ECCB3E5E2FEB4EB5E86"><enum>(b)</enum><header>Amendment to
section 1315 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992</header><text>Section 1315(b) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4515(b)) is amended 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>
</subsection><subsection id="H45218979311C45749A1B8ACAF0972FB3"><enum>(c)</enum><header>Amendment to
section 1317 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992</header><text display-inline="yes-display-inline">Section 1317(c)
of the of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4517(c)) is amended 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>
</subsection></section><section id="HBB373554526E448097DDEF9A294DF3E4"><enum>1244.</enum><header>Amendment to
the 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 id="H4FD06A7565844F41B92A225DF8850270"><enum>1245.</enum><header>Amendments to
the National Housing Act</header><text display-inline="no-display-inline">Section 202(f) of the National Housing Act
is amended—</text>
<paragraph id="H78681365E0F94F4DA8A5D9366B0EAE27"><enum>(1)</enum><text>by amending
paragraph (5) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H922DC2DFCE4A4967A448367026C60100" style="OLC">
<paragraph id="HD041EBE8DF4B4CFEBCBA34CA6FAA7699"><enum>(5)</enum><text display-inline="yes-display-inline">if the mortgagee is a national bank, a
subsidiary or affiliate of such a 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 id="HCE63B79BBA9444D1A474709E2B83DFF4"><enum>(2)</enum><text>in paragraph (6),
by adding <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HF4F3B33B5A9447178FA2987E22379BFA"><enum>(3)</enum><text>in paragraph
(7)—</text>
<subparagraph id="H9DA5CA591B7840DD8B50E65955FC0072"><enum>(A)</enum><text>by inserting
<quote>or State savings association</quote> after <quote>State bank</quote>;
and</text>
</subparagraph><subparagraph id="HCB9219EB40F94C2897B1595B0D14ECB7"><enum>(B)</enum><text>by striking
<quote>; and</quote> and inserting a period; and</text>
</subparagraph></paragraph><paragraph id="H5C9A0072F63C4E209DE896BE4134F550"><enum>(4)</enum><text>by striking
paragraph (8).</text>
</paragraph></section><section id="HFA38DCE2A50E41A798D0FCC2DFA1EF77"><enum>1246.</enum><header>Amendments to
the Right to Financial Privacy Act of 1978</header><text display-inline="no-display-inline">Section 1101(7) of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3401(7)) is amended by striking subparagraph
(B).</text>
</section><section id="HDE061D6979C547C19EB269149AE7FA47"><enum>1247.</enum><header>Amendments to
the Balanced Budget and Emergency Deficit Control Act of 1985</header>
<subsection id="H4CAB187DE10B4427889547D410C9F61F"><enum>(a)</enum><header>Amendments to
section 255</header><text>Section 255(g)(1)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by
striking <quote>Office of Thrift Supervision (20–4108–0–3–373);</quote>.</text>
</subsection><subsection id="H3FA075D534F249DDB54B56A40744059D"><enum>(b)</enum><header>Amendments to
section 256</header><text>Section 256(h)(4) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 906(h)(4)) is amended—</text>
<paragraph id="H8383844AAD464133AC90052AAD3E4CE2"><enum>(1)</enum><text>by striking
subparagraphs (C) and (G); and</text>
</paragraph><paragraph id="H2055F806B75040179322A57D71770942"><enum>(2)</enum><text>by redesignating
subparagraphs (D), (E), (F), and (H) as subparagraphs (C) through (G),
respectively.</text>
</paragraph></subsection></section><section id="H70979BB439484B948FEE7D3F805B00BE"><enum>1248.</enum><header>Amendments to
the Crime Control Act of 1990</header>
<subsection id="H845AE601BCE4426F926A30B1A0EC05C9"><enum>(a)</enum><header>Amendments to
section 2539</header><text>Section 2539(c)(2) of the Crime Control Act of 1990
(Public Law 101–647) is amended by striking subparagraph (F) and redesignating
subparagraphs (G) and (H) as subparagraphs (F) through (G),
respectively.</text>
</subsection><subsection id="H99E26BC72CDE4182AAA2556A281E2C9D"><enum>(b)</enum><header>Amendment to
section 2554</header><text>Section 2554(b)(2) of the Crime Control Act of 1990
(Public Law 101–647) is amended by striking <quote>Director of the Office of
Thrift Supervision</quote> and inserting <quote>Comptroller of the
Currency</quote>.</text>
</subsection></section><section id="HBD3253BD5A704E96854711B952FD4558"><enum>1249.</enum><header>Amendment to
the 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="HB876D8644F894B98ADD0C8D36188E27D"><enum>1250.</enum><header>Amendment to
the Investment Company Act of 1940</header><text display-inline="no-display-inline">Section 6(a)(3) of the Investment Company
Act of 1940 (15 U.S.C. 80a–6(a)(3)) is amended by striking <quote>Federal
Savings and Loan Insurance Corporation</quote> and inserting <quote>Comptroller
of the Currency</quote>.</text>
</section><section id="HF49773044BA6446599A70F9EF40D2EDD"><enum>1251.</enum><header>Amendment to
the Neighborhood Reinvestment Corporation Act</header><text display-inline="no-display-inline">Section 606(c)(3) of the Neighborhood
Reinvestment Corporation Act is amended by striking <quote>Federal Home Loan
Bank Board</quote> and inserting <quote>Federal Housing Finance
Agency</quote>.</text>
</section><section id="HF1A1FCD0AC7C41C490E9BBD789390A78"><enum>1252.</enum><header>Amendments to
the Securities Exchange Act of 1934</header>
<subsection id="HD363B20D90FC4A5693877C8421BD1F66"><enum>(a)</enum><header>Amendments to
section 3</header><text>Section 3(a)(34) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(34)) is amended—</text>
<paragraph id="H357E3384688C419C89ADF058E96800DE"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="HA0D1AF65C7A54E228A49851DC0AC6DFB"><enum>(A)</enum><text>in clause (i), by
striking <quote>bank;</quote> and inserting <quote>bank, or a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(b))), the deposits of which are insured by the Federal Deposit
Insurance Corporation, a subsidiary or a department or division of any such
savings association, or a savings and loan holding;</quote>;</text>
</subparagraph><subparagraph id="H7E704A74CD334AE89B49C8C2A1F988CD"><enum>(B)</enum><text>in clause (iii),
by adding <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HB5159DEA0DD9431D9D885F9253D1139E"><enum>(C)</enum><text>by striking clause
(iv); and</text>
</subparagraph><subparagraph id="HBC8EA0C324194315BFB3326F7910E1D9"><enum>(D)</enum><text>by redesignating
clause (v) as clause (iv);</text>
</subparagraph></paragraph><paragraph id="HE676C181DAFC45A69B8E964FE3F5609B"><enum>(2)</enum><text>in subparagraph
(B)—</text>
<subparagraph id="H8DE384369B4341FEBDE5C75AE54E7C3B"><enum>(A)</enum><text>in clause (i), by
striking <quote>bank;</quote> and inserting <quote>bank, or a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813 (b))), the deposits of which are insured by the Federal Deposit
Insurance Corporation, a subsidiary or a department or division of any such
savings association, or a savings and loan holding;</quote>;</text>
</subparagraph><subparagraph id="H9CC40DDAC4E240B8B57F720B0EB8BDE6"><enum>(B)</enum><text>in clause (iii),
by adding <quote>and</quote> and the end;</text>
</subparagraph><subparagraph id="HFD201DB5216D4D3791ECA5E38296627B"><enum>(C)</enum><text>by striking clause
(iv); and</text>
</subparagraph><subparagraph id="H0F4C042DA7144017BB7F32614CA78789"><enum>(D)</enum><text>by redesignating
clause (v) as clause (iv);</text>
</subparagraph></paragraph><paragraph id="H689A777C11C64D27B217192E583662C8"><enum>(3)</enum><text>in subparagraph
(C)—</text>
<subparagraph id="H50C6C42087864CACA7D8C976D38BFD3F"><enum>(A)</enum><text>in clause (i), by
striking <quote>bank;</quote> and inserting <quote>bank, or a savings
association (as defined in section 3(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1813 (b))), the deposits of which are insured by the Federal Deposit
Insurance Corporation, a subsidiary or a department or division of any such
savings association, or a savings and loan holding;</quote>;</text>
</subparagraph><subparagraph id="HFE1C95180C01455BA5F635191156D8F5"><enum>(B)</enum><text>in clause (iii),
by adding <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HBEF36D3006BE419E8A38EF17FFC605DF"><enum>(C)</enum><text>by striking clause
(iv); and</text>
</subparagraph><subparagraph id="H766F042C2D9946B7BED61962348439CC"><enum>(D)</enum><text>by redesignating
clause (v) as clause (iv); and</text>
</subparagraph></paragraph><paragraph id="H0265D2FB6431447989E79341BD351E19"><enum>(4)</enum><text>in subparagraph
(F)—</text>
<subparagraph id="H4F4300E1F0A249B280AE453BC06A9CA6"><enum>(A)</enum><text>in clause (i), by
striking <quote>bank;</quote> and inserting <quote>or a savings association (as
defined in section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813
(b))), the deposits of which are insured by the Federal Deposit Insurance
Corporation;</quote>;</text>
</subparagraph><subparagraph id="H632C444FE31647BEB0900A6B4AEF1403"><enum>(B)</enum><text>by striking clause
(ii); and</text>
</subparagraph><subparagraph id="HC7E3A490DFA54EE2A8943820723B9AAF"><enum>(C)</enum><text>redesignating
clauses (iii), (iv), and (v) as clauses (ii), (iii) and (iv),
respectively.</text>
</subparagraph></paragraph></subsection><subsection id="HDD1DAB7813C04CC6AC9EA31CACB7FDD6"><enum>(b)</enum><header>Amendments to
section 15c</header><text>Section 15C of the Securities Exchange Act of 1934
(15 U.S.C. 78o-5) is amended in subsection (g)(1) by striking <quote>the
Director of the Office of Thrift Supervision, the Federal Savings and Loan
Insurance Corporation,</quote>.</text>
</subsection></section><section id="H6247994F0AE54B829F846810B59E6D85"><enum>1253.</enum><header>Amendments to
title 18, United States Code</header>
<subsection id="H44E254409C2448E6B83140C792335C95"><enum>(a)</enum><header>Amendment to
section 212</header><text>Section 212(c)(2) of title 18, United States Code, is
amended—</text>
<paragraph id="H5F19465DE08948CD988AA3876807FAAC"><enum>(1)</enum><text>by striking
subparagraph (C); and</text>
</paragraph><paragraph id="H7BF395FA0C7B473DBE6908A1B3A726FF"><enum>(2)</enum><text>by redesignating
subparagraphs (D) through (H) as subparagraphs (C) through (G),
respectively.</text>
</paragraph></subsection><subsection id="HAE5FABA1A2D34C42B9A4C900DD47B104"><enum>(b)</enum><header>Amendment to
section 657</header><text>Section 657 of title 18, United States Code, is
amended by striking <quote>Office of Thrift Supervision, the Resolution Trust
Corporation,</quote>.</text>
</subsection><subsection id="H15EC6EE95D2D48FE8642A870468FD4D0"><enum>(c)</enum><header>Amendment to
section 981</header><text>Section 981(a)(1)(D) of title 18, United States Code,
is amended—</text>
<paragraph id="H44C4438EF7BE4907BB6931E720A58B09"><enum>(1)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>; and</text>
</paragraph><paragraph id="H0C8323164133480B8E6F0790C1FAE960"><enum>(2)</enum><text>by striking
<quote>or the Office of Thrift Supervision</quote>.</text>
</paragraph></subsection><subsection id="H47098F944CD04DEC854E95421C498829"><enum>(d)</enum><header>Amendment to
section 982</header><text>Section 982(a)(3) of title 18, United States Code, is
amended—</text>
<paragraph id="HC1C2FA4945664FD3A528439EB7154A5A"><enum>(1)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>;and</text>
</paragraph><paragraph id="H1E18B257BB864F6EBED75CF8DD4C55F1"><enum>(2)</enum><text>by striking
<quote>or the Office of Thrift Supervision</quote>.</text>
</paragraph></subsection><subsection id="H6C3999377E404DAAAC73BE2529436022"><enum>(e)</enum><header>Amendment to
section 1006</header><text>Section 1006 of title 18, United States Code, is
amended—</text>
<paragraph id="H218C3407FB3643B29062231349DE4CBB"><enum>(1)</enum><text>by striking
<quote>Office of Thrift Supervision,</quote>; and</text>
</paragraph><paragraph id="H190AABBB4C664D85A5396335068C0BDA"><enum>(2)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>.</text>
</paragraph></subsection><subsection id="HB9F1064806454C9B928FFD120DA16FB6"><enum>(f)</enum><header>Amendment to
section 1014</header><text>Section 1014 of title 18, United States Code, is
amended—</text>
<paragraph id="H8F4D4D0461354DDF962DBC000B013068"><enum>(1)</enum><text>by striking
<quote>the Office of Thrift Supervision,</quote>; and</text>
</paragraph><paragraph id="HE4096DEC172243F7A228D561A00174FE"><enum>(2)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>.</text>
</paragraph></subsection><subsection id="HDCE1FB458C3549A38A3F84AFD612AA0F"><enum>(g)</enum><header>Amendment to
section 1032</header><text>Section 1032(1) of title 18, United States Code, is
amended—</text>
<paragraph id="H54458761356B488CB3CACE4106626467"><enum>(1)</enum><text>by striking
<quote>the Resolution Trust Corporation,</quote>; and</text>
</paragraph><paragraph id="H93C9AAE5D2B9432A96E8B1E196BD1A74"><enum>(2)</enum><text>by striking
<quote>or the Director of the Office of Thrift Supervision</quote>.</text>
</paragraph></subsection></section><section id="HE4565B57A08B48E085E36CCCAEA6580F"><enum>1254.</enum><header>Amendments to
title 31, United States Code</header>
<subsection id="H4DEBE17A05ED4C389445A3B38BE54584"><enum>(a)</enum><header>Amendment to
section 309</header><text>Section 309 of title 31, United States Code, is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3F2F4261CA0B438CB588BEB76360611F" style="USC">
<section id="H3B099819B6F7411789C66D29E37D218F"><enum>309.</enum><header>Division of
Thrift Supervision</header><text display-inline="no-display-inline">The
Division of Thrift Supervision established under section 3(a) of the Home
Owners’ Loan Act shall be a division in the Office of the Comptroller of the
Currency.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBFC24C6B732346EF8F4113BEEADC57F8"><enum>(b)</enum><header>Amendments to
section 321</header><text>Section 321 of title 31, United States Code, is
amended—</text>
<paragraph id="H6A77D3BA8FC94E529E6C35A4438C7385"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="H63634E2B719046FBAEA075E7B48C7013"><enum>(A)</enum><text>in paragraph (1),
by adding <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H866BA802B9CE4308B50B64875D38657A"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>; and</quote> and inserting a period; and</text>
</subparagraph><subparagraph id="H1C86D8DECFAB4AC497715D810AEEA305"><enum>(C)</enum><text>by striking
paragraph (3); and</text>
</subparagraph></paragraph><paragraph id="H3606A389C82E4F209436639B9188B285"><enum>(2)</enum><text>by striking
subsection (e).</text>
</paragraph></subsection><subsection id="H1F867129A8524F6F9AA85E5163AB1FB7"><enum>(c)</enum><header>Amendments to
section 714</header><text>Section 714 of title 31, United States Code, is
amended—</text>
<paragraph id="H3BE80582169C438E8828738DE3CB7966"><enum>(1)</enum><text>in subsection (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><paragraph id="H6C0180049EDD4CA1874107265616D926"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by striking all after
<quote>has consented in writing.</quote> and inserting the following:
<quote>Audits of the Federal Reserve Board and Federal reserve banks shall not
include unreleased transcripts or minutes of meetings of the Board of Governors
or of the Federal Open Market Committee. To the extent that an audit deals with
individual market actions, records related to such actions shall only be
released by the Comptroller General after 180 days have elapsed following the
effective date of such actions.</quote>;</text>
</paragraph><paragraph id="HA63ED3FB88FE45968AC82407231FF445"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (c)(1), in the first
sentence, by striking <quote>subsection,</quote> and inserting
<quote>subsection or in the audits or audit reports referring or relating to
the Federal Reserve Board or Reserve Banks,</quote>; and</text>
</paragraph><paragraph id="H2ADE6E34D4B14309AAB794CD035105CB"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H22D630653FB44944990EE1607EB9D3DB" style="OLC">
<subsection id="H2A2A1A0F8A72479ABFC4FBECD7C6D2F7"><enum>(f)</enum><header>Audit and report
of the Federal Reserve System</header>
<paragraph id="H374C05D9BDBE49F19E8005C085B7BFF8"><enum>(1)</enum><header>In
general</header><text>An audit of the Board of Governors of the Federal Reserve
System and the Federal reserve banks under subsection (b) shall be completed
within 12 months of the enactment of the Financial Stability Improvement Act of
2009.</text>
</paragraph><paragraph id="HBE9409FDB82C4BE2B566FF57FD5E9B48"><enum>(2)</enum><header>Report</header>
<subparagraph id="H2E06BD5FE0F44C01A1494829D782F4FF"><enum>(A)</enum><header>Required</header><text>A
report on the audit referred to in 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 made available
to—</text>
<clause id="H0D3CD1CA5C1F41FC8AA5D07842BF1C97"><enum>(i)</enum><text>the Speaker of the
House of Representatives;</text>
</clause><clause id="H280C58402049430991DF65736C56EFE3"><enum>(ii)</enum><text>the majority and
minority leaders of the House of Representatives;</text>
</clause><clause id="HFE49EE3AF2134B93AD22E60331297C19"><enum>(iii)</enum><text>the majority and
minority leaders of the Senate;</text>
</clause><clause id="HA3D81F130ADD4A5B9FAC38D8CE903D1C"><enum>(iv)</enum><text>the Chairman and
Ranking Member of the committee and each subcommittee of jurisdiction in the
House of Representatives and the Senate; and</text>
</clause><clause id="H1C848568FFFF4563A1536097C60CA499"><enum>(v)</enum><text>any other Member
of Congress who requests it.</text>
</clause></subparagraph><subparagraph id="H5A79FF4D08F14F47A837C41F3E3F368A"><enum>(B)</enum><header>Contents</header><text display-inline="yes-display-inline">The report under subparagraph (A) shall
include a detailed description of the findings and conclusion of the
Comptroller General with respect to the audit that is the subject of the
report.</text>
</subparagraph></paragraph><paragraph id="H5FD256F4C0BB4274AA8DE32522EC8DFB"><enum>(3)</enum><header>Construction</header><text display-inline="yes-display-inline">Nothing in this subsection shall be
construed—</text>
<subparagraph id="H13E64C8DBFCD4C0BB273A0754E0420F9"><enum>(A)</enum><text>as interference in
or dictation of monetary policy to the Federal Reserve System by the Congress
or the Government Accountability Office; or</text>
</subparagraph><subparagraph id="H99DD2A0D79D246E89C3ABFE4C803DC30"><enum>(B)</enum><text display-inline="yes-display-inline">to limit the ability of the Government
Accountability Office to perform additional audits of the Board of Governors of
the Federal Reserve System or of the Federal reserve
banks.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H9B590E1AB02541F2AC49504820F2D793" section-type="subsequent-section"><enum>1255.</enum><header>Requirement for
Countercyclical Capital Requirements</header><text display-inline="no-display-inline">Section 908(a) of the International Lending
Supervision Act of 1983 (12 U.S.C. 3907(a)) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB7F654EDC1D3444F86411F82B4D27435" style="OLC">
<paragraph id="HFDEDF8BB15104A4FA31DB66526DA8417"><enum>(3)</enum><text display-inline="yes-display-inline">Each appropriate Federal banking agency
shall, in establishing capital requirements under this Act or other provisions
of Federal law for banking institutions, seek to make such requirements
countercyclical so that the amount of capital required to be maintained by a
banking institution increases in times of economic expansion and may decrease
in times of economic contraction, consistent with the safety and soundness of
the
institution.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEC838B9205EE44D585AA7E9B67D3144D"><enum>1256.</enum><header>Transfer of
authority to the Board with respect to savings and loan holding
companies</header>
<subsection display-inline="no-display-inline" id="HD62B5CCDDF8D4FF2B3CAECFA27184800"><enum>(a)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this subtitle, all functions of the Director of the Office
of Thrift Supervision with respect to savings and loan holding companies that
are, on a consolidated basis, predominantly engaged in the business of
insurance are transferred to the Board.</text>
</subsection><subsection id="H20AEC8FFB29B4EBE96C9A9ECCBE3781F"><enum>(b)</enum><header>Board’s
authority</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this subtitle, the Board shall succeed to all powers,
authorities, rights, and duties with respect to savings and loan holding
companies that are, on a consolidated basis, predominantly engaged in the
business of insurance that were vested in the Director of the Office of Thrift
Supervision under Federal law, including the Home Owners’ Loan Act, on the day
before the transfer date.</text>
</subsection><subsection id="H042749676F25486F8063F42BFC3AA69D"><enum>(c)</enum><header>Savings and loan
holding company defined</header><text>The term <quote>savings and loan holding
company</quote> shall have the meaning given such term under section 10 of the
Home Owners’ Loan Act.</text>
</subsection></section></subtitle><subtitle id="HAA9E35FC679540CDACF2BDC4F6EC7004"><enum>D</enum><header>Further
improvements to the regulation of bank holding companies and depository
institutions</header>
<section id="HE9F6F9F2AE374140A5E73D23BA0C84CC"><enum>1301.</enum><header>Treatment of
industrial loan companies, savings associations, and certain other companies
under the bank holding company act</header>
<subsection id="H07B83F6D62B64D98B57165B6B1E4CFBB"><enum>(a)</enum><header>Definitions</header><text>Section
2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) is amended—</text>
<paragraph id="HBADD340CE07C49CAA7412055103C7F19"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (a)(1) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H0BFC3122CC704AFC8F61D04A24FBAF1A" style="OLC">
<subsection id="H76EAA795D4434B029EEC72CF6FB410D1"><enum>(a)</enum><header>Bank holding
company</header>
<paragraph id="HAD185B4093CD41CCAE89A5B6D4D7C58D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (5), the term <quote>bank holding company</quote> means—</text>
<subparagraph id="HCE30E9394997403CA439549E705361F6"><enum>(A)</enum><text>any company, other
than a company described in section 4(p), which has control over any bank or
over any company that is or becomes a bank holding company by virtue of this
Act; and</text>
</subparagraph><subparagraph id="H226DA2CE486E424F949291D33D0FA2B8"><enum>(B)</enum><text>any section 6
holding company established by a company described in section
6(a)(1)(C).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H63D080D85663488A8FA675D00D2ECDA8"><enum>(2)</enum><text>in subsection
(a)(5), by adding at the end the following new subparagraph:</text>
<quoted-block id="H6B94A8D255C041FC9AC3910C2730721B" style="OLC">
<subparagraph id="HA78FB95820D24C98844C07631A6DD517"><enum>(G)</enum><text>No company is a
bank holding company by virtue of its ownership or control of a section 6
holding company or any subsidiary of a section 6 holding company, so long as
the requirements of sections 4(p) and 6 of this Act are met, as applicable, by
the section 6 holding
company;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0449C289C18B457882DEA0456425CE9C"><enum>(3)</enum><text>in subsection
(c)(1)(A), by striking <quote>insured bank</quote> and inserting <quote>insured
depository institution</quote>, and by striking <quote>section 3(h) of the
Federal Deposit Insurance Act</quote> and inserting <quote>section 3(c)(2) of
the Federal Deposit Insurance Act</quote>;</text>
</paragraph><paragraph id="H6F732231564247C49C4907782DD1528B"><enum>(4)</enum><text>in subsection
(c)(2)—</text>
<subparagraph id="HB58B58659D924A0E84B66284005D443D"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting before
the period the following: <quote>that is controlled by a company that is, on a
consolidated basis, predominantly engaged in the business of insurance</quote>;
and</text>
</subparagraph><subparagraph id="H28C96BF5E9A44C4FA73D53038CF4DD89"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (H); and</text>
</subparagraph></paragraph><paragraph id="H6B4DD7EAAE014C239F3A28DE0A558BE5"><enum>(5)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="H9D0B1B522F3E402F84CE334BEA5926A4" style="OLC">
<subsection id="H7CC01DA53E6C4B1F85F8FEAAAB7EFDA6"><enum>(r)</enum><header>Section 6
holding companies</header><text>The term <quote>section 6 holding
company</quote> means a company that is required to be established as an
intermediate holding company under section 6 of this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HAE14227CEAB347E9B104F27904E0F50F"><enum>(b)</enum><header>Nonbanking
activities exceptions</header><text>Section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843) is amended—</text>
<paragraph id="H3D87502FE8474EED8F958D3E041434E0"><enum>(1)</enum><text>in subsection
(f)(1)(B) by striking <quote>for purposes of this Act</quote> and inserting
<quote>for purposes of section 4(a)</quote>; and</text>
</paragraph><paragraph id="H9CC912E061B54567A7CEEC4635539E4F"><enum>(2)</enum><text>in subsection
(f)(2)—</text>
<subparagraph id="H35183BD127F648DD886343E8222B8C61"><enum>(A)</enum><text>in subparagraph
(B)(ii), by striking <quote>; or</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="H1CCDD30B085C4D939FE4F7AAABEFCA10"><enum>(B)</enum><text>in subparagraph
(C), by striking the period and inserting <quote>; or</quote>; and</text>
</subparagraph><subparagraph id="HA6C0BA9B9C414AEFA1D0E6B1EC0660E7"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block id="H60724192EFC8453A9913FF7073E2D558" style="OLC">
<subparagraph id="H1DDC0FEAF9D44C558D0C3E4F10EA2D87"><enum>(D)</enum><text>such company fails
to—</text>
<clause id="HEA940B1F54D74D75996B3E93D9F0ADC3"><enum>(i)</enum><text display-inline="yes-display-inline">establish and register a section 6 holding
company pursuant to section 6 of this Act within 180 days after the adoption of
rules required by this section; and</text>
</clause><clause id="HBE2E3830855F41DCB18981C762B1EFFF"><enum>(ii)</enum><text display-inline="yes-display-inline">conduct such activities which are
permissible for a financial holding company, as determined under section 4(k),
through such section 6 holding company, other than internal financial
activities conducted for such company or any affiliate, including, but not
limited to internal treasury, investment, and employee benefit functions,
provided that with respect to any internal financial activity engaged in for
the company or an affiliate and a nonaffiliate during the year prior to date of
enactment, the company (or an affiliate not a subsidiary of the section 6
company) may continue to engage in that activity so long as at least two-thirds
of the assets or two-thirds of the revenues generated from the activity are
from or attributable to the company or an affiliate, subject to review by the
Board to determine whether engaging in such activity presents undue risk to the
section 6 company or undue systemic
risk.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H153D9F6BB73D4EAFA80578DA52C6607B"><enum>(3)</enum><text>by inserting at
the end the following new subsections:</text>
<quoted-block id="H4173C63ECB6546F9A4A30925323B7E09" style="OLC">
<subsection id="H5B16B7902EA840639E8558A24B30D7C0"><enum>(p)</enum><header>Certain
companies not subject to this act</header>
<paragraph id="HD938A88832264348AFEE087C3100FEB5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraphs (6) and (7), any company which—</text>
<subparagraph id="H09A8DBC4C269491F8A3DC94BF9258CE4"><enum>(A)</enum><text>was—</text>
<clause id="HE5234865A23443C5A0D118A6952409FD"><enum>(i)</enum><text>a
unitary savings and loan holding company on May 4, 1999, or became a unitary
savings and loan holding company pursuant to an application pending before the
Director of the Office of Thrift Supervision on of before that date, and
that—</text>
<subclause id="H77A2F489AC4A4311B1E0C7993089E376"><enum>(I)</enum><text>on June 30, 2009,
continued to control not fewer than 1 savings association that it controlled on
May 4, 1999, or that such company acquired pursuant to an application pending
before the Director of the Office of Thrift Supervision on or before such date,
which became a bank for purposes of the Bank Holding Company Act as a result of
the enactment of section 1301(a)(4)(A); and</text>
</subclause><subclause id="H99D2750859714521876021585FC7280F"><enum>(II)</enum><text>on June 30, 2009,
and the date of enactment of the Financial Stability Improvement Act of 2009,
such savings association subsidiary was and remains a qualified thrift lender
(as determined by section 10 of the Home Owners’ Loan Act); or</text>
</subclause></clause><clause display-inline="no-display-inline" id="H61A3C7C2F9C4492A9B0177E0073905C5"><enum>(ii)</enum><text display-inline="yes-display-inline">on November 23, 2009—</text>
<subclause id="H1096133334634DA782C61E1990B1C826"><enum>(I)</enum><text>controlled an
institution which became a bank as a result of the enactment of section
1301(a)(3)(B) of the Financial Stability Improvement Act of 2009;</text>
</subclause><subclause id="H97DA6D75E8144C7886CE2271378F4189"><enum>(II)</enum><text display-inline="yes-display-inline">had an application pending, or approved but
not executed, before the Federal Deposit Insurance Corporation, that, if
approved, would permit the applicant to control an industrial loan company,
industrial bank, or other similar institution—</text>
<item id="HA0225F87921146CA944952E534FEB108"><enum>(aa)</enum><text>that is a
federally insured, State-chartered depository institution;</text>
</item><item id="H84FE21DC8F8B4D5CAA1348F56DB97A27"><enum>(bb)</enum><text>that is organized
under the laws of a State that on March 5, 1987, had in effect, or had under
consideration in the legislature of such State, a statute that required such
institution to obtain insurance under the Federal Deposit Insurance Act;
and</text>
</item><item id="H728696E828BC48D793416BCECC3A1437"><enum>(cc)</enum><text>that—</text>
<subitem id="H9765C3D76E7943E0B7C538CFC1D82F36"><enum>(AA)</enum><text>does not accept
demand deposits that the depositor may withdraw by check or similar means for
payment to third parties; or</text>
</subitem><subitem id="H2090E8AA1AE843F9BBF57F7B211ACCAF"><enum>(BB)</enum><text>maintains total
assets of less than $100,000,000; or</text>
</subitem></item></subclause><subclause id="H901B4F348CD541568A4C3638CD23E35E"><enum>(III)</enum><text display-inline="yes-display-inline">controlled an institution it has
continuously controlled since March 5, 1987, which became a bank as a result of
the enactment of the Competitive Equality Banking Act of 1987, pursuant to
subsection (f);</text>
</subclause></clause></subparagraph><subparagraph id="H429133A92EE140B6B60884D37C4A5493"><enum>(B)</enum><text display-inline="yes-display-inline">was not on June 30, 2009—</text>
<clause id="H03B97476A36B4AD8842AA0DC89BA3702"><enum>(i)</enum><text>a
bank holding company; or</text>
</clause><clause id="HDDBF935CE05645B4B4F8ADD53536A6F7"><enum>(ii)</enum><text display-inline="yes-display-inline">subject to the Bank Holding Company Act of
1956 by reason of section 8(a) of the International Banking Act of 1978 (12
U.S.C. 3106(a)); and</text>
</clause></subparagraph><subparagraph id="H93AFD2383DA84CAE98DA962FFFF242C0"><enum>(C)</enum><text display-inline="yes-display-inline">on June 30, 2009, directly or indirectly
controlled shares or engaged in activities that did not, on the day before the
date of enactment of the Financial Stability Act of 2009, comply with the
activity or investment restrictions on financial holding companies in section 4
in accordance with regulations prescribed by the Board,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">shall not
be treated as a bank holding company for purposes of this Act solely by virtue
of such company’s control of such institution and control of a section 6
holding company established pursuant to section 6.</continuation-text></paragraph><paragraph id="H2C8E0134DB4C4BD09FA29917261A5FF2"><enum>(2)</enum><header>Loss of
exemption</header><text>A company described in paragraph (1) shall no longer
qualify for the exemption provided under that paragraph if—</text>
<subparagraph id="H40CBE8F5D8954778905C6BA5AE6A87E9"><enum>(A)</enum><text>such company fails
to—</text>
<clause id="H134CC759430B43ABA5DA2FB66ED84B35"><enum>(i)</enum><text display-inline="yes-display-inline">establish and register a section 6 holding
company pursuant to section 6 of this Act within 180 days after adoption of
rules required by this section, unless the Board grants an extension of such
period for compliance which shall not exceed 180 additional days; and</text>
</clause><clause id="H2B1C04455C0445D6879AC38A45BFBD48"><enum>(ii)</enum><text>maintain a
section 6 holding company in compliance with all the requirements for a section
6 holding company under section 6 of this Act.</text>
</clause></subparagraph><subparagraph id="H692B7C1481C7411D840B0A91EC184CF5"><enum>(B)</enum><text display-inline="yes-display-inline">such company directly or indirectly
(including through the section 6 holding company it must form pursuant to this
subsection and section 6 of this Act) acquires control of an additional bank or
insured depository institution after June 30, 2009, provided that such company
directly or indirectly (including through the section 6 holding company) may
acquire—</text>
<clause id="HD6DCF76AAD664BD8B3C724AAFC384AE9"><enum>(i)</enum><text>shares held as a
bona fide fiduciary (whether with or without the sole discretion to vote such
shares);</text>
</clause><clause id="H5BE7197F7B69463C85434FB0C1F68E11"><enum>(ii)</enum><text>shares held by
any person as a bona fide fiduciary solely for the benefit of employees of
either the company described in paragraph (1) or any subsidiary of that company
and the beneficiaries of those employees;</text>
</clause><clause id="H70F416DA776F4F0E80B1DC50A022562B"><enum>(iii)</enum><text>shares held
temporarily pursuant to an underwriting commitment in the normal course of an
underwriting business;</text>
</clause><clause id="H57A10001D24944EBAE24BABB347ADADB"><enum>(iv)</enum><text>shares held in an
account solely for trading purposes;</text>
</clause><clause id="H364D071E2BA748EB9D3F3F803B6138B8"><enum>(v)</enum><text>shares over which
no control is held other than control of voting rights acquired in the normal
course of a proxy solicitation;</text>
</clause><clause id="HE7B0D79982514F7C8580B376A672CDCD"><enum>(vi)</enum><text>loans or other
accounts receivable acquired from an insured depository institution in the
normal course of business;</text>
</clause><clause id="HF28B847274AA4B328D9CEA7617A3FE3C"><enum>(vii)</enum><text>shares or assets
acquired in securing or collecting a debt previously contracted in good faith,
during the 2-year period beginning on the date of such acquisition or for such
additional time (not exceeding 3 years) as the Board may permit if the Board
determines that such an extension will not be detrimental to the public
interest;</text>
</clause><clause id="H66A1B514F5DC4A51AE6389E7A2F8C194"><enum>(viii)</enum><text display-inline="yes-display-inline">shares or assets acquired directly or
indirectly by a depository institution controlled by such company in a
transaction involving an insured depository institution for which the Federal
Deposit Insurance Corporation has been appointed as receiver or which has been
found to be in danger of default (as defined in section 3 of the Federal
Deposit Insurance Act) by the appropriate Federal or State authority;</text>
</clause><clause id="HEF8A466D86264F6A990F90322EC1CC73"><enum>(ix)</enum><text>shares or assets
of another industrial loan company meeting the requirements of this Act if such
company continuously controlled an industrial loan company since the date of
enactment of the Financial Stability Improvement Act of 2009; and</text>
</clause><clause id="HE1D0F24C1D9E4F32866ADE7C1E8257C5"><enum>(x)</enum><text>shares or assets
of a savings association acquired directly or indirectly by the savings
association controlled by such company if such company continuously controlled
a savings association since the date of enactment of the Financial Stability
Improvement Act of 2009;</text>
</clause></subparagraph><subparagraph id="HA0008DB54C6245839781511111567E32"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H71E088B798B84A009FC271EA19B16356"><enum>(i)</enum><text>the section 6 holding
company required to be established by such company, or any subsidiary bank of
such company undergoes a change in control after the date of enactment of the
Financial Stability Improvement Act of 2009, other than—</text>
<subclause id="H809DD615CCBA4747AD06DD9D0865F21C" indent="up1"><enum>(I)</enum><text>the merger or whole acquisition of such
parent company in a bona fide merger or acquisition (as shall be determined by
the Board, which is authorized to find that a transaction is not a bona fide
merger or acquisition and thus results in the loss of exemption), with a
company that is predominantly engaged in activities not permissible for a
financial holding company pursuant to section 4(k), or</text>
</subclause><subclause id="H97851ACB358045B0AF7F59DF8E8F15F4" indent="up1"><enum>(II)</enum><text>the acquisition of additional shares by
a company that owned or controlled 7.5 percent or more of any class of such
parent company’s outstanding voting stock on or before June 30, 2009, and
continuously owned or controlled at least such 7.5 percent since June 30,
2009.</text>
</subclause></clause><clause id="H8FD9EFB9455B461DB8B4E34387D7CEBB" indent="up1"><enum>(ii)</enum><text>Nothing in this subparagraph shall
be construed as preventing the Board from requiring compliance with this
subsection, section 6 or the requirements of the Change in Bank Control Act, as
applicable to a company that is permitted to acquire control without loss of
the exemption in this subsection 4(p)(2); or</text>
</clause></subparagraph><subparagraph id="HECF2D356CD3C47FB85AC8338E71DF5BE"><enum>(D)</enum><text>any subsidiary
bank of such company engages in any activity after the date of enactment of the
Financial Stability Improvement Act of 2009 which would have caused such
institution to be a bank (as defined in section 2(c) of this Act, as in effect
before such date) if such activities had been engaged in before such
date.</text>
</subparagraph></paragraph><paragraph id="HAAE982223EBA440BB9250005721946E9"><enum>(3)</enum><header>Divestiture in
case of loss of exemption</header><text>If any company described in paragraph
(1) fails to qualify for the exemption provided under paragraph (1) by
operation of paragraph (2), such exemption shall cease to apply to such company
and such company shall divest control of each bank it controls before the end
of the 180-day period beginning on the date on which the company receives
notice from the Board that the company has failed to continue to qualify for
such exemption, unless, before the end of such 180-day period, the company
has—</text>
<subparagraph id="H61CEDD50ADFF4BFDACDB7BC6AA3F7705"><enum>(A)</enum><text>either—</text>
<clause id="H4BBA1CEBB2EF4058A8BCCB0EF57C7E2C"><enum>(i)</enum><text>corrected the
condition or ceased the activity that caused the company to fail to continue to
qualify for the exemption; or</text>
</clause><clause id="H7555E7A0DBEC49FCA8D458466FB21291"><enum>(ii)</enum><text>submitted a plan
to the Board for approval to cease the activity or correct the condition in a
timely manner (which shall not exceed 1 year); and</text>
</clause></subparagraph><subparagraph id="HE4B5480B4515459E9C244DF13B773131"><enum>(B)</enum><text>implemented
procedures that are reasonably adapted to avoid the reoccurrence of such
condition or activity.</text>
</subparagraph></paragraph><paragraph id="HFB3F281EC15D4584B709634C6A2CCFFC"><enum>(4)</enum><header>Subsection
ceases to apply under certain circumstances</header><text>This subsection shall
cease to apply to any company described in paragraph (1) if such
company—</text>
<subparagraph id="H682D47B25D864452936083EE30432416"><enum>(A)</enum><text>registers as a
bank holding company under section 2(a) of this Act;</text>
</subparagraph><subparagraph id="H4071C405533D451EBE4BD485D32B35B6"><enum>(B)</enum><text>immediately upon
such registration, complies with all of the requirements of this chapter, and
regulations prescribed by the Board pursuant to this chapter, including the
nonbanking restrictions of this section; and</text>
</subparagraph><subparagraph id="H1F468F40D38E409EBD1326A3D9364138"><enum>(C)</enum><text>does not, at the
time of such registration, control banks in more than one State, the
acquisition of which would be prohibited by section 3(d) of this Act if an
application for such acquisition by such company were filed under section 3(a)
of this Act.</text>
</subparagraph></paragraph><paragraph id="HBAE0C8FCA63240D097C94879FEF48F41"><enum>(5)</enum><header>Information
requirement</header><text>Each company described in paragraph (1) shall, within
60 days after the date of enactment of the Financial Stability Improvement Act
of 2009, provide the Board with the name and address of such company, the name
and address of each bank such company controls, and a description of each such
bank’s activities.</text>
</paragraph><paragraph id="H30462E8C235B432DAEAAFDDF785F1070"><enum>(6)</enum><header>Examinations and
reports</header><text>The Board may, from time to time, examine a company
described in paragraph (1) or a bank controlled by such a company, and may
require reports under oath from a company described in paragraph (1), and
appropriate officers or directors of such company, in each case solely for
purposes of assuring compliance with the provisions of this subsection and
enforcing such compliance.</text>
</paragraph><paragraph id="H19B53115D97944B0BF30DFF3B71CB536"><enum>(7)</enum><header>Limited
enforcement</header>
<subparagraph id="H0BB915860FC24C19AA343ABF648EFA30"><enum>(A)</enum><header>In
general</header><text>In addition to any other power of the Board, the Board
may enforce compliance with the provisions of this subsection which are
applicable to any company described in paragraph (1), and any bank controlled
by such company, under section 8 of the Federal Deposit Insurance Act, and such
company or bank shall be subject to such section (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="H9D0EE33A11E548849385DA5D1D3B1E94"><enum>(B)</enum><header>Application of
other act</header><text>Any violation of this subsection by any company
described in paragraph (1) or any bank controlled by such a company, may also
be treated as a violation of the Federal Deposit Insurance Act for purposes of
subparagraph (A).</text>
</subparagraph><subparagraph id="H8A9EC0C6D2D94F55AF7F37824BB8CBE6"><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="HCBA4FF48961948F7AAB34489C8223BDB"><enum>(q)</enum><header>Preservation of
certain savings and loan holding company authorities</header><text display-inline="yes-display-inline">Notwithstanding subsection (a), a company
that was a savings and loan holding company on June 30, 2009, that became a
bank holding company by operation of section 1301 of the Financial Stability
Improvement Act of 2009 may continue to engage in the following activities in
which such company was continuously engaged on June 30, 2009 through the day of
enactment of the Financial Stability Improvement Act of 2009:</text>
<paragraph id="HD088D0A2EF744500A856CDAA38CD5713"><enum>(1)</enum><text>Furnishing or
performing management services for a savings association subsidiary of such
company.</text>
</paragraph><paragraph id="H71FC2C1441D945AE94C843F7C1E33FE7"><enum>(2)</enum><text>Conducting an
insurance agency or escrow business.</text>
</paragraph><paragraph id="H26A2746D18B74783B41FFABE29B45198"><enum>(3)</enum><text>Holding, managing,
or liquidating assets owned or acquired from a savings association subsidiary
of such company.</text>
</paragraph><paragraph id="H0469E6E15BC54731A6906161B077D5A7"><enum>(4)</enum><text>Holding or
managing properties used or occupied by a savings association subsidiary of
such company.</text>
</paragraph><paragraph id="H377093405A2945ADB574AB9BF87B2C00"><enum>(5)</enum><text>Acting as trustee
under deed of trust.</text>
</paragraph><paragraph id="H430D38E87F62434987C6D858A6145D6D"><enum>(6)</enum><text>Any other activity
in which multiple savings and loan holding companies were authorized (by
regulation) to directly engage on March 5,
1987.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4367CBC0ED1E43EA9B6B788934B93ADE"><enum>(c)</enum><header>Section 6
holding companies</header><text>The Bank Holding Company Act of 1956 (12 U.S.C.
1841 et seq.) is amended by inserting after section 5 the following new
section:</text>
<quoted-block id="H12E7275412D54BF3B9CDFBE940E2C11F" style="OLC">
<section id="H19D4819C2A874D30AACD415A6CCFE014"><enum>6.</enum><header>Special-purpose
holding companies</header>
<subsection id="HB3D3BD0A38264CACBD1EDFE8D9E6A4B1"><enum>(a)</enum><header>Establishment,
purpose and requirements of special purpose holding companies</header>
<paragraph id="H05946D15A9414723B1269C7C8C2E6790"><enum>(1)</enum><header>Requirement</header><text>A
special purpose holding company (hereafter in this section referred to as a
<quote>section 6 holding company</quote>) shall be established and maintained
by a company—</text>
<subparagraph id="HB5A3D89F88E941809656B7C2741B0A5B"><enum>(A)</enum><text>described in
section 4(f)(1) as required by section 4(f)(2)(D) of this Act;</text>
</subparagraph><subparagraph id="H7F1B13DD76464280B5B5AA381482C99A"><enum>(B)</enum><text>described in
section 4(p)(1) as required by section 4(p)(2)(A) of this Act; or</text>
</subparagraph><subparagraph id="H000AE01018AD4BA78460D2FE0DA26C93"><enum>(C)</enum><text>that—</text>
<clause id="HB6794F9DD6DB4280BBF6C4185A59A3E8"><enum>(i)</enum><text>is
subject to stricter prudential standards under subtitle B of the Financial
Stability Improvement Act of 2009;</text>
</clause><clause id="H5D1E9B1EA37446769070B4AADAD83F81"><enum>(ii)</enum><text>is not—</text>
<subclause id="H4099252F2DE7421181CFB83BD554C691"><enum>(I)</enum><text>a bank holding
company, or</text>
</subclause><subclause id="HB91E6410B23D44FC9FCCDD793E2C34AC"><enum>(II)</enum><text>subject to the
Bank Holding Company Act by reason of section 8(a) of the International Banking
Act of 1978 (12 U.S.C. 3106(a)); and</text>
</subclause></clause><clause id="HF9DE3BEFE616448B81821CF89729DA2F"><enum>(iii)</enum><text>directly or
indirectly controlled shares or engaged in activities that did not, on the date
the company is first subject to stricter prudential standards pursuant to
subtitle B of the Financial Stability Improvement Act of 2009, comply with the
activity or investment restrictions on financial holding companies in section 4
in accordance with regulations prescribed by the Board.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H0F4C47E1F3E6466A9FB17F6348165EA6"><enum>(2)</enum><header>Purpose</header>
<subparagraph id="H453CE87F65F144C7969FB00CA56AF7FA"><enum>(A)</enum><text display-inline="yes-display-inline">The purpose of this section is to provide
for consolidated supervision of certain financial companies by the
Board.</text>
</subparagraph><subparagraph id="HB67045601BBE4BE1BED7253355A80999"><enum>(B)</enum><text display-inline="yes-display-inline">A company that is required to form a
section 6 holding company shall conduct such activities which are permissible
for a financial holding company, as determined under section 4(k), through such
section 6 holding company, other than internal financial activities conducted
for such company or any affiliate, including, but not limited to internal
treasury, investment, and employee benefit functions, provided that with
respect to any internal financial activity engaged in for the company or an
affiliate and a nonaffiliate during the year prior to date of enactment, the
company (or an affiliate not a subsidiary of the section 6 company) may
continue to engage in that activity so long as at least two-thirds of the
assets or two-thirds of the revenues of generated from the activity are from or
attributable to the company or an affiliate, subject to review by the Board to
determine whether engaging in such activity presents undue risk to the section
6 company or undue systemic risk.</text>
</subparagraph><subparagraph id="H162D9D49F5A548E58FC550369D17341C"><enum>(C)</enum><text display-inline="yes-display-inline">A section 6 holding company shall be
prohibited from conducting any nonbanking activities or investing in any
nonbank companies other than those permissible for a financial holding company
under sections 3 and 4, unless the Board specifically determines otherwise in
accordance with paragraph (6), and provided that, for purposes of this
paragraph, a company designated as a section 6 holding company and described
under paragraph (4) (or any permitted successor) is not prohibited from
continuing to engage in any impermissible activity in which it was engaged
continuously during the 6 months prior to the date of enactment, from owning
any shares or types of assets related to such activity, or continuing to own
such other shares or assets that it owned on the date of enactment.</text>
</subparagraph></paragraph><paragraph id="HA32EBFA1F3224624AADCB4E0FF0BEE31"><enum>(3)</enum><header>Registration</header>
<subparagraph id="H792B027CCDFA4EA281F529359F577592"><enum>(A)</enum><text>A section 6
holding company required to be established by a company described in paragraph
(1)(A) shall be established, and such company shall register with the Board as
a bank holding company, pursuant to the requirements in section 4(f).</text>
</subparagraph><subparagraph id="H516876F2C7E042D4B525B59F35FF80D5"><enum>(B)</enum><text>A section 6
holding company required to be established by a company described in paragraph
(1)(B) shall be established, and such company shall register with the Board as
a bank holding company, pursuant to the requirements in section 4(p).</text>
</subparagraph><subparagraph id="H0E7FCD3EC6CC46749ECF754AA2609DE1"><enum>(C)</enum><text>A section 6
holding company required to be established by a company described in paragraph
(1)(C) shall be—</text>
<clause id="H7F059A2D4DB44A69ACC072FF11DF52DB"><enum>(i)</enum><text>established, and
such company shall register with the Board, as a bank holding company within 90
days after such company or such company’s parent holding company has been
notified by the Board that such company is subject to stricter prudential
standards under subtitle B of the Financial Stability Improvement Act of 2009,
unless the Board grants an extension of such period for compliance which shall
not exceed 180 additional days;</text>
</clause><clause id="H0D26D530971248F79A9B0D82FA8FCA3A"><enum>(ii)</enum><text>treated as a
financial holding company under this Act; and</text>
</clause><clause id="H9B2FDD4FF0A842EEB32DD1D1F6BEE189"><enum>(iii)</enum><text>subject to the
authority of the Board to enforce compliance with the provisions of this
section under section 8 of the Federal Deposit Insurance Act in the same manner
and to the same extent as if such company were a bank holding company.</text>
</clause></subparagraph></paragraph><paragraph id="HDF84CBD1DE254EFA9BB770764A0012FA"><enum>(4)</enum><header>Rule of
construction</header><text>For purposes of this section, designation of an
already established intermediate holding company that will serve as the section
6 holding company shall satisfy the requirement to establish a section 6
holding company, provided that such existing intermediate holding company
complies with all other provisions applicable to a section 6 holding
company.</text>
</paragraph><paragraph id="H4700C208BDF844D18162292998EDB6B1"><enum>(5)</enum><header>Limitations on
authority of commercial parent</header><text display-inline="yes-display-inline">A company that is not a bank holding
company or treated as a bank holding company pursuant to section 8(a) of the
International Bank Act of 1978 that has been notified that it is a financial
holding company subject to stricter standards, pursuant to subtitle A of the
Financial Stability Improvement Act of 2009, shall—</text>
<subparagraph id="HF1A9799F1D0C4977A0E833059F279351"><enum>(A)</enum><text>not be deemed to
be, or treated as, a bank holding company, solely because of its ownership or
control of a section 6 holding company; and</text>
</subparagraph><subparagraph id="H718EDC8B12CA48828FB1E2D2105B8866"><enum>(B)</enum><text>not be subject to
this Act, except for such provisions as are explicitly made applicable in this
section.</text>
</subparagraph></paragraph><paragraph id="H3EB36983D8E146A6B25C541AD0E64748"><enum>(6)</enum><header>Board
authority</header>
<subparagraph id="H8F049B627F1E42C3B3E402F60082FCEC"><enum>(A)</enum><header>Rules and
exemptions</header><text display-inline="yes-display-inline">In addition to any
other authority of the Board, the Board shall prescribe rules and regulations
or issue orders providing for the establishment and registration of section 6
holding companies and shall provide exemptions from the requirements of this
Act (including an order in response to a request from an affected company),
including, but not limited to, exemptions—</text>
<clause id="HFEB341CFC7A74F829CA6BBA7F19554E4"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to the requirement to conduct
such activities which are financial in nature, as determined under section
4(k), other than financial activities conducted for such company or any
affiliate, including any financial activity engaged in for both the company or
an affiliate and a nonaffiliate as permitted under section 4(f)(2)(D) or
section 6(a)(2)(B), through such section 6 holding company, if the Board makes
a finding that such exemption—</text>
<subclause id="HA7BB4CF55699451BBDC4E3D7F30D6952"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="H2DACDB4B4CA5453DBBEFF8F487157110"><enum>(aa)</enum><text>would facilitate the
extension of credit to individuals, households, and businesses; or</text>
</item><item id="H524C7B67DA8A4BE1BB28DDDD5733E7D4" indent="up1"><enum>(bb)</enum><text>would allow for greater efficiency,
improved customer service, or other public benefits in the conduct of financial
activities by affected companies;</text>
</item></subclause><subclause id="H40CD139E0E354AECAEB1BC6C60E2C9C6"><enum>(II)</enum><text>would not
threaten the safety and soundness of the section 6 holding company, or of any
insured depository institution or other subsidiary of the section 6 holding
company;</text>
</subclause><subclause id="H231CD0133E2F48C9A8C33CBF7C93D2E6"><enum>(III)</enum><text>would not
increase systemic risk or threaten the stability of the overall financial
system;</text>
</subclause><subclause id="HB0A403142DFB4DDAB60922151CA1C173"><enum>(IV)</enum><text display-inline="yes-display-inline">would not, as applied to the activities
that are the subject of the rule, order or request, result in substantially
lessening competition, or to tend to create a monopoly, or which in any other
manner would be in restraint of trade, unless the Board finds that the
anticompetitive effects are outweighed in the public interest by the probable
effect of the exemption in meeting the convenience and needs of the community
to be served; and</text>
</subclause><subclause id="HA28019D54B054FD8ACC4B5404C4518E0"><enum>(V)</enum><text display-inline="yes-display-inline">would meet the financial and managerial
standards for financial holding companies described in subparagraphs (A) and
(B) of section 4(j)(4); and</text>
</subclause></clause><clause id="HFE79163A3B654E5582D0FEE41DE7BA7C"><enum>(ii)</enum><text display-inline="yes-display-inline">from the affiliate transaction requirements
of subsection (b), including but not limited to exemptions that would
facilitate extensions of credit to unaffiliated persons for the personal,
household, or business purposes of such unaffiliated persons, unless the Board
makes a finding that such exemption—</text>
<subclause id="H7EE88784D46A447B850E7C15CFD97D98"><enum>(I)</enum><text display-inline="yes-display-inline">is not consistent with the purposes of
section 23A and section 23B of the Federal Reserve Act;</text>
</subclause><subclause id="H0C851021722C490C9284B5D457A2F25F"><enum>(II)</enum><text display-inline="yes-display-inline">would threaten the safety and soundness of
the section 6 holding company, or any insured depository institution or other
subsidiary of the section 6 holding company;</text>
</subclause><subclause id="H722FC433BAB44B0CB1511B1A51362700"><enum>(III)</enum><text display-inline="yes-display-inline">would increase systemic risk or threaten
the stability of the overall financial system;</text>
</subclause><subclause id="HBEA2D51332FC450BBD8912523903856C"><enum>(IV)</enum><text display-inline="yes-display-inline">would not, as applied to the activities
that are the subject of the rule, order or request result in substantially
lessening competition, or to tend to create a monopoly, or which in any other
manner would be in restraint of trade, unless the Board finds that the
anticompetitive effects are outweighed in the public interest by the probable
effect of the exemption in meeting the convenience and needs of the community
to be served; or</text>
</subclause><subclause id="HB41CA7D21B2C4D24A82151FAEFBE7BFE"><enum>(V)</enum><text display-inline="yes-display-inline">would permit an unfair, deceptive, abusive,
or unsafe-and-unsound act or practice.</text>
</subclause></clause></subparagraph><subparagraph id="HC6CA43B1A12049B1A6B03EF0F261DCE5"><enum>(B)</enum><header>Parent company
reports</header><text>The Board may, from time to time, require reports under
oath from a company that controls a section 6 holding company, and appropriate
officers or directors of such company, solely for purposes of ensuring
compliance with the provisions of this section (including assessing the
company’s ability to serve as a source of financial strength pursuant to
subsection (g)) and enforcing such compliance.</text>
</subparagraph><subparagraph id="HEC15F7C522574107A03AAA928C242E80"><enum>(C)</enum><header>Limited parent
company enforcement</header>
<clause id="H37399C6134734BC3B60B3E3521205141"><enum>(i)</enum><header>In
general</header><text>In addition to any other power of the Board, the Board
may enforce compliance with the provisions of this subsection which are
applicable to any company described in paragraph (1), and any bank controlled
by such company, under section 8 of the Federal Deposit Insurance Act and such
company or bank shall be subject to such section (for such purposes) in the
same manner and to the same extent as if such company were a bank holding
company.</text>
</clause><clause id="H65007116AC184DE098257AFEBB16D479"><enum>(ii)</enum><header>Application of
other act</header><text>Any violation of this subsection by any company that
controls a section 6 holding company or any bank controlled by such a company,
may also be treated as a violation of the Federal Deposit Insurance Act for
purposes of clause (i).</text>
</clause><clause id="H4CC6AF15A8164FC999E8D1B028CD56B4"><enum>(iii)</enum><header>No effect on
other authority</header><text>No provision of this subparagraph shall be
construed as limiting any authority of the Board or any other Federal agency
under any other provision of law.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H4F4858F3C9FA4B78BDD804152F84D4D6"><enum>(b)</enum><header>Restrictions on
affiliate transactions</header>
<paragraph id="HF3B22D7A37A1480BB42876585A89C318"><enum>(1)</enum><header>Section 23A and
23B applicability</header>
<subparagraph id="H89C115D5A8A747AD964747911ED5AEF4"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Transactions between
a section 6 holding company (or any nonbank subsidiary thereof) and any
affiliate not controlled by the section 6 holding company shall be subject to
the restrictions and limitations contained in section 23A and section 23B of
the Federal Reserve Act as if the section 6 holding company were a member bank,
provided, that a transaction that otherwise would be a covered transaction
shall not be a covered transaction if the transaction is in connection with the
bona fide acquisition or lease by an unaffiliated person of assets, goods or
services but shall be subject to review under section 23A(f)(1) of such
Act.</text>
</subparagraph><subparagraph id="H6D3587F404FF4A719B40DF798A69F1B6"><enum>(B)</enum><header>Covered
transactions</header><text display-inline="yes-display-inline">A depository
institution controlled by a section 6 holding company may not engage in a
covered transaction (as defined in section 23A(b)(7) of the Federal Reserve
Act) with any affiliate that is not the section 6 holding company or a
subsidiary of the section 6 holding company; provided that, for purposes of the
prohibition, a transaction that otherwise would be a covered transaction shall
not be a covered transaction if the transaction is in connection with the bona
fide acquisition or lease by an unaffiliated person of assets, goods or
services, but shall be subject to review under section 23A(f)(1) of the Federal
Reserve Act.</text>
</subparagraph></paragraph><paragraph id="H5DC2E286391E4670AC64D2E57E9C1D19"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this subsection shall be construed
as exempting any subsidiary insured depository institution of a section 6
holding company from compliance with section 23A or 23B of the Federal Reserve
Act with respect to each affiliate of such institution (as defined in section
23A or 23B of the Federal Reserve Act), including any affiliate that is the
section 6 holding company or subsidiary of the section 6 holding
company.</text>
</paragraph></subsection><subsection id="HD61EDE5419FC48BB91DB70B721798F3A"><enum>(c)</enum><header>Tying
provisions</header><text>A company that directly or indirectly controls a
section 6 holding company shall be—</text>
<paragraph id="H05998FFF5CCA4F17BE1F4A3CA00B220B"><enum>(1)</enum><text>treated as a bank
holding company for purposes of section 106 of the Bank Holding Company Act
Amendments of 1970 and section 22(h) of the Federal Reserve Act and any
regulation prescribed under any such section; and</text>
</paragraph><paragraph id="H70E785B4C7C94E8DAFDEA1F790464344"><enum>(2)</enum><text>subject to the
restrictions of section 106 of the Bank Holding Company Act Amendments of 1970,
in connection with any transaction involving the products or services of such
company or affiliate and those of a bank affiliate, as if such company or
affiliate were a bank and such bank were a subsidiary of a bank holding
company.</text>
</paragraph></subsection><subsection id="HE5E38C3649DE499A9259BCBBF33B865E"><enum>(d)</enum><header>Financial
holding company requirements</header><text>A section 6 holding company shall be
subject to—</text>
<paragraph id="H3780E2DB00024E8995B73FBEE4CA8897"><enum>(1)</enum><text>the conditions for
engaging in expanded financial activities in section 4(l); and</text>
</paragraph><paragraph id="HFBDB8D7B4BFA45FD8BEC7F1D791FDEF7"><enum>(2)</enum><text>the provisions
applicable to financial holding companies that fail to meet certain
requirements in section 4(m).</text>
</paragraph></subsection><subsection id="H815269F0DA4B455382D6E4CA4DE2E0FF"><enum>(e)</enum><header>Independence of
section 6 holding company</header>
<paragraph id="H6E686D51185349F48EF18DF3886AA18E"><enum>(1)</enum><text>No less than 25
percent of the members of the board of directors of a section 6 holding
company, and each subsidiary of a section 6 holding company, shall be
independent of the parent company of the section 6 holding company and any
subsidiary of such parent company. For purposes of this subsection, a director
shall be independent of the parent company if such person is not currently
serving, and has not within the previous two-year period served, as a director,
officer, or employee of any affiliate of the section 6 holding company that is
not a subsidiary of the section 6 holding company.</text>
</paragraph><paragraph id="H9321B63AD62B4EB2910D5A15ADDE8591"><enum>(2)</enum><text>No executive
officer of a section 6 holding company or any subsidiary of a section 6 holding
company may serve as a director, officer, or employee of an affiliate of the
section 6 holding company that is not a subsidiary of the section 6 holding
company.</text>
</paragraph><paragraph id="HB2EF9FB0EAF14098AAC7689DA96E99B7"><enum>(3)</enum><text display-inline="yes-display-inline">The Board shall issue regulations that
require effective legal and operational separation of the functions of a
section 6 holding company from its affiliates that are not subsidiaries of such
section 6 holding company, provided, however that such rules shall not require
operational separation of internal functions including, but not limited to,
human resources management, employee benefit plans, and information
technology.</text>
</paragraph></subsection><subsection id="HF3464FE72EF44C4A8FFC23627263F934"><enum>(f)</enum><header>Source of
strength</header><text>A company that directly or indirectly controls a section
6 holding company shall serve as a source of financial strength to its
subsidiary section 6 holding
company.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H77D341FCBDF8459D90D66A8DB3BE4B98"><enum>(d)</enum><header>Conforming
changes</header><text>Section 4(h) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(h)), is amended—</text>
<paragraph id="H7C89DF3DF810402CA572D720E5E63F81"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>subparagraph (D), (F), (G), or (H)</quote> and inserting
<quote>subparagraph (C) or (D)</quote>; and</text>
</paragraph><paragraph id="H39DC89DF2449478488A2476DF1E0AEBA"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>subparagraph (D), (F), (G), or (H)</quote> and inserting
<quote>subparagraph (C) or (D) </quote>.</text>
</paragraph></subsection></section><section id="H8CD20046CC3344698B224C9F9C3E9961"><enum>1302.</enum><header>Registration
of certain companies as bank holding companies</header><text display-inline="no-display-inline">Section 5 of the Bank Holding Company Act of
1956 (12 U.S.C. 1844) is amended by inserting at the end the following new
subsection:</text>
<quoted-block id="H21C92108B10C417CA5F8D26B50D933F1" style="OLC">
<subsection id="H2D62FB36C1D74394BB26EC8CA012CE33"><enum>(h)</enum><header>Conversion to
bank holding company by operation of law</header>
<paragraph id="H07E513095E4444769BB8214435C46E65"><enum>(1)</enum><header>Conversion by
operation of law</header><text>A company that, on the day before the date of
enactment of the Financial Stability Improvement Act of 2009, was not a bank
holding company but which, by reason of sections 4(p) and 6 becomes a bank
holding company by operation of law, shall register as a bank holding company
with the Board in accordance with section 5(a) within 90 days of the date of
enactment of that Act.</text>
</paragraph><paragraph id="H00FB38F3DE8848BCA844F52CAAAEC548"><enum>(2)</enum><header>Compliance with
bank holding company act</header><text>With respect to any company described in
paragraph (1), the Board may grant temporary exemptions or provide other
appropriate temporary relief to permit such company to implement measures
necessary to comply with the requirements under the Bank Holding Company
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8A79CCA04ACB472387F38A8502E4BB1B"><enum>1303.</enum><header>Reports and
examinations of bank holding companies; regulation of functionally regulated
subsidiaries</header>
<subsection id="H18BDBE9B65FD4F6190CB310CED67637D"><enum>(a)</enum><header>Reports of bank
holding companies</header><text>Sections 5(c)(1)(A) and (B) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(c)(1)(A) and (B)) are amended to read as
follows:</text>
<quoted-block id="HDB415B9FF20C4735B865067E46796544" style="OLC">
<subparagraph id="H8C1E29689A9B4B5081B556E9EBD40EA3"><enum>(A)</enum><header>In
general</header><text>The Board, from time to time, may require a bank holding
company and any subsidiary of such company to submit reports under oath that
the Board determines are necessary or appropriate for the Board to carry out
the purposes of this chapter, prevent evasions thereof, and monitor compliance
by the company or subsidiary with the applicable provisions of law.</text>
</subparagraph><subparagraph id="H565B1861605144CB8C25F5FC733E8221"><enum>(B)</enum><header>Use of existing
reports</header>
<clause id="HE58E1A0CDE7F4C98A342BD97F466D742"><enum>(i)</enum><header>In
general</header><text>The Board shall, to the fullest extent possible,
use:</text>
<subclause id="H2B08121A57144A5CACC1BD3F7E7EFF10"><enum>(I)</enum><text>reports that a
bank holding company or any subsidiary of such company has been required to
provide to other Federal or State regulatory agencies;</text>
</subclause><subclause id="HD950DD00843748D4932033BADEFAAAC0"><enum>(II)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subclause><subclause id="H25D9985145DD426D87432BD61F46FF00"><enum>(III)</enum><text>externally
audited financial statements.</text>
</subclause></clause><clause id="H2EABD6EC22134C50968BA5E172B3A45F"><enum>(ii)</enum><header>Availability</header><text>A
bank holding company or a subsidiary of such company shall promptly provide to
the Board, at the request of the Board, a report referred to in clause
(i)(I).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE71372FA14F3485BBA16D192DC8737E5"><enum>(b)</enum><header>Functionally
regulated subsidiary</header><text>Section 5(c)(1) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1844(c)(1)) is amended by inserting at the end the
following new subparagraph:</text>
<quoted-block id="H38F982F593E7486E8B3F781A09167339" style="OLC">
<subparagraph id="H7EB4356C920046A6A43294B0773E16D7"><enum>(C)</enum><header>Definition</header><text>For
purposes of this subsection and section 6, the term <term>functionally
regulated subsidiary</term> means any subsidiary (other than a depository
institution) of a bank holding company that is—</text>
<clause id="H349D3173C32145639158B8F725B1617F"><enum>(i)</enum><text>a
broker or dealer registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934, for which the Securities and Exchange
Commission is the Federal regulatory agency;</text>
</clause><clause id="HC88B5F42A0E74896BCE9078A903A0F2B"><enum>(ii)</enum><text>an investment
company registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, for which the Securities and Exchange
Commission is the Federal regulatory agency;</text>
</clause><clause id="H8A9A03591DB6442A97A68EC16BA93C54"><enum>(iii)</enum><text>an investment
adviser registered with the Securities and Exchange Commission under the
Investment Advisers Act of 1940, for which the Securities and Exchange
Commission is the Federal regulatory agency, with respect to the investment
advisory activities of such investment adviser and activities incidental to
such investment advisory activities; and</text>
</clause><clause id="HBBC1F1905049455BB9561D1BE4BBD14A"><enum>(iv)</enum><text>a
futures commission merchant, commodity trading advisor, and commodity pool
operator registered with the Commodity Futures Trading Commission under the
Commodity Exchange Act, for which the Commodity Futures Trading Commission is
the Federal regulatory agency, with respect to the commodities activities of
such entity and activities incidental to such commodities
activities.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9C90DE7D882C4EECBDED40EFA66BD667"><enum>(c)</enum><header>Examinations of
bank holding companies</header><text>Sections 5(c)(2)(A) and (B) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1844(c)(2)(A) and (B)) are amended to
read as follows:</text>
<quoted-block id="H143095C76E724DF5AABFFDCEB4DE7E4C" style="OLC">
<subparagraph id="H2D18F03E7AFF46F69E11DCAFBF9CF7BF"><enum>(A)</enum><header>In
general</header><text>The Board may make examinations of a bank holding company
and any subsidiary of such a company to carry out the purposes of this chapter,
prevent evasions thereof, and monitor compliance by the company or subsidiary
with applicable provisions of law.</text>
</subparagraph><subparagraph id="HECA49E8EA270400D89279E023ED5372E"><enum>(B)</enum><header>Functionally
regulated and depository institution subsidiaries</header><text>The Board
shall, to the fullest extent possible, use reports of examination of
functionally regulated subsidiaries and subsidiary depository institutions made
by other Federal or State regulatory
authorities.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H28F84C302F0347089F34E983D52E328D"><enum>(d)</enum><header>Regulation of
financial holding companies</header><text>Section 5(c)(2) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1844(c)) is amended by striking subparagraphs
(C), (D), and (E).</text>
</subsection><subsection id="H93070F85705744CDAE727606A805BD2D"><enum>(e)</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 by striking section 10A (12 U.S.C. 1848a).</text>
</subsection></section><section id="H1CE73B78C3C84FE69C3DDD488352DE62"><enum>1304.</enum><header>Requirements
for financial holding companies to remain well capitalized and well
managed</header><text display-inline="no-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="HB4533C68351049E88A945D4C4A5DCC71"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote>;</text>
</paragraph><paragraph id="HA446DE6D846143C59020251298BFF4B3"><enum>(2)</enum><text>by redesignating
subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="H4BC895092B884E2896554875666D444F"><enum>(3)</enum><text>by inserting after
subparagraph (B) the following new subparagraph:</text>
<quoted-block id="HA2DDEE09AF0B4512991D5790E183E839" style="OLC">
<subparagraph id="HE9EBDD829F384020AB55DCFF77A8B590"><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="H55937029EDC04193A7D4005E4C9E09C2"><enum>(4)</enum><text>in subparagraph
(D) (as so redesignated) by amending clause (ii) to read as follows:</text>
<quoted-block id="HB9E93312BBBC4ABE8098A392B53E7EC5" style="OLC">
<clause id="H514E6707130D471BB5406F507CDBB9C2"><enum>(ii)</enum><text>a
certification that the company meets the requirements of subparagraphs (A)
through
(C).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HAE3B590FFA6940CFBFAC6BE069640E8F"><enum>1305.</enum><header>Standards for
interstate acquisitions</header>
<subsection id="H440F54435B144AF5846862FBDDA9A217"><enum>(a)</enum><header>Bank holding
company act of 1956 amendment</header><text>Section 3(d)(1)(A) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1842(d)(1)(A)) is amended—</text>
<paragraph id="HB9619CCA129444D4AD43FC007F522F41"><enum>(1)</enum><text>by striking
<quote>adequately capitalized</quote> and inserting <quote>well
capitalized</quote>; and</text>
</paragraph><paragraph id="H17D29EEAB8A846AF8948CEE111A5F671"><enum>(2)</enum><text>by striking
<quote>adequately managed</quote> and inserting <quote>well
managed</quote>.</text>
</paragraph></subsection><subsection id="H4C3A4C423C324A06AEB0A5663D4BB974"><enum>(b)</enum><header>Federal deposit
insurance act amendment</header><text>Section 44(b)(4)(B) of the Federal
Deposit Insurance Act (12 U.S.C. 1831u(b)(4)(B)) is amended to read as
follows:</text>
<quoted-block id="HA278E316B5E845C3B6373F47959A7BEF" style="OLC">
<subparagraph id="H9711139E876D4D5EBD098BFC12603FA9"><enum>(B)</enum><text>the responsible
agency determines that the resulting bank will be well capitalized and well
managed upon the consummation of the
transaction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H57967B44CC9E40E0B6BB67F17EDC32C7"><enum>1306.</enum><header>Enhancing
existing restrictions on bank transactions with affiliates</header>
<subsection id="HB9B95E8A232743EA9EDB8824669862F1"><enum>(a)</enum><text>Section 23A of the
Federal Reserve Act (12 U.S.C. 371c) is amended—</text>
<paragraph id="H1C7CC6755DAE4673A786DBCAFFFE55DB"><enum>(1)</enum><text>in subsection
(b)(1), by striking subparagraph (D) and inserting the following new
subparagraph:</text>
<quoted-block id="HC8E35C45490D4F5195A43778CE7D49E0" style="OLC">
<subparagraph id="H79A94A58CA2D478EB2FC5B429584B7B6"><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></after-quoted-block></quoted-block>
</paragraph><paragraph id="H8BE6E2F524334CC2B59F3D4ED03D4E0C"><enum>(2)</enum><text>in subsection
(b)(7)(A), by inserting <quote>(including a purchase of assets subject to an
agreement to repurchase)</quote> after <quote>affiliate</quote>;</text>
</paragraph><paragraph id="HCFB47515F2C84FD5AEF35B8D27FBEB34"><enum>(3)</enum><text>in subsection
(b)(7)(C), by striking <quote>, including assets subject to an agreement to
repurchase,</quote>;</text>
</paragraph><paragraph id="H92396105629D476F9648C100FB42A1CF"><enum>(4)</enum><text>in subsection
(b)(7)(D)—</text>
<subparagraph id="HF77B37D32D444C759061C4B0427904BB"><enum>(A)</enum><text>by inserting
<quote>or other debt obligations</quote> after <quote>acceptance of
securities</quote>, and</text>
</subparagraph><subparagraph id="H4B33A19D4FAF4A24BCAEDCBFF1BEFFFE"><enum>(B)</enum><text>by striking
<quote>or</quote> after the semicolon;</text>
</subparagraph></paragraph><paragraph id="H2FB60C41110E4FD4998BFE1FD5CA6473"><enum>(5)</enum><text>in subsection
(b)(7), by inserting at the end the following new subparagraphs:</text>
<quoted-block id="H92D0CAA439274C708BDA594A13F6D2D8" style="OLC">
<subparagraph id="HDAC3163A9A3145F4A006335B0A719CB9"><enum>(F)</enum><text>any securities
borrowing and lending transactions with an affiliate to the extent that the
transactions create credit exposure of the member bank to the affiliate;
or</text>
</subparagraph><subparagraph id="H35410AD1F0574917B666AB466EDD0A6E"><enum>(G)</enum><text>current and
potential future credit exposure to the affiliate on derivative transactions
with the
affiliate;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4F5730622DD44FF3A588322B1A686894"><enum>(6)</enum><text>in subsection
(c)(1), by striking <quote>at the time of the transaction,</quote> and
inserting <quote>at all times</quote>;</text>
</paragraph><paragraph id="HDF42F68BBD6149C8AF314E99E244A587"><enum>(7)</enum><text>in subsection
(c)—</text>
<subparagraph id="H020EBAF3F3194482B8460E0DE7B387CF"><enum>(A)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="HC0B48CF5D77A4EF0852CFCC458702040"><enum>(B)</enum><text>by redesignating
paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4),
respectively;</text>
</subparagraph></paragraph><paragraph id="HBA301E3A2E5A4E7E93DFC74C00D2DAD5"><enum>(8)</enum><text>in subsection
(c)(3) (as so redesignated by paragraph (7)), by inserting <quote>or other debt
obligations</quote> after <quote>securities</quote>;</text>
</paragraph><paragraph id="H9CF1F3D59E04423C87A57E4CBDAD8B14"><enum>(9)</enum><text>in subsection
(f)(2), by inserting at the end the following: <quote>The Board may not, by
regulation or order, grant an exemption under this section unless the Board
obtains the concurrence of the Chairman of the Federal Deposit Insurance
Corporation.</quote>; and</text>
</paragraph><paragraph id="H0A3AD2A73A6F484D8E5791D515605604"><enum>(10)</enum><text>in subsection
(f)—</text>
<subparagraph id="HD7D5F6D40891458C91AC9694A72322E9"><enum>(A)</enum><text>by redesignating
paragraph (3) as paragraph (4);</text>
</subparagraph><subparagraph id="HFD9BAE1EE8AF469AA67D7EA60450DECB"><enum>(B)</enum><text>and inserting
after paragraph (2) the following new paragraph:</text>
<quoted-block id="H1EE6A697B3BC43749D275BD3B6BD5CB2" style="OLC">
<paragraph id="H1C79D8CAB49642609F3D9D9E6B698A08"><enum>(3)</enum><header>Concurrence of
the comptroller of the currency</header><text>With respect to a transaction or
relationship involving a national bank or Federal savings association, the
Board may not grant an exemption under this section unless the Board obtains
the concurrence of the Comptroller of the Currency (in addition to obtaining
the concurrence of the Chairman of the Federal Deposit Insurance Corporation
under paragraph
(2)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H45FAC8917FFB48FB80DE55E95D776C4C"><enum>(b)</enum><header>Technical and
conforming amendment</header><text>Section 23B(e) of the Federal Reserve Act
(12 U.S.C. 371–1(e)), is amended by inserting at the end the following new
paragraph:</text>
<quoted-block id="HF7C7D230F79D45BBA4ADC0C257853766" style="OLC">
<paragraph id="H07802B68055143D28353CD7EDC8B97B2"><enum>(3)</enum><text>The Board may not
grant an exemption or exclusion under this section unless the Board obtains the
concurrence of the Chairman of the Federal Deposit Insurance
Corporation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H922A2EBE82F04A57B5A570AB2EA5714A"><enum>1307.</enum><header>Eliminating
exceptions for transactions with financial subsidiaries</header><text display-inline="no-display-inline">Section 23A(e) of the Federal Reserve Act
(12 U.S.C. 371c(e)) is amended—</text>
<paragraph id="H6C192916C84A41AB98429BC07A3BC7AB"><enum>(1)</enum><text>by striking
paragraph (3); and</text>
</paragraph><paragraph id="HA76C1D4EAC124CD191A67D9056BE5FFC"><enum>(2)</enum><text>by redesignating
paragraph (4) as paragraph (3).</text>
</paragraph></section><section id="H182D486D58F644BEB34E3C9838B5EB6B"><enum>1308.</enum><header>Lending limits
applicable to credit exposure on derivative transactions, repurchase
agreements, reverse repurchase agreements, and securities lending and borrowing
transactions</header><text display-inline="no-display-inline">Section 5200 of
the Revised Statutes of the United States (12 U.S.C. 84) is amended—</text>
<paragraph id="H8487170D2A46410DA6AC2FC5E64A6557"><enum>(1)</enum><text>in subsection
(b)(1), by striking <quote>shall include all direct or indirect</quote> and all
that follows through <quote>commitment;</quote> and
inserting:</text>
<quoted-block display-inline="yes-display-inline" id="H08EF3ED5107A492893CEA136753A0EA6" style="OLC">
<text>shall
include—</text><subparagraph id="H32FA6E790A9F4D0CA317114B0CBDA4C7"><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="H8ACE7B4761674A898B54BB571CAAAD2B"><enum>(B)</enum><text>to the extent
specified by the Comptroller of the Currency, such term shall also include 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="H41D71A764E2942BDBC8C821896FFEBA1"><enum>(C)</enum><text>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="HF72F7DF2BCF348BAA92F5B03B8446F49"><enum>(2)</enum><text>in subsection
(b)(2) by striking the period at the end and inserting <quote>;
and</quote>;</text>
</paragraph><paragraph id="HB06AEFFC91314EE8B31D33DC4D9C699B"><enum>(3)</enum><text>in subsection (b),
by inserting after paragraph (2) the following new paragraph:</text>
<quoted-block id="HE6D33A974EDF475D99D462005B98032E" style="OLC">
<paragraph id="H2470526777364E7DA1C038C7C2E1C560"><enum>(3)</enum><text>the term
<term>derivative transaction</term> means 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>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6C841D867649413B9873EE3A6453BCBD"><enum>(4)</enum><text>in subsection (d),
by inserting after paragraph (2) the following new paragraph:</text>
<quoted-block id="HD35B2FE4867049D7B43E5E419D46E9A3" style="OLC">
<paragraph id="HADF63E94CA004B1F8E2361C06785BC9C"><enum>(3)</enum><text>The Comptroller of
the Currency shall prescribe rules to administer and carry out the purposes of
this section with respect to credit exposures arising from any derivative
transaction, repurchase agreement, reverse repurchase agreement, securities
lending transaction, or securities borrowing transaction. Rules required to be
prescribed under this paragraph (3) shall take effect, in final form, not later
than 180 days after the date of enactment of the Financial Stability
Improvement Act of
2009.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H4BBC793CFBCF4450BD820BC10BA6D489"><enum>1309.</enum><header>Restriction on
conversions of troubled banks and thrifts</header>
<subsection id="H987C35D483314CF1821ACB8EA80A3167"><enum>(a)</enum><header>Conversion of a
national banking association to a state bank</header><text>The National Bank
Consolidation and Merger Act (12 U.S.C. 215 et seq.) is amended by
redesignating section 7 as section 8 and by inserting after section 6 the
following:</text>
<quoted-block id="H514FF9FD0D904D90A19F3E9D09FB18D6" style="OLC">
<section id="H6DA2B9FBCA7C4B4A9019FF90370CDFB9"><enum>7.</enum><header>Prohibition on
certain conversions</header><text display-inline="no-display-inline">A national
bank may not convert to a State bank during any period of time in which it is
subject to a cease and desist order, memorandum of understanding, or other
enforcement action entered into with or issued by the Comptroller of the
Currency.</text>
</section><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection id="H3FD6D626979F41158E1052797E8E9FBE"><enum>(b)</enum><header>Conversion of a
state bank to a national bank</header><text>Section 5154 of the Revised
Statutes (12 U.S.C. 35) is amended by adding at the end the following new
sentence: <quote>The Comptroller of the Currency shall not approve the
conversion of a State bank to a national bank during any period of time in
which the State bank is subject to a cease and desist order, memorandum of
understanding, or other enforcement action entered into or issued by a State
bank supervisor, the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System or a Federal Reserve
Bank.</quote>.</text>
</subsection><subsection id="H4191723F80FC4800A706CD7E391DCDC5"><enum>(c)</enum><header>Conversion
between a Federal savings association and a State savings
association</header><text display-inline="yes-display-inline">Section 5(i) of
the Home Owners’ Loan Act (12 U.S.C. 1464(i)) is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H00F5FDA820CA485883D09EE0B9D1AC42" style="OLC">
<paragraph id="HC93413AB620F4C10B2A31CB820A2D653"><enum>(6)</enum><header>Prohibition on
certain conversions</header><text display-inline="yes-display-inline">A Federal
savings association may not convert to a State savings association, and a State
savings association may not convert to a Federal savings association, during
any period of time in which such savings association is subject to a cease and
desist order, memorandum of understanding, or other enforcement action entered
into with or issued by the Director of the Office of Thrift Supervision or a
State savings association
supervisor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HEF6BB99CFE6E470F8475AE6EE6659D17"><enum>1310.</enum><header>Lending limits
to insiders</header><text display-inline="no-display-inline">Section
22(h)(9)(D)(ii) of the Federal Reserve Act (12 U.S.C. 375b(h)(9)(D)(ii)) is
amended by inserting <quote>, except that a member bank shall be deemed to have
extended credit to a person if the member bank has credit exposure to the
person arising from a derivative transaction, repurchase agreement, reverse
repurchase agreement, securities lending transaction, or securities borrowing
transaction between the member bank and the person</quote> before the period at
the end.</text>
</section><section id="HE8B1DCE600714F99A099B5A934060DDB"><enum>1311.</enum><header>Limitations on
purchases of assets from insiders</header>
<subsection id="H20A19573EF8C4F55856FBC6134DEFAA3"><enum>(a)</enum><text>Section 18 of the
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by inserting after
subsection (y) (as added by section 1408) the following new subsection:</text>
<quoted-block id="HD2895FEF916D4224B65841F4E98F7152" style="OLC">
<subsection id="HD4B91E64C44D4753A6375E07F143D8D9"><enum>(z)</enum><header>General
prohibition</header><text>An insured depository institution shall not purchase
an asset from, or sell an asset to, one of its executive officers, directors,
or principal shareholders or any related interest of such person (as such terms
are defined in section 22(h) of Federal Reserve Act) unless the transaction is
on market terms and, if the transaction represents more than 10 percent of the
institution’s capital stock and surplus, the transaction has been approved in
advance by a majority of the institution’s board of directors (with interested
directors of the insured depository institution not participating in the
approval of the
transaction).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H86CFA31138BA4917B33F236092626ED8"><enum>(b)</enum><header>FDIC rulemaking
authority</header><text>The Federal Deposit Insurance Corporation may prescribe
rules to implement the requirements of subsection (a) and the amendments made
by subsection (a).</text>
</subsection><subsection id="H945C06D4C1EC4630A738353F22E6E43D"><enum>(c)</enum><header>Amendments to
the federal reserve act</header><text>Section 22 of the Federal Reserve Act (12
U.S.C. 375) is amended by striking subsection (d).</text>
</subsection></section><section id="H1C01F71528CC47ECB66CDDAB4ACA1B42"><enum>1312.</enum><header>Rules
regarding capital levels of bank holding companies</header><text display-inline="no-display-inline">Section
5(b) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(b)) is amended by
inserting <quote>, including regulations relating to the capital levels of bank
holding companies</quote> before the period at the end.</text>
</section><section id="H127A5C6074E84F098B9EA49E052941AC"><enum>1313.</enum><header>Enhancements
to factors to be considered in certain acquisitions</header>
<subsection id="H81E4874B6273479FA8BFC4C704038DEA"><enum>(a)</enum><header>Bank
acquisitions</header><text>Section 3(c) of the Bank Holding Company Act of 1956
(12 U.S.C. 1842(c)) is amended by inserting at the end the following new
paragraph:</text>
<quoted-block id="H04B7524618214E77BB6A56D04EC40387" style="OLC">
<paragraph id="HEE495EEF0F4A4678B4E8754CE8D4C244"><enum>(7)</enum><header>Financial
stability</header><text></text>
<subparagraph id="H01E1B3CCB3E94C3586A22EE16E69FA07"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In every case, the
Board shall take into consideration the extent to which the proposed
acquisition, merger, or consolidation may pose risk to the stability of the
United States financial system or the economy of the United States , including
the resulting scope, nature, size, scale, concentration, or interconnectedness
of activities that are financial in nature.</text>
</subparagraph><subparagraph commented="no" id="H61DCC065CCB246C793D2472ABD48A881"><enum>(B)</enum><header>Standards for
approval</header><text display-inline="yes-display-inline">The Board may in its
sole discretion disapprove any acquisition, merger, or consolidation of, or by,
a financial company subject to stricter prudential standards if the Board
determines that the resulting concentration of liabilities on a consolidated
basis is likely to pose a greater threat to financial stability during times of
severe economic
distress.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0E96A527F8BC4F93B737597D9D7B01EE"><enum>(b)</enum><header>Nonbank
acquisitions</header>
<paragraph id="H91AD8C01041A4E42BF7662B63B2F7B1D"><enum>(1)</enum><text>Section 4(j)(2)(A)
of the Bank Holding Company is amended by—</text>
<subparagraph id="H95F1F7E86639443C91F83FDE3A7558B8"><enum>(A)</enum><text>striking
<quote>or</quote> before <quote>unsound banking practices</quote>; and</text>
</subparagraph><subparagraph id="H4598D221876A4B96BD504E404F8C6CEE"><enum>(B)</enum><text>inserting before
the period at the end the following: <quote>, or risk to the stability of the
United States financial system or the economy of the United
States</quote>.</text>
</subparagraph></paragraph><paragraph id="H5479FA1DD12342BBB7353CF30F90A64C"><enum>(2)</enum><text>Section 4(k)(6) of
the Bank Holding Company Act of 1956 is amended by striking subparagraph (B)
and inserting the following new subparagraph:</text>
<quoted-block id="HB08FE45320FA4D74B14753F28A8D2591" style="OLC">
<subparagraph id="H017F2B1E88E140B4BF2C17A4819E1A1C"><enum>(B)</enum><text>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, except—</text>
<clause id="HDC86D86CB03E40B28FF6C0425379FE0E"><enum>(i)</enum><text>for a transaction
in which the total assets to be acquired by the financial holding company
exceed $25 billion; and</text>
</clause><clause id="HEDC296E6911A400295BC2847C528C588"><enum>(ii)</enum><text>as provided in
subsection (j) with regard to the acquisition of a savings
association.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDCB335B1180345A980C32FADBBCCC139"><enum>(c)</enum><header>Bank merger act
transactions</header><text>Section 8(c)(5) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(c)(5)) is amended by—</text>
<paragraph id="HAB0D01B3720B45D1955061F60A9374C5"><enum>(1)</enum><text>by striking
<quote>and</quote> before <quote>the convenience and needs of the community to
be served</quote>; and</text>
</paragraph><paragraph id="HE986AE7809AA4276887E9267467E8E19"><enum>(2)</enum><text>by inserting
before the period at the end the following: <quote>, and the risk to the
stability of the United States financial system and the economy of the United
States based on, among other things, the scope, nature, size, scale,
concentration, or interconnectedness of activities that are financial in
nature</quote>.</text>
</paragraph></subsection></section><section id="H40902EE0886644688BE3913B8D99DA84"><enum>1314.</enum><header>Elimination of
elective investment bank holding company framework</header><text display-inline="no-display-inline">Section
17 of the Securities Exchange Act of 1934 (15 U.S.C. 78q) is amended—</text>
<paragraph id="HFDA57ED6DDD343428A93895113FCEA58"><enum>(1)</enum><text>by striking
subsection (i); and</text>
</paragraph><paragraph id="HD67D88EB31D645DDB8605319666E000E"><enum>(2)</enum><text>by redesignating
subsections (j) and (k) as subsections (i) and (j), respectively.</text>
</paragraph></section><section id="H889078B76B294071B7FFE628FEE451BA"><enum>1315.</enum><header>Examination
fees for large bank holding companies</header><text display-inline="no-display-inline">The Bank Holding Company Act of 1956 is
amended by inserting after section 5 the following new section:</text>
<quoted-block id="H24AFF7B7263A47909A64C38AB6CA8AE4" style="OLC">
<section id="H2B663C5E0F6245889D6F76A11ABF54E8"><enum>5A.</enum><header>Examination
fees</header><text display-inline="no-display-inline">The Board of Governors of
the Federal Reserve System or the Federal Reserve Banks shall assess fees on
bank holding companies with total consolidated assets of $10 billion or more.
Such fees shall be sufficient to defray the cost of the examination of such
bank holding
companies.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="HA24D3E3F05514F59B5C03252172D5201"><enum>E</enum><header>Improvements to
the Federal Deposit Insurance Fund</header>
<section id="H63F323984515474980BF9A3E07086D19"><enum>1401.</enum><header>Accounting for
actual risk to the Deposit Insurance Fund</header>
<subsection id="HE8B513346AB242849655C1C58B255D0D"><enum>(a)</enum><text>Section 7(b)(1)(C)
of the Federal Deposit Insurance Act is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA311155EF8A647E1B6D2691605A10FE9" style="OLC">
<subparagraph id="HA250B80E758346EABED11B7ED727407B"><enum>(C)</enum><header><term>Risk-based
assessment system</term> defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<term>risk-based assessment system</term> means a system for calculating a
depository institution's assessment based on—</text>
<clause id="HF933178F5AC84B7FBCC1C5948B2226C2"><enum>(i)</enum><text display-inline="yes-display-inline">the probability that the Deposit Insurance
Fund will incur a loss with respect to the institution;</text>
</clause><clause id="H9C1EBA02B1874B9BA4CF1B0A5CCEB0A8"><enum>(ii)</enum><text display-inline="yes-display-inline">the likely amount of any such loss;</text>
</clause><clause id="H008079067013485591BA836DFC7EB13E"><enum>(iii)</enum><text display-inline="yes-display-inline">the risks to the Deposit Insurance Fund
attributable to such depository institution, including risks posed by its
affiliates to the extent the Corporation determines appropriate, taking into
account—</text>
<subclause id="H659A16BFEE7342CA82837C2221EAEDC5"><enum>(I)</enum><text>the amount,
different categories, and concentrations of assets of the insured depository
institution and its affiliates, including both on-balance sheet and off-balance
sheet assets;</text>
</subclause><subclause id="H8857E3145F0A4C169E586FE63701339E"><enum>(II)</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 insured depository institution and its
affiliates; and</text>
</subclause><subclause id="HC773E8759E374ED6AF4EB1319578F1E7"><enum>(III)</enum><text>any other
factors the Corporation determines are relevant to assessing the risks;
and</text>
</subclause></clause><clause id="H190D8194033540D3AEB29A867F654949"><enum>(iv)</enum><text>the revenue needs
of the Deposit Insurance
Fund.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7B0EB6B66CAE407BA4365AB164652C84"><enum>(b)</enum><text>Section 7(b)(2) of
the Federal Deposit Insurance Act is amended by striking subparagraph (D) and
by redesignating subparagraph (E) as subparagraph (D).</text>
</subsection></section><section id="H853D1658F0B14E2EA63871D6F967244A"><enum>1402.</enum><header>Creating a
risk-focused assessment base</header><text display-inline="no-display-inline">Section 7(b)(2) of such Act, as amended, is
further amended by amending subparagraph (C) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H898BA4141E6A47879A8216535968BCAF" style="USC">
<subparagraph id="H41E1CE9E490C4EFA8E4BAC39DB3DECA6"><enum>(C)</enum><header>Assessment</header><text>The
assessment of any insured depository institution imposed under this subsection
shall be an amount equal to the product of—</text>
<clause id="H9CEF7DA1449E402499C2B9C5E094AF91"><enum>(i)</enum><text>an
assessment rate established by the Corporation; and</text>
</clause><clause id="HAF2DD96DBDBB4073BF9C14399919B5EC"><enum>(ii)</enum><text>the amount of the
insured depository institution's average total assets during the assessment
period minus the amount of the insured depository institution's average
tangible equity during the assessment
period.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0E5D19CA3673406CA97D9F34B6C2640D"><enum>1403.</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="H4D16BD0347594036AE6DCF09406F74FF"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H4D054DAF9338416185621CDCF07CABD0"><enum>(A)</enum><text>by amending
subparagraph (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HB89AE44B57A941E783989AA4587CEB4E" style="OLC">
<subparagraph id="H2D13678C0DB44512A1CDFA930F101A0C"><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="H4C304A71E057476887873826EE881B04"><enum>(B)</enum><text>by amending
subparagraph (C) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H418B1000449449F892A76992EB48C47C" style="OLC">
<subparagraph id="H2876C9E20E144C16A65906086EE61448"><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="H0F896C2761104949BAE36D4234D98854"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraphs (D) through (G);
and</text>
</subparagraph></paragraph><paragraph id="H325A2E47E67849EE9522F794653F47E1"><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 id="HC75BE69A84C34205AD8D1F0AD534FA9C"><enum>1404.</enum><header>Enhanced
access to information for deposit insurance purposes</header>
<subsection id="H75F0E44D52084CB39FDCD43347B4482A"><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>, after agreement with the
Comptroller of the Currency, the Board of Governors of the Federal Reserve
ystem, and the Director of the Office of Thrift Supervision, as
appropriate,</quote>.</text>
</subsection><subsection id="H47EFD9A06AF34AC0AFDB5E54E38CE19B"><enum>(b)</enum><text>Section 7(b)(1)(E)
of the Federal Deposit Insurance Act is amended—</text>
<paragraph id="H103E81A0AFCA4EFE8114A61EDFBABC36"><enum>(1)</enum><text>in clause (i), by
striking <quote>such as</quote> and inserting <quote>including</quote>;
and</text>
</paragraph><paragraph id="H67FE31BB971A4C29BCCD47157E473DDC"><enum>(2)</enum><text>by striking clause
(iii).</text>
</paragraph></subsection></section><section id="H966470563B354B9F861D6454D3818118"><enum>1405.</enum><header>Transition
reserve ratio requirements to reflect new assessment base</header>
<subsection id="H7D9FE893FB44432392A1567AE72EFA80"><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="HB3EE2A90F8164763B08D4E3A3A33DE70" style="OLC">
<subparagraph id="HB673593D9E1E4982BB2FEC410D321EB6"><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 1.15
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="H785DFD7331734FAF80392F59AF328427"><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="H87FEDF576CF34260B425ACAFB5A2BA40"><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></section></subtitle><subtitle id="H19D8D5B8FA7A4062B49D0E7F69433070"><enum>F</enum><header>Improvements to
the asset-backed securitization process</header>
<section id="H4ECC66E5E26E4D5B8982F6E5B7EFD882"><enum>1501.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Credit Risk Retention Act of 2009</quote>.</text>
</section><section id="H8D880428F8B24FB8AB6C0D00F7CFE034"><enum>1502.</enum><header>Credit risk
retention</header>
<subsection id="HA46D3D7F158E46779A7E9A9608728ED8"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">The Securities Act of 1933 (15 U.S.C. 77a
et seq.) is amended by inserting after section 28 the following new
section:</text>
<quoted-block id="H6EBDB795EA07437F92A4460FAF5FD37A" style="OLC">
<section id="HA04F8E10EE5C49828231F53B63A8E4BA"><enum>29.</enum><header>Credit risk
retention</header>
<subsection id="H2388BE713DF44FEC9A4ECE5973380095"><enum>(a)</enum><header>In
general</header>
<paragraph id="H153316EE9C354DA181C7A2D7CC325046"><enum>(1)</enum><header>Interest in
loans made by creditors</header><text>Within 180 days of the date of the
enactment of this section, the appropriate agencies shall prescribe regulations
to require any creditor that makes a loan to retain an economic interest in a
material portion of the credit risk of any such loan that the creditor
transfers, sells, or conveys to a third party, including for the purpose of
including such loan in a pool of loans backing an issuance of asset-backed
securities.</text>
</paragraph><paragraph id="HF17664669C814C94A511FE566419772F"><enum>(2)</enum><header>Interest in
assets backing asset-backed securities</header><text>The appropriate agencies
shall prescribe regulations to require any securitizer of asset-backed
securities that are backed by assets not described in paragraph (1) to retain
an economic interest in a material portion of any such asset used to back an
issuance of securities.</text>
</paragraph></subsection><subsection id="HA68F6F2ED6DE470EAED62B9229D8D2FE"><enum>(b)</enum><header>Alternative risk
retention for credit securitizers</header><text>The appropriate agencies may
apply the risk retention requirements of this section to securitizers of loans
or particular types of loans in addition to or in substitution for any or all
of the requirements that apply to creditors that make such loans or types of
loans, if the agencies determine that applying the requirements to such
securitizers would—</text>
<paragraph id="H2354A1A5332341F4ADF3A21B129F7784"><enum>(1)</enum><text>be consistent with
helping to ensure high quality underwriting standards for creditors, taking
into account other applicable laws, regulations, and standards; and</text>
</paragraph><paragraph id="HDEFE414CFFA24C3EA2CDD9E5445BF825"><enum>(2)</enum><text>facilitate
appropriate risk management practices by such creditors, improve access of
consumers to credit on reasonable terms, or otherwise serve the public
interest.</text>
</paragraph></subsection><subsection id="H34A45676076E4986ABE3CCDDB8DB9044"><enum>(c)</enum><header>Standards for
regulation</header><text>Regulations prescribed under subsections (a) and (b)
shall—</text>
<paragraph id="H579E80A1E12B4DCBAA752B7F6D787CB9"><enum>(1)</enum><text>prohibit a
creditor or securitizer from directly or indirectly hedging or otherwise
transferring the credit risk such creditor or securitizer is required to retain
under the regulations;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HF89C39C86EBA412CADFB16E4FBF32263"><enum>(2)</enum><text display-inline="yes-display-inline">require a creditor or securitizer to retain
5 percent of the credit risk on any loan that is transferred, sold, or conveyed
by such creditor or securitized by such securitizer except—</text>
<subparagraph id="H21D18CA18FC34E9581456ADCE17313F2"><enum>(A)</enum><text display-inline="yes-display-inline">an appropriate agency may specify that the
percentage of risk may be less than 5 percent of the credit risk, or exempt
such creditor or securitizer from the risk retention requirement, if—</text>
<clause id="H2932DA7B67D94A5B9AA627D2C57A62A4"><enum>(i)</enum><text display-inline="yes-display-inline">the credit underwriting by the creditor or
the due diligence by the securitizer meets such standards as an appropriate
agency prescribes; and</text>
</clause><clause id="HC8D8D8CD7B1847E590C6951A71F24CD9"><enum>(ii)</enum><text display-inline="yes-display-inline">the loan that is transferred, sold, or
conveyed by such creditor or securitized by such securitizer meets terms,
conditions, and characteristics that are determined by an appropriate agency to
reflect loans with reduced credit risk, such as loans that meet certain
interest rate thresholds, loans that are fully amortizing, and loans that are
included in a securitization in which a third-party purchaser specifically
negotiates for the purchase of the first-loss position and provides due
diligence on all individual loans in the pool prior to the issuance of the
asset-backed securities, and retains a first-loss position; and</text>
</clause></subparagraph><subparagraph id="H8C77519529B64A44AE18A6B8C29CE4C1"><enum>(B)</enum><text display-inline="yes-display-inline">an appropriate agency may specify that the
percentage of risk may be more than 5 percent of the credit risk if the
underwriting by the creditor or due diligence by the securitizer is
insufficient;</text>
</subparagraph></paragraph><paragraph id="H031B2B09888F4A0185A2D70C7C1F455C"><enum>(3)</enum><text>specify that the
credit risk retained must be no less at risk for loss than the average of the
credit risk not so retained; and</text>
</paragraph><paragraph id="H99674546E5BD45E688C3521F29BBA1BC"><enum>(4)</enum><text>set the minimum
duration of the required risk retention.</text>
</paragraph></subsection><subsection id="HCC8C23C570E645568491BB7C0523AF80"><enum>(d)</enum><header>Exemptions and
adjustments</header>
<paragraph id="HD142A9699F4E45C4AC1877BF1DC307A0"><enum>(1)</enum><header>In
general</header><text>The appropriate agencies shall have authority to provide
exemptions or adjustments to the requirements of this section, including
exemptions or adjustments relating to the percentage of risk retention required
to be held and the hedging prohibition.</text>
</paragraph><paragraph id="H206A2C3072FF4880B665E113ED5D3B8D"><enum>(2)</enum><header>Applicable
standards</header><text>Any exemptions or adjustments provided under paragraph
(1) shall—</text>
<subparagraph id="H01452FDF9DC24FEC9D1412DDC6A0E1E9"><enum>(A)</enum><text>be consistent with
the purpose of ensuring high quality underwriting standards for creditors,
taking into account other applicable laws, regulations, or standards;
and</text>
</subparagraph><subparagraph id="H60964E7351294132B017C8EC34E0EC84"><enum>(B)</enum><text>facilitate
appropriate risk management practices by such creditors, improve access for
consumers to credit on reasonable terms, or otherwise serve the public
interest.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HBA696C337B3345F3885464676D86C9F0"><enum>(e)</enum><header>Appropriate
agency defined</header><text display-inline="yes-display-inline">For purposes
of this section, the term <quote>appropriate agency</quote> means any of the
following agencies with regard to the respective loans and asset-backed
securities:</text>
<paragraph id="HBF2F349574394E0E81D77A7F016945A9"><enum>(1)</enum><header>Banking
agencies</header><text display-inline="yes-display-inline">The Federal banking
agencies, the National Credit Union Administration Board, and the Commission,
with respect to any loan or asset-backed security for which there is no
appropriate agency under paragraph (2).</text>
</paragraph><paragraph id="H9E73AE6A5DA44686B32DF169507DD881"><enum>(2)</enum><header>Other
agencies</header>
<subparagraph id="H34E4BBCD30C74007ADD4ABF1C87E94EC"><enum>(A)</enum><text display-inline="yes-display-inline">With regard to any mortgage insured under
title II of the National Housing Act, the Secretary of Housing and Urban
Development.</text>
</subparagraph><subparagraph id="H4EBFC49AF5F045CE85DD8D5AA581A00F"><enum>(B)</enum><text display-inline="yes-display-inline">With regard to any loan meeting the
conforming loan standards of the Federal National Mortgage Corporation or the
Federal Home Loan Mortgage Corporation or any asset-backed security issued by
either such corporation, the Federal Housing Finance Agency.</text>
</subparagraph><subparagraph id="HC4160C725EAD468D942200C92AB88C74"><enum>(C)</enum><text display-inline="yes-display-inline">With regard to any loan insured by the
Rural Housing Service, the Rural Housing Service.</text>
</subparagraph></paragraph></subsection><subsection id="HBA0F60182E444E1AA2ADEE13BD64C9C2"><enum>(f)</enum><header>Joint
appropriate agency regulations</header><text display-inline="yes-display-inline">All regulations prescribed by the agencies
identified in subsection (e)(1) shall be prescribed jointly by such
agencies.</text>
</subsection><subsection id="HC0D34E8BC46A4CC29D65FA6BF37C5277"><enum>(g)</enum><header>Enforcement</header>
<paragraph id="H2CB4AF6C6CC7426BBBEE30F7DF76F47F"><enum>(1)</enum><text>Compliance with
the requirements imposed under this section shall be enforced under—</text>
<subparagraph id="H54BF884EA02D461896B47B335E34A93B"><enum>(A)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), in the case of—</text>
<clause id="HD3CE6D05ABEB4AC58D2077E8A8E1AB4E"><enum>(i)</enum><text>national banks,
and Federal branches and Federal agencies of foreign banks, by the Office of
the Comptroller of the Currency;</text>
</clause><clause id="H84CD92628E9E49F285935B8622F30565"><enum>(ii)</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, bank holding companies, and subsidiaries of
bank holding companies (other than insured depository institutions), by the
Board; and</text>
</clause><clause id="HD95B8DA2E5E14ED59EC8567023FD99D5"><enum>(iii)</enum><text>banks insured by
the Federal Deposit Insurance Corporation (other than members of the Federal
Reserve System) and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation;</text>
</clause></subparagraph><subparagraph id="H287B16255D1A47EB90B43FD20F53CC06"><enum>(B)</enum><text>section 8 of the
Federal Deposit Insurance Act (12 U.S.C. 1818), by the Director of the Office
of Thrift Supervision, in the case of a savings association the deposits of
which are insured by the Federal Deposit Insurance Corporation and a savings
and loan holding company and to any subsidiary (other than a bank or subsidiary
of that bank); and</text>
</subparagraph><subparagraph id="HE6E04282E60B461E9918557DC8155069"><enum>(C)</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 Federal credit union.</text>
</subparagraph></paragraph><paragraph id="H8D56222E40AF4C41B604D9CDD4D5E4A7"><enum>(2)</enum><text>Except to the
extent that enforcement of the requirements imposed under this section is
specifically committed to some other Federal agency under paragraph (1), the
Commission shall enforce such requirements.</text>
</paragraph><paragraph id="H6C5B8A115C9D4B45AA664A85AEED277D"><enum>(3)</enum><text>The authority of
the Commission under this section shall be in addition to its existing
authority to enforce the securities laws.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H27C1F4066FF342AE977C5B22201C3F45"><enum>(h)</enum><header>Exclusions</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—</text>
<paragraph id="HAA939160C82448C480E4458C0E4475D9"><enum>(1)</enum><text display-inline="yes-display-inline">insured, guaranteed, or administered by the
Secretary of Education, the Secretary of Agriculture, the Secretary of Veterans
Affairs, or the Small Business Administration; or</text>
</paragraph><paragraph id="HAB3456E33D5341EEBD1B6A5651C61153"><enum>(2)</enum><text display-inline="yes-display-inline">made, insured, guaranteed, or purchased by
any person that is subject to the supervision of the Farm Credit
Administration, including the Federal Agricultural Mortgage Corporation.</text>
</paragraph></subsection><subsection id="H1B926CF4A15B4F21ABA16D706052732A"><enum>(i)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="H818EDCA2AB9C4745BDF682A7248231BC"><enum>(1)</enum><text>The term
<term>asset-backed security</term> has the meaning given such term in section
229.1101(c) of title 17, Code of Federal Regulations, or any successor
thereto.</text>
</paragraph><paragraph id="H69FB25FAA6534C30BFA09AD866F75BC6"><enum>(2)</enum><text>The term
<term>Federal banking agencies</term> means the Board of Governors of the
Federal Reserve System, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, and the Federal Deposit Insurance
Corporation.</text>
</paragraph><paragraph id="HCCE08DD2D03946C08383B798FD3459A2"><enum>(3)</enum><text>The term
<term>insured depository institution</term> has the meaning given such term in
section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).</text>
</paragraph><paragraph id="HE0C9171E3FBC49F5856DCB892F328281"><enum>(4)</enum><text>The term
<term>securitization vehicle</term> means a trust, corporation, partnership,
limited liability entity, special purpose entity, or other structure
that—</text>
<subparagraph id="H3C7BBBCDA98A404AA2FAD2E5B63ADF72"><enum>(A)</enum><text>is the issuer, or
is created by the issuer, of pass-through certificates, participation
certificates, asset-backed securities, or other similar securities backed by a
pool of assets that includes loans; and</text>
</subparagraph><subparagraph id="HF2EC9479B4CB434784219E5D35FA2923"><enum>(B)</enum><text>holds such
loans.</text>
</subparagraph></paragraph><paragraph id="HDB8D342D757643DC9B3063F929EC4BEC"><enum>(5)</enum><text>The term
<term>securitizer</term> means the person that transfers, conveys, or assigns,
or causes the transfer, conveyance, or assignment of, loans, including through
a special purpose vehicle, to any securitization vehicle, excluding any trustee
that holds such loans for the benefit of the securitization
vehicle.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8D942B079BBF41069EACDCBB059F8733"><enum>(b)</enum><header>Study on risk
retention</header>
<paragraph id="H6A2EF4866E8B4673BF67630D07EC1208"><enum>(1)</enum><header>Study</header><text>The
Board, in coordination and consultation with the Comptroller of the Currency,
the Office of Thrift Supervision, the Federal Deposit Insurance Corporation,
and the Securities and Exchange Commission, shall conduct a study of the
combined impact by each individual class of asset-backed security of—</text>
<subparagraph id="HC12DA87088274413A9F23DA140299097"><enum>(A)</enum><text>the new credit
risk retention requirements contained in the amendment made by subsection (a);
and</text>
</subparagraph><subparagraph id="H6754105172784017A94D00373A5F578B"><enum>(B)</enum><text>the Financial
Accounting Statements 166 and 167 issued by the Financial Accounting Standards
Board.</text>
</subparagraph></paragraph><paragraph id="H225AB2AEE70D4D5485FC31A7FB17EEBE"><enum>(2)</enum><header>Report</header><text>Not
later than 90 days after the date of enactment of this title, the Board 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="H736F6EA6F17047738F76CB41C9CDF899"><enum>1503.</enum><header>Periodic and
other reporting under the Securities Exchange Act of 1934 for asset-backed
securities</header><text display-inline="no-display-inline">Section 15(d) of
Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) is amended—</text>
<paragraph id="H83C5D799913F4C0B86F1AA997727CFD2"><enum>(1)</enum><text>by inserting
<quote>, other than securities of any class of asset-backed security (as
defined in section 229.1101(c) of title 17, Code of Federal Regulations, or any
successor thereto),</quote> after <quote>securities of each
class</quote>;</text>
</paragraph><paragraph id="H346EE4829A084AAE86BBBF76BA61C469"><enum>(2)</enum><text>by inserting at
the end the following: <quote>The Commission may by rules and regulations
provide for the suspension or termination of the duty to file under this
subsection for any class of issuer of asset-backed security upon such terms and
conditions and for such period or periods as it deems necessary or appropriate
in the public interest or for the protection of investors. The Commission may,
for the purposes of this subsection, classify issuers and prescribe
requirements appropriate for each class of issuer of asset-backed
security.</quote>; and</text>
</paragraph><paragraph id="H67E581B1E17547A2AFEC6A8648788C4B"><enum>(3)</enum><text>by inserting after
the fifth sentence the following: <quote>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. In adopting regulations under this subsection,
the Commission shall 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. The Commission shall require issuers of asset-backed securities at a
minimum to disclose asset-level or loan-level data necessary for investors to
independently perform due diligence. Asset-level or loan-level data shall
include data with unique identifiers relating to loan brokers or originators,
the nature and extent of the compensation of the broker or originator of the
assets backing the security, and the amount of risk retention of the originator
or the securitizer of such assets.</quote>.</text>
</paragraph></section><section id="H18503D71E7C44FE792DD054781EA8F29"><enum>1504.</enum><header>Representations
and warranties in asset-backed offerings</header><text display-inline="no-display-inline">The Commission shall prescribe regulations
on the use of representations and warranties in the asset-backed securities
market that—</text>
<paragraph id="HC394B725CEB8402E8677D317E838E9B4"><enum>(1)</enum><text>require credit
rating agencies to include in reports accompanying credit ratings a description
of the representations, warranties, and enforcement mechanisms available to
investors and how they differ from representations, warranties, and enforcement
mechanisms in similar issuances; and</text>
</paragraph><paragraph id="H5DF334AB9D51451AB2D4360A9B6381D2"><enum>(2)</enum><text>require disclosure
on fulfilled repurchase requests across all trusts aggregated by originator, so
that investors may identify asset originators with clear underwriting
deficiencies.</text>
</paragraph></section><section id="HE86044669F464AE2AA67E853EB2CD7C3"><enum>1505.</enum><header>Exempted
transactions under the Securities Act of 1933</header>
<subsection id="H90A3876FA8EC43C28062CA66B4977621"><enum>(a)</enum><header>In
general</header><text>Section 4 of the Securities Act of 1933 (15 U.S.C. 77d)
is amended—</text>
<paragraph id="HE00A36485DEB464BB9D93CEFFCB20729"><enum>(1)</enum><text>by striking
paragraph (5); and</text>
</paragraph><paragraph id="H5A0D4E165B134AFFA2226D6E14FB57AD"><enum>(2)</enum><text>by redesignating
paragraph (6) as paragraph (5).</text>
</paragraph></subsection><subsection id="H30DE3F592F144EC08A3FC7AE450A8560"><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="HFD0E7FF83082415ABE480B721C870704"><enum>1506.</enum><header>Study on the
macroeconomic effects of risk retention requirements</header>
<subsection id="H6A3A8E88CB024F1CA16BCD9D2AF70233"><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="H6AD7B1888B8748D39B3E23CD69282598"><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="H72B537E0278B44589644D11A70C52400"><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="H49471A2916D545EA8CEAA0FE75C47B8B"><enum>(3)</enum><text>a
comparable analysis for proactively adjusting mortgage origination
requirements;</text>
</paragraph><paragraph id="H1E65B17A26E842DCA0DF059C030BDE4D"><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="H8375F218A6B44339B09F67CE1D58DE57"><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="HEDB2BB6A14AB4E5F83F63221238C77BE"><enum>(6)</enum><text>recommendations
for implementation and enabling legislation.</text>
</paragraph></subsection><subsection id="HD15F4D3C4B7C4DE29A9DE6D80A951126"><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="H3EBFFC55A63342FFA0DB1E000C92BE1B"><enum>G</enum><header>Enhanced
dissolution authority</header>
<section id="H4ED78F95EAF14CA8A71111A562A256EC"><enum>1601.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Dissolution Authority for Large, Interconnected Financial
Companies Act of 2009</quote>.</text>
</section><section id="H940BC9B6AB8E4527AA5FF3763764D9F2"><enum>1602.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph id="HEBC8E923B5EF4C92BC04277009812BA9"><enum>(1)</enum><header>Appropriate
regulatory agency</header>
<subparagraph id="HE0539972474C4060BA8322497F4A380E"><enum>(A)</enum><header>Corporation and
commission</header><text>The term <term>appropriate regulatory agency</term>
means—</text>
<clause id="HE90499B0A4B14EE49E108BA8229878C3"><enum>(i)</enum><text>the
Corporation;</text>
</clause><clause id="HBA4A4D5E27734124AD54AE4C3217B63A"><enum>(ii)</enum><text>the
Commission, if the financial company, or an affiliate thereof, 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) (other than an insured depository
institution)); and</text>
</clause><clause id="HB80FE5689421439CA73D2D304E19DFF6"><enum>(iii)</enum><text display-inline="yes-display-inline">if the financial company or an affiliate of
the financial company is an insurance company (other than an insured depository
institution), the applicable State insurance authority of the State in which
the insurance company is domiciled.</text>
</clause></subparagraph><subparagraph id="H064FF07FABC54D5390D371B5E09AF6E0"><enum>(B)</enum><header>Rules of
construction</header><text>More than 1 agency may be an appropriate regulatory
agency with respect to any given financial company. In such instances, the
Commission shall be the appropriate regulatory agency for purposes of section
1603 if the largest subsidiary of the financial company is a broker or dealer
as measured by total assets as of the end of the previous calendar quarter, the
applicable State insurance authority of the State in which the insurance
company is domiciled shall be the appropriate regulatory agency for purposes of
section 1603 if the largest subsidiary of the financial company is an insurance
company as measured by total assets as of the end of the previous calendar
quarter, and otherwise the Corporation shall be the appropriate regulatory
agency for purposes of section 1603.</text>
</subparagraph></paragraph><paragraph id="HC0153D65869D48B7AE0D1B35424B217E"><enum>(2)</enum><header>Bridge financial
company</header><text>The term <term>bridge financial company</term> means a
new financial company organized in accordance with section 1609(h) by the
Corporation.</text>
</paragraph><paragraph id="H3FD8D21F1BDF4303879831213D2C557F"><enum>(3)</enum><header>Commission</header><text>The
term <term>Commission</term> means the Securities and Exchange
Commission.</text>
</paragraph><paragraph id="HF028387B73094AEAA493FE173651DEB6"><enum>(4)</enum><header>Corporation</header><text>The
term <term>Corporation</term> means the Federal Deposit Insurance
Corporation.</text>
</paragraph><paragraph id="H0D1D149D587D43AF802D99FE9B1000C9"><enum>(5)</enum><header>Covered
financial company</header><text>The term <term>covered financial company</term>
means a financial company for which a determination has been made pursuant to
and in accordance with section 1603(b).</text>
</paragraph><paragraph id="H0C7F89AB76714A9C9E9FA95764DA5642"><enum>(6)</enum><header>Covered
subsidiary</header><text>The term <term>covered subsidiary</term> means a
subsidiary covered in paragraph (9)(B)(v).</text>
</paragraph><paragraph id="HA820109E19944DB4A8F7CCF5278F7C01"><enum>(7)</enum><header>Customer
property</header><text>The term <term>customer property</term> has the meaning
ascribed to it in the Securities Investor Protection Act of 1970.</text>
</paragraph><paragraph id="H84900E47091F402580FDBE4775B8E1E1"><enum>(8)</enum><header>Federal reserve
board</header><text>The term <term>Federal Reserve Board</term> means the Board
of Governors of the Federal Reserve System.</text>
</paragraph><paragraph id="HDE341D6DA1D44B0AA4D1683B4F26F8EF"><enum>(9)</enum><header>Financial
company</header><text>The term <term>financial company</term> means any company
that—</text>
<subparagraph id="HC0C38C3CE0BE4EB98634FE44BE71523D"><enum>(A)</enum><text>is incorporated or
organized under Federal law or the laws of any State;</text>
</subparagraph><subparagraph id="HF297FB63244D42AC85098C37DF025EFF"><enum>(B)</enum><text>is—</text>
<clause id="HEB99E501E1E847EC9C99FDC65C7596D8"><enum>(i)</enum><text>any
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 display-inline="no-display-inline" id="H13E02196F55E4D75B51E1DC74A088884"><enum>(ii)</enum><text display-inline="yes-display-inline">any company that has been subjected to
stricter prudential regulation under section 1103;</text>
</clause><clause id="H5A6CA9BCCAB74C2395222F4EBEBAEECC"><enum>(iii)</enum><text display-inline="yes-display-inline">any insurance company;</text>
</clause><clause id="H9DA3C8F7AD594B2DB553D7F61479A66C"><enum>(iv)</enum><text>any
company predominantly engaged in activities that 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)) or that have been identified for stricter
prudential standards under section 1103 of this title; or</text>
</clause><clause id="H4ED026E17CCF4D8DAC1A16144CE83065"><enum>(v)</enum><text>any
subsidiary of companies described in clauses (i) through (iv) (other than an
insured depository institution or any broker or dealer registered with the
Commission under section 15(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b)) that is a member of the Securities Investor Protection
Corporation).</text>
</clause></subparagraph></paragraph><paragraph id="H39E61DBCFFB84A3DAE45437ACD679823"><enum>(10)</enum><header>Fund</header><text display-inline="yes-display-inline">The term <term>Fund</term> means the
Systemic Dissolution Fund established in accordance with section
1609(n).</text>
</paragraph><paragraph id="H9B6CB6023F86446A8970B042F3478E6D"><enum>(11)</enum><header>Insurance
company</header><text>The term <term>insurance company</term> includes any
person engaged in the business of insurance to the extent of such
activities.</text>
</paragraph><paragraph id="HE19C6440BC964011BEED37B59C9EF2D9"><enum>(12)</enum><header>Secretary</header><text>The
term <term>Secretary</term> shall mean the Secretary of the Treasury.</text>
</paragraph><paragraph id="H2FD484C160774025BF64982ECD3D6739"><enum>(13)</enum><header>State</header><text>The
term <term>State</term> 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,
and the United States Virgin Islands.</text>
</paragraph><paragraph id="H8CAA2897888148FCB2E76A94CE18B4F4"><enum>(14)</enum><header>Certain other
terms</header><text>The terms
<term>affiliate,</term><quote>company,</quote><quote>control,</quote><quote>deposit,</quote><quote>depository
institution,</quote><quote>foreign bank,</quote><quote>insured depository
institution,</quote> and <quote>subsidiary</quote> have the same meanings as in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).</text>
</paragraph></section><section id="HA6F7C8D902BB4F4E90CBE72B49F4CE74"><enum>1603.</enum><header>Systemic risk
determination</header>
<subsection id="H1D75B5B358824E91A712D9C6CDFFF0C0"><enum>(a)</enum><header>Written
recommendation of the federal reserve board and the appropriate regulatory
agency</header>
<paragraph id="HB816CC2A319C4FE5AB93BFEC81CBA69C"><enum>(1)</enum><header>Vote
required</header><text display-inline="yes-display-inline">At the request of
the Secretary or the Chairman of the Federal Reserve Board or, in cases where
an financial company has a broker or dealer as its largest subsidiary as
measured by total assets as of the end of the previous calendar quarter, the
Commission, the Federal Reserve Board and the appropriate regulatory agency
shall; or on their own initiative, the Federal Reserve Board and the
appropriate regulatory agency may; consider whether to make the written
recommendation provided for in paragraph (2) with respect to a financial
company, which recommendation shall be made upon a vote of not less than
two-thirds of the members of the Federal Reserve Board then serving and
two-thirds of the members of the board or of the commission then serving of the
appropriate regulatory agency, as applicable.</text>
</paragraph><paragraph id="H70B3BB58B78E4E55B4689C36981CF786"><enum>(2)</enum><header>Recommendation
required</header><text>Any written recommendations made by the Federal Reserve
Board and the appropriate regulatory agency under paragraph (1) shall contain
the following:</text>
<subparagraph id="H9C3112ABC5D64DA099C2ABDC3C0BB006"><enum>(A)</enum><text>A description of
the effect that the default of the financial company would have on economic
conditions or financial stability in the United States.</text>
</subparagraph><subparagraph id="H983FC05C03434F31A8E6E28A11E10764"><enum>(B)</enum><text display-inline="yes-display-inline">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="H99EDFB55C23F41889F3B6AAE74E3DCBF"><enum>(C)</enum><text>A recommendation
regarding the nature and the extent of actions that the Board and the
appropriate regulatory agency recommend be taken under section 1604 regarding
the financial holding company subject to stricter standards.</text>
</subparagraph></paragraph></subsection><subsection id="H2221D17185B24490AFABC9B6B0B54B57"><enum>(b)</enum><header>Determination by
the secretary</header><text>Notwithstanding any other provision of Federal law
or the law of any State, if, upon the written recommendation of the Federal
Reserve Board and the board of directors or commission of the appropriate
regulatory agency as provided for in subsection (a)(1), the Secretary (in
consultation with the President) determines that—</text>
<paragraph id="H43A3BB5051C440E48E9FD4FD464D8B87"><enum>(1)</enum><text>the financial
company is in default or is in danger of default;</text>
</paragraph><paragraph id="H8ED08E4612FC44DAA73DBBAB7945F30E"><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 or economic
conditions in the United States; and</text>
</paragraph><paragraph id="H70B6251319614D6DBF89E134C61A05E8"><enum>(3)</enum><text>any action under
section 1604 would avoid or mitigate such adverse effects, taking into
consideration the effectiveness of the action in mitigating potential adverse
effects on the financial system or economic conditions, the cost to the general
fund of the Treasury, and the potential to increase moral hazard on the part of
creditors, counterparties, and shareholders in the financial company,</text>
</paragraph><continuation-text continuation-text-level="subsection">then the
Secretary must take action under section 1604(a), the Corporation must act in
accordance with section 1604(b), and the Corporation may take 1 or more actions
specified in section 1604(c) in accordance with the requirements of that
subsection, except that, prior to the Secretary or Corporation taking any
action under section 1604, the Federal Reserve Board or the appropriate Federal
regulatory agency shall take action to avoid or mitigate potential adverse
effects on low-income, minority, or underserved communities affected by the
failure of such financial company.</continuation-text></subsection><subsection id="HB28CA4C5EE004C2185B7BF3F904F4DC8"><enum>(c)</enum><header>Documentation
and review</header>
<paragraph id="H49A3B5C0C1D84AE0A5833AF191B39472"><enum>(1)</enum><header>In
general</header><text>The Secretary shall—</text>
<subparagraph id="H223DC0AD533D41A8A134AD79F513C443"><enum>(A)</enum><text>document any
determination under subsection (b); and,</text>
</subparagraph><subparagraph id="HED234381E2B9414F8C9191682ED6E04B"><enum>(B)</enum><text>retain the
documentation for review under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="HAFF7FAE3759542F39A16362843557D2E"><enum>(2)</enum><header>GAO
review</header><text>The Comptroller General of the United States shall review
and report to the Congress on any determination under subsection (b),
including—</text>
<subparagraph id="H323FA1100F7448A7B8C3A29506543886"><enum>(A)</enum><text>the basis for the
determination;</text>
</subparagraph><subparagraph id="H0BC8462D5761406B9602EB63C228DE7E"><enum>(B)</enum><text>the purpose for
which any action was taken pursuant thereto; and</text>
</subparagraph><subparagraph id="H23640701C5354EF2A4462DD05A471FBE"><enum>(C)</enum><text>the likely effect
of the determination and such action on the incentives and conduct of financial
holding companies subject to stricter standards and their creditors,
counterparties, and shareholders.</text>
</subparagraph></paragraph><paragraph id="H24418F517E814AD89E6115116D5B6CBB"><enum>(3)</enum><header>Report to
congress</header><text>Within 48 hours after a determination is made under
subsection (b), the Secretary shall provide written notice of the determination
to the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives. The notice
shall include a description of the basis for the determination.</text>
</paragraph></subsection><subsection id="HAFD95E4973A74256B41C23F8F611ABAD"><enum>(d)</enum><header>Default or in
danger of default</header><text>For purposes of subsection (b), a financial
holding company subject to stricter standards shall be considered to be in
default or in danger of default if any of the following conditions exist, as
determined in accordance with that subsection:</text>
<paragraph id="H75201B5B9D7841668A468CCAA3F2A45F"><enum>(1)</enum><text>A
case has been, or likely will promptly be, commenced with respect to the
financial holding company subject to stricter standards under title 11, United
States Code.</text>
</paragraph><paragraph id="H36313D24F11046BFA2AC1B6213D6A964"><enum>(2)</enum><text display-inline="yes-display-inline">The financial holding company subject to
stricter standards is critically undercapitalized, as such term has been or may
be defined by the Federal Reserve Board.</text>
</paragraph><paragraph id="H9A9A69E6D50A460FAC210C6F8D7FB80D"><enum>(3)</enum><text display-inline="yes-display-inline">The financial holding company subject to
stricter standards 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 without assistance under
section 1604.</text>
</paragraph><paragraph id="H98848900A13346D097F241E30A01F4B9"><enum>(4)</enum><text display-inline="yes-display-inline">The assets of the financial holding company
subject to stricter standards are, or are likely to be, less than its
obligations to creditors and others.</text>
</paragraph><paragraph id="H3F98499DC7E94445B054801F9371D952"><enum>(5)</enum><text display-inline="yes-display-inline">The financial holding company subject to
stricter standards 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>
</paragraph></subsection></section><section id="H02396DAC336D4ECF9EFEDCE8D8773AA2"><enum>1604.</enum><header>Resolution;
stabilization</header>
<subsection id="H613B9A9319BA40A7AB6592A4DA1DC521"><enum>(a)</enum><header>Appointment of
receiver</header>
<paragraph id="H0360CA12250F4B9C8C7872F01EABD9A0"><enum>(1)</enum><header>In
general</header><text>Upon the Secretary making a determination in accordance
with section 1603(b), the Secretary shall appoint the Corporation as receiver
for the covered financial company.</text>
</paragraph><paragraph id="H254A07C8348C48AEB83B7D43572FB7FF"><enum>(2)</enum><header>Time limit on
receivership authority</header><text display-inline="yes-display-inline">Any
appointment of the Corporation as receiver under paragraph (1) shall terminate
on the date that is the end of the 1-year period beginning on the date such
appointment is made.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H97080AB30E0142649A62DE8606325089"><enum>(b)</enum><header>Resolution
limitations</header>
<paragraph id="H430EE3BA93D74AA1854916C08544B103"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">An insolvent
financial company may be resolved under this subtitle only if the failure and
resolution of such company under title 11, United States Code, would be
systemically destabilizing, as determined by the appropriate Federal regulatory
agencies and the Secretary of the Treasury (in consultation with the President)
in accordance with section 1603(b).</text>
</paragraph><paragraph id="H89C74FC022A74141B3350345713D460F"><enum>(2)</enum><header>Liquidation</header><text display-inline="yes-display-inline">A financial company that comes within
coverage of this subtitle for resolution shall be placed in liquidation, and
the associated liquidation costs shall be paid from the company’s assets and
borne by the shareholders and unsecured creditors of such company.</text>
</paragraph><paragraph id="HD678BAE0FC49420EA8022B19FCB3CEA4"><enum>(3)</enum><header>Assessment for
excess liquidation costs</header><text>Any liquidation costs that exceed the
amount of liquidated assets of the company shall be paid through assessments on
large financial companies.</text>
</paragraph></subsection><subsection id="HE9B18AB4634A46AC9273D3A3562E644F"><enum>(c)</enum><header>Consultation</header><text>The
Corporation, as receiver—</text>
<paragraph id="HE82EB112AE5042CDAE0D51525D2974CE"><enum>(1)</enum><text>shall consult with
the regulators of the covered financial company and its covered subsidiaries
for purposes of ensuring an orderly resolution of the covered financial
company;</text>
</paragraph><paragraph id="HEB0A0F5A5F6141A4B9B7D77995E1B2E0"><enum>(2)</enum><text>may consult with,
or under section 1609(a)(1)(B)(v) or section 1609(a)(1)(K) acquire services of,
any outside experts as appropriate to inform and aid the Corporation in the
resolution process; and</text>
</paragraph><paragraph id="HB5EA6021889444A2A95E513A7A312C0A"><enum>(3)</enum><text>shall consult with
the primary regulators of any subsidiaries of the covered financial company
that are not covered subsidiaries as described in section 1602(9)(B)(iv) 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.</text>
</paragraph></subsection><subsection id="H7815D86916E6488D89C773425F998DA2"><enum>(d)</enum><header>Emergency
stabilization after appointment of receiver</header><text>Upon the Secretary
appointing the Corporation as receiver under subsection (a), the Corporation
may, in its corporate capacity and as an agency of the United States, with the
approval of the Secretary and subject to the conditions in subsections (f)
through (g), take the following actions under such terms and conditions that
the Corporation and the Secretary jointly deem appropriate:</text>
<paragraph id="H314C5189C9B7479E889DDEEBFC9AE591"><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="HCEF8CA983C614191B64D57E9E5307D6D"><enum>(2)</enum><text>Purchasing 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="H0FBC1C5732EA4CD8BCC2798E91529893"><enum>(3)</enum><text>Assuming or
guaranteeing the obligations of the covered financial company or any covered
subsidiary to one or more third parties.</text>
</paragraph><paragraph id="H066A669FDF9D4E0686C52DBC5F784291"><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 company or
any covered subsidiary to secure repayment of any transactions conducted under
this subsection.</text>
</paragraph><paragraph id="HF24D5DD06F6C4D02B92CD4A1D78C4D13"><enum>(5)</enum><text>Selling or
transferring all, or any part thereof, of such acquired assets, liabilities, or
obligations of the covered financial company or any covered subsidiary.</text>
</paragraph></subsection><subsection id="HB3BAC0885C1E46C9982E50F4E8BA9DF5"><enum>(e)</enum><header>Treatment of
certain insurance subsidiaries</header>
<paragraph id="HAF8773D60AB34191BDF5FFB90938D5DF"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsection (a), if a covered financial
company is an insurance company covered by a State law designed specifically to
deal with the insolvency of an insurance company, resolution of such company,
and any subsidiary of such company, will be conducted as provided under such
State law.</text>
</paragraph><paragraph id="H678646287AE24281B3E02F675C061770"><enum>(2)</enum><header>Exception for
covered subsidiaries</header><text>The requirement of paragraph (1) shall not
apply with respect to any covered subsidiary of such an insurance
company.</text>
</paragraph><paragraph id="H7A2BADF719944740954A4BAAF951FCC2"><enum>(3)</enum><header>Backup
authority</header><text>Notwithstanding paragraph (1), with respect to a
covered financial company described under paragraph (1), if, after the end of
the 60-day period beginning on the date a determination is made under section
1603(b) 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 resolution under the State's laws and requirements, 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 resolution under the State's laws and
requirements.</text>
</paragraph></subsection><subsection id="H683B595CB1604FD39FF2134CC2DFBE96"><enum>(f)</enum><header>Mandatory terms
and conditions for all stabilization actions</header><text>The Corporation as
receiver is authorized to take the stabilization actions listed in subsection
(d) only if—</text>
<paragraph id="HAB24D87FEA4641609ED3C4088FC4C83B"><enum>(1)</enum><text>the Secretary and
the Corporation determine that such action is necessary for the purpose of
financial stability and not for the purpose of preserving the covered financial
company;</text>
</paragraph><paragraph id="HEA5984BE227047CB9AF55381BE19A3C8"><enum>(2)</enum><text>the Corporation
ensures that the shareholders of a covered financial company do not receive
payment until after all other claims are fully paid;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H732175808B354B6F82072B1EF1BAE00F"><enum>(3)</enum><text display-inline="yes-display-inline">the Corporation ensures that any funds from
taxpayers shall be repaid as part of the resolution process before payments are
made to creditors;</text>
</paragraph><paragraph id="HF7140A0D6CC24CC4BBEC3F3126C30A71"><enum>(4)</enum><text>the Corporation
ensures that unsecured creditors bear losses;</text>
</paragraph><paragraph id="HBD9E539EB7894494ADDA68C1306CF0A6"><enum>(5)</enum><text>the Corporation
ensures 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 the Corporation is appointed as receiver); and</text>
</paragraph><paragraph id="H57F19D9E69C746E998FB2BD3389B6A6E"><enum>(6)</enum><text display-inline="yes-display-inline">the Corporation ensures 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).</text>
</paragraph></subsection><subsection id="HA2A27C28ADC64F3BB8683A8523D3B367"><enum>(g)</enum><header>Recoupment of
funds expended for systemic stabilization purposes</header><text>Amounts
expended from the Fund by the Corporation under this section shall be repaid in
full to the Fund from the following sources:</text>
<paragraph id="H8C359A580B9B487889624D5485B8B327"><enum>(1)</enum><header>Resolution
process</header><text display-inline="yes-display-inline">Amounts attributable
to the proceeds of the sale of, or income from, the assets of the covered
financial company.</text>
</paragraph><paragraph id="H597F766C55844807A9AC6519BF42D0F1"><enum>(2)</enum><header>Industry
assessments</header><text>If the sources described in paragraph (1) are
insufficient to repay the amount of the stabilization action in full, the
difference shall be recouped through assessments on financial companies in
accordance with section 1609(o).</text>
</paragraph></subsection></section><section id="H076B956F8461465FABBD2358EE0B76AB"><enum>1605.</enum><header>Judicial
review</header><text display-inline="no-display-inline">If a receiver is
appointed, the covered financial company may, not later than 30 days
thereafter, bring an action in the United States district court for the
judicial district in which the home office of such covered financial company is
located, or in the United States District Court for the District of Columbia,
for an order requiring that the receiver be removed, and the court shall, upon
the merits, dismiss such action or direct the receiver to be removed. Review of
such an action shall be limited to the appointment of a receiver under section
1604.</text>
</section><section id="HC18739181AEB49F1815EF25A4270F059"><enum>1606.</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 covered financial company’s shareholders or creditors for
acquiescing in or consenting in good faith to—</text>
<paragraph id="HC2EA4ABBCC2B4EF09286D985BF715086"><enum>(1)</enum><text>the Secretary’s
appointment of the Corporation as receiver for the covered financial company
under section 1604; or</text>
</paragraph><paragraph id="H17ABC7C68D5F4BA2A264EE5D527004CA"><enum>(2)</enum><text>an acquisition,
combination, or transfer of assets or liabilities under section 1609.</text>
</paragraph></section><section id="H4DDFDB022D464BADB1FF41A88524FD31"><enum>1607.</enum><header>Termination
and exclusion of other actions</header><text display-inline="no-display-inline">The Corporation’s acting as receiver for a
covered financial company under this title shall immediately, and by operation
of law, terminate any case commenced with respect to the covered financial
company under title 11, United States Code, or any proceeding under any State
insolvency law with respect to the covered financial company, and no such case
or proceeding may be commenced with respect to the covered financial company at
any time while the Corporation acts as receiver for the covered financial
company.</text>
</section><section id="H435FCB521F394EC3B46453BF2C786DAA"><enum>1608.</enum><header>Rulemaking</header><text display-inline="no-display-inline">The Corporation may prescribe such
regulations as the Corporation considers necessary or appropriate to implement
the provisions of this title.</text>
</section><section id="H17D393414ADB45788E639A7479189242"><enum>1609.</enum><header>Powers and
duties of corporation</header>
<subsection id="H37FD029EAC044961974FFE50D0FF6A16"><enum>(a)</enum><header>Powers and
authorities</header>
<paragraph id="H4761FE116DD340039AE40C0C4B280CDB"><enum>(1)</enum><header>General
powers</header>
<subparagraph id="HEE9D14E9C2B54720A5A6142A223600F3"><enum>(A)</enum><header>Successor to
covered financial company</header><text>The Corporation shall, upon appointment
as receiver for a covered financial company under section 1604, and by
operation of law, succeed to—</text>
<clause id="H77E0CA3AC08E4E5D82F0143F3AECDD50"><enum>(i)</enum><text>all
rights, titles, powers, and privileges of the covered financial company, and of
any stockholder, member, officer, or director of such institution with respect
to the covered financial company and the assets of the covered financial
company; and</text>
</clause><clause id="H08358B0EC62F4893B3637B22301051C8"><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="HEC7483A4B3D94419B778273A7FABEF6D"><enum>(B)</enum><header>Operate the
covered financial company</header><text>The Corporation as receiver for a
covered financial company may—</text>
<clause id="HEE8021E9D8A34894A38A85231AC89704"><enum>(i)</enum><text>take
over the assets of and operate the covered financial company with all 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="H52369E7497694D1B830451AE8D9BF7F3"><enum>(ii)</enum><text>collect all
obligations and money due the covered financial company;</text>
</clause><clause id="HB162894D16904F1CBA47B7F38AAB1081"><enum>(iii)</enum><text>perform all
functions of the covered financial company in the name of the covered financial
company;</text>
</clause><clause id="HC88B39810ABE41C8AD922214BDC92590"><enum>(iv)</enum><text>preserve and
conserve the assets and property of the covered financial company; and</text>
</clause><clause id="HDE15DB91032C499F9AB9C96B36372EF9"><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="HB4F648A142E24B3DA08B67818FA313CA"><enum>(C)</enum><header>Functions of
covered financial company’s officers, directors, and shareholders</header>
<clause id="H8F7BC75F877F406786950A565414970D"><enum>(i)</enum><header>In
general</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 section.</text>
</clause><clause id="H244A08BF1AAC475BAA80D69BFE67C48A"><enum>(ii)</enum><header>Presumption</header><text>There
shall be a strong presumption that the Corporation, as receiver, will remove
management responsible for the failed condition of the covered financial
company (if such management has not already been removed at the time the
Corporation is appointed as receiver).</text>
</clause></subparagraph><subparagraph id="H4CD0997D3E1A49CC9E89906C29932FDA"><enum>(D)</enum><header>Additional
powers as receiver</header><text>The Corporation may, as receiver, and subject
to all legally enforceable and perfected security interests, place the covered
financial company in liquidation and proceed 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="H09D9B72DD054498A92B3D6314C3FC9C8"><enum>(E)</enum><header>Organization of
new companies</header><text>The Corporation as receiver may organize a bridge
financial company under subsection (h).</text>
</subparagraph><subparagraph id="H41FE4E40D66249B399FEBF899F64D291"><enum>(F)</enum><header>Merger; transfer
of assets and liabilities</header>
<clause id="HD4D500574F254F19B01BF26429B39EE8"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), the Corporation as receiver
may—</text>
<subclause id="H91FA9ECB81D048FCB8495D2777319149"><enum>(I)</enum><text>merge the covered
financial company with another company; or</text>
</subclause><subclause id="H3C09EFEB25D74993A754622E38279FC9"><enum>(II)</enum><text>transfer any
asset or liability of the covered financial company (including 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="H15CDEDDFB2984FED8405786D9CBEB722"><enum>(ii)</enum><header>Federal agency
approval; antitrust review</header>
<subclause id="HE581E4EFE7CD4753B8BB519B0174C7D8"><enum>(I)</enum><header>In
general</header><text>If a transaction described in clause (i) 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 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 filing is required under the Hart
Scott-Rodino Antitrust Improvements Act of 1976 with the Department of Justice
or the Federal Trade Commission, the waiting period shall expire not later than
the 30th day following such filing notwithstanding any other provision of
Federal law or any attempt by any Federal agency to extend such waiting period,
and no further request for information by any Federal agency shall be
permitted.</text>
</subclause><subclause id="H0390209A683945EB9124BAF05D9DA73C"><enum>(II)</enum><header>Emergency</header><text>If
the Secretary in consultation with the Chairman of the Federal Reserve Board
has found that the Corporation must act immediately to prevent the probable
failure of 1 or more of the covered financial companies involved, the approvals
and filings referred to in subclause (I) shall not be required and the
transactions may be consummated immediately by the Corporation.</text>
</subclause></clause></subparagraph><subparagraph id="HE3EF7DABB49D47DD937F7BF239A9D8FA"><enum>(G)</enum><header>Payment of valid
obligations</header><text>The Corporation, as receiver, shall, to the extent
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="HA652E8C622D14BFB84E85F039E439E88"><enum>(H)</enum><header>Subpoena
authority</header>
<clause id="H6F93F31F3D6D4591AB1BFB1E55559559"><enum>(i)</enum><header>In
general</header><text>The Corporation may, for purposes of carrying out any
power, authority, or duty with respect to a 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
covered financial company were an insured depository institution.</text>
</clause><clause id="H81B41B380CDE4CCE8883783C7A7CB496"><enum>(ii)</enum><header>Rule of
construction</header><text>This section shall not be construed as limiting any
rights that the Corporation, in any capacity, might otherwise have to exercise
any powers described in clause (i) under any other provision of law.</text>
</clause></subparagraph><subparagraph id="HFBC276A0B1D74B9291EADB75CDCAC653"><enum>(I)</enum><header>Incidental
powers</header><text>The Corporation, as receiver, may—</text>
<clause id="H36C5A2BE8E614F0AA4E8B6379E71180A"><enum>(i)</enum><text>exercise all
powers and authorities specifically granted to receivers under this section and
such incidental powers as shall be necessary to carry out such powers;
and</text>
</clause><clause id="H5DDFBAC7D9784FEFB2930836406B65BD"><enum>(ii)</enum><text>take any action
authorized by this section, which the Corporation determines is in the best
interests of the covered financial company, its customers, its creditors, its
counterparties, or the stability of the financial system.</text>
</clause></subparagraph><subparagraph id="H04A97AF3FA03450D8D0992FC9F51F9D8"><enum>(J)</enum><header>Utilization of
private sector</header><text>In carrying out its responsibilities in the
management and disposition of assets from a covered financial company, the
Corporation, as receiver, 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 utilization of
such services is practicable, efficient, and cost effective.</text>
</subparagraph><subparagraph id="H49F67C31D19B4C5C808688ADE2363595"><enum>(K)</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
pursuant to this section and its succession, by operation of law, to the
rights, titles, powers, and privileges described in subparagraph (A) 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 in section 1609(b).</text>
</subparagraph><subparagraph id="H37F3A00CC890446EB7B5DDBD6F50D988"><enum>(L)</enum><header>Coordination
with foreign financial authorities</header><text>The Corporation as receiver
for a covered financial company shall coordinate with the appropriate foreign
financial authorities regarding the resolution of subsidiaries of the covered
financial company that are established in a country other than the United
States.</text>
</subparagraph></paragraph><paragraph id="H087AA0C84A704A6D9FE2FB4A6525DAAB"><enum>(2)</enum><header>Authority of
corporation to determine claims</header>
<subparagraph id="H94FB977304D5459C9E003EA86A4E4723"><enum>(A)</enum><header>In
general</header><text>The Corporation may, as receiver, determine claims in
accordance with the requirements of this subsection and regulations prescribed
under paragraph (3).</text>
</subparagraph><subparagraph id="H127DE33AF669466A810655DA377CEFCF"><enum>(B)</enum><header>Notice
requirements</header><text>The receiver, in any case involving the liquidation
or winding up of the affairs of a covered financial company, shall—</text>
<clause id="H19342880987349E2B07435A1DBAE5A9B"><enum>(i)</enum><text>promptly publish a
notice to the covered financial company’s creditors to present their claims,
together with proof, to the receiver by a date specified in the notice which
shall be not less than 90 days after the publication of such notice; and</text>
</clause><clause id="H8F84AEF045E046C9B44EE86AF88C4369"><enum>(ii)</enum><text>republish such
notice approximately 1 month and 2 months, respectively, after the publication
under clause (i).</text>
</clause></subparagraph><subparagraph id="HE7FB65B0E6CA45D68963BD63F101D397"><enum>(C)</enum><header>Mailing
required</header><text>The receiver shall mail a notice similar to the notice
published under subparagraph (B)(i) at the time of such publication to any
creditor shown on the covered financial company’s books—</text>
<clause id="HC425AE7C36934E718466E0CC442E5E3E"><enum>(i)</enum><text>at
the creditor’s last address appearing in such books; or</text>
</clause><clause id="H9293C6E71BD04E61815F73456BC09687"><enum>(ii)</enum><text>upon discovery of
the name and address of a claimant not appearing on the covered financial
company’s books, within 30 days after the discovery of such name and
address.</text>
</clause></subparagraph></paragraph><paragraph id="H86A828E7ED5243A5BAE1B55AB2117E90"><enum>(3)</enum><header>Rulemaking
authority relating to determination of claims</header>
<subparagraph id="HBC2674555E31452EB83FA49590824D13"><enum>(A)</enum><header>In
general</header><text>Subject to subsection (b), the Corporation shall
prescribe rules and regulations regarding the allowance or disallowance of
claims by the Corporation and providing for administrative determination of
claims and review of such determination.</text>
</subparagraph><subparagraph id="H2D570ACA153741E4A90DC5D383C68247"><enum>(B)</enum><header>Existing
rules</header><text>The Corporation may elect to use the regulations adopted
pursuant to the provisions of section 11 of the Federal Deposit Insurance Act
with respect to the determination of claims for a covered financial company as
if the covered financial company were an insured depository institution.</text>
</subparagraph></paragraph><paragraph id="H3348E8934CF84EE58DB310A46F02C76D"><enum>(4)</enum><header>Procedures for
determination of claims</header>
<subparagraph id="H543C83A8ACDE44F9B4ECA4FA2BA40550"><enum>(A)</enum><header>Determination
period</header>
<clause id="HD89E1107B49643DAA965592F09B19EB7"><enum>(i)</enum><header>In
general</header><text>Before the end of the 180-day period beginning on the
date any claim against a covered financial company is filed with the
Corporation as receiver, the Corporation shall determine whether to allow or
disallow the claim and shall notify the claimant of any determination with
respect to such claim.</text>
</clause><clause id="H191766C95510483081AE8173E59FBA5D"><enum>(ii)</enum><header>Extension of
time</header><text>The period described in clause (i) may be extended by a
written agreement between the claimant and the Corporation.</text>
</clause><clause id="H6388DA636AFA4611B888ACB2117EC702"><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 determination with respect to any claim is
mailed to the last address of the claimant which appears—</text>
<subclause id="H1D9E2A3392844518A59831C78B36136A"><enum>(I)</enum><text>on the covered
financial company’s books;</text>
</subclause><subclause id="H3FB7DC8ED88045E6BFDF2C835505F57C"><enum>(II)</enum><text>in the claim
filed by the claimant; or</text>
</subclause><subclause id="H6666D1A420A74A9D91B2A9973F0D6D8B"><enum>(III)</enum><text>in documents
submitted in proof of the claim.</text>
</subclause></clause><clause id="H4CC5FCC882384C84BD2F9D96696765D6"><enum>(iv)</enum><header>Contents of
notice of disallowance</header><text>If any claim filed under clause (i) is
disallowed, the notice to the claimant shall contain—</text>
<subclause id="H2DF45929AE68409E841F3751D3CBA6E0"><enum>(I)</enum><text>a
statement of each reason for the disallowance; and</text>
</subclause><subclause id="H878F2717988341108A4AA22F85914DF2"><enum>(II)</enum><text>the procedures
available for obtaining agency review of the determination to disallow the
claim or judicial determination of the claim.</text>
</subclause></clause></subparagraph><subparagraph id="H6CC1B887A9AF4C7C9A60E1544260CC00"><enum>(B)</enum><header>Allowance of
proven claim</header><text>The Corporation shall allow any claim received on or
before the date specified in the notice published under paragraph (2)(B)(i) by
the Corporation from any claimant which is proved to the satisfaction of the
Corporation.</text>
</subparagraph><subparagraph id="HAD7DDF7F57DD4870A30C0F94BAFB3B5D"><enum>(C)</enum><header>Disallowance of
claims filed after end of filing period</header>
<clause id="H1CB67B0A09FB482E812993B0B226C37E"><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="HA4B156CAF312463EA999F63555FED0AB"><enum>(ii)</enum><header>Certain
exceptions</header><text>Clause (i) shall not apply with respect to any claim
filed by any claimant after the date specified in the notice published under
paragraph (2)(B)(i) and such claim may be considered by the receiver if—</text>
<subclause id="HC98C72F7A3E0427AB4B7BAB87C4D95A8"><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="H90AF14F4C59C48F788650930C62EF6DF"><enum>(II)</enum><text>such claim is
filed in time to permit payment of such claim.</text>
</subclause></clause></subparagraph><subparagraph id="H524724D32A2E4754BD18E1B443EF95D3"><enum>(D)</enum><header>Authority to
disallow claims</header>
<clause id="HA297D26324644D8DB7D67A68EC9C2DC2"><enum>(i)</enum><header>In
general</header><text>The Corporation may disallow any portion of any claim by
a creditor or claim of security, preference, or priority which is not proved to
the satisfaction of the Corporation.</text>
</clause><clause id="H47BEDCC958064B9EA614B407078F2AB9"><enum>(ii)</enum><header>Payments to
less than fully secured creditors</header><text>In the case of a claim of a
creditor against a covered financial company which is secured by any property
or other asset of such covered financial company, the receiver—</text>
<subclause id="H6EEB34C4298E4FD6BC34BC2863528E8C"><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 against the covered
financial company; and</text>
</subclause><subclause id="H75CC9C30410C4970AB61DE59097AC3A5"><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="H50E622953C0A4BCA9D55FDABDC10CEAB"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="H18070CA47E4F4D1B8155793F1F347B71"><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="HECC1EB1D46BD45AAB189844E7D42DE18"><enum>(II)</enum><text>subject to clause
(ii), any legally enforceable or perfected security interest in the assets of
the covered financial company securing any such extension of credit.</text>
</subclause></clause><clause display-inline="no-display-inline" id="HCC91DEFD7F4B4D6E90375C1FC5996D80"><enum>(iv)</enum><header>Payments to
fully secured creditors</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
in any receivership of a covered financial company in which amounts realized
from the resolution are insufficient to satisfy completely any amounts owed to
the United States or to the Fund, as determined in the receiver’s sole
discretion, an allowed claim under a legally enforceable or perfected security
interest (that became a legally enforceable or perfected security interest
after the date of the enactment of this clause), other than a legally
enforceable or perfected security interest of the Federal Government, in any of
the assets of the covered financial company in receivership may be treated as
an unsecured claim in the amount of up to 20 percent as necessary to satisfy
any amounts owed to the United States or to the Fund. Any balance of such claim
that is treated as an unsecured claim under this subparagraph shall be paid as
a general liability of the covered financial company.</text>
</clause></subparagraph><subparagraph id="HAE934B2F0C4F40A386FEB5285BB41547"><enum>(E)</enum><header>No judicial
review of determination pursuant to subparagraph (d)</header><text>No court may
review the Corporation determination pursuant to subparagraph (D) to disallow a
claim.</text>
</subparagraph><subparagraph id="H77F1573CEB284B66AD87E3A3ED1E986A"><enum>(F)</enum><header>Legal effect of
filing</header>
<clause id="HA735D300F9EA410FB306055E9EAA37A8"><enum>(i)</enum><header>Statute of
limitation tolled</header><text>For purposes of any applicable statute of
limitations, the filing of a claim with the Corporation shall constitute a
commencement of an action.</text>
</clause><clause id="H4E82459F2F0D4DA2ADF44CE0F4791D86"><enum>(ii)</enum><header>No prejudice to
other actions</header><text>Subject to paragraph (9), the filing of a claim
with the Corporation 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="H98EA50D88B1F42B79BDD4008DDEA2D2D"><enum>(5)</enum><header>Provision for
judicial determination of claims</header>
<subparagraph id="H109DB9918EE648ECA701C344C7CF5989"><enum>(A)</enum><header>In
general</header><text>Before the end of the 60-day period beginning on the
earlier of—</text>
<clause id="H9CEAF33DCFED44C288857AD12C4FA598"><enum>(i)</enum><text>the
end of the period described in paragraph (4)(A)(i) (or, if extended by
agreement of the Corporation and the claimant, the period described in
paragraph (4)(A)(ii)) with respect to any claim against a covered financial
company for which the Corporation is receiver; or</text>
</clause><clause id="H67ACD2994670425A9B90805E06A0C451"><enum>(ii)</enum><text>the
date of any notice of disallowance of such claim pursuant to paragraph
(4)(A)(i),</text>
</clause><continuation-text continuation-text-level="subparagraph">the
claimant may file suit on a claim (or continue an action commenced before the
appointment of the receiver) in the district or territorial court of the United
States for the district within which the covered financial company’s principal
place of business is located or the United States District Court for the
District of Columbia (and such court shall have jurisdiction to hear such
claim).</continuation-text></subparagraph><subparagraph id="H71B796D863814E0F9E5FE28FCB675FC8"><enum>(B)</enum><header>Statute of
limitations</header><text>If any claimant fails to file suit on such claim (or
continue an action commenced before the appointment of the receiver) before the
end of the 60-day period described in subparagraph (A), the claim shall be
deemed to be disallowed (other than any portion of such claim which was allowed
by the receiver) as of the end of such period, such disallowance shall be
final, and the claimant shall have no further rights or remedies with respect
to such claim.</text>
</subparagraph></paragraph><paragraph id="HA93F71FD0D2749D19929D43EBC24DB96"><enum>(6)</enum><header>Expedited
determination of claims</header>
<subparagraph id="HB6F06D05BA834445ADCC842164CA6A3D"><enum>(A)</enum><header>Establishment
required</header><text>The Corporation shall establish a procedure for
expedited relief outside of the routine claims process established under
paragraph (4) for claimants who—</text>
<clause id="HF3371EE615314006AAED17D9A5B20BFE"><enum>(i)</enum><text>allege the
existence of legally valid and enforceable or perfected security interests in
assets of any covered financial company for which the Corporation has been
appointed as receiver; and</text>
</clause><clause id="H9F1F399A7FD843C69EAECFCFDAC95022"><enum>(ii)</enum><text>allege that
irreparable injury will occur if the routine claims procedure is
followed.</text>
</clause></subparagraph><subparagraph id="H978631AE26E64517A212B51125F1E83B"><enum>(B)</enum><header>Determination
period</header><text>Before the end of the 90-day period beginning on the date
any claim is filed in accordance with the procedures established pursuant to
subparagraph (A), the Corporation shall—</text>
<clause id="H7B1E84BCC5934E28ACCEC03FD68CAC7D"><enum>(i)</enum><text>determine—</text>
<subclause id="H2A9CC566D4824588AA67A51DBDD68421"><enum>(I)</enum><text>whether to allow
or disallow such claim; or</text>
</subclause><subclause id="H9E4B4D4154A34AEF847949871BD950DB"><enum>(II)</enum><text>whether such
claim should be determined pursuant to the procedures established pursuant to
paragraph (4); and</text>
</subclause></clause><clause id="HDFFCDA43B9544441A923841242E1F33D"><enum>(ii)</enum><text>notify the
claimant of the determination, and if the claim is disallowed, provide a
statement of each reason for the disallowance and the procedure for obtaining
judicial determination.</text>
</clause></subparagraph><subparagraph id="H36988B51C84F40E6BDEB1B28F2C2F183"><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 a suit, or to continue such a suit
filed before the appointment of the Corporation as receiver, seeking a
determination of the claimant’s rights with respect to such security interest
after the earlier of—</text>
<clause id="HF5984565F45F4284BE2110AA707A53CE"><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="H5F17F972C1164E388D1EFA3B2E0C2F53"><enum>(ii)</enum><text>the
date the Corporation denies the claim.</text>
</clause></subparagraph><subparagraph id="H51F3C8BBEEE84615B5B660709D368A6B"><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 (B), the claim shall be deemed to
be disallowed as of the end of such period (other than any portion of such
claim which was allowed by the receiver), such disallowance shall be final, and
the claimant shall have no further rights or remedies with respect to such
claim.</text>
</subparagraph><subparagraph id="H52C8BB42191047A9ADC3A764C343EEDA"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="HA394C8B205624FED9283B568C6E6F626"><enum>(i)</enum><header>Statute of
limitation 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="HFC84545293FD46F0BB3B42BACCB2867C"><enum>(ii)</enum><header>No prejudice to
other actions</header><text>Subject to paragraph (9), 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="HCA991892F06A4BC08C31B897389AC7DA"><enum>(7)</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 is in writing and executed by an authorized officer or
representative of the covered financial company.</text>
</paragraph><paragraph id="HC96EA86FBDE74E16A904DA7468ECDA7C"><enum>(8)</enum><header>Payment of
claims</header>
<subparagraph id="HEA6782AC86EF457098997407AAAA9D15"><enum>(A)</enum><header>In
general</header><text>The Corporation as receiver may, in its discretion and to
the extent funds are available, pay creditor claims, in such manner and amounts
as are authorized under this section, which are—</text>
<clause id="H4E94AAFD13A948B4A06A48D9911F8513"><enum>(i)</enum><text>allowed by the
receiver;</text>
</clause><clause id="H6C4BE171AC4243F6900BC5F9459AC55B"><enum>(ii)</enum><text>approved by the
Corporation pursuant to a final determination pursuant to paragraph (6);
or</text>
</clause><clause id="HA4FF3A4153AC4943AE0EA7BFD8CE78B4"><enum>(ii)</enum><text>determined by the
final judgment of any court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="H092E6AE2049E44D3941CCFEA339E8B0A"><enum>(B)</enum><header>Payment of
dividends on claims</header><text>The receiver may, in the receiver’s 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
(in the Corporation’s capacity as receiver), by reason of any such payment, for
failure to pay dividends to a claimant whose claim is not proved at the time of
any such payment.</text>
</subparagraph><subparagraph id="HC192A79DE4504039A2D2106EBFCF55C6"><enum>(C)</enum><header>Rulemaking
authority of corporation</header><text>The Corporation may prescribe such
rules, including definitions of terms, as it deems appropriate to establish a
single uniform interest rate for, or to make payments of post insolvency
interest to creditors holding proven claims against the receivership estates of
a covered financial company following satisfaction by the receiver of the
principal amount of all creditor claims.</text>
</subparagraph></paragraph><paragraph id="HD60576C4D8D144178BAD0044052593D8"><enum>(9)</enum><header>Suspension of
legal actions</header>
<subparagraph id="H24596132CC924D22B4CEC108BA943A42"><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 for a period
not to exceed 90 days in any noncriminal judicial action or proceeding to which
such covered financial company is or becomes a party.</text>
</subparagraph><subparagraph id="H365E629981CB4CC09A6A9BC637111446"><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) for a stay of any non-criminal judicial action or
proceeding in any court with jurisdiction of such action or proceeding, the
court shall grant such stay as to all parties.</text>
</subparagraph></paragraph><paragraph id="HFF40FAD12CB54B0382FF03A18747635E"><enum>(10)</enum><header>Additional
rights and duties</header>
<subparagraph id="H023B00A744FB4C87A9CA17E7F9EB03CF"><enum>(A)</enum><header>Prior final
adjudication</header><text>The Corporation shall abide by any final
unappealable judgment of any court of competent jurisdiction which was rendered
before the appointment of the Corporation as receiver.</text>
</subparagraph><subparagraph id="H95413299A5144F9DB0A49C139E8BFF06"><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="H00B4BAD25B3C46FEA83923B0E405A81B"><enum>(i)</enum><text>have
all the rights and remedies available to the covered financial company (before
the appointment of the receiver under section 1604) and the Corporation,
including but not limited to removal to Federal court and all appellate rights;
and</text>
</clause><clause id="H594EC30FAE9F48F39E518002F2FE596D"><enum>(ii)</enum><text>not
be required to post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="HF993291F1AF84808B326FEC620FB3A93"><enum>(C)</enum><header>No attachment or
execution</header><text>No attachment or execution may issue by any court upon
assets in the possession of the receiver.</text>
</subparagraph><subparagraph id="HA62ABD23CF484ABE9F25B5FEEBA2C3F3"><enum>(D)</enum><header>Limitation on
judicial review</header><text>Except as otherwise provided in this subsection,
no court shall have jurisdiction over—</text>
<clause id="H00DE43194A274D568117A1459B0AB0C1"><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="HD3FB9ED6842C476FB08C05F809E4B03B"><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="HCE80D4CE63954703A1D3579A74183138"><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
which—</text>
<clause id="HD1A99248A7734F1AB5548CADBE825284"><enum>(i)</enum><text>maximizes the net
present value return from the sale or disposition of such assets;</text>
</clause><clause id="H45479B2B952D4209A2E811B25ECA482A"><enum>(ii)</enum><text>minimizes the
amount of any loss realized in the resolution of cases;</text>
</clause><clause id="HB39BF18D34C1422EBACB79197E400EF2"><enum>(iii)</enum><text>minimizes the
cost to the general fund of the Treasury;</text>
</clause><clause id="H2E2B33068A174BFBA9CE7D3D9E7E0921"><enum>(iv)</enum><text>mitigates the
potential for serious adverse effects to the financial system and the U.S.
economy;</text>
</clause><clause id="H5C9958C183FE449A813DF23212DC475D"><enum>(v)</enum><text>ensures timely and
adequate competition and fair and consistent treatment of offerors; and</text>
</clause><clause id="H525DEBD2BFEB439EA03CC933A485E108"><enum>(vi)</enum><text>prohibits
discrimination on the basis of race, sex, or ethnic groups in the solicitation
and consideration of offers.</text>
</clause></subparagraph></paragraph><paragraph id="H11EFA99E08704034BE95367AB8D6F2DC"><enum>(11)</enum><header>Statute of
limitations for actions brought by receiver</header>
<subparagraph id="HA73E4522C2A546D6AF584A9232066F5A"><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 shall be—</text>
<clause id="H2875F3A89B024F58A2C243ADFEDB0ED0"><enum>(i)</enum><text>in
the case of any contract claim, the longer of—</text>
<subclause id="H2FEF251BAD344BF8BE3FE57018EBBB13"><enum>(I)</enum><text>the 6-year period
beginning on the date the claim accrues; or</text>
</subclause><subclause id="HE9826597F61844218FD30832F7962B3B"><enum>(II)</enum><text>the period
applicable under State law; and</text>
</subclause></clause><clause id="HFC13ABFCBC9A47D498A043614DAFBABD"><enum>(ii)</enum><text>in
the case of any tort claim, the longer of—</text>
<subclause id="H755D0641A4734693A3E59B4592A164DF"><enum>(I)</enum><text>the 3-year period
beginning on the date the claim accrues; or</text>
</subclause><subclause id="HE6BFC66B20C74A358F15B1C13DD3968D"><enum>(II)</enum><text>the period
applicable under State law.</text>
</subclause></clause></subparagraph><subparagraph id="H21E41A8018CA416B80FED192D96FB9CF"><enum>(B)</enum><header>Determination of
the 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 such subparagraph shall be the later of—</text>
<clause id="HB18C148026614A39A6B241FCD9FBEE0B"><enum>(i)</enum><text>the
date of the appointment of the Corporation as receiver under this title;
or</text>
</clause><clause id="HCA2F00E34ECB4DF0AD9A7957D70AC1BF"><enum>(ii)</enum><text>the
date on which the cause of action accrues.</text>
</clause></subparagraph><subparagraph id="H4CB36FD3A7DF46CCA8DABEE51399589B"><enum>(C)</enum><header>Revival of
expired state causes of action</header>
<clause id="H403AEEFDF2CB4A73A8B9BAC2238A7734"><enum>(i)</enum><header>In
general</header><text>In the case of any tort claim described in clause (ii)
for which the statute of limitation applicable under State law with respect to
such claim has expired not more than 5 years before the appointment of the
Corporation as receiver, the Corporation may bring an action as receiver on
such claim without regard to the expiration of the statute of limitation
applicable under State law.</text>
</clause><clause id="H5A27969400F2417E8D777A69096E4E82"><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="HEFD4905AF16C4DDD99F0F1E5103FB473"><enum>(12)</enum><header>Fraudulent
transfers</header>
<subparagraph id="H9AFF44F36D2141EC9A5ED41E48BAAAAC"><enum>(A)</enum><header>In
general</header><text>The Corporation, as receiver for any covered financial
company, may avoid a transfer of any interest of an institution affiliated
party, or any person who the Corporation determines is a debtor of the covered
financial company, in property, or any obligation incurred by such party or
person, that was made within 5 years of the date on which the Corporation was
appointed receiver if such party or person voluntarily or involuntarily made
such transfer or incurred such liability with the intent to hinder, delay, or
defraud the covered financial company or the Corporation.</text>
</subparagraph><subparagraph id="HF5639EA7022D4FFD91A1646FB6AEB9CE"><enum>(B)</enum><header>Right of
recovery</header><text>To the extent a transfer is avoided under subparagraph
(A), 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="HBD2A4D016AD44BFF8A89BAF9E5482CE5"><enum>(i)</enum><text>the
initial transferee of such transfer or the institution-affiliated party or
person for whose benefit such transfer was made; or</text>
</clause><clause id="H6FDAC6BF3481443FA07CCF2B4A954556"><enum>(ii)</enum><text>any
immediate or mediate transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="H9E0C2B88FA1349F39CCA903B10EB2395"><enum>(C)</enum><header>Rights of
transferee or obligee</header><text>The Corporation may not recover under
subparagraph (B)—</text>
<clause id="H4F81E9829A3448639B07A08FE897C412"><enum>(i)</enum><text>any
transfer that takes for value, including satisfaction or securing of a present
or antecedent debt, in good faith, or</text>
</clause><clause id="H756D1DF5F98447A181769F31035FEDA7"><enum>(ii)</enum><text>any
immediate or mediate good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="H190215D2D7754C84B257507326CFB801"><enum>(D)</enum><header>Rights under
this subsection</header><text>The rights of the Corporation as receiver of a
covered financial company under this subsection shall be superior to any rights
of a trustee or any other party (other than any party which is a Federal
agency) under title 11, United States Code.</text>
</subparagraph><subparagraph id="HA0F816C1BD654A5EA89E1B45F56A0E75"><enum>(E)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>institution affiliated party</term>
means—</text>
<clause id="HBFE3252AA1254366ACBE7DC051B21A0E"><enum>(i)</enum><text>any
director, officer, employee, or controlling stockholder of, or agent for, a
covered financial company;</text>
</clause><clause id="HC61E028ACCAA439AAA8F0B411239A26C"><enum>(ii)</enum><text>any
shareholder, consultant, joint venture partner, and any other person as
determined by the Corporation (by regulation or otherwise) who participates in
the conduct of the affairs of a covered financial company; and</text>
</clause><clause id="H6EEADA6CC85C47CAB732EA7C2E491929"><enum>(iii)</enum><text>any independent
contractor (including any attorney, appraiser, or accountant) who knowingly or
recklessly participates in—</text>
<subclause id="H41A74FE477134DF5AFACB9A955982781"><enum>(I)</enum><text>any violation of
any law or regulation;</text>
</subclause><subclause id="H95970528D8104BAFAA27BF3355C706BA"><enum>(II)</enum><text>any breach of
fiduciary duty; or</text>
</subclause><subclause id="H57228D8DF153427ABEB17B350F17771F"><enum>(III)</enum><text>any unsafe or
unsound practice,</text>
</subclause><continuation-text continuation-text-level="clause">which caused or
is likely to cause more than a minimal financial loss to, or a significant
adverse effect on, the covered financial company.</continuation-text></clause></subparagraph></paragraph><paragraph id="H9F45AE9E096E46F48FF7036D34231C7A"><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, 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="HEE5B1524D9DD416B9E0E182CC4E798EA"><enum>(14)</enum><header>Standards</header>
<subparagraph id="H3AD8A65FC2CB489883E93E29E70B9D55"><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 of such rule
that the applicant show that the injury, loss, or damage is irreparable and
immediate.</text>
</subparagraph><subparagraph id="HCC1936D039EA4CC69F6A229898EDE3B8"><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
such State provide substantially similar protections to such party’s right to
due process as Rule 65 (as modified with respect to such proceeding by
subparagraph (A)), the relief sought by the Corporation pursuant to paragraph
(14) may be requested under the laws of such State.</text>
</subparagraph></paragraph><paragraph id="H0FB1AAFCBDDE45EC81DBBDA59E0CC0AA"><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 subsection,
any final and unappealable 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="HE5093CC3D0DA45598A73205BFC288187"><enum>(16)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="HAB6190B9BDC546BA9B359AD60CCFF966"><enum>(A)</enum><header>In
general</header><text>The Corporation as receiver 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="HB76AB3EED52542C187442E8BBFD79976"><enum>(B)</enum><header>Annual
accounting or report</header><text>With respect to each receivership to which
the Corporation was 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="H403C607228EB4692A03693A4D2610C72"><enum>(C)</enum><header>Availability of
reports</header><text>Any report prepared pursuant to subparagraph (B) shall be
made available by the Corporation upon request to any member of the
public.</text>
</subparagraph><subparagraph id="H8CD582C3172C4C1890E9E353AFB7CDE5"><enum>(D)</enum><header>Recordkeeping
requirement</header>
<clause id="H6A5ED3D6075C47FEA5A1DA03E32A63EA"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), after the end of the
6-year period beginning on the date the Corporation is appointed as receiver of
a covered financial company the Corporation may destroy any records of such
covered financial company which the Corporation, in the Corporation’s
discretion, determines to be unnecessary unless directed not to do so by a
court of competent jurisdiction or governmental agency, or prohibited by
law.</text>
</clause><clause id="HC00EBCE5C9FB454287F1B8A9ED194211"><enum>(ii)</enum><header>Old
records</header><text>Notwithstanding clause (i), the Corporation may destroy
records of a covered financial company which are at least 10 years old as of
the date on which the Corporation is appointed as the receiver of such company
in accordance with clause (i) at any time after such appointment is final,
without regard to the 6-year period of limitation contained in clause
(i).</text>
</clause></subparagraph></paragraph></subsection><subsection id="HE347C8B4865C480F9D2295536369A2E1"><enum>(b)</enum><header>Priority of
expenses and unsecured claims</header>
<paragraph id="H301AE9EFEED14F66B3BF5AC58A42014E"><enum>(1)</enum><header>In
general</header><text>Unsecured claims against a covered financial company, or
the 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="H6ED900BA84F04B17948B60B2DD89C984"><enum>(A)</enum><text>Administrative
expenses of the receiver.</text>
</subparagraph><subparagraph id="H0474E697ECC24250BAC21CACD06A211F"><enum>(B)</enum><text>Any amounts owed
to the United States, unless the United States agrees or consents
otherwise.</text>
</subparagraph><subparagraph id="H30B107025B664792BF87E1F2152F45C6"><enum>(C)</enum><text>Any other general
or senior liability of the covered financial company (which is not a liability
described under subparagraph (D) or (E)).</text>
</subparagraph><subparagraph id="HFC4F151E98294F9983D2F123C4B6C957"><enum>(D)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (E)).</text>
</subparagraph><subparagraph id="H8DA3A8178B97431FBEF5EB3A943570D7"><enum>(E)</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="HA804420335B945FCAF6BC4A25E2208E6"><enum>(2)</enum><header>Post-receivership
financing priority</header><text>In the event that the Corporation as receiver
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="H71FBFFB5A0E445D1BBCF50349740EEA2"><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="H7119CA1D2D38494395251AF72ED3F543"><enum>(4)</enum><header>Creditors
similarly situated</header><text display-inline="yes-display-inline">Subject to
the priorities established under paragraphs (2) and (3), all claimants of a
covered financial company that are similarly situated under paragraph (1) shall
be treated in a similar manner, except that the receiver may take any action
(including making payments) that does not comply with this subsection,
if—</text>
<subparagraph id="H5278C443C9684B33B4B5E17D1043738C"><enum>(A)</enum><text>the Corporation
determines that such action is necessary to maximize the value of the assets of
the covered financial company, to maximize the present value return from the
sale or other disposition of the assets of the covered financial company, to
minimize the amount of any loss realized upon the sale or other disposition of
the assets of the covered financial company, or to contain or address serious
adverse effects on financial stability or the U.S. economy; and</text>
</subparagraph><subparagraph id="H754500EFC2C54652916495871A974AC3"><enum>(B)</enum><text>all claimants that
are similarly situated under paragraph (1) receive not less than the amount
provided in subsection (d)(2).</text>
</subparagraph></paragraph><paragraph id="H86475808E83649CFB56586C620297DAA"><enum>(3)</enum><header>Secured claims
unaffected</header><text>This subsection shall not affect secured claims,
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="HB58913447980480F93598674AAA36120"><enum>(4)</enum><header>Definitions</header><text>As
used in this subsection, the term <term>administrative expenses of the
receiver</term> includes—</text>
<subparagraph id="H7D8AFD31A7864E5890E9AB5749C3DDC9"><enum>(A)</enum><text>the actual,
necessary costs and expenses incurred by the receiver in preserving the assets
of a covered financial company or liquidating or otherwise resolving the
affairs of a covered financial company for which the Corporation has been
appointed as receiver; and</text>
</subparagraph><subparagraph id="HC35C52C9E41A4196B6A76D4515790397"><enum>(B)</enum><text>any obligations
that the receiver determines are necessary and appropriate to facilitate the
smooth and orderly liquidation or other resolution of the covered financial
company.</text>
</subparagraph></paragraph></subsection><subsection id="HCDEBEDB6AE6A40C2A75C63AAE4882EFC"><enum>(c)</enum><header>Provisions
relating to contracts entered into before appointment of receiver</header>
<paragraph id="HB404315CE9DC4B7ABBDFFC52D907AE32"><enum>(1)</enum><header>Authority to
repudiate contracts</header><text>In addition to any other rights a receiver
may have, the Corporation as receiver for any covered financial company may
disaffirm or repudiate any contract or lease—</text>
<subparagraph id="HF8744C6B0D0F4D2EBFED25FEAC1FD6B4"><enum>(A)</enum><text>to which the
covered financial company is a party;</text>
</subparagraph><subparagraph id="HB057325A7DF640878D5B4466034D12AB"><enum>(B)</enum><text>the performance of
which the receiver, in the receiver’s discretion, determines to be burdensome;
and</text>
</subparagraph><subparagraph id="H208B80997F614151BDA84734EC7C6FA0"><enum>(C)</enum><text>the disaffirmance
or repudiation of which the receiver determines, in the receiver’s discretion,
will promote the orderly administration of the covered financial company’s
affairs.</text>
</subparagraph></paragraph><paragraph id="HCFCEB89BCB15487392502D881F3EAD3D"><enum>(2)</enum><header>Timing of
repudiation</header><text>The receiver appointed for any covered financial
company under section 1604 shall determine whether or not to exercise the
rights of repudiation under this subsection within a reasonable period
following such appointment.</text>
</paragraph><paragraph id="HB0DF7B4C59DC4DB4A5A9E7ADD1E5730E"><enum>(3)</enum><header>Claims for
damages for repudiation</header>
<subparagraph id="HFBCA4E5097604B09A8679308ED3B485E"><enum>(A)</enum><header>In
general</header><text>Except as otherwise provided in subparagraph (C) and
paragraphs (4), (5), and (6), the liability of the receiver for the
disaffirmance or repudiation of any contract pursuant to paragraph (1) shall
be—</text>
<clause id="HAF73BC79E38F422FBD6784E950266999"><enum>(i)</enum><text>limited to actual
direct compensatory damages; and</text>
</clause><clause id="HB4ADFC4F8F744D23B1B633BEC77C0BC8"><enum>(ii)</enum><text>determined as
of—</text>
<subclause id="H008D25DA3CFF4EE0B683705E44AAFBBF"><enum>(I)</enum><text>the date of the
appointment of the receiver; or</text>
</subclause><subclause id="H77D72E308DAB49308AC46640AB8495C5"><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="HEA707D6D3CF54233BB8DD4A16D9122A8"><enum>(B)</enum><header>No liability for
other damages</header><text>For purposes of subparagraph (A), the term
<term>actual direct compensatory damages</term> does not include—</text>
<clause id="H5CD6D80A6C4C43BE99A2FC8267755347"><enum>(i)</enum><text>punitive or
exemplary damages;</text>
</clause><clause id="HD87D1C1DAF994231B6CF95DAC321D6DA"><enum>(ii)</enum><text>damages for lost
profits or opportunity; or</text>
</clause><clause id="H85CDF2FE5AB04A61939E6128C694B6C3"><enum>(iii)</enum><text>damages for pain
and suffering.</text>
</clause></subparagraph><subparagraph id="H60CFDE81858748FDBB58E9398A50F54C"><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="H4B0F056ECB794B6AB01B264977529B5B"><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="HC30C8BEC112B40A1A50CEE8FCB768871"><enum>(ii)</enum><text>paid in
accordance with this subsection and subsection (d) except as otherwise
specifically provided in this subsection.</text>
</clause></subparagraph></paragraph><paragraph id="HBB4729008601450A8ECD4F6FA9B6234A"><enum>(4)</enum><header>Leases under
which the covered financial company is the lessee</header>
<subparagraph id="HFA59C58C16E7435EAF2FDC4B5300D020"><enum>(A)</enum><header>In
general</header><text>If the receiver disaffirms or repudiates a lease under
which the covered financial company was 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="HC3D483C6FCA34D6CAF0D3031F1904AB4"><enum>(B)</enum><header>Payments of
rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease
to which such subparagraph applies shall—</text>
<clause id="HA83143BB35CD4B7198E8C39EBF08E075"><enum>(i)</enum><text>be
entitled to the contractual rent accruing before the later of the date—</text>
<subclause id="HBDAF407EEBA0424798725F78FF0994BC"><enum>(I)</enum><text>the notice of
disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="H11861EC3052F4011B1DD9C25EFE2FB7A"><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="H9BA61BF69A4D43A7A496C6D07633034C"><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="HF665D2A66B6C4D00B2A54754DC29FA43"><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 subsection
and subsection (d).</text>
</clause></subparagraph></paragraph><paragraph id="HCEC167511EDF4F3BBA1A7F8F8BDE5BFF"><enum>(5)</enum><header>Leases under
which the covered financial company is the lessor</header>
<subparagraph id="H2D5044743FF043A6B1893D25B2C9C7A2"><enum>(A)</enum><header>In
general</header><text>If the receiver 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="H0462F12DCE2B463E84FD01960A406CF3"><enum>(i)</enum><text>treat the lease as
terminated by such repudiation; or</text>
</clause><clause id="HBEC0B5C025F04BC19F32C9B369BFB1EA"><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="H4AC14C1D733F47A9BDACAABF6B18B815"><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 such subparagraph—</text>
<clause id="H3CE5D63C0C78416E84D9505A9B3C8200"><enum>(i)</enum><text>the
lessee—</text>
<subclause id="HD1D0CF992A0A443083947D0D90CC28EE"><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;</text>
</subclause><subclause id="H8CDA259564B14A279E90FB1FEA4599E6"><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="HC22176D2CCDB47E78481EF7F5AC9F9E5"><enum>(ii)</enum><text>the
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="H71A7D145F43646E0849143F19115507D"><enum>(6)</enum><header>Contracts for
the sale of real property</header>
<subparagraph id="H4893C02E57694673B0EC7C818B7146DA"><enum>(A)</enum><header>In
general</header><text>If the receiver repudiates any contract (which meets the
requirements of subsection (a)(7)) 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="H8306476EF51B475C8D22552649042F3D"><enum>(i)</enum><text>treat the contract
as terminated by such repudiation; or</text>
</clause><clause id="H985ECB8DBB454B378517D0CCD6A071F5"><enum>(ii)</enum><text>remain in
possession of such real property.</text>
</clause></subparagraph><subparagraph id="H801C53BD0ED04209951D0FC1B038237B"><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 such
subparagraph—</text>
<clause id="H572AE7C2F1614E1B91009C91A55A021C"><enum>(i)</enum><text>the
purchaser—</text>
<subclause id="H1FF71E0157184E418D69F9ADACE42DB6"><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="H049CF5FF12954EF6B87CFF314C303E73"><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="HD065CC8F1EED4292A644567A03A1E2B5"><enum>(ii)</enum><text>the
receiver shall—</text>
<subclause id="H692BB50205A5446DB486655710427088"><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="H5C12F334093947DFB38C5E2A808375B6"><enum>(II)</enum><text>deliver title to
the purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="HB5F572BB5AF44616A282604F02815F8D"><enum>(III)</enum><text>have no
obligation under the contract other than the performance required under
subclause (II).</text>
</subclause></clause></subparagraph><subparagraph id="HFD692D06829F47C7B32B2A8DBADE74B9"><enum>(C)</enum><header>Assignment and
sale allowed</header>
<clause id="H1ACA0B0C851F4ED9A3BFD814A687DB3A"><enum>(i)</enum><header>In
general</header><text>No provision of this paragraph shall be construed as
limiting the right of the 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="HAD54716833874039BC04875C415A6901"><enum>(ii)</enum><header>No liability
after assignment and sale</header><text>If an assignment and sale described in
clause (i) is consummated, the 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="HEFED77D1A1A741EE92DE5C22A0923DEB"><enum>(7)</enum><header>Provisions
applicable to service contracts</header>
<subparagraph id="H95B07EC3BF2F42F4B5E5ECEF4BC79287"><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 appointment of the receiver shall be—</text>
<clause id="HF551B1FEFE774742B43E269E5F8E8711"><enum>(i)</enum><text>a
claim to be paid in accordance with subsections (a), (b) and (d); and</text>
</clause><clause id="HB99F75695278484E85C8AAF2BDE9AFAB"><enum>(ii)</enum><text>deemed to have
arisen as of the date the receiver was appointed.</text>
</clause></subparagraph><subparagraph id="HD7D2E94C0FBC4790A717FA37C2FE5E01"><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 receiver
accepts performance by the other person before the receiver makes any
determination to exercise the right of repudiation of such contract under this
section—</text>
<clause id="H26712C1188F44418B34F9874DAA4CEEF"><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="HF37F03C707BB4E54A05EF325A83D94F8"><enum>(ii)</enum><text>the
amount of such payment shall be treated as an administrative expense of the
receivership.</text>
</clause></subparagraph><subparagraph id="HC0E611954978486EA146C578A92835D9"><enum>(C)</enum><header>Acceptance of
performance no bar to subsequent repudiation</header><text>The acceptance by
any receiver of services referred to in subparagraph (B) in connection with a
contract described in such subparagraph shall not affect the right of the
receiver to repudiate such contract under this section at any time after such
performance.</text>
</subparagraph></paragraph><paragraph id="HAF8A1C69B65E4CFE9E38BA3F35D0B95E"><enum>(8)</enum><header>Certain
qualified financial contracts</header>
<subparagraph id="H5196839DEE244070B3BB868BA9F85CF5"><enum>(A)</enum><header>Rights of
parties to contracts</header><text>Subject to paragraphs (9) and (10) of this
subsection and notwithstanding any other provision of this section (other than
subsection (a)(7)), any other Federal law, or the law of any State, no person
shall be stayed or prohibited from exercising—</text>
<clause id="H1CAFE88ED7A6469692CC83938C0D32D8"><enum>(i)</enum><text>any
right such person has to cause the termination, liquidation, or acceleration of
any qualified financial contract with a covered financial company which arises
upon the appointment of the Corporation as receiver for such covered financial
company at any time after such appointment;</text>
</clause><clause id="HA2AB61EBCE084E35BB245DCB167BD520"><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).</text>
</clause><clause id="H8B9D0635AD9D4AD89D90D283FCAE2676"><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 and
agreements described in clause (i), including any master agreement for such
contracts or agreements.</text>
</clause></subparagraph><subparagraph id="HD4E42011165545478BB8884F8F0FDB89"><enum>(B)</enum><header>Applicability of
other provisions</header><text>Subsection (a)(9) shall apply in the case of any
judicial action or proceeding brought against any receiver referred to in
subparagraph (A), or the covered financial company for which such receiver was
appointed, by any party to a contract or agreement described in subparagraph
(A)(i) with such company.</text>
</subparagraph><subparagraph id="HA0FD9141B6874C1F81F3E70282BFF786"><enum>(C)</enum><header>Certain
transfers not avoidable</header>
<clause id="H726875EA47064136A85B430020A74CF6"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (11), 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 such or as receiver of 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="H4FF73D127C3141BE9BA64C578F535C41"><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 Corporation determines that the
transferee had actual intent to hinder, delay, or defraud such company, the
creditors of such company, or any receiver appointed for such company.</text>
</clause></subparagraph><subparagraph id="HF62F6BCA6B2046428E35378393173DD7"><enum>(D)</enum><header>Certain contacts
and agreements defined</header><text>For purposes of this subsection, the
following definitions shall apply:</text>
<clause id="HC68D7F6231DC472687C9238F4B87EAC7"><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="H48D3F496133C4DEFAAE53123D103A0D9"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="HFBD09185B6AB422789D03351A1BBED27"><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="HE856F717C5DC452BB70CA20AA911F1E4"><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="H1E4E8366BDF44BF485806ACCC995C6F7"><enum>(III)</enum><text>means any option
entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="HA347C1B8D26F498D83D501E8C2B31FCE"><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 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="H9FA3C56535734620AFC1A2545F57B8D1"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="HA90B71E6B70A40A5827B90DE20515D8F"><enum>(VI)</enum><text>means any
extension of credit for the clearance or settlement of securities
transactions;</text>
</subclause><subclause id="HD6B40AAE06B846E2916001B3D3E7ED21"><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="HE18DE3D4E39F4C7A9D5E630D90C7FC1F"><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="H9159B682608949B0BCB04AFE4B00491A"><enum>(IX)</enum><text>means any
combination of the agreements or transactions referred to in this
clause;</text>
</subclause><subclause id="H7468CD56D7F24631A688D605F36081B2"><enum>(X)</enum><text>means any option
to enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="HBF305E7BE67C4F48A376E80E48FFBDB3"><enum>(XI)</enum><text>means a master
agreement that provides for an agreement or transaction referred to in
subclause (I), (III), (IV), (V), (VI), (VII), (VIII), (IX), or (X), together
with all supplements to any such master agreement, without regard to whether
the master agreement provides for an agreement or transaction that is not a
securities contract under this clause, except that the master agreement shall
be considered to be a securities contract under this clause only with respect
to each agreement or transaction under the master agreement that is referred to
in subclause (I), (III), (IV), (V), (VI), (VII), (VIII), (IX), or (X);
and</text>
</subclause><subclause id="H280CCFF043D74F55801246EE722F7F02"><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="HC361C17C575944058233D1D03C9D6C14"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="H2A5DF0B9BE9649BF8E73784CCECE51F9"><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="H499A01AF2CDD4B2295A235386A7B61BA"><enum>(II)</enum><text>with respect to a
foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="H4BB1E2C1F317444D80F2457492EBD49D"><enum>(III)</enum><text>with respect to
a leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="H35BCA12EDDF14C0C8E80B6CD46119C43"><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="H4B9C4875F8F24D708A6DAC369A9212AE"><enum>(V)</enum><text>with respect to a
commodity options dealer, a commodity option;</text>
</subclause><subclause id="H9050E67761B34B749310E5FB1F177F6B"><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="H8C1052F744AE4101BA34365786B5C803"><enum>(VII)</enum><text>any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="HB2209B8EB5A84BB4B4473B6D5A9C12E3"><enum>(VIII)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="HC8D114E0AC1C49BFBCDCE3544B80E06D"><enum>(IX)</enum><text>a master
agreement that provides for an agreement or transaction referred to in
subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with
all supplements to any such master agreement, without regard to whether the
master agreement provides for an agreement or transaction that is not a
commodity contract under this clause, except that the master agreement shall be
considered to be a commodity contract under this clause only with respect to
each agreement or transaction under the master agreement that is referred to in
subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or</text>
</subclause><subclause id="HD9164E045BA849D9A9A050DBCF7766B6"><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="H17815A748B33412E990CBE62DF02BD0E"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="HA8703F54E7F74E1092DD8BC2B493B404"><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 more than
2 days after the date the contract is entered into, including a repurchase or
reverse repurchase transaction (whether or not such repurchase or reverse
repurchase transaction is a <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="H50E12962ACA647379C41047C3D7E985D"><enum>(II)</enum><text>any combination
of agreements or transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause id="H0747EEC77A54482DA4079AB5BFBB4275"><enum>(III)</enum><text>any option to
enter into any agreement or transaction referred to in subclause (I) or
(II);</text>
</subclause><subclause id="HE042B622B44246868A171EB637CA9272"><enum>(IV)</enum><text>a master
agreement that provides for an agreement or transaction referred to in
subclauses (I), (II), or (III), together with all supplements to any such
master agreement, without regard to whether the master agreement provides for
an agreement or transaction that is not a forward contract under this clause,
except that the master agreement shall be considered to be a forward contract
under this clause only with respect to each agreement or transaction under the
master agreement that is referred to in subclause (I), (II), or (III);
or</text>
</subclause><subclause id="HC1168D55DF1B434C99BB990C53D16AA8"><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="H96A2E1F56FF547FAA9E0845FCEA60ACD"><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="HF44C295B37584117BFD554847DF7C93A"><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 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
shall mean 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 Federal Reserve Board) 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="HBDB14C937A6D4CA3BD9883CD09209F58"><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="H718887277BF64392826E84A9FFE87518"><enum>(III)</enum><text>means any
combination of agreements or transactions referred to in subclauses (I) and
(IV);</text>
</subclause><subclause id="H1444F4CFFFF34375836069AE70EE4D78"><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="HC5B26EF252EF4410926B4A7AB57D22B1"><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="H6B7DA5ECEF41496A8271DED229B76CB4"><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="HB577E1E3C4C94DDC8667DDEE3CA279F8"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="HD9ADCA9713844BBFB2BD87CF09EDC15A"><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="HE9FDBC1B563A491687767581A7A00B20"><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="H159A21B7948340D2BBE3FF3076C9D2B0"><enum>(III)</enum><text>any combination
of agreements or transactions referred to in this clause;</text>
</subclause><subclause id="HD0BCE6C54A6D4B9EBE460D7ED973C6D8"><enum>(IV)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="H8658E73E7BE646F8BA4557323F25FD0B"><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="HD8F4FDE02182408C823D850BC35302AF"><enum>(VI)</enum><text>any security
agreement or arrangement or other credit enhancement related to any agreements
or transactions referred to in subclause (I), (II), (III), (IV), or (V),
including any guarantee or reimbursement obligation in connection with any
agreement or transaction referred to in any such subclause.</text>
</subclause></clause><clause id="H0A16D7044BCD4BD0ABE44CFCC88EB82B"><enum>(vii)</enum><header>Definitions
relating to default</header><text>When used in this paragraph and paragraph
(10)—</text>
<subclause id="H5D9020E861604781AB2CA4D11482FFB6"><enum>(I)</enum><text>The term
<term>default</term> shall mean, with respect to a covered financial company,
any adjudication or other official determination by any court of competent
jurisdiction, or other public authority pursuant to which a conservator,
receiver, or other legal custodian is appointed; and</text>
</subclause><subclause id="HB9EB86EC85794CEFB5B0A2B335DE3C4B"><enum>(II)</enum><text>The term <term>in
danger of default</term> shall mean a covered financial company with respect to
which the Corporation or appropriate State authority has determined
that—</text>
<item id="HB4739178DC1140619DD8D8610B8AD2B6"><enum>(aa)</enum><text>in
the opinion of the Corporation or such authority—</text>
<subitem id="H35A5CDCE761F40E1979F0500AD1F38F8"><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="H4C6232C3C2884898810620F5CD30D342"><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><subitem id="H66CA8D480297483D813624A34A62864F"><enum>(CC)</enum><text>in
the opinion of the Corporation or such authority—</text>
</subitem></item><item id="H33E1102703CC49DFBEB8077FD48A4575"><enum>(bb)</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>
</item><item id="HE151B6755DF34B79AAACDC3C0F97E58D"><enum>(cc)</enum><text>there
is no reasonable prospect that the capital will be replenished without Federal
assistance.</text>
</item></subclause></clause><clause id="HBBF6E37F072446C5B2986D03C2A51BC0"><enum>(viii)</enum><header>Treatment of
master agreement as one agreement</header><text>Any master agreement for any
contract or agreement described in any preceding clause of this subparagraph
(or any master agreement for such master agreement or agreements), together
with all supplements to such master agreement, shall be treated as a single
agreement and a single qualified financial 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="H5F9F8C4B08B8457CADC82D21A57260F4"><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 covered financial company’s equity of
redemption.</text>
</clause><clause id="H8F2C0806DBBA463C99E6B17530A53988"><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="HC4FDEF5412C642489D477CFF250C18E6"><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 in accordance with paragraphs (9) and (10) of this
subsection or to disaffirm or repudiate any such contract in accordance with
subsection (c)(1) of this section.</text>
</subparagraph><subparagraph id="HD036F451E8EA4705869AB7FBDBF6334F"><enum>(F)</enum><header>Walkaway clauses
not effective</header>
<clause id="H305366778FAD4588A07D16462BC0629D"><enum>(i)</enum><header>In
general</header><text>Notwithstanding the provisions of subparagraph (A) 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="H668082EC07D541489BA63E1507536AB4"><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 the receiver is appointed until the
earlier of—</text>
<subclause id="HBEF0DF1515F6476B82C031746E458623"><enum>(I)</enum><text>the time such
party receives notice that such contract has been transferred pursuant to
paragraph (10)(A); or</text>
</subclause><subclause id="H1E70DFC6CE594E4AB6238C11E174B7E5"><enum>(II)</enum><text>5:00 p.m.
(eastern time) on the business day following the date of the appointment of the
receiver.</text>
</subclause></clause><clause id="HEEF592CCF0274561AA3838C07AE0CA96"><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 such party’s status 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 a receiver of such covered financial company, and not as
a result of a party’s exercise of any right to offset, setoff, or net
obligations that exist under the contract, any other contract between those
parties, or applicable law.</text>
</clause></subparagraph><subparagraph id="HC7B2BCC58D8E48C595A5B84A1D19F8B9"><enum>(G)</enum><header>Recordkeeping</header><text>The
Corporation, in consultation with the Federal Reserve Board, may prescribe
regulations requiring that the covered financial company maintain such records
with respect to qualified financial contracts (including market valuations) as
the Corporation determines to be necessary or appropriate in order to assist
the receiver of the covered financial company in being able to exercise its
rights and fulfill its obligations under this paragraph or paragraph (9) or
(10).</text>
</subparagraph></paragraph><paragraph id="H6849846B9A224560A24756420ADEA448"><enum>(9)</enum><header>Transfer of
qualified financial contracts</header>
<subparagraph id="H5F42BA1DB203491584640E3DCF9C5E8E"><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 receiver for such covered financial company shall either—</text>
<clause id="H39707640A43C49BB9E5DBA1C71E79E92"><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="H349E342BB81940F495700D237BD677AE"><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="H2EBDE935E4A940C4A42BF5BA82381FA2"><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="HB484F661B03A451D934CC5CD65E55E1A"><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="HFE1753AC8F3B42E8A9FD2BA94F786737"><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="HB53AEA5FC3AE49DABD9E461CE56CDADE"><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="HF3856583332E43EA9551310BCE128E23"><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 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="HF752C997E56B42B5AC3A0AE67D39DA64"><enum>(C)</enum><header>Transfer of
contracts subject to the rules of a clearing organization</header><text>In the
event that a receiver transfers any qualified financial contract and related
claims, property, and credit enhancements pursuant to subparagraph (A)(i) and
such contract is cleared by or subject to the rules of a clearing organization,
the clearing organization shall not be required to accept the transferee as a
member by virtue of the transfer.</text>
</subparagraph><subparagraph id="H1B7A293EEB5342FA92F9F3AB869B6DAC"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph, 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 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>
</subparagraph></paragraph><paragraph id="H3B5F492A240D474793CDF4755311CC1A"><enum>(10)</enum><header>Notification of
transfer</header>
<subparagraph id="HB0933A5576604457AF6BBBFBD8CD06F8"><enum>(A)</enum><header>In
general</header><text>If—</text>
<clause id="H9DDAED4F284A409A8B086AFED23E7A63"><enum>(i)</enum><text>the
receiver for a covered financial company in default or in danger of default
transfers any assets and liabilities of the covered financial company;
and</text>
</clause><clause id="H8200180DDA1B43A78039F7BEF93D33A0"><enum>(ii)</enum><text>the
transfer includes any qualified financial contract,</text>
</clause><continuation-text continuation-text-level="subparagraph">the
receiver shall notify any person who is a party to any such contract of such
transfer by 5:00 p.m. (eastern time) on the business day following the date of
the appointment of the receiver.</continuation-text></subparagraph><subparagraph id="H74E3BFE090F941B68217430A12FACD1B"><enum>(B)</enum><header>Certain rights
not enforceable</header>
<clause id="H0DCF39F7D70B484B91CBAD6EF57E4DDA"><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) of this subsection
solely by reason of or incidental to the appointment under this section of a
receiver for the covered financial company (or the insolvency or financial
condition of the covered financial company for which the receiver has been
appointed)—</text>
<subclause id="HDBD8A58E9A6F419E881E5B08C1EB2C3F"><enum>(I)</enum><text>until 5:00 p.m.
(eastern time) on the business day following the date of the appointment of the
receiver; or</text>
</subclause><subclause id="H148E82584C554CCA9B6CE65D2CB1878C"><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="HE124F6EFEBD8495D82935DE882464353"><enum>(ii)</enum><header>Notice</header><text>For
purposes of this paragraph, the 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 receiver has taken steps
reasonably calculated to provide notice to such person by the time specified in
subparagraph (A).</text>
</clause></subparagraph><subparagraph id="HE219F008DDF34050905B274770859B9C"><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="H81476D366F174418835058ECC6854FFF"><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="HA2F7B55B47084D218AAD27856FDFD1EC"><enum>(11)</enum><header>Disaffirmance
or repudiation of qualified financial contracts</header><text>In exercising the
rights of disaffirmance or repudiation of a receiver with respect to any
qualified financial contract to which a covered financial company is a party,
the receiver for such covered financial shall either—</text>
<subparagraph id="H4BF8E97083CE42D2908EF8B567C39C6E"><enum>(A)</enum><text>disaffirm or
repudiate all qualified financial contracts between—</text>
<clause id="H9EB2DB0FA5404927A199EEBB8FEB1DC6"><enum>(i)</enum><text>any
person or any affiliate of such person; and</text>
</clause><clause id="H7A836DDA4347475C91212CA5F6E69854"><enum>(ii)</enum><text>the
covered financial company in default; or</text>
</clause></subparagraph><subparagraph id="HE968557E9D5C4495A98138B117D6463E"><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="HC011C4D235E748208F7861DE806E5554"><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="H9D9EAF4AE58B46049B86B21CF3F97ED4"><enum>(A)</enum><text>legally
enforceable or perfected security interest in any of the assets of any covered
financial company except where such an interest is taken in contemplation of
the company’s insolvency or with the intent to hinder, delay, or defraud the
company or the creditors of such company; or</text>
</subparagraph><subparagraph id="H06AB0141446C4686823AA55C96A68446"><enum>(B)</enum><text>legally
enforceable interest in customer property.</text>
</subparagraph></paragraph><paragraph id="HB3311230D49D41289BC84E137203A09E"><enum>(13)</enum><header>Authority to
enforce contracts</header>
<subparagraph id="H93AF1D7C52A14B2CAEEF39C81E6E5D60"><enum>(A)</enum><header>In
general</header><text>The receiver may enforce any contract, other than a
director’s or officer’s liability insurance contract or 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 or the appointment
of or the exercise of rights or powers by a receiver.</text>
</subparagraph><subparagraph id="H9CC251226E04485CBA033C3989181E3D"><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 receiver to enforce or recover under a
director’s or officer’s liability insurance contract or financial institution
bond under other applicable law.</text>
</subparagraph><subparagraph id="H26D656F1319A4331A0D741B3423E4297"><enum>(C)</enum><header>Consent
requirement</header>
<clause id="HAB2D04812793418C984F1A4E64A85B73"><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, 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 receiver, as appropriate, of the covered
financial company during the 90-day period beginning on the date of the
appointment of the receiver, as applicable.</text>
</clause><clause id="H9918FEEA153A4435BBB0340436139237"><enum>(ii)</enum><header>Certain
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 receiver to fail to comply with otherwise enforceable provisions
of such contract.</text>
</clause></subparagraph></paragraph><paragraph id="HBFE622AEEB524EAB84DCB5209638BF67"><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="H6208B178469D497F96993DE98F23AAC0"><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="H0747E4DE0B7B46B9BBB7512349568571"><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="HAB955531DE404F44BD31B418F1A55D44"><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, but not limited, to 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></subsection><subsection id="H9369B2515636481487BBA93F29DF2FB5"><enum>(d)</enum><header>Valuation of
claims in default</header>
<paragraph id="H7B6DB99643B04BC781078D958FE1E345"><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 which the Corporation determines
to utilize with respect to a covered financial company, including transactions
authorized under subsection (h), this subsection shall govern the rights of the
creditors of such covered financial company.</text>
</paragraph><paragraph id="H08FB929A820A4674B70E216DF7A17B56"><enum>(2)</enum><header>Maximum
liability</header><text>The maximum liability of the Corporation, acting as
receiver or in any other capacity, to any person having a claim against the
receiver or the covered financial company for which such receiver is appointed
shall equal the amount such claimant would have received if—</text>
<subparagraph id="HD3D1A6949EE2470AA0339BC77CBEF56B"><enum>(A)</enum><text>a determination
had not been made under section 1603(b) with respect to the covered financial
company; and</text>
</subparagraph><subparagraph id="HAF5A329B383B4056A6706E46149BFD9F"><enum>(B)</enum><text>the covered
financial company had been liquidated under title 11, United States Code, or
any case related to title 11, United States Code (including a case initiated by
the Securities Investor Protection Corporation with respect to a financial
company subject to the Securities Investor Protection Act of 1970), or any
State insolvency law.</text>
</subparagraph></paragraph><paragraph id="H0C9873A6CB084F7F923CF780C95C6667"><enum>(3)</enum><header>Additional
payments authorized</header>
<subparagraph id="HBEBBC191FA744591AFD1F816EF2D6116"><enum>(A)</enum><header>In
general</header><text>The Corporation may, as receiver and with the approval of
the Secretary, make additional payments or credit additional amounts to or with
respect to or for the account of any claimant or category of claimants of a
covered financial company if the Corporation determines that such payments or
credits are necessary or appropriate to—</text>
<clause id="HB32E9B5DACD44A48B5E4F03427093628"><enum>(i)</enum><text>minimize losses to
the receiver from the resolution of the covered financial company under this
section; or</text>
</clause><clause id="HF93DF496DB4140CEB1C10B8FDA85995B"><enum>(ii)</enum><text>prevent or
mitigate serious adverse effects to financial stability or the United States
economy.</text>
</clause></subparagraph><subparagraph id="H94B626F1C67A41EDAC36BBF0E4F5F012"><enum>(B)</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="H46C4CC84BE90474F871C61A850704891"><enum>(e)</enum><header>Limitation on
court action</header><text>Except as provided in this section or at the request
of the receiver appointed for a covered financial company, no court may take
any action to restrain or affect the exercise of powers or functions of the
receiver hereunder.</text>
</subsection><subsection id="HC2073BB5D2D84C0BA4EEBB711DE5C6D2"><enum>(f)</enum><header>Liability of
directors and officers</header>
<paragraph id="H4B6B9D1215E548EEABC1D2CFC49C2178"><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="H91373652633048CF914743C64F6DD05D"><enum>(A)</enum><text>acting as receiver
of such covered financial company;</text>
</subparagraph><subparagraph id="H6D3F4EEF7FD44BE78B404BD30F8EAF69"><enum>(B)</enum><text>acting based upon
a suit, claim, or cause of action purchased from, assigned by, or otherwise
conveyed by such receiver; or</text>
</subparagraph><subparagraph id="H22D65D54AD484BE8B74F690B1D8C8BF9"><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 section 1604.</text>
</subparagraph></paragraph><paragraph id="H735A7E83B501481EA4C528445477668F"><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="H115F5BFA018D4D3D9A8AA990BAE16622"><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="HC1AA5F66D3294F21B4DEE235C4490EBA"><enum>(g)</enum><header>Damages</header><text>In
any proceeding related to any claim against a covered financial company’s
director, officer, employee, agent, attorney, accountant, appraiser, 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 covered financial company’s assets shall
include principal losses and appropriate interest.</text>
</subsection><subsection id="H3198EC0036CA422BA685E41DDD26C9D0"><enum>(h)</enum><header>Bridge financial
companies</header>
<paragraph id="H3AE9A8D3FA6D43388AD97B90960D89BB"><enum>(1)</enum><header>Organization</header>
<subparagraph id="HF9B3BD2A70F243FF8075691E73990444"><enum>(A)</enum><header>Purpose</header><text>The
Corporation, as receiver of one or more covered financial companies may
organize one or more bridge financial companies in accordance with this
subsection.</text>
</subparagraph><subparagraph id="H2CF96609897E4A7FBD311D4DA3830E61"><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="H4DE502A0346F417ABF0452A88E683FC8"><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="H1408EAEE4F41465B9A7BA3F76B0293F9"><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="H4F04D0D2AFD749069C05F5006B1016E3"><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="HDF7E4975DB4F4C1F85748CAC330988D7"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="HB4B9B8ECC2974C08802939A03FF5AE5E"><enum>(A)</enum><header>Establishment</header><text>If
the Corporation is appointed as receiver for a covered financial company, the
Corporation 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="H87597179513E482E8D6078747DAA4146"><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="H18E0E10AAFBD46DA951A07DAC549A0AE"><enum>(C)</enum><header>Articles of
association</header><text>The articles of association and organization
certificate of a bridge financial 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="H5FE400A95307499999FE673C2C9427CD"><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="H3F4EC5C12EE14F4C881D3D905FFA4AFD"><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="HD56D8585ADAD44A4BB9451DC54595605"><enum>(ii)</enum><text>provide for, and
establish the terms and conditions governing, the management (including, but
not limited to, the bylaws and the number of directors of the board of
directors) and operations of the bridge financial company.</text>
</clause></subparagraph><subparagraph id="HC752CC84FB1A4C9DB73AAD21C09A287A"><enum>(E)</enum><header>Transfer of
rights and privileges of covered financial company</header>
<clause id="H6F475A98EAD54617BE481568DAF3FE0A"><enum>(i)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal law or the
law of any State, 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="HEAC9F6239D704639AAC37709093DA613"><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="H4CD7416531C04813BE68F70DF653B937"><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 as 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="H24EA5347888043E6AF7241A0823A9519"><enum>(G)</enum><header>Capital</header>
<clause id="H7120137E500F4EB4A1777DD17EA065B5"><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="H447DB0B0648047CFB7F01067B2DDAC31"><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="H19D682C8296C471D9C3BD43101586CE4"><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></subparagraph></paragraph><paragraph id="HB13697DEBFD24FEAA9935D16BEAC04B1"><enum>(3)</enum><header>Interests in and
assets and obligations of covered financial
company</header><text>Notwithstanding paragraphs (1) or (2) or any other
provision of law—</text>
<subparagraph id="HC54FE6731B8949DEBC496831BD861AE4"><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="HB2BED7BD1D534D07875C1AA3CC00B58B"><enum>(B)</enum><text>a bridge financial
company shall not assume, acquire, or succeed to any obligation that a covered
financial company for which a receiver has been appointed 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="H70E83FA108C149D09B55FD357B65D6A1"><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="HBBF7A6D0F0E148119E5B6A09AE85530F"><enum>(5)</enum><header>Transfer of
assets and liabilities</header>
<subparagraph id="HFBF4FD65DCC748CFBECA8A5E0AA40CCD"><enum>(A)</enum><header>Transfer of
assets and liabilities</header><text>The Corporation, as receiver, 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)(B).</text>
</subparagraph><subparagraph id="H56F94696AF8D4771B1861D3C7A48465F"><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)(B).</text>
</subparagraph><subparagraph id="HFBE6020D682D40318E4527A04095984A"><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="HDAE0EBC43AE64F0489ADD67D235B851D"><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="H82BA237ADE5E43CCB423E5DA7E747EEC"><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 actions (including making payments) that do not comply with this
subparagraph, if—</text>
<clause id="H6A5620CED14F4412B9EC2B778013146B"><enum>(i)</enum><text>the
Corporation determines that such actions are necessary to maximize the value of
the assets of the covered financial company, to maximize the present value
return from the sale or other disposition of the assets of the covered
financial company, to minimize the amount of any loss realized upon the sale or
other disposition of the assets of the covered financial company, or to contain
or address serious adverse effects to financial stability or the U.S. economy;
and</text>
</clause><clause id="HE553EB9FB3FA4A20999E41F715FA8FDD"><enum>(ii)</enum><text>all
creditors that are similarly situated under subsection (b)(1) receive not less
than the amount provided in subsection (d)(2).</text>
</clause></subparagraph><subparagraph id="H9A1E447B2934409D9798A79A91B56686"><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="HDFBA163CE7004212BCF6FE2CE4C47589"><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 up to 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="H8813D5F75D524D43A46E67DE742B47A2"><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 is in writing and executed by an authorized officer or representative
of the covered financial company.</text>
</paragraph><paragraph id="HC4BD3765E62B42D4853B1C323EC94D7A"><enum>(8)</enum><header>No federal
status</header>
<subparagraph id="HC14471B2C98649D4B2DF015BB031694D"><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="HB822EB00C30C4209BCFF48EBF4331352"><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="H16D4FD80C6A44B18B07B6C5B8D138563"><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="H562955C8FD6A491981E368EA35742D7E"><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="H27F7C5B141654FB093851763F096A1ED"><enum>(9)</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="H53D0DDCB9F47474E80517B1217289141"><enum>(10)</enum><header>Federal agency
approval; antitrust review</header>
<subparagraph id="H97A3D540D3B44623B06753C6B1AB799A"><enum>(A)</enum><header>In
general</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 filing is required under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 with the Department of Justice or the Federal Trade
Commission, the waiting period shall expire not later than the 30th day
following such filing notwithstanding any other provision of Federal law or any
attempt by any Federal agency to extend such waiting period, and no further
request for information by any Federal agency shall be permitted.</text>
</subparagraph><subparagraph id="HC99DB06E1EC04DF689E11A5A0F44B0C1"><enum>(B)</enum><header>Emergency</header><text>If
the Secretary, in consultation with the Chairman of the Federal Reserve Board,
has found that the Corporation must act immediately to prevent the probable
failure of the covered financial company involved, the approvals and filings
referred to in subparagraph (A) shall not be required and the transaction may
be consummated immediately by the Corporation.</text>
</subparagraph></paragraph><paragraph id="H628EFCE853404504A00367CFDCE4A72F"><enum>(11)</enum><header>Duration of
bridge financial company</header><text>Subject to paragraphs (12), (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 it was granted a charter. The
Corporation may, in its discretion, extend the status of the bridge financial
company as such for 3 additional 1-year periods.</text>
</paragraph><paragraph id="HDDF93E2165414B89AD852DE58E55596B"><enum>(12)</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="H7134DE8570AD4DC79F72660912870DA1"><enum>(A)</enum><text>the merger or
consolidation of the bridge financial company with a company that is not a
bridge financial company;</text>
</subparagraph><subparagraph id="HD9889C1380694468B76289BECA67909F"><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="HDE33F31FF0E44B5182EC7397D1433E91"><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="HDB8CBFFF5A0744C7BC7E0B8C3B85046C"><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="H20EB19A81D8C4341BFF39C62D7FBF09C"><enum>(E)</enum><text>the expiration of
the period provided in paragraph (11), or the earlier dissolution of the bridge
financial company as provided in paragraph (14).</text>
</subparagraph></paragraph><paragraph id="HFB5284EAEB58432FADFEDF10049AA1C6"><enum>(13)</enum><header>Effect of
termination events</header>
<subparagraph id="HD9F79238E8DE4829AA3648225B6CDCCC"><enum>(A)</enum><header>Merger or
consolidation</header><text>A merger or consolidation as provided in paragraph
(12)(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="HEBD1EC2EE3E84D579535EF89A0CB01C5"><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 (12)(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 State or Federal 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 State or Federal 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="H2C656E20E3E8458092DF4B6653E9E3AB"><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 (12)(C), the
company shall have all of the rights, powers, and privileges under its
constituent documents and applicable State or Federal 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 State or Federal 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="H3FC304AB7137443C8CF00E8111C21ADF"><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 (12)(D), at the election of the Corporation the bridge
financial company may retain its status as such for the period provided in
paragraph (11) or may be dissolved at the election of the Corporation.</text>
</subparagraph><subparagraph id="H839627C0C9FC4DE1B120BB4F7A36B79A"><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 (12), 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="H0ED190F21DDE4902B992C087C677E9EC"><enum>(14)</enum><header>Dissolution of
bridge financial company</header>
<subparagraph id="H60350515F3304AE5B0EAE0A210CF0746"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of State or Federal
law, if a bridge financial company’s status as such has not previously been
terminated by the occurrence of an event specified in subparagraph (A), (B),
(C), or (D) of paragraph (12)—</text>
<clause id="H4D2005DCE65E47ADAC2F9CD9B6DE2B21"><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="H3E9CAB0285974AB8B6285DE282F84E9C"><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 the
bridge financial company was chartered, or any extension thereof, as provided
in paragraph (11).</text>
</clause></subparagraph><subparagraph id="HD1B687180F824E7CBA1FA545D6137A63"><enum>(B)</enum><header>Procedures</header><text>The
Corporation shall remain the receiver of a bridge financial company for the
purpose of dissolving the bridge financial company. The Corporation as such
receiver 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. 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 a receiver of a covered financial company 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="HBD2C4FD54A204ACD9AC17336063E460F"><enum>(15)</enum><header>Authority to
obtain credit</header>
<subparagraph id="H8F16E169EDA94AED91CDBB3AA7770A4D"><enum>(A)</enum><header>In
general</header><text>A bridge financial company may obtain unsecured credit
and issue unsecured debt.</text>
</subparagraph><subparagraph id="H6D2CA5C6B0BA4E5D85CAE255F0EC83FB"><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="H0AD1E47E5EFB4CEFA9787D05DA95AEC2"><enum>(i)</enum><text display-inline="yes-display-inline">with priority over any or all of the
obligations of the bridge financial company;</text>
</clause><clause id="HF93BF8C89A6C473087967A88071EBB89"><enum>(ii)</enum><text display-inline="yes-display-inline">secured by a lien on property of the bridge
financial company that is not otherwise subject to a lien; or</text>
</clause><clause id="H29428DD7794C4D1FA4A92BE5C57E1BCF"><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="HFF85C10A9F244D68A8F4892D96026E67"><enum>(C)</enum><header>Limitations</header>
<clause id="HF5AB76476FAE4FF6BE134ACC834B8771"><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="H97A1645802174313A257280B82C81D48"><enum>(I)</enum><text>the bridge
financial company is unable to otherwise obtain such credit or issue such debt;
and</text>
</subclause><subclause id="H6AAB0DB1D3B345A590457E22FAB0D603"><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></subparagraph><subparagraph id="HABB23F8DC0434F4A8D106BDFB15C6F05"><enum>(D)</enum><header>Burden of
proof</header><text>In any hearing under this subsection, the Corporation has
the burden of proof on the issue of adequate protection.</text>
</subparagraph></paragraph><paragraph id="H74394B44D55449518C650B276BAC551A"><enum>(16)</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="HBA9B96414EC24BC1AA31BF5C8D21F979"><enum>(i)</enum><header>Sharing
records</header><text>Whenever the Corporation has been appointed as receiver
for a covered financial company, the Federal Reserve Board and the company’s
primary appropriate regulatory agency, if any, shall each make all records
relating to the company available to the receiver which may be used by the
receiver in any manner the receiver determines to be appropriate.</text>
</subsection><subsection id="HAA79427295424B0690D75347D10E56F7"><enum>(j)</enum><header>Expedited
procedures for certain claims</header>
<paragraph id="H37022628A6A04BC7ACB22ACB59D144A5"><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 covered financial company’s director, officer, employee, agent, attorney,
accountant, or appraiser 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="H5C1763D02E374E9AAB84B0B4E7C76D92"><enum>(2)</enum><header>Scheduling</header><text>A
court of the United States shall expedite the consideration of any case brought
by the Corporation against a covered financial company’s director, officer,
employee, agent, attorney, accountant, or appraiser 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="H75784C9A719A4E2C9687B21432B22070"><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="HADA673743AE344C99703CC575738B8A2"><enum>(k)</enum><header>Foreign
investigations</header><text>The Corporation, as receiver of 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="H7773A09624F6463BBAF3383D6B564E4C"><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="HCF11747765654ECCB68B0CD0F3879232"><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="HCAC8B8D96B4844E6B0CE4DA7F8352605"><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="H77ED564855FF4240994E59FEBF3F760C"><enum>(m)</enum><header>Liquidation of
certain covered financial companies or bridge financial
companies</header><text>Notwithstanding any other provision of law (other than
a conflicting provision of this section), 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>
<paragraph id="HF779A249D76D4CB486B1C2AA68CF4129"><enum>(1)</enum><text>in the case of any
covered financial company or bridge financial company that is or has a
subsidiary that is a stockbroker (as that term is defined in section 101 of
title 11 of the United States Code) but is not a member of the Securities
Investor Protection Corporation, apply the provisions of subchapter III of
chapter 7 of title 11 of the United States Code in respect of the distribution
to any <quote>customer</quote> of all <quote>customer name securities</quote>
and <quote>customer property</quote> (as such terms are defined in section 741
of such title 11) as if such covered financial company or bridge financial
company were a debtor for purposes of such subchapter; or</text>
</paragraph><paragraph id="H2958A1FD33FA4F27BA8D97A3E2DC1317"><enum>(2)</enum><text>in the case of any
covered financial company or bridge financial company that is a commodity
broker (as that term is defined in section 101 of title 11 of the United States
Code), apply the provisions of subchapter IV of chapter 7 of title 11 of the
United States Code in respect of the distribution to any
<quote>customer</quote> of all <quote>customer property</quote> (as such terms
are defined in section 761 of such title 11) as if such covered financial
company or bridge financial company were a debtor for purposes of such
subchapter.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H3A4C4F62B46E42DAAEBF6C143B0E6F73"><enum>(n)</enum><header>Systemic
dissolution fund</header><text></text>
<paragraph id="H4B71277E158A4EDA86237A1320EBFC22"><enum>(1)</enum><header>Establishment
and purpose</header>
<subparagraph id="HEF83ACFD6D5D4E23AB4730A14F41BF75"><enum>(A)</enum><header>In
general</header><text>There is established in the Treasury a separate fund to
be known as the <quote>Systemic Dissolution Fund</quote>—</text>
<clause id="H73CE802A7BB749BFB5ABC34DFB519C63"><enum>(i)</enum><text>to
facilitate and provide for the orderly and complete dissolution of any failed
financial company or companies that pose a systemic threat to the financial
markets or economy, as determined under 1603(b); and</text>
</clause><clause id="H3EA455E1888F490D98565C59DB0F033F"><enum>(ii)</enum><text>to
ensure that any taxpayer funds utilized to facilitate such liquidations are
fully repaid from assessments levied on financial companies that have assets of
$50,000,000,000, adjusted for inflation, or more.</text>
</clause></subparagraph><subparagraph id="H3427F8FDC64D4339AAC10BC4C5312D20"><enum>(B)</enum><header>Adjustment of
threshold</header><text>The threshold referred to in subparagraph (A)(ii) shall
be adjusted on an annual basis, based on the growth of assets owned or managed
by financial companies (as defined in section 1602(9)).</text>
</subparagraph></paragraph><paragraph id="H1509B2B4980C454EB0E6992CFD8D1E1E"><enum>(2)</enum><header>Authority</header><text>The
Systemic Dissolution Fund shall be administered by the Corporation, which shall
have exclusive authority to—</text>
<subparagraph id="HA5E590BFF2114490AB140A18C02F3121"><enum>(A)</enum><text>impose assessments
on covered financial companies in accordance with paragraphs (6) through
(8);</text>
</subparagraph><subparagraph id="HB4A9458A87AA4A708E8BC2D51C361D6C"><enum>(B)</enum><text>maintain and
administer the Fund in a manner so as to make clear to the general public that
such Fund is unrelated to any other Fund maintained and administered by the
Corporation, including the Deposit Insurance Fund;</text>
</subparagraph><subparagraph id="H5F21C78BA6E34B28B15D0DFA4CD2BCF0"><enum>(C)</enum><text>utilize the Fund
to facilitate the dissolution of a covered financial company (as defined by
section 1602(5)) as provided in paragraph (3), or take such other actions as
are authorized by this subtitle;</text>
</subparagraph><subparagraph id="H847079B67EA84A7DA6BBEAD9DEFC0776"><enum>(D)</enum><text>invest the Fund in
accordance with section 13(a) of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="HB5ACB777B40C4FED9A11210CCEC73863"><enum>(E)</enum><text>exercise borrowing
authority as prescribed in subsection (o).</text>
</subparagraph></paragraph><paragraph id="HDA376125677749519CCBB3DC6B7F5E1C"><enum>(3)</enum><header>Uses</header><text></text>
<subparagraph id="HE4C79948792145F09D752235D7161AB7"><enum>(A)</enum><text>The Fund shall be
available to the Corporation for use with respect to the dissolution of a
covered financial company to—</text>
<clause id="H4CD42E085B914873ACC5203D9E6193BE"><enum>(i)</enum><text>cover the costs
incurred by the Corporation, including as receiver, in exercising its rights,
authorities, and powers and fulfilling its obligations and responsibilities
under this section;</text>
</clause><clause id="H4D8EA45121814AB2BB45DB2FB06B4F90"><enum>(ii)</enum><text>repay such funds
in accordance with subsection (o)(6); and</text>
</clause><clause id="H13F7373B15EB4DDE842D410440B949ED"><enum>(iii)</enum><text>cover the costs
of systemic stabilization actions, pursuant to subsections (d) and (f) of
section 1604.</text>
</clause></subparagraph><subparagraph id="H5309636C25D94DD281E9300DB5AD8053"><enum>(B)</enum><text>The Fund shall not
be used in any manner to benefit any officer or director of such company
removed pursuant to section 1604(f)(6).</text>
</subparagraph></paragraph><paragraph id="HFEB1EDD201C44DD0B51C239A4BB27FF4"><enum>(4)</enum><header>Deposits to
fund</header><text>All amounts assessed against a financial company under this
section shall be deposited into the Fund.</text>
</paragraph><paragraph id="HD18B415E1411402AAE931ECC62F1783D"><enum>(5)</enum><header>Size of
fund</header><text>The Corporation shall, by rule, establish the minimum size
of the Fund consistent with subparagraphs (C) and (D) of paragraph (6).</text>
</paragraph><paragraph id="HCC76E86215F048399156D999F2B0CE3E"><enum>(6)</enum><header>Assessments</header><text></text>
<subparagraph id="H1054EE529B5948C09D4E13963395B00F"><enum>(A)</enum><header>Assessments to
maintain fund</header><text>The Corporation shall impose risk-based assessments
on financial companies in such amount and manner and subject to such terms and
conditions that the Corporation determines, by regulation and in consultation
with the Council, are necessary for the amount in the Fund to at least equal
the minimum size established pursuant to paragraph (5).</text>
</subparagraph><subparagraph id="H559AE5FDAAF64B53906D699C75314A93"><enum>(B)</enum><header>Assessments to
replenish the fund</header><text>If the Fund falls below the minimum size
established pursuant to paragraph (5), the Corporation shall impose assessments
on financial companies in such amounts and manner and subject to such terms and
conditions as the Corporation determines, by regulation and in consultation
with the Council, are necessary to replenish the fund subject to the
limitations in subparagraph (D).</text>
</subparagraph><subparagraph id="HB359B83A146E4989AC47C3F17558CCB1"><enum>(C)</enum><header>Minimum
assessment threshold</header><text></text>
<clause id="HA8B2DC7E8BD4452A84AD4818C78E26CE"><enum>(i)</enum><header>In
general</header><text>The Corporation shall not assess financial companies with
less than $50,000,000,000, adjusted for inflation, of assets on a consolidated
basis, subject to any differentiation as permitted in paragraph (8) and shall
assess financial companies with $10,000,000,000, adjusted for inflation or more
in assets in accordance with paragraphs (7) and (8).</text>
</clause><clause id="H3EDDF6C427D94C3E90D84B1B5ACDEC3E"><enum>(ii)</enum><header>Hedge
funds</header><text>The Corporation shall not assess financial companies that
manage hedge funds (as defined by the Corporation for the purpose of this
section, in consultation with the Securities and Exchange Commission) with less
than $10,000,000,000, adjusted for inflation, of assets, under management on a
consolidated basis, subject to any differentiation as permitted in paragraph
(8) and shall assess any financial companies that manage hedge funds with
$10,000,000,000 or more of assets under management in accordance with
paragraphs (7) and (8).</text>
</clause></subparagraph><subparagraph id="HC4C4F69EBD2B416393DA146F680D8ADF"><enum>(D)</enum><header>Maximum size of
fund via assessments</header>
<clause id="H3AA4ACF817A148A19DE4653C9BCEE6D3"><enum>(i)</enum><header>In
general</header><text>The Corporation shall suspend assessments on financial
companies on the day after the date on which the total of the assessments,
excluding interest or other earnings from investments made pursuant to
paragraph (2)(D), equals $150,000,000,000.</text>
</clause><clause id="HFCC3634582CE46FC8EDCE8FB4ADF7376"><enum>(ii)</enum><header>Exceptions</header><text>Any
suspension of assessments under clause (i)—</text>
<subclause id="HB645C781577540F281035D6F3E714DCC"><enum>(I)</enum><text>may be set aside
if the Fund falls below $150,000,000,000; and</text>
</subclause><subclause id="HB61472E21688400598566356B2FD3449"><enum>(II)</enum><text>shall be set
aside if the Fund falls below the minimum level established in subparagraph
(C).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HEC4936E1F0DA49CE8323BE3381403E6F"><enum>(7)</enum><header>Factors</header><text>The
Corporation, in consultation with the Council shall establish a risk matrix to
be used in establishing assessments that takes into account—</text>
<subparagraph id="H1A4DB409B1F947ABB1BD4674D80AAC86"><enum>(A)</enum><text>the actual or
expected risk of losses to the Fund;</text>
</subparagraph><subparagraph id="H29ED2EE36BEC427F83E9F6C8FD6370BD"><enum>(B)</enum><text>economic
conditions generally affecting financial companies so as to allow assessments
and the Fund to increase during more favorable economic conditions and to
decrease during less favorable economic conditions;</text>
</subparagraph><subparagraph id="H066D7C6640CC41D6848CAD7D3F4BB904"><enum>(C)</enum><text>any assessments
imposed on a financial company or an affiliate of a financial company
that—</text>
<clause id="H7FACF906A83B42D3B1193692176F94E5"><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="H7934A1C009334C20A341CAC43105C080"><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="H0B6E1A8DBCC24B05BFE54671A053E13C"><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="H063D483BC03A4701B95D1E3AA9978C64"><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="H7F90E8664219452A81F82D73AE1E32B1"><enum>(D)</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
dissolution of a financial company under this title, including—</text>
<clause id="HD9279E2E782E484B95BD03775DBA3C81"><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="H36291BAA196540589E6D695BB112361F"><enum>(ii)</enum><text>the
activities of the financial company and its affiliates;</text>
</clause><clause id="H7FC4D28E5DFD4F0A98DAF1467684D279"><enum>(iii)</enum><text>the relevant
market share of the financial company and its affiliates;</text>
</clause><clause id="H13005EED0D04421FACA98017F65F29B2"><enum>(iv)</enum><text>the
extent to which the financial company is leveraged;</text>
</clause><clause id="HCA179CDCBFAC4527B62DA10307E2280D"><enum>(v)</enum><text>the
potential exposure to sudden calls on liquidity precipitated by economic
distress;</text>
</clause><clause id="HABE08B5BE0134C839CB6038D93AC45BC"><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="HA97BADFA6DB8475FA40685FAF7A89D8C"><enum>(vii)</enum><text>the amount,
maturity, volatility, and stability of the company’s liabilities, 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="HCC09B28FD8CA42B6AA9EABC9CF8BED53"><enum>(viii)</enum><text>the stability
and variety of the company’s sources of funding;</text>
</clause><clause id="H1F174156B9BE4CD29503B3CBCE3A9CE2"><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="H8B72BD76A71F4D1498CEFCAB8422B7D6"><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="H605877398AAE49D7BDEE5E68AEEBAA0F"><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;
and</text>
</clause></subparagraph><subparagraph id="HE0F2987A49C440E48CDEEF32332FE417"><enum>(E)</enum><text>such other factors
as the Corporation, in consultation with the Council, may determine to be
appropriate.</text>
</subparagraph></paragraph><paragraph id="H0456F747371F4136A1AC39E99DF11AF0"><enum>(8)</enum><header>Requirement for
equitable treatment in assessments</header><text>In establishing the assessment
system for the Fund, the Corporation, by regulation and in consultation with
the Council, shall differentiate among financial companies based on complexity
of operations or organization, interconnectedness, size, direct or indirect
activities, and any other factors the Corporation or the Council may deem
appropriate to ensure that the assessments charged equitably reflect the risk
posed to the Fund by particular classes of financial companies.</text>
</paragraph><paragraph id="HF1D0D9B00AD4472E921716C0FEC90ABB"><enum>(9)</enum><header>Minimum comment
period</header><text>In order to ensure sufficient opportunity for public and
congressional review and evaluation of any assessment system, any proposed
regulations regarding the implementation of the assessment system under this
subtitle shall provide an opportunity for public comment during a period of not
less than 60 days.</text>
</paragraph></subsection><subsection id="H167BBB7F8A084B47BADD719CE6D7328D"><enum>(o)</enum><header>Borrowing
authority</header><text></text>
<paragraph id="HCF033378947D491D8DB7B2B696C2C77C"><enum>(1)</enum><header>Borrowing from
treasury</header>
<subparagraph id="HC5FE7E202F2B470BA6ECC16178F1828C"><enum>(A)</enum><header>In
general</header><text>Subject to paragraphs (3), (4), and (5), the Corporation
may borrow from the Treasury, and the Secretary of the Treasury is authorized
to lend to the Corporation on such terms as may be fixed by the Corporation and
the Secretary, such funds as in the judgment of the Board of Directors of the
Corporation are required, in addition to the funds available in the Systemic
Dissolution Fund, to permit the orderly dissolution of 1 or more covered
systemically significant financial companies, covered affiliates, or covered
subsidiaries under this title.</text>
</subparagraph><subparagraph id="H25CA2387A9A34BF0980F2CDE7F6FD6CC"><enum>(B)</enum><header>Rate of
interest</header><text>The rate of interest to be charged in connection with
any loan made pursuant to this subsection shall not be less than an amount
determined by the Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the United States of
comparable maturities.</text>
</subparagraph></paragraph><paragraph id="H5EE4F3872D6D484980FA6D966149D7AA"><enum>(2)</enum><header>Public debt
issuances</header><text>For the purposes described in subsection (1), the
Secretary of the Treasury may use as a public-debt transaction the proceeds of
the sale of any securities hereafter issued under chapter 31 of title 31, and
the purposes for which securities may be issued under chapter 31 of title 31
are extended to include such loans. All loans and repayments under this
subsection shall be treated as public-debt transactions of the United
States.</text>
</paragraph><paragraph id="H0D066C2A916743378705C00F74E6DADC"><enum>(3)</enum><header>Borrowing
authority when fund assets are less than $150,000,000,000</header><text></text>
<subparagraph id="HAB51F4F463534A009976257F3A43865E"><enum>(A)</enum><text>Subject to
paragraph (B), the borrowing authority granted in paragraph (1) shall be
available to the Corporation where—</text>
<clause id="HFEEDA738366F43A597D3170B4E003C2A"><enum>(i)</enum><text>the
value of the Fund is less than $150,000,000,000;</text>
</clause><clause id="H041E02144B7B43CB8743051296EBDC4D"><enum>(ii)</enum><text>the
Corporation determines that the immediate dissolution of a financial company or
financial companies requires more funds than are available in the Fund;
and</text>
</clause><clause id="HC85A7DC7BBF4471C9E08C409ECA69FAC"><enum>(iii)</enum><text>the Corporation
has provided a specific plan for repayment under paragraph (7)(A).</text>
</clause></subparagraph><subparagraph id="H0CA5BB913E20472CBA46CC76BAAE393D"><enum>(B)</enum><text>The Corporation
may borrow, and the Secretary may lend, any amount of funds that, when added to
the amount available in the Fund on the date the Corporation makes a request to
borrow funds, would not exceed $150,000,000,000.</text>
</subparagraph><subparagraph id="H09EE862A4E394A868B0F6D7B10DBD975"><enum>(C)</enum><text>For purposes of
paragraph (1), the Corporation’s total debt may not exceed $150,000,000,000
(not including any funds borrowed pursuant to subsection (s)).</text>
</subparagraph></paragraph><paragraph id="H9E26AD63EEC44E88879756A6FB91AFDB"><enum>(4)</enum><header>Additional
borrowing authority</header><text></text>
<subparagraph id="H0BE965D9CC6141F39A4397D89964E42D"><enum>(A)</enum><text>If at any time the
Corporation anticipates that the dissolution of any financial company or
financial companies will require funds in excess of $150,000,000,000—</text>
<clause id="H7E3FD96E1B0543938CF17254E45C754D"><enum>(i)</enum><text>the
Corporation shall submit to the Secretary and the President a written request
for additional borrowing authority subject to the limitation in subparagraph
(5), which shall be accompanied by a certification indicating the anticipated
amount needed, the basis on which such amount was determined, and any such
information as the Secretary may deem necessary; and</text>
</clause><clause id="H96AC634C37A54850BD3795A4D531C742"><enum>(ii)</enum><text>the
President shall transmit a request to the House of Representatives and the
Senate requesting the additional borrowing authority, which shall include the
certification referred to in clause (i) and which includes a repayment schedule
as outlined in paragraph (7).</text>
</clause></subparagraph><subparagraph id="HCB2A2876F5894604926A5C77385CFA56"><enum>(B)</enum><text>Any request for
borrowing authority under paragraph (A) shall be effective only if approved by
affirmative vote of the House of Representatives and the Senate in accordance
with subsection (s).</text>
</subparagraph></paragraph><paragraph id="HDAE16AFE230C4BE7A1161351E6C0CB72"><enum>(5)</enum><header>Limitations on
additional borrowing authority</header><text></text>
<subparagraph id="H57B0D216A24C472289533AB3A809DD06"><enum>(A)</enum><text>No request for
borrowing authority is permitted under paragraph (4) unless the President, in
consultation with the Council, certifies to the House of Representatives and
the Senate that the borrowing authority is necessary to avoid or mitigate an
imminent financial emergency.</text>
</subparagraph><subparagraph id="H18C0A4ED9BCC4AECB88DBA1FAE1E0019"><enum>(B)</enum><text>The amount of
borrowing authority requested under subparagraph (A)(i) may not exceed
$50,000,000,000.</text>
</subparagraph></paragraph><paragraph id="HE141CE9514814B8EAC9314B452D7B9BD"><enum>(6)</enum><header>Proceeds from
liquidation, repayment of funds</header><text></text>
<subparagraph id="HAE669F32D98043A39880A93A33040156"><enum>(A)</enum><header>In
general</header><text>The Corporation shall take such measures as may be
appropriate to maximize the amount of funds from any dissolution that may be
available for repayment under subparagraph (B) consistent with systemic
concerns.</text>
</subparagraph><subparagraph id="H71B8613AA56146CF9F99473CD8782A5E"><enum>(B)</enum><header>Repayment
priority</header><text>Amounts realized from the dissolution of any financial
company under this subtitle that are not otherwise utilized by the Corporation
to dissolve a financial company under subsection (n)(3)(A) shall be
paid—</text>
<clause id="HDA3F3147E05B48858D255CFB635B52BE"><enum>(i)</enum><text>first, to repay
any costs incurred in exercising the borrowing authority granted in paragraph
(1); and</text>
</clause><clause id="HDE90B2135D484F919C5656DD9B169888"><enum>(ii)</enum><text>second, to
recapitalize the Fund to such level as the Corporation deems necessary, but not
to exceed $150,000,000,000.</text>
</clause></subparagraph></paragraph><paragraph id="H72412A188E3B4D8187E14B57CE65DF7A"><enum>(7)</enum><header>Repayment plan
and schedules required for any borrowing</header><text></text>
<subparagraph id="H43322B70A47F487EBC7E4EED5B0B24E7"><enum>(A)</enum><header>In
general</header><text>No amount may be provided by the Secretary of the
Treasury to the Corporation under paragraph (1) unless an agreement is in
effect between the Secretary and the Corporation which—</text>
<clause id="H4FF2A59F0A934EF184D2A256BCAC3FBA"><enum>(i)</enum><text>provides a
specific plan and schedule for assessments under (n)(6) to achieve the
repayment of the outstanding amount of any borrowing under such subsection;
and</text>
</clause><clause id="H9B88186EEF0B47D689CEC064E7583A62"><enum>(ii)</enum><text>demonstrates that
income to the Corporation from assessments under this section will be
sufficient to amortize the outstanding balance within the period established in
the repayment schedule and pay the interest accruing on such balance.</text>
</clause></subparagraph><subparagraph id="HC773E7B552CD42F8BDA5E2963C06A9AD"><enum>(B)</enum><header>Consultation
with and report to congress</header><text>The Secretary of the Treasury and the
Corporation shall—</text>
<clause id="HEEF2296263414172990E137E6EAFB9EC"><enum>(i)</enum><text>consult with the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate on the terms of
any repayment schedule agreement; and</text>
</clause><clause id="HB184BB697E8B4C3DB766E937E39C3829"><enum>(ii)</enum><text>submit a copy of
each repayment schedule agreement to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate before the end of the 30-day period beginning on the date
any amount is provided by the Secretary of the Treasury to the Corporation
under paragraph (1).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H80922FC2721C460D9D12BA39B5231753"><enum>(p)</enum><header>Information
gathering and verification; payments </header>
<paragraph id="HADB316996DC2455984E28033703F51FC"><enum>(1)</enum><header>In
general</header><text>The Corporation may require each financial company to
make available such information as the Corporation may require—</text>
<subparagraph id="H34B9C07739A647B8B21DAAA82F657F83"><enum>(A)</enum><text>for purposes
of—</text>
<clause id="H009146329B14401999552300FCE63C10"><enum>(i)</enum><text>determining the
financial company’s assessment under this section;</text>
</clause><clause id="H257A6EF767E540CDB6498BC593E748C3"><enum>(ii)</enum><text>verifying the
accuracy of information; and</text>
</clause><clause id="H62337854AE2D4A6B86ADCCEBAD3C8F4F"><enum>(iii)</enum><text>preparing for
resolution, including a resolution plan as required by this section; and</text>
</clause></subparagraph><subparagraph id="H56565E359F1F417695F94924B996922F"><enum>(B)</enum><text>for such other
purposes as may be appropriate and necessary to promote the orderly dissolution
of the financial company.</text>
</subparagraph></paragraph><paragraph id="H473D5451EAB745BD8DD0181A554EBFFF"><enum>(2)</enum><header>Use of existing
reports</header><text>The Corporation shall, to the fullest extent possible,
accept—</text>
<subparagraph id="H649FF88E88FA4CC9A53F63037680B168"><enum>(A)</enum><text>reports that a
financial company has provided or been required to provide to other Federal or
State supervisors or to appropriate self-regulatory organizations;</text>
</subparagraph><subparagraph id="HC36FDDA5BC7F48A6A8B78904A62E3979"><enum>(B)</enum><text>information that
is otherwise required to be reported publicly; and</text>
</subparagraph><subparagraph id="H9EF400D43CF441EBB0BD535F0FB448F7"><enum>(C)</enum><text>externally audited
financial statements.</text>
</subparagraph></paragraph><paragraph id="H9EF0C58A922F4AD293D8266684443E67"><enum>(3)</enum><header>Authority for
on-site inspection</header><text>The Corporation may make on-site inspections
of a financial company’s books and records as necessary to carry out the
purposes of this subsection.</text>
</paragraph><paragraph id="HD9B8F2C3FB6D404EAA41B5926E2B917B"><enum>(4)</enum><header>Rulemaking</header><text>The
Corporation may promulgate such rules or regulations as are necessary or
appropriate to implement this subsection.</text>
</paragraph><paragraph id="H915B79063029450FB2456D2F26F30CDF"><enum>(5)</enum><header>Payments of
assessments required </header>
<subparagraph id="HDC41236304FB45E19E7C11E020CBDD02"><enum>(A)</enum><header>In
general</header><text>Any financial company subject to an assessment under this
section shall pay to the Corporation such assessment.</text>
</subparagraph><subparagraph id="H0924FEF9C63044A38784279F32D9D6F3"><enum>(B)</enum><header>Form of
payment</header><text>The payments required under this section shall be made in
such manner and at such time or times as the Corporation, in consultation with
the Council, shall prescribe by regulation.</text>
</subparagraph></paragraph><paragraph id="H6B2A2C1780DE4A8EA26742AEBD147C64"><enum>(6)</enum><header>Penalty for
failure to timely pay assessments</header><text>Any financial company that
fails or refuses to pay any assessment under this section shall be subject to a
penalty under section 18(h) of the Federal Deposit Insurance Act, as if that
financial company were an insured depository institution.</text>
</paragraph></subsection><subsection id="H5F79F99C1E6A48C38CC0D3B387F7E05F"><enum>(q)</enum><header>Assessment
actions</header><text></text>
<paragraph id="HED8A19A18AB94087B8784426FE4715F9"><enum>(1)</enum><header>In
general</header><text>The Corporation, in any court of competent jurisdiction,
shall be entitled to recover from any financial company the amount of any
unpaid assessment lawfully payable by such company.</text>
</paragraph><paragraph id="HFDFC6FD3684A47E3BDBEA7CE14D00205"><enum>(2)</enum><header>Statute of
limitations</header><text>Notwithstanding any other provision in Federal law,
or the law of any State—</text>
<subparagraph id="HB09112F4D41F4AC78B6A3E8F1D64BE39"><enum>(A)</enum><text>any action by a
financial company to recover from the Corporation the overpaid amount of any
assessment shall be brought within 3 years after the date the assessment
payment was due, subject to subparagraph (C);</text>
</subparagraph><subparagraph id="HA3DC9F1A040D4643AD0F890589F6B2F9"><enum>(B)</enum><text>any action by the
Corporation to recover from a financial company the underpaid amount of any
assessment shall be brought within 3 years after the date the assessment
payment was due, subject to subparagraph (C); and</text>
</subparagraph><subparagraph id="H848E449306C54474BFEC4D070AE83628"><enum>(C)</enum><text>if a financial
company has made a false or fraudulent statement with intent to evade any or
all of its assessment, the Corporation shall have until 3 years after the date
of discovery of the false or fraudulent statement in which to bring an action
to recover the underpaid amount.</text>
</subparagraph></paragraph></subsection><subsection id="H56FDC89C14454A6888A13F3C4DC7A6E3"><enum>(r)</enum><header>Requirement to
maintain systemic dissolution fund as separate fund</header><text>The Systemic
Dissolution Fund shall at all times be administered in a manner that is
separate and distinct from the Deposit Insurance Fund, and the Corporation
shall take such actions as may be necessary to ensure that such distinction is
made with respect to internal processes and procedures as well as with regard
to any public information, discussion or other communications involving either
Fund.</text>
</subsection><subsection id="H35960875E188465D8BEA43F2ED02F96C"><enum>(s)</enum><header>Congressional
approval of additional borrowing authority</header><text></text>
<paragraph id="H868128D33E414BB3B63B763158CB4565"><enum>(1)</enum><header>Introduction</header><text>On
the day on which the request of the President is received by the House of
Representatives and the Senate under subsection (o)(4)(A)(ii), a joint
resolution specified in paragraph (5) shall be introduced in the House by the
majority leader and minority leader of the House and in the Senate by the
majority leader and minority leader of the Senate. If either House is not in
session on the day on which such a request is received, the joint resolution
with respect to such request shall be introduced in that House, as provided in
the preceding sentence, on the first day thereafter on which that House is in
session.</text>
</paragraph><paragraph id="HCBC6B93345214464A94AF556F27AC0A8"><enum>(2)</enum><header>Consideration in
the house of representatives</header><text></text>
<subparagraph id="H6690E75AEE5247CF9EA823EDFD48EDC5"><enum>(A)</enum><header>Reporting and
discharge</header><text>Any committee of the House of Representatives to which
a joint resolution introduced under paragraph (1) is referred shall report such
joint resolution to the House not later than 5 calendar days after the
applicable date of introduction of the joint resolution. If a committee fails
to report such joint resolution within that period, the committee shall be
discharged from further consideration of the joint resolution and the joint
resolution shall be referred to the appropriate calendar.</text>
</subparagraph><subparagraph id="H47E092053D13494B97CD8245403A31CF"><enum>(B)</enum><header>Proceeding to
consideration</header><text>After all committees authorized to consider a joint
resolution have reported such joint resolution to the House or have been
discharged from its consideration, it shall be in order, not later than the
sixth day after the applicable date of introduction of the joint resolution, to
move to proceed to consider the joint resolution in the House. Such a motion
shall not be in order after the House has disposed of a motion to proceed on
the joint resolution and shall not be in order if the House has received a
message from the Senate under paragraph (4)(C). The previous question shall be
considered as ordered on the motion to its adoption without intervening motion.
A motion to reconsider the vote by which the motion is disposed of shall not be
in order.</text>
</subparagraph><subparagraph id="H9B50CF482AA24F94BAA2C8EE04F26843"><enum>(C)</enum><header>Consideration</header><text>The
joint resolution shall be considered in the House and shall be considered as
read. All points of order against a joint resolution and against its
consideration are waived. The previous question shall be considered as ordered
on the joint resolution to its passage without intervening motion except two
hours of debate equally divided and controlled by the proponent and an
opponent. A motion to reconsider the vote on passage of a joint resolution
shall not be in order.</text>
</subparagraph></paragraph><paragraph id="H6CF7AA4C7EC54E7E8A030A6DA0977513"><enum>(3)</enum><header>Consideration in
the senate</header><text></text>
<subparagraph id="HF1553993A51345FC9560C7568C83E09D"><enum>(A)</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="H739CE32D9D7A485681A2C7771B3C21B7"><enum>(B)</enum><header>Floor
consideration</header><text></text>
<clause id="H1B539161980D4BF696BF183D11DBD05B"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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 applicable date of introduction in
the Senate and ending on the 6th day after the applicable date of introduction
in the Senate (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="HD17BCB215E884FF4986D013EE225A410"><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="H14F42322E49D482E8A2ED7878C941A01"><enum>(iii)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on a 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="H3F8FAFA273DB435FA183BA9B21565980"><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="HEC3B2EECBD2D44CAB5ACDC801CF56533"><enum>(4)</enum><header>Rules relating
to Senate and House of Representatives</header><text></text>
<subparagraph id="H8D17E677D6D440C9A4AEA6AB10F444B5"><enum>(A)</enum><header>Coordination
with action by other house</header><text>If, before the passage by one House of
a joint resolution of that House, that House receives from the other House a
joint resolution, then the following procedures shall apply:</text>
<clause id="HFAB2A8BE055F4A7BB113BAF834E298EA"><enum>(i)</enum><text>The
joint resolution of the other House shall not be referred to a
committee.</text>
</clause><clause id="H6C1E9C5A81D74BDDAD59DC2AEE316A76"><enum>(ii)</enum><text>With respect to
the joint resolution of the House receiving the resolution, the procedure in
that House shall be the same as if no such joint resolution had been received
from the other House; but the vote on passage shall be on the joint resolution
of the other House.</text>
</clause></subparagraph><subparagraph id="H86214E51362A4C0CA1657D95C9605A6D"><enum>(B)</enum><header>Treatment of
companion measures</header><text>If, following passage of a 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="HC9DBCDFEDEBF48DBAD1D234139119543"><enum>(C)</enum><header>Failure of joint
resolution in the Senate</header>
<clause id="HDA173D57D1A64B5AB6C5949446EA2658"><enum>(i)</enum><text>If,
in the Senate, the motion to proceed to the consideration of the joint
resolution fails on adoption, the Secretary of the Senate shall transmit a
message to that effect to the House of Representatives.</text>
</clause><clause id="HBCE33E63D7A6433AA17A7FEDD11AE6AC"><enum>(ii)</enum><text>If,
in the Senate, the joint resolution fails on passage, the Secretary of the
Senate shall transmit a message to that effect to the House of
Representatives.</text>
</clause></subparagraph><subparagraph id="H4B0AE62FD77B43B4A2F2D259EAB967CF"><enum>(D)</enum><header>Rules of House
of Representatives and Senate</header><text>This paragraph and the preceding
paragraphs are enacted by Congress—</text>
<clause id="H00CEA4062B9E4511AFAB3E94028B99D0"><enum>(i)</enum><text>as
an exercise of the rulemaking power of the Senate and House of Representatives,
respectively, and as such it is deemed a part of the rules of each House,
respectively, but applicable only with respect to the procedure to be followed
in that House 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="H60A02F86C29A4B82859C6D3981E33B8B"><enum>(ii)</enum><text>with full
recognition of the constitutional right of either House to change the rules (so
far as relating to the procedure of that House) at any time, in the same
manner, and to the same extent as in the case of any other rule of that
House.</text>
</clause></subparagraph></paragraph><paragraph id="HFCA47453267B4A49AB6DDF54387999C5"><enum>(5)</enum><header>Definition</header><text>In
this section, the term <quote>joint resolution</quote> means only a joint
resolution—</text>
<subparagraph id="H1710E99F5AD44E07A9E04905ED2D8F87"><enum>(A)</enum><text>which does not
have a preamble;</text>
</subparagraph><subparagraph id="H326D1B2F8D3D4D97AB608F92B0CB3FB2"><enum>(B)</enum><text>the title of which
is as follows: <quote>Joint resolution relating to the approval of request for
borrowing authority under the Financial Stability Improvement Act of
2009.</quote>; and</text>
</subparagraph><subparagraph id="HF5C6C1B30248472BA6586BC76C4775CB"><enum>(C)</enum><text>the sole matter
after the resolving clause of which is as follows: <quote>That the Congress
approves the request for additional borrowing authority transmitted to the
Congress on ___ by the President under section 1609(o)(4)(A)(ii) of the
Financial Stability Improvement Act of 2009.</quote>, the blank space being
filled with the appropriate date.</text>
</subparagraph></paragraph></subsection><subsection id="HE1F16F72319A4A918542A710E146D901"><enum>(t)</enum><header>No federal
status</header>
<paragraph id="HAB5BC53EB11F40D6A7A835405C5B80A9"><enum>(1)</enum><header>Agency
status</header><text>A covered financial company (or any covered subsidiary
thereof) that is placed into receivership is not a department, agency, or
instrumentality of the United States for purposes of statutes that confer
powers on or impose obligations on government entities.</text>
</paragraph><paragraph id="H7F2AAA91492746EA8D638EF2EA4FE353"><enum>(2)</enum><header>Employee
status</header><text>Interim directors, directors, officers, employees, or
agents of a covered financial company that is placed into receivership are not,
solely by virtue of service in any such capacity, officers or employees of the
United States. Any employee of the Corporation, acting as receiver or of any
Federal agency who serves at the request of the receiver as an interim
director, director, officer, employee, or agent of a covered financial company
that is placed into receivership shall not—</text>
<subparagraph id="H182E8BDBB9944723BA55AAD4035D62E5"><enum>(A)</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>
</subparagraph><subparagraph id="H7CF7F32C348645E2AC0668E593151BC6"><enum>(B)</enum><text>receive any salary
or benefits for service in any such capacity with respect to a covered
financial company that is placed into receivership in addition to such salary
or benefits as are obtained through employment with the Corporation or other
Federal agency.</text>
</subparagraph></paragraph></subsection></section><section id="H3EFE93CCE21448B8AB88D590095674CE"><enum>1610.</enum><header>Clarification
of prohibition regarding concealment of assets from receiver or liquidating
agent</header>
<subsection id="H91AF3FB1F00A4D18B41DBAB50A050FFF"><enum>(a)</enum><header>In
general</header><text>Section 1032 of title 18, United States Code, is amended
in paragraph (1) by deleting <quote>or</quote> before <quote>the National
Credit Union Administration Board,</quote> and by inserting immediately
thereafter <quote>or the Corporation, as defined in section 1602 of the
Resolution Authority for Large, Interconnected Financial Companies Act of
2009,</quote>.</text>
</subsection><subsection id="HFB985E0E4831424D9216D383B20FEB65"><enum>(b)</enum><header>Conforming
change</header><text>The heading of section 1032 of title 18, United States
Code, is amended by striking <quote><header-in-text level="section" style="USC">of financial institution</header-in-text></quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="HBAA3223AB054411E936CC73FEB843A95" section-type="subsequent-section"><enum>1611.</enum><header>Office of
Resolution</header>
<subsection id="H3A9428B71E704AA7816587524B5F6237"><enum>(a)</enum><header>Trigger of and
plan for establishment</header>
<paragraph id="H61123B33D475427096FDC7EF467976A0"><enum>(1)</enum><header>Trigger</header><text>If
the Secretary appoints the Corporation as receiver for a financial company
under section 1604, the Inspector General of the Corporation shall, as soon as
possible after such appointment, establish in accordance with this section the
Office of Resolution as an office within the Office of the Inspector General of
the Corporation.</text>
</paragraph><paragraph id="HFF4EB4CC839A42EEBF041728A9FEDB11"><enum>(2)</enum><header>Plan</header><text>The
Inspector General of the Corporation shall, in consultation with the Council of
Inspectors General on Financial Oversight established under section 1702,
formulate and maintain a plan to allow for the timely establishment of an
Office of Resolution in accordance with paragraph (1). The Inspector General of
the Corporation shall make such plan available to the Financial Services
Oversight Council established under section 1001.</text>
</paragraph></subsection><subsection id="HF38B1035952442A4A0422A56443929D6"><enum>(b)</enum><header>Special Deputy
Inspector General</header><text display-inline="yes-display-inline">The head of
the Office of Resolution is the Special Deputy Inspector General for Resolution
(in this section referred to as the <quote>Special Deputy Inspector
General</quote>), who shall be appointed by and report to the Inspector General
of the Corporation.</text>
</subsection><subsection id="H66C95D53B9E845569C6FA3F7E1AFCC68"><enum>(c)</enum><header>Duties</header>
<paragraph display-inline="no-display-inline" id="HA162F6B869EC488FB47AE2A491413CF4"><enum>(1)</enum><header>Audits and
investigations</header><text display-inline="yes-display-inline">It shall be
the duty of the Special Deputy Inspector General, in consultation with and
subject to the approval of the Inspector General of the Corporation, to
conduct, supervise, and coordinate audits and investigations of the activities
of the Corporation in its capacity as receiver for a financial company under
section 1604, including by collecting the following information:</text>
<subparagraph display-inline="no-display-inline" id="HBA44E0811BCB463086010F7019A5FC71"><enum>(A)</enum><text>A description of
each financial company for which the Corporation has been appointed as receiver
under section 1604.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H03DE5D7D6C864461BDE57BFB8CADEEF5"><enum>(B)</enum><text>A description of
the activities and future plans of the Corporation with respect to each
financial company for which it has been appointed as receiver, and an analysis
of whether such activities and plans conform to the requirements of this
subtitle and other applicable law and are in the best interest of the overall
stability of the financial system.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H38E1619DCB85485FB3311209324971A5"><enum>(C)</enum><text>Such other
information as the Special Deputy Inspector General considers appropriate, in
consultation with and subject to the approval of the Inspector General of the
Corporation.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC41C2D4D803244AF8AD4018C42B03091"><enum>(2)</enum><header>Additional
duties</header>
<subparagraph id="HAC92B551AB024BC0B67B2A6AA4561BD0"><enum>(A)</enum><header>Systems,
procedures, and controls</header><text>The Special Deputy Inspector General
shall establish, maintain, and oversee such systems, procedures, and controls
as the Special Deputy Inspector General considers appropriate, in consultation
with and subject to the approval of the Inspector General of the Corporation,
to discharge the duties under paragraph (1).</text>
</subparagraph><subparagraph id="HFC34F22B16F84F6C93331A88D618CDAD"><enum>(B)</enum><header>Reporting of
criminal violations to Attorney General</header><text display-inline="yes-display-inline">If the Special Deputy Inspector General, in
carrying out this section, discovers facts that give the Special Deputy
Inspector General reasonable grounds to believe there has been a violation of
Federal criminal law, the Special Deputy Inspector General shall expeditiously
report such facts to the Attorney General.</text>
</subparagraph><subparagraph id="HE0F95A228BB04EDA8E1E4B0F4D14EBBA"><enum>(C)</enum><header>Minimizing
duplication of effort</header><text>The Inspector General of the Corporation
and the Special Deputy Inspector General shall coordinate to minimize
duplication of effort in the oversight of the Corporation’s activities as
receiver for financial companies under section 1604.</text>
</subparagraph></paragraph><paragraph id="HBAF00CDE41224FA3875990D5F2FE6607"><enum>(3)</enum><header>Duties under the
Inspector General Act of 1978</header><text>In addition to the duties specified
in paragraphs (1) and (2), the Special Deputy Inspector General shall assist
the Inspector General of the Corporation in carrying out such duties and
responsibilities of inspectors general under the Inspector General Act of 1978
as the Inspector General of the Corporation considers appropriate.</text>
</paragraph></subsection><subsection id="H9BD3BA4DB6134894959DFF8129FE7995"><enum>(d)</enum><header>Authorities
under the Inspector General Act of 1978</header><text display-inline="yes-display-inline">The Inspector General of the Corporation
may confer on the Special Deputy Inspector General such authorities provided to
the Inspector General of the Corporation in section 6 of the Inspector General
Act of 1978 as the Inspector General of the Corporation considers necessary to
enable the Special Deputy Inspector General to carry out the duties specified
in subsection (c).</text>
</subsection><subsection id="H3F768517C0C74A8C95520FFF2A62103F"><enum>(e)</enum><header>Personnel,
Facilities, and Other Resources</header>
<paragraph id="HB5DACE24C6154AA4820C0528E7A8C5DA"><enum>(1)</enum><header>In
general</header><text>The Special Deputy Inspector General may, in consultation
with and subject to the approval of the Inspector General of the Corporation,
expend such amounts from the fund established under section 1609(n) as are
necessary to carry out the duties described in subsection (c) and to submit the
reports required by subsection (h).</text>
</paragraph><paragraph id="H3DF5155BB2764D6CA7CE0367493E77BA"><enum>(2)</enum><header>Additional
funds</header><text display-inline="yes-display-inline">If the fund established
under section 1609(n) is insufficient to enable the Special Deputy Inspector
General to begin carrying out the duties of the Special Deputy Inspector
General in a timely fashion or later becomes insufficient to enable the Special
Deputy Inspector General to carry out such duties, the Inspector General of the
Corporation shall detail the necessary personnel, facilities, or other
resources to the Special Deputy Inspector General.</text>
</paragraph></subsection><subsection id="H3ECF2D4FCDF248EB9CA1945F90D33491"><enum>(f)</enum><header>Corrective
responses to audit problems</header><text display-inline="yes-display-inline">The Chairman of the Corporation
shall—</text>
<paragraph id="HBCB10DC50F0642E0B111E9106419ED67"><enum>(1)</enum><text display-inline="yes-display-inline">take action to address deficiencies
identified by a report or investigation of the Special Deputy Inspector
General; or</text>
</paragraph><paragraph id="H98D8CB8681DB45918B266B31E12D74DD"><enum>(2)</enum><text>certify to the
appropriate committees of Congress that no action is necessary or
appropriate.</text>
</paragraph></subsection><subsection id="HFC241B5285FD4D0BAE060F1029F9E075"><enum>(g)</enum><header>Cooperation and
coordination with other entities</header><text>In carrying out the duties,
responsibilities, and authorities of the Special Deputy Inspector General under
this section, the Special Deputy Inspector General shall work with each of the
inspectors general who is a member of the Council of Inspectors General on
Financial Oversight established under section 1703(a)(1), in order to avoid
duplication of effort and ensure comprehensive oversight of the Corporation’s
activities as a receiver appointed under section 1604.</text>
</subsection><subsection id="HBE95EFFD9D1D4B7B89187BA54B00DDF3"><enum>(h)</enum><header>Reports</header>
<paragraph id="HDAAC43453A4844098E566EEC26DA6912"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In lieu of the
semiannual reports required by section 5(a) of the Inspector General Act of
1978, the Special Deputy Inspector General shall submit to the appropriate
committees of Congress at the following times a report prepared in consultation
with and approved by the Inspector General of the Corporation:</text>
<subparagraph id="H2A60852C5E5D45A2937CE4E2806FC227"><enum>(A)</enum><text>Not later than 30
days after the appointment of the Special Deputy Inspector General.</text>
</subparagraph><subparagraph id="HB161EABE40094592BEB05B4764CD3665"><enum>(B)</enum><text display-inline="yes-display-inline">During the first 3 years after such
appointment, not later than 30 days after the end of each fiscal quarter during
which the Corporation acts as receiver for a financial company under section
1604.</text>
</subparagraph><subparagraph id="H7449080EEDD24B2484CA69648DE44BC5"><enum>(C)</enum><text display-inline="yes-display-inline">During the 4th year after such appointment
and each year thereafter, not later than 30 days after the end of the 2nd and
the 4th fiscal quarters, if the Corporation acts as receiver for a financial
company under section 1604 during such semiannual period.</text>
</subparagraph></paragraph><paragraph id="HFB8DF73A27C34759B8EFF35402A5136D"><enum>(2)</enum><header>Content of
reports</header><text display-inline="yes-display-inline">Each report required
by paragraph (1) shall include a summary, for the period since the last
required report (or, in the case of the first report, for the period since the
Corporation was first appointed as a receiver under section 1604) of—</text>
<subparagraph id="HA05980F0611E4CBF9FE493FFEDF5CE69"><enum>(A)</enum><text>the activities of
the Special Deputy Inspector General; and</text>
</subparagraph><subparagraph id="H1F03DC232AA440C7AE59036CE8DDEFBE"><enum>(B)</enum><text>the activities and
future plans of the Corporation with respect to each financial company for
which it served as receiver.</text>
</subparagraph></paragraph></subsection><subsection id="HBCC810F12B64402A812CAB1B1BE2208C"><enum>(i)</enum><header>Termination</header><text>The
Office of Resolution shall terminate 6 months after the Corporation ceases to
serve as a receiver for any financial company under section 1604, subject to
reestablishment pursuant to subsection (a)(1).</text>
</subsection></section><section id="HAEB28013E7714E28BA226EE438936465"><enum>1612.</enum><header>Miscellaneous
provisions</header>
<subsection id="HEAD7964C29974CAB8291D23A36C91FC5"><enum>(a)</enum><header>Bankruptcy code
amendments</header><text>Section 109(b)(2) of title 11 of the United States
Code is amended by inserting <quote>covered financial company (as that term is
defined in section 1602(5) of the Dissolution Authority for Large,
Interconnected Financial Companies Act of 2009),</quote> after <quote>a
domestic insurance company,</quote>.</text>
</subsection><subsection id="H61A8BA566E8D4E3A9880A21509C9AE7C"><enum>(b)</enum><header>Federal Deposit
Insurance Act and Federal Deposit Insurance Corporation Improvement Act of
1991</header>
<paragraph id="H79F77D08BF5F48C48BD5C10E3F7BFECE"><enum>(1)</enum><text>Section
18(c)(4)(G)(i) of the Federal Deposit Insurance Act (12 U.S.C.
1823(c)(4)(G)(i)) is amended by inserting at the end the following new
sentence: <quote>The determination with regard to the Corporation’s exercise of
authority under this subparagraph shall apply to only an insured depository
institution except when severe financial conditions exist which threaten the
stability of a significant number of insured depository
institutions.</quote>.</text>
</paragraph><paragraph id="H0383F7B3F98F4B3D84A2D2F7720B42EB"><enum>(2)</enum><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 1609(c) of the Resolution
Authority for Large, Interconnected Financial Companies Act of 2009, 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>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HD4FB681731D44FFF810A1705A2A62818" section-type="subsequent-section"><enum>1613.</enum><header>Amendment to
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 by inserting after section 11A the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H7012463F90FA4F9E8FC41320EBBA19CF" style="OLC">
<section id="H2E9B100F0033416DA6E63A1D472DAC16"><enum>11B.</enum><header>Systemic
dissolution authority and fund</header>
<subsection id="H9668D8E032E7486ABCAC9C4B3ADF83B9"><enum>(a)</enum><header>Systemic
dissolution authority</header><text display-inline="yes-display-inline">The
Corporation shall establish a Systemic Dissolution Authority, which shall
function as a subsidiary of the Corporation.</text>
</subsection><subsection id="H45A71E5109414A3A8196062307A53E2C"><enum>(b)</enum><header>Systemic
dissolution fund</header><text display-inline="yes-display-inline">Any fund
established for the purpose of facilitating the dissolution of a financial
company under subtitle G of the Financial Stability Improvement Act shall be
called the Systemic Dissolution Fund, which shall be managed by the
Corporation, through the Systemic Dissolution Authority.</text>
</subsection><subsection id="H55A20FD5F4B342C2B5A487B65F51AA77"><enum>(c)</enum><header>Management of
fund</header>
<paragraph id="HBA4C5A19A8CE4BA48FC4B605AB4564F6"><enum>(1)</enum><header>Separate
maintenance</header><text display-inline="yes-display-inline">The Systemic
Dissolution Fund shall be separately maintained and not commingled with any
other fund of the Corporation.</text>
</paragraph><paragraph id="H9622DE609D2C4577870D258369C29C0C"><enum>(2)</enum><header>Treatment of and
accounting for assets</header><text display-inline="yes-display-inline">The
assets and liabilities of the Systemic Dissolution Fund—</text>
<subparagraph id="HADEB036614AB41B68D38D1F4B6BD51F1"><enum>(A)</enum><text>shall be the
assets and liabilities of the Fund and not of the Corporation; and</text>
</subparagraph><subparagraph id="HF8C022DE0F8A44A183FCD5BA4EEF34C4"><enum>(B)</enum><text>shall not be
consolidated with the assets and liabilities of the Deposit Insurance Fund or
the Corporation for accounting, reporting, or any other purpose.</text>
</subparagraph></paragraph></subsection><subsection id="H009949309EF54669B8E057231E96535E"><enum>(d)</enum><header>Rights, powers,
and duties</header>
<paragraph id="HEF42AB8831F049D7B536450A609D261F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Corporation, in
addition to any rights, powers, and duties under this Act or any other law,
shall, through the Systemic Dissolution Authority, have all rights, powers, and
duties necessary to implement and maintain the Systemic Dissolution Fund in
accordance with subtitle G of the Financial Stability Improvement Act of
2009.</text>
</paragraph><paragraph id="H5FBC9F3D2E8440C1A72CC1925767EED2"><enum>(2)</enum><header>Powers as
receiver for covered financial company</header><text display-inline="yes-display-inline">When acting as receiver with respect to any
covered financial company, as defined in subtitle G of the Financial Stability
Improvement Act of 2009, the Corporation, through the Systemic Dissolution
Authority, shall have all rights, powers, and duties that the Corporation has
as receiver under such subtitle.</text>
</paragraph><paragraph id="H2E5166C618B4410CA36C4D2115422272"><enum>(3)</enum><header>Specific and
incidental powers</header><text>The Corporation, through the Systemic
Dissolution Authority, or any duly authorized officer or agent of the
Authority, may exercise all powers specifically granted by the provisions of
this Act and subtitle G of the Financial Stability Improvement Act and such
incidental powers as shall be necessary to carry out the powers so granted and
accomplish the purposes of subtitle G of the Financial Stability Improvement
Act.</text>
</paragraph></subsection><subsection id="H786EFCB7FF1941EEBEAA993204F8726F"><enum>(e)</enum><header>Staff and
resources</header>
<paragraph id="HA0AF3C6F409A430EB3F099EC7E735E11"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Corporation shall
assign such staff, and provide such administrative and other support services
to the Systemic Dissolution Authority as is necessary to fulfill the statutory
responsibilities of the Authority.</text>
</paragraph><paragraph id="H696FC147E9C447B788F972DCA9BBABAD"><enum>(2)</enum><header>Administrative
expenses</header><text><header-in-text> </header-in-text>The cost of all
personnel, services, and resources provided on behalf of the Systemic
Dissolution Authority shall be paid from the Systemic Dissolution
Fund.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE3DDF80396DA44DDA340C5D6646C034D"><enum>1614.</enum><header>Application of
executive compensation limitations</header><text display-inline="no-display-inline">The provisions of section 111 of the
Emergency Economic Stabilization Act of 2008 shall apply to a covered financial
institution for which a receiver has been appointed pursuant to section 1604.
Such covered financial institution shall be considered a TARP recipient for
purposes of such section 111 for so long as such institution is in
receivership.</text>
</section></subtitle><subtitle id="HEB605786D64E45C9B589F304FEC91CA3"><enum>H</enum><header>Additional
improvements for financial crisis management</header>
<section id="H336DEE05F3944DD6A6665676C74A2C52"><enum>1701.</enum><header>Additional
improvements for financial crisis management</header><text display-inline="no-display-inline">Section 13 of the Federal Reserve Act (12
U.S.C. 343) is amended by striking the 3rd undesignated paragraph and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H5FC0885DA3A94FA0B26CD24844D2DBBB" style="OLC">
<subsection id="H6572D6CAE0E14194AA02C90CA81B6CDE"><enum>(c)</enum><header>Financial crisis
management</header>
<paragraph id="H7704355B9AEB49B2A4FFF36B744440FD"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In unusual and
exigent circumstances, the Board of Governors of the Federal Reserve System,
upon the written determination, pursuant to section 1109 of the Financial
Stability Improvement Act of 2009, of the Financial Stability Oversight
Council, that a liquidity event exists that could destabilize the financial
system (which determination shall be made upon a vote of not less than
two-thirds of the members of such Council then serving), and with the written
consent of the Secretary of the Treasury (after certification by the President
that an emergency exists), may authorize any Federal reserve bank, during such
periods as the Board may determine and at rates established in accordance with
the provision designated as (d) of section 14, to discount for an individual,
partnership, or corporation, notes, drafts, and bills of exchange when such
notes, drafts, and bills of exchange are indorsed or otherwise secured to the
satisfaction of the Federal reserve bank and in conformance with regulations or
guidelines issued by the Board of Governors regarding the quality of notes,
drafts, and bills of exchange available for discount and of the security for
those notes, drafts and bills of exchange, unless a joint resolution (as
defined in paragraph (5)) is adopted. Upon making any determination under this
paragraph, with the consent of the Secretary of the Treasury, the Financial
Stability Oversight Council shall promptly submit a notice of such
determination to the Congress. The amounts made available under this subsection
shall not exceed $4,000,000,000,000.</text>
</paragraph><paragraph id="HDCB1FDC98C534920A4F501AAC69679C7"><enum>(2)</enum><header>Clarification of
<quote>secured to the satisfaction of the Federal reserve
bank</quote></header><text display-inline="yes-display-inline">No member of the
Board of Governors of the Federal Reserve System shall vote to authorize any
action permitted under paragraph (1) and the Secretary of the Treasury shall
not provide the written consent required by paragraph (1) unless that member
believes and the Secretary of the Treasury believes:</text>
<subparagraph id="H2FF2E657F2404A4989D816195EE7734C"><enum>(A)</enum><text display-inline="yes-display-inline">that there is at least a 99 percent
likelihood that all funds disbursed or put at risk by such action will be
repaid to the Federal Reserve System; and</text>
</subparagraph><subparagraph id="H266292789D3D4E42B04BEF55F84E0C25"><enum>(B)</enum><text display-inline="yes-display-inline">that there is at least a 99 percent
likelihood that all interest due on any funds disbursed will also be paid to
the Federal Reserve System.</text>
</subparagraph></paragraph><paragraph id="H73ABD07A3E8A4F6C9EC0B07D73951940"><enum>(3)</enum><header>Low quality
assets excluded</header><text display-inline="yes-display-inline">The notes,
drafts, and bills of exchange available for discount for purposes of paragraph
(1), and the security for those notes, drafts and bills of exchange may only
include any of the following assets if such asset is used to further enhance
the security for those notes, drafts and bills of exchange which shall be fully
secured with assets that are not any of the following assets:</text>
<subparagraph id="H5E5B88BA29E6413CA87640599F3B1801"><enum>(A)</enum><text>An asset
(including a security) that would be classified as “substandard,” “doubtful,”
or “loss,” or treated as “special mention” or “other transfer risk problems,”
in a report of examination or inspection of bank or an affiliate of a bank
prepared by either a Federal or State supervisory agency or in any internal
classification system used by such individual, partnership or
corporation.</text>
</subparagraph><subparagraph id="HB33B9C51092A4D1D95D7275FF4D356D4"><enum>(B)</enum><text>An asset in a
nonaccrual status.</text>
</subparagraph><subparagraph id="H3F12E536594B400E8C84444A2F7B52FB"><enum>(C)</enum><text>An asset on which
principal or interest payments are more than 30 days past due.</text>
</subparagraph><subparagraph id="H8E6E55FF3D2C4C7DBFD9747A7F8491D7"><enum>(D)</enum><text>An asset whose
terms have been renegotiated or compromised due to the deteriorating financial
condition of the obligor unless such asset has been performing for at least 6
months since the renegotiation.</text>
</subparagraph></paragraph><paragraph id="H6583001F777944F09A762031379FC23F"><enum>(4)</enum><header>No single or
specific beneficiaries</header><text display-inline="yes-display-inline">The
Board of Governors of the Federal Reserve System may authorize a Federal
reserve bank to discount notes, drafts, or bills of exchange under this section
only as part of a broadly available credit or other facility and may not
authorize a Federal Reserve bank to discount notes, drafts, or bills of
exchange for only a single and specific individual, partnership, or
corporation.</text>
</paragraph><paragraph id="H8C139303445B42B5BC631DE59FD95C47"><enum>(5)</enum><header>Evidence of
unavailability of credit</header><text display-inline="yes-display-inline">Before discounting any note, draft, or bill
of exchange under this subsection for an individual, a partnership or
corporation as part of a broadly available credit or other facility the Federal
reserve bank shall obtain evidence that such individual, partnership, or
corporation is unable to secure adequate credit accommodations from other
banking institutions. All discounts under this subsection for individuals,
partnerships, or corporations shall be subject to such limitations,
restrictions, and regulations as the Board of Governors of the Federal Reserve
System may prescribe.</text>
</paragraph><paragraph id="HE17FEE2602654E85A2636FE91CC5FAF9"><enum>(6)</enum><header>Congressional
disapproval of additional borrowing authority</header>
<subparagraph id="HC6CECC030C0C4FAF8712EC2575A80976"><enum>(A)</enum><header>Introduction</header><text display-inline="yes-display-inline">Within 90 days of the day on which notice
from the Financial Stability Oversight Council is received by the House of
Representatives and the Senate under paragraph (1), a joint resolution
specified in subparagraph (E) may be introduced in the House by the majority
leader and minority leader of the House and in the Senate by the majority
leader and minority leader of the Senate.</text>
</subparagraph><subparagraph id="H346C4D30E5214866BD00652D5422BAAB"><enum>(B)</enum><header>Consideration in
the house of representatives</header>
<clause id="H9B6D05C95CF446BE924F2AFA689BBD47"><enum>(i)</enum><header>Reporting and
discharge</header><text>Any committee of the House of Representatives to which
a joint resolution introduced under subparagraph (A) is referred shall report
such joint resolution to the House not later than 5 calendar days after the
applicable date of introduction of the joint resolution. If a committee fails
to report such joint resolution within that period, the committee shall be
discharged from further consideration of the joint resolution and the joint
resolution shall be referred to the appropriate calendar.</text>
</clause><clause id="H5A331A7C602C4099BF0C3673E05DE3D3"><enum>(ii)</enum><header>Proceeding to
consideration</header><text>After each committee authorized to consider a joint
resolution reports such joint resolution to the House or has been discharged
from its consideration, it shall be in order, not later than the sixth day
after the applicable date of introduction of the joint resolution, to move to
proceed to consider the joint resolution in the House. Such a motion shall not
be in order after the House has disposed of a motion to proceed on the joint
resolution and shall not be in order if the House has received a message from
the Senate under subparagraph (D)(iii)(I). The previous question shall be
considered as ordered on the motion to its adoption without intervening motion.
A motion to reconsider the vote by which the motion is disposed of shall not be
in order.</text>
</clause><clause id="HCE01612922D44C08B521EE91053C60A4"><enum>(iii)</enum><header>Consideration</header><text>The
joint resolution shall be considered in the House and shall be considered as
read. All points of order against a joint resolution and against its
consideration are waived. The previous question shall be considered as ordered
on the joint resolution to its passage without intervening motion except two
hours of debate equally divided and controlled by the proponent and an
opponent. A motion to reconsider the vote on passage of a joint resolution
shall not be in order.</text>
</clause></subparagraph><subparagraph id="H540A41C592454CDB8A586BED3149B914"><enum>(C)</enum><header>Consideration in
the senate</header>
<clause id="H82BD61EE2B154C8185F5579708FDEC51"><enum>(i)</enum><header>Placement on
calendar</header><text>Upon introduction in the Senate, the joint resolution
shall be placed immediately on the calendar.</text>
</clause><clause id="HD91A50DBC9444168AFF26A1E6B6A9470"><enum>(ii)</enum><header>Floor
consideration</header>
<subclause id="H36046E6505074CA0B78DE41A4E7DF813"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">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 applicable date of introduction of
the joint resolution and ending on the 6th day after the applicable date of
introduction (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>
</subclause><subclause id="H17FC7D8DD0EB4C5BAA87118C420FA531"><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>
</subclause><subclause id="H764166DE8DDE4F8F88520D69EECDA6C0"><enum>(III)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on a joint resolution, and a single quorum call at the
conclusion of the debate if requested in accordance with the rules of the
Senate.</text>
</subclause><subclause id="HDD3C24500BF24960948693AFEFFACC80"><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>
</subclause></clause></subparagraph><subparagraph id="HA815761B41A3420F82AB81885FF8D1C6"><enum>(D)</enum><header>Rules relating
to senate and house of representatives</header>
<clause id="HEDC6E4C7095D40568E7BF17515A92C3A"><enum>(i)</enum><header>Coordination
with action by other house</header><text>If, before the passage by one House of
a joint resolution of that House, that House receives from the other House a
joint resolution, then the following procedures shall apply:</text>
<subclause id="H734D41D256C64DC3A9C200B9C612201D"><enum>(I)</enum><text>The joint
resolution of the other House shall not be referred to a committee.</text>
</subclause><subclause id="H08672748A8EA4FA2AB7E612C1632DD8C"><enum>(II)</enum><text>With respect to
the joint resolution of the House receiving the resolution, the procedure in
that House shall be the same as if no such joint resolution had been received
from the other House; but the vote on passage shall be on the joint resolution
of the other House.</text>
</subclause></clause><clause id="H833281A54B6B4A728B8E3FC2C543872E"><enum>(ii)</enum><header>Treatment of
companion measures</header><text>If, following passage of a 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>
</clause><clause id="H4E70BF3C32B94C60B90040D0F75928BB"><enum>(iii)</enum><header>Failure of
joint resolution in the senate</header>
<subclause id="H17980A9F6CC4425AB03AD1581167E0AF"><enum>(I)</enum><text>If, in the Senate,
the motion to proceed to the consideration of the joint resolution fails, the
Secretary of the Senate shall transmit a message to that effect to the House of
Representatives.</text>
</subclause><subclause id="H622DDD0409C941948465E6BA7CE7BF77"><enum>(II)</enum><text>If, in the
Senate, the joint resolution fails on passage, the Secretary of the Senate
shall transmit a message to that effect to the House of Representatives.</text>
</subclause></clause><clause id="HF26CEFC1444443CC8C44118D687DDAD1"><enum>(iv)</enum><header>Rules of house
of representatives and senate</header><text>This paragraph and the preceding
paragraphs are enacted by Congress—</text>
<subclause id="H2F994D2289AF4B82B342C26A505170BE"><enum>(I)</enum><text>as an exercise of
the rulemaking power of the Senate and House of Representatives, respectively,
and as such it is deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in that House 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>
</subclause><subclause id="H597E8F3953894D2DBDDB55684B92105A"><enum>(II)</enum><text>with full
recognition of the constitutional right of either House to change the rules (so
far as relating to the procedure of that House) at any time, in the same
manner, and to the same extent as in the case of any other rule of that
House.</text>
</subclause></clause></subparagraph><subparagraph id="HA7B0136DA4614EE7B53802C72EB12C65"><enum>(E)</enum><header>Definition</header><text>In
this paragraph, the term <quote>joint resolution</quote> means only a joint
resolution—</text>
<clause id="HEC381B4906DF402BA7CE5481BDD3C134"><enum>(i)</enum><text>which does not
have a preamble;</text>
</clause><clause id="H8E9ED9428DEA4A959E641512BB22D378"><enum>(ii)</enum><text>the title of
which is as follows: <quote>Joint resolution relating to the use of authority
relevant to section 13(c) of the Federal Reserve Act under the Financial
Stability Improvement Act of 2009.</quote>; and</text>
</clause><clause id="HC180537AD76D4EC6BCDBECF0EA0C4A3A"><enum>(iii)</enum><text>the sole matter
after the resolving clause of which is as follows: <quote>That the Congress
disapproves the use of authority pursuant to use of authority relevant to
section 13(c) of the Federal Reserve Act transmitted to the Congress on ___ by
the Board of Governors of the Federal Reserve System</quote>, the blank space
being filled with the appropriate date.</text>
</clause></subparagraph><subparagraph id="H0B443F5418B744998A3C904655FA666B"><enum>(F)</enum><header>Nonscoring of
joint resolutions of disapproval</header><text>A joint resolution of
disapproval shall be treated as having no budgetary effect by the Congressional
Budget Office and the Office of Management and Budget for any purpose under the
Rules of the House of Representatives, the Standing Rules of the Senate, the
Congressional Budget Act of 1974, or any statutory pay-as-you-go
requirement.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3318132F5B14458B8483069071DAE58D"><enum>1702.</enum><header>Certain
restrictions related to foreign currency swap authority</header><text display-inline="no-display-inline">Section 14 of the Federal Reserve Act is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9D8F64482C9F4FFBA551173A95147336" style="OLC">
<subsection id="HBCA6361837314E34B7D121B9F89A9ADC"><enum>(h)</enum><header>Certain
restrictions related to foreign currency swap authority</header><text display-inline="yes-display-inline">A Federal reserve bank may not take any
action pursuant to the authority provided under this section with respect to
foreign currency swaps unless—</text>
<paragraph id="H1EB276A947AD4C27B5152EEBB3E7CEBE"><enum>(1)</enum><text display-inline="yes-display-inline">such action is approved in advance by the
affirmative vote of not less than five members of the Board of Governors of the
Federal Reserve System; and</text>
</paragraph><paragraph id="HDA0AE648C8994A4EA49737B1BF44DA28"><enum>(2)</enum><text>such action is
taken with the written concurrence of the Secretary of the
Treasury.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HDFF33A2D66DE4F0D933288441694E245"><enum>1703.</enum><header>Additional
oversight of financial regulatory system</header>
<subsection id="HB2738B0626EA4015BEFB32F60D8A58F5"><enum>(a)</enum><header>Council of
Inspectors General on Financial Oversight</header>
<paragraph id="H921F7EF543D24DE7A257940328470E6E"><enum>(1)</enum><header>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 id="HE564393B92A54CE685FACA6BE94C1DA7"><enum>(A)</enum><text>The Board of
Governors of the Federal Reserve System.</text>
</subparagraph><subparagraph id="H08EFA5A7ADF8464BB23C565E0B8AA601"><enum>(B)</enum><text display-inline="yes-display-inline">The Commodity Futures Trading
Commission.</text>
</subparagraph><subparagraph id="H08816B2449FB48F28E0281D87317E680"><enum>(C)</enum><text>The Department of
Housing and Urban Development.</text>
</subparagraph><subparagraph id="H772465B05012470984AD58FCCFD19FCF"><enum>(D)</enum><text>The Department of
the Treasury.</text>
</subparagraph><subparagraph id="H125EA357821D438D98A1A3309B79E021"><enum>(E)</enum><text>The Federal
Deposit Insurance Corporation.</text>
</subparagraph><subparagraph id="HAB2907D11FB64113896C331517E21298"><enum>(F)</enum><text>The Federal
Housing Finance Agency.</text>
</subparagraph><subparagraph id="H921C16094D024E148BA39454F2DF9B21"><enum>(G)</enum><text>The National
Credit Union Administration.</text>
</subparagraph><subparagraph id="H8B4574FAD57647C8AA174002EDE78AE7"><enum>(H)</enum><text>The Securities and
Exchange Commission.</text>
</subparagraph><subparagraph commented="no" id="H1AD5CDD17D9548ADA511A1BD6DC661D4"><enum>(I)</enum><text>The Troubled Asset
Relief Program (until the termination of the authority of the Special Inspector
General for such program under section 121(h) of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5231(h))).</text>
</subparagraph></paragraph><paragraph id="H0338E76F052F4DEAA438774C19577411"><enum>(2)</enum><header>Duties</header>
<subparagraph id="H4B128802FBA6456093DB2927DD7FDF9F"><enum>(A)</enum><header>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 id="HFDFAAD116ACA46659E428E055C3C0DB7"><enum>(B)</enum><header>Annual
report</header><text display-inline="yes-display-inline">The Council of
Inspectors General shall, each year within a timeframe that permits
consideration by the Financial Services Oversight Council (in this section
referred to as the <quote>Oversight Council</quote>) prior to the submission of
its report for such year under section 1006, submit to the Oversight Council
and to Congress a report including—</text>
<clause id="H592FAF9B07B8424280790CD0FEF04475"><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 id="H97A59B2FD51D407D95A857FDADDAE4AE"><enum>(ii)</enum><text>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 id="H9A93E3A9C8D84B96B5EFADF87883746A"><enum>(3)</enum><header>Council of
Inspectors General Working Groups</header>
<subparagraph id="HD202EB6B54ED44FD860AD992641FA4A4"><enum>(A)</enum><header>Working Groups
to evaluate Oversight Council</header>
<clause id="H797962D1C50F4CD0A9670DB5E39EAD30"><enum>(i)</enum><header>Convening a
Working Group</header><text>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 Oversight Council.</text>
</clause><clause id="HBE8F9DC1494B44FD8E9965F743C8AFB9"><enum>(ii)</enum><header>Personnel and
resources</header><text>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 subparagraph to enable it to carry
out its duties.</text>
</clause><clause id="H296F2751FA1F4E78BEE91B6C4FB8D827"><enum>(iii)</enum><header>Reports</header><text display-inline="yes-display-inline">A Council of Inspectors General Working
Group established under this subparagraph shall submit regular reports to the
Oversight Council and to Congress on its evaluations pursuant to this
subparagraph.</text>
</clause></subparagraph><subparagraph id="H4459B51F86EA45F8A497C4D383D7C0C7"><enum>(B)</enum><header>Working Groups
for financial companies undergoing resolution</header>
<clause id="H0CF0303123314934A7951BEDBB0BFB7D"><enum>(i)</enum><header>Convening a
Working Group</header><text>The Council of Inspectors General shall convene a
Council of Inspectors General Working Group for each financial company for
which the Secretary of the Treasury appoints the Federal Deposit Insurance
Corporation as receiver under section 1604.</text>
</clause><clause id="H60C8510976434D89B77A32C7FB87707E"><enum>(ii)</enum><header>Personnel and
resources</header><text>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 subparagraph to enable it to carry
out its duties.</text>
</clause><clause id="HB5F3A88262CB44BA9B4BECE75902087A"><enum>(iii)</enum><header>Reports</header><text display-inline="yes-display-inline">Not later than 270 days after the
appointment of the Federal Deposit Insurance Corporation as receiver for the
financial company for which a Council of Inspectors General Working Group is
convened under clause (i), such Working Group shall submit to the primary
financial regulatory agency and to Congress a report that includes—</text>
<subclause id="H94024D3ACAC84C87A961772229C0C300"><enum>(I)</enum><text>the reasons for
such financial company’s failure;</text>
</subclause><subclause id="HB03E8634BC6545229D5231E9B0A2EC1B"><enum>(II)</enum><text>the reasons for
the Secretary of the Treasury’s appointment of the Federal Deposit Insurance
Corporation as receiver for such financial company; and</text>
</subclause><subclause id="H64216C6A9C494F6485DABBDB73DB1307"><enum>(III)</enum><text>recommendations
for preventing future failures of financial companies.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HCEA123B250F9408F897E150B7DF06915"><enum>(b)</enum><header>Response to
report by Oversight Council</header><text display-inline="yes-display-inline">The Oversight Council shall include in its
annual report under section 1006 responses to the concerns raised in the report
of the Council of Inspectors General under subsection (a)(2)(B) for such
year.</text>
</subsection></section></subtitle><subtitle id="H874F662B83734A6C923D0E174E1C53D9"><enum>I</enum><header>Miscellaneous</header>
<section id="HEE420B8309894F6E89D9032F4BC53AE2"><enum>1801.</enum><header>Inclusion of
minorities and women; Diversity in agency workforce</header>
<subsection id="HD09880A51CD94B9D8FB38AAC62E11559"><enum>(a)</enum><header>Office of
Minority and Women Inclusion</header>
<paragraph id="H005B017CD40F4816BB6D8A6EECB465D5"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 180 days following the
enactment of this title, each agency shall establish an Office of Minority and
Women Inclusion (hereinafter in this section referred to as the
<quote>Office</quote>) that shall advise the agency administrator of the impact
of policies and regulations of the agency on minority-owned and women-owned
businesses, and shall be responsible for all matters of the agency relating to
diversity in management, employment, and business activities, including the
coordination of technical assistance, in accordance with such standards and
requirements as the Director of the Office shall establish.</text>
</paragraph><paragraph id="H074EB0F48FF144859A78FC2D9DE7AE87"><enum>(2)</enum><header>Consolidation</header><text>Each
agency that has assigned these or comparable responsibilities to existing
offices shall ensure that such responsibilities are consolidated within the
Office.</text>
</paragraph></subsection><subsection id="H48D332EFD1184F57860870AECCF051A9"><enum>(b)</enum><header>Director</header>
<paragraph id="H4FCF496EC294453996180B6DE24F6BC3"><enum>(1)</enum><header>In
general</header><text>For each Office, the President shall appoint, by and with
the advice and consent of the Senate, a Director of Minority and Women
Inclusion (hereinafter in this section referred to as the
<quote>Director</quote>), who shall also hold a title within such agency
comparable to that of other senior level staff who are, as applicable, either
appointed by the President, by and with the advice and consent of the Senate,
or act in a managerial capacity that requires reporting directly to the agency
administrator.</text>
</paragraph><paragraph id="H47977270DD924E8BA49510194537CA3E"><enum>(2)</enum><header>Duties</header><text display-inline="yes-display-inline">Each Director shall—</text>
<subparagraph id="H21E17A5EF2DD4AA9AA7812780E405247"><enum>(A)</enum><text>ensure equal
employment opportunity and the racial, ethnic and gender diversity of the
agency’s workforce and senior management;</text>
</subparagraph><subparagraph id="HB2D7F28FD94D46A1A2964D0E912D5AFB"><enum>(B)</enum><text>increase the
participation of minority-owned and women-owned businesses in the programs and
contracts of the agency;</text>
</subparagraph><subparagraph id="HE4782B3D50384BB584C0E33AD95FA133"><enum>(C)</enum><text>provide guidance
to the agency administrator to ensure that the policies and regulations of the
agency strengthen minority-owned and women-owned businesses; and</text>
</subparagraph><subparagraph id="HF7A526978F524B388BFC88AB3B523394"><enum>(D)</enum><text>conduct an
assessment, as part of the examination process for the entities regulated or
monitored by the agency of the diversity and inclusion efforts by such
entities.</text>
</subparagraph></paragraph></subsection><subsection id="H8DCFF59EC4FD497685CADB2950C43F97"><enum>(c)</enum><header>Inclusion in all
levels of business activities</header>
<paragraph id="HA4D23943DBA345A58953A896D2678DF2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each Director shall
develop and implement standards and procedures to ensure, to the maximum extent
possible, the inclusion and utilization of 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)), women, and minority-owned and
women-owned businesses (as such terms are defined in section 21A(r)(4) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including financial
institutions, investment banking firms, mortgage banking firms, asset
management firms, broker-dealers, financial services firms, underwriters,
accountants, brokers, investment consultants, and providers of legal services)
in all business and activities of the agency at all levels, including in
procurement, insurance, and all types of contracts (including, as applicable,
contracts for the issuance or guarantee of any debt, equity, or security, the
sale of assets, the management of its assets, the making of its equity
investments, and the implementation of programs to address economic
recovery).</text>
</paragraph><paragraph id="H1FBB9A82D5024736BC98218D22FCE2E1"><enum>(2)</enum><header>Contracts</header><text>The
processes established by each agency for review and evaluation for contract
proposals and to hire service providers shall include a component that gives
consideration to the diversity of the applicant.</text>
</paragraph><paragraph id="HCC0AEF2DB38849FCB5363E7ACC5473BC"><enum>(3)</enum><header>Written
assurance</header><text>All such contract proposals, provided such proposals
are of an amount greater than $50,000 and the contractor employs more than 50
employees, shall include a written assurance, in a form and substance that the
Director shall prescribe, that the contractor shall ensure, to the maximum
extent possible, the inclusion of minorities and women in its workforce and, as
applicable, by its subcontractors.</text>
</paragraph><paragraph id="HD83125618BAA4343897379533C496183"><enum>(4)</enum><header>Termination</header><text display-inline="yes-display-inline">A Director may terminate any contract upon
a finding that the contractor has failed to make a good faith effort to comply
with paragraph (3), except that a contractor may appeal such finding and
termination to the agency administrator within a reasonable amount of time as
determined by the Director.</text>
</paragraph></subsection><subsection id="HCDAE28563C6747E897E3B9682FA8B17B"><enum>(d)</enum><header>Applicability</header><text display-inline="yes-display-inline">This section shall apply to all contracts
of an agency for services of any kind, including services that require the
services of investment banking, asset management entities, broker-dealers,
financial services entities, underwriters, accountants, investment consultants,
and providers of legal services.</text>
</subsection><subsection id="HDB743A6422834651AC8A1B947BC012B7"><enum>(e)</enum><header>Reports</header><text display-inline="yes-display-inline">Not later than 90 days before the end of
each Federal fiscal year, each Director shall report to the Congress detailed
information describing the actions taken by the agency and the Director
pursuant to this section, which shall—</text>
<paragraph id="H0663D0CC5D6F40FBBCD310BBE7DD66B9"><enum>(1)</enum><text>to the extent
contracts exceed the contract amount and employment levels established in
subsection (c)(3), include a statement of the total amounts paid by the agency
to third party contractors since the last such report;</text>
</paragraph><paragraph id="H3C4EFD86D7A44691A68DBEA06280965C"><enum>(2)</enum><text>the percentage of
such amounts paid to businesses described in subsection (c)(1);</text>
</paragraph><paragraph id="H898C9270C78D4B2199E6EAEE66FEE73F"><enum>(3)</enum><text>the successes
achieved and challenges faced by the agency in operating minority and women
outreach programs;</text>
</paragraph><paragraph id="HAF5AE72FB18E4383A6CE8D415E93321D"><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="H20650B4A1D094D3F8A4566172223E626"><enum>(5)</enum><text>such other
information, findings, conclusions, and recommendations for legislative or
agency action, as the Director may determine to be appropriate to include in
such report.</text>
</paragraph></subsection><subsection id="HABE7807845F541D99E7BB93422C5A560"><enum>(f)</enum><header>Diversity in
agency workforce</header><text display-inline="yes-display-inline">Each agency
shall take affirmative steps to seek diversity in its workforce at all levels
of the agency consistent with the demographic diversity of the United States
and the Federal government, which shall include—</text>
<paragraph id="H34204D160C2448F8802DA8251A6C73DD"><enum>(1)</enum><text>heavily 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="HD7E68D5C9DC54AD6BFE567DAD5BF6853"><enum>(2)</enum><text>sponsoring and
recruiting at job fairs in urban communities, and placing employment
advertisements in newspapers and magazines oriented toward women and people of
color;</text>
</paragraph><paragraph id="H89ACD9324CE5499084DDADDACF39E8CE"><enum>(3)</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="HC78A7F511804423FBE4B871D919078F3"><enum>(4)</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="HE834953E033A4400A610FCB37C6303CF"><enum>(5)</enum><text>such other mass
media communications that the Director determines are necessary.</text>
</paragraph></subsection><subsection id="H2F793AA9226C4612ADF784B4FEA55BEE"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph id="H5ECBEDD2077E4818BB6FE140D7783710"><enum>(1)</enum><header>Agency</header><text display-inline="yes-display-inline">The term “agency” means—</text>
<subparagraph id="HA95F98878215417D888F13DE509F135B"><enum>(A)</enum><text>the Department of
the Treasury,</text>
</subparagraph><subparagraph id="HED9F745885984F35BD7A393F31D5FD50"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation,</text>
</subparagraph><subparagraph id="H4273C0495F2D49EF812A992D53CD8613"><enum>(C)</enum><text>the Federal
Housing Finance Agency,</text>
</subparagraph><subparagraph id="H13BF23F0CF2847178ED4E02B4F2BF967"><enum>(D)</enum><text>each of the
Federal reserve banks,</text>
</subparagraph><subparagraph id="H5ED3FFCD481440D9A3A5E69087E944E2"><enum>(E)</enum><text>the Board,</text>
</subparagraph><subparagraph id="H200A4FAA87484E5B8B51AFB8F847EC85"><enum>(F)</enum><text>the National
Credit Union Administration,</text>
</subparagraph><subparagraph id="H5EEABE9EC0EE410A8F80E7353FAFA9E9"><enum>(G)</enum><text>the Office of the
Comptroller of the Currency,</text>
</subparagraph><subparagraph id="H549675C8B41F44B69F28D6BDC7027D44"><enum>(H)</enum><text>the Office of
Thrift Supervision,</text>
</subparagraph><subparagraph id="H905185EC55ED4106832DD4BE6570095D"><enum>(I)</enum><text>the Securities and
Exchange Commission,</text>
</subparagraph><subparagraph id="HF9D0CABF9C9A4423B6A280265DA7EE25"><enum>(J)</enum><text>the Federal
department or agency that the President has identified as the main department
or agency responsible for consumer financial protection,</text>
</subparagraph><subparagraph id="HDA469D93002D42989B23782DC3BB41C7"><enum>(K)</enum><text display-inline="yes-display-inline">the Federal department or agency that the
President has identified as the main department or agency responsible for
insurance information,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">and any
successors to such entities.</continuation-text></paragraph><paragraph id="HC5025C05456342849EC0975A1F85B98B"><enum>(2)</enum><header>Agency
administrator</header><text>The term <quote>agency administrator</quote> means
the head of an agency.</text>
</paragraph></subsection></section></subtitle><subtitle id="HE3065E515C1348B28D0630EA12C75619"><enum>J</enum><header>International
policy coordination</header>
<section id="H4F69EB49CBBE48FCA4BA0AD356A0271D"><enum>1901.</enum><header>International
policy coordination</header><text display-inline="no-display-inline">The
President of the United States, or a designee of the President, shall
coordinate through all available international policy channels similar policies
as found in United States law related to limiting the scope, nature, size,
scale, concentration, and interconnectedness of financial companies in order to
protect financial stability and the global economy.</text>
</section></subtitle><subtitle id="H2ACE83F26D9145B48EB3BBBA5517F1B4"><enum>K</enum><header>International
financial provisions</header>
<section id="H2FE10021B6FB4A25A7EA2809AF290389"><enum>1951.</enum><header>Access to
United States financial market by foreign institutions</header>
<subsection id="H626C3521D4824414A07375F0A76C1915"><enum>(a)</enum><header>Establishment of
foreign bank offices in the United States</header><text display-inline="yes-display-inline">Subsection 7(d)(3) of the International
Banking Act of 1978 ( U.S.C. 3105(d)(3)) is amended—</text>
<paragraph id="H6F194ED6E5E6414BBCF3FE1EE801CD52"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (C);</text>
</paragraph><paragraph id="H707AFED4D36F434BB73965D20234D68E"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (D) and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="HD6C55415FB0D441D87DCE71D0BFFC68B"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HD9B33FE75AAE4D11AE228F04EFA4007B" style="OLC">
<subparagraph id="H73E73284D3C746B9A20EC72251A3B8F8"><enum>(E)</enum><text display-inline="yes-display-inline">for a foreign bank that presents a systemic
risk to the United States (as determined in accordance with section 1603 of the
Financial Stability Improvement Act of 2009), 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 systemic
risk.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBA49BE8519C341A581D85FD0B74AC65D"><enum>(b)</enum><header>Termination of
foreign bank offices in the United States</header><text display-inline="yes-display-inline">Subsection 7(e)(1) of the International
Banking Act of 1978 ( U.S.C. 3105(e)(1)) is amended—</text>
<paragraph id="HBF96B84F8A85423997C41867AE63C8B0"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (A);</text>
</paragraph><paragraph id="HEE351BBD4F5A43DCA61FCE72973BDB1F"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (B) and inserting <quote>; or</quote>;
and</text>
</paragraph><paragraph id="H4127391EADBA4F3D8CBF52EA51AEA3E6"><enum>(3)</enum><text>by inserting after
subparagraph (B), the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9BFFDED09A4F411D83531BD9D376795E" style="OLC">
<subparagraph id="H56842F2A69B3448D8775570D3CE92B7B"><enum>(C)</enum><text display-inline="yes-display-inline">for a foreign bank that presents a systemic
risk to the United States (as determined in accordance with section 1603 of the
Financial Stability Improvement Act of 2009), 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 systemic
risk.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA3B034D7514E4D1FB38AB141FD26B184"><enum>(c)</enum><header>Registration or
Succession to United States Brokerage or Dealer and Termination of such
Registration</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 new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H4FFB715644AB4F85B2F098FD9E4E4104" style="OLC">
<subsection id="HCA3FEFC893DD44A38F1B48BE313095D8"><enum>(k)</enum><header>Registration or
succession to a United States broker or dealer</header><text display-inline="yes-display-inline">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 Securities and Exchange Commission may consider whether, for a
foreign person, or an affiliate of a foreign person that presents a systemic
risk to the United States (as determined in accordance with section 1603 of the
Financial Stability Improvement Act of 2009), the home country of the foreign
person has adopted or made demonstrable progress toward adopting an appropriate
system of financial regulation to mitigate such systemic risk.</text>
</subsection><subsection id="H74529E48F67142D4BE61A1F7D109C88A"><enum>(l)</enum><header>Termination of a
United States broker or dealer</header><text display-inline="yes-display-inline">For a foreign person or an affiliate of a
foreign person that presents such a systemic risk to the United States, the
Securities and Exchange 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
systemic
risk.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><enum>II</enum><header>Corporate and
Financial Institution Compensation Fairness Act</header>
<section id="H805FE062D6F64D8AB9C926BFAE9728E2" section-type="subsequent-section"><enum>2001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Corporate and Financial
Institution Compensation Fairness Act of 2009</short-title></quote>.</text>
</section><section id="HF98C955904AB45B294C68FB6AFB31402"><enum>2002.</enum><header>Shareholder
vote on executive compensation disclosures</header><text display-inline="no-display-inline">Section 14 of the Securities Exchange Act of
1934 (15 U.S.C. 78n) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H86E896405CF34D51AE2E6C98E59F1F19" style="OLC">
<subsection id="H167B55E9A83F41C4A3C22BC00F70095F"><enum>(i)</enum><header>Annual
shareholder approval of executive compensation</header>
<paragraph id="H41D57F50B1D44086B2922D1F2470A481"><enum>(1)</enum><header>Annual
vote</header><text display-inline="yes-display-inline">Any proxy or consent or
authorization (the solicitation of which is subject to the rules of the
Commission pursuant to subsection (a)) for an annual meeting of the
shareholders to elect directors (or a special meeting in lieu of such meeting)
where proxies are solicited in respect of any security registered under section
12 occurring on or after the date that is 6 months after the date on which
final rules are issued under paragraph (4), shall provide for a separate
shareholder vote to approve the compensation of executives as disclosed
pursuant to the Commission’s compensation disclosure rules for named executive
officers (which disclosure shall include the compensation committee report, the
compensation discussion and analysis, the compensation tables, and any related
materials, to the extent required by such rules). The shareholder vote shall
not be binding on the issuer or the board of directors and shall not be
construed as overruling a decision by such board, nor to create or imply any
additional fiduciary duty by such board, nor shall such vote be construed to
restrict or limit the ability of shareholders to make proposals for inclusion
in such proxy materials related to executive compensation.</text>
</paragraph><paragraph commented="no" id="H2156FC489488485D973D3E8592B39D56"><enum>(2)</enum><header>Shareholder
approval of golden parachute compensation</header>
<subparagraph commented="no" id="H1849CF41FA6B428EAFC247195BB7DF2E"><enum>(A)</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 on or
after the date that is 6 months after the date on which final rules are issued
under paragraph (4), 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>
</subparagraph><subparagraph commented="no" id="HEF62CB55A2DE47019CB08B43C6FBF79C"><enum>(B)</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 subparagraph (A) shall provide for a
separate 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 paragraph (1). A vote by the shareholders
shall not be binding on the issuer or the board of directors of the issuer or
the person making the solicitation and shall not be construed as overruling a
decision by any such person or issuer, nor to create or imply any additional
fiduciary duty by any such person or issuer.</text>
</subparagraph></paragraph><paragraph id="H14FF26BEF7A74BC99035951BFFBD9AB4"><enum>(3)</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 paragraphs (1) or (2) of this
section, unless such vote is otherwise required to be reported publicly by rule
or regulation of the Commission.</text>
</paragraph><paragraph id="H4A5CE5DB4C46440BA4153DD5F213BC3B"><enum>(4)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than 6 months after the date of
the enactment of the <short-title>Corporate and Financial
Institution Compensation Fairness Act of 2009</short-title>, the Commission
shall issue final rules to implement this subsection.</text>
</paragraph><paragraph id="H3FEAB370465E4E5B994482DC12CEEC5A"><enum>(5)</enum><header>Exemption
authority</header><text display-inline="yes-display-inline">The Commission may
exempt certain categories of issuers from the requirements of this subsection,
where appropriate in view of the purpose of this subsection. In determining
appropriate exemptions, the Commission shall take into account, among other
considerations, the potential impact on smaller reporting
issuers.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE09A495CC4044A1CA85277C5053C8DFA"><enum>2003.</enum><header>Compensation
committee independence</header>
<subsection id="HE09F7DF71A0B459EAAF9A277AD69C843"><enum>(a)</enum><header>Standards
relating to compensation committees</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 10A the following new
section:</text>
<quoted-block id="HC509A2A14A154E45B6AC8957F01F9D07" style="OLC">
<section id="HB06ED16C1BAC456AA3C1783538A7BE7E"><enum>10B.</enum><header>Standards
relating to compensation committees</header>
<subsection id="HC3913F5D557E49CF949A864CC823C2D0"><enum>(a)</enum><header>Commission
rules</header>
<paragraph id="H1C921DE98C5149DC837FC9AA7BD15DA4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Effective not later
than 9 months after the date of enactment of the Corporate and Financial
Institution Compensation Fairness Act of 2009, the Commission shall, by rule,
direct the national securities exchanges and national securities associations
to prohibit the listing of any class of equity security of an issuer that is
not in compliance with the requirements of any portion of subsections (b)
through (f).</text>
</paragraph><paragraph id="H9189A4C9CF10416DA5E4306D53392696"><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 an opportunity
to cure any defects that would be the basis for a prohibition under paragraph
(1) before the imposition of such prohibition.</text>
</paragraph><paragraph id="H44A1CF40896C487EABE3C171410CEAD7"><enum>(3)</enum><header>Exemption
authority</header><text>The Commission may exempt certain categories of issuers
from the requirements of subsections (b) through (f), where appropriate in view
of the purpose of this section. In determining appropriate exemptions, the
Commission shall take into account, among other considerations, the potential
impact on smaller reporting issuers.</text>
</paragraph></subsection><subsection id="H98D76A3A4EEA434B8313613DEF0A5B3A"><enum>(b)</enum><header>Independence of
compensation committees</header>
<paragraph id="H8D0F3916B6054ABBA8356B43BA2B5DD8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each member of the
compensation committee of the board of directors of the issuer shall be
independent.</text>
</paragraph><paragraph id="H80C2DF2A45D942098D868E7A3E5B370E"><enum>(2)</enum><header>Criteria</header><text>In
order to be considered to be independent for purposes of this subsection, a
member of a compensation committee of an issuer may not, other than in his or
her capacity as a member of the compensation committee, the board of directors,
or any other board committee accept any consulting, advisory, or other
compensatory fee from the issuer.</text>
</paragraph><paragraph id="HE87753ACF8884EB891EBC5094973C650"><enum>(3)</enum><header>Exemption
authority</header><text>The Commission may exempt from the requirements of
paragraph (2) a particular relationship with respect to compensation committee
members, where appropriate in view of the purpose of this section.</text>
</paragraph><paragraph id="H82B5ADD4A6354B00A2B3F24327725448"><enum>(4)</enum><header>Definition</header><text>As
used in this section, the term <term>compensation committee</term>
means—</text>
<subparagraph id="H507C7AADE358410CAE45EB1D92381637"><enum>(A)</enum><text>a committee (or
equivalent body) established by and amongst the board of directors of an issuer
for the purpose of determining and approving the compensation arrangements for
the executive officers of the issuer; and</text>
</subparagraph><subparagraph id="HD78771725ADC4220B3018532A1548666"><enum>(B)</enum><text>if no such
committee exists with respect to an issuer, the independent members of the
entire board of directors.</text>
</subparagraph></paragraph></subsection><subsection id="HC3548EB454FE4728855DD584FE5FA0AE"><enum>(c)</enum><header>Independence
standards for compensation consultants and other committee
advisors</header><text>Any compensation consultant or other similar adviser to
the compensation committee of any issuer shall meet standards for independence
established by the Commission by regulation.</text>
</subsection><subsection id="HCF6AD3D6EDA6486E8678AD3BE5F1DDA5"><enum>(d)</enum><header>Compensation
Committee authority relating to compensation consultants</header>
<paragraph id="H12EEB30BE36B409D9C7EB3E580BB105B"><enum>(1)</enum><header>In
general</header><text>The compensation committee of each issuer, in its
capacity as a committee of the board of directors, shall have the authority, in
its sole discretion, to retain and obtain the advice of a compensation
consultant meeting the standards for independence promulgated pursuant to
subsection (c), and the compensation committee shall be directly responsible
for the appointment, compensation, and oversight of the work of such
independent compensation consultant. This provision shall not be construed to
require the compensation committee to implement or act consistently with the
advice or recommendations of the compensation consultant, and shall not
otherwise affect the compensation committee’s ability or obligation to exercise
its own judgment in fulfillment of its duties.</text>
</paragraph><paragraph id="HA5E1B8F1F854424D8F48E098056BF770"><enum>(2)</enum><header>Disclosure</header><text display-inline="yes-display-inline">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 the Corporate and Financial Institution Compensation
Fairness Act of 2009, each issuer shall disclose in the proxy or consent
material, in accordance with regulations to be promulgated by the Commission
whether the compensation committee of the issuer retained and obtained the
advice of a compensation consultant meeting the standards for independence
promulgated pursuant to subsection (c).</text>
</paragraph><paragraph id="H0058424FF1A347028241AEB54B238B27"><enum>(3)</enum><header>Regulations</header><text display-inline="yes-display-inline">In promulgating regulations under this
subsection or any other provision of law with respect to compensation
consultants, the Commission shall ensure that such regulations are
competitively neutral among categories of consultants and preserve the ability
of compensation committees to retain the services of members of any such
category.</text>
</paragraph></subsection><subsection id="HE0BADCCE880140CBBE16F195247173EE"><enum>(e)</enum><header>Authority To
engage independent counsel and other advisors</header><text>The compensation
committee of each issuer, in its capacity as a committee of the board of
directors, shall have the authority, in its sole discretion, to retain and
obtain the advice of independent counsel and other advisers meeting the
standards for independence promulgated pursuant to subsection (c), and the
compensation committee shall be directly responsible for the appointment,
compensation, and oversight of the work of such independent counsel and other
advisers. This provision shall not be construed to require the compensation
committee to implement or act consistently with the advice or recommendations
of such independent counsel and other advisers, and shall not otherwise affect
the compensation committee’s ability or obligation to exercise its own judgment
in fulfillment of its duties.</text>
</subsection><subsection id="H1579DD24F9CE4A7FACB5514DF2FEE4C0"><enum>(f)</enum><header>Funding</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 compensation—</text>
<paragraph id="HE6C1256DE73046D2BD95510261399BC1"><enum>(1)</enum><text>to any
compensation consultant to the compensation committee that meets the standards
for independence promulgated pursuant to subsection (c), and</text>
</paragraph><paragraph id="HEE561FC5EB734160A13CCEADA0832C8B"><enum>(2)</enum><text>to any independent
counsel or other adviser to the compensation
committee.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H0C8859BA74814E29B657A45EA0A32679"><enum>(b)</enum><header>Study and review
required</header>
<paragraph commented="no" id="HD6CA8683BA754DB9A0C64DD7A7EE93C9"><enum>(1)</enum><header>In
general</header><text>The Securities and Exchange Commission shall conduct a
study and review of the use of compensation consultants meeting the standards
for independence promulgated pursuant to section 10B(c) of the Securities
Exchange Act of 1934 (as added by subsection (a)), and the effects of such
use.</text>
</paragraph><paragraph commented="no" id="HD387D57AD5B4421EB91DC6217588E002"><enum>(2)</enum><header>Report to
Congress</header><text display-inline="yes-display-inline">Not later than 2
years after the rules required by the amendment made by this section take
effect, the Commission shall submit a report to the Congress on the results of
the study and review required by this paragraph.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H4FE4C529152D421EAC266FE88B5BD015" section-type="subsequent-section"><enum>2004.</enum><header>Enhanced
compensation structure reporting to reduce perverse incentives</header>
<subsection id="H2D2A63D5C88D48689A2379976F7CB5B5"><enum>(a)</enum><header>Enhanced
disclosure and reporting of compensation arrangements</header>
<paragraph id="HBFA88DB4EC7749D9B32C0EAC40F7192B"><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 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="H57E3B38A78A944A6842C3B7E4450DAF5"><enum>(A)</enum><text>is aligned with
sound risk management;</text>
</subparagraph><subparagraph id="H7708A77AD29E42C5BC6729E66828F69E"><enum>(B)</enum><text>is structured to
account for the time horizon of risks; and</text>
</subparagraph><subparagraph id="H7AACBE66761F4F8FB0B60BFD043E599D"><enum>(C)</enum><text>meets such other
criteria as the appropriate Federal regulators jointly may determine to be
appropriate to reduce unreasonable incentives offered by such institutions for
employees to take undue risks that—</text>
<clause id="HFED3E477C6614C6980023DC9100D1DC9"><enum>(i)</enum><text>could threaten the
safety and soundness of covered financial institutions; or</text>
</clause><clause id="H191780AC169E4E67AD0A01ED06A9D429"><enum>(ii)</enum><text display-inline="yes-display-inline">could have serious adverse effects on
economic conditions or financial stability.</text>
</clause></subparagraph></paragraph><paragraph id="H06E556AE59B44E3E9D6D7916470720DF"><enum>(2)</enum><header>Rules of
construction</header><text display-inline="yes-display-inline">Nothing in this
subsection shall be construed as requiring the reporting of the actual
compensation of particular individuals. Nothing in this subsection 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="HC7E994827C5E416695FA2E2616B8B736"><enum>(b)</enum><header>Prohibition on
certain compensation arrangements</header><text display-inline="yes-display-inline">Not later than 9 months after the date of
enactment of this title, and taking into account the factors described in
subparagraphs (A), (B), and (C) of subsection (a)(1), the appropriate Federal
regulators shall jointly prescribe regulations that prohibit any
incentive-based payment arrangement, or any feature of any such arrangement,
that the regulators determine encourages inappropriate risks by covered
financial institutions that—</text>
<paragraph id="H92107ECC3B384FFCAEC2E1521A32A1CC"><enum>(1)</enum><text>could threaten the
safety and soundness of covered financial institutions; or</text>
</paragraph><paragraph id="HFD41BF9E84004602B7ADE6A9407F1762"><enum>(2)</enum><text>could have serious
adverse effects on economic conditions or financial stability.</text>
</paragraph></subsection><subsection id="H03BF1C08C7CB41B2A2ADA3A3A8163862"><enum>(c)</enum><header>Enforcement</header><text>The
provisions of 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 shall be treated as a violation of subtitle A of title V of such
Act.</text>
</subsection><subsection id="H82F7D94F143542E19F408EBAAE0347FB"><enum>(d)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="H355B320FFEB44425B9290FFCC6023DC2"><enum>(1)</enum><text>the term
<term>appropriate Federal regulator</term> means—</text>
<subparagraph id="HEB8545B560C84ADCB80C89BB57278C2B"><enum>(A)</enum><text>the Board of
Governors of the Federal Reserve System;</text>
</subparagraph><subparagraph id="H0F832F5AA15F480CB2318D48BB5EAECB"><enum>(B)</enum><text>the Office of the
Comptroller of the Currency;</text>
</subparagraph><subparagraph id="H1C0626C1B33344F8886264442FC9F5E5"><enum>(C)</enum><text>the Board of
Directors of the Federal Deposit Insurance Corporation;</text>
</subparagraph><subparagraph id="H2B27AD28D6924D84920F3DCC66578E7A"><enum>(D)</enum><text>the Director of
the Office of Thrift Supervision;</text>
</subparagraph><subparagraph id="HCC527A9F732E490FB7409318F00231AB"><enum>(E)</enum><text>the National
Credit Union Administration Board;</text>
</subparagraph><subparagraph id="HA1E17C4E6A4E4A6B8320ACD681C9B508"><enum>(F)</enum><text>the Securities and
Exchange Commission; and</text>
</subparagraph><subparagraph id="HC8C4C1A950974E6D9B13024C8293DFD9"><enum>(G)</enum><text display-inline="yes-display-inline">the Federal Housing Finance Agency;
and</text>
</subparagraph></paragraph><paragraph commented="no" id="H873981030C344088A80A094535842998"><enum>(2)</enum><text>the term
<term>covered financial institution</term> means—</text>
<subparagraph commented="no" id="HD3830144FE324339896DE1A7351547E3"><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 commented="no" id="H17B90CB309B141C898E37D2198C850E9"><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 commented="no" id="H8B1C90D1C72A413A8A71C69AD1BB9635"><enum>(C)</enum><text display-inline="yes-display-inline">a credit union, as described in section
19(b)(1)(A)(iv) of the Federal Reserve Act;</text>
</subparagraph><subparagraph commented="no" id="H56E9E2C0D68643579E954B9EBAB12ACD"><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="H65DEB22FE7D84852BDF7B5B8EBD1F704"><enum>(E)</enum><text display-inline="yes-display-inline">the Federal National Mortgage
Association;</text>
</subparagraph><subparagraph id="H98512CA2EFCB47C8900D189E151596D2"><enum>(F)</enum><text display-inline="yes-display-inline">the Federal Home Loan Mortgage Corporation;
and</text>
</subparagraph><subparagraph commented="no" id="H291CDFC9AE124CEEBED8CE060C6D3C70"><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="H5B3A36DC6643412F95387B2D1780C2A4"><enum>(e)</enum><header>Exemption for
certain financial institutions</header><text display-inline="yes-display-inline">The requirements of this section shall not
apply to covered financial institutions with assets of less than
$1,000,000,000.</text>
</subsection><subsection id="H05A382B07529418190DC6A044A9A6E5B"><enum>(f)</enum><header>Limitation</header><text>No
regulation promulgated pursuant to this section shall be allowed to require the
recovery of incentive-based compensation under compensation arrangements in
effect on the date of enactment of this title, provided such compensation
agreements are for a period of no more than 24 months. Nothing in this title
shall prevent or limit the recovery of incentive-based compensation under any
other applicable law.</text>
</subsection><subsection id="H84B52803C7714283864C67DE710C7C28"><enum>(g)</enum><header>GAO
Study</header>
<paragraph id="HA4B8D444A5A14AFF97F802178E8211B3"><enum>(1)</enum><header>Study
required</header>
<subparagraph id="H9C8BAE364E3E4643A30028D9A926101F"><enum>(A)</enum><header>In
general</header><text>The Comptroller General of the United States shall carry
out a study to determine whether there is a correlation between compensation
structures and excessive risk taking.</text>
</subparagraph><subparagraph id="H477BB3C0AD5E4B829C841ED3A931F53C"><enum>(B)</enum><header>Factors to
consider</header><text>In carrying out the study required under subparagraph
(A), the Comptroller General shall—</text>
<clause id="H6615956692A64C6882BAF07926892FC6"><enum>(i)</enum><text>consider
compensation structures used by companies from 2000 to 2008; and</text>
</clause><clause id="HEE22A3E5C0944F52A6FFB5B1EEE2D548"><enum>(ii)</enum><text>compare companies
that failed, or nearly failed but for government assistance, to companies that
remained viable throughout the housing and credit market crisis of 2007 and
2008, including the compensation practices of all such companies.</text>
</clause></subparagraph><subparagraph id="H768F6BE9C6C94A8EBC3EDE6A7F8DEBA0"><enum>(C)</enum><header>Determining
companies that failed or nearly failed</header><text display-inline="yes-display-inline">In determining whether a company failed, or
nearly failed but for government assistance, for purposes of subparagraph
(B)(ii), the Comptroller General shall focus on—</text>
<clause id="H049A80D028834F97BAE231EC1C0DDB43"><enum>(i)</enum><text>companies that
received exceptional assistance under the Troubled Asset Relief Program under
title I of the Emergency Economic Stabilization Act of 2009 (12 U.S.C. 5211 et
seq.) or other forms of significant government assistance, including under the
Automotive Industry Financing Program, the Targeted Investment Program, the
Asset Guarantee Program, and the Systemically Significant Failing Institutions
Program;</text>
</clause><clause id="H26D2D1C9AFFD481B993233D2E142AC81"><enum>(ii)</enum><text>the
Federal National Mortgage Association;</text>
</clause><clause id="H5D3AE8CFB6214976991DC6D333057476"><enum>(iii)</enum><text>the Federal Home
Loan Mortgage Corporation; and</text>
</clause><clause id="H35403AC999284A70AD2F81FCFBF4CF47"><enum>(iv)</enum><text>companies that
participated in the Security and Exchange Commission’s Consolidated Supervised
Entities Program as of January 2008.</text>
</clause></subparagraph></paragraph><paragraph id="HB9C6ED647F4F42C6AB9ACF8CFCCB1CC8"><enum>(2)</enum><header>Report</header><text>Not
later than the end of the 1-year period beginning on the date of the enactment
of this title, the Comptroller General shall issue a report to the Congress
containing the results of the study required under paragraph (1).</text>
</paragraph></subsection></section><enum>III</enum><header>Over-the-Counter
Derivatives Markets Act</header>
<section id="H955F9CA163204AFFB8CE0D903DB2E746" section-type="subsequent-section"><enum>3001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Over-the-Counter Derivatives
Markets Act of 2009</short-title></quote>.</text>
</section><subtitle id="HE38D510A2191441588521121F9A98C70"><enum>A</enum><header>Regulation of Swap
Markets</header>
<section id="HB27F9C6F563B4C97B16ABC40340EC677"><enum>3101.</enum><header>Definitions</header>
<subsection id="H82531D10E2AD4FEBA86B77EADB087786"><enum>(a)</enum><header>Amendments to
definitions in the Commodity Exchange Act</header><text>Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) is amended—</text>
<paragraph id="H3C1FB9D188CB427086EDC69642E5AB88"><enum>(1)</enum><text>by redesignating
paragraphs (9) through (34) as paragraphs (10) through (35),
respectively;</text>
</paragraph><paragraph id="HF56BB8E984194E02B45F44E67F3DA4D1"><enum>(2)</enum><text>by adding after
paragraph (8) the following:</text>
<quoted-block id="HC69F76BFA51D48C883BC13A130E55272" style="OLC">
<paragraph id="H00923F143C68405C96C056AB810A2A49"><enum>(9)</enum><header>Derivative</header><text>The
term <term>derivative</term> means—</text>
<subparagraph id="HEEE8B0600EA44C68978110A6CF0E9B8E"><enum>(A)</enum><text>a contract of sale
of a commodity for future delivery; or</text>
</subparagraph><subparagraph id="H1B23F87A31294A7C80C0469C9A6F6E75"><enum>(B)</enum><text>a
swap.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA339B0207A704A3EB9ECAD379289AC1E"><enum>(3)</enum><text>by redesignating
paragraph (35) (as redesignated by paragraph (1)) as paragraph (36);</text>
</paragraph><paragraph id="H87C8049B7E4F4E78B536448E70E2CCC1"><enum>(4)</enum><text display-inline="yes-display-inline">by adding after paragraph (34) (as
redesignated by paragraph (1)) the following:</text>
<quoted-block id="H3A2FD2D221994036A2F9475222095BE9" style="OLC">
<paragraph id="H79B7D497D5D6480CA289E4E719FCD707"><enum>(35)</enum><header>Swap</header>
<subparagraph id="HF920BF2D912548D5852A80038B6D2C42"><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 that—</text>
<clause id="HC1DA5C1FB9234482B7B64A33BDB32124"><enum>(i)</enum><text>is
a put, call, cap, floor, collar, or similar option of any kind for the purchase
or sale of, or based on the value of, one 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="HCE4D0FB7EE294D6B83924CB97FFCCEF9"><enum>(ii)</enum><text>provides for any
purchase, sale, payment, or delivery (other than a dividend on an equity
security) that is dependent on the occurrence, non-occurrence, or the extent of
the occurrence of an event or contingency associated with a potential
financial, economic, or commercial consequence;</text>
</clause><clause id="H6DEB41EA566740D8AD3E9B3FB42EFB79"><enum>(iii)</enum><text>provides on an
executory basis for the exchange, on a fixed or contingent basis, of one or
more payments based on the value or level of one 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 an interest rate swap, a rate floor,
rate cap, rate collar, cross-currency rate swap, basis swap, currency swap,
total return swap, equity index swap, equity swap, debt index swap, debt swap,
credit spread, credit default swap, credit swap, weather swap, energy swap,
metal swap, agricultural swap, emissions swap, or commodity swap;</text>
</clause><clause id="HF89D458AE7AE4812896B0B22DD34029B"><enum>(iv)</enum><text>is an agreement,
contract, or transaction that is, or in the future becomes, commonly known to
the trade as a swap; or</text>
</clause><clause id="H2A356A23566D4DE792FEAD56E53C4805"><enum>(v)</enum><text>is
any combination or permutation of, or option on, any agreement, contract, or
transaction described in any of clauses (i) through (iv).</text>
</clause></subparagraph><subparagraph id="HF885372EF000430B859F4317CCBBAC10"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>swap</term> does not include:</text>
<clause id="H7B5773AA3A364415B2690CCF397F2306"><enum>(i)</enum><text>any contract of
sale of a commodity for future delivery or security futures product traded on
or subject to the rules of any board of trade designated as a contract market
under section 5 or 5f;</text>
</clause><clause id="H0E4B8BFD6FDE4E4DBD2C4C4892D1CE57"><enum>(ii)</enum><text>any sale of a
nonfinancial commodity for deferred shipment or delivery, so long as such
transaction is physically settled;</text>
</clause><clause id="HCFFE995984324C0D90D3F509836286FD"><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 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.);</text>
</clause><clause id="HF17588ADCD47485B9EFCD63DBB71098D"><enum>(iv)</enum><text>any put, call,
straddle, option, or privilege relating to 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="H3AEAECF8ED0946838275B38245A135A8"><enum>(v)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of one or more
securities on a fixed 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.);</text>
</clause><clause id="H1A61927EAC0342ED8121B09426A6AB32"><enum>(vi)</enum><text>any agreement,
contract, or transaction providing for the purchase or sale of one 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 such agreement, contract, or transaction predicates such
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="HAE8900AE84E14941B6C7A716C52F5F25"><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="HE2AF13A3989446399781CBB379F688D8"><enum>(viii)</enum><text>any agreement,
contract, or transaction that is—</text>
<subclause id="H96250ABDFBCC48EFA03F0E4F330B8429"><enum>(I)</enum><text>based on a
security; and</text>
</subclause><subclause id="HA65B8FB142564841843F52CDA01FA39A"><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 such agreement, contract, or
transaction is entered into to manage a risk associated with capital
raising;</text>
</subclause></clause><clause id="HD6157A8B156D49DDA9AADCD4D2DAE913"><enum>(ix)</enum><text>any foreign
exchange swap;</text>
</clause><clause id="H0C84E96D2A2543629F8DFAD21476F0E2"><enum>(x)</enum><text>any foreign
exchange forward;</text>
</clause><clause id="H73DA8238325044B3A4E5B86EC4D7FA9E"><enum>(xi)</enum><text>any agreement,
contract, or transaction a counterparty of which is a Federal Reserve bank or
the United States Government, or an agency of the United States Government that
is expressly backed by the full faith and credit of the United States;
and</text>
</clause><clause id="H01EA97E127C446B8AB845A5991D5556B"><enum>(xii)</enum><text>any
security-based swap, other than a security-based swap as described in paragraph
(38)(C).</text>
</clause></subparagraph><subparagraph id="H05B8FC084B2F4F8CBF55C85CF1AB10D1"><enum>(C)</enum><header>Rule of
construction regarding master agreements</header><text>The term
<term>swap</term> shall be construed to include a master agreement that
provides for an agreement, contract, or transaction that is a 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 swap pursuant to subparagraph (A), except that the
master agreement shall be considered to be a swap only with respect to each
agreement, contract, or transaction under the master agreement that is a swap
pursuant to subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H79977C480EA244D283D479AC48853898"><enum>(5)</enum><text display-inline="yes-display-inline">in paragraph (13) (as redesignated by
paragraph (1))—</text>
<subparagraph id="H3A9F784C7FE04EF6A47ABE56C1E3B56B"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="H36C8808C5DC3499AA885A10DD28BDEFA"><enum>(i)</enum><text>in
clause (vii), by striking <quote>$25,000,000</quote> and inserting
<quote>$50,000,000</quote>; and</text>
</clause><clause id="HE8D9D28BCBA04F04B612784011747BD2"><enum>(ii)</enum><text>in
clause (xi), by striking <quote>total assets in an amount</quote> and inserting
<quote>amounts invested on a discretionary basis</quote>; and</text>
</clause></subparagraph><subparagraph id="H42C7000179ED4CAF9093DBC94C8CED42"><enum>(B)</enum><text>in subparagraph
(C), by striking <quote>determines</quote> and inserting <quote>and the
Securities and Exchange Commission may jointly determine</quote>;</text>
</subparagraph></paragraph><paragraph id="H9233CA85E8A04F5AB830A3CA657949CB"><enum>(6)</enum><text display-inline="yes-display-inline">in paragraph (30) (as redesignated by
paragraph (1)), by—</text>
<subparagraph id="H6A9B919B310949518F45F4946EF2CE28"><enum>(A)</enum><text>redesignating
subparagraph (E) as subparagraph (G);</text>
</subparagraph><subparagraph id="H4C2D2084662F4EAD9C1DDFB2B6F71156"><enum>(B)</enum><text>in subparagraph
(D), by striking <quote>and</quote>; and</text>
</subparagraph><subparagraph id="H1CC61E86C38B4BDA8862ABBE868FB036"><enum>(C)</enum><text>inserting after
subparagraph (D) the following:</text>
<quoted-block id="HD3F486A102464598B3F84AF1F130670C" style="OLC">
<subparagraph id="H15C042E982BD4832BE17210E56F9BFB5"><enum>(E)</enum><text>a swap execution
facility registered under section 5h;</text>
</subparagraph><subparagraph id="H3F93A712E8A14BFE893AC0DB421C6D39"><enum>(F)</enum><text>a swap repository;
and</text>
</subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5877F712A61A485298E3A718F8097142"><enum>(7)</enum><text display-inline="yes-display-inline">by adding after paragraph (36) (as
redesignated by paragraph (3)) the following:</text>
<quoted-block id="H77ED69752DA648A0A46E0B0817E67EF4" style="OLC">
<paragraph id="HDD1EE61CEAC849FE9B24A4C7401F90F3"><enum>(37)</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 id="HD87D4ACD62CB4CCE8FCD970CB1299315"><enum>(8)</enum><text>by adding after
paragraph (37) the following:</text>
<quoted-block id="HBA1C814B6CD64D47A982AA76B419517A" style="OLC">
<paragraph id="H939591074AE2492A97C083AE7A8D2137"><enum>(38)</enum><header>Security-based
swap</header>
<subparagraph id="H3B93A9EE353B4EDA903131457AB75FBC"><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 would be a swap under paragraph (35) (without regard to paragraph
(35)(B)(xii)), and that—</text>
<clause id="H0012E71A715F4D0EB0A0087F09187BD7"><enum>(i)</enum><text>is
based on an index that is a narrow-based security index, including any interest
therein or based on the value thereof;</text>
</clause><clause id="HF3DACC144D954ED3B2B162B22E609FE1"><enum>(ii)</enum><text>is based on a
single security or loan, including any interest therein or based on the value
thereof; or</text>
</clause><clause id="H01C481ADBD43474EA4C65704AF43E1A3"><enum>(iii)</enum><text>is based on the
occurrence, non-occurrence, 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 must directly affect the financial
statements, financial condition, or financial obligations of the issuer.</text>
</clause></subparagraph><subparagraph id="H21F4B697B5DF4FBC9552D6CF3096813C"><enum>(B)</enum><header>Exclusion</header><text>The
term <term>security-based swap</term> does not include any agreement, contract,
or transaction that meets the definition of security-based swap only because it
references or is based upon a government security.</text>
</subparagraph><subparagraph id="H326C127372C34173841650FAA781BFA3"><enum>(C)</enum><header>Mixed
swap</header><text>The term <term>security-based swap</term> includes any
agreement, contract, or transaction that is as described in subparagraph (A)
and also is based on the value of one 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="H7F9041EAD8FC4A61B706ACFEFAED80FD"><enum>(D)</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></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF86C07D10C8E40B687DE411C8EE387C0"><enum>(9)</enum><text display-inline="yes-display-inline">by adding after paragraph (38) the
following:</text>
<quoted-block id="H11F12919C31E41D18CA6A46E1606FAE2" style="OLC">
<paragraph id="HB8D1337A10F9414EAF4C0FB9483A996C"><enum>(39)</enum><header>Swap
dealer</header>
<subparagraph id="HC9315CB5F3C54DBD9FC8EB1E5C3D771D"><enum>(A)</enum><header>In
general</header><text>The term <term>swap dealer</term> means any person
engaged in the business of buying and selling swaps for such person’s own
account, through a broker or otherwise.</text>
</subparagraph><subparagraph id="H8CFE637698EB4EAD8FAB79E1480BE343"><enum>(B)</enum><header>Exception</header><text>The
term <term>swap dealer</term> does not include a person that buys or sells
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></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA7D7A60EBC4147D4913BCA72447F07EB"><enum>(10)</enum><text display-inline="yes-display-inline">by adding after paragraph (39) the
following:</text>
<quoted-block id="HC4EA07ABAB57417EB6F31BEB3ECC353D" style="OLC">
<paragraph id="HC6BF1A4423DB4FAEA01841E857DFDFCD"><enum>(40)</enum><header>Major swap
participant</header>
<subparagraph id="H426323B4CD2C4C2C976373508AA523DC"><enum>(A)</enum><header>In
general</header><text>The term <quote>major swap participant</quote> means any
person who is not a swap dealer and—</text>
<clause id="H48EA21B0B28446B7A3477D7C10160B54"><enum>(i)</enum><text>who maintains a
substantial net position in outstanding swaps, excluding positions held
primarily for hedging, reducing, or otherwise mitigating commercial risk;
or</text>
</clause><clause id="H03B936F26C6D4F75B80DF5365ABA9499"><enum>(ii)</enum><text>whose outstanding
swaps create substantial net counterparty exposure (current and potential
future) that would expose counterparties to significant credit losses that
could have a material adverse effect on capital of the counterparties.</text>
</clause></subparagraph><subparagraph id="H13564FA574454002BC812CEC9B52CDF4"><enum>(B)</enum><header>Definitions</header><text>The
Commission and the Securities and Exchange Commission shall jointly define by
rule or regulation the term <quote>substantial net position</quote> and
<quote>substantial net counterparty exposure</quote> at a threshold that the
Commissions determine prudent for the effective monitoring of, management and
oversight of the financial system. In the event the Commissions are unable to
agree upon a level within 60 days of the commencement of such consultations,
the Secretary of the Treasury shall make such determination, which shall be
binding on and adopted by such Commissions.</text>
</subparagraph></paragraph><paragraph id="H89FB4A61ACDB4D2BA41C1565F2C2C1F5"><enum>(41)</enum><header>Major
security-based swap participant</header>
<subparagraph id="HAF2E3FDECA3242209ADF71A66225E454"><enum>(A)</enum><header>In
general</header><text>The term <quote>major security-based swap
participant</quote> means any person who is not a swap dealer and—</text>
<clause id="H7B77A81C678D4F37BFF417D47101EEA9"><enum>(i)</enum><text>who maintains a
substantial net position in outstanding security-based swaps, excluding
positions held primarily for hedging, reducing, or otherwise mitigating
commercial risk; or</text>
</clause><clause id="H39400AC2EA9047C2AD4C5B713C1A43AD"><enum>(ii)</enum><text>whose outstanding
security-based swaps create substantial net counterparty exposure (current and
potential future) that would expose counterparties to significant credit losses
that could have a material adverse effect on capital of the
counterparties.</text>
</clause></subparagraph><subparagraph id="HD124ECCB23E547228F7AD43481AB26DF"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">The Commission and the Securities and
Exchange Commission shall jointly define by rule or regulation the term
<quote>substantial net position</quote> and <quote>substantial net counterparty
exposure</quote> at a threshold that the Commissions determine prudent for the
effective monitoring of, management and oversight of the financial system. In
the event the Commissions are unable to agree upon a level within 60 days of
the commencement of such consultations, the Secretary of the Treasury shall
make such determination, which shall be binding on and adopted by such
Commissions.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD5A8AF8D2781469CBCE5941457C5DE05"><enum>(11)</enum><text display-inline="yes-display-inline">by adding after paragraph (41) the
following:</text>
<quoted-block id="H223513A507A4407F9A98CBBEBFFBB220" style="OLC">
<paragraph id="H0130EF2FC8494BFE87D132F69E6B087C"><enum>(42)</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><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H57CDE0AA607C408C9D63BD2EBCCB4EAF"><enum>(12)</enum><text display-inline="yes-display-inline">by adding after paragraph (42) the
following:</text>
<quoted-block id="HC615D389B739405690C1034ADEC90322" style="OLC">
<paragraph id="H10BCCA59CDA34E159351A20165B6659E"><enum>(43)</enum><header>Prudential
regulator</header><text>The term <term>Prudential Regulator</term>
means—</text>
<subparagraph id="H5B1EA23924CF47FB93251B73CAA9EE7B"><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="HD00B508BCA8D43F8B0E804F860E0EEFC"><enum>(i)</enum><text>a
State-chartered bank that is a member of the Federal Reserve System; or</text>
</clause><clause id="H09281884F66146C7BCCA4BFE8E72202F"><enum>(ii)</enum><text>a
State-chartered branch or agency of a foreign bank;</text>
</clause></subparagraph><subparagraph id="HA6FC5D5B16324DF39E187A0663EFD39B"><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="HEB466595D6004E96AD0A6E20CEB1E132"><enum>(i)</enum><text>a
national bank; or</text>
</clause><clause id="HA95C7349E49A4750AEDA6FD8D2B80C3A"><enum>(ii)</enum><text>a
federally chartered branch or agency of a foreign bank; and</text>
</clause></subparagraph><subparagraph id="H6F80C20262FB4C75B83B4A204F2C4DC1"><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 a State-chartered bank that is not a member of the Federal
Reserve
System.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD7AE9792A6B3424CA759DC0EF3953E4E"><enum>(13)</enum><text>by adding after
paragraph (43) the following:</text>
<quoted-block id="HE339D48E345744608E3CB698F7FCD5ED" style="OLC">
<paragraph id="HE91A48CDC6E048B4ADD371C86C232141"><enum>(44)</enum><header>Security-based
swap dealer</header><text></text>
<subparagraph id="H80A07258435B465284269D61DFBE208B"><enum>(A)</enum><header>In
general</header><text>The term <term>security-based swap dealer</term> means
any person engaged in the business of buying and selling security-based swaps
for such person’s own account, through a broker or otherwise.</text>
</subparagraph><subparagraph id="HDC2522E7B3DF47D1B387B0DFD7416954"><enum>(B)</enum><header>Exception</header><text>The
term <term>security-based swap dealer</term> does not include a person that
buys or sells security-based 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></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H436096916F824343A2CB99CE635FC666"><enum>(14)</enum><text>by adding after
paragraph (44) the following:</text>
<quoted-block id="H9956C2DF5C6F4932A20F500ECC8B795D" style="OLC">
<paragraph id="H0C1577C74DB0493C99536746A90786A8"><enum>(45)</enum><header>Government
security</header><text>The term <term>government security</term> has the same
meaning as in section 3(a)(42) of the Securities Exchange Act of 1934 (15
U.S.C.
78c(a)(42)).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H30605F9C40E34EF8A9F5E29E99368B89"><enum>(15)</enum><text>by adding after
paragraph (45) the following:</text>
<quoted-block id="HAC1F8E7426924755A27CF4120D838D95" style="OLC">
<paragraph id="H304E866113EA4C0594877C40958760A1"><enum>(46)</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 at the inception of the
contract.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9D4B015964574F2AA745688882FCACB2"><enum>(16)</enum><text>by adding after
paragraph (46) the following:</text>
<quoted-block id="HAE8B39C84D7B49FDA6441107FCC1D1DC" style="OLC">
<paragraph id="H07AAB0896851494AB17D99C1A91451DC"><enum>(47)</enum><header>Foreign
exchange swap</header><text>The term <term>foreign exchange swap</term> means a
transaction that solely involves the exchange of 2 different currencies on a
specific date at a fixed rate agreed at the inception of the contract, and a
reverse exchange of the same 2 currencies at a date further in the future and
at a fixed rate agreed at the inception of the
contract.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H21F205FD3F1D4EF9A8426F8755E249AA"><enum>(17)</enum><text>by adding after
paragraph (47) the following:</text>
<quoted-block id="H121F1DDB902744868EE151F4AF2B8098" style="OLC">
<paragraph id="HC199412836A14D799302C62EF45B347F"><enum>(48)</enum><header>Person
associated with a security-based swap dealer or major security-based swap
participant</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 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), 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 any employee of such security-based swap dealer or major
security-based swap participant, except that any person associated with a
security-based swap dealer or major security-based swap participant whose
functions are solely clerical or ministerial shall not be included in the
meaning of such term other than for purposes of section 15F(e)(2) of the
Securities Exchange Act of 1934 (15 U.S.C.
78o–10).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8B5894E35A60480493B1A15A6150ECE0"><enum>(18)</enum><text>by adding after
paragraph (48) the following:</text>
<quoted-block id="H4F8438D39C4049639A2B031AFBE02798" style="OLC">
<paragraph id="H8554761F22BF49EFAC209616496003D2"><enum>(49)</enum><header>Person
associated with a swap dealer or major swap participant</header><text>The term
<term>person associated with a swap dealer or major swap participant</term> or
<term>associated person of a swap dealer or major swap participant</term> means
any partner, officer, director, or branch manager of such swap dealer or major
swap participant (or any person occupying a similar status or performing
similar functions), any person directly or indirectly controlling, controlled
by, or under common control with such swap dealer or major swap participant, or
any employee of such swap dealer or major swap participant, except that any
person associated with a swap dealer or major swap participant whose functions
are solely clerical or ministerial shall not be included in the meaning of such
term other than for purposes of section
4s(b)(6).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H87F7331CF2D14CE7AAEB22EAFA9A84A5"><enum>(19)</enum><text>by adding after
paragraph (49) the following:</text>
<quoted-block id="H102BED1C633D4043B0159C11F68654E1" style="OLC">
<paragraph id="H7D01D59063C148F8A1BBADC298C874F7"><enum>(50)</enum><header>Swap
repository</header><text>The term <term>swap repository</term> means an entity
that collects and maintains the records of the terms and conditions of swaps or
security-based swaps entered into by third parties.</text>
</paragraph><paragraph id="H966E9765F6F84AAFB7B1DCCA77699086"><enum>(51)</enum><header>Restricted
owner</header><text display-inline="yes-display-inline">The term ‘restricted
owner’ means any swap dealer, security-based swap dealer, major swap
participant, major security-based swap participant, person associated with a
swap dealer or major swap participant, or person associated with a
security-based swap dealer or major security-based swap
participant.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H22761F774F2C4F89913031560DBC9B5C"><enum>(b)</enum><header>Joint rulemaking
on further definition of terms</header>
<paragraph id="H823862CDB9DC48FABFD22F0E11D85FC1"><enum>(1)</enum><header>In
general</header><text>The Commodity Futures Trading Commission and the
Securities and Exchange Commission shall jointly adopt a rule further defining
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>,<quote>major security-based swap participant</quote>, and
<quote>eligible contract participant</quote> no later than 180 days after the
effective date of this title.</text>
</paragraph><paragraph id="HFC7B8C9922F346F0BD0E8A96F125D210"><enum>(2)</enum><header>Prevention of
evasions</header><text>The Commodity Futures Trading Commission and the
Securities and Exchange Commission may prescribe rules defining the term
<term>swap</term> or <term>security-based swap</term> to include transactions
that have been structured to evade this title.</text>
</paragraph></subsection><subsection id="H1DD22DADA6724AF6B295D0926C47F837"><enum>(c)</enum><header>Joint rulemaking
under this title</header>
<paragraph id="H889D7E701BBD4AD3A9AB5AA4CE7CE81F"><enum>(1)</enum><header>Uniform
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 uniform.</text>
</paragraph><paragraph id="HCA382FD4D3634C17903BEAE9AE3B1996"><enum>(2)</enum><header>Treasury
department</header><text>In the event that the Commodity Futures Trading
Commission and the Securities and Exchange Commission fail to jointly prescribe
uniform rules and regulations under any provision of this title in a timely
manner, the Secretary of the Treasury, in consultation with the Commodity
Futures Trading Commission and the Securities and Exchange Commission, shall
prescribe rules and regulations under such provision. A rule prescribed by the
Secretary of the Treasury shall be enforced as if prescribed jointly by the
Commodity Futures Trading Commission and the Securities and Exchange Commission
and shall remain in effect until the Secretary rescinds the rule or until the
effective date of a corresponding rule prescribed jointly by the Commodity
Futures Trading Commission and the Securities and Exchange Commission in
accordance with this section, whichever is later.</text>
</paragraph><paragraph id="H60B30F650FD24286AACD25F1DF85821C"><enum>(3)</enum><header>Deadline</header><text>The
Secretary of the Treasury shall adopt rules and regulations under paragraph (2)
within 180 days of the time that the Commodity Futures Trading Commission and
the Securities and Exchange Commission failed to adopt uniform rules and
regulations.</text>
</paragraph><paragraph id="H42076F194B1041D094E378672877A402"><enum>(4)</enum><header>Treatment of
similar products</header><text>In adopting joint rules and regulations under
this title, the Commodity Futures Trading Commission and the Securities and
Exchange Commission shall prescribe requirements to treat functionally or
economically similar products similarly.</text>
</paragraph><paragraph id="H36587A8F3B6D4C84A1C7BCAD8E75D382"><enum>(5)</enum><header>Treatment of
dissimilar products</header><text>Nothing in this title shall be construed to
require the Commodity Futures Trading Commission and the Securities and
Exchange Commission to adopt joint rules that treat functionally or
economically different products identically.</text>
</paragraph><paragraph id="H818F939E37EA4FE999150652391AFDBA"><enum>(6)</enum><header>Joint
interpretation</header><text>Any interpretation of, or guidance 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
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></section><section id="H569A11ED18E64BE89F55E76071F5911B"><enum>3102.</enum><header>Jurisdiction</header>
<subsection id="HB70387E0C66046ABAC1A0584AE258728"><enum>(a)</enum><header>Exclusive
jurisdiction</header><text>The first sentence of section 2(a)(1)(A) of the
Commodity Exchange Act (7 U.S.C. 2(a)(1)(A)) is amended—</text>
<paragraph id="HAA364B637EE14BAB88687671E32AC5E2"><enum>(1)</enum><text>by striking
<quote>(C) and (D)</quote> and inserting <quote>(C), (D), and
(G)</quote>;</text>
</paragraph><paragraph id="H5338BC1EB4674B59984F08AFFAB05837"><enum>(2)</enum><text>by striking
<quote>subsections (c) through (i)</quote> and inserting <quote>subsections (c)
and (f)</quote>; and</text>
</paragraph><paragraph id="H54F833D01AFF4FF19999701E658FC99B"><enum>(3)</enum><text>by striking
<quote>involving contracts of sale</quote> and inserting <quote>involving swaps
or contracts of sale</quote>.</text>
</paragraph></subsection><subsection id="H519D0E5E3676442C8D774DF6B96A7E5E"><enum>(b)</enum><header>No
limitation</header><text>Section 2(a)(1) of the Commodity Exchange Act (7
U.S.C. 2(a)(1)) is amended by inserting after subparagraph (F) the
following:</text>
<quoted-block id="H4D85C543443640789959E9422D3CD83D" style="OLC">
<subparagraph id="H4228F446EC4C4F49B0F4640D5695C37F"><enum>(G)</enum><text>Nothing contained
in this paragraph shall supersede or limit the jurisdiction conferred on the
Securities and Exchange Commission or other regulatory authority by, or
otherwise restrict the authority of the Securities and Exchange Commission or
other regulatory authority under, the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, including with respect to a security-based swap as
described in section 1a(38)(C) of this
Act.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC65C0D640F6941058CDCF9EEAF7A006C"><enum>(c)</enum><header>Additions</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="H90711432E604432AAFDAB243D7ABC9B1"><enum>(1)</enum><text>in clause (i), by
striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H288EE738B91B40C18D44489DCDA0146E"><enum>(2)</enum><text>by redesignating
clause (ii) as clause (iii); and</text>
</paragraph><paragraph id="HE681BE63FCA640449428DCF6AAB766F8"><enum>(3)</enum><text>by inserting after
clause (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="H7E98AFBB24004EBF96E3D8D5652B505D" style="OLC">
<clause id="HDE897B1FB9F0442F9BBE35D45CB704D6"><enum>(ii) </enum><text display-inline="yes-display-inline">a swap;
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H8E67658316DB41EDB5F227D8EA505356"><enum>3103.</enum><header>Clearing</header>
<subsection id="H3E36CF8F1C8245DF8CC05FDC5FB37C69"><enum>(a)</enum><header>Clearing
requirement</header>
<paragraph id="H4C6E9560FDD64DA6AFF3F0BD18ADA807"><enum>(1)</enum><text>Sections 2(d),
2(e), 2(g), and 2(h) of the Commodity Exchange Act (7 U.S.C. 2(d), 2(e), 2(g),
and 2(h)) are repealed.</text>
</paragraph><paragraph id="H25C9F8C05B2A42359F384B099557D93D"><enum>(2)</enum><text>Section 2 of the
Commodity Exchange Act (7 U.S.C. 2) is further amended by inserting after
subsection (c) the following:</text>
<quoted-block id="H33032902670749B581CCBDC2C5338686" style="OLC">
<subsection id="H8A88A47640EE40C2BD176CC527DB6BC7"><enum>(d)</enum><header>Swaps</header><text>Nothing
in this Act (other than subsections (a)(1)(A), (a)(1)(B), (f), and (j),
sections 4a, 4b, 4b-1, 4c(a), 4c(b), 4o, 4r, 4s, 4t, 4u, 5b, 5c, 5h, 6(c),
6(d), 6c, 6d, 8, 8a, 9, 12(e)(2), 12(f), 13(a), 13(b), 21, and 22(a)(4) and
such other provisions of this Act as are applicable by their terms to
registered entities and Commission registrants) governs or applies to a
swap.</text>
</subsection><subsection id="H387AE2A76084442CA0C091DF6FFAED3F"><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="H90E34C1C4D774C699D161008AD4A0F46"><enum>(3)</enum><text>Section 2 of the
Commodity Exchange Act (7 U.S.C. 2) is further amended by inserting after
subsection (i) the following:</text>
<quoted-block id="HF745BA86429141378C423D3D7E47B25A" style="OLC">
<subsection id="H725842A8E00744E49CBA871C3A43B84C"><enum>(j)</enum><header>Clearing of
swaps</header>
<paragraph id="H5F8B9A4F304346C297781165EC50DB6E"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H37EF12EFC13A454193921022E15A5CE3"><enum>(A)</enum><header>Presumption of
clearing</header><text display-inline="yes-display-inline">A swap shall be
submitted for clearing if a derivatives clearing organization that is
registered under this Act will accept the swap for clearing.</text>
</subparagraph><subparagraph id="HEB1D91A17EB5400099EA656AAE877D8A"><enum>(B)</enum><header>Open
access</header><text display-inline="yes-display-inline">The rules of a
derivatives clearing organization described in subparagraph (A) shall—</text>
<clause id="HBE7BCFD7F2A94A9BA46A170E1FC37AE3"><enum>(i)</enum><text display-inline="yes-display-inline">prescribe that all swaps submitted to the
derivatives clearing organization with the same terms and conditions are
economically equivalent and may be offset with each other within the
derivatives clearing organization; and</text>
</clause><clause id="H1743D0E285AF4EBA95081F5491BA30A6"><enum>(ii)</enum><text>provide for
non-discriminatory clearing of a swap executed on or through the rules of an
unaffiliated designated contract market or swap execution facility.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF570C1CCF45F4435BC60FD706B2C303C"><enum>(2)</enum><header>Commission
approval</header>
<subparagraph id="H3208586AC95B4FA5B4167C0534D56792"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A derivatives
clearing organization shall submit to the Commission for prior approval each
swap, or any group, category, type, or class of swaps, that it seeks to accept
for clearing, which submission the Commission shall make available to the
public.</text>
</subparagraph><subparagraph id="H926F623C905B468F88BEE88230583204"><enum>(B)</enum><header>Deadline</header><text display-inline="yes-display-inline">The Commission shall take final action on a
request submitted pursuant to subparagraph (A) not later than 90 days after
submission of the request, unless the derivatives clearing organization
submitting the request agrees to an extension of the time limitation
established under this subparagraph. A request on which the Commission fails to
take final action within the time limitation established under this
subparagraph is deemed approved.</text>
</subparagraph><subparagraph id="H354721DE8E3846F2B1A2F9A219D52885"><enum>(C)</enum><header>Approval</header><text>The
Commission shall approve, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, any request
submitted pursuant to subparagraph (A) if the Commission finds that the request
is consistent with section 5b(c)(2).</text>
</subparagraph><subparagraph id="H27D30AA94179472C88A11950896F27E4"><enum>(D)</enum><header>Rules</header><text>Not
later than 180 days after the date of the enactment of the Over-the-Counter
Derivatives Markets Act of 2009, the Commission shall adopt rules for a
derivatives clearing organization’s submission for approval, pursuant to this
paragraph, of a swap, or a group, category, type or class of swaps, that it
seeks to accept for clearing.</text>
</subparagraph></paragraph><paragraph id="HADA860A614AF44C2827F639E854949CD"><enum>(3)</enum><header>Stay of clearing
requirement</header><text display-inline="yes-display-inline">At any time after
issuance of an approval pursuant to paragraph (2):</text>
<subparagraph id="H39B060FDDABE4C2C9D1E696605923A21"><enum>(A)</enum><header>Review
process</header><text>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="H76E13E7446614348A2766CEBAEA05651"><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="H895BA7F2940B4A47A66502A512490355"><enum>(C)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to subparagraph (A), the
Commission may—</text>
<clause id="HBC300D13DC644668B35862357535FBBF"><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 section 5b(c)(2); or</text>
</clause><clause id="H4DA33F4C13CC42EF88FF8B9A22BA3BD7"><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="H1073D786A44C48869CC2AFDAD98A12EF"><enum>(D)</enum><header>Rules</header><text>Not
later than 180 days after the date of the enactment of the Over-the-Counter
Derivatives Markets Act of 2009, 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="HBB2361690A1648E2934A104AB7364590"><enum>(4)</enum><header>Prevention of
evasion</header><text>The Commission and the Securities and Exchange Commission
shall have authority to prescribe rules under this subsection, or issue
interpretations of such rules, as necessary to prevent evasions of this Act
provided that any such rules or interpretations must be issued jointly to be
effective.</text>
</paragraph><paragraph id="H52DAFA524FA54402B0FE6D265D18157B"><enum>(5)</enum><header>Required
reporting</header>
<subparagraph id="H0CA1596A58C44327A5A3E76BC79712DE"><enum>(A)</enum><header>In
general</header><text>All swap transactions that are not accepted for clearing
by any derivatives clearing organization shall be reported to either a swap
repository described in section 21 or, if there is no repository that would
accept the swap, to the Commission pursuant to section 4r within such time
period as the Commission may by rule or regulation prescribe.</text>
</subparagraph><subparagraph id="HBB201ADA15924DD8BF9C06AD7819524C"><enum>(B)</enum><header>Authority of
swap dealer to report</header><text>Counterparties may agree which counterparty
will report the swap transaction. In transactions where only 1 counterparty is
a swap dealer, the swap dealer will report the transaction.</text>
</subparagraph></paragraph><paragraph id="HEEC6EDB251D647C6BC341AE96757603A"><enum>(6)</enum><header>Transition
rules</header><text>Rules adopted by the Commission under this section shall
provide for the reporting of data, as follows:</text>
<subparagraph id="H5BA0A033E5C54F1DB6A4EBF62140E903"><enum>(A)</enum><text>Swaps that were
entered into before the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title> shall be reported to a registered swap repository or the
Commission no later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</subparagraph><subparagraph id="HB14BA5F9A77947B0BC6595D7DDBC3E17"><enum>(B)</enum><text>Swaps that were
entered into on or after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title> shall be reported to a registered swap repository or the
Commission no later than the later of—</text>
<clause id="HAB7AB3E67BE646169D5992D8FC4ABA3F"><enum>(i)</enum><text>90
days after the effective date of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>; or</text>
</clause><clause id="H5BC23EB239E5474681E77443010C0021"><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="H6023E4C8A25646789926F71171F99FC1"><enum>(7)</enum><header>Trade
execution</header>
<subparagraph id="HD76E791E7A6F45A79CECABF1D0CD8AB9"><enum>(A)</enum><header>In
general</header><text>With respect to transactions involving swaps subject to
the clearing requirement of paragraph (1) and where both counterparties are
either swap dealers or major swap participants, such counterparties
shall—</text>
<clause id="HA0BBE8319EEA4B28A4397E59E32DBB9B"><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="H1B5BB5C82C944A86AC3C98F951AD4701"><enum>(ii)</enum><text>execute the
transaction on a swap execution facility registered with the Commission.</text>
</clause></subparagraph><subparagraph id="HDCDFF7B558114F52821745FA34D9D37F"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HF287175E884D4DBABB3078F5B76CF623"><enum>(C)</enum><header>Required
reporting</header><text display-inline="yes-display-inline">If the exception of
subparagraph (B) applies and there is no facility that makes the swap available
to trade, the counterparties shall comply with any recordkeeping and
transaction reporting requirements as may be prescribed by the Commission with
respect to swaps subject to the requirements of paragraph (1).</text>
</subparagraph></paragraph><paragraph id="H52C5DBB1D19040AD9D6D67A5C170B6D9"><enum>(8)</enum><header>Exchange
trading</header><text>In adopting rules and regulations, the Commission shall
endeavor to eliminate unnecessary impediments to the trading on boards of trade
designated as contract markets under section 5 of contracts, agreements or
transactions that would be security-based swaps but for the trading of such
contracts, agreements or transactions on such a designated contract
market.</text>
</paragraph><paragraph id="H01F3E7F3B0214192900ABA7A6397921B"><enum>(9)</enum><header>Exceptions</header><text>The
requirements of paragraph (1) shall not apply to a swap if—</text>
<subparagraph id="H9A6FC3372F934A23A765FCB4E37704BC"><enum>(A)</enum><text>no derivatives
clearing organization registered under this Act will accept the swap for
clearing; or</text>
</subparagraph><subparagraph id="H62F86F61977743EE9108DD8585CC7D8A"><enum>(B)</enum><text>one of the
counterparties to the swap is not a swap dealer or major swap
participant.</text>
</subparagraph></paragraph><paragraph id="H29B44FFAE4A4477698C2BBDBBB4BAD7A"><enum>(10)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to a swap 1
party to which is not a swap dealer or major swap participant, and which is
entered into before the end of the 90-day period that begins with the effective
date of this
paragraph.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8DB6EB4095BD4F7F87C55B991B969F1F"><enum>(b)</enum><header>Derivatives
clearing organizations</header>
<paragraph id="H45613586FC4B40EA865B16C794FA50EA"><enum>(1)</enum><text>Subsections (a)
and (b) of section 5b of the Commodity Exchange Act (7 U.S.C. 7a-1) are amended
to read as follows:</text>
<quoted-block id="H1E255C2B6B034BA08810831970BBC6BA" style="OLC">
<subsection id="H6AFACBE1EA66433484DB618C6351B53B"><enum>(a)</enum><header>Registration
requirement</header><text>It shall be unlawful for a derivatives clearing
organization, 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 derivatives clearing organization described in
section 1a(10) of this Act with respect to—</text>
<paragraph id="HCD7824969AAA4D37BF03DE45A7195A49"><enum>(1)</enum><text>a contract of sale
of a commodity for future delivery (or option on such a contract) or option on
a commodity, in each case unless the contract or option is—</text>
<subparagraph id="H8118A86247D2467E96EE1383E665A78E"><enum>(A)</enum><text>excluded from this
Act by section 2(a)(1)(C)(i), 2(c), or 2(f); or</text>
</subparagraph><subparagraph id="H72AD33B882B143A985599F38B11CA790"><enum>(B)</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>
</subparagraph></paragraph><paragraph id="H9EBCE594549545DC91E5A5AEF1D36B55"><enum>(2)</enum><text>a swap.</text>
</paragraph></subsection><subsection id="H5B95E9B131944AE6B8CAA582309E1752"><enum>(b)</enum><header>Voluntary
registration</header>
<paragraph id="HEF443E00FBAE4DF98186F1F57FA80070"><enum>(1)</enum><header>Derivatives
clearing organizations</header><text>A person that clears 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>
</paragraph><paragraph id="H7882450F1B274B72A39E1C00FED48F10"><enum>(2)</enum><header>Clearing
agencies</header><text>A derivatives clearing organization may clear
security-based swaps that are required to be cleared by a person who is
registered as a clearing agency under the Securities Exchange Act of 1934 (15
U.S.C. 78a et
seq.).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEFC2E25C300946509E8454824B694CA1"><enum>(2)</enum><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 id="H48901A02323140F0A51ED36B95F1B0A6" style="OLC">
<subsection id="HC0988A58955F46FB82468F14ED4D746D"><enum>(g)</enum><header>Required
registration for banks and clearing agencies</header><text>A person that is
required to be registered as a derivatives clearing organization under this
section shall register with the Commission regardless of whether the person is
also a bank or a clearing agency registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</subsection><subsection id="H893F4E79A80740E6A667FC79A074C755"><enum>(h)</enum><header>Harmonization of
rules</header><text>Not later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission
shall jointly adopt uniform rules governing persons that are registered as
derivatives clearing organizations for swaps under this subsection and persons
that are registered as clearing agencies for security-based swaps under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).</text>
</subsection><subsection id="HE029528BFDF34F60A6965BF21466C73E"><enum>(i)</enum><header>Consultation</header><text>The
Commission and the Securities and Exchange Commission shall consult with the
appropriate Federal banking agencies prior to adopting rules under this section
with respect to swaps.</text>
</subsection><subsection id="H2CEF8F848DB14426A593FC21647C8BC0"><enum>(j)</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 finds that such derivatives clearing organization 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 organization’s home country.</text>
</subsection><subsection id="H7865E7E3E7C14CC2AD09FB606D515158"><enum>(k)</enum><header>Designation of
compliance officer</header>
<paragraph id="H8A56F104D48E4733BC0E8654A56EBA36"><enum>(1)</enum><header>In
general</header><text>Each derivatives clearing organization shall designate an
individual to serve as a compliance officer.</text>
</paragraph><paragraph id="H85A118E013364D3AB3737A6EC1A29FF8"><enum>(2)</enum><header>Duties</header><text>The
compliance officer—</text>
<subparagraph id="HC126F0EB47F349A29345599814E2814B"><enum>(A)</enum><text>shall report
directly to the board or to the senior officer of the derivatives clearing
organization;</text>
</subparagraph><subparagraph id="H50A6CB6D0D3B405DAEC4BFB5B830B739"><enum>(B)</enum><text>shall—</text>
<clause id="H6D0AA466CC6D46518178516582DB148F"><enum>(i)</enum><text>review compliance
with the core principles in section 5b(c)(2);</text>
</clause><clause id="HF839BA955B684D6285855CFB8B5DD5DB"><enum>(ii)</enum><text>in consultation
with the board of the derivatives clearing organization, a body performing a
function similar to that of a board, or the senior officer of the derivatives
clearing organization, resolve any conflicts of interest that may arise;</text>
</clause><clause id="HEECC81B6A4C642DBAC303B5B7A0A7B8E"><enum>(iii)</enum><text>be responsible
for administering the policies and procedures required to be established
pursuant to this section; and</text>
</clause><clause id="HC0B3B4077FA446B5B80F624CD3823FEF"><enum>(iv)</enum><text>ensure compliance
with commodity laws and the rules and regulations issued thereunder, including
rules prescribed by the Commission pursuant to this section; and</text>
</clause></subparagraph><subparagraph id="HE84F939F7444496FB64AC47216B6B3CE"><enum>(C)</enum><text>shall establish
procedures for remediation of noncompliance issues found during compliance
office reviews, lookbacks, internal or external audit findings, self-reported
errors, or through validated complaints. Procedures will establish the
handling, management response, remediation, retesting, and closing of
noncompliant issues.</text>
</subparagraph></paragraph><paragraph id="H1A46672CB19F4169A61158B5945910BC"><enum>(3)</enum><header>Annual reports
required</header><text>The compliance officer shall annually prepare and sign a
report on the compliance of the derivatives clearing organization with the
commodity laws and its policies and procedures, including its code of ethics
and conflict of interest policies, in accordance with rules prescribed by the
Commission. Such compliance report shall accompany the financial reports of the
derivatives clearing organization that are required to be furnished to the
Commission pursuant to this section and shall include a certification that,
under penalty of law, the report is accurate and
complete.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H09C58EF832364F35BF749CF1140151A5"><enum>(3)</enum><text>Section 5b(c)(2)
of the Commodity Exchange Act (7 U.S.C. 7a–1(c)(2)) is amended to read as
follows:</text>
<quoted-block id="H4461EA242FAC4B14918279A33D1FFB51" style="OLC">
<paragraph id="HE14DA08FD9EC4EE3A3E2ADF5A8BABDDC"><enum>(2)</enum><header>Core principles
for derivatives clearing organizations</header><text>To be registered and to
maintain registration as a derivatives clearing organization, a derivatives
clearing organization shall comply with the core principles specified in
subparagraphs (B) through (N) this paragraph. The Commission may conform the
core principles to reflect evolving United States and international
standards.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB38DCCA220B04BE7A5678F4D2360AFFC"><enum>(4)</enum><text>Section 5b of the
Commodity Exchange Act (7 U.S.C. 7a–1) is further amended by adding after
subsection (k), as added by paragraph (2), the following:</text>
<quoted-block id="H337B49F5F342475F803BBF8944F40DF8" style="OLC">
<subsection id="HD30D67208BF0493ABA5C8B5B69F472A8"><enum>(l)</enum><header>Reporting</header>
<paragraph id="HCF50FC87CE8346ADAFCD3285A388C690"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A derivatives
clearing organization that clears swaps shall provide to the Commission and any
designated swap repository all information determined by the Commission to be
necessary to perform its responsibilities under this Act. The Commission shall
adopt data collection and maintenance requirements for swaps cleared by
derivatives clearing organizations that are comparable to the corresponding
requirements for swaps accepted by swap repositories and swaps traded on swap
execution facilities. A derivatives clearing organization that clears
security-based swap agreements (as defined in section 3(a)(76) of the
Securities Exchange Act of 1934) shall, upon request, make available to the
Securities and Exchange Commission all information (including information on a
real-time basis) relating to such security-based swap agreements. Subject to
section 8, the Commission shall share such information, upon request, with the
Board, the Securities and Exchange Commission (with respect to swaps other than
security-based swap agreements), the appropriate Federal banking agencies, the
Financial Services Oversight Council, and the Department of Justice or to other
persons the Commission deems appropriate, including foreign financial
supervisors (including foreign futures authorities), foreign central banks, and
foreign ministries.</text>
</paragraph><paragraph id="HB12E3F36312740E7A3583719D501E467"><enum>(2)</enum><header>Public
information</header><text>A derivatives clearing organization that clears swaps
shall provide to the Commission, or its designee, such information as is
required by, and in a form and at a frequency to be determined by, the
Commission, in order to comply with the public reporting requirements contained
in section
8(j).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4B6CFEDB4D9E4CE6856B0FAF81981665"><enum>(5)</enum><text>Section 8(e) of
the Commodity Exchange Act (7 U.S.C. 12(e)) is amended in the last sentence by
adding <quote>central bank and ministries</quote> after
<quote>department</quote> each place it appears.</text>
</paragraph></subsection><subsection id="H9E5B10817EF5455A892862B5EC8CBD2B"><enum>(c)</enum><header>Legal certainty
for identified banking products</header>
<paragraph id="H54116BFBC80F4C4C9E43E9E89D0F8AE5"><enum>(1)</enum><header>Repeal</header><text>Sections
402(d), 404, 407, 408(b), and 408(c)(2) of the Legal Certainty for Bank
Products Act of 2000 (7 U.S.C. 27(d), 27b, 27e, 27f(b), and 27f(c)(2)) are
repealed.</text>
</paragraph><paragraph id="H2A201E23C713424C8423C270DBCB75E9"><enum>(2)</enum><header>Legal
certainty</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="H07BB92DBC2F9449FB12B2F0C952ECD5F" style="OLC">
<section id="H19EFF6E52BB840D791D71767571EECB9"><enum>403.</enum><header>Exclusion of
identified banking product</header>
<subsection id="H2351E702C0ED47F3AA36C5CED178592D"><enum>(a)</enum><header>Exclusion</header><text>Except
as provided in subsection (b) or (c), no provisions of the Commodity Exchange
Act (7 U.S.C. 1 et seq.) shall apply to, and the Commodity Futures Trading
Commission and the Securities and Exchange Commission shall not exercise
regulatory authority under the Commodity Exchange Act with respect to, an
identified banking product.</text>
</subsection><subsection id="H28D79CC1CCB74FFE98F70E5AC937BAD6"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">An appropriate Federal banking agency may
except an identified banking product or 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 id="H89FB864D54094772978E070F6496B7BC"><enum>(1)</enum><text>would meet the
definition of swap in section 1a(35) of the Commodity Exchange Act (7 U.S.C.
1a(35)) or security-based swap in section 1a(38) of the Commodity Exchange Act
(7 U.S.C. 1a(38)); and</text>
</paragraph><paragraph id="H483AC17158614202837356DB5BB62AE7"><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="HD5916C6C54D54CAD89444DC986F54ADB"><enum>(c)</enum><header>Additional
Exception</header><text display-inline="yes-display-inline">The exclusion in
subsection (a) shall not apply to an identified banking product that—</text>
<paragraph id="HED2F313650404439A3DC8A5FA373A158"><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="HB7C266662E724B20B2A556F1A58705C4"><enum>(2)</enum><text>meets the
definition of swap in section 1a(35) of the Commodity Exchange Act or
security-based swap in section 3(a)(68) of the Securities and Exchange Act of
1934; and</text>
</paragraph><paragraph id="H439B11874BD54593ACD2D5D1C6422CF2"><enum>(3)</enum><text>has become known
to the trade as a swap or security-based swap, or 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></section><section id="HCB93547172E94048BA391D0055F0DED0"><enum>3104.</enum><header>Public
reporting of aggregate swap data</header><text display-inline="no-display-inline">Section 8 of the Commodity Exchange Act (7
U.S.C. 12) is amended by adding after subsection (i) the following:</text>
<quoted-block id="HB03ACC3EE05D47B48C13331197ACB32A" style="OLC">
<subsection id="H612E2D9779B6488D92737FFF8E5699AE"><enum>(j)</enum><header>Public reporting
of aggregate swap data</header>
<paragraph id="H99C5BF3CF4EC4AB58D588949589AF40C"><enum>(1)</enum><header>In
general</header><text>The Commission, or a person designated by the Commission
pursuant to paragraph (2), shall make available to the public, in a manner that
does not disclose the business transactions and market positions of any person,
aggregate data on swap trading volumes and positions from the sources set forth
in paragraph (3).</text>
</paragraph><paragraph id="HC980A2DEDD2E42A0A9555EA78DF9822B"><enum>(2)</enum><header>Designee of the
commission</header><text>The Commission may designate a derivatives clearing
organization or a swap repository to carry out the public reporting described
in paragraph (1).</text>
</paragraph><paragraph id="HEFC72DDCB42F4F7AA6388B4C37DF2E5B"><enum>(3)</enum><header>Sources of
information</header><text>The sources of the information to be publicly
reported as described in paragraph (1) are—</text>
<subparagraph id="H0684FA0453D440EDB4A9F2DC11DDA21B"><enum>(A)</enum><text>derivatives
clearing organizations pursuant to section 5b(k)(2);</text>
</subparagraph><subparagraph id="HAD077C73A2B347B6BD0E29F604775AD4"><enum>(B)</enum><text>swap repositories
pursuant to section 21(c)(3); and</text>
</subparagraph><subparagraph id="H4010E943866C4DAA801D580C998A81E5"><enum>(C)</enum><text>reports received
by the Commission pursuant to section
4r.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE4B161D81F1A449183577414ABFC0611"><enum>3105.</enum><header>Swap
repositories</header><text display-inline="no-display-inline">The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 20 the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3F8A799F9BF340ECAC12ABE57D335E7C" style="OLC">
<section id="HC0A60814E29E413D85C836E1D7C3D937"><enum>21.</enum><header>Swap
repositories</header>
<subsection id="HF3A0026218A149E5863B9990495A6638"><enum>(a)</enum><header>Registration
requirement</header>
<paragraph id="H3FD5CB768622463BA54F01F460FFD72E"><enum>(1)</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 repository.</text>
</paragraph><paragraph id="HE908EE6148BE42D0B0F92CF8DF678DB6"><enum>(2)</enum><header>Inspection and
examination</header><text>Registered swap repositories shall be subject to
inspection and examination by any representative of the Commission.</text>
</paragraph></subsection><subsection id="HADC18467300746748476DC86AB1CA30D"><enum>(b)</enum><header>Standard
setting</header>
<paragraph id="H4A5BDE5B982A471B8F32D5F8A0D61DC4"><enum>(1)</enum><header>Data
identification</header><text>The Commission shall prescribe standards that
specify the data elements for each swap that shall be collected and maintained
by each registered swap repository.</text>
</paragraph><paragraph id="H31EA24451BF04C2D9052D63086A20648"><enum>(2)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for swap repositories.</text>
</paragraph><paragraph id="H618D3B78696F4C029F24D2C76F13AB7A"><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 that clear swaps.</text>
</paragraph></subsection><subsection id="HC78FF942EA544E2E904DFF384661E963"><enum>(c)</enum><header>Duties</header><text>A
swap repository shall—</text>
<paragraph id="HB3E3E8CA9D5147969FE9841A8AAFF6DB"><enum>(1)</enum><text>accept data
prescribed by the Commission for each swap under subsection (b);</text>
</paragraph><paragraph id="HBC45378D6E0D4533BC1DA46B64062EEC"><enum>(2)</enum><text>maintain such data
in such form and manner and for such period as may be required by the
Commission;</text>
</paragraph><paragraph id="H3B18E3F1AF3841828DC8D361401543A9"><enum>(3)</enum><text>provide to the
Commission, or its designee, such information as is required by, and in a form
and at a frequency to be determined by, the Commission, in order to comply with
the public reporting requirements contained in section 8(j); and</text>
</paragraph><paragraph id="HAF2E971407FA4952A9A76DCA4C88D3D8"><enum>(4)</enum><text>make available, on
a confidential basis pursuant to section 8, all data obtained by the swap
repository, including individual counterparty trade and position data, to the
Commission, the appropriate Federal banking agencies, the Financial Services
Oversight Council, the Securities and Exchange Commission, and the Department
of Justice or to other persons the Commission deems appropriate, including
foreign financial supervisors (including foreign futures authorities), foreign
central banks, and foreign ministries.</text>
</paragraph></subsection><subsection id="H407A657C33314F13AD36297181BB25F8"><enum>(d)</enum><header>Required
registration for security-based swap repositories</header><text>Any person that
is required to be registered as a swap repository under this section shall
register with the Commission regardless of whether that person also is
registered with the Securities and Exchange Commission as a security-based swap
repository.</text>
</subsection><subsection id="H802D614AF5DA42C69E1EC3DA7345A3BD"><enum>(e)</enum><header>Harmonization of
rules</header><text>Not later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission
shall jointly adopt uniform rules governing persons that are registered under
this section and persons that are registered as security-based swap
repositories under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.),
including uniform rules that specify the data elements that shall be collected
and maintained by each repository.</text>
</subsection><subsection id="HEA826A3948DE4A3D8F37183E96E5F861"><enum>(f)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a swap repository from
the requirements of this section if the Commission finds that such swap
repository 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 organization’s
home
country.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8A4890BF0D0D4909BF3D67D525BCBCCD"><enum>3106.</enum><header>Reporting and
recordkeeping</header><text display-inline="no-display-inline">The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 4q the
following:</text>
<quoted-block display-inline="no-display-inline" id="H9AECACFC5E314673B2C775C96213E79F" style="OLC">
<section id="H4E3ADE333A574AE6B1421492AA4965F9"><enum>4r.</enum><header>Reporting and
recordkeeping for certain swaps</header>
<subsection id="HAEF38912235B40F982EF7EB1593A8319"><enum>(a)</enum><header>In
general</header><text>Any person who enters into a swap and—</text>
<paragraph id="HE9492FD484F74424BF790C6E9E28FF19"><enum>(1)</enum><text>did not clear the
swap in accordance with section 2(j)(1); and</text>
</paragraph><paragraph id="H2A3DD68F984D40BDB6C9C159281802D3"><enum>(2)</enum><text>did not have data
regarding the swap accepted by a swap repository in accordance with rules
(including time frames) adopted by the Commission under section 21,</text>
</paragraph><continuation-text continuation-text-level="subsection">shall
meet the requirements in subsection (b).</continuation-text></subsection><subsection id="HB0F35FA30B73401DB835C40A74866DEF"><enum>(b)</enum><header>Reports</header><text>Any
person described in subsection (a) shall—</text>
<paragraph id="H369579E6878F40D9950E9187A4B25546"><enum>(1)</enum><text>make such reports
in such form and manner and for such period as the Commission shall prescribe
by rule or regulation regarding the swaps held by the person; and</text>
</paragraph><paragraph id="HD6B3CCEB703C415BBABE0AD34EFFDE25"><enum>(2)</enum><text>keep books and
records pertaining to the swaps held by the person in such form and manner and
for such period as may be required by the Commission, which books and records
shall be open to inspection by any representative of the Commission, an
appropriate Federal banking agency, the Securities and Exchange Commission, the
Financial Services Oversight Council, and the Department of Justice.</text>
</paragraph></subsection><subsection id="H68C420B737FA4CB89CEFDA7518D2B45E"><enum>(c)</enum><header>Identical
data</header><text>In adopting rules under this section, the Commission shall
require persons described in subsection (a) to report the same or a more
comprehensive set of data than the Commission requires swap repositories to
collect under section
21.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6E5EAEAC725642F6AD093B869E3C1564"><enum>3107.</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 3106) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD4FC8701B6E54692A206130E91CF2ECB" style="OLC">
<section id="HBEC2E3E34B354B18998BB3C027D1AF17"><enum>4s.</enum><header>Registration and
regulation of swap dealers and major swap participants</header>
<subsection id="HCB83E502AE384C46A0067A7C0BE6931B"><enum>(a)</enum><header>Registration</header>
<paragraph id="HE8809A92A91F4E1BAED681526DC5B119"><enum>(1)</enum><text>It shall be
unlawful for any person to act as a swap dealer unless such person is
registered as a swap dealer with the Commission.</text>
</paragraph><paragraph id="H30C5C97215494E668582B56B5879A2AC"><enum>(2)</enum><text>It shall be
unlawful for any person to act as a major swap participant unless such person
shall have registered as a major swap participant with the Commission.</text>
</paragraph></subsection><subsection id="H6E62B4E648CF47A2907B8E6A7EECD9E2"><enum>(b)</enum><header>Requirements</header>
<paragraph id="H3BBB6B8CA5CE40D3892A65FFD4590DC4"><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="HC088357C92394A9CBB19B082497E93A2"><enum>(2)</enum><header>Contents</header><text>The
application shall be made in such form and manner as prescribed by the
Commission, giving any information and facts as the Commission may deem
necessary concerning the business in which the applicant is or will be engaged.
Such person, when registered as a swap dealer or major swap participant, shall
continue to report and furnish to the Commission such information pertaining to
such person’s business as the Commission may require.</text>
</paragraph><paragraph id="H325A5B8EC0D04A25898D5A4C5DBAF8B4"><enum>(3)</enum><header>Expiration</header><text>Each
registration shall expire at such time as the Commission may by rule or
regulation prescribe.</text>
</paragraph><paragraph id="H5D9BA7016771473990A9755EA33E127F"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (c), (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="H2F0F3AED1E0D401E9BB94041CB467102"><enum>(5)</enum><header>Transition</header><text>Rules
adopted under this section shall provide for the registration of swap dealers
and major swap participants no later than one year after the effective date of
the <short-title>Over-the-Counter Derivatives Markets Act
of 2009</short-title>.</text>
</paragraph><paragraph id="H93EC0A27E0FE4C88891FBBA97FD76C94"><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 such swap dealer or major
swap participant, if such swap dealer or major swap participant knew, or in the
exercise of reasonable care should have known, of such statutory
disqualification.</text>
</paragraph></subsection><subsection id="H19686C27A7F045AC9ECEC2B57EE42B89"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="HCA4D61D043C04A92933B26E3DD23A597"><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 that person also is a bank or is registered with the Securities and
Exchange Commission as a security-based swap dealer.</text>
</paragraph><paragraph id="H7296EFE4CE944E43B1F2A0BC3FADA13D"><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 that person also is a bank or is registered with the
Securities and Exchange Commission as a major security-based swap
participant.</text>
</paragraph></subsection><subsection id="HE06EFB2061FD4BD68BD5C0418B45191B"><enum>(d)</enum><header>Joint
rules</header>
<paragraph id="HA43938A4F96D45C5AD4059676444D818"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission
shall jointly adopt uniform rules for persons that are registered as swap
dealers or major swap participants under this section and persons that are
registered as security-based swap dealers or major security-based swap
participants under the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.).</text>
</paragraph><paragraph id="H2B2035CD1BF547AF958FFF5EF6C7A7C8"><enum>(2)</enum><header>Exception for
prudential requirements</header><text>The Commission and the Securities and
Exchange Commission shall not prescribe rules imposing prudential requirements
(including activity restrictions) on swap dealers, major swap participants,
security-based swap dealers, or major security-based swap participants for
which there is a Prudential Regulator. This provision shall not be construed as
limiting the authority of the Commission and the Securities and Exchange
Commission to prescribe appropriate business conduct, reporting, and
recordkeeping requirements to protect investors.</text>
</paragraph></subsection><subsection id="HCA54F15F287742118437027B08F6D1FD"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="H41F1E148D4C0467695B4DA304806122B"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H9FC4511B73624AB6B5718CBBBE0D590C"><enum>(A)</enum><header>Bank swap
dealers and major swap participants</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 margin requirements as the
Prudential Regulators shall by rule or regulation jointly prescribe to help
ensure the safety and soundness of the swap dealer or major swap
participant.</text>
</subparagraph><subparagraph id="H6887F14112C545EA9EC9C89063B2723C"><enum>(B)</enum><header>Nonbank swap
dealers and major swap participants</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 margin requirements as the
Commission and the Securities and Exchange Commission shall by rule or
regulation jointly prescribe to help ensure the safety and soundness of the
swap dealer or major swap participant.</text>
</subparagraph></paragraph><paragraph id="HF017164FECA34B2E91252EBC0983698D"><enum>(2)</enum><header>Joint
rules</header>
<subparagraph id="H713D1EAB4BB24B19AF0B93818F9DE30A"><enum>(A)</enum><header>Bank swap
dealers and major swap participants</header><text>Within 180 days of the
enactment of the <short-title>Over-the-Counter Derivatives
Markets Act of 2009</short-title>, the Prudential Regulators, in consultation
with the Commission and the Securities and Exchange Commission, shall jointly
adopt rules imposing capital and margin requirements under this subsection for
swap dealers and major swap participants.</text>
</subparagraph><subparagraph id="HC2227D9900384BC0B405BD575CC03329"><enum>(B)</enum><header>Nonbank swap
dealers and major swap participants</header><text>Within 180 days of the
enactment of the <short-title>Over-the-Counter Derivatives
Markets Act of 2009</short-title>, the Commission and the Securities and
Exchange Commission, in consultation with the Prudential Regulators, shall
jointly adopt rules imposing capital and margin requirements under this
subsection for swap dealers and major swap participants for which there is no
Prudential Regulator.</text>
</subparagraph></paragraph><paragraph id="HB2DFA9F8751A4F9688F12586E8658BBF"><enum>(3)</enum><header>Capital</header>
<subparagraph id="H77A2030D7CD74310B948A5272CF4A972"><enum>(A)</enum><header>Bank swap
dealers and major swap participants</header><text>In setting capital
requirements under this subsection, the Prudential Regulators shall
impose:</text>
<clause id="HD479000C7E7849D0B982FE3839E3F078"><enum>(i)</enum><text display-inline="yes-display-inline">a capital requirement that is greater than
zero for swaps that are cleared by a derivatives clearing organization;
and</text>
</clause><clause id="H8BDA1340AF4C4785AACF813AFB9D50D7"><enum>(ii)</enum><text>to offset the
greater risk to the swap dealer or major swap participant and to the financial
system arising from the use of swaps that are not centrally cleared, higher
capital requirements for swaps that are not cleared by a registered derivatives
clearing organization than for swaps that are centrally cleared.</text>
</clause></subparagraph><subparagraph id="H7318B2899A1B4E709E30C28484B321E2"><enum>(B)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to a swap
1 party to which is not a swap dealer or major swap participant, and which is
entered into before the end of the 90-day period that begins with the effective
date of this subparagraph.</text>
</subparagraph><subparagraph id="HAEBF4FA23D4A4CA6A6518084E4CB5886"><enum>(C)</enum><header>Nonbank swap
dealers and major swap participants</header><text>Capital requirements set by
the Commission and the Securities and Exchange Commission under this subsection
shall be as strict as or stricter than the capital requirements set by the
Prudential Regulators under this subsection.</text>
</subparagraph><subparagraph id="HFE5CBD7AC03F438AABD510EDD98C8B4E"><enum>(D)</enum><header>Bank holding
companies</header><text>Capital requirements set by the Board for swaps of bank
holding companies on a consolidated basis shall be as strict as or stricter
than the capital requirements set by the Prudential Regulators under this
subsection.</text>
</subparagraph><subparagraph id="H85FF70304069455783BEC7A2FEA1F452"><enum>(E)</enum><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 it is subject.</text>
</subparagraph></paragraph><paragraph id="H1AB99FD9FCF54E048ABFC2D5B90C521B"><enum>(4)</enum><header>Margin</header>
<subparagraph id="H63F8FACECADA4F9587A9328EB4A933EA"><enum>(A)</enum><header>Bank swap
dealers and major swap participants</header><text>The Prudential Regulators
shall impose margin requirements under this subsection on all swaps that are
not cleared by a registered derivatives clearing organization.</text>
</subparagraph><subparagraph id="H143B5DF716EC41B2BFAF3D642D2CB8B6"><enum>(B)</enum><header>Non-swap dealers
or major swap participants</header><text display-inline="yes-display-inline">The Prudential Regulators may, but are not
required to, impose margin requirements with respect to swaps in which one of
the counterparties is neither a swap dealer, major swap participant,
security-based swap dealer nor a major security-based swap participant. Any
such margin requirements for swaps shall provide for the use of non-cash
collateral.</text>
</subparagraph><subparagraph id="H892D61916C0A4EE5962A337AEC78EFD4"><enum>(C)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Subparagraph (B) shall not apply to a swap
1 party to which is not a swap dealer or major swap participant, and which is
entered into before the end of the 90-day period that begins with the effective
date of this subparagraph.</text>
</subparagraph><subparagraph id="H14586CB58DFE4BC0BE26DE2BB8AD7645"><enum>(D)</enum><header>Nonbank swap
dealers and major swap participants</header><text>Margin requirements for swaps
set by the Commission and the Securities and Exchange Commission under this
subsection shall be as strict as or stricter than margin requirements for swaps
set by the Prudential Regulators.</text>
</subparagraph></paragraph></subsection><subsection id="H6887F06F3F4D44BBBEC403957ECC91B4"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="HC17C49D18A064DB78B4B608B75E429BF"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap
participant—</text>
<subparagraph id="H3751AC7FDC1D4124AD899CF50BCC1CDB"><enum>(A)</enum><text>shall make such
reports as are prescribed by the Commission by rule or regulation regarding the
transactions and positions and financial condition of such person;</text>
</subparagraph><subparagraph id="H4B19C9B59D6A4AEF8FBA94AB5C74F2AC"><enum>(B)</enum><text>for which—</text>
<clause id="HA5DBA4E0252F4E5E86A2E2BAF0C99600"><enum>(i)</enum><text>there is a
Prudential Regulator shall keep books and records of all activities related to
its 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;</text>
</clause><clause id="H34C5A09DE6B749D7B4ABDA74828B2CC9"><enum>(ii)</enum><text>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="H4BE01837F33B4F9D804D195DAB569672"><enum>(C)</enum><text>shall keep such
books and records open to inspection and examination by any representative of
the Commission; and</text>
</subparagraph><subparagraph id="HEEB86DABD0084B6C95B986F5ABA07C4A"><enum>(D)</enum><text display-inline="yes-display-inline">shall keep any such books and records
relating to transactions in swaps based on one or more securities open to
inspection and examination by the Securities and Exchange Commission.</text>
</subparagraph></paragraph><paragraph id="HBB7942436DB2496296A9A0BB69D51E23"><enum>(2)</enum><header>Rules</header><text>Within
365 days of the enactment of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission,
in consultation with the appropriate Federal banking agencies, shall jointly
adopt rules governing reporting and recordkeeping for swap dealers, major swap
participants, security-based swap dealers, and major security-based swap
participants.</text>
</paragraph></subsection><subsection id="H9076C4B5F487497BA3E8AFB152645CCA"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="HAF027B062D1044A2A422A83BFF134C0D"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records of its swaps and all related records
(including related cash or forward transactions) and recorded communications
including but not limited to electronic mail, instant messages, and recordings
of telephone calls, for such period as may be prescribed by the Commission by
rule or regulation.</text>
</paragraph><paragraph id="H0173C245757F400389E5BDE7A122AB8E"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall prescribe by rule or regulation.</text>
</paragraph><paragraph id="H3F1474819E304BC48294BD62B57DAE54"><enum>(3)</enum><header>Customer
records</header><text>Each registered swap dealer and major swap participant
shall maintain daily trading records for each customer or counterparty in such
manner and form as to be identifiable with each swap transaction.</text>
</paragraph><paragraph id="H2D17A6BF4CF5484E8D3C9439740E9A79"><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="H685B2F1E13A144768AFE8E630DE42DBB"><enum>(5)</enum><header>Rules</header><text>Within
365 days of the enactment of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission,
in consultation with the appropriate Federal banking agencies, shall jointly
adopt rules governing daily trading records for swap dealers, major swap
participants, security-based swap dealers, and major security-based swap
participants.</text>
</paragraph></subsection><subsection id="H676F3E09751049A8B03A78850FEF6631"><enum>(h)</enum><header>Business conduct
standards</header>
<paragraph id="H3DD212289AEF4E6A9D4AE7CE43EBA0A6"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with business conduct standards as may be prescribed by the
Commission by rule or regulation addressing—</text>
<subparagraph id="H1BED42412134464481D6F4B3C6330714"><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="H8A7FCA39C7044EE695BC36F957EE2960"><enum>(B)</enum><text>diligent
supervision of its business as a swap dealer;</text>
</subparagraph><subparagraph id="HCD95A61316AE42798920DC22E0DB2659"><enum>(C)</enum><text>adherence to all
applicable position limits;</text>
</subparagraph><subparagraph id="HF38809F228CB4082BF44ADFFFD5E0183"><enum>(D)</enum><text>the prevention of
self-dealing, by limiting the extent to which such a swap dealer or major swap
participant may conduct business with a derivatives clearing organization, a
board of trade, or an alternative swap execution facility that clears or trades
swaps and in which such a swap dealer or major swap participant has a material
debt or equity investment; and</text>
</subparagraph><subparagraph id="H05ACEE175CE6403E91AA74A8C9EDEE38"><enum>(D)</enum><text>such other matters
as the Commission shall determine to be necessary or appropriate.</text>
</subparagraph></paragraph><paragraph id="H3836F08CA6224881BD0B4D21C5F85DEC"><enum>(2)</enum><header>Business conduct
requirements</header><text>Business conduct requirements adopted by the
Commission shall—</text>
<subparagraph id="H710FBCA773404FEF8DE62C6B83701717"><enum>(A)</enum><text>establish the
standard of care 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="H5DC9B401EABC4610AD6F79D61D4446F0"><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="H79F37E1042714B149921C162F0E34359"><enum>(i)</enum><text>information about
the material risks and characteristics of the swap;</text>
</clause><clause id="H2A300B6BF2F14C7AA8120D2730C57CCA"><enum>(ii)</enum><text display-inline="yes-display-inline">for cleared swaps, upon the request of the
counterparty, the daily mark from the appropriate clearinghouse and for
non-cleared swaps, upon the request of the counterparty, the daily mark of the
swap dealer or major swap participant; and</text>
</clause><clause id="H8F87F4CFE0F74DBFA278CDAEBD56944F"><enum>(iii)</enum><text>any other
material incentives or conflicts of interest that the swap dealer or major swap
participant may have in connection with the swap; and</text>
</clause></subparagraph><subparagraph id="H421BCFD155164AD7B3FF1A4EC26AD28F"><enum>(C)</enum><text>establish such
other standards and requirements as the Commission may determine are necessary
or 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="HB4D63D449FFD4F2FAB31F08349E07FA7"><enum>(3)</enum><header>Rules</header><text>The
Commission and the Securities and Exchange Commission, in consultation with the
appropriate Federal banking agencies, shall jointly prescribe rules under this
subsection governing business conduct standards for swap dealers, major swap
participants, security-based swap dealers, and major security-based swap
participants within 365 days of the enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</paragraph></subsection><subsection id="H761CCB2113CD4B778B19AE274A69385F"><enum>(i)</enum><header>Documentation
and back office standards</header>
<paragraph id="HA1F67D928BC54422A085F78E51A2DBCD"><enum>(1)</enum><header>In
general</header><text>Each registered swap dealer and major swap participant
shall conform with standards, as may be prescribed by the Commission by rule or
regulation, addressing timely and accurate confirmation, processing, netting,
documentation, and valuation of all swaps.</text>
</paragraph><paragraph id="H1B1CC897512A4FDEBB7ED0C857B88867"><enum>(2)</enum><header>Rules</header><text>Within
365 days of the enactment of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission,
in consultation with the appropriate Federal banking agencies, shall adopt
rules governing documentation and back office standards for swap dealers, major
swap participants, security-based swap dealers, and major security-based swap
participants.</text>
</paragraph></subsection><subsection id="HE7CC2D468D9E4E499A3ED9DA23C7C4AF"><enum>(j)</enum><header>Dealer
responsibilities</header><text>Each registered swap dealer and major swap
participant at all times shall comply with the following requirements:</text>
<paragraph id="H22B99CB191DE408992ADCC4DE05E0C15"><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="H1C23B43B2CE44249A60900A4CAF278DD"><enum>(2)</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 such swap
dealer or major swap participant, as applicable, information concerning—</text>
<subparagraph id="HC725946B49A54CEAB7D2BBB02BB81FD0"><enum>(A)</enum><text>terms and
conditions of its swaps;</text>
</subparagraph><subparagraph id="H129BE5A6456C40468CE3007D54161738"><enum>(B)</enum><text>swap trading
operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="HF565FFF84438433DB302EA0C0E82B4DE"><enum>(C)</enum><text>financial
integrity protections relating to swaps; and</text>
</subparagraph><subparagraph id="H25E6B83CEDAD4D2BAC32A357D30F89DA"><enum>(D)</enum><text>other information
relevant to its trading in swaps.</text>
</subparagraph></paragraph><paragraph id="H1C78B0EA641E4142907439C68FE84780"><enum>(3)</enum><header>Ability to
obtain information</header><text>The swap dealer or major swap participant
shall—</text>
<subparagraph id="H95198B489EF1448A95357D5F35B2A99D"><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="H900F6517FA574F7683D42B1505F42DD0"><enum>(B)</enum><text>provide the
information to the Commission and to the Prudential Regulator for such swap
dealer or major swap participant, as applicable, upon request.</text>
</subparagraph></paragraph><paragraph id="H20C4D49FB85F401B9475B332B0BDBCB8"><enum>(4)</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="HD794ECD4F8D94E18996F08EE4B987168"><enum>(A)</enum><text>establish
structural and institutional safeguards to assure 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 those whose involvement in
trading or clearing activities might potentially bias their judgment or
supervision; and</text>
</subparagraph><subparagraph id="H2952A32AF1124D54B5FD0473B4E60924"><enum>(B)</enum><text>address such other
issues as the Commission determines appropriate.</text>
</subparagraph></paragraph><paragraph id="H9A5E8B321AE944CFAD250481C18E8402"><enum>(5)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the swap dealer or major swap participant shall
avoid—</text>
<subparagraph id="HCA003D15ECC24B8E8EFACB76531E66BE"><enum>(A)</enum><text>adopting any
processes or taking any actions that result in any unreasonable restraints of
trade; or</text>
</subparagraph><subparagraph id="H583035CC5B6049679F1D4D841A877EA8"><enum>(B)</enum><text>imposing any
material anticompetitive burden on trading.</text>
</subparagraph></paragraph></subsection><subsection id="H5B2DBD1BDBCC4EFAB9FA7256E61DC9F3"><enum>(k)</enum><header>Rules</header><text>The
Commission, the Securities and Exchange Commission, and the Prudential
Regulators shall consult with each other prior to adopting any rules under the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</subsection><subsection id="H23771BC4288F4D9C914E39969F5111A9"><enum>(l)</enum><header>Exemptions</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or
unconditionally, a swap dealer or major swap participant from the prudential
requirements of the Over-the-Counter Derivatives Markets Act of 2009 if the
Commission finds that such swap dealer or major swap participant 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 organization’s home country.</text>
</subsection><subsection id="HAA422CE19F0B464B87032DB5FBCCF48E"><enum>(m)</enum><header>Exemptive
authority</header>
<paragraph id="H07D67D494CD74609B642E50BE6268E1B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission, by
rule or regulation, may conditionally or unconditionally exempt any person,
derivative, or transaction, or any class or classes of persons, derivatives, or
transactions, from any provision of this Act that was added by an amendment in
the Over-the-Counter Derivatives Markets Act of 2009, to the extent that such
exemption is necessary or appropriate in the public interest, and is consistent
with the purposes of such Act.</text>
</paragraph><paragraph id="H92D0A178AB974C79ADB07368D689AE8A"><enum>(2)</enum><header>Procedures</header><text display-inline="yes-display-inline">The Commission shall, by rule or
regulation, determine the procedures under which an exemptive order under this
subsection shall be granted and may, in its sole discretion, decline to
entertain any application for an order of exemption under this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H005D48C866734536ACD0C93CCBFFE0E6"><enum>3108.</enum><header>Segregation of
assets held as collateral in swap transactions</header><text display-inline="no-display-inline">The Commodity Exchange Act (7 U.S.C. 1 et
seq.) is further amended by inserting after section 4s the following:</text>
<quoted-block display-inline="no-display-inline" id="H666632572ADA488980E90182B60503A3" style="OLC">
<section id="HD0AB015741EF42A18C398D7EB332FDEC"><enum>4t.</enum><header>Segregation of
assets held as collateral in over-the-counter swap transactions</header>
<subsection id="H68F2493E557944ED80322A091E6C605E"><enum>(a)</enum><header>Segregation</header><text>At
the request of a swap counterparty who provides funds or other property to a
swap dealer as variation or initial margin or collateral to secure the
obligations of the counterparty under a swap between the counterparty and the
swap dealer that is not submitted for clearing to a derivatives clearing
organization, the swap dealer shall segregate the funds or other property for
the benefit of the counterparty, and maintain the variation or initial margin
or collateral in an account which is carried by an independent third-party
custodian and designated as a segregated account for the counterparty, in
accordance with such rules and regulations as the Commission or Prudential
Regulator may prescribe. If a swap counterparty is a swap dealer or major swap
participant who owns more than 20 percent of, or has more than 50 percent
representation on the board of directors of, a custodian, the custodian shall
not be considered independent from the swap counterparties for purposes of the
preceding sentence. This subsection shall not be interpreted to preclude
commercial arrangements regarding the investment of the segregated funds or
other property and the related allocation of gains and losses resulting from
any such investment.</text>
</subsection><subsection id="H9623C92F03C541999E84AFF4BE94260A"><enum>(b)</enum><header>back office
audit reporting</header><text display-inline="yes-display-inline">If a swap
dealer does not segregate funds at the request of a swap counterparty in
accordance with subsection (a), the swap dealer shall report to its
counterparty on a quarterly basis that its back office procedures relating to
margin and collateral requirements are in compliance with the agreement of the
counterparties.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3A4BE40E82224BF184E22F549897D285"><enum>3109.</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 by—</text>
<paragraph id="HBBFA257421AD4828B01A3639C12DE324"><enum>(1)</enum><text>redesignating
subsection (c) as subsection (d); and</text>
</paragraph><paragraph id="H09F1FE642595422EADE558EF6FE3C664"><enum>(2)</enum><text>inserting after
subsection (b) the following:</text>
<quoted-block id="H276E2ABEE48343D5A3A94D4EE02DFFE1" style="OLC">
<subsection id="H781ED843E7884EB0AE68243A050CA9FF"><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="HE7FB1DB108134520B9373D5393379FF3"><enum>(1)</enum><text>establish
structural and institutional safeguards to assure 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 those whose involvement in
trading or clearing activities might potentially bias their judgment or
supervision; and</text>
</paragraph><paragraph id="H9B918DA82D76426A82D80EC1420FE9C2"><enum>(2)</enum><text>address such other
issues as the Commission determines
appropriate.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H7E61FD5CD82F4CA0AD89DBC953A24EAD"><enum>3110.</enum><header>Swap execution
facilities</header><text display-inline="no-display-inline">The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5g the
following:</text>
<quoted-block display-inline="no-display-inline" id="H528FE4AF6284403FA812E85911BD0041" style="OLC">
<section id="H6A990CD01B5B4AB48991B589AF7746F6"><enum>5h.</enum><header>Swap execution
facilities</header>
<subsection id="HEF3E839B41FA447AB3B56FE5489DF46F"><enum>(a)</enum><header>Registration</header>
<paragraph id="H08B2127D9A1349E68616FE00FECC7D55"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H5783E8A3EF9B4A81A182333261CFBB2C"><enum>(A)</enum><text display-inline="yes-display-inline">No person may operate a swap execution
facility unless the facility is registered under this section.</text>
</subparagraph><subparagraph id="H8A46C572D67C441BA524A28F43117084"><enum>(B)</enum><text>The term
<quote>swap execution facility</quote> means an entity that facilitates the
execution of swaps between two persons through any means of interstate commerce
but which is not a designated contract market.</text>
</subparagraph></paragraph><paragraph id="HEAC4C5707C6D4B7BB7F1A966A686D9A9"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is required to be registered as a
swap execution facility under this section shall register with the Commission
regardless of whether that person also is registered with the Securities and
Exchange Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="H992E40CFA84742EA947F6B998A78BDBD"><enum>(b)</enum><header>Requirements for
trading</header><text>A swap execution facility that is registered under
subsection (a) may trade any swap.</text>
</subsection><subsection id="HA97B1C1793734838ACC98ABA9C3F6609"><enum>(c)</enum><header>Trading 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 trading on the
contract market and the swap execution facility, identify whether the
electronic trading is taking place on the contract market or the swap execution
facility.</text>
</subsection><subsection id="H83127548171B4705BBF0E58A389B412F"><enum>(d)</enum><header>Criteria for
registration</header>
<paragraph id="H397DA305D818417E940D7DDC1EBD2BD7"><enum>(1)</enum><header>In
general</header><text>To be registered as a swap execution facility, the
facility shall be required to demonstrate to the Commission that it meets the
criteria specified herein.</text>
</paragraph><paragraph id="H212DF380C29D4D2CBDC3A9A7D8A7D320"><enum>(2)</enum><header>Deterrence of
abuses</header><text>The swap execution facility shall establish and enforce
trading and participation rules that will deter abuses and have the capacity to
detect, investigate, and enforce those rules, including means to—</text>
<subparagraph id="HA7B6766CF5CC4C57B2ACE573637DAA43"><enum>(A)</enum><text>obtain information
necessary to perform the functions required under this section; or</text>
</subparagraph><subparagraph id="H37F06715786F4BA0AE93BC845B35675C"><enum>(B)</enum><text>use means
to—</text>
<clause id="H872644EC4AEA4A54A1BF52639BF7D2D8"><enum>(i)</enum><text>provide market
participants with impartial access to the market; and</text>
</clause><clause id="HAA437FA28A4A40149EEB834E115EAC88"><enum>(ii)</enum><text>capture
information that may be used in establishing whether rule violations have
occurred.</text>
</clause></subparagraph></paragraph><paragraph id="HC4A07150DC154EDE99AE25D91A152DCC"><enum>(3)</enum><header>Trading
procedures</header><text>The swap execution facility shall establish and
enforce rules or terms and conditions defining, or specifications detailing,
trading procedures to be used in entering and executing orders traded on or
through its facilities.</text>
</paragraph><paragraph id="H60EAE6342FCA4E8AAFC2198813B09C7B"><enum>(4)</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 its facilities, including the clearance and
settlement of the swaps pursuant to section 2(j)(1).</text>
</paragraph></subsection><subsection id="H7CCA739A470A42259FF027B6388A51B4"><enum>(e)</enum><header>Core principles
for swap execution facilities</header>
<paragraph id="HF78EBB9D4BC64A0480D1DA3E90D772F1"><enum>(1)</enum><header>In
general</header><text>To maintain its registration as a swap execution
facility, the facility shall comply with the core principles specified in this
subsection and any requirement that the Commission may impose by rule or
regulation pursuant to section 8a(5). Except where the Commission determines
otherwise by rule or regulation, the facility shall have reasonable discretion
in establishing the manner in which it complies with these core
principles.</text>
</paragraph><paragraph id="H095CF7D13AF24A8495132DFC6E3D3D08"><enum>(2)</enum><header>Compliance with
rules</header><text>The swap execution facility shall monitor and enforce
compliance with any of the rules of the facility, including the terms and
conditions of the swaps traded on or through the facility and any limitations
on access to the facility.</text>
</paragraph><paragraph id="H29B67FE70F8A49DAA4D9BC8D280EB457"><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="H637CA8D3079A4D9C9DA627AD2A8620E5"><enum>(4)</enum><header>Monitoring of
trading</header><text>The swap execution facility shall 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>
</paragraph><paragraph id="H38A73446BC7F4552ABF260A7EF4CF388"><enum>(5)</enum><header>Ability to
obtain information</header><text>The swap execution facility shall—</text>
<subparagraph id="HB4ACC83D3EB749EA8411087F0EB0AB35"><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="H1EFE3B35FF5048D3A6D05828EC2C574E"><enum>(B)</enum><text>provide the
information to the Commission upon request; and</text>
</subparagraph><subparagraph id="H7F535168914F4240AB8565BB98591112"><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="HB18758DAD5AA4816A965B9F23A8A94D4"><enum>(6)</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, where 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="HFDBF4FD97108418C9EAD4CD99859C1FE"><enum>(7)</enum><header>Timely
publication of trading information</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>
</paragraph><paragraph id="H4CB294F9D85742B48AEA443BC5A600DE"><enum>(8)</enum><header>Recordkeeping
and reporting</header><text display-inline="yes-display-inline">The swap
execution facility shall maintain records of all activities related 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 report to the
Commission all information determined by the Commission to be necessary or
appropriate for the Commission to perform its responsibilities under this Act
in a form and manner acceptable to the Commission. The swap execution facility
shall, upon request, make available to the Securities and Exchange Commission
all information (including information on a real-time basis) relating to
transactions in security-based swap agreements (as defined in section 3(a)(76)
of the Securities Exchange Act of 1934). 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 repositories.</text>
</paragraph><paragraph id="H1BDC92F6FAC24469812747B98A51F28E"><enum>(9)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the swap execution facility shall avoid—</text>
<subparagraph id="H781B4639A093466698605F5D522A3670"><enum>(A)</enum><text>adopting any rules
or taking any actions that result in any unreasonable restraints of trade;
or</text>
</subparagraph><subparagraph id="H11D3B448E0DE43E0BA3D495C0E0D8BF1"><enum>(B)</enum><text>imposing any
material anticompetitive burden on trading on the swap execution
facility.</text>
</subparagraph></paragraph><paragraph id="H9817EE3A4540411D8A0B74817DF1FE9F"><enum>(10)</enum><header>Conflicts of
interest</header>
<subparagraph id="HFFE7ED07B3EE4D7094AF83825F9E7C63"><enum>(A)</enum><text display-inline="yes-display-inline">The swap execution facility shall establish
and enforce rules to minimize conflicts of interest in its decision-making
process, and establish a process for resolving any such conflicts of
interest.</text>
</subparagraph><subparagraph id="H0AA0CB5D7D1D4DEBB5B88DE9D01DC59D"><enum>(B)</enum><text display-inline="yes-display-inline">The rules of the swap execution facility
shall provide that a restricted owner shall not be permitted directly or
indirectly to acquire beneficial ownership of interests in the facility or in
persons with a controlling interest in the facility, to the extent that such an
acquisition would result in restricted owners controlling more than 20 percent
of the votes entitled to be cast on any matter by the holders of the ownership
interests.</text>
</subparagraph><subparagraph id="HCE226DD0FB464F32A69B82D5C342D079"><enum>(C)</enum><text>The rules of the
swap execution facility shall provide that a majority of the directors of the
facility shall not be associated with a restricted owner.</text>
</subparagraph></paragraph><paragraph id="H7F840B105689407AA3F3FF0607C702B6"><enum>(11)</enum><header>Designation of
compliance officer</header>
<subparagraph id="HFB2F634EF70A45C490D32E7178ECB25E"><enum>(A)</enum><header>In
general</header><text>Each swap execution facility shall designate an
individual to serve as a compliance officer.</text>
</subparagraph><subparagraph id="HC0BC257B8EF745B4A10ABD26A66F059C"><enum>(B)</enum><header>Duties</header><text>The
compliance officer shall—</text>
<clause id="H6A3E6D67E4FE46B18DC503210E195D46"><enum>(i)</enum><text>report directly to
the board or to the senior officer of the facility;</text>
</clause><clause id="H65A96CBC633A40D5B39A187FA7A34A19"><enum>(ii)</enum><text>shall—</text>
<subclause id="HEC11F21D433C417692624E4D4C6CCD14"><enum>(I)</enum><text>review compliance
with the core principles in this subsection;</text>
</subclause><subclause id="H01F4F8CBFC9945F09210EB08EA8F6E13"><enum>(II)</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>
</subclause><subclause id="H0343B4A18C944E209F4CD70DAF34474C"><enum>(III)</enum><text>be responsible
for administering the policies and procedures required to be established
pursuant to this section; and</text>
</subclause><subclause id="HE8B1EC79D86446FEBCD9A92DACC9EB74"><enum>(IV)</enum><text>ensure compliance
with commodity laws and the rules and regulations issued thereunder, including
rules prescribed by the Commission pursuant to this section; and</text>
</subclause></clause><clause id="H5653B179CD444735938DFAD708712847"><enum>(iii)</enum><text>establish
procedures for remediation of non-compliance issues found during compliance
office reviews, lookbacks, internal or external audit findings, self-reported
errors, or through validated complaints. Procedures will establish the
handling, management response, remediation, re-testing, and closing of
non-compliant issues.</text>
</clause></subparagraph><subparagraph id="H305557CE6FE54592A024ACB48F1971C6"><enum>(C)</enum><header>Annual reports
required</header><text>The compliance officer shall annually prepare and sign a
report on the compliance of the facility with the commodity laws and its
policies and procedures, including its code of ethics and conflict of interest
policies, in accordance with rules prescribed by the Commission. Such
compliance report shall accompany the financial reports of the facility that
are required to be furnished to the Commission pursuant to this section and
shall include a certification that, under penalty of law, the report is
accurate and complete.</text>
</subparagraph></paragraph></subsection><subsection id="H0A72BD8453FE4A8399C061B1AEF47856"><enum>(f)</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 such
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 organization’s
home country.</text>
</subsection><subsection id="HED19C052B7CC4F41B962DC5E8A8FF186"><enum>(g)</enum><header>Harmonization of
rules</header><text>Within 180 days of the enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Securities and Exchange Commission
shall jointly prescribe rules governing the regulation of swap execution
facilities under this section and section 3B of the Securities Exchange Act of
1934 (15 U.S.C.
78c–2).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0A42077A96C34FAEB7B0542FF2E39D84"><enum>3111.</enum><header>Derivatives
transaction execution facilities and exempt boards of trade</header><text display-inline="no-display-inline">Sections 5a and 5d of the Commodity Exchange
Act (7 U.S.C. 7 and 7a-3) are repealed.</text>
</section><section id="H746FA9C3107A4EE1B3109131A2C37E2E"><enum>3112.</enum><header>Designated
contract markets</header>
<subsection id="H27489B5EC4D04BD7B8E5AEFCBF744254"><enum>(a)</enum><text>Section 5(d) of
the Commodity Exchange Act (7 U.S.C. 7(d)) is amended by striking paragraph (9)
and inserting the following:</text>
<quoted-block id="H406B3A6FA7F840B2AC90138EF3042302" style="OLC">
<paragraph id="HFAFAE47DD0D540EEA7450852F743AC5D"><enum>(9)</enum><header>Execution of
transactions</header>
<subparagraph id="HB17757B8F6AE428EB1DF597A34BD5D09"><enum>(A)</enum><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 board of trade’s centralized market.</text>
</subparagraph><subparagraph id="H271591D42170479A872801C85C67B8B8"><enum>(B)</enum><text>The rules may
authorize, for bona fide business purposes—</text>
<clause id="H03FD2A4F9A33493C8FF4B7491F651697"><enum>(i)</enum><text>transfer trades or
office trades;</text>
</clause><clause id="H1ACCDDAD231E4901816FD9F6E6C23380"><enum>(ii)</enum><text>an exchange
of—</text>
<subclause id="H98221DC687CF4F8FAD586576FD54390A"><enum>(I)</enum><text>futures in
connection with a cash commodity transaction;</text>
</subclause><subclause id="HAA9F6785BB6D4F0EAD910D9A203A1BF9"><enum>(II)</enum><text>futures for cash
commodities; or</text>
</subclause><subclause id="H76E4385CBFEE4A3DA36445230E997CCD"><enum>(III)</enum><text>futures for
swaps; or</text>
</subclause></clause><clause id="H521633B4FEFA4A229EB3051B4DA2575A"><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><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBA015947954E444D85CA96E7A4E1E8A7"><enum>(b)</enum><text display-inline="yes-display-inline">Section 5(d) of the Commodity Exchange Act
(7 U.S.C. 7(d)) is amended by striking paragraph (15) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HBEFC5AAB4C424B4D96E20D224081A5AD" style="OLC">
<paragraph id="HDF0113D5ADCA404C90A6C7A59AD3A88A"><enum>(15)</enum><header>Conflicts of
interest</header>
<subparagraph id="H46B077183C874F71B723E5133D3DA44A"><enum>(A)</enum><text display-inline="yes-display-inline">The board of trade shall establish and
enforce rules to minimize conflicts of interest in the decisionmaking process
of the contract market, and establish a process for resolving any such
conflicts of interest.</text>
</subparagraph><subparagraph id="HDB1141CF09554F79B79CF5AE7FD7DC62"><enum>(B)</enum><text display-inline="yes-display-inline">The rules of a board of trade that trades
swaps shall provide that a restricted owner shall not be permitted directly or
indirectly to acquire beneficial ownership of interests in the board of trade
or in persons with a controlling interest in the board of trade, to the extent
that such an acquisition would result in restricted owners controlling more
than 20 percent of the votes entitled to be cast on any matter by the holders
of the ownership interests.</text>
</subparagraph><subparagraph id="H6AD6B45D1A804A989D06613A3498D6A9"><enum>(C)</enum><text>The rules of a
board of trade that trades swaps shall provide that a majority of the directors
of the board of trade shall not be associated with a restricted
owner.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE7388A85EC7649A1BF72722080058796"><enum>(c)</enum><text>Section 5(d) of
the Commodity Exchange Act (7 U.S.C. 7(d)) is amended by adding after paragraph
(18) the following:</text>
<quoted-block id="H37AD235FDFD94372B1131119A6041C60" style="OLC">
<paragraph id="HF93EB665F78648D6BA0B4334E755F025"><enum>(19)</enum><header>Financial
resources</header><text>The board of trade shall demonstrate that it has
adequate financial, operational, and managerial resources to discharge the
responsibilities of a contract market. For the board of trade’s financial
resources to be considered adequate, their value shall exceed the total amount
that would enable the contract market to cover its operating costs for a period
of one year, calculated on a rolling basis.</text>
</paragraph><paragraph id="H0C7040CB0CC04B31A2A9D56FD1A85CA0"><enum>(20)</enum><header>System
safeguards</header><text>The board of trade shall—</text>
<subparagraph id="HF6EB5204309944C7BF378C71689122B7"><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 give adequate scalable capacity;</text>
</subparagraph><subparagraph id="H81E5CF77E2F845228923BA91724C9D21"><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 board of trade’s responsibilities and obligations;
and</text>
</subparagraph><subparagraph id="H70151CF519334FF88565C7BC65F167E8"><enum>(C)</enum><text>periodically
conduct tests to verify that back-up 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><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H9649F9CB28424855BC4AC9671F1ECE6F"><enum>3113.</enum><header>Position
limits</header>
<subsection id="HC729F81EA1984D9793E881AC7980B0F0"><enum>(a)</enum><text>Section 4a(a) of
the Commodity Exchange Act (7 U.S.C. 6a(a)) is amended by—</text>
<paragraph id="H391BB37D66944B439AED92DB6D9CB1DF"><enum>(1)</enum><text>inserting
<quote>(1)</quote> after <quote>(a)</quote>;</text>
</paragraph><paragraph id="H951E039B5CB44096BE9E3D51BD6A6C67"><enum>(2)</enum><text>striking <quote>on
electronic trading facilities with respect to a significant price discovery
contract</quote> in the first sentence and inserting <quote>swaps that perform
or affect a significant price discovery function with respect to regulated
markets</quote>;</text>
</paragraph><paragraph id="HCC3601D747E447B49BFD363715FA55B8"><enum>(3)</enum><text>inserting <quote>,
including any group or class of traders,</quote> in the second sentence after
<quote>held by any person</quote>;</text>
</paragraph><paragraph id="HCF51F0D792A54D9397480BE1FA9F8ABE"><enum>(4)</enum><text>striking <quote>on
an electronic trading facility with respect to a significant price discovery
contract,</quote> in the second sentence and inserting <quote>swaps that
perform or affect a significant price discovery function with respect to
regulated markets,</quote>; and</text>
</paragraph><paragraph id="HDE9AD64B4C9F4BAAAFF678AA0CA71482"><enum>(5)</enum><text>inserting at the
end the following:</text>
<quoted-block id="H3F348101954D459297C1374361614F22" style="OLC">
<paragraph id="H67CCD7E425CF4FF69B32029479CECE5B"><enum>(2)</enum><header>Aggregate
position limits</header><text>The Commission may, 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="HBA409749EC3E4E2E967331D3DD4FD481"><enum>(A)</enum><text>contracts listed
by designated contract markets;</text>
</subparagraph><subparagraph id="H3892635F078C402696D6CCEF73E966B6"><enum>(B)</enum><text>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="H7D79F5BA65B642259D361987F9998A84"><enum>(C)</enum><text>swap contracts
that perform or affect a significant price discovery function with respect to
regulated markets.</text>
</subparagraph></paragraph><paragraph id="H76375DAA3FB2401E9A1610D620EC06BB"><enum>(3)</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="HFDC5E801BC6C4B1F87554C39C5BABC27"><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="H90E91C4F77DB4D059F79A4B9CF96C5C7"><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="H9CA5B16AE77A42DB8535A16E12F7A14E"><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="HD3088CDEB7D54C9BBDFCF368411E5DB7"><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="HFF2968C3A7594A109D3479A9A37DCF73"><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="H4D5DF2D67E2249F29394003FE3E64176"><enum>(4)</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, 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="HB77C396987F747D5BF481734928777DB"><enum>(b)</enum><text>Section 4a(b) of
the Commodity Exchange Act (7 U.S.C. 6a(b)) is amended—</text>
<paragraph id="H8BBF5AA55B934A6EB64994426E5DCF19"><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="HC02531604A6A45ABB4B613EF1147AE03"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>or derivatives transaction execution facility or electronic
trading facility</quote> and inserting <quote>or swap execution
facility</quote>.</text>
</paragraph></subsection></section><section id="H2413E7B8E34546FC91FFE51EB2C7E46B"><enum>3114.</enum><header>Enhanced
authority over registered entities</header>
<subsection id="H867E8D7B65BD4B5F9D3046BF893C441E"><enum>(a)</enum><text>Section 5(d)(1) of
the Commodity Exchange Act (7 U.S.C. 7(d)(1)) is amended by striking <quote>The
board of trade shall have</quote> and inserting <quote>Except where the
Commission otherwise determines by rule or regulation pursuant to section
8a(5), the board of trade shall have</quote>.</text>
</subsection><subsection id="H74A8C80F7E72470794461CFB11DC5AFF"><enum>(b)</enum><text display-inline="yes-display-inline">Section 5c(c) of the Commodity Exchange Act
(7 U.S.C. 7a-2(c)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HDDACA4B7201747048C6C42BA1C503924" style="OLC">
<subsection id="HF4714DF07D484C00A6EC3E99098797ED"><enum>(c)</enum><header>New contracts,
new rules, and rule amendments</header>
<paragraph id="H457178501EEF4C729BB14E8C327C16C0"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), 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 id="H758ED585700C4605BB6747357A61259F"><enum>(2)</enum><header>Prior
approval</header>
<subparagraph id="H49F1DC1D8E5D44FD82F0ADE2C87DBCE2"><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 id="HA3ECEC5E381E41CA91E033EB68DF5EE2"><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
under subparagraph (A) 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 (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 for which there is open
interest.</text>
</subparagraph><subparagraph id="HBF4C1AEF7BDE464CB7DE9AAE3B3095E5"><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 id="HB477506E8EA145D5BC9BA325A2398F1A"><enum>(3)</enum><header>Approval</header><text>The
Commission shall approve any such new contract or instrument, new rule, or rule
amendment unless the Commission finds that the new contract or instrument, new
rule, or rule amendment would violate this
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC491D1A154B6434DBA222C5480929C27"><enum>3115.</enum><header>Foreign boards
of trade</header>
<subsection id="HC490815E621B48C383F8EA7867711FE1"><enum>(a)</enum><text>Section 4(b) of
the Commodity Exchange Act (7 U.S.C. 6(b)) is amended by striking <quote>No
rule or regulation</quote> and inserting <quote>Except as provided in
paragraphs (1) and (2), no rule or regulation</quote>.</text>
</subsection><subsection id="HF604C403E7E0402E99ADCB15AA42B77A"><enum>(b)</enum><text>Section 4(b) of
the Commodity Exchange Act (7 U.S.C. 6(b)) is further amended by inserting
before <quote>The Commission</quote> the following:</text>
<quoted-block display-inline="no-display-inline" id="H7792398FF9D846A39637666EF9AB0DA7" style="traditional">
<paragraph display-inline="yes-display-inline" id="HF5B1EEEE30AE4B0E981C4019994AF3A4"><enum>“(1)</enum><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 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, <quote>direct access</quote> 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.</text>
</paragraph><paragraph id="HD42A5C4F231A4B7C9FFC4A7F2F576CDA" indent="up1"><enum>(2)</enum><text>It shall be unlawful for 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>
<subparagraph id="H9C1AD4AC02254D18B0CDE6D2D8FB25D8"><enum>(A)</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>
</subparagraph><subparagraph id="HC461B902C60E4B93924ADA9D9007921B"><enum>(B)</enum><text>the foreign board of trade (or the
foreign futures authority that oversees the foreign board of trade)—</text>
<clause id="H4468E03CBDD7480C9466D721F9A1E92A"><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>
</clause><clause id="HEB5AFB7B651A403B836C72BA74B57D74"><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>
</clause><clause id="HDBBD4BF7B5B8451F863C5DCE5C4A2359"><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>
<subclause id="HC1A7D5BF6A6C4624925FF47E5B5A2D64"><enum>(I)</enum><text>the information that the foreign board of
trade will make publicly available;</text>
</subclause><subclause id="H219D11A764AA474D8FCB962AD2480438"><enum>(II)</enum><text>the position limits that the foreign
board of trade or foreign futures authority will adopt and enforce;</text>
</subclause><subclause id="H0EE6D48AF5A04C768760D1351D6A8D5D"><enum>(III)</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>
</subclause><subclause id="HB4FAA9B8862B4056A07D32729983F7D5"><enum>(IV)</enum><text>any other area of interest expressed by
the Commission to the foreign board of trade or foreign futures
authority;</text>
</subclause></clause><clause id="HC83E84F430184023BC0BDAE18BC555F1"><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>
</clause><clause id="HCFCB730E09AC4C889C7C9FD349E35138"><enum>(v)</enum><text>provides the Commission with
information 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>
</clause></subparagraph></paragraph><paragraph id="H5AB22D93D8374514B6E6D19FE6ED8E6E" indent="up1"><enum>(3)</enum><text>Paragraphs (1) and (2) shall not be
effective with respect to any foreign board of trade to which the Commission
has granted direct access permission before the date of the enactment of this
subsection until the date that is 180 days after such date of enactment.</text>
</paragraph><paragraph id="HA59C09A173144EC8B60EC07A95160B21" indent="up1"><enum>(4)</enum>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD820FF126A52457D8619A39ADE78B219"><enum>(c)</enum><header>Liability of
registered persons trading on a foreign board of trade</header>
<paragraph id="HDFBC85B99D4A4281BD88307837A629F2"><enum>(1)</enum><text>Section 4(a) of
the Commodity Exchange Act (7. U.S.C. 6(a)) is amended by inserting <quote>or
by subsection (f)</quote> after <quote>Unless exempted by the Commission
pursuant to subsection (c)</quote>; and</text>
</paragraph><paragraph id="H9BFA4ADC3FA94602A2DA34EAD07C2479"><enum>(2)</enum><text>Section 4 of the
Commodity Exchange Act (7 U.S.C. 6) is further amended by adding at the end the
following:</text>
<quoted-block id="HD707F8078BF84928874E616A60B04006" style="OLC">
<subsection id="H7281030D80E145ECAA2FD963509FDEE7"><enum>(f)</enum><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 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 has complied with subsections (b)(1) and
(b)(2).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF573DF9F65C745D0B79ADCCA0365F545"><enum>(d)</enum><header>Contract
enforcement for foreign futures contracts</header><text>Section 22(a) of the
Commodity Exchange Act (7 U.S.C. 25(a)) is amended by adding at the end the
following:</text>
<quoted-block id="H58B932835ECD4CD6A30DCB9B9ED46CF1" style="OLC">
<paragraph id="HE1BAA1B5E9044E8CBDF5B6653FFA99DE"><enum>(5)</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="H317F160599AB449BB56C45A1EB584444"><enum>3116.</enum><header>Legal
certainty for swaps</header><text display-inline="no-display-inline">Section
22(a)(4) of the Commodity Exchange Act (7 U.S.C. 25(a)(4)) is amended to read
as follows:</text>
<quoted-block id="HB69B32C264334DA7A437CB6202B0F62E" style="OLC">
<paragraph id="HD173D8DA210E454C86B7BBB68B622C0A"><enum>(4)</enum><header>Contract
enforcement between eligible counterparties</header>
<subparagraph id="HD59669C62DDD42168F05CE13854738E5"><enum>(A)</enum><text>No hybrid
instrument sold to any investor shall be void, voidable, or unenforceable, and
no party to such hybrid instrument shall be entitled to rescind, or recover any
payment made with respect to, such a 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="H97737F940ABE465CBE158513C8BF034C"><enum>(B)</enum><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 thereto shall be entitled to rescind,
or recover any payment made with respect to, such 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 to meet
the definition of a swap set forth in section 1a or to be cleared pursuant to
section
2(j)(1).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H70046376600B4B598B098C48721B4DF7"><enum>3117.</enum><header>Multilateral
clearing organizations</header>
<subsection id="H6D76CDC81E4F4C71B535F9364839A1FC"><enum>(a)</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 by striking <quote>section 2(c), 2(d), 2(f), or 2(g) of
such Act, or exempted under section 2(h) or 4(c) of such Act</quote> and
inserting <quote>section 2(c) or 2(f) of such Act</quote>.</text>
</subsection><subsection id="HDA3DD07C362049C6A073B8C50FFA8613"><enum>(b)</enum><text>Section 408 of the
Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4421)
is further amended by inserting at the end the following:</text>
<quoted-block id="H74CB86E7C78E4EE3AA370DA707AF8DA1" style="OLC">
<paragraph id="H7C6075B722FB4EC780AE4C765B2C976A"><enum>(4)</enum><text>The term
<term>over-the-counter derivative instrument</term> does not include a swap or
a security-based swap as defined in sections 1a(35) and 1a(38) of the Commodity
Exchange Act (7 U.S.C. 1a(35) and
1a(38)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HBB5B9837E67F49E89C0A3D0D4C17E3C6"><enum>3118.</enum><header>Primary
enforcement authority</header><text display-inline="no-display-inline">The
Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by adding the following
new section after section 4b:</text>
<quoted-block id="H1C727904246544AD9CAA4F50E94B9CF4" style="OLC">
<section id="HFE14341472584C4D8E6EE5C3A9C0A203"><enum>4b–1.</enum><header>Primary
enforcement authority</header>
<subsection id="H18CD6DA597CC4BC29E9B8805BB688014"><enum>(a)</enum><header>CFTC</header><text display-inline="yes-display-inline">Except as provided in subsections (b), (c),
and (d), the Commission shall have primary authority to enforce the provisions
of Subtitle A of the <short-title>Over-the-Counter
Derivatives Markets Act of 2009</short-title> with respect to any
person.</text>
</subsection><subsection id="H3D5D3242F84D47C28049FFC66A0CEDAE"><enum>(b)</enum><header>Prudential
regulators</header><text>The Prudential Regulators shall have exclusive
authority to enforce the provisions of section 4s(e) and other prudential
requirements of this Act with respect to banks, and branches or agencies of
foreign banks that are swap dealers or major swap participants.</text>
</subsection><subsection id="HA948EEEC240E453C8225470C4E353CE1"><enum>(c)</enum><header>Referral</header><text>If
the Prudential Regulator for a swap dealer or major swap participant has cause
to believe that such swap dealer or major swap participant may have engaged in
conduct that constitutes a violation of the nonprudential requirements of
section 4s or rules adopted by the Commission thereunder, that Prudential
Regulator may recommend in writing to the Commission that the Commission
initiate an enforcement proceeding as authorized under this Act. The
recommendation shall be accompanied by a written explanation of the concerns
giving rise to the recommendation.</text>
</subsection><subsection id="H98014DA2042840489BCFDA57C4AD93DE"><enum>(d)</enum><header>Backstop
enforcement authority</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 recommendation under subsection (c),
the Prudential Regulator may initiate an enforcement proceeding as permitted
under Federal
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAE9C6AE9DEAF4276A3AC58C71F9B145A"><enum>3119.</enum><header>Enforcement</header>
<subsection id="H3AE7B4B17450446DA4C8D33356C2B9A6"><enum>(a)</enum><text>Section 4b(a)(2)
of the Commodity Exchange Act (7 U.S.C. 6b(a)(2)) is amended 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>
</subsection><subsection id="HC0BAE4ACCB82405BB0B6F6164A4FAC4E"><enum>(b)</enum><text>Section 4b(b) of
the Commodity Exchange Act (7 U.S.C. 6b(b)) is amended 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>
</subsection><subsection id="HF575E212AF644231B126098DB915208A"><enum>(c)</enum><text>Section 4c(a) of
the Commodity Exchange Act (7 U.S.C. 6c(a)) is amended by inserting <quote>or
swap</quote> before <quote>if the transaction is used or may be
used</quote>.</text>
</subsection><subsection id="H8F8A72ACE45A41FEBAEC7A25C5545E98"><enum>(d)</enum><text>Section 9(a)(2) of
the Commodity Exchange Act (7 U.S.C. 13(a)(2)) is amended by inserting
<quote>or of any swap,</quote> before <quote>or to corner</quote>.</text>
</subsection><subsection id="HE37B367DEB5A4CF5A2A95C61D56522AE"><enum>(e)</enum><text>Section 9(a)(4) of
the Commodity Exchange Act (7 U.S.C. 13(a)(4)) is amended by inserting
<quote>swap repository,</quote> before <quote>or futures
association</quote>.</text>
</subsection><subsection id="HB06645CD9C1648FCAA800C55D433FBF3"><enum>(f)</enum><text>Section 9(e)(1) of
the Commodity Exchange Act (7 U.S.C. 13(e)(1)) is amended by inserting
<quote>swap repository,</quote> before <quote>or registered futures
association</quote> and by inserting <quote>, or swaps,</quote> before
<quote>on the basis</quote>.</text>
</subsection><subsection id="HA08399EC97F34BF5B9DD7E3132178AE8"><enum>(g)</enum><text>Section 8(b) of
the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) is amended by
redesignating paragraphs (6) through (10) as paragraphs (7) through (11),
respectively, and by inserting after paragraph (5) the following:</text>
<quoted-block id="HC8F510CEC00040C586EED333BF877B82" style="OLC">
<paragraph id="HF772620BA0C64CD3830EC741589B1371"><enum>(6)</enum><text>This section shall
apply to any swap dealer, major swap participant, security-based swap dealer,
major security-based swap participant, derivatives clearing organization, swap
repository or swap execution facility, whether or not it is an insured
depository institution, for which the Board, the Corporation, or the Office of
the Comptroller of the Currency is the appropriate Federal banking agency or
Prudential Regulator for purposes of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5AB5C5848E184414BAA9130869628651"><enum>3120.</enum><header>Retail
commodity transactions</header><text display-inline="no-display-inline">Section
2(c) of the Commodity Exchange Act (7 U.S.C. 2(c)) is amended—</text>
<paragraph id="H75EA4D375AAC451284939E7A3647A0F2"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>(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>;</text>
</paragraph><paragraph id="H1B5B6CA29B5946AB92D6FA7BE7B89C5F"><enum>(2)</enum><text>in paragraph (2),
by inserting after subparagraph (C) the following:</text>
<quoted-block id="H80205E6DEDCE429ABD477A74ECC23713" style="OLC">
<subparagraph id="H3318F1D53B274587AE383AB348BA26CC"><enum>(D)</enum><header>Retail commodity
transactions</header>
<clause id="H12ED795F0AEC4793A62905105702FCCA"><enum>(i)</enum><text>This subparagraph
shall apply to any agreement, contract, or transaction in any commodity that
is—</text>
<subclause id="H0CC740CB2D4F4FCDA3202DF2CC38A0C9"><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="H87F14CB71B174DD6AB23799E474465DE"><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="H499B636CE6624DC1A3DFD4BBDD5CAC86"><enum>(ii)</enum><text>Clause (i) shall
not apply to—</text>
<subclause id="HA54ECA79CE6D48EDB6D485CA10BBB2C9"><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="H3E66D4A1329E46D0B2231F3821824699"><enum>(II)</enum><text>any
security;</text>
</subclause><subclause id="H58D09F76C44C4D28A1AB1F2C85B87927"><enum>(III)</enum><text>a contract of
sale that—</text>
<item id="HEB7D1C056CBA481AA61913E0506A206C"><enum>(aa)</enum><text>results in actual
delivery within 28 days or such other 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="H8904407C0BB740EA9BA270884708E904"><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 their
line of business;</text>
</item></subclause><subclause id="H62EE2434339B4679892AD09903EAD9B0"><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="H236973C0417340099150882F810ADEDE"><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="H551177B641DF4BD5832782AA0553F0DB"><enum>(iii)</enum><text>Sections 4(a),
4(b) and 4b shall apply to any agreement, contract or transaction described in
clause (i), that is not excluded from clause (i) by clause (ii), as if the
agreement, contract, or transaction were a contract of sale of a commodity for
future delivery.</text>
</clause><clause id="H9104BA7DA1F6495280E744EAE99F7E06"><enum>(iv)</enum><text>This subparagraph
shall not be construed to limit any jurisdiction that the Commission may
otherwise have under any other provision of this Act over an agreement,
contract, or transaction that is a contract of sale of a commodity for future
delivery.</text>
</clause><clause id="H177DD9BA463547239F2B38267A1E2B8D"><enum>(v)</enum><text>This subparagraph
shall not be construed to limit any jurisdiction that the Commission or the
Securities and Exchange Commission may otherwise have under any other
provisions of this Act with respect to security futures products and persons
effecting transactions in security futures products.</text>
</clause><clause id="HFA14FF1AE8784C2AA029F19A58EA809B"><enum>(vi)</enum><text>For the purposes
of this subparagraph, an agricultural producer, packer, or handler shall be
considered an eligible commercial entity for any agreement, contract, or
transaction for a commodity in connection with its line of
business.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H79D50C4757AA4405B9027A76F3375E2F"><enum>3121.</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 4t (as
added by section 3108) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0BDA35F38B1C45C2BC8FE7AE8BE3BDEC" style="OLC">
<section id="H1D3A042AC6AA4A44A9CE97B3EFEEAC09"><enum>4u.</enum><header>Large swap
trader reporting</header>
<subsection id="HC616F90247C34B1D964AA807BC6848E5"><enum>(a)</enum><text>It shall be
unlawful for any person to enter into any swap that performs or affects a
significant price discovery function with respect to regulated markets
if—</text>
<paragraph id="H62A8CEDBD6824639839CB54C841539E9"><enum>(1)</enum><text>such person shall
directly or indirectly enter into such swaps during any one day in an amount
equal to or in excess of such amount as shall be fixed from time to time by the
Commission; and</text>
</paragraph><paragraph id="H252C1905F59045F9A8073A8AB1318B7E"><enum>(2)</enum><text>such person shall
directly or indirectly have or obtain a position in such swaps equal to or in
excess of such amount as shall be fixed from time to time by the
Commission,</text>
</paragraph><continuation-text continuation-text-level="subsection">unless
such person files or causes to be filed with the properly designated officer of
the Commission such reports regarding any transactions or positions described
in paragraphs (1) and (2) as the Commission may by rule or regulation require
and unless, in accordance with the rules and regulations of the Commission,
such person shall keep 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
board of trade, and of cash or spot transactions in, inventories of, and
purchase and sale commitments of, such a commodity.</continuation-text></subsection><subsection id="H29FF8B5E85E9415F88AC6E867AF6F217"><enum>(b)</enum><text>Such books and
records shall show complete details concerning all transactions and positions
as the Commission may by rule or regulation prescribe.</text>
</subsection><subsection id="H0C03C8F52CCC4D808873D33807B0F76F"><enum>(c)</enum><text>Such books and
records shall be open at all times to inspection and examination by any
representative of the Commission.</text>
</subsection><subsection id="H165C6D318ADA41E2B673F2C23C631989"><enum>(d)</enum><text display-inline="yes-display-inline">Any such books and records relating to
transactions in security-based swap agreements (as defined in section 3(a)(76)
of the Securities Exchange Act of 1934) shall be open at all times to
inspection and examination by the Securities and Exchange Commission.</text>
</subsection><subsection id="H637EA02E42C14CDBBE74E2DF06924F2A"><enum>(e)</enum><text>For the purpose of
this section, the swaps, futures and cash or spot transactions and positions of
any person shall include such transactions and positions of any persons
directly or indirectly controlled by such person.</text>
</subsection><subsection id="HEBB4F019DD2A461482F40F504346434F"><enum>(f)</enum><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 the
factors set forth in section
4a(a)(3).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFED1D9A75EC24F51A97732F1EAE7AEF1"><enum>3122.</enum><header>Authority to
ban abusive swaps</header><text display-inline="no-display-inline">The
Commodity Futures Trading Commission and the Securities and Exchange Commission
may, by rule or order, jointly collect information as may be necessary
concerning the markets for any types of swap (as defined in section 1a(35) of
the Commodity Exchange Act) or security-based swap (as defined in section
1a(38) of the such Act) and jointly issue a report with respect to any types of
swaps or security-based swaps which the Commodity Futures Trading Commission
and the Securities and Exchange Commission find are detrimental to the
stability of a financial market or of participants in a financial
market.</text>
</section><section id="H5DA8792DF839474C81C07D243FF5BF03"><enum>3123.</enum><header>International
harmonization</header><text display-inline="no-display-inline">In order to
promote effective and consistent global regulation of swaps, the Securities and
Exchange Commission, the Commodity Futures Trading Commission, the Prudential
Regulators (as defined in section 1a(43) of the Commodity Exchange Act), and
the financial stability regulator, shall consult and coordinate with foreign
regulatory authorities on the establishment of consistent international
standards with respect to the regulation of swaps, 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 and swap
counterparties.</text>
</section><section id="H5AA96516FD9D44AB872172466F43D631"><enum>3124.</enum><header>Authority to
ban access to the United States Financial System</header><text display-inline="no-display-inline">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 U.S. financial system, either Commission, in consultation with
the Secretary of the Treasury, may prohibit an entity domiciled in that country
from participating in the United States in any swap or security-based swap
activities.</text>
</section><section id="H9ECE40942F9849D98DDE613338382CB4"><enum>3125.</enum><header>Other
authority</header><text display-inline="no-display-inline">Unless otherwise
provided by its terms, this title does not divest any appropriate Federal
banking agency, the 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="H1F4DE9951C8F46F299C77DDACAC12B3C"><enum>3126.</enum><header>Antitrust</header><text display-inline="no-display-inline">Nothing in the amendments made by this title
shall be construed to modify, impair, or supersede the operation of any of the
antitrust laws. For purposes of this subtitle, the term <term>antitrust
laws</term> has the same meaning given such term 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.</text>
</section><section id="HB609042D1EA346AABB032D4434530A20"><enum>3127.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle is
effective 270 days after the date of enactment.</text>
</section></subtitle><subtitle id="H87696DA6F8F54D95B3A7A736669C11F5"><enum>B</enum><header>Regulation of
Security-Based Swap Markets</header>
<section id="H2415D8DF9EA74240BD41D60472999C5B"><enum>3201.</enum><header>Definitions
under the Securities Exchange Act of 1934</header><text display-inline="no-display-inline">Section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)) is amended—</text>
<paragraph id="HBD77EBBCBD7C497099E1C666C659F112"><enum>(1)</enum><text>in paragraph
(5)(A) and (B), by inserting <quote>(but not security-based swaps, other than
security-based swaps with or for persons that are not eligible contract
participants)</quote> after <quote>securities</quote> in each place it
appears;</text>
</paragraph><paragraph id="H7F0085BCCC294821B96D2342A7E5CC35"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (10) by inserting
<quote>security-based swaps</quote> after <quote>security
future,</quote></text>
</paragraph><paragraph id="HA0D99C96AC204B98A1A570429660D089"><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="HC0D9DCC8254940568C0E616CFD8CFD36"><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="H032EE8DC8CDF4C53B802550ECED75955"><enum>(5)</enum><text>in paragraph
(39)—</text>
<subparagraph id="H9789F32659DB4F4BA4D95353E4AAFA66"><enum>(A)</enum><text>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> in subparagraph (B)(i)(I);</text>
</subparagraph><subparagraph id="H66EFE19240CE45F0AE11CDC47961B8AE"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>security-based swap
dealer, major security-based swap participant,</quote> after <quote>government
securities dealer,</quote> in subparagraph (B)(i)(II);</text>
</subparagraph><subparagraph id="HB5484FAA7864461A8D153F00C52DE04D"><enum>(C)</enum><text display-inline="yes-display-inline">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> in
subparagraph (C); and</text>
</subparagraph><subparagraph id="HBF3366AA20B741D6AD83C2CBE3FEFC68"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting <quote>security-based swap
dealer, major security-based swap participant,</quote> after <quote>government
securities dealer,</quote> in subparagraph (D); and</text>
</subparagraph></paragraph><paragraph id="H862EFFB0C5404019B47E1DFD79648D88"><enum>(6)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H93A05D7800FB43E8AF1FC87039A8B91C" style="OLC">
<paragraph id="H23D4A5D2D6534AD7A74DF81F5F6BFA5F"><enum>(65)</enum><header>Eligible
contract participant</header><text>The term <term>eligible contract
participant</term> has the same meaning as in section 1a(13) of the Commodity
Exchange Act (7 U.S.C. 1a(13)).</text>
</paragraph><paragraph id="HD13A70FD4FB342A3A043F65855FFB517"><enum>(66)</enum><header>Major swap
participant</header><text>The term <term>major swap participant</term> has the
same meaning as in section 1a(40) of the Commodity Exchange Act (7 U.S.C.
1a(40)).</text>
</paragraph><paragraph id="H485825B80EE349218227103AFF738BE6"><enum>(67)</enum><header>Major
security-based swap participant</header><text>The term <term>major
security-based swap participant</term> has the same meaning as in section
1a(41) of the Commodity Exchange Act (7 U.S.C. 1a(41)).</text>
</paragraph><paragraph id="HF16A48B7E9C54697B8B4C6B5AB1CA0FB"><enum>(68)</enum><header>Security-based
swap</header><text>The term <term>security-based swap</term> has the same
meaning as in section 1a(38) of the Commodity Exchange Act (7 U.S.C.
1a(38)).</text>
</paragraph><paragraph id="H9E515CCDB7B64F2F86A7B7D0308CFF63"><enum>(69)</enum><header>Swap</header><text>The
term <term>swap</term> has the same meaning as in section 1a(35) of the
Commodity Exchange Act (7 U.S.C. 1a(35)).</text>
</paragraph><paragraph id="H9647EB9F3CF74D6D82F53461F352C394"><enum>(70)</enum><header>Person
associated with a security-based swap dealer or major security-based swap
participant</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> has the same meaning as in section 1a(48) of the
Commodity Exchange Act (7 U.S.C. 1a(48)).</text>
</paragraph><paragraph id="HC746ECAF43474A59A063457680DDED7C"><enum>(71)</enum><header>Security-based
swap dealer</header><text>The term <term>security-based swap dealer</term> has
the same meaning as in section 1a(44) of the Commodity Exchange Act (7 U.S.C.
1a(44)).</text>
</paragraph><paragraph id="H5E42B563BFF44F329371B946EBBFD391"><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="H4C1B82A23FDC4D9D99EE3C3800EE6460"><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="HB3F0A839B5674E8C88CA830719D71AC8"><enum>(74)</enum><header>Prudential
regulator</header><text>The term <term>Prudential Regulator</term> has the same
meaning as in section 1a(43) of the Commodity Exchange Act (7 U.S.C.
1a(43)).</text>
</paragraph><paragraph id="H3829A96D10224C96A28951DF0412969E"><enum>(75)</enum><header>Swap
dealer</header><text>The term <term>swap dealer</term> has the same meaning as
in section 1a(39) of the Commodity Exchange Act (7 U.S.C. 1a(39)).</text>
</paragraph><paragraph id="HFACD640671D04C2B82C656A9B575A4C9"><enum>(76)</enum><header>Security-based
swap agreement</header>
<subparagraph id="HE8B283C67DD845D5B4E8A1D029446E60"><enum>(A)</enum><header>In
general</header><text>For purposes of sections 10, 16, 20, and 21A of this Act,
and section 17 of the Securities Act of 1933 (15 U.S.C. 77q), the term
<term>security-based swap agreement</term> 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="H8DFC486C9EED4E9C82AB506E5CB50426"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>security-based swap agreement</term> does not include any
security-based swap.</text>
</subparagraph></paragraph><paragraph id="H94B199946BA74487AB2ABAB91EA4810B"><enum>(77)</enum><header>Restricted
owner</header><text display-inline="yes-display-inline">The term
<quote>restricted owner</quote> has the same meaning as in section 1a(51) of
the Commodity Exchange
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H8B3561160374419895C147A3BB5BE437"><enum>3202.</enum><header>Repeal of
prohibition on regulation of security-based swaps</header>
<subsection id="HBF3646D7C1AB4C2594A8AB9B9587BE20"><enum>(a)</enum><header>Repeal of
law</header><text>Section 206B of the Gramm-Leach-Bliley Act (15 U.S.C. 78c
note) is repealed.</text>
</subsection><subsection id="HB11EFDFEB8B34BCDA2F1A28503FB8906"><enum>(b)</enum><header>Conforming
Amendments to the Securities Act of 1933</header>
<paragraph id="H955A0D5F3947486EA9158586BB6853F0"><enum>(1)</enum><text>Section 2A(b) of
the Securities Act of 1933 (15 U.S.C. 77b–1) is amended by striking <quote>(as
defined in section 206B of the Gramm-Leach-Bliley Act)</quote> each place that
such term appears.</text>
</paragraph><paragraph id="H956BF53DBB89496B98B14EE92EC82681"><enum>(2)</enum><text>Section 17 of the
Securities Act of 1933 (15 U.S.C. 77q) is amended—</text>
<subparagraph id="H894704568B3E4319952EAD0653C155CC"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H76E6022E9F304786B73E1D5E135DEA25"><enum>(i)</enum><text>by
inserting <quote>(including security-based swaps)</quote> after
<quote>securities</quote>; and</text>
</clause><clause id="H551CDC96401942808BAF1D84F2A7D0ED"><enum>(ii)</enum><text>by
striking <quote>206B of the Gramm-Leach-Bliley Act</quote> and inserting
<quote>3(a)(76) of the Securities Exchange Act of 1934</quote>; and</text>
</clause></subparagraph><subparagraph id="H8AC78DCA508647808C19D93379EF2294"><enum>(B)</enum><text>in subsection (d),
by striking <quote>206B of the Gramm-Leach-Bliley Act</quote> and inserting
<quote>3(a)(76) of the Securities Exchange Act of 1934</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HE9C0A2C25A4E446183007F884D3120B1"><enum>(c)</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 as follows:</text>
<paragraph id="H8D85FC8E5DAC44F289F6A90511D30382"><enum>(1)</enum><text>Section 3A (15
U.S.C. 78c–1) is amended by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote> each place that the term appears.</text>
</paragraph><paragraph id="H8DD0A58A08634D1790C5321E694DEF00"><enum>(2)</enum><text>Section 9(a) (15
U.S.C. 78i(a)) is amended by striking paragraphs (2) through (5) and
inserting:</text>
<quoted-block id="HB5A9785C777144C58313A94CA425C0AC" style="OLC">
<paragraph id="HC6DD874832314C849DC1E79CDA00DC44" indent="up1"><enum>(2)</enum><text>To effect, alone or with one or more
other persons, a series of transactions in any security registered on a
national securities exchange 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="H82A58CA6B9074CCA827C53B10B69CBAD" 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, or a
security-based swap or security-based swap agreement with respect to such
security, to induce the purchase or sale of any security registered on a
national securities exchange or any security-based swap or 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 one or more persons conducted for the purpose of raising or
depressing the price of such security.</text>
</paragraph><paragraph id="H2412F87703574E3C8751C3AD1254A666" 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, or 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 or any security-based swap or security-based swap agreement with
respect to such security, for the purpose of inducing the purchase or sale of
such security or such security-based swap or 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 he knew or had reasonable ground to believe was so false or
misleading.</text>
</paragraph><paragraph id="H5541755EB9C84522A1674D976570CB1D" indent="up1"><enum>(5)</enum><text>For a consideration, received
directly or indirectly from 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, or 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 or any
security-based swap or 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 one or more persons conducted for the purpose of
raising or depressing the price of such
security.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBF485ECA1C9848C5BA335509B23B83E0"><enum>(3)</enum><text display-inline="yes-display-inline">Section 9(i) (15 U.S.C. 78i(i)) is amended
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>;</text>
</paragraph><paragraph id="H406907550EF44F668CB63C41AA5F0A2C"><enum>(4)</enum><text>Section 10 (15
U.S.C. 78j) is amended by striking <quote>(as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote> each place that the term appears.</text>
</paragraph><paragraph id="HDF370E9F82704A1D947AF63D9A734C0D"><enum>(5)</enum><text>Section 15(c)(1)
is amended—</text>
<subparagraph id="HD42EEF5B3E1F48E2A710F52F21592321"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>, or any security-based swap agreement (as defined in
section 206B of the Gramm-Leach-Bliley Act),</quote>; and</text>
</subparagraph><subparagraph id="HBF51FEC2A8A648BB995C974183E1AA50"><enum>(B)</enum><text>in subparagraphs
(B) and (C), by striking <quote>agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act)</quote> in each place that the term appears.</text>
</subparagraph></paragraph><paragraph id="H42F9F55E3688427B99E81C8FDED58E16"><enum>(6)</enum><text>Section 15(i) (15
U.S.C. 78o(i), as added by section 303(f) of the Commodity Futures
Modernization Act of 2000 (Public Law 106–554; 114 Stat. 2763A–455) is amended
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote>.</text>
</paragraph><paragraph id="HA26D5FD39B99464E858C9F7B539D6C40"><enum>(7)</enum><text>Section 16 (15
U.S.C. 78p) is amended—</text>
<subparagraph id="HA2A61983142048FF8BF2A8F5C88D7076"><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="H9DCCB7CFF7D94BAC8AB8CE95DF7F7FA2"><enum>(B)</enum><text>in subsection (b),
by striking <quote>(as defined in section 206B of the Gramm-Leach-Bliley
Act)</quote> in each place that the term appears; and</text>
</subparagraph><subparagraph id="H045DF06E35D24B3186DFA80A5F9D7C35"><enum>(C)</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="HED3E78395A424A7C8B1F8E7144F5E18C"><enum>(8)</enum><text>Section 20 (15
U.S.C. 78t) is amended—</text>
<subparagraph id="H37584116F808444C8D5A799A6B3A41B5"><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="HC309DD03A837472CA29E35EF1EE129A2"><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="HB7F55286D4DA41A7B03A4C0F09C64E8C"><enum>(9)</enum><text>Section 21A (15
U.S.C. 78u–1) is amended—</text>
<subparagraph id="H8E92FD2C2F0D43CF8E2D2A42CDA6A7D9"><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="H44A8213A70DA427FAA072DF4A9E757BE"><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="HCBA95EA0FE1C4B79A3664F4719E4D51B"><enum>3203.</enum><header>Amendments to
the Securities Exchange Act of 1934</header>
<subsection id="H0176A048E42A412D9A6936AF040EDCE6"><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 adding the following section after section
3A:</text>
<quoted-block display-inline="no-display-inline" id="HE75CD63870F7472FB56C2089B94AC354" style="OLC">
<section id="HE7E67ECA202F4E7B864112357B45D2DB"><enum>3B.</enum><header>Clearing of
security-based swaps</header>
<subsection id="H53B8C6D7823E41E58578E98962848BA0"><enum>(a)</enum><header>Clearing
requirement</header>
<paragraph id="HDA5B8D7BE89C42DD93A7428F71A0BA6C"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H70456E5E35CB4981AFC86FE5D25540D8"><enum>(A)</enum><header>Presumption of
clearing</header><text>A security-based swap shall be submitted for clearing if
a clearing agency that is registered under this Act will accept the
security-based swap for clearing;</text>
</subparagraph><subparagraph id="HC6DAFE23BD9F40898CEFDAB28B0CED0D"><enum>(B)</enum><header>Open
access</header><text>The rules of a clearing agency described in subparagraph
(A) shall—</text>
<clause id="H7D1DF53F5F0A4259B16E450E40004E5F"><enum>(i)</enum><text>prescribe that all
security-based swaps submitted to the clearing agency with the same terms and
conditions are fungible and may be offset with each other; and</text>
</clause><clause id="H815F287D816E40BEAEF4325959EC2D5B"><enum>(ii)</enum><text>provide for
non-discriminatory clearing of a security-based swap executed on or through the
rules of an unaffiliated exchange or alternative swap execution
facility.</text>
</clause></subparagraph></paragraph><paragraph id="HDF92BA8F894C4F599C470BD380CCD803"><enum>(2)</enum><header>Commission
approval</header>
<subparagraph id="HE8634ADDCDEE41368A1C8A13B1259D82"><enum>(A)</enum><header>In
general</header><text>A clearing agency shall submit to the Commission for
prior approval each security-based swap, or any group, category, type or class
of security-based swaps, that it seeks to accept for clearing, which submission
the Commission shall make available to the public.</text>
</subparagraph><subparagraph id="H5391B9E22C8B4673A93127C4D0CF627D"><enum>(B)</enum><header>Deadline</header><text>The
Commission shall take final action on a request submitted pursuant to
subparagraph (A) not later than 90 days after submission of the request, unless
the clearing agency submitting the request agrees to an extension of the time
limitation established under this subparagraph. A request on which the
Commission fails to take final action within the time limitation established
under this subparagraph shall be deemed approved.</text>
</subparagraph><subparagraph id="HE96E39E689C74C4A97DCC4CF56461E8F"><enum>(C)</enum><header>Approval</header><text>The
Commission shall approve, unconditionally or subject to such terms and
conditions as the Commission determines to be appropriate, any request
submitted pursuant to subparagraph (A) if it finds that the request is
consistent with the core principles specified under subsection (l).</text>
</subparagraph><subparagraph id="H30E35D0D985E41C8B335CADF0EE39409"><enum>(D)</enum><header>Rules</header><text>Not
later than 180 days after the date of enactment of the Over-the-Counter
Derivatives Markets Act of 2009, the Commission shall adopt rules for a
clearing agency’s submission for approval, pursuant to this paragraph, of a
security-based swap, or a group, category, type or class of security-based
swaps, that it seeks to accept for clearing.</text>
</subparagraph></paragraph><paragraph id="HF681C3E436594CEE93D9C546C9FEE046"><enum>(3)</enum><header>Stay of clearing
requirement</header><text>At any time after issuance of an approval pursuant to
paragraph (2)—</text>
<subparagraph id="H02ABF3DCBA9F4147BFCEFA0C795BD36F"><enum>(A)</enum><header>Review
process</header><text>The Commission, on application of a counterparty to a
security-based 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
security-based swap (or the group, category, type or class of security-based
swaps) and the clearing arrangement.</text>
</subparagraph><subparagraph id="H2ED64305A82B46C0BB819B296B7A463D"><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 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 subparagraph.</text>
</subparagraph><subparagraph id="HF56E2912F0B243B7942BBF83CCC4FAB2"><enum>(C)</enum><header>Determination</header><text>Upon
completion of the review undertaken pursuant to subparagraph (A), the
Commission may—</text>
<clause id="HA5D7B528B44641ACA815882B7CD2968A"><enum>(i)</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 the securities
laws; or</text>
</clause><clause id="HA03518A5167546029C2492F293E529EF"><enum>(ii)</enum><text>determine that
the clearing requirement of paragraph (1) shall not apply to the security-based
swap, or group, category, type or class of security-based swaps.</text>
</clause></subparagraph><subparagraph id="H7321BFEEA6414645B48549CE3E084CA9"><enum>(D)</enum><header>Rules</header><text>Not
later than 180 days after the date of enactment of the Over-the-Counter
Derivatives Markets Act of 2009, the Commission shall adopt rules for
reviewing, pursuant to this paragraph, 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>
</subparagraph></paragraph><paragraph id="HA5FB7903FCEF49DAB2E146B50AB7E31E"><enum>(4)</enum><header>Prevention of
evasion</header><text>The Commission and the Commodities Futures Trading
Commission shall have authority to prescribe rules under this section, or issue
interpretations of such rules, as necessary to prevent evasions of this Act.
Any such rules or interpretations of rules shall be prescribed and issued
jointly by both Commissions.</text>
</paragraph><paragraph id="HA7ACE252F498487CAFB56185740F0ABB"><enum>(5)</enum><header>Required
reporting</header>
<subparagraph commented="no" id="H444149D925B64551B913014BC3EBDA94"><enum>(A)</enum><header>In
general</header><text>Any security-based swap that is not accepted for clearing
by any clearing agency shall be reported to either a security-based swap
repository described in section 13(n) or, if there is no repository that would
accept the security-based swap, to the Commission pursuant to section 13A
within such time period as the Commission may by rule prescribe.</text>
</subparagraph><subparagraph id="H5A097ED3553449948D4AFA81720B2A38"><enum>(B)</enum><header>Reporting by
security-based swap dealers and major security-based swap
participants</header><text display-inline="yes-display-inline">In transactions
where 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 transaction. In transactions
where neither counterparty is a security-based swap dealer or major
security-based swap participant, only 1 counterparty shall be required to
report the transaction and the counterparties shall determine the reporting
party by contract or otherwise.</text>
</subparagraph></paragraph><paragraph id="H916419AD41C74FF5B6B2054EBDC83999"><enum>(6)</enum><header>Transition
rules</header><text>Rules adopted by the Commission under this section shall
provide for the reporting of data, as follows:</text>
<subparagraph id="H9B915084B9364D4C9B81EDB5C000F686"><enum>(A)</enum><text>Security-based
swaps that were entered into before the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title> shall be reported to a registered security-based swap
repository or the Commission no later than 180 days after the effective date of
such Act.</text>
</subparagraph><subparagraph id="HBCCF6D3583C8470A8088D4DD59A91A91"><enum>(B)</enum><text>Security-based
swaps that were entered into on or after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title> shall be reported to a registered security-based swap
repository or the Commission no later than the later of—</text>
<clause id="HAD4499C2A22344D79744A6B4639053AE"><enum>(i)</enum><text>90
days after the effective date of such Act; or</text>
</clause><clause id="H1F4C9C334C6E46FC95C81BC30ED80027"><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="H803DA21B75A34A30B2ED70DEDFB16CC3"><enum>(7)</enum><header>Exception</header><text display-inline="yes-display-inline">The requirements of paragraph (1) shall not
apply to a security-based swap if—</text>
<subparagraph id="H63D57F09DF4C40B9AE628FFEE4FAD7D5"><enum>(A)</enum><text>no clearing agency
registered under this Act will accept the security-based swap for clearing;
or</text>
</subparagraph><subparagraph id="H5ED4CFBA888840FD918560484E7D95C6"><enum>(B)</enum><text>one of the
counterparties to the security-based swap is not a security-based swap dealer
or major security-based swap participant.</text>
</subparagraph></paragraph><paragraph id="HA060F3C8C6FA434D8DD161EEE8EC66D9"><enum>(8)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to a
security-based swap one party to which is not a security-based swap dealer or
major security-based swap participant, and which is entered into before the end
of the 180-day period that begins with the effective date of this
paragraph.</text>
</paragraph></subsection><subsection id="H3693D6840B874EB3805B3B06D89EDFCE"><enum>(b)</enum><header>Consultation</header><text>The
Commission and the Commodity Futures Trading Commission shall consult with the
appropriate Federal banking agencies and each other prior to adopting rules
under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC9BBDB51E4334885AC28515A96A8AF59"><enum>(b)</enum><header>Clearing agency
requirements</header><text>Section 17A of the Securities Exchange Act of 1934
(15 U.S.C. 78q) is amended by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="HAF2B1EFF5FD94DD0A8AA0DD939EF360D" style="OLC">
<subsection commented="no" id="HE257FE7A97574A7BAEC643EB59040AC6"><enum>(g)</enum><header>Registration
requirement</header><text display-inline="yes-display-inline">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 swap.</text>
</subsection><subsection commented="no" id="H9B2FBF69F9634789AA3A2198DF3A6D5C"><enum>(h)</enum><header>Voluntary
registration</header>
<paragraph commented="no" id="H8DBA578178B64C0C8FC495911F9DF1B3"><enum>(1)</enum><header>Clearing
agencies</header><text>A person that clears agreements, contracts, or
transactions that are not required to be cleared under this Act may register
with the Commission as a clearing agency.</text>
</paragraph><paragraph commented="no" id="H12F56DE2F2FE4FF5914F9E9BDA804551"><enum>(2)</enum><header>Derivatives
clearing organizations</header><text>A clearing agency may clear swaps that are
required to be cleared by a person who is registered as a derivatives clearing
organization under the Commodity Exchange Act (7 U.S.C. 1, et seq.).</text>
</paragraph></subsection><subsection commented="no" id="H3C662AEF632B4CEAB119525F13E17423"><enum>(i)</enum><header>Required
registration for banks and clearing agencies</header><text>A person that is
required to be registered as a clearing agency under this section shall
register with the Commission regardless of whether the person is also a bank or
a derivatives clearing organization registered with the Commodity Futures
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1, et
seq.).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEC6401DE3ABB43F6B55621E514EEE441"><enum>(j)</enum><header>Reporting</header>
<paragraph commented="no" id="HEA6CD080838B41AC96E5A6F5DF96C138"><enum>(1)</enum><header>In
general</header><text>A clearing agency that clears security-based swaps shall
provide to the Commission and any designated swap repository all information
determined by the Commission to be necessary to perform its responsibilities
under this Act. The Commission shall adopt data collection and maintenance
requirements for security-based swaps cleared by clearing agencies that are
comparable to the corresponding requirements for security-based swaps accepted
by security-based swap repositories and security-based swaps traded on swap
execution facilities. The Commission shall share such information, upon
request, with the Board, the Commodity Futures Trading Commission, the
appropriate Federal banking agencies, the Financial Services Oversight Council,
and the Department of Justice or to other persons the Commission deems
appropriate, including foreign financial supervisors (including foreign futures
authorities), foreign central banks, and foreign ministries.</text>
</paragraph><paragraph commented="no" id="H1897CBE38E1C41DBB75600A5B945974A"><enum>(2)</enum><header>Public
information</header><text>A clearing agency that clears security-based swaps
shall provide to the Commission, or its designee, such information as is
required by, and in a form and at a frequency to be determined by, the
Commission, in order to comply with the public reporting requirements contained
in section 13.</text>
</paragraph></subsection><subsection commented="no" id="H5473211F1B9447D683BE41FA184FAD2C"><enum>(k)</enum><header>Designation of
compliance officer</header>
<paragraph commented="no" id="HAD971B81CA1647BE8A0EA10A8DB275FC"><enum>(1)</enum><header>In
general</header><text>Each clearing agency that clears security-based swaps
shall designate an individual to serve as a compliance officer.</text>
</paragraph><paragraph commented="no" id="H407C712BB13C4CC4A79606A5FF5A7AED"><enum>(2)</enum><header>Duties</header><text>The
compliance officer shall—</text>
<subparagraph commented="no" id="H7114B06A1B544687813711E7D1C56DD5"><enum>(A)</enum><text>report directly to
the board or to the senior officer of the clearing agency;</text>
</subparagraph><subparagraph commented="no" id="H55A5ECB695C9422C925C598822DD8B29"><enum>(B)</enum><text>in consultation
with the board of the clearing agency, a body performing a function similar to
that of a board, or the senior officer of the clearing agency, resolve any
conflicts of interest that may arise;</text>
</subparagraph><subparagraph commented="no" id="H262FCFBB7CA2457087EAED3F1C9F1AEA"><enum>(C)</enum><text>be responsible for
administering the policies and procedures required to be established pursuant
to this section;</text>
</subparagraph><subparagraph commented="no" id="H4E63E2D81EA647F2851EC235F84109F6"><enum>(D)</enum><text>ensure compliance
with securities laws and the rules and regulations issued thereunder, including
rules prescribed by the Commission pursuant to this section; and</text>
</subparagraph><subparagraph commented="no" id="H8554C95A2FA7460781A078F26DFAA273"><enum>(E)</enum><text>establish
procedures for remediation of noncompliance issues found during compliance
office reviews, lookbacks, internal or external audit findings, self-reported
errors, or through validated complaints which will establish the handling,
management response, remediation, retesting, and closing of noncompliance
issues.</text>
</subparagraph></paragraph><paragraph commented="no" id="H5F034624A78A4954A4123993452891DE"><enum>(3)</enum><header>Annual reports
required</header><text>The compliance officer shall annually prepare and sign a
report on the compliance of the clearing agency with the securities laws and
its policies and procedures, including its code of ethics and conflict of
interest policies, in accordance with rules prescribed by the Commission. Such
compliance report shall accompany the financial reports of the clearing agency
that are required to be furnished to the Commission pursuant to this section
and shall include a certification that, under penalty of law, the report is
accurate and complete.</text>
</paragraph></subsection><subsection id="H6773000EBCD546E5BCEDCA1BE2F802F9"><enum>(l)</enum><header>Standards for
clearing agencies clearing swap transactions</header><text display-inline="yes-display-inline">To be registered and to maintain
registration as a clearing agency that clears 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="HA07B1489C8B94E9E97E5FA6E9242C0F9"><enum>(m)</enum><header>Consultation</header><text>The
Commission and the Commodity Futures Trading Commission shall consult with the
appropriate Federal banking agencies and each other prior to adopting rules
under this section.</text>
</subsection><subsection commented="no" id="H802ECA6662604231952CE935DD801CFB"><enum>(n)</enum><header>Harmonization of
rules</header><text>Not later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading Commission
shall jointly adopt uniform rules governing persons that are registered as
derivatives clearing organizations for swaps under the Commodity Exchange Act
(7 U.S.C. 1, et seq.) and persons that are registered as clearing agencies for
security-based swaps under the Securities Exchange Act of 1934 (15 U.S.C. 78a,
et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H23A3FFD3DD4D435DB1F98E6E7E985638"><enum>(c)</enum><header>Execution of
security-based swaps</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 5 the following:</text>
<quoted-block display-inline="no-display-inline" id="H1AE44698E70F4A628763A4BACB44E163" style="OLC">
<section id="H8E4A96563E7F412582B11F24E131CDC2"><enum>5A.</enum><header>Execution of
security-based swaps</header>
<subsection id="H6FA7E26677154DF3B10BB1B04AA9B607"><enum>(a)</enum><header>Trade
execution</header>
<paragraph id="HCFBF9828089F422C8C7C0F2AAD80D3E1"><enum>(1)</enum><header>In
general</header><text>With respect to transactions involving security-based
swaps subject to the clearing requirement of section 3B and where both
counterparties are either security-based swap dealers or major security-based
swap participants, such counterparties shall—</text>
<subparagraph id="H6465D9BF1CEB43CCAD83B25E47F8B79F"><enum>(A)</enum><text>execute the
transaction on a national securities exchange registered pursuant to section
6(a) (in which event such transaction shall be subject to regulation under this
title as a transaction in a security); or</text>
</subparagraph><subparagraph id="HF5C48973B98C4C799F3A0940F3C79CEF"><enum>(B)</enum><text>execute the
transaction on a swap execution facility registered with the Commission.</text>
</subparagraph></paragraph><paragraph id="HA01524C174EB4BC2A5BFCEA6F303A608"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The requirements of subparagraphs (A) or
(B) of paragraph (1) shall not apply if no board of trade or swap execution
facility makes the swap available to trade.</text>
</paragraph><paragraph id="HFB3D10DE22234C08ADBF0738D40F6379"><enum>(3)</enum><header>Required
reporting</header><text display-inline="yes-display-inline">If the exception of
paragraph (2) applies and there is no facility that makes the swap available to
trade, the counterparties shall comply with any recordkeeping and transaction
reporting requirements as may be prescribed by the Commission with respect to
security-based swaps subject to the requirements of section 3B and where both
counterparties are either security-based swap dealers or major security-based
swap participants.</text>
</paragraph></subsection><subsection id="HD718810617F54B1582149C6CE7B70895"><enum>(b)</enum><header>Exchange
trading</header><text>In adopting rules and regulations, the Commission shall
endeavor to eliminate unnecessary impediments to the trading on national
securities exchanges or swap execution facilities, agreements or transactions
that would be commodity swaps but for the trading of such contracts, agreements
or transactions on such a designated contract
market.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEAF21EC281C248AAB47E96BD598E3E10"><enum>(d)</enum><header>swap execution
facilities</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a, et
seq.) is further amended by adding after section 3B (as added by subsection
(a)) the following:</text>
<quoted-block display-inline="no-display-inline" id="HE50095911B5743679A77C7C534143036" style="OLC">
<section id="H7A902E82ADA241AA88212BECC11D0499"><enum>3C.</enum><header>swap execution
facilities</header>
<subsection id="H05163064B90D4BD689B591FE7621744A"><enum>(a)</enum><header>Registration</header>
<paragraph id="H14A103415AF343FC95F413BD4C9A1898"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H6C1ACE3165534CD4A17FFFCEFEF2E28D"><enum>(A)</enum><text display-inline="yes-display-inline">No person may operate a swap execution
facility unless such facility is registered under this section.</text>
</subparagraph><subparagraph id="H090EB9C0715B418D857873C9ABDCF3BA"><enum>(B)</enum><text>For purposes of
this section, the term <quote>swap execution facility</quote> means an entity
that facilitates the execution of swaps between 2 persons through any means of
interstate commerce but which is not a designated contract market.</text>
</subparagraph></paragraph><paragraph id="H86C673E196B34D21949E8A6B669828C1"><enum>(2)</enum><header>Dual
registration</header><text>Any person that is required to be registered as a
swap execution facility under this section shall register with the Commission
regardless of whether that person also is registered with the Commodity Futures
Trading Commission as a swap execution facility.</text>
</paragraph></subsection><subsection id="H5AD7274D2E014E3884CD6594A7DC487B"><enum>(b)</enum><header>Requirements for
trading</header><text>A swap execution facility that is registered under
subsection (a) may trade any security-based swap.</text>
</subsection><subsection id="H7194AA07DD7F48B5A5A0569A31774775"><enum>(c)</enum><header>Trading by
exchanges</header><text>An exchange shall, to the extent that the exchange also
operates a swap execution facility and uses the same electronic trade execution
system for trading on the exchange and the swap execution facility, identify
whether the electronic trading is taking place on the exchange or the swap
execution facility.</text>
</subsection><subsection id="H09D1DAEAC5A648B29FD59B3B4AA9A110"><enum>(d)</enum><header>Criteria for
registration</header>
<paragraph id="H8108857877EB4EE8AF21B5705D6C308B"><enum>(1)</enum><header>In
general</header><text>To be registered as a swap execution facility, the
facility shall be required to demonstrate to the Commission that it meets the
criteria specified herein.</text>
</paragraph><paragraph id="H9399761C27DF4CFAABB41603F9D90952"><enum>(2)</enum><header>Deterrence of
abuses</header><text>The swap execution facility shall establish and enforce
trading and participation rules that will deter abuses and have the capacity to
detect, investigate, and enforce those rules, including means to—</text>
<subparagraph id="H0E05055743B749CE9AA2FFA4DFC4DF4B"><enum>(A)</enum><text>obtain information
necessary to perform the functions required under this section; or</text>
</subparagraph><subparagraph id="H3912DCB0842F46439CBC171599FBA8BB"><enum>(B)</enum><text>use means
to—</text>
<clause id="H9EABE007F7834DE1B425A7881948D7F8"><enum>(i)</enum><text>provide market
participants with impartial access to the market; and</text>
</clause><clause id="HDC330B8A610E46CDA3B5C8F391707CC3"><enum>(ii)</enum><text>capture
information that may be used in establishing whether rule violations have
occurred.</text>
</clause></subparagraph></paragraph><paragraph id="H7C7892ED52914F32BF08524D569472EE"><enum>(3)</enum><header>Trading
procedures</header><text>The swap execution facility shall establish and
enforce rules or terms and conditions defining, or specifications detailing,
trading procedures to be used in entering and executing orders traded on or
through its facilities.</text>
</paragraph><paragraph id="HB81B088C04A44E07A9270991736B1678"><enum>(4)</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 security-based swaps entered on or through its facilities, including the
clearance and settlement of the security-based swaps.</text>
</paragraph></subsection><subsection id="HA7C1B805ACE94FF48B8FB5D4263876AA"><enum>(e)</enum><header>Core principles
for swap execution facilities</header>
<paragraph id="H1915851710BE4E779BDE9DBB46FE6F80"><enum>(1)</enum><header>In
general</header><text>To maintain its registration as a swap execution
facility, the facility shall comply with the core principles specified in this
subsection and any requirement that the Commission may impose by rule or
regulation. Except where the Commission determines otherwise by rule or
regulation, the facility shall have reasonable discretion in establishing the
manner in which it complies with these core principles.</text>
</paragraph><paragraph id="H18848F0AF6D94E2AB9647CA3B7699328"><enum>(2)</enum><header>Compliance with
rules</header><text>The swap execution facility shall monitor and enforce
compliance with any of the rules of the facility, including the terms and
conditions of the security-based swaps traded on or through the facility and
any limitations on access to the facility.</text>
</paragraph><paragraph id="H2EF67D2917DE44EFBF56BBC62045F7B4"><enum>(3)</enum><header>Security-based
swaps not readily susceptible to manipulation</header><text>The swap execution
facility shall permit trading only in security-based swaps that are not readily
susceptible to manipulation.</text>
</paragraph><paragraph id="H282E49E6ABF34D5BB573B50F88911188"><enum>(4)</enum><header>Monitoring of
trading</header><text>The swap execution facility shall monitor trading in
security-based swaps to prevent manipulation and price distortion through
surveillance, compliance, and disciplinary practices and procedures, including
methods for conducting real-time monitoring of trading and comprehensive and
accurate trade reconstructions.</text>
</paragraph><paragraph id="H4E25E50C7F294443B108C176135BCED4"><enum>(5)</enum><header>Ability to
obtain information</header><text>The swap execution facility shall—</text>
<subparagraph id="H054FB2A2DC794BDB9CDB3ED47BBE8B22"><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="H687CB0D732634A7E8BCA95771D37A3A8"><enum>(B)</enum><text>provide the
information to the Commission upon request; and</text>
</subparagraph><subparagraph id="HDBC36469F3FE40D199E45A629465C076"><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="HE66871AA55774FC597C8E3B53322A4F1"><enum>(6)</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, where necessary and appropriate, including the authority
to suspend or curtail trading in a security-based swap.</text>
</paragraph><paragraph id="HAC0B5D592A794E10AC0ACA4C2AAF286C"><enum>(7)</enum><header>Timely
publication of trading information</header><text>The swap execution facility
shall make public timely information on price, trading volume, and other
trading data to the extent prescribed by the Commission.</text>
</paragraph><paragraph id="H30895452B9FA4317A346F96DA4176F6C"><enum>(8)</enum><header>Recordkeeping
and reporting</header><text>The swap execution facility shall maintain records
of all activities related 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 report to the Commission all information determined by the
Commission to be necessary or appropriate for the Commission to perform its
responsibilities under this Act in a form and manner acceptable to the
Commission. The Commission shall adopt data collection and reporting
requirements for swap execution facilities that are comparable to corresponding
requirements for clearing agencies and security-based swap repositories.</text>
</paragraph><paragraph id="H9FE637593B90455CBC41B215168D9A7E"><enum>(9)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the swap execution facility shall avoid—</text>
<subparagraph id="H7168D25E852745078FB7A70B3E347FC1"><enum>(A)</enum><text>adopting any rules
or taking any actions that result in any unreasonable restraints of trade;
or</text>
</subparagraph><subparagraph id="H567EA2CF393244E9A0EEF71A196E466A"><enum>(B)</enum><text>imposing any
material anticompetitive burden on trading on the swap execution
facility.</text>
</subparagraph></paragraph><paragraph id="H8E842E99F0CB483680638EC997DD289B"><enum>(10)</enum><header>Conflicts of
interest</header>
<subparagraph id="HAE2873974BE44011A336A0A45FCDDE09"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The swap execution
facility shall establish and enforce rules to minimize conflicts of interest in
its decision-making process and establish a process for resolving such
conflicts of interest.</text>
</subparagraph><subparagraph id="H01991F2EF1D245D2B03FC66C2272B306"><enum>(B)</enum><header>Beneficial
ownership by a restricted owner</header><text display-inline="yes-display-inline">The rules of the swap execution facility
shall provide that a restricted owner shall not be permitted directly or
indirectly to acquire beneficial ownership of interests in the facility or in
persons with a controlling interest in the facility, to the extent that such an
acquisition would result in restricted owners controlling more than 20 percent
of the votes entitled to be cast on any matter by the holders of the ownership
interests.</text>
</subparagraph><subparagraph id="H576C87DB62764DD99D350FE3C904653A"><enum>(C)</enum><header>Association with
a restricted owner</header><text>The rules of the swap execution facility shall
provide that a majority of the directors of the facility shall not be
associated with a restricted owner.</text>
</subparagraph></paragraph><paragraph id="H9CD613CD05A44609AF6C85D1C2239014"><enum>(11)</enum><header>Designation of
compliance officer</header>
<subparagraph id="H4C00ED8F5F7A49D786FAA5CD8CBBD3E3"><enum>(A)</enum><header>In
general</header><text>Each swap execution facility shall designate an
individual to serve as a compliance officer.</text>
</subparagraph><subparagraph id="H56B9B836C7724BE2918FAB06E2DC3EC7"><enum>(B)</enum><header>Duties</header><text>The
compliance officer—</text>
<clause id="HE898530F5377480C971718F7D7A54D94"><enum>(i)</enum><text>shall report
directly to the board or to the senior officer of the facility;</text>
</clause><clause id="H6F5D0B29F46B43DDBA2FB8D1F9A57471"><enum>(ii)</enum><text>shall—</text>
<subclause id="H6FA95F79414B454E9D4B9FD669326C1D"><enum>(I)</enum><text>review compliance
with the core principles in section 3B(e);</text>
</subclause><subclause id="HC1F8118E8545459D8E364A9C0DB1410C"><enum>(II)</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>
</subclause><subclause id="HF924AFEE3B7E4245A2E23B61D0DCF97A"><enum>(III)</enum><text>be responsible
for administering the policies and procedures required to be established
pursuant to this section; and</text>
</subclause><subclause id="H257BA2BD4C5B4E03859E214EAFB724AD"><enum>(IV)</enum><text>ensure compliance
with securities laws and the rules and regulations issued thereunder, including
rules prescribed by the Commission pursuant to this section; and</text>
</subclause></clause><clause id="HBE14845E9525426C881A2145BDBCCB96"><enum>(iii)</enum><text>shall establish
procedures for remediation of non-compliance issues found during compliance
office reviews, lookbacks, internal or external audit findings, self-reported
errors, or through validated complaints. Procedures will establish the
handling, management response, remediation, retesting, and closing of
noncompliant issues.</text>
</clause></subparagraph><subparagraph id="H0811DCE3788F4EA7A592739B71404D2B"><enum>(C)</enum><header>Annual reports
required</header><text>The compliance officer shall annually prepare and sign a
report on the compliance of the facility with the securities laws and its
policies and procedures, including its code of ethics and conflict of interest
policies, in accordance with rules prescribed by the Commission. Such
compliance report shall accompany the financial reports of the facility that
are required to be furnished to the Commission pursuant to this section and
shall include a certification that, under penalty of law, the report is
accurate and complete.</text>
</subparagraph></paragraph></subsection><subsection id="H0C9B949BE0BC4A4BA3204144DEA57614"><enum>(f)</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 such
organization is subject to comparable, comprehensive supervision and regulation
on a consolidated basis by the Commodity Futures Trading Commission, a
Prudential Regulator or the appropriate governmental authorities in the
organization’s home country.</text>
</subsection><subsection id="H8BEE8ABC99004F6AB67A7A1273DF0512"><enum>(g)</enum><header>Harmonization of
rules</header><text>Not later than 180 days after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading Commission
shall jointly prescribe rules governing the regulation of swap execution
facilities under this section and section 5h of the Commodity Exchange Act (7
U.S.C.
7b–3).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC1AA6C36006C4A1BB6F874AD75E69F86"><enum>(e)</enum><header>Segregation of
assets held as collateral in swap transactions</header><text display-inline="yes-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a, et seq.) is further amended by adding after section 3C (as added by
subsection (b)) the following:</text>
<quoted-block display-inline="no-display-inline" id="H503E912EAB904BF68C95DAC22BA76512" style="OLC">
<section commented="no" id="H1784590DFEEC4934A14D357BD2760D71"><enum>3D.</enum><header>Segregation of
assets held as collateral in over-the-counter swap transactions</header>
<subsection id="H5BCB90D6CB594F8DA130349DB2E482F8"><enum>(a)</enum><header>Segregation</header><text>At
the request of a counterparty to a security-based swap who provides funds or
other property to a swap dealer as variation or initial margin or collateral to
secure the obligations of the counterparty under a security-based swap between
the counterparty and the swap dealer that is not submitted for clearing to a
derivatives clearing agency, the swap dealer shall segregate the variation or
initial margin or collateral for the benefit of the counterparty, and maintain
the variation or initial margin or collateral in an account which is carried by
an independent third-party custodian and designated as a segregated account for
the counterparty, in accordance with such rules and regulations as the
Commission or Prudential Regulator may prescribe. If a securities-based swap
counterparty is a swap dealer or major securities-based swap participant who
owns more than 20 percent of, or has more than 50 percent representation on the
board of directors of, a custodian, the custodian shall not be considered
independent from the securities-based swap counterparties for purposes of the
preceding sentence. This subsection shall not be interpreted to preclude
commercial arrangements regarding the investment of the segregated funds or
other property and the related allocation of gains and losses resulting from
any such investment.</text>
</subsection><subsection id="H4AB060CA605146DFA90A592FF92A19FB"><enum>(b)</enum><header>back office
audit reporting</header><text display-inline="yes-display-inline">If a
security-based swap dealer does not segregate funds at the request of a
security-based swap counterparty in accordance with subsection (a), the
security-based swap dealer shall report to its counterparty on a quarterly
basis that its back office procedures relating to margin and collateral
requirements are in compliance with the agreement of the
counterparties.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3B1A2A8F6A8342F385083E17C9752B18"><enum>(f)</enum><header>Trading in
security-based swap agreements</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="H6D5414C4547548EB8741047A79AACA7F" style="OLC">
<subsection id="H99857B29F9684578ACEA2583D046216E"><enum>(l)</enum><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="H6566034F438447FF9FEFF2C39394FC1B"><enum>(g)</enum><header>Additions of
security-based swaps to certain enforcement provisions</header><text>Paragraphs
(1) through (3) of section 9(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78i(b)(1)–(3)) are amended to read as follows:</text>
<quoted-block id="H652D2079F97D4479B5AB9800B42E94A0" style="OLC">
<paragraph id="H352FDF453B7A463386311FF36DF35908"><enum>(1)</enum><text>any transaction in
connection with any security whereby any party to such transaction acquires (A)
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; (B) any
security futures product on the security; or (C) any security-based swap
involving the security or the issuer of the security;</text>
</paragraph><paragraph id="H66AFE13EB8CB4C67A178597FB49032DE"><enum>(2)</enum><text>any transaction in
connection with any security with relation to which he has, directly or
indirectly, any interest in any (A) such put, call, straddle, option, or
privilege; (B) such security futures product; or (C) such security-based swap;
or</text>
</paragraph><paragraph id="H64C8DB97E2C6431E931946A25E8610DE"><enum>(3)</enum><text>any transaction in
any security for the account of any person who he has reason to believe has,
and who actually has, directly or indirectly, any interest in (A) any such put,
call, straddle, option, or privilege; (B) such security futures product with
relation to such security; or (C) any security-based swap involving such
security or the issuer of such
security.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6819CBB53523436FBDC43E1BE7F905F8"><enum>(h)</enum><header>Rulemaking
authority To prevent fraud, manipulation, and deceptive conduct in
security-based swaps and security-based swap agreements</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 id="HE6E3019D85B14E59B8306EAD32218759" style="OLC">
<subsection id="HDD0433AE3CF242FC84670385EE8F17C9"><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 or any
security-based swap agreement, 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="H8AD4357DFFA744EAB23742AC922885BE"><enum>(i)</enum><header>Position limits
and position accountability for security-based swaps</header><text display-inline="yes-display-inline">The Securities Exchange Act of 1934 is
further amended by inserting after section 10B (15 U.S.C. 78j–1) (as added by
section 2003(a)) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HFA0E51BC134E4A29AB26BE1F342E009D" style="OLC">
<section id="H04795A289C5A4AF596581F2109D387EE"><enum>10C.</enum><header>Position limits
and position accountability for security-based swaps and large trader
reporting</header>
<subsection id="H803F1C5B756E41F58936461C022EDA4C"><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 may, 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 or
security-based swap agreement that may be held by any person. In establishing
such limits, the Commission may require any person to aggregate positions
in—</text>
<paragraph id="H9435D2950578480EA598023E6A5DD942"><enum>(1)</enum><text>any security-based
swap and any security or loan or group or 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 security-based swap agreement and any other instrument
relating to such security or loan or group or index of securities or loans;
or</text>
</paragraph><paragraph id="HFC1F5377D1854FAD9FB71668D6BA2843"><enum>(2)</enum><text>any security-based
swap and (A) 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 section
3(a)(76) and (B) any security-based swap and any other instrument relating to
the same security or group or index of securities.</text>
</paragraph></subsection><subsection id="HAE1BC35F90D44758B210FCE0A87F0A13"><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 it may establish under this section with respect to position
limits.</text>
</subsection><subsection id="HE637077DC81D448B99B23BA1684622E9"><enum>(c)</enum><header>SRO
Rules</header>
<paragraph id="H10CFD5AEAD074CD692F771F4FC2E0C61"><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="H942376D29A6E4266B39D2D45A6F60195"><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="HAABD6D7A08A5434CA2F1689E13B6EC91"><enum>(i)</enum><text>any member of such
self-regulatory organization; or</text>
</clause><clause id="HF580FBE58C6B46EF8509718EC0DBEBEA"><enum>(ii)</enum><text>any person for
whom a member of such self-regulatory organization effects transactions in such
security-based swap or other security-based swap agreement; and</text>
</clause></subparagraph><subparagraph id="H21163261CB8C43F799AF4A8AB7157545"><enum>(B)</enum><text>to adopt rules
reasonably designed to ensure compliance with requirements prescribed by the
Commission under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="HA3AFDF385442451782F72D5A1F10C04E"><enum>(2)</enum><header>Requirement to
aggregate positions</header><text>In establishing such limits, the
self-regulatory organization may require such member or person to aggregate
positions in—</text>
<subparagraph id="HBFC7AC7DBE14418C8AE585BB5449F297"><enum>(A)</enum><text>any security-based
swap and any security or loan or group or 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 security-based swap agreement and any other instrument
relating to such security or loan or group or index of securities or loans;
or</text>
</subparagraph><subparagraph id="H7D982DFA69564576BBBA28DB28654542"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD2F423BD3BC34256A497A440E84A2A6B"><enum>(i)</enum><text>any security-based
swap;</text>
</clause><clause id="H4E4B70507A1C491EA3E8DC9BE7643151" indent="up1"><enum>(ii)</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 section 3(a)(76); and</text>
</clause><clause id="HF7DE337800B843C18D91BCBE551BF733" indent="up1"><enum>(iii)</enum><text>any security-based swap and any
other instrument relating to the same security or group or index of
securities.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H66969E5DF3F04CEC928357A782B26343"><enum>(d)</enum><header>Large trader
reporting</header><text>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 security-based swap agreement and any
security or loan or group or index of securities or loans as set forth in
paragraphs (1) and (2) of subsection (a) to report such information as the
Commission may prescribe regarding any position or positions in any
security-based swap or security-based swap agreement and any security or loan
or group or index of securities or loans and any other instrument relating to
such security or loan or group or index of securities or loans as set forth in
paragraphs (1) and (2) of subsection
(a).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H87074CB5BE0D4B0BBE5A4CA74509775E"><enum>(j)</enum><header>Public reporting
and repositories for security-based swap agreements</header><text display-inline="yes-display-inline">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="H8248ACCA9C8547F59FDB7DBE820EEB20" style="OLC">
<subsection id="H2BBEFA308F764B0DB7F6567114B0D687"><enum>(m)</enum><header>Public reporting
of aggregate security-based swap data</header>
<paragraph id="H09913B06D5814AAA815C5EFA6B282C05"><enum>(1)</enum><header>In
general</header><text>The Commission, or a person designated by the Commission
pursuant to paragraph (2), shall make available to the public, in a manner that
does not disclose the business transactions and market positions of any person,
aggregate data on security-based swap trading volumes and positions from the
sources set forth in paragraph (3).</text>
</paragraph><paragraph id="HA9ECEFCEB26847C1AFF25FFF1D82E26D"><enum>(2)</enum><header>Designee of the
commission</header><text>The Commission may designate a clearing agency or a
security-based swap repository to carry out the public reporting described in
paragraph (1).</text>
</paragraph><paragraph id="HFFFF7F3E5D334C449EB50DE802D6B4FF"><enum>(3)</enum><header>Sources of
information</header><text>The sources of the information to be publicly
reported as described in paragraph (1) are—</text>
<subparagraph id="HE5C8B8F5237E4F258F4BC255AF93AB8A"><enum>(A)</enum><text>clearing agencies
pursuant to section 3A;</text>
</subparagraph><subparagraph id="H47BFA68C6F6048FEB52E4AEFC5E4FC2B"><enum>(B)</enum><text>security-based
swap repositories pursuant to subsection (n); and</text>
</subparagraph><subparagraph id="H40E3E131CF2B449D8C564DBA71F5F7E3"><enum>(C)</enum><text>reports received
by the Commission pursuant to section 13A.</text>
</subparagraph></paragraph></subsection><subsection id="HEA12710622C04E5AAC337BB140C99236"><enum>(n)</enum><header>Security-based
swap repositories</header>
<paragraph id="HDE475B1117D3470C83568487139F4CBA"><enum>(1)</enum><header>Registration
requirement</header>
<subparagraph id="H07A2564AFA5B4E56B11B5D67084EA220"><enum>(A)</enum><header>In
general</header><text>It shall be unlawful for a security-based swap
repository, 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 repository.</text>
</subparagraph><subparagraph id="H587B68B4E88E477FADCE5EB4FD844BA3"><enum>(B)</enum><header>Inspection and
examination</header><text>Registered security-based swap repositories shall be
subject to inspection and examination by any representatives of the
Commission.</text>
</subparagraph></paragraph><paragraph id="HED33C14D22BC427681C5A32E3A7E2217"><enum>(2)</enum><header>Standard
setting</header>
<subparagraph id="H04F159C4CE864B10BAD4E31E49AC1B25"><enum>(A)</enum><header>Data
identification</header><text>The Commission shall prescribe standards that
specify the data elements for each security-based swap that shall be collected
and maintained by each security-based swap repository.</text>
</subparagraph><subparagraph id="HB1F7CC44FD2A4D44AF3B2B5EBBD162B7"><enum>(B)</enum><header>Data collection
and maintenance</header><text>The Commission shall prescribe data collection
and data maintenance standards for security-based swap repositories.</text>
</subparagraph><subparagraph id="H9497082110DD4438850EF6B6D422D782"><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
that clear security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H4C640540F94F418AA63412229A68BFC6"><enum>(3)</enum><header>Duties</header><text>A
security-based swap repository shall—</text>
<subparagraph id="H75870B65CD864DD7B513AB9EEF5EEEB2"><enum>(A)</enum><text>accept data
prescribed by the Commission for each security-based swap under this paragraph
(2);</text>
</subparagraph><subparagraph id="H38E78D7B79E84F349A4F2CA04E5C4720"><enum>(B)</enum><text>maintain such data
in such form and manner and for such period as may be required by the
Commission;</text>
</subparagraph><subparagraph id="H0339DBCD6CA94A1AA91F47D53C06C0C3"><enum>(C)</enum><text>provide to the
Commission, or its designee, such information as is required by, and in a form
and at a frequency to be determined by, the Commission, in order to comply with
the public reporting requirements contained in subsection (m); and</text>
</subparagraph><subparagraph id="HA42B51EA3A0641469E79BC91CCDB8E4A"><enum>(D)</enum><text>make available, on
a confidential basis, all data obtained by the security-based swap repository,
including individual counterparty trade and position data, to the Commission,
the appropriate Federal banking agencies, the Commodity Futures Trading
Commission, the Financial Services Oversight Council, and the Department of
Justice or to other persons the Commission deems appropriate, including foreign
financial supervisors (including foreign futures authorities), foreign central
banks, and foreign ministries.</text>
</subparagraph></paragraph><paragraph id="HE3B5D82E9AA34439AF11D9407D6DB110"><enum>(4)</enum><header>Required
registration for security-based swap repositories</header><text>Any person that
is required to be registered as a securities-based swap repository under this
subsection shall register with the Commission, regardless of whether that
person also is registered with the Commodity Futures Trading Commission as a
swap repository.</text>
</paragraph><paragraph id="HC5258A4A102549B1BBFF788FEACD2802"><enum>(5)</enum><header>Harmonization of
rules</header><text>Not later than 180 days after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading Commission
shall jointly adopt uniform rules governing persons that are registered under
this section and persons that are registered as swap repositories under the
Commodity Exchange Act (7 U.S.C. 1, et seq.), including uniform rules that
specify the data elements that shall be collected and maintained by each
repository.</text>
</paragraph><paragraph id="H64FFC701F2524F56A7EE7FC59B16A531"><enum>(6)</enum><header>Exemptions</header><text>The
Commission may exempt, conditionally or unconditionally, a security-based swap
repository from the requirements of this section if the Commission finds that
such security-based swap repository is subject to comparable, comprehensive
supervision or regulation on a consolidated basis by the Commodity Futures
Trading Commission, a Prudential Regulator or the appropriate governmental
authorities in the organization’s home
country.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HF824D151C2464FB2ABB61194A7EF03CC"><enum>3204.</enum><header>Registration
and regulation of swap dealers and major swap participants</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 15E (15 U.S.C.
78o-7) the following:</text>
<quoted-block display-inline="no-display-inline" id="HEAD7CAF028E04FD8A3A32E6F9F9EAEB8" style="OLC">
<section id="H4B1C0B7D305C4515818C469FA7D9D8D6"><enum>15F.</enum><header>Registration
and regulation of security-based swap dealers and major security-based swap
participants</header>
<subsection id="HC43C3C11B5C940F98C7A8E45E0F377E0"><enum>(a)</enum><header>Registration</header>
<paragraph id="H99EB2DF7C3E445E1B1DB3BB091F12DCC"><enum>(1)</enum><text>It shall be
unlawful for any person to act as a security-based swap dealer unless such
person is registered as a security-based swap dealer with the
Commission.</text>
</paragraph><paragraph id="H28B8E38DA2E242B18D7DFD3871B92684"><enum>(2)</enum><text>It shall be
unlawful for any person to act as a major security-based swap participant
unless such person is registered as a major security-based swap participant
with the Commission.</text>
</paragraph></subsection><subsection id="HDB26C71D14F64D8A9BEAE7E43CF0B0E0"><enum>(b)</enum><header>Requirements</header>
<paragraph id="HBEE354B097A24F59B558650803BAB1AB"><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="HDF5E9BF1481546E09856F22963558753"><enum>(2)</enum><header>Contents</header><text>The
application shall be made in such form and manner as prescribed by the
Commission, giving any information and facts as the Commission may deem
necessary concerning the business in which the applicant is or will be engaged.
Such person, when registered as a security-based swap dealer or major
security-based swap participant, shall continue to report and furnish to the
Commission such information pertaining to such person’s business as the
Commission may require.</text>
</paragraph><paragraph id="H60D6749083194381AFB1DB9761CAE37A"><enum>(3)</enum><header>Expiration</header><text>Each
registration shall expire at such time as the Commission may by rule or
regulation prescribe.</text>
</paragraph><paragraph id="H7D2C484AFBEA488193F567F20512D76C"><enum>(4)</enum><header>Rules</header><text>Except
as provided in subsections (c), (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 security-based swap
dealers and major security-based swap participants. Except as provided in
subsections (c) and (e), the Commission may provide conditional or
unconditional exemptions from rules prescribed under this section for
security-based swap dealers and major security-based swap participants that are
subject to substantially similar requirements as brokers or dealers.</text>
</paragraph><paragraph id="H8966570ED8ED42A5A649933A9FA52687"><enum>(5)</enum><header>Transition</header><text>Rules
adopted under this section shall provide for the registration of security-based
swap dealers and major security-based swap participants no later than 1 year
after the effective date of the <short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</paragraph></subsection><subsection id="HE49EEFA931CC4DAAA0DDEA49C1E3FFAE"><enum>(c)</enum><header>Dual
registration</header>
<paragraph id="HAFFB3A704BDD48CFA8E19B2AC51DE259"><enum>(1)</enum><header>Security-based
swap dealers</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 that person also is a bank or is registered
with the Commodity Futures Trading Commission as a swap dealer.</text>
</paragraph><paragraph id="H5E179C8E14154B71B7995D2F19B4DB34"><enum>(2)</enum><header>Major
security-based swap participants</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 that person also is a
bank or is registered with the Commodity Futures Trading Commission as a major
swap participant.</text>
</paragraph></subsection><subsection id="HAEE1E3CF1CCF4B96A59F71C33B06486C"><enum>(d)</enum><header>Joint
rules</header>
<paragraph id="H9EF74279AA4A4930A7765420A8B99FCA"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the effective date of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading Commission
shall jointly adopt uniform rules for persons that are registered as
security-based swap dealers or major security-based swap participants under
this Act and persons that are registered as swap dealers or major swap
participants under the Commodity Exchange Act (7 U.S.C. 1, et seq.).</text>
</paragraph><paragraph id="HC30F2CA6BBD445ABADEAC5C8E8EBD769"><enum>(2)</enum><header>Exception for
prudential requirements</header><text>The Commission and the Commodity Futures
Trading Commission shall not prescribe rules imposing prudential requirements
(including activity restrictions) on security-based swap dealers or major
security-based swap participants for which there is a Prudential Regulator.
This provision shall not be construed as limiting the authority of the
Commission and the Commodity Futures Trading Commission to prescribe
appropriate business conduct, reporting, and recordkeeping requirements to
protect investors.</text>
</paragraph></subsection><subsection id="H503E2B985E66476F896BA93F5C6421FC"><enum>(e)</enum><header>Capital and
margin requirements</header>
<paragraph id="HA6A467F1E15748E39ED380E3CE7D92C8"><enum>(1)</enum><header>In
general</header>
<subparagraph id="HF4EA56ECE670408095AB23BA9AA272E2"><enum>(A)</enum><header>Bank
security-based swap dealers and major security-based swap
participants</header><text>Each registered security-based swap dealer and major
security-based swap participant for which there is a Prudential Regulator shall
meet such minimum capital requirements and minimum margin requirements as the
Prudential Regulators shall by rule or regulation jointly prescribe to help
ensure the safety and soundness of the security-based swap dealer or major
security-based swap participant.</text>
</subparagraph><subparagraph id="H15358856AE7949D5A7314715563A4563"><enum>(B)</enum><header>Nonbank
security-based swap dealers and major security-based swap
participants</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 margin requirements as
the Commission and the Commodity Futures Trading Commission shall by rule or
regulation jointly prescribe to help ensure the safety and soundness of the
security-based swap dealer or major security-based swap participant.</text>
</subparagraph></paragraph><paragraph id="H205FE2A503DD48B0AEFE01D29D4B95AC"><enum>(2)</enum><header>Joint
rules</header>
<subparagraph id="HAA85E184955849A6AB15943693B8E435"><enum>(A)</enum><header>Bank
security-based swap dealers and major security-based swap
participants</header><text>Within 180 days of the enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Prudential Regulators, in consultation with the
Commission and the Commodity Futures Trading Commission, shall jointly adopt
rules imposing capital and margin requirements under this subsection for
security-based swap dealers and major security-based swap participants.</text>
</subparagraph><subparagraph id="H689CEBEC2779430DBF109D85A80B990C"><enum>(B)</enum><header>Nonbank
security-based swap dealers and major security-based swap
participants</header><text>Within 180 days of the enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading
Commission, in consultation with the Prudential Regulators, shall jointly adopt
rules imposing capital and margin requirements under this subsection for
security-based swap dealers and major security-based swap participants for
which there is no Prudential Regulator.</text>
</subparagraph></paragraph><paragraph id="H37FE42340058499AB99A69A9F63B4D02"><enum>(3)</enum><header>Capital</header>
<subparagraph id="H6FF37AD56327423089F41C118A0CF0CB"><enum>(A)</enum><header>Bank
security-based swap dealers and major security-based swap
participants</header><text>In setting capital requirements under this
subsection, the Prudential Regulators shall impose—</text>
<clause id="H160A10FB77C64ED188180C1832126136"><enum>(i)</enum><text>a
capital requirement that is greater than zero for security-based swaps that are
cleared by a clearing agency; and</text>
</clause><clause id="HD8EE6B0A0A4D4896AB0CE6C3C686F7C1"><enum>(ii)</enum><text>to offset the
greater risk to the security-based swap dealer or major security-based swap
participant and to the financial system arising from the use of security-based
swaps that are not centrally cleared, higher capital requirements for
security-based swaps that are not cleared by a clearing agency than for
security-based swaps that are centrally cleared.</text>
</clause></subparagraph><subparagraph id="H6505F8A2DC954F3D83BA84F6F341672B"><enum>(B)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to a
security-based swap one party to which is not a security-based swap dealer or
major security-based swap participant, and which is entered into before the end
of the 90-day period that begins with the effective date of this
subparagraph.</text>
</subparagraph><subparagraph id="H76EDF398E3B743A9983CBC600D2D222C"><enum>(C)</enum><header>Nonbank
security-based swap dealers and major security-based swap
participants</header><text>Capital requirements set by the Commission and the
Commodity Futures Trading Commission under this subsection shall be as strict
as or stricter than the capital requirements set by the Prudential Regulators
under this subsection.</text>
</subparagraph><subparagraph id="HCB552E0DC15E469AA1F9096BDC17F659"><enum>(D)</enum><header>Bank holding
companies</header><text>Capital requirements set by the Board for
security-based swaps of bank holding companies on a consolidated basis shall be
as strict as or stricter than the capital requirements set by the Prudential
Regulators under this subsection.</text>
</subparagraph></paragraph><paragraph id="HB3BB284666BE4CD88D7A5CC2910FCEC7"><enum>(4)</enum><header>Margin</header>
<subparagraph id="H0FC8595F001742A08C38FA300C93009B"><enum>(A)</enum><header>Bank
security-based swap dealers and major security-based swap
participants</header><text>The Prudential Regulators shall impose margin
requirements under this subsection on all security-based swaps that are not
cleared by a registered clearing agency.</text>
</subparagraph><subparagraph id="H59CB9CCC0EB5401CA51D5C0D55658362"><enum>(B)</enum><header>Non-swap dealers
and major market participants</header><text>The Prudential Regulators may, but
are not required to, impose margin requirements with respect to security-based
swaps in which one of the counterparties is not a swap dealer, major swap
participant, security-based swap dealer or major security-based swap
participant. Margin requirements for swaps set by the Commission and the
Commodity Futures Trading Commission shall provide for the use of non-cash
assets as collateral.</text>
</subparagraph><subparagraph id="HB6B0AF17A03D443B98A744028A604029"><enum>(C)</enum><header>Exclusion</header><text display-inline="yes-display-inline">Subparagraph (B) shall not apply to a
security-based swap one party to which is not a security-based swap dealer or
major security-based swap participant, and which is entered into before the end
of the 90-day period that begins with the effective date of this
subparagraph.</text>
</subparagraph><subparagraph id="H4DC5BC17FC4C4FA1AF6D2B571E2A919B"><enum>(D)</enum><header>Nonbank
security-based swap dealers and major security-based swap
participants</header><text>Margin requirements for security-based swaps set by
the Commission and the Commodity Futures Trading Commission under this
subsection shall be as strict as or stricter than margin requirements for
security-based swaps set by the Prudential Regulators.</text>
</subparagraph></paragraph></subsection><subsection id="H56FA89DA1049423C9A8D74194F77BCE1"><enum>(f)</enum><header>Reporting and
recordkeeping</header>
<paragraph id="H088F7AAE040D430DBE2ACDF9921CADBD"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant—</text>
<subparagraph id="HFF0FD919247341078BB20B88564CA967"><enum>(A)</enum><text>shall make such
reports as are prescribed by the Commission by rule or regulation regarding the
transactions and positions and financial condition of such person;</text>
</subparagraph><subparagraph id="H82A060EA8F4A4E8AAE76E0C6274004BF"><enum>(B)</enum><text>for which—</text>
<clause id="H0858777342DF4C7BB3D4F22D4C07FCF0"><enum>(i)</enum><text>there is a
Prudential Regulator, shall keep books and records of all activities related to
its 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; or</text>
</clause><clause id="HE9FE3A21A2E643FBA0D90EFEC933956C"><enum>(ii)</enum><text>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="HA44FD2A43A364A8AA767D076DFCE8069"><enum>(C)</enum><text>shall keep such
books and records open to inspection and examination by any representative of
the Commission; and</text>
</subparagraph><subparagraph commented="no" id="H46E05003B88345439EF34032A6E780E8"><enum>(D)</enum><text display-inline="yes-display-inline">shall keep any such books and records
relating to transactions in swaps based on 1 or more securities open to
inspection and examination by the Commission.</text>
</subparagraph></paragraph><paragraph id="H11415B81E4A749F4A2742BEC1F9AB36D"><enum>(2)</enum><header>Rules</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading
Commission, in consultation with the appropriate Federal banking agencies,
shall jointly adopt rules governing reporting and recordkeeping for swap
dealers, major swap participants, security-based swap dealers and major
security-based swap participants.</text>
</paragraph></subsection><subsection id="HFB6288781E484945BA40FD2F6C3CAAB4"><enum>(g)</enum><header>Daily trading
records</header>
<paragraph id="HC8CD385D31FB4D31837A7FF35D137031"><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 its
security-based swaps and all related records (including related transactions)
and recorded communications including but not limited to electronic mail,
instant messages, and recordings of telephone calls, for such period as may be
prescribed by the Commission by rule or regulation.</text>
</paragraph><paragraph id="H6B6A476900FB4EA2B25AF099DAD8CFDD"><enum>(2)</enum><header>Information
requirements</header><text>The daily trading records shall include such
information as the Commission shall prescribe by rule or regulation.</text>
</paragraph><paragraph id="H20F6473638904DEBA77106A99BBBF1B3"><enum>(3)</enum><header>Customer
records</header><text>Each registered security-based swap dealer or major
security-based swap participant shall maintain daily trading records for each
customer or counterparty in such manner and form as to be identifiable with
each security-based swap transaction.</text>
</paragraph><paragraph id="H8DD1A7FF26334B7BA94AF760ECEBA333"><enum>(4)</enum><header>Audit
trail</header><text>Each registered security-based swap dealer or major
security-based swap participant shall maintain a complete audit trail for
conducting comprehensive and accurate trade reconstructions.</text>
</paragraph><paragraph id="H463F44BCE8BE48E5A6CD39EDB4615F0D"><enum>(5)</enum><header>Rules</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading
Commission, in consultation with the appropriate Federal banking agencies,
shall jointly adopt rules governing daily trading records for swap dealers,
major swap participants, security-based swap dealers, and major security-based
swap participants.</text>
</paragraph></subsection><subsection id="HA26809CDA1514C5CA92C59965FB524EC"><enum>(h)</enum><header>Business conduct
standards</header>
<paragraph id="H2969D222BCE54A6C948C66843BB86781"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with business conduct standards
as may be prescribed by the Commission by rule or regulation addressing—</text>
<subparagraph id="H2689FE20EABC4FAEBC75B518517780C0"><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="H81635346B24D4025A28EAD29FD4BFEA5"><enum>(B)</enum><text>diligent
supervision of its business as a security-based swap dealer;</text>
</subparagraph><subparagraph id="H658BFCED5083455BBC06E319AAFA81CC"><enum>(C)</enum><text>adherence to all
applicable position limits;</text>
</subparagraph><subparagraph id="H1DD89F7B9247451F8D312F2AA78DE58F"><enum>(D)</enum><text display-inline="yes-display-inline">the prevention of self-dealing by limiting
the extent to which a security-based swap dealer or major security-based swap
participant may conduct business with a clearing agency, an exchange, or an
alternative swap execution facility that clears or trades security-based swaps
and in which such a dealer or participant has a material debt or equity
investment; and</text>
</subparagraph><subparagraph id="H6A9EB1953DAF41909F24B77707B1D031"><enum>(E)</enum><text>such other matters
as the Commission shall determine to be necessary or appropriate.</text>
</subparagraph></paragraph><paragraph id="H3957D5A73DCD45DA9D1FEFE1992EE5EF"><enum>(2)</enum><header>Business conduct
requirements</header><text>Business conduct requirements adopted by the
Commission shall—</text>
<subparagraph id="HB2CBD25E14E5416584CDB490BF7EEB9F"><enum>(A)</enum><text>establish the
standard of care for a security-based swap dealer or major security-based swap
participant to verify that any security-based swap counterparty meets the
eligibility standards for an eligible contract participant;</text>
</subparagraph><subparagraph id="HA49C52C7CB3F45478AF3513F173061A0"><enum>(B)</enum><text>require disclosure
by the security-based swap dealer or major security-based swap participant to
any counterparty to the security-based swap (other than a swap dealer, major
swap participant, security-based swap dealer or major security-based swap
participant) of—</text>
<clause id="H596ACF0BA3FC497590137AFB14AED60C"><enum>(i)</enum><text>information about
the material risks and characteristics of the security-based swap;</text>
</clause><clause id="HD94A45E169FC44809E2D2649FBEA2FAE"><enum>(ii)</enum><text display-inline="yes-display-inline">for cleared swaps, upon the request of the
counterparty, the daily mark from the appropriate clearinghouse and for
non-cleared swaps, upon the request of the counterparty, the daily mark of the
security-based swap dealer or major security-based swap participant; and</text>
</clause><clause id="H08FE176C0D53412C96F0F50D317843BB"><enum>(iii)</enum><text>any other
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></subparagraph><subparagraph id="HA0945774F49B44E0B07CA0180EB9EB7E"><enum>(C)</enum><text>establish such
other standards and requirements as the Commission may determine are necessary
or appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of this title.</text>
</subparagraph></paragraph><paragraph id="H8AA1E867BF144891A6C5D394380243D4"><enum>(3)</enum><header>Rules</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of the <short-title>Over-the-Counter Derivatives
Markets Act of 2009</short-title>, the Commission and the Commodity Futures
Trading Commission, in consultation with the appropriate Federal banking
agencies, shall jointly prescribe rules under this subsection governing
business conduct standards for swap dealers, major swap participants,
security-based swap dealers, and major security-based swap participants.</text>
</paragraph></subsection><subsection id="H7911605177C7402495A5FD4CDA388C3C"><enum>(i)</enum><header>Documentation
and back office standards</header>
<paragraph id="H45F704057390476D9F188DB4DAF37B1B"><enum>(1)</enum><header>In
general</header><text>Each registered security-based swap dealer and major
security-based swap participant shall conform with standards, as may be
prescribed by the Commission by rule or regulation, addressing timely and
accurate confirmation, processing, netting, documentation, and valuation of all
security-based swaps.</text>
</paragraph><paragraph id="H27FD29413F0B43F8B2DD1D9DABB3C7BA"><enum>(2)</enum><header>Rules</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>, the Commission and the Commodity Futures Trading
Commission, in consultation with the appropriate Federal banking agencies,
shall jointly adopt rules governing documentation and back office standards for
swap dealers, major swap participants, security-based swap dealers, and major
security-based swap participants.</text>
</paragraph></subsection><subsection id="HBD0861A70F0A46F5958C890B9E0E8D31"><enum>(j)</enum><header>Dealer
responsibilities</header><text>Each registered security-based swap dealer and
major security-based swap participant at all times shall comply with the
following requirements:</text>
<paragraph id="H133D40ADDB574213B303408EDE572B96"><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="H68B0B1BD248640F2AF87A55D543D7CC7"><enum>(2)</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 such security-based swap dealer or major
security-based swap participant, as applicable, information concerning—</text>
<subparagraph id="H5E1FE0A28632423AA0796F24B986C474"><enum>(A)</enum><text>terms and
conditions of its security-based swaps;</text>
</subparagraph><subparagraph id="HA3083A8D86B644C58E155F9D9B6391F0"><enum>(B)</enum><text>security-based
swap trading operations, mechanisms, and practices;</text>
</subparagraph><subparagraph id="H703A9573046E416F9B15B657377AAA0D"><enum>(C)</enum><text>financial
integrity protections relating to security-based swaps; and</text>
</subparagraph><subparagraph id="HF1AD72B3B62241EF947BE331BC150DA2"><enum>(D)</enum><text>other information
relevant to its trading in security-based swaps.</text>
</subparagraph></paragraph><paragraph id="H8DDA1A10883944BD9C80C0B1D7F831CA"><enum>(3)</enum><header>Ability to
obtain information</header><text>The security-based swap dealer or major swap
security-based participant shall—</text>
<subparagraph id="H609A3D43EDBB44E8AD540F430FF7F8CD"><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="HEF3A51DE072D45988236136478E0DE4A"><enum>(B)</enum><text>provide the
information to the Commission and to the Prudential Regulator for such
security-based swap dealer or major security-based swap participant, as
applicable, upon request.</text>
</subparagraph></paragraph><paragraph id="H6AD49DCF682B45CBB1064B177D5D744C"><enum>(4)</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="H3CCE487E2FB342C69ADA8DA88B1333A7"><enum>(A)</enum><text>establish
structural and institutional safeguards to assure that the activities of any
person within the firm relating to research or analysis of the price or market
for any security are separated by appropriate informational partitions within
the firm from the review, pressure, or oversight of those whose involvement in
trading or clearing activities might potentially bias their judgment or
supervision; and</text>
</subparagraph><subparagraph id="HAA738CDA8C474D5FAA0E3BE99D230830"><enum>(B)</enum><text>address such other
issues as the Commission determines appropriate.</text>
</subparagraph></paragraph><paragraph id="H3DC1F789E8B44014AA41893361B62548"><enum>(5)</enum><header>Antitrust
considerations</header><text>Unless necessary or appropriate to achieve the
purposes of this Act, the security-based swap dealer or major security-based
swap participant shall avoid—</text>
<subparagraph id="H0583C5EF7B2E4126B43F55A262BB554E"><enum>(A)</enum><text>adopting any
processes or taking any actions that result in any unreasonable restraints of
trade; or</text>
</subparagraph><subparagraph id="H0AE9856F3CD5425CBD83B2BB7069C11F"><enum>(B)</enum><text>imposing any
material anticompetitive burden on trading.</text>
</subparagraph></paragraph></subsection><subsection id="H0328FBE068634CFDB37E640AE9CD93CA"><enum>(k)</enum><header>Rules</header><text>The
Commission, the Commodity Futures Trading Commission, and the Prudential
Regulators shall consult with each other prior to adopting any rules under the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title>.</text>
</subsection><subsection id="H272152EC009C4C59B29C4794BA96439B"><enum>(l)</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 such
security-based swap dealer or major security-based swap participant, 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 statutory
disqualification.</text>
</subsection><subsection id="HA730B9664E1B462A806810183651BAFC"><enum>(m)</enum><header>Enforcement and
administrative proceeding authority</header>
<paragraph id="HF4CC5F09755D482BB4C8439D9F4FF3BF"><enum>(1)</enum><header>Primary
enforcement authority</header>
<subparagraph commented="no" id="H718FBCD928B544AF9F6EAFB44EDEBE55"><enum>(A)</enum><header>SEC</header><text>Except
as provided in subsection (b), the Commission shall have primary authority to
enforce the provisions of the amendments made by subtitle B of the
<short-title>Over-the-Counter Derivatives Markets Act of
2009</short-title> with respect to any person.</text>
</subparagraph><subparagraph id="H681FB31FDFCF400A91E06A2A3683E16C"><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 Act with respect to banks, and branches or agencies of
foreign banks that are security-based swap dealers or major security-based swap
participants.</text>
</subparagraph><subparagraph id="HE0EF5E5D468C42A6899429266A1BBFB2"><enum>(C)</enum><header>Referral</header><text>If
the Prudential Regulator for a security-based swap dealer or major
security-based swap participant 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
section 15F or rules adopted by the Commission thereunder, that Prudential
Regulator may recommend in writing to the Commission that the Commission
initiate an enforcement proceeding as authorized under this Act. The
recommendation shall be accompanied by a written explanation of the concerns
giving rise to the recommendation.</text>
</subparagraph><subparagraph id="H4E5AB3C56E17482E8795AB5FC13E7F47"><enum>(D)</enum><header>Backstop
enforcement authority</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 recommendation under subparagraph (C),
the Prudential Regulator may initiate an enforcement proceeding as permitted
under Federal law.</text>
</subparagraph></paragraph><paragraph id="H4EE6DD98FA78425B91F75B5A4F299B8B"><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 it 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="HA6825457236C422BA37267ED790BC232"><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="HA7C5BA14BB444F60B3F5EB1FD7D6E0E7"><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="H05B5CB6A5FB84C3AB46090B8CDB34886"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="HD662239A20F34DBE9BC3D39A8F9AA2D6"><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="HA3C89CCBBF114492A677EFC5EA5987F8"><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="H123EBC1108714E94ADB43E506F5B6312"><enum>(3)</enum><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="H8DA6AD5DEE0543518749F54AC3001BD7"><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="HEF0EFFA79ED74C219523A196561C109D"><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="HAA67A474F1A34FC3ACA3C7AFCC9D12E5"><enum>(C)</enum><text>is enjoined from
any action, conduct, or practice specified in subparagraph (C) of such
paragraph (4);</text>
</subparagraph><subparagraph id="H58BA818D7E0E4877927AC543912883F9"><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="H67D532352FD646FCA06225DBD291D893"><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="H573C322CB2EE4E6793B7F2E420C9498F"><enum>(4)</enum><text>It shall be
unlawful—</text>
<subparagraph id="H18DEBB5494AE497DA80CEDCF34D8BB36"><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="H39CFC5436E2C48A2BCEEC2B23ED02DD8"><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><paragraph id="H80A6E00B22DF45CAB24361FD3DE86908"><enum>(5)</enum><header>Exemptions</header><text display-inline="yes-display-inline">The Commission may exempt, conditionally or
unconditionally, a security-based swap dealer or major security-based swap
participant from the prudential requirements of the Over-the-Counter
Derivatives Markets Act of 2009 if the Commission finds that such
security-based swap dealer or major security-based swap participant is subject
to comparable, comprehensive supervision and regulation on a consolidated basis
by the Commodity Futures Trading Commission, a Prudential Regulator or the
appropriate governmental authorities in the organization's home country.</text>
</paragraph></subsection><subsection id="HD15C45B094054A0CBA047C0ADEC80724"><enum>(n)</enum><header>Exemptive
authority</header>
<paragraph id="H385A7DBBC9484AFA98B44B5E345CA302"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission, by
rule or regulation, may conditionally or unconditionally exempt any person,
derivative, or transaction, or any class or classes of persons, derivatives, or
transactions, from any provision of this Act that was added by an amendment in
the Over-the-Counter Derivatives Markets Act of 2009, to the extent that such
exemption is necessary or appropriate in the public interest, and is consistent
with the purposes of such Act.</text>
</paragraph><paragraph id="HC2DA4A9B7E384935B11CD1EF45EDAECE"><enum>(2)</enum><header>Procedures</header><text display-inline="yes-display-inline">The Commission shall, by rule or
regulation, determine the procedures under which an exemptive order under this
subsection shall be granted and may, in its sole discretion, decline to
entertain any application for an order of exemption under this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H73806667F02742AF8873C8B1531BB7A9"><enum>3205.</enum><header>National
security exchange registration requirements</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 by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H76A0FC7B15BB41E6B2AAF862708084EE" style="OLC">
<paragraph id="H3A9592D1E5A74B1CAD5ABD15389B8569"><enum>(10)</enum><text display-inline="yes-display-inline">The rules of the exchange minimize
conflicts of interest in its decision-making process and establish a process
for resolving such conflicts of interest.</text>
</paragraph><paragraph id="H7910DDEBD4FC4EC6B8B6796B7E8C3CD2"><enum>(11)</enum><text>The rules of an
exchange that trades security-based swaps provide that a majority of the
directors of the exchange shall not be associated with a restricted
owner.</text>
</paragraph><paragraph id="HFD6672A3EF6C4A5B9D53594DCA4C56F0"><enum>(12)</enum><text display-inline="yes-display-inline">The rules of an exchange that trades
security-based swaps provide that a restricted owner shall not be permitted
directly or indirectly to acquire beneficial ownership of interests in the
exchange or in persons with a controlling interest in the exchange, to the
extent that such an acquisition would result in restricted owners controlling
more than 20 percent of the votes entitled to be cast on any matter by the
holders of the ownership
interests.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H4F59FAE9F00E4EF399D6F67E9A0CD07D"><enum>3206.</enum><header>Reporting and
recordkeeping</header>
<subsection id="H3DE266F5ACA54D65812FF6FE76E929CC"><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 section:</text>
<quoted-block display-inline="no-display-inline" id="H0E6D25745E98425882F9DFC6D5E35320" style="OLC">
<section id="HDE61049981CA48AFB81B568907BE104D"><enum>13A.</enum><header>Reporting and
recordkeeping for certain security-based swaps</header>
<subsection id="HC6C07D6C74104735982040F99747FF35"><enum>(a)</enum><header>In
general</header><text>Any person who enters into a security-based swap
and—</text>
<paragraph id="HBA01ECFD50E64E4F86094B82558F1393"><enum>(1)</enum><text>did not clear the
security-based swap in accordance with section 3A; and</text>
</paragraph><paragraph id="H4DFE6D4A1960489A8A2114359DE368E2"><enum>(2)</enum><text>did not have data
regarding the security-based swap accepted by a security-based swap repository
in accordance with rules adopted by the Commission under section 13(n),</text>
</paragraph><continuation-text continuation-text-level="subsection">shall
meet the requirements in subsection (b).</continuation-text></subsection><subsection id="H42347DEB76B64A448ACF27BA1391B524"><enum>(b)</enum><header>Reports</header><text>Any
person described in subsection (a) shall—</text>
<paragraph id="H68D9E0F0604744BFADA55A46C56BCEEF"><enum>(1)</enum><text>make such reports
in such form and manner and for such period as the Commission shall prescribe
by rule or regulation regarding the security-based swaps held by the person;
and</text>
</paragraph><paragraph id="HB347954F069B48438C7DEF5E5D9AD918"><enum>(2)</enum><text>keep books and
records pertaining to the security-based swaps held by the person in such form
and manner and for such period as may be required by the Commission, which
books and records shall be open to inspection by any representative of the
Commission, an appropriate Federal banking agency, the Commodity Futures
Trading Commission, the Financial Services Oversight Council, and the
Department of Justice.</text>
</paragraph></subsection><subsection id="H5250855D6A024267B35D1CB5074A94F8"><enum>(c)</enum><header>Identical
data</header><text>In adopting rules under this section, the Commission shall
require persons described in subsection (a) to report the same or more
comprehensive data than the Commission requires security-based swap
repositories to collect under subsection
(n).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC71D876F550A41E085DD2FD0BC36889D"><enum>(b)</enum><header>Beneficial
ownership reporting</header>
<paragraph id="H6EDB0262826041ECBB5389E06D523D86"><enum>(1)</enum><text>Section 13(d)(1)
of the Securities Exchange Act of 1934 (15 U.S.C. 78m(d)(1)) is amended 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 or
other derivative instrument as the Commission may define by rule, and</quote>
after <quote>Alaska Native Claims Settlement Act,</quote>.</text>
</paragraph><paragraph id="H3DE9EA31EF074AEA88D5F728707A8360"><enum>(2)</enum><text>Section 13(g)(1)
of the Securities Exchange Act of 1934 (15 U.S.C. 78m(g)(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 or other derivative instrument, as the Commission
may define by rule</quote> after <quote>subsection (d)(1) of this
section</quote>.</text>
</paragraph></subsection><subsection id="H4B7BC12B33DD4165BB1466D6EA0078B4"><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 striking
<quote>section 13(d)(1) of this title</quote> and inserting <quote>subsection
(d)(1), 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 or other derivative instrument, as the Commission may
define by rule,</quote>.</text>
</subsection><subsection id="HA036AB8ED4984537A198E93DE57DACC0"><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="H17A4B6B9463F44B7844E6A585D7BE1F8"><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="H772624D5B6F6489F98AE2CB87D1BE002"><enum>(2)</enum><text>in subparagraph
(F), by inserting <quote>, or security-based swap dealer, or a major
security-based swap participant</quote> after <quote>or dealer</quote>.</text>
</paragraph></subsection><subsection id="HC491E6EDB1184E0E835F872A2B69FEFC"><enum>(e)</enum><header>Derivatives
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="H2533202D51C54EF0A641DD2F05334E40" style="OLC">
<subsection id="H7856698FD0A84FE4AAF8A4462106CAAE"><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 or other derivative instrument 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 other derivative instrument, or class of security-based
swaps or other derivative instruments, 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 instrument, or class of security-based swap or
instruments, 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="HA31A0835F8044CF4B4796208953E4534"><enum>3207.</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="HFF87652222914BA7AB1489944335CEF8" style="OLC">
<subsection id="HF25F149EFB52436483CB449941908CBF"><enum>(a)</enum><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; but no person permitted to maintain a suit for damages under the
provisions of this title shall recover, through satisfaction of judgment in one
or more actions, a total amount in excess of his actual damages 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 thereunder. 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 (1) any put, call, straddle, option,
privilege, or other security subject to this title (except a security-based
swap agreement and 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, (2) any security-based swap between eligible
contract participants, or (3) any security-based swap effected on a national
securities exchange registered pursuant to section 6(b). 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 sentence shall not be construed as limiting any State antifraud law of
general
applicability.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H19D2A42847EC4A5B95F03EF31754F021"><enum>3208.</enum><header>Amendments to
the Securities Act of 1933; treatment of security-based swaps</header>
<subsection id="H18BC17A3F3DF4BFBAFE61B6EC9A265A6"><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="HCBA8633CB9774C1A94D8BCCEFA1B1EB8"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>security-based swap,</quote> after <quote>security
future,</quote>;</text>
</paragraph><paragraph id="H93A4C19B0B024CFE88BDB0CBD102CC7F"><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="HD47ACDECEDFC44F888DE282FEC3F8905"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HFD8954168B364FEAAA63C542AD1AE39C" style="OLC">
<paragraph id="HC53D08372ED147CC89277846939D8056"><enum>(17)</enum><text>The terms
<term>swap</term> and <term>security-based swap</term> have the same meanings
as provided in sections 1a(35) and (38) of the Commodity Exchange Act (7 U.S.C.
1a(35) and (38)).</text>
</paragraph><paragraph id="HAC991CDAB1DF497C822B22B34267EC43"><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="HA5992830A303464A88EFE5EE0BF4F20B"><enum>(b)</enum><header>Exemption from
registration</header><text display-inline="yes-display-inline">Section 3(a) of
the Securities Act of 1933 is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD142B4F81D9A414785213F259404AFC1" style="OLC">
<paragraph id="H60468255D2C54041A04DB13E697817F8"><enum>(15)</enum><text display-inline="yes-display-inline">Any security-based swap, as defined in
section 2(a)(17) that is not otherwise a security as defined in section 2(a)(1)
and that satisfies such conditions as established by rule or regulation by the
Commission consistent with the provisions of the Over-the-Counter Derivatives
Markets Act of 2009. The Commission shall promulgate rules implementing this
exemption.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC66EAD47A23E46ACA1B13C2FE264D362"><enum>(c)</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="H321CFF47F0D24A5BA7983D6904BA1869" style="OLC">
<subsection id="HF9B281C1530343A78760E5070792E330"><enum>(d)</enum><text>Notwithstanding
the provisions of section 3 or section 4, unless a registration statement
meeting the requirements of subsection (a) of section 10 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(13) of the Commodity
Exchange Act (7 U.S.C.
1a(13)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H806E5669E9644432BA860D5CDA2C321E"><enum>3209.</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 Commission, the Commodity Futures Trading Commission, or
other Federal or State agency, of any authority derived from any other
applicable law.</text>
</section><section id="HB6C03A4DC9954C76A9C97AC64F3B43A1"><enum>3210.</enum><header>Jurisdiction</header><text display-inline="no-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 new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC15C3B5BEDBA4B8987C0282285B56FE2" style="OLC">
<subsection id="H012049DDE09A42B5BEB03D1F447B7EDF"><enum>(c)</enum><header>exemptive
authority</header><text display-inline="yes-display-inline">The Commission may
use its authority under subsection (a) to exempt any person, security, or
transaction, or any class of persons, securities, or transactions from any
provision or provisions of this title or of any rule or regulation thereunder
that applies to such person, security, or transaction solely because a
security-based swap is a security, as such term is defined in section 3(a) of
this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HBD0B98F66EF243F5A3D9FB648C0B5A19"><enum>3211.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle is
effective 270 days after the date of enactment.</text>
</section></subtitle><subtitle id="HEF9D823EFDCE4D4394E0B484424AFEFA"><enum>C</enum><header>Miscellaneous</header>
<section id="HC076EACB17AA4A7E867B5A84432DFCD6"><enum>3301.</enum><header>Study on
feasibility of requiring use of standardized algorithmic descriptions for
financial derivatives</header>
<subsection id="HD325703FC6C54328A11002B0059AFB63"><enum>(a)</enum><header>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>
</subsection><subsection id="H82B3C2E5E48B44729A2E5CD7C2FAF32F"><enum>(b)</enum><header>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>
<paragraph id="H224029A248E24DD8A7B66CA2F8DC71B3"><enum>(1)</enum><text>commercial users
and traders of derivatives;</text>
</paragraph><paragraph id="H45CCFE3C3D664BC19AC260C80BAC6984"><enum>(2)</enum><text>derivative
clearing houses, exchanges and electronic trading platforms;</text>
</paragraph><paragraph id="HFD4EE1A8FAFA454E88F937E74D5F4AA3"><enum>(3)</enum><text>trade repositories
and regulator investigations of market activities; and</text>
</paragraph><paragraph id="H2A4EB5DF60074FA6907942602299952D"><enum>(4)</enum><text display-inline="yes-display-inline">systemic risk regulators.</text>
</paragraph><continuation-text continuation-text-level="subsection">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></subsection><subsection id="H7F1ACAC5113A4E5ABD68A555E3A1996E"><enum>(c)</enum><header>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>
</subsection><subsection id="H6C2C18C0BE2F45EAA7115A239C5FB47C"><enum>(d)</enum><header>Report</header><text display-inline="yes-display-inline">Within 8 months after the date of the
enactment of this title, 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 subsections (a) through (c).</text>
</subsection></section><section id="HED0980E5EE4445B29AB1D954BC50474C"><enum>3302.</enum><header>Study of
desirability and feasibility of establishing single regulator for all
transactions involving financial derivatives</header>
<subsection id="H537A6F351041408D8DDAAF2971F8451A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury, the Commodity Futures Trading Commission, and the Securities and
Exchange Commission shall conduct a joint study of the desirability and
feasibility of establishing, by January 1, 2012, a single regulator for all
transactions involving financial derivatives.</text>
</subsection><subsection id="H6C8DB67942444E728F136B9B5050A9E6"><enum>(b)</enum><header>Report to the
Congress</header><text display-inline="yes-display-inline">Not later than
December 1, 2010, Secretary of the Treasury, the Commodity Futures Trading
Commission, and the Securities and Exchange 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 that
contains the results of the study required by subsection (a).</text>
</subsection></section><section id="HB8546F2E0A5C40A29E33B8B2386327DD"><enum>3303.</enum><header>Recommendations
for changes to insolvency laws</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this title, the Securities and Exchange Commission, the Commodity
Futures Trading Commission, and the Prudential Regulators (as defined in
section 1a of the Commodity Exchange Act, as amended by section 3101 of this
title) shall transmit to Congress recommendations for legislative changes to
the Federal insolvency laws—</text>
<paragraph id="H90D17AF38DD04D8EADC0CA6AFB09E63F"><enum>(1)</enum><text>in order to
enhance the legal certainty with respect to swap participants clearing
non-proprietary swap positions with a swap clearinghouse, including—</text>
<subparagraph id="H47FB16DBD97B406F8E2DB219B3C10BE4"><enum>(A)</enum><text>customer rights to
recover margin deposits or custodial property held at or through an insolvent
swap clearinghouse, or clearing participant; and</text>
</subparagraph><subparagraph id="HD23B0A8912244DD4A6BC0079A6A452A3"><enum>(B)</enum><text>the enforceability
of clearing rules relating to the portability of customer swap positions (and
associated margin) upon the insolvency of a clearing participant;</text>
</subparagraph></paragraph><paragraph id="HA1FD425ACDAB41C292A72E37F8818D51"><enum>(2)</enum><text display-inline="yes-display-inline">to clarify and harmonize the insolvency law
framework applicable to entities that are both commodity brokers (as defined in
section 101(6) of title 11, United States Code) and registered brokers or
dealers (as defined in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a))); and</text>
</paragraph><paragraph id="HC6F1DCA7AE0E4B35B80E3435C3AB2A62"><enum>(3)</enum><text display-inline="yes-display-inline">to facilitate the portfolio margining of
securities and commodity futures and options positions held through entities
that are both futures commission merchants (as defined in section 1a of the
Commodity Exchange Act) and registered brokers or dealers (as defined in
section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).</text>
</paragraph></section><section id="H91C6F0D2E03E4C9F860CBCEF3A3F9145"><enum>3304.</enum><header>Prohibition
against government assistance</header>
<subsection id="HDA0ADC52A2F14476AE1F262CE37A96B3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No provision of this
title shall be construed to authorize Federal assistance to support the
clearing operations or liquidation of a derivatives clearing organization
described in the Commodity Exchange Act, except where explicitly authorized by
an Act of Congress.</text>
</subsection><subsection id="H614A9989D9BF4E2CB8F1F8B18CB113EB"><enum>(b)</enum><header>Definition</header><text>For
the purposes of this section, the term <quote>Federal assistance</quote> shall
be defined as the use of public funds for the purposes of—</text>
<paragraph id="H2E6C4236F0394CC382C43167B7576E88"><enum>(1)</enum><text>making loans to,
or purchasing any debt obligation of, a derivatives clearing organization or a
subsidiary;</text>
</paragraph><paragraph id="H6C36DD9DF29F405383C7CF6B81CE6549"><enum>(2)</enum><text>purchasing assets
of a derivatives clearing organization or a subsidiary;</text>
</paragraph><paragraph id="H5284424A1BC34C9A9D19C965D6385D4B"><enum>(3)</enum><text>assuming or
guaranteeing the obligations of a derivatives clearing organization or a
subsidiary; or</text>
</paragraph><paragraph id="HB1B250BC67A94CBE8DFD6B7FD5AAAFB0"><enum>(4)</enum><text>acquiring any type
of equity interest or security of a derivatives clearing organization or a
subsidiary.</text>
</paragraph></subsection></section></subtitle><enum>IV</enum><header>Consumer
Financial Protection Agency Act</header>
<section id="HCC662C0F73D046A48812CC5D92E558D9" section-type="subsequent-section"><enum>4001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Consumer Financial Protection
Agency Act of 2009</short-title></quote>.</text>
</section><section id="HD2BFE9A3DDDB445E82F1613C32748E33"><enum>4002.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of subtitles A through F of
this title, the following definitions shall apply:</text>
<paragraph id="H792D894BAC2B466399DC4051CC4513BC"><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="H5074600DEDDD4A96801F449ACB40781E"><enum>(2)</enum><header>Agency</header><text>The
term <quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><paragraph id="H5AE5D56474504884AC34600A7BB954D8"><enum>(3)</enum><header>Bank holding
company</header><text>The term <quote>bank holding company</quote> has the same
meaning as in section 2(a) of the Bank Holding Company Act of 1956.</text>
</paragraph><paragraph id="H9F55AB02035F4CF98D51A0E068310445"><enum>(4)</enum><header>Board</header><text display-inline="yes-display-inline">Except when used in connection with the
term <quote>Board of Governors</quote>, the term <quote>Board</quote> means the
Consumer Financial Protection Oversight Board.</text>
</paragraph><paragraph id="H1709B06285BF4421A11ABEC0B2529077"><enum>(5)</enum><header>Board of
governors</header><text>The term <quote>Board of Governors</quote> means the
Board of Governors of the Federal Reserve System.</text>
</paragraph><paragraph id="H826D49DCA1014C91950A99B5DEAA6D03"><enum>(6)</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="H5C8EEBC81BBA4041BC3D6F4508999AB6"><enum>(7)</enum><header>Consumer</header><text>The
term <quote>consumer</quote> means an individual or an agent, trustee, or
representative acting on behalf of an individual.</text>
</paragraph><paragraph id="H6E9C1A1963E242E2A94951A40EE0AE37"><enum>(8)</enum><header>Consumer
financial product or service</header><text>The term <quote>consumer financial
product or service</quote> means any financial product, other than a Federal
tax return, or service to be used by a consumer primarily for personal, family,
or household purposes.</text>
</paragraph><paragraph id="H22F974CAC6494F4E88B8B29CCF7F9969"><enum>(9)</enum><header>Covered
person</header>
<subparagraph id="H8F2955229B9940CA930B55C93E28F42B"><enum>(A)</enum><header>In
general</header><text>The term <quote>covered person</quote> means any person
who engages directly or indirectly in a financial activity, in connection with
the provision of a consumer financial product or service.</text>
</subparagraph><subparagraph id="HD9BA9D21452047E29723DA75AF840C85"><enum>(B)</enum><header>Exclusion</header><text>The
term <quote>covered person</quote> shall not include the Secretary, the
Department of the Treasury, any agency or bureau under the jurisdiction of the
Secretary, or any person collecting Federal taxes for the United States to the
extent such person is acting in such capacity.</text>
</subparagraph></paragraph><paragraph id="HF25F2718CE3942338A275A7D227363BC"><enum>(10)</enum><header>Credit</header><text>The
term <quote>credit</quote> 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 id="H02BA9E9966BE4E8A86224BDED4E29265"><enum>(11)</enum><header>Credit
union</header><text>The term <quote>credit union</quote> means a Federal credit
union or a State credit union as defined in section 101 of the Federal Credit
Union Act.</text>
</paragraph><paragraph id="H9D3CA2EE386840E09D97F0FB014D0ADF"><enum>(12)</enum><header>Deposit</header><text>The
term <quote>deposit</quote>—</text>
<subparagraph id="H18D77FBA0EF243F1B4D42459F2E69DE3"><enum>(A)</enum><text>has the same
meaning as in section 3(l) of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="H03233AB8CABC435FB889A665A0DE0D81"><enum>(B)</enum><text>includes a share
in a member account (as defined in section 101(5) of the Federal Credit Union
Act) at a credit union.</text>
</subparagraph></paragraph><paragraph id="H2B6CFE3746CB40959FB0A83709008FCB"><enum>(13)</enum><header>Deposit-taking
activity</header><text>The term <quote>deposit-taking activity</quote>
means—</text>
<subparagraph id="H9DC319CD6C6E450383BCB8F71F2E5168"><enum>(A)</enum><text display-inline="yes-display-inline">the acceptance of deposits, the maintenance
of deposit accounts, or the provision of services related to the acceptance of
deposits;</text>
</subparagraph><subparagraph id="H39378747D0A84B2DB89800FD450D434C"><enum>(B)</enum><text>the acceptance of
money, the provision of other services related to the acceptance of money, or
the maintenance of members’ share accounts by a credit union; or</text>
</subparagraph><subparagraph id="H0EB92C59B2E744CC86E8D47817D51D3E"><enum>(C)</enum><text>the receipt of
money or its equivalent, as the Director may determine by regulation or order,
received or held by the covered person (or an agent for the person) for the
purpose of facilitating a payment or transferring funds or value of funds by a
consumer to a third party.</text>
</subparagraph></paragraph><paragraph id="H5151860E91A745E8AE7B4742C401B0C5"><enum>(14)</enum><header>Designated
transfer date</header><text>The term <quote>designated transfer date</quote>
has the meaning provided in section 4602.</text>
</paragraph><paragraph id="H10CE65574FED4C3FAE4C8EC54FAE4717"><enum>(15)</enum><header>Director</header><text>The
term <quote>Director</quote> means the Director of the Agency.</text>
</paragraph><paragraph id="HA2D9B1F895EB4C33B7F2F1BB5691CCCB"><enum>(16)</enum><header>Enumerated
consumer laws</header><text>The term <quote>enumerated consumer laws</quote>
means each of the following:</text>
<subparagraph id="H53F7E0575DC647F6901F9649B4E0509E"><enum>(A)</enum><text>The Alternative
Mortgage Transaction Parity Act (12 U.S.C. 3801 et seq.).</text>
</subparagraph><subparagraph id="H7A271BD1178649C1AEDAC04679ED4809"><enum>(B)</enum><text>The Electronic
Funds Transfer Act (15 U.S.C. 1693 et seq.)</text>
</subparagraph><subparagraph id="H466D21A25BF84D2CAA79CF6FA79A9FB3"><enum>(C)</enum><text>The Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.).</text>
</subparagraph><subparagraph id="H62FFB267BD35496DA20782FF66A20E14"><enum>(D)</enum><text display-inline="yes-display-inline">The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.), except with respect to sections 615(e) and 628 of such
Act.</text>
</subparagraph><subparagraph id="H118DE19C862F492FA8F671B89C090E6E"><enum>(E)</enum><text>The Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.).</text>
</subparagraph><subparagraph id="H564578BFF5CB4372A2D2DE61543F9CD0"><enum>(F)</enum><text>Subsections (c),
(d), (e), and (f) of section 43 of the Federal Deposit Insurance Act (12 U.S.C.
1831t).</text>
</subparagraph><subparagraph id="H3671AF46CC0642678552969B546FD2B5"><enum>(G)</enum><text>Sections 502, 503,
504, 505, 506, 507, 508, and 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802
et seq.).</text>
</subparagraph><subparagraph id="HB398494B54D945999CAC8835F83B4646"><enum>(H)</enum><text display-inline="yes-display-inline">The Homeowners Protection Act of
1998.</text>
</subparagraph><subparagraph id="HD7C7A0E45A7944D38BE6A19D5DB16865"><enum>(I)</enum><text>The Home Mortgage
Disclosure Act (12 U.S.C. 2801 et seq.).</text>
</subparagraph><subparagraph id="HB896291945274426ABFABA6D100862EC"><enum>(J)</enum><text>The Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.).</text>
</subparagraph><subparagraph id="HC90E0679BCB44FB48B02DF58B7F829AF"><enum>(K)</enum><text>The Secure and
Fair Enforcement for Mortgage Licensing Act (12 U.S.C. 5101 et seq.).</text>
</subparagraph><subparagraph id="HDEE9FF0D24F947CE81FC876555E0B7A1"><enum>(L)</enum><text>The Truth in
Lending Act (15 U.S.C. 1601 et seq.).</text>
</subparagraph><subparagraph id="H49A97DB9F6E7475C9880DFEB7259F882"><enum>(M)</enum><text>The Truth in
Savings Act (12 U.S.C. 4301 et seq.).</text>
</subparagraph></paragraph><paragraph id="H16850A7C8B9B4868BCCD5F4F2C5EAD46"><enum>(17)</enum><header>Federal banking
agency</header><text>The term <quote>Federal banking agency</quote> means the
Board of Governors, the Comptroller of the Currency, the Director of the Office
of Thrift Supervision, the Federal Deposit Insurance Corporation, or the
National Credit Union Administration and the term <quote>Federal banking
agencies</quote> means all of such agencies.</text>
</paragraph><paragraph id="H92BE0DA50D5C4D7E8C3ED2AD447F8A8D"><enum>(18)</enum><header>Fair
lending</header><text display-inline="yes-display-inline">The term <quote>fair
lending</quote> means fair, equitable, and nondiscriminatory access to credit
for both individuals and communities.</text>
</paragraph><paragraph id="H1AE9281E9A2E4AC88F603131E8B164D6"><enum>(19)</enum><header>Financial
activity</header>
<subparagraph id="HC1EF58D383684E9092B6B6004C8F5091"><enum>(A)</enum><header>In
general</header><text>The term <quote>financial activity</quote> means any of
the following activities:</text>
<clause id="H6276822B2DC343B2AC54B698295CB86A"><enum>(i)</enum><text>Deposit-taking
activities.</text>
</clause><clause id="HF2EAA2FA3F6747318C6C2E96AEE3C855"><enum>(ii)</enum><text>Extending credit
and servicing loans, including—</text>
<subclause id="H12CCC29146B041138B112DADD2EC5F48"><enum>(I)</enum><text display-inline="yes-display-inline">acquiring, purchasing, selling, brokering,
or servicing loans or other extensions of credit;</text>
</subclause><subclause id="HD02BB7401AC04164839796186CDCBC84"><enum>(II)</enum><text>engaging in any
other activity usual in connection with extensions of credit or servicing
loans, including performing appraisals of real estate and personal
property.</text>
</subclause></clause><clause id="H0728D4122B144F8AA8D5615E13489303"><enum>(iii)</enum><text>Check cashing
and check-guaranty services, including—</text>
<subclause id="HE1D0BA6CE5124EE2ADA784D7789BC923"><enum>(I)</enum><text>authorizing a
subscribing merchant to accept personal checks tendered by the merchant’s
customers in payment for goods and services; and</text>
</subclause><subclause id="HEB4958C3E09945D7B797134347896BB9"><enum>(II)</enum><text>purchasing from a
subscribing merchant validly authorized checks that are subsequently
dishonored.</text>
</subclause></clause><clause id="H15C3DBB466734A0294A557D925A9053D"><enum>(iv)</enum><text display-inline="yes-display-inline">Collecting, analyzing, maintaining, and
providing consumer report information or other account information by covered
persons, including information relating to the credit history of consumers and
providing the information to a credit grantor who is considering a consumer
application for credit or who has extended credit to the borrower.</text>
</clause><clause id="H89D8E5F8D1154B6E9575FF79E67704DD"><enum>(v)</enum><text>Collection of debt
related to any consumer financial product or service.</text>
</clause><clause id="HC23656413A89416182F440AEEB4A3A5B"><enum>(vi)</enum><text>Providing real
estate settlement services.</text>
</clause><clause id="H55140B85516540468C33E2E126B983A4"><enum>(vii)</enum><text>Leasing personal
or real property or acting as agent, broker, or adviser in leasing such
property if—</text>
<subclause id="H8E8BA06FDEAF47C18151BFEA5FEFE234"><enum>(I)</enum><text>the lease is on a
non-operating basis;</text>
</subclause><subclause id="H4D84EA4116AC495FB84263896A7E56AC"><enum>(II)</enum><text>the initial term
of the lease is at least 90 days; and</text>
</subclause><subclause id="HF747940A5B74475A92D0348D9BC84A08"><enum>(III)</enum><text>in the case of
leases 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
Director.</text>
</subclause></clause><clause display-inline="no-display-inline" id="HC04F1A29C0914503881F2BF6D151E443"><enum>(viii)</enum><text>Acting as an
investment adviser to any person (excluding an investment adviser that is a
person regulated by the Commodity Futures Trading Commission, the Securities
and Exchange Commission, or any securities commission (or any agency or office
performing like functions) of any State).</text>
</clause><clause id="HC51FCB91BA7848299AF5AF9FFEF4D72F"><enum>(ix)</enum><text display-inline="yes-display-inline">Acting as financial adviser to any person
(excluding an investment adviser that is a person regulated by the Commodity
Futures Trading Commission, the Securities and Exchange Commission, or any
securities commission (or any agency or office performing like functions) of
any State), including—</text>
<subclause id="H0FC99F739C3642AD909FE829AEEF5650"><enum>(I)</enum><text>providing
financial and other related advisory services;</text>
</subclause><subclause id="HFAB6D6515D4246EC97F1759FBE8549F7"><enum>(II)</enum><text>providing
educational courses, and instructional materials to consumers on individual
financial management matters;</text>
</subclause><subclause id="HC13118B8D89B4EAB847AA96846FA1C1B"><enum>(III)</enum><text display-inline="yes-display-inline">providing credit counseling or tax planning
services to any person (excluding the preparation of returns, or claims for
refund, of tax imposed by the Internal Revenue Code or advice with respect to
positions taken therein, or services regulated by the Secretary of the Treasury
under section 330 of title 31, United States Code); or</text>
</subclause><subclause id="H0D17D4CAE46746D5A3CBF79AEA318AE9"><enum>(IV)</enum><text>providing
services to assist a consumer with debt management or debt settlement, with
modifying the terms of any extension of credit, or with avoiding
foreclosure.</text>
</subclause></clause><clause id="H31829FD4891E47B382EE625BA6FDCCA0"><enum>(x)</enum><text display-inline="yes-display-inline">For purposes of this title, the following
shall not be considered acting as financial adviser:</text>
<subclause id="HC48105C09A0844759FD94F0E5DEE9938"><enum>(I)</enum><text display-inline="yes-display-inline">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.</text>
</subclause><subclause id="H4163C8D2DDC24A3D943D373ECEDDE74E"><enum>(II)</enum><text>Providing advice,
analyses, or reports that do not relate to any securities other than securities
which are direct obligations of or obligations guaranteed as to principal or
interest by the United States, or securities issued or guaranteed by
corporations in which the United States has a direct or indirect interest which
shall have been designated by the Secretary of the Treasury, pursuant to
section 3(a)(12) of the Securities Exchange Act of 1934, as exempted securities
for the purposes of that Act.</text>
</subclause></clause><clause id="H555F6536AC0E426BAD7AD7F3F16DEF00"><enum>(xi)</enum><text>Financial data
processing by any technological means, including providing data processing,
access to or use of databases or facilities, or advice regarding processing or
archiving, if the data to be processed, furnished, stored, or archived are
financial, banking, or economic, except that it shall not be considered a
<quote>financial activity</quote> if with respect to financial data processing
the person—</text>
<subclause id="H83BE13AB118B4BE587E0C65095E6E94E"><enum>(I)</enum><text>unknowingly or
incidentally transmits, processes, or stores financial data in a manner that
such data is undifferentiated from other types of data that the person
transmits, processes, or stores;</text>
</subclause><subclause id="HEA2CD12BE42141F280CD34862A8E6944"><enum>(II)</enum><text>does not provide
to any consumer a consumer financial product or service in connection with or
relating to in any manner financial data processing; and</text>
</subclause><subclause id="H6974F2AF422A426088F017E8C57E8D90"><enum>(III)</enum><text>does not provide
a material service to any covered person in connection with the provision of a
consumer financial product or service.</text>
</subclause></clause><clause id="H041CEC437D2947E283847992A82323F2"><enum>(xii)</enum><text>Money
transmitting.</text>
</clause><clause id="H0A677EFF4A3D45FDB5F068DA996D6ED8"><enum>(xiii)</enum><text display-inline="yes-display-inline">Sale, provision or issuance of stored
value, except that, in the case of a sale, only if the seller influences the
terms or conditions of the stored value provided to the consumer.</text>
</clause><clause id="HE658C6E431204C1A97170F7976A9CFCD"><enum>(xiv)</enum><text>Acting as a
money services business.</text>
</clause><clause id="HE96AD2C3FAFE432987E98A8A00DA4C4B"><enum>(xv)</enum><text>Acting as a
custodian of money or any financial instrument.</text>
</clause><clause display-inline="no-display-inline" id="H76AED7B916414E64AFFF1BB435B5EADB"><enum>(xvi)</enum><subclause commented="no" display-inline="yes-display-inline" id="H7B85E4537EA44D469A62E20E4415E143"><enum>(I)</enum><text>Any other activity that
the Director defines, by regulation, as a financial activity after finding
that—</text>
<item id="HBEF7B2FA4F03485192366F19BE98C626"><enum>(aa)</enum><text>the
activity has, or there is a substantial likelihood that the activity will have,
a material adverse impact on the creditworthiness or financial well being of
consumers;</text>
</item><item id="HA563610950A243F5BEACFE440E06F1B3"><enum>(bb)</enum><text>the
activity is incidental or complementary to any other financial activity
regulated by the Agency; or</text>
</item><item id="H77239BCB9C4E45439D0E4A78A504ECB3"><enum>(cc)</enum><text display-inline="yes-display-inline">the activity is entered into or conducted
as a subterfuge or with a purpose to evade any requirement under this title,
the enumerated consumer laws, and the authorities transferred under subtitles F
and H.</text>
</item></subclause><subclause id="HEEF536CC9C0E4F7CBEDA64DB05BA3C1F" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">For
purposes of subclause (I)(bb), the following activities provided to a covered
person shall not be <quote>incidental or complementary</quote>:</text>
<item id="H2059B29287FC446D980F08DE0E651550"><enum>(aa)</enum><text>Providing information products or
services to a covered person for identity authentication.</text>
</item><item id="H5B853D6BA1F747E7864EB813673AC7F4"><enum>(bb)</enum><text display-inline="yes-display-inline">Providing information products or services
for fraud or identify theft detection, prevention, or investigation.</text>
</item><item id="HFA0425B7A37F4A87A88A192040A65AA4"><enum>(cc)</enum><text>Providing document retrieval or
delivery services.</text>
</item><item id="H9F7FDB6737784B5883B2FFB61EB600A8"><enum>(dd)</enum><text>Providing public records information
retrieval.</text>
</item><item id="H0A3C2624185C4D838271EA8A9F57BE1B"><enum>(ee)</enum><text display-inline="yes-display-inline">Providing information products or services
for anti-money laundering activities.</text>
</item></subclause></clause></subparagraph><subparagraph id="HA3D91873FAE34EB58BD135F68DF2BA50"><enum>(B)</enum><header>Business of
insurance exception</header><text display-inline="yes-display-inline">The term
<quote>financial activity</quote> shall not include the business of
insurance.</text>
</subparagraph></paragraph><paragraph id="H01C4B27116124D6E93FE02620C9ACBD3"><enum>(20)</enum><header>Financial
product or service</header><text display-inline="yes-display-inline">The term
<quote>financial product or service</quote> means any product or service that,
directly or indirectly, results from or is related to engaging in 1 or more
financial activities.</text>
</paragraph><paragraph id="HF0C9680025E243FC8B0934EB520B6A81"><enum>(21)</enum><header>Foreign
exchange</header><text>The term <quote>foreign exchange</quote> means the
exchange, for compensation, of currency of the United States or of a foreign
government for currency of another government.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H0CCC81C6FBDB4D4EAE41415ED1EB8D43"><enum>(22)</enum><header>Insured credit
union</header><text display-inline="yes-display-inline">The term “insured
credit union” has the same meaning as in section 101 of the National Credit
Union Act.</text>
</paragraph><paragraph id="HB814C3004F954050ABF6B4D5560435BF"><enum>(23)</enum><header>Insured
depository institution</header><text>The term <quote>insured depository
institution</quote> has the same meaning as in section 3 of the Federal Deposit
Insurance Act.</text>
</paragraph><paragraph id="H6E1E5C9D40D74B78B2E9F935949FA508"><enum>(24)</enum><header>Money services
business</header><text>The term <quote>money services business</quote> means a
person that—</text>
<subparagraph id="H04ADBE4297C54C2B8780C9C1D17592F4"><enum>(A)</enum><text>receives currency,
monetary value, or payment instruments 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 other businesses that facilitate third-party transfers within the United
States or to or from the United States; or</text>
</subparagraph><subparagraph id="H4BCFFDB759A945B280DCC9353C18EF1C"><enum>(B)</enum><text>issues payment
instruments or stored value.</text>
</subparagraph></paragraph><paragraph id="H69090F377E124D339C01738CCA67374A"><enum>(25)</enum><header>Money
transmitting</header><text>The term <quote>money transmitting</quote> means the
receipt by a covered person of currency, monetary value, or payment instruments
for the purpose of transmitting the same to any third-party by any means,
including transmission by wire, facsimile, electronic transfer, courier, the
Internet, or through bill payment services.</text>
</paragraph><paragraph id="H3FD9992A0453470E9F3CFDE4E96650C7"><enum>(26)</enum><header>Payment
instrument</header><text>The term <quote>payment instrument</quote> means a
check, draft, warrant, money order, traveler’s check, electronic instrument, or
other instrument, payment of money, or monetary value (other than
currency).</text>
</paragraph><paragraph id="HFA469AF2020E421F8E3747495D731144"><enum>(27)</enum><header>Person</header><text>The
term <quote>person</quote> means an individual, partnership, company,
corporation, association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity.</text>
</paragraph><paragraph id="HBFBE15340972489C96ED8043B560B31A"><enum>(28)</enum><header>Person
regulated by a State insurance regulator</header><text>The term <quote>person
regulated by a State insurance regulator</quote> means any person who
is—</text>
<subparagraph id="H2554E5CC871848EB800CF9D7F7694825"><enum>(A)</enum><text>engaged in the
business of insurance, and</text>
</subparagraph><subparagraph id="H3846FA13D2D44AF0850B0F8575CD25E5"><enum>(B)</enum><text>subject to
regulation by any State insurance regulator,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">but only to
the extent that such person acts in such capacity.</continuation-text></paragraph><paragraph id="HD453C76F545F44F483D6319F74D64861"><enum>(29)</enum><header>Person
regulated by the Commodity Futures Trading Commission</header><text display-inline="yes-display-inline">The term <quote>person regulated by the
Commodity Futures Trading Commission</quote> means any futures commission
merchant, commodity trading adviser, commodity pool operator, introducing
broker, boards of trade, derivatives clearing organizations, or multilateral
clearing organizations to the extent that such person’s actions are subject to
the jurisdiction of the Commodity Futures Trading Commission under the
Commodity Exchange Act and any agent, employee, or contractor acting on behalf
of, registered with, or providing services to such person but only to the
extent the person, or the employee, agent, or contractor of such person, acts
in a registered capacity.</text>
</paragraph><paragraph id="H3768E64DA7BD478AB8CF8424309E49C6"><enum>(30)</enum><header>Person
regulated by the Securities and Exchange Commission</header><text>The term
<quote>person regulated by the Securities and Exchange Commission</quote>
means—</text>
<subparagraph id="HE6518F66F2EA43ED8AC01CAD911C548B"><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="HC47180933A194056BCD1026776CF2B2B"><enum>(B)</enum><text>an investment
adviser that is registered under the Investment Advisers Act of 1940;</text>
</subparagraph><subparagraph id="H8F9450CB153C47D782D6E8E2480A1813"><enum>(C)</enum><text>an investment
company that is required to be registered under the Investment Company Act of
1940;</text>
</subparagraph><subparagraph id="H183A2EB212144A018C1F612BBFF40796"><enum>(D)</enum><text display-inline="yes-display-inline">a national securities exchange that is
required to be registered under the Securities Exchange Act of 1934;</text>
</subparagraph><subparagraph id="HE2C375D7C2534A98A23A7B5271D2FD01"><enum>(E)</enum><text>a transfer agent
that is required to be registered under the Securities Exchange Act of
1934;</text>
</subparagraph><subparagraph id="HFBF121341E874B3C8BDE6DC6099E4889"><enum>(F)</enum><text>a clearing
corporation that is required to be registered under the Securities Exchange Act
of 1934;</text>
</subparagraph><subparagraph id="H5CC87B76146C420A88B3CC5042E1986F"><enum>(G)</enum><text display-inline="yes-display-inline">any municipal securities dealer that is
registered with the Securities and Exchange Commission;</text>
</subparagraph><subparagraph id="HB3CB5DED74DE4B478AB8537AC0DDECB5"><enum>(H)</enum><text>any
self-regulatory organization that is registered with the Securities and
Exchange Commission;</text>
</subparagraph><subparagraph id="H8202E183D3564701BFCBA8A937AC3AF5"><enum>(I)</enum><text>any national
securities exchange or other entity that is required to be registered under the
Securities Exchange Act of 1934; and</text>
</subparagraph><subparagraph id="H0E66F018E12947DD964EF31EB819D67E"><enum>(J)</enum><text>the Municipal
Securities Rulemaking Board,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">and any
employee, agent, or contractor acting on behalf of, registered with, or
providing services to, any such person, but only to the extent that the person,
or the employee agent, or contractor of such person, acts in a registered
capacity.</continuation-text></paragraph><paragraph id="HEE25CB09E845463A880A67AADA0272B6"><enum>(31)</enum><header>Provision of a
consumer financial product or service</header><text>The terms <quote>provision
of a consumer financial product or service</quote> and <quote>providing a
consumer financial product or service</quote> mean the advertisement,
marketing, solicitation, sale, disclosure, delivery, or account maintenance or
servicing of a consumer financial product or service.</text>
</paragraph><paragraph id="HD646F403D3FA4D7881617D018948B779"><enum>(32)</enum><header>Person that
performs income tax preparation activities for consumers</header><text display-inline="yes-display-inline">The term <quote>person that performs income
tax preparation activities for consumers</quote> means—</text>
<subparagraph id="H9248308E46E04C6B8DE73C9CECCBBD92"><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="H2A1F7C404C6349C4AB70C039612CC756"><enum>(B)</enum><text>any person
regulated by the Secretary of the Treasury 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="H1F09708D8A0F452FA1F2D2A4E6FC641B"><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="HE2AE24D7C18C496EAA0EF46C666E6731"><enum>(33)</enum><header>Related
person</header>
<subparagraph id="HE5CD5573140645F2B21D633CC10EC8BE"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<quote>related person</quote>, when used in connection with a covered person
that is not a bank holding company, credit union, depository institution,
means—</text>
<clause id="H23F5CF0651654113830F9758E1914372"><enum>(i)</enum><text>any
director, officer, employee charged with managerial responsibility, or
controlling stockholder of, or agent for, such covered person;</text>
</clause><clause id="H8020D125E0A246CFBC10CE21CB147C90"><enum>(ii)</enum><text>any
shareholder, consultant, joint venture partner, and any other person as
determined by the Director (by regulation 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="HD970C0834293446FB011D8180FA5AB1C"><enum>(iii)</enum><text>any independent
contractor (including any attorney, appraiser, or accountant), with respect to
such covered person, who knowingly or recklessly participates in any—</text>
<subclause id="H1FAE9662313847A583576194CA9507DE"><enum>(I)</enum><text>violation of any
law or regulation; or</text>
</subclause><subclause id="HCF3727D7D22A443A8A82C4C4C60F29A3"><enum>(II)</enum><text>breach of
fiduciary duty.</text>
</subclause></clause></subparagraph><subparagraph id="H01E326220BDD4584917CF66F7F21AE8E"><enum>(B)</enum><header>Treatment of a
related person as a covered person</header><text>Any person who is a related
person under subparagraph (A) shall be deemed to be a covered person for all
purposes of this title, any enumerated consumer law, and any law for which
authorities were transferred by subtitles F and H.</text>
</subparagraph></paragraph><paragraph id="HBF93479A32384C83911146A1D487E95A"><enum>(34)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="HB5F3D9190BC3463087FDCAF78B313CD8"><enum>(35)</enum><header>Service
provider</header>
<subparagraph id="HB7D768B223DB4257ACD9F2417B4C2AAC"><enum>(A)</enum><header>In
general</header><text>The term <quote>service provider</quote> means any person
who provides a material service to a covered person in the provision of a
consumer financial product or service, including a person who—</text>
<clause id="H61B45A396CA446E98D801CB0A9815676"><enum>(i)</enum><text>facilitates the
design of, or operations relating to the provision of, the consumer financial
product or service;</text>
</clause><clause id="H5A528E73E09149868FA1940C3C1AADA1"><enum>(ii)</enum><text>has
direct interaction with a consumer (whether in person or via telecommunication
device or other similar technology) regarding the consumer financial product or
service; or</text>
</clause><clause id="HB1992533A61D4C77BB13E4DC451D1595"><enum>(iii)</enum><text>processes
transactions relating to the consumer financial product or service.</text>
</clause></subparagraph><subparagraph id="H822F063823F04E8889B003F4E6E28AEC"><enum>(B)</enum><header>Exceptions</header><text>The
term <quote>service provider</quote> shall not apply to a person solely by
virtue of such person providing or selling to a covered person—</text>
<clause id="H3F928310DBA843D0BF894EEB132CA0E0"><enum>(i)</enum><text>a
support service of a type provided to businesses generally or a similar
ministerial service;</text>
</clause><clause id="H6ABAFE79768E4E38B2BBCB5AAFFC8C7C"><enum>(ii)</enum><text>a
service that does not materially affect the terms or conditions of the consumer
financial product or service, its performance or operation, or the propensity
of a consumer to obtain or use such product or service; or</text>
</clause><clause id="H28FD26188B6F4AAFA2879B19057E1B4F"><enum>(iii)</enum><text>time or space
for an advertisement for a consumer financial product or service through print,
newspaper, or electronic media.</text>
</clause></subparagraph></paragraph><paragraph id="H9CB9118B51CC494F936F8557641A1E5B"><enum>(36)</enum><header>State</header><text>The
term <quote>State</quote> means any State, territory, or possession of the
United States, the District of Columbia, Commonwealth of Puerto Rico,
Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the
United States Virgin Islands.</text>
</paragraph><paragraph id="HB4577DFB061F482C90AF0AC76673D08B"><enum>(37)</enum><header>Stored
value</header><text display-inline="yes-display-inline">The term <quote>stored
value</quote>—</text>
<subparagraph id="H09CC9F10DFAF4EC5BA3CB7EBED179B8E"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H66342DAB412C493CB17E2997ECB9A4CE"><enum>(B)</enum><text>includes a prepaid
debit card or product (other than a card or product used solely for telephone
services) or any other similar product,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">regardless
of whether the amount of the funds or monetary value may be increased or
reloaded.</continuation-text></paragraph></section><subtitle id="H3693502E6B164DE9A81F981D60E74185"><enum>A</enum><header>Establishment of
the Agency</header>
<section id="HA886682556E148BB959DA751DF20EB4C"><enum>4101.</enum><header>Establishment
of the Consumer Financial Protection Agency</header>
<subsection id="H039C5106E4E74B8CB0EB9F90D7BA1AFD"><enum>(a)</enum><header>Agency
established</header><text>There is established the Consumer Financial
Protection Agency as an independent agency to regulate the provision of
consumer financial products or services under this title, the enumerated
consumer laws, and the authorities transferred under subtitles F and H.</text>
</subsection><subsection id="H33FEB026E9E74ACDABFAD9BD3FC5C3C0"><enum>(b)</enum><header>Principal
office</header><text>The principal office of the Agency shall be located in the
city of Washington, District of Columbia, at 1 or more sites.</text>
</subsection></section><section display-inline="no-display-inline" id="H5648F247B7AB4FFD88705CD8A2AFD553" section-type="subsequent-section"><enum>4102.</enum><header>Director</header>
<subsection id="H623D1A3CA26D4991BF395ECC77E59352"><enum>(a)</enum><header>Establishment of
position</header>
<paragraph id="HAF8D3EBD22B64407A1F0EDAEEBD9D07E"><enum>(1)</enum><header>In
general</header><text>There is hereby established the position of the Director
of the Agency who shall be the head of the Agency.</text>
</paragraph><paragraph id="HF97D1FF8E0E04C41A7D802CAA3310671"><enum>(2)</enum><header>Authority to
prescribe regulations</header><text display-inline="yes-display-inline">The
Director may prescribe such regulations and issue such orders in accordance
with this title as the Director may determine to be necessary for carrying out
this title and all other laws within the Director’s jurisdiction.</text>
</paragraph></subsection><subsection id="H7DECA045123A4A089A3CB6B414103D0C"><enum>(b)</enum><header>Appointment;
term</header>
<paragraph id="H0976F8219A574A5D925A90833AEF78AE"><enum>(1)</enum><header>Appointment</header><text display-inline="yes-display-inline">The Director shall be appointed by the
President, by and with the advice and consent of the Senate, from among
individuals who are citizens of the United States.</text>
</paragraph><paragraph id="H1D9E503811BC4D4C86259C48FC3E3D8A"><enum>(2)</enum><header>Term</header><text display-inline="yes-display-inline">The Director shall be appointed for a term
of 5 years.</text>
</paragraph><paragraph id="H408A17F0032F48B69AD1BB6D10849E25"><enum>(3)</enum><header>Removal</header><text>The
Director may be removed before the end of a term only for cause.</text>
</paragraph><paragraph id="H61C6E773DB5F48CFB27464BCCCC3A0C6"><enum>(4)</enum><header>Vacancy</header>
<subparagraph id="H4187A951322D406796952CF90E43DD2F"><enum>(A)</enum><header> In
general</header><text display-inline="yes-display-inline">A vacancy in the
position of Director which occurs before the expiration of the term for which a
Director was appointed shall be filled in the manner established in paragraph
(1) and the Director appointed to fill such vacancy shall be appointed only for
the remainder of such term.</text>
</subparagraph><subparagraph id="HFB466F6BB02E4A37BE2B2CB817D40D8F"><enum>(B)</enum><header>Acting
director</header>
<clause id="H86D3662847784EFFBCAA2798FCF5FEA4"><enum>(i)</enum><header>In
general</header><text>In the event of a vacancy in the position of Director or
during the absence or disability of the Director, an Acting Director shall be
appointed in the manner provided in section 3345, of title 5, United States
Code.</text>
</clause><clause id="H6C63855CF2EC4C7F93E7C644E3E857C4"><enum>(ii)</enum><header>Authority of
acting director</header><text display-inline="yes-display-inline">Any
individual serving as Acting Director under this subparagraph shall be vested
with all authority, duties, and privileges of the Director.</text>
</clause></subparagraph></paragraph><paragraph id="H35B71312343440F69757BDE3AD971FB0"><enum>(5)</enum><header>Service after
end of term</header><text display-inline="yes-display-inline">An individual may
serve as Director after the expiration of the term for which appointed until a
successor Director has been appointed and qualified.</text>
</paragraph></subsection><subsection id="H63273A3B389B4915919F1A6146863C94"><enum>(c)</enum><header>Prohibition on
financial interests</header><text display-inline="yes-display-inline">The
Director shall not have a direct or indirect financial interest in any covered
person.</text>
</subsection><subsection id="H3D94E768B2EA491BB9E76F813FBDABFE"><enum>(d)</enum><header>Compensation</header><text display-inline="yes-display-inline">The Director shall receive compensation at
the rate prescribed for Level I of the Executive Schedule under section 5313 of
title 5, United States Code.</text>
</subsection></section><section id="HA90FB34558AF48F9883355DA681AC720"><enum>4103.</enum><header>Consumer
Financial Protection Oversight Board</header>
<subsection id="H984775DE0FAB42E593130C74BBEB3039"><enum>(a)</enum><header>Established</header><text display-inline="yes-display-inline">There is hereby established the Consumer
Financial Protection Oversight Board as an instrumentality of the United
States.</text>
</subsection><subsection id="H140D1741DB274A2296023C162EAB8203"><enum>(b)</enum><header>Duties and
powers</header>
<paragraph id="H57CAB23E17FB45AA9B732079B8F1472C"><enum>(1)</enum><header>Duty to advise
director</header><text>The Board shall advise the Director on—</text>
<subparagraph id="HDA70E28EB1ED481CAFDC7272A08D09AD"><enum>(A)</enum><text>the consistency of
a proposed regulation of the Director with prudential, market, or systemic
objectives administered by the agencies that comprise the Board;</text>
</subparagraph><subparagraph id="H1921D7442A10449E9EAF09DFB32C869E"><enum>(B)</enum><text>the overall
strategies and policies in carrying out the duties of the Director under this
title; and</text>
</subparagraph><subparagraph id="HC45F25DD6C5B4D219E8339F4D3686B97"><enum>(C)</enum><text display-inline="yes-display-inline">actions the Director can take to enhance
and ensure that all consumers are subject to robust financial
protection.</text>
</subparagraph></paragraph><paragraph id="H3E6FBB7F51E446A69A45C13D9BACFA2F"><enum>(2)</enum><header>Limitation on
powers</header><text>The Board may not exercise any executive authority, and
the Director may not delegate to the Board any of the functions, powers, or
duties of the Director.</text>
</paragraph></subsection><subsection id="H246CD8428E354219A7AB417FBAA60DCF"><enum>(c)</enum><header>Composition</header><text>The
Board shall be comprised of 7 members as follows:</text>
<paragraph id="H6989CC28AA7240DFB00E6D346F853DE2"><enum>(1)</enum><text>The Chairman of
the Board of Governors.</text>
</paragraph><paragraph id="HFD456B99BB6B412AA3EB9ECFD39148FA"><enum>(2)</enum><text display-inline="yes-display-inline">The head of the agency responsible for
chartering and regulating national banks.</text>
</paragraph><paragraph id="HF3D448A5B8A9466AA81DD8128C02579F"><enum>(3)</enum><text display-inline="yes-display-inline">The Chairperson of the Federal Deposit
Insurance Corporation.</text>
</paragraph><paragraph id="HBDE5A9A7E3F54DC7A900DE01EC359393"><enum>(4)</enum><text>The Chairman of
the National Credit Union Administration.</text>
</paragraph><paragraph id="HE4C3D7CD57DE4B6DACEC8BB0DD91610F"><enum>(5)</enum><text>The Chairman of
the Federal Trade Commission.</text>
</paragraph><paragraph id="H458F57C8635649F39F2FE9A8E0EE7D08"><enum>(6)</enum><text>The Secretary of
Housing and Urban Development.</text>
</paragraph><paragraph id="HFCD9EF3266634AC895505DFC5BBC9530"><enum>(7)</enum><text display-inline="yes-display-inline">The Chairman of the liaison committee of
representatives of State agencies to the Financial Institutions Examination
Council.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H80139B273859487B9181830C5640114A"><enum>(d)</enum><header>Representative
of additional interests</header>
<paragraph id="HFDAE218D7A554F8097436B77ED36C0E1"><enum>(1)</enum><header>Composition</header><text>Notwithstanding
subsection (c), the President, by and with the advice and consent of the
Senate, shall appoint 5 additional members of the Board from among experts in
the fields of consumer protection, fair lending and civil rights,
representatives of depository institutions that primarily serve underserved
communities, or representatives of communities that have been significantly
impacted by higher-priced mortgage loans, as such communities are identified by
the Director through an analysis of data received by reason of the provisions
of the Home Mortgage Disclosure Act of 1975 or other data on lending
patterns.</text>
</paragraph><paragraph id="H90875DD5062E451685656DADDE66FCB2"><enum>(2)</enum><header>Affiliation</header><text>With
respect to members appointed pursuant to paragraph (1), not more than 3 shall
be members of any one political party.</text>
</paragraph></subsection><subsection id="HBC12AEA22AD54D888A602F4418E5E44C"><enum>(e)</enum><header>Meetings</header>
<paragraph id="HF5B86B08723846F283E3EB33BF2252B1"><enum>(1)</enum><header>In
general</header><text>The Board shall meet upon notice by the Director, but in
no event shall the Board meet less frequently than once every 3 months.</text>
</paragraph><paragraph id="H1FBAD8BDC4AC4ED2AB4333BF8A6D5F96"><enum>(2)</enum><header>Special
meetings</header><text>Any member of the Board may, upon giving written notice
to the Director, require a special meeting of the Board.</text>
</paragraph></subsection><subsection id="H773FFA0EE9F6440EA61C35CC8C7FE1B0"><enum>(f)</enum><header>Prohibition on
additional compensation</header><text display-inline="yes-display-inline">Members of the Board may not receive
additional pay, allowances, or benefits by reason of their service on the
Board.</text>
</subsection><subsection id="H9CF14E849E5C47199CA118E6358FFC9F"><enum>(g)</enum><header>Complaints
related to required offering of specific financial products or
services</header><text display-inline="yes-display-inline">The Board shall
establish procedures to receive and analyze complaints from any person claiming
that the Director is not in compliance with the requirements under section
4311.</text>
</subsection></section><section id="HBEB3D17B32EE4F6A9C3C6185595D3FCB"><enum>4104.</enum><header>Executive and
administrative powers</header><text display-inline="no-display-inline">The
Director may exercise all executive and administrative functions of the Agency,
including to—</text>
<paragraph id="H3DD348FF78734F3C8EA824BBD9A4070F"><enum>(1)</enum><text>establish
regulations for conducting the Agency’s general business in a manner not
inconsistent with this title;</text>
</paragraph><paragraph id="H8BC56B24DAC54BFEB16A9FFDCFCF0487"><enum>(2)</enum><text>bind the Agency
and enter into contracts;</text>
</paragraph><paragraph id="HEA446FD0E8EC41CCA9835DA592B75267"><enum>(3)</enum><text>direct the
establishment of and maintain divisions or other offices within the Agency in
order to fulfill the responsibilities of this title, the enumerated consumer
laws, and the authorities transferred under subtitles F and H, and to satisfy
the requirements of other applicable law;</text>
</paragraph><paragraph id="H3269D0F3143A49F08F1E87F714A5A510"><enum>(4)</enum><text>coordinate and
oversee the operation of all administrative, enforcement, and research
activities of the Agency;</text>
</paragraph><paragraph id="H08D84FC6CD4E41E38A1EAD6FB871DBF1"><enum>(5)</enum><text>adopt and use a
seal;</text>
</paragraph><paragraph id="H6FFF96B37CDF47D59A6494B4A923EF8D"><enum>(6)</enum><text>determine the
character of and the necessity for the Agency’s obligations and expenditures,
and the manner in which they shall be incurred, allowed, and paid;</text>
</paragraph><paragraph id="HF39ACD836CA94A228FC74080956ABCDD"><enum>(7)</enum><text>delegate
authority, at the Director’s discretion, to any officer or employee of the
Agency to take action under any provision of this title or under other
applicable law;</text>
</paragraph><paragraph id="HA00CFB079EB84F3BAE796B23A961571D"><enum>(8)</enum><text>to implement this
title and the Agency’s authorities under the enumerated consumer laws and under
subtitles F and H through regulations, orders, guidance, interpretations,
statements of policy, examinations, and enforcement actions; and</text>
</paragraph><paragraph id="H6391CCAAE4E0442B83FA8EE729DC5646"><enum>(9)</enum><text>perform such other
functions as may be authorized or required by law.</text>
</paragraph></section><section id="HC3377474486A4E5C8BE0D42CC0295E4F"><enum>4105.</enum><header>Administration</header>
<subsection id="HF0597A0131C74A93B6C5AEF87BF284DC"><enum>(a)</enum><header>Officers</header><text>The
Director shall appoint the following officials:</text>
<paragraph id="H416639D3F99645AEA9242EE5FC6EF885"><enum>(1)</enum><text>A
secretary, who shall be charged with maintaining the records of the Agency and
performing such other activities as the Director directs.</text>
</paragraph><paragraph id="H2360B95DFD3B48A58BD522BF0F560978"><enum>(2)</enum><text>A
general counsel, who shall be charged with overseeing the legal affairs of the
Agency and performing such other activities as the Director directs.</text>
</paragraph><paragraph id="H39B0693F7DBB4E65A524A2C5BDD50F9D"><enum>(3)</enum><text>An inspector
general, who shall have the authority and functions of an inspector general of
a designated Federal entity under the Inspector General Act of 1978 (5 U.S.C.
App. 3).</text>
</paragraph><paragraph id="HA0F3A3F0455543EDADEA9B4C30AF4FF9"><enum>(4)</enum><text display-inline="yes-display-inline">An Ombudsperson, who shall—</text>
<subparagraph id="H687ABAD6D3654D5BAD738AEBBA6C29A4"><enum>(A)</enum><text display-inline="yes-display-inline">develop and maintain expertise in and
understanding of the law relating to consumer financial products;</text>
</subparagraph><subparagraph id="HFCB22F98C8DB453AAA994D582B1D144F"><enum>(B)</enum><text>at the request of
a Federal agency or a State agency, and with the prior approval of the
Director, advise such agency with respect to actions that may affect
consumers;</text>
</subparagraph><subparagraph id="HA991CF305C5E42729440DB11D9A8F04F"><enum>(C)</enum><text>advise consumers
who may have a legitimate potential or actual claim against a Federal agency
involving the provision of consumer financial products regarding their rights
under this title;</text>
</subparagraph><subparagraph id="HD686E7A02D344F5686CE9589CE0C91E1"><enum>(D)</enum><text>identify Federal
agency actions that have potential implications for consumers and, if
appropriate, and with the prior approval of the Director, advise the relevant
Federal agencies with respect to those implications;</text>
</subparagraph><subparagraph id="H8313FDBD3C324B85B7B7FCC3E4F7887F"><enum>(E)</enum><text>provide
information to private citizens, civic groups, Federal agencies, State
agencies, and other interested parties regarding the rights of those parties
under this title;</text>
</subparagraph><subparagraph id="HD17A679B9019452F964B23642469C002"><enum>(F)</enum><text>develop, maintain,
and provide expertise designed to assist covered persons, especially smaller
depository institutions and other smaller entities to comply with regulations
and other requirements issued to implement the provisions of this title, and
where such assistance for smaller depository institutions shall be provided
jointly by the Agency and the appropriate Federal banking agency;</text>
</subparagraph><subparagraph id="H6FE974B4C6D64944AAC2E6CF7FEA5199"><enum>(G)</enum><text>develop procedures
to assist covered persons, especially smaller depository institutions and other
smaller entities, in responding to or challenging actions taken by the Director
or the Agency to implement the provisions of this title and to ensure that
safeguards exist to preserve the confidentiality of covered persons using those
procedures; and</text>
</subparagraph><subparagraph id="HBD641245C54F472BAB0255B75C451189"><enum>(H)</enum><text>perform such other
duties as the Director may delegate to the Ombudsperson.</text>
</subparagraph></paragraph></subsection><subsection id="H47F8FF25D5C2499D91DC2F061B70CE59"><enum>(b)</enum><header>Personnel</header>
<paragraph id="H643CE916E5274567809C776B4D82434B"><enum>(1)</enum><header>Appointment</header>
<subparagraph id="H340EC35216A146B0809B7805FF6D70CF"><enum>(A)</enum><header>In
general</header><text>The Director may fix the number of, and appoint and
direct, all employees of the Agency.</text>
</subparagraph><subparagraph id="H067AC40C13604F7BA7F471DFFB1EC66F"><enum>(B)</enum><header>Expedited
hiring</header><text>The Director may appoint, without regard to the provisions
of sections 3309 through 3318, of title 5, United States Code, candidates
directly to positions for which public notice has been given.</text>
</subparagraph><subparagraph id="H3ABA2181A68444D8BCC6982070769710"><enum>(C)</enum><header>Hiring
veterans</header><text display-inline="yes-display-inline">In hiring employees
of the Agency, the Director shall establish appropriate targets, including
timetables, to hire veterans (as defined in paragraphs (1) and (2) of section
2108 of title 5, United States Code) as employees of the Agency. In
establishing appropriate targets under this paragraph, the Director may
consider, among other relevant factors, the proportion of veterans hired by
Federal agencies with comparable functions or types of occupations and their
experiences in hiring veterans.</text>
</subparagraph></paragraph><paragraph id="H2DB2AE5331C14CAF8791DDF847A68835"><enum>(2)</enum><header>Compensation</header>
<subparagraph id="H0CF922E82F7548A991FCE12520228BA9"><enum>(A)</enum><header>Pay</header><text>The
Director shall fix, adjust, and administer the pay for all employees of the
Agency without regard to the provisions of chapter 51 or subchapter III of
chapter 53 of title 5, United States Code.</text>
</subparagraph><subparagraph id="H156CC15FF28F4DE799F537FD278DB116"><enum>(B)</enum><header>Benefits</header><text>The
Director may provide additional benefits to Agency employees if the same type
of benefits are then being provided by the Board of Governors or, if not then
being provided, could be provided by the Board of Governors under applicable
provisions of law or regulations.</text>
</subparagraph><subparagraph id="HE2A18B08F4B244BCA6888E54B54CE957"><enum>(C)</enum><header>Minimum
standard</header><text>The Director shall at all times provide compensation and
benefits to classes of employees that, at a minimum, are equivalent to the
compensation and benefits provided by the Board of Governors for the
corresponding class of employees in any fiscal year.</text>
</subparagraph></paragraph></subsection><subsection id="H5FBEAF542BC6440EB40ACFDDE03DB353"><enum>(c)</enum><header>Specific
functional units</header>
<paragraph id="HF4B7D84AD553486AB729F9876C1C822D"><enum>(1)</enum><header>Research</header><text display-inline="yes-display-inline">The Agency shall establish a unit whose
functions shall include—</text>
<subparagraph id="H0EECCF99CD7048A393F22325CD4492EE"><enum>(A)</enum><text>conducting
research on consumer financial counseling and education, including—</text>
<clause id="HE4B02A92EAEB4194B0A2CD2F4C11F5C5"><enum>(i)</enum><text>on
the topics of debt, credit, savings, financial product usage, and financial
planning;</text>
</clause><clause id="H5F64826E1C2B459DB3AE8A27996C81CC"><enum>(ii)</enum><text display-inline="yes-display-inline">exploring effective methods, tools, and
approaches; and</text>
</clause><clause id="HDE3C0C67C2B749D18A95D466656B97FD"><enum>(iii)</enum><text>identifying ways
to incorporate new technology for the delivery and evaluation of financial
counseling and education efforts;</text>
</clause></subparagraph><subparagraph id="H25093193D28647679921449926171075"><enum>(B)</enum><text>researching,
analyzing, and reporting on—</text>
<clause id="H2273F24E6C384B7EA04E897EA916ADA2"><enum>(i)</enum><text>current and
prospective developments in markets for consumer financial products or
services, including market areas of alternative consumer financial products or
services with high growth rates;</text>
</clause><clause id="HE07155B1C3D148F98F5CA0BC5F40590A"><enum>(ii)</enum><text>consumer
awareness, understanding, and use of disclosures and communications regarding
consumer financial products or services;</text>
</clause><clause id="H3B286D59476F40DEADAAF9DBEBB31E78"><enum>(iii)</enum><text>consumer
awareness and understanding of costs, risks, and benefits of consumer financial
products or services;</text>
</clause><clause id="HEF0B2B30DC18484CAA4F6579A0236615"><enum>(iv)</enum><text display-inline="yes-display-inline">consumer behavior with respect to consumer
financial products or services, including performance on mortgage loan;
and</text>
</clause><clause id="HAA7F2D7490D948928A57F99C770B5C23"><enum>(v)</enum><text>experiences of
traditionally underserved consumers, including un-banked and under-banked
consumers, regarding consumer financial products or services;</text>
</clause></subparagraph><subparagraph id="HE687D9FB66C14250BAF50618C0720E83"><enum>(C)</enum><text display-inline="yes-display-inline">identifying priorities for consumer
financial education efforts, based on consumer complaints, research or analysis
conducted pursuant to subparagraph (A), or other information; and</text>
</subparagraph><subparagraph id="H47429CDB280C49CAAC89236F71C9D672"><enum>(D)</enum><text>testing and
identifying methods of educating consumers to determine which methods are most
effective.</text>
</subparagraph></paragraph><paragraph id="H66A2DEC5F45546FB8B43FD6653C71926"><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
provision of consumer financial products or services to traditionally
underserved consumers and communities.</text>
</paragraph><paragraph id="HDD240A0ED72B41A1AE6F9C6FD8F08CD1"><enum>(3)</enum><header>Consumer
complaints</header>
<subparagraph id="H0C483C2E654A476CA7B73E689FA0DB57"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director shall
establish a unit whose functions shall include establishing a central database,
or utilizing an existing database, for collecting and tracking information on
consumer complaints about consumer financial products or services and
resolution of complaints.</text>
</subparagraph><subparagraph id="HE6426BF5404A4197ADED154909C840A5"><enum>(B)</enum><header>Coordination</header><text display-inline="yes-display-inline">In performing the functions described in
subparagraph (A), the Director shall coordinate with the Federal banking
agencies, other Federal agencies, and other regulatory agencies or enforcement
authorities.</text>
</subparagraph><subparagraph id="H62A17CE1DA6145E59946A05B3F7EABFB"><enum>(C)</enum><header>Data sharing
required</header><text display-inline="yes-display-inline">To the extent
permitted by law and the regulations prescribed by the Director regarding the
confidential treatment of information, the Director shall share data relating
to consumer complaints with Federal banking agencies, other Federal agencies,
and State regulators. To the extent permitted by law and the regulations
prescribed by the Federal banking agencies and other Federal agencies regarding
the confidential treatment of information, the Federal banking agencies and
other Federal agencies, respectively, shall share data relating to consumer
complaints with the Director and the Agency.</text>
</subparagraph></paragraph><paragraph id="H9A77E16B0DA04AED876688EB174794A1"><enum>(4)</enum><header>Consumer
financial education</header>
<subparagraph id="H4EC785AFB6844CDEA3D67E81EF78EB9E"><enum>(A)</enum><header>In
general</header><text>The Agency shall establish a unit to be named the Office
of Financial Literacy, whose functions shall include activities designed to
facilitate the education of consumers on consumer financial products and
services, including through the dissemination of materials to consumers on such
topics.</text>
</subparagraph><subparagraph id="HBF98761C957C4C5087C39D89BDDB65EF"><enum>(B)</enum><header>Director</header><text>The
Office of Financial Literacy shall be headed by a director.</text>
</subparagraph><subparagraph id="H7784509216A14F72B29CA74CFB4DB354"><enum>(C)</enum><header>Duties</header><text>Such
unit shall—</text>
<clause id="H1C87ACA75A2D4D1BA45CB0F48A9AA3D1"><enum>(i)</enum><text display-inline="yes-display-inline">develop goals for programs to be provided
by persons that provide consumer financial education and counseling, including
programs through which such persons—</text>
<subclause id="H394A231580D64E99A7AC2E59152A0FCC"><enum>(I)</enum><text>provide one-on-one
financial counseling;</text>
</subclause><subclause id="H9196B06A51DB4590AC6818159E70BF21"><enum>(II)</enum><text>help individuals
understand basic banking and savings tools;</text>
</subclause><subclause id="H4B4A31CEC49E416EA1607A3698CFF3E3"><enum>(III)</enum><text>help individuals
understand their credit history and credit score;</text>
</subclause><subclause id="HA698DE3FFCB14A658EF690BB2D754528"><enum>(IV)</enum><text>assist
individuals in efforts to plan for major purchases, reduce their debt, and
improve their financial stability; and</text>
</subclause><subclause id="HFD666884BD214BB0B395625206222372"><enum>(V)</enum><text>work with
individuals to design plans for long-term savings;</text>
</subclause></clause><clause id="HE0DC8A05EC3B479380FB12BA7EBF19A9"><enum>(ii)</enum><text>develop
recommendations regarding effective certification of persons providing
programs, or performing the activities, described in clause (i), including
recommendations regarding—</text>
<subclause id="H7465DB08F75243ECB3917F1C9C87E0F4"><enum>(I)</enum><text display-inline="yes-display-inline">certification processes and standards for
certification;</text>
</subclause><subclause id="H012B82A8646641CFBD7DFFC40B26FCE6"><enum>(II)</enum><text>appropriate
certifying bodies; and</text>
</subclause><subclause id="H8305B1A4516744EEB386DF8CDAA9F074"><enum>(III)</enum><text>mechanisms for
funding the certification processes;</text>
</subclause></clause><clause id="HF80504380B6644E89E68A80A9DADA9B0"><enum>(iii)</enum><text>develop a
technology tool to collect data on financial education and counseling outcomes;
and</text>
</clause><clause id="H383E9488D4C342A99364B4BD41AB086F"><enum>(iv)</enum><text>conduct research
to identify effective methods, tools, technoloy, and strategies to educate and
counsel consumers about personal finance management, including on the topics of
debt, credit, savings, financial product usage, and financial planning.</text>
</clause></subparagraph><subparagraph id="H6F8BFC158D2E43A68C61B66021CE7BD9"><enum>(D)</enum><header>Coordination</header><text display-inline="yes-display-inline">Such unit shall coordinate with other units
within the Agency in carrying out its functions, including—</text>
<clause id="H1E8A10CD55884578BEF4738757243B3B"><enum>(i)</enum><text>working with the
unit established under paragraph (2) to—</text>
<subclause id="HDC8B90879B8C46B486AE7FCEDB6142D5"><enum>(I)</enum><text>provide
information and resources to community organizations, nonprofit organizations,
and other entities to assist in helping educate consumers about consumer
financial products and services; and</text>
</subclause><subclause id="H784416646F534436A1EBAC30F7CBEFED"><enum>(II)</enum><text>develop a
marketing strategy to promote financial education and one-on-one counseling;
and</text>
</subclause></clause><clause id="H8E496B739FC64C9285251ACC99E39A3F"><enum>(ii)</enum><text>working with the
unit established under paragraph (1) to conduct research related to consumer
financial education and counseling.</text>
</clause></subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HF9FFB3B2618D4832B7DC329E3F7D2CDE"><enum>(d)</enum><header>Single toll-free
telephone number for consumer complaints and inquiries</header>
<paragraph id="H19BDC4BE66064F69874210A992ECF9E6"><enum>(1)</enum><header>Call intake
system</header><text display-inline="yes-display-inline">The Consumer Financial
Protection Agency shall establish a single, toll-free telephone number for
consumer complaints and inquiries concerning institutions regulated by such
agencies and a system for collecting and monitoring complaints and, as soon as
practicable, a system for routing such calls to the Federal financial
institution regulatory agency that primarily supervises the financial
institution, or that is otherwise the appropriate Federal agency to address the
subject of the complaint or inquiry.</text>
</paragraph><paragraph id="H7D80B73B4A0A494A987D7C86970C7C19"><enum>(2)</enum><header>Routing calls to
states</header><text>To the extent practicable, State agencies may receive
appropriate call transfers from the system established under paragraph (1)
if—</text>
<subparagraph id="HFF8308FC66FF4EE0B15532A87632038B"><enum>(A)</enum><text>the State agency's
system has the functional capacity to receive calls routed by the system;
and</text>
</subparagraph><subparagraph id="HC93521B923D54D59B54E8F81203CB252"><enum>(B)</enum><text>the State agency
has satisfied any conditions of participation in the system that the Council,
coordinating with State agencies through the chairperson of the State Liaison
Committee, may establish.</text>
</subparagraph></paragraph></subsection><subsection id="HE3A2C11932F046B5B374A0DFF3E1C563"><enum>(e)</enum><header>Report to the
Congress</header><text display-inline="yes-display-inline">Before the end of
the 6-month period beginning on the date of the enactment of this title, the
Federal financial institution regulatory agencies shall submit 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
agencies' efforts to establish—</text>
<paragraph id="HA174A9DA4A1648ED9089B8C830DBDAA1"><enum>(1)</enum><text display-inline="yes-display-inline">a public interagency Web site for directing
and referring Internet consumer complaints and inquiries concerning any
financial institution to the Consumer Financial Protection Agency for purposes
of collecting, monitoring, and responding to such complaints and, where
appropriate, a system for referring complaints to the Federal financial
institution regulatory agency, other Federal agency, or State agency that is
otherwise the appropriate agency to address the subject of the complaint or
inquiry; and</text>
</paragraph><paragraph id="H11F6D56A00E245858CAD99C71DF6BA28"><enum>(2)</enum><text>a
system to expedite the prompt and effective rerouting of any misdirected
consumer complaint or inquiry documents between or among the agencies, with
prompt referral of any complaint or inquiry to the appropriate Federal
financial institution regulatory agency, and to participating State
agencies.</text>
</paragraph></subsection><subsection id="H28410F32BE4E4476895535DBCA1A7678"><enum>(f)</enum><header>Office of Fair
Lending and Equal Opportunity</header>
<paragraph id="H3A1D4B76BFB8439D990BD7332872B297"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Before the end of the 180-day period
beginning on the date of the enactment of this title, the Director shall
establish within the Agency the Office of Fair Lending and Equal
Opportunity.</text>
</paragraph><paragraph id="HDE13CFD5758B4E01B1D2AE332F558E40"><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 the
Office which shall include the following functions:</text>
<subparagraph id="H8D80141E77C54E3C9BBE2FBA3B708847"><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 Agency, including the Equal Credit
Opportunity Act and the Home Mortgage Disclosure Act.</text>
</subparagraph><subparagraph id="H3B935AE796EC4BFC9437B321B59DC121"><enum>(B)</enum><text>Coordinating fair
lending enforcement efforts of the Agency 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="H67BEBD89143544F9AF9C6F1720101AF9"><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.</text>
</subparagraph><subparagraph id="H8C2AA3477BD049DEB026A762738BD564"><enum>(D)</enum><text>Providing annual
reports to the Congress on the Agency’s efforts to fulfill its fair lending
mandate.</text>
</subparagraph></paragraph><paragraph id="H5F2A83A0B39D4FE38B2C7B32AA11A1EA"><enum>(3)</enum><header>Administration
of office</header><text>There is hereby established the position of Assistant
Director of the Agency for Fair Lending and Equal Opportunity who—</text>
<subparagraph id="H08D5CCB395F0499081ECDAE1DB42574F"><enum>(A)</enum><text>shall be appointed
by the Director;</text>
</subparagraph><subparagraph id="HB522EB04CB264499B738FF6997099A76"><enum>(B)</enum><text display-inline="yes-display-inline">shall carry out such duties as the Director
may delegate to such Assistant Director; and</text>
</subparagraph><subparagraph id="H5D4CDB5117834DFE9498C9B48A237591"><enum>(C)</enum><text display-inline="yes-display-inline">shall serve as the Director of the Office
of Fair Lending and Equal Opportunity.</text>
</subparagraph></paragraph><paragraph id="HD19000921D1E45599DD0AE1AD5386FAE"><enum>(4)</enum><header>Prohibitions on
participation in programs with respect to certain indicted
organizations</header>
<subparagraph id="HA35A1F7308F5488BBBC52C4B9886C6C1"><enum>(A)</enum><header>Prohibition</header><text display-inline="yes-display-inline">The Director of the Office of Fair Lending
and Equal Opportunity may not allow a covered organization to participate in
any program established by such Director.</text>
</subparagraph><subparagraph id="H8132531611D441749E9EB467BE8C8CA9"><enum>(B)</enum><header>Covered
organization</header><text>In this paragraph, the term <quote>covered
organization</quote> means any of the following:</text>
<clause id="HE4568457D84A4FC3981C1DB6935FB018"><enum>(i)</enum><text>Any
organization that has been indicted for a violation under any Federal or State
law governing the financing of a campaign for election for public office or any
law governing the administration of an election for public office, including a
law relating to voter registration.</text>
</clause><clause id="H72256600357343F5A66AC2048E76E40F"><enum>(ii)</enum><text>Any
organization that had its State corporate charter terminated due to its failure
to comply with Federal or State lobbying disclosure requirements.</text>
</clause><clause id="H00BE3F01F84847B3B760CB7168B75EB2"><enum>(iii)</enum><text>Any organization
that has filed a fraudulent form with any Federal or State regulatory
agency.</text>
</clause><clause id="HAEED75BBC2224251B5187671776EDE44"><enum>(iv)</enum><text>Any
organization that—</text>
<subclause id="H9A68F6F6DD424821A6DD2E3F59D91F75"><enum>(I)</enum><text>employs any
applicable individual, in a permanent or temporary capacity;</text>
</subclause><subclause id="H33C2E89A8A91446D8F5FE851E6787320"><enum>(II)</enum><text>has under
contract or retains any applicable individual; or</text>
</subclause><subclause id="HE2CA671A5CE6449397070889BAFE0D3A"><enum>(III)</enum><text>has any
applicable individual acting on the organization’s behalf or with the express
or apparent authority of the organization.</text>
</subclause></clause></subparagraph><subparagraph id="H4E868A001BBE47768FF2EE99A8752392"><enum>(C)</enum><header>Additional
definitions</header><text>In this paragraph:</text>
<clause id="HC16E6AFDB28D4B2A9729BA89A2D5691E"><enum>(i)</enum><text>The
term <quote>organization</quote> includes the Association of Community
Organizations for Reform Now (in this paragraph referred to as
<quote>ACORN</quote>) and any ACORN-related affiliate.</text>
</clause><clause id="H49859582C9194855B1787C3892476017"><enum>(ii)</enum><text display-inline="yes-display-inline">The term <quote>ACORN-related
affiliate</quote> means any of the following:</text>
<subclause id="HCE0D2F3CAE3A4B468F340FDA78896A43"><enum>(I)</enum><text>Any State chapter
of ACORN registered with the Secretary of State’s office in that State.</text>
</subclause><subclause id="HF8E9E03B9C7B4FE0A8AA599BFD8C96F4"><enum>(II)</enum><text>Any organization
that shares directors, employees, or independent contractors with ACORN.</text>
</subclause><subclause id="H96807009A5D44AF8BFC0ED0527ADB3B3"><enum>(III)</enum><text>Any organization
that has a financial stake in ACORN.</text>
</subclause><subclause id="H8FDC990E4FA4479BB7818DB2956EB7DC"><enum>(IV)</enum><text>Any organization
whose finances, whether federally funded, donor-funded, or raised through
organizational goods and services, are shared or controlled by ACORN.</text>
</subclause></clause><clause id="H862C746CB07E43869CE7180916481775"><enum>(iii)</enum><text>The term
<quote>applicable individual</quote> means an individual who has been indicted
for a violation under Federal or State law relating to an election for Federal
or State office.</text>
</clause></subparagraph><subparagraph id="H650EB92512E041C2BBB5B7737DBE2A4B"><enum>(D)</enum><header>Revision of
federal acquisition regulation</header><text>The Federal Acquisition Regulation
shall be revised to carry out the provisions of this paragraph relating to
contracts.</text>
</subparagraph><subparagraph id="HA1CB907419F2415AB2D5D7687D5A4496"><enum>(E)</enum><header>Severability</header><text>If
any provision of this section or any application of such provision to any
person or circumstance is held to be unconstitutional, the remainder of this
section and the application of the provision to any other person or
circumstance shall not be affected.</text>
</subparagraph></paragraph></subsection></section><section id="HAEA888DA92D84FEC82FFD38A712D2117"><enum>4106.</enum><header>Consumer
Advisory Board</header>
<subsection id="HFFB9DB3F79694A3C8DFBB84D9CF43799"><enum>(a)</enum><header>Establishment
required</header><text>The Director shall establish a Consumer Advisory Board
to advise and consult with the Director in the exercise of the functions of the
Director and the Agency under this title, the enumerated consumer laws, and to
provide information on emerging practices in the consumer financial products or
services industry.</text>
</subsection><subsection display-inline="no-display-inline" id="HF754C4740F7F40448AC8A6E12C1E6FFF"><enum>(b)</enum><header>Membership</header>
<paragraph id="H3CB77DEB75D349F59913084498704D14"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In appointing the
members of the Consumer Advisory Board, the Director shall seek—</text>
<subparagraph id="HF78B53FB6C7646A28330E879ACA1B489"><enum>(A)</enum><text>to assemble
experts in financial services, community development, fair lending and civil
rights, consumer protection, and consumer financial products or services;
and</text>
</subparagraph><subparagraph id="H9B79EDC001374262A2C5BCBEBC35CABA"><enum>(B)</enum><text>to represent the
interests of covered persons and consumers.</text>
</subparagraph></paragraph><paragraph id="H7C23826AE94C4CE8AB77EB999BFC5658"><enum>(2)</enum><header>Prohibition on
membership with respect to certain indicted organizations</header><text>The
director may not appoint an employee of a covered organization (as defined in
section 4105(f)(4)(B)) to the Consumer Advisory Board.</text>
</paragraph></subsection><subsection id="H697F477E9A0949A0AC5BF755BDA1524E"><enum>(c)</enum><header>Political
affiliation</header><text>Not more than 1 more than half of the members of the
Consumer Advisory Board may be members of the same political party.</text>
</subsection><subsection id="H86E48A7556B747C0A59414A27477F289"><enum>(d)</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="H3A6F917C420D4EA5832F54DDB9CD6A74"><enum>(e)</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="H0EC3750CC5C24221BCAA496F84122933"><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="H3C0C368A0C4B4879A39E3C8761845DF3"><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="HB1516AE9ADCA46CD9F37D287F3A9E657"><enum>4107.</enum><header>Coordination</header>
<subsection id="HC14C678497CC4FA9942CB82A45EE39CD"><enum>(a)</enum><header>Coordination
with other federal agencies and state regulators</header><text display-inline="yes-display-inline">The Director shall coordinate with the
Securities and Exchange Commission, the Commodity Futures Trading Commission,
the Secretary of the Treasury, and other Federal agencies and State regulators,
as appropriate, to promote consistent regulatory treatment of, and enforcement
related to, consumer and investment products, services, and laws.</text>
</subsection><subsection id="HC10D15FD9FCC4F748C0CA7CEA8075406"><enum>(b)</enum><header>Coordination of
consumer education initiatives</header>
<paragraph id="HED1396816FBA4AAE8EA1F965CAFD7B69"><enum>(1)</enum><header>In
general</header><text>The Director shall coordinate with each agency that is a
member of the Financial Literacy and Education Commission established by the
Financial Literacy and Education Improvement Act (20 U.S.C. 9701 et seq.) to
assist each agency in enhancing its existing financial literacy and education
initiatives to better achieve the goals in paragraph (2) and to ensure the
consistency of such initiatives across Federal agencies.</text>
</paragraph><paragraph id="HEDCDB4F463EB4D13B1180C9DD672072A"><enum>(2)</enum><header>Goals of
coordination</header><text>In coordinating with the agencies described in
paragraph (1), the Director shall seek to improve efforts to educate consumers
about financial matters generally, the management of their own financial
affairs, and their judgments about the appropriateness of certain financial
products.</text>
</paragraph></subsection><subsection id="HD45AFF2F71D24AC687C9A9964267C273"><enum>(c)</enum><header>Coordination</header><text display-inline="yes-display-inline">The Agency may coordinate investigations,
compliance examinations, information sharing, and related activities in support
of activities undertaken pursuant to the Fair Housing Act by other Federal
agencies.</text>
</subsection></section><section id="H3718C80DA7004CDB8B30F70D24C82301"><enum>4108.</enum><header>Reports to the
Congress</header>
<subsection id="H4E7EB00693814F6EACF79BCE0F051833"><enum>(a)</enum><header>Reports
required</header><text>The Director shall prepare and submit to the President
and the appropriate committees of the Congress a report at the beginning of
each regular session of the Congress, beginning with the session following the
designated transfer date.</text>
</subsection><subsection id="H95BD9FE80AD84693AD4F951672275D31"><enum>(b)</enum><header>Contents</header><text>The
reports required by subsection (a) shall include—</text>
<paragraph id="H8CF08E3891E1419A8A03F5D3BADC2515"><enum>(1)</enum><text>a
list of the significant regulations and orders adopted by the Director, as well
as other significant initiatives conducted by the Director, during the
preceding year and the Director’s plan for regulations, orders, or other
initiatives to be undertaken during the upcoming period;</text>
</paragraph><paragraph id="HC4A118443E8C491394E3DFEA29E253BA"><enum>(2)</enum><text>an analysis of
complaints about consumer financial products or services that the Agency has
received and collected in its central database on complaints during the
preceding year;</text>
</paragraph><paragraph id="H61F72A614C36423E81CE1162FA46ADC8"><enum>(3)</enum><text>a
list, with a brief statement of the issues, of the public supervisory and
enforcement actions to which the Agency is a party (including adjudication
proceedings conducted under subtitle E) during the preceding year;</text>
</paragraph><paragraph id="HA082EF312F8342AE95A287F5B260C082"><enum>(4)</enum><text display-inline="yes-display-inline">the actions taken regarding regulations,
orders, and supervisory actions with respect to covered persons which are not
credit unions or depository institutions, including descriptions of the types
of such covered persons, financial activities, and consumer financial products
or services affected by such regulations, orders, and supervisory
actions;</text>
</paragraph><paragraph id="H60AF3EA3E62548F4B38CDBA1BC8A9AB8"><enum>(5)</enum><text>an appraisal of
significant actions, including actions under Federal or State law, by State
attorneys general or State regulators relating to this title, the authorities
transferred under subtitles F and H, and the enumerated consumer laws;</text>
</paragraph><paragraph id="HC56403A462564BD487FAE03E1E6C130D"><enum>(6)</enum><text display-inline="yes-display-inline">an analysis of the Agency’s efforts to
fulfill the fair lending mission of the Agency; and</text>
</paragraph><paragraph id="H64374DB0071D41F289CD5B3C0BF94C3C"><enum>(7)</enum><text display-inline="yes-display-inline">an appraisal of the regulatory and legal
difficulties encountered by the Agency in carrying out the mission and duties
of the Agency with respect to consumer protection, including a description
of—</text>
<subparagraph id="HC88DBC97856E493BBBE5050DD08DE86B"><enum>(A)</enum><text>the difficulties
and hardships encountered with respect to coordinating with other Federal and
State government entities;</text>
</subparagraph><subparagraph id="H7A2A3A9CA35E4077AFD4CD15758E1B9A"><enum>(B)</enum><text>the regulatory and
enforcement limitations placed on the Agency by this title;</text>
</subparagraph><subparagraph id="HD202C362C2CA4A8F8C1096B50B84706F"><enum>(C)</enum><text>the practices of
persons, covered and uncovered under this title, that allow such persons to
harm consumers and escape regulation or enforcement, including any trends
identified; and</text>
</subparagraph><subparagraph id="H8772940E8D294C068FA010073C18CFC2"><enum>(D)</enum><text>legislative and
administrative recommendations with respect to solving or alleviating
identified difficulties.</text>
</subparagraph></paragraph></subsection><subsection id="HFF32BDB93D2B47689ACF1B0427D1831E"><enum>(c)</enum><header>Annual
appearance before the congress</header><text display-inline="yes-display-inline">The Director shall appear before the House
Committee on Financial Services at an annual hearing, after the report is
submitted under subsection (a)—</text>
<paragraph id="H3F139968A0224A36BDBAEE13BCBD6FE2"><enum>(1)</enum><text>to discuss the
efforts, activities, objectives and plans of the Agency; and</text>
</paragraph><paragraph id="H817697BD81124587BE1843E6D13C7DB8"><enum>(2)</enum><text>discuss and answer
questions concerning such report.</text>
</paragraph></subsection></section><section id="H9F09537A80B546ECBE0D7A997DBA65FC"><enum>4109.</enum><header>Funding; fees
and assessments; penalties and fines</header>
<subsection id="H87761D787CE240CDA2DE4769C3883719"><enum>(a)</enum><header>Transfer of
funds from the board of governors</header>
<paragraph id="HA87F19E609C04ABBBD3E960630E79F9A"><enum>(1)</enum><header>Transfer
required</header><text>Each year, beginning on the designated transfer date,
the Board of Governors shall transfer funds in an amount equaling 10 percent of
the Federal Reserve System’s total system expenses (as reported in the Budget
Review of the Board of Governors most recent Annual Report to Congress) to the
Director for the purposes of carrying out the authorities granted in this
title, under the enumerated consumer laws, and transferred under subtitles F
and H.</text>
</paragraph><paragraph id="HDB601058146C4405BA1BFC5B27FF40C4"><enum>(2)</enum><header>Procedures</header><text>The
Board of Governors, in consultation with the Agency, shall make appropriate
arrangements to transfer funds to the Director in accordance with this
subsection.</text>
</paragraph></subsection><subsection id="H98965BC62EEF49FE87A1E182F0FC0484"><enum>(b)</enum><header>Fees and
assessments</header>
<paragraph id="HA958D5087E0C42278DD6A53665BD1B6F"><enum>(1)</enum><header>Assessment
required</header>
<subparagraph id="H8E8F3E853BAC4243A006380E4C0CC3CB"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Taking into account
such other sums available to the Agency and subject to the provisions of this
subsection and subsection (d), the Director shall assess fees on covered
persons to meet the Agency’s expenses for carrying out the duties and
responsibilities of the Agency, including supervising such covered
persons.</text>
</subparagraph><subparagraph id="H5ADD6773C43E453BADB2AF0741DC7B1E"><enum>(B)</enum><header>Basis for
assessment</header><text>The Agency shall assess fees on covered persons
pursuant to this subsection based on the size and complexity of the covered
person, and the compliance record of the covered person under the enumerated
consumer laws, the laws and authorities transferred under subtitles F and H,
and this title.</text>
</subparagraph></paragraph><paragraph id="H1DD9ACFE0AE4464B9B32E3DC5E9A939C"><enum>(2)</enum><header>Regulations</header>
<subparagraph id="H776FA46E5E7E4D57903F01145B113665"><enum>(A)</enum><header>In
general</header><text>The Director shall prescribe regulations to govern the
imposition and collection of fees and assessments.</text>
</subparagraph><subparagraph id="HBB45389FAAB44440BA6D08BB34506877"><enum>(B)</enum><header>Factors required
to be addressed</header><text>Regulations prescribed by the Director under this
subsection shall specify and define—</text>
<clause id="HC8F8825D27B44818A6D7FDAA8CF37F33"><enum>(i)</enum><text>the
basis of fees or assessments (such as the outstanding number of consumer credit
accounts, off-balance sheet receivables attributable to the covered person,
total consolidated assets, total assets under management, or volume of consumer
financial transactions or use of service providers);</text>
</clause><clause id="H620D1D4A7F014F729F88045065891EF2"><enum>(ii)</enum><text>the
amount and frequency of fees or assessments; and</text>
</clause><clause id="H1EA1AC3937864691A8E14B5CCCFDEDD5"><enum>(iii)</enum><text>such other
factors that the Director determines are appropriate, which shall include a
covered person’s compliance record under the enumerated consumer laws, the
authorities transferred under subtitles F and H, and this title.</text>
</clause></subparagraph></paragraph><paragraph id="H0C6E94D0B1434D7A9A3171B21B608ECB"><enum>(3)</enum><header>Assessments on
depository institution covered persons</header>
<subparagraph id="HA58CD592B63341DDA9027421EDF6CF67"><enum>(A)</enum><header>Depository
institution covered person defined</header><text>For purposes of this section,
the term <quote>depository institution covered person</quote> means a covered
person that is an insured depository institution or credit union.</text>
</subparagraph><subparagraph id="H557F52AFBC5846CC9F9B729E2871966B"><enum>(B)</enum><header>Assessments</header>
<clause id="HC2B96F03DBE94AC2BE990F30CDA9AEDA"><enum>(i)</enum><header>Fees
required</header><text>The Director shall assess fees for supervision as are
appropriate on depository institution covered persons, taking into account the
size and complexity of the covered person, and the compliance record of the
covered person under the enumerated consumer laws, the laws and authorities
transferred under subtitles F and H, and this title.</text>
</clause><clause display-inline="no-display-inline" id="H41D6D289FAE74399909BDE525B7F8744"><enum>(ii)</enum><header>Limitation on
certain fees</header><text>The Agency shall not assess examination fees on an
institution referred to in section 4203(a), or an institution whose examination
responsibilities have been delegated to an appropriate agency, pursuant to
section 4202(c)(11).</text>
</clause><clause id="H524D98E3917D4A0D8F2ABFA89C026AD0"><enum>(iii)</enum><header>Basis for fee
amounts</header><text>Fees assessed by the Director under this subparagraph may
be established at levels necessary to meet the Agency’s expenses for carrying
out the duties and responsibilities of the Director and the Agency under this
title with regard to depository institution covered persons.</text>
</clause></subparagraph><subparagraph id="H23968A00A6E64F66A52F9B47A413C469"><enum>(C)</enum><header>Coordination
during implementation period</header><text>The Director and the agencies
responsible for chartering and or supervising depository institution covered
persons shall coordinate on the levels of fees assessed on depository
institution covered persons under this paragraph, so that levels of assessments
under this subparagraph combined with levels of assessments by agencies
responsible for chartering and or supervising depository institution covered
persons shall be no more than the assessments such depository institution
covered person was required to pay for the 12-month period ending on December
31, 2009.</text>
</subparagraph><subparagraph id="H61A966D485564579986076D34ED99078"><enum>(D)</enum><header>Marginal
assessment rate</header>
<clause id="H85FCACEACEB8493FA3639F5865722C44"><enum>(i)</enum><header>In
general</header><text>In setting assessment rates for depository institution
covered persons, the Director shall not impose assessments that result in
higher marginal assessment rates for depository institution covered persons
with assets of less than $25,000,000,000 than the marginal rates for depository
institutions covered persons with assets that exceed that amount.</text>
</clause><clause id="HF5CF8047876B46C2BF347670DC976253"><enum>(ii)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Clause (i) shall
not be construed as limiting or impairing the authority of the Director to set
assessments that would result in higher marginal assessment rates on the larger
depository institution covered persons.</text>
</clause></subparagraph><subparagraph id="HAE918A4E935F4E40BE3A37793ECE3434"><enum>(E)</enum><header>Limitations on
assessments</header>
<clause id="H87138BC082A441139485D06DD25478D2"><enum>(i)</enum><header>Assessments for
administrative costs</header><text>Notwithstanding any provision in this title,
no depository institution covered person shall be charged an assessment to be
used for the supervision, examination, enforcement or regulation by the Agency
of nondepository covered persons.</text>
</clause><clause id="HBC7EE1989EF44021844D3FB033324DB7"><enum>(ii)</enum><header>Amounts paid
for consumer compliance supervision</header><text>Notwithstanding any provision
in this title, no depository institution covered person shall pay more for
consumer compliance supervision than it paid before the date of enactment of
this title.</text>
</clause></subparagraph></paragraph><paragraph id="H093B04CDBD854706B9ABA16064B81E8D"><enum>(4)</enum><header>Assessments on
nondepository covered persons</header>
<subparagraph id="H9C5E944312E941B39758806C764D79D0"><enum>(A)</enum><header>Nondepository
covered person defined</header><text>For purposes of this section, the term
<quote>nondepository covered person</quote>—</text>
<clause id="H095108A227D143A5B06FA08A9B1211A8"><enum>(i)</enum><text>means a covered
person that is not a credit union or insured depository institution; and</text>
</clause><clause id="HC64AB566A5304C9A835BC9FF3DDC74E7"><enum>(ii)</enum><text>includes any bank
holding company.</text>
</clause></subparagraph><subparagraph id="H360E592298704620A1605F8F99997224"><enum>(B)</enum><header>Assessments</header>
<clause id="H30ECD3D306534F56A4DBDDC4FCF8E192"><enum>(i)</enum><header>Fees
required</header><text>The Director shall assess fees for registration,
examination, and supervision of nondepository covered persons.</text>
</clause><clause id="H60222B5C4AFE40E790C03B163459D327"><enum>(ii)</enum><header>Basis for fee
amounts</header><text>Fees assessed by the Director under this subparagraph may
be established at levels necessary to meet the Agency’s expenses for carrying
out the duties and responsibilities of the Director and the Agency, including
supervising such covered persons, taking into account such other sums available
to the Agency.</text>
</clause><clause id="H83171FA8298140208CE8A6CC80917C5B"><enum>(iii)</enum><header>Registration
fee minimums</header><text>Registration fees imposed on a nondepository covered
person under this paragraph shall, at a minimum, be imposed on such covered
person at the time the person registers (or periodically renews any such
registration) with the Agency, in accordance with regulations prescribed by the
Director.</text>
</clause></subparagraph><subparagraph id="H293CE213A13C497382269CC2B4E6CE4A"><enum>(C)</enum><header>Nondepository
covered person assessment not less than for depository covered
persons</header><text>Assessment rates levied by the Director under this
section on a nondepository institution covered persons shall be no less than
assessments levied by the Agency under this section on a depository institution
covered person with similar characteristics.</text>
</subparagraph></paragraph></subsection><subsection id="H3F3FFA755C464E18BC854A09C17E0A6C"><enum>(c)</enum><header>Authorization of
appropriations</header>
<paragraph id="H9E4849236059425EBE7F11E69771C1F9"><enum>(1)</enum><header>In
general</header><text>For the purposes of carrying out the authorities granted
in this title, under the enumerated consumer laws, and the laws and authorities
transferred under subtitles F and H, there are authorized to be appropriated to
the Director such sums as may be necessary for any fiscal year.</text>
</paragraph><paragraph id="H1B41A5F23CE0404BB2046683E14E4C49"><enum>(2)</enum><header>Apportionment</header><text>Notwithstanding
any other provision of law, such amounts 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="H1D164BA3FD624DAB86D7BB86771426BE"><enum>(3)</enum><header>Other available
funds taken into account</header><text>Sums appropriated under this subsection
shall take into account such other sums available to the Agency under this
section.</text>
</paragraph></subsection><subsection id="H9830E321BE304BCF915D98D6350D8E30"><enum>(d)</enum><header>Consumer
financial protection agency depository institution fund</header>
<paragraph id="HB66D09B0B3E64CAE8F3A2AF3AD60944A"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="H309EBC0A79A047338ECAC65362550B19"><enum>(A)</enum><header>In
general</header><text>There is established in the Treasury a separate fund to
be known as the <quote>Consumer Financial Protection Agency Depository
Institution Fund</quote> (hereafter in this section referred to as the
<quote>CFPA Depository Fund</quote>).</text>
</subparagraph><subparagraph id="HA138C6B9DA0E4B428F27D2BE6EDE968E"><enum>(B)</enum><header>Amounts in fund
not available for certain purposes</header><text>Other than pursuant to
subsection (f), amounts on deposit in the CFPA Depository Fund shall not be
used in the supervision and examination of nondepository institution covered
persons.</text>
</subparagraph></paragraph><paragraph id="HAA32CAD5D231416E967D47B0E02B8CF8"><enum>(2)</enum><header>All transferred
funds deposited</header><text>All amounts transferred to the Agency under
subsection (a) shall be deposited into the CFPA Depository Fund.</text>
</paragraph><paragraph id="H63FB91A1927A474E869DD2B7049162AD"><enum>(3)</enum><header>All applicable
supervisory fees and assessments deposited</header><text display-inline="yes-display-inline">The Director shall deposit all amounts
received from assessments under subsection (b)(3) in the CFPA Depository
Fund.</text>
</paragraph></subsection><subsection id="H9C567C8C765348CD9968441843FEFE01"><enum>(e)</enum><header>Consumer
financial protection agency nondepository institution fund</header>
<paragraph id="H2814987D2CDD43A3B0CFC388898E680F"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="HC9DC9CB37571446DAC7904F67ADBEAC2"><enum>(A)</enum><header>In
general</header><text>There is established in the Treasury a separate fund
called the Consumer Financial Protection Agency Nondepository Institution Fund
(hereafter in this section referred to as the <quote>CFPA Nondepository
Fund</quote>).</text>
</subparagraph><subparagraph id="H7EC4433FCF454F76B39CE9B37129268E"><enum>(B)</enum><header>Amounts in fund
not available for certain purposes</header><text>Other than pursuant to
subsection (f), amounts on deposit in the CFPA Nondepository Fund shall not be
used for the supervision and examination of depository institution covered
persons.</text>
</subparagraph></paragraph><paragraph id="H2967E621F4CD443481477CCC44A0A7CF"><enum>(2)</enum><header>All applicable
supervisory fees and assessments deposited</header><text>The Director shall
deposit all amounts received from assessments under subsection (b)(4) in the
CFPA Nondepository Fund.</text>
</paragraph></subsection><subsection id="HD39575A371DA418A948DB28C5F57FEAC"><enum>(f)</enum><header>General
provisions relating to funds</header>
<paragraph id="HD301A6D060CE4433A479BB2BC980C1E2"><enum>(1)</enum><header>Maintenance of
funds</header>
<subparagraph id="HAA7A6387E8F9405C9D1389B768C2A197"><enum>(A)</enum><header>Agency funds
maintained by treasury</header><text>The Consumer Financial Protection Agency
Depository Institution Fund established under subsection (d) and the Consumer
Financial Protection Agency Nondepository Institution Fund established under
subsection (e) shall each be—</text>
<clause id="H71B04E919DCB47179AFB88F855D234C5"><enum>(i)</enum><text>maintained and
administered by the Secretary; and</text>
</clause><clause id="H6703962E2E104CC5A69A1B7F08413159"><enum>(ii)</enum><text>maintained
separately and not commingled.</text>
</clause></subparagraph><subparagraph id="HA8B55D1DB8754A3BAB7C8F2695418839"><enum>(B)</enum><header>Agency’s
authority</header><text>Any provision of this title forbidding the commingling
or use of the CFPA Depository Fund and the CFPA Nondepository Fund shall not be
construed as limiting or impairing the authority of the Agency to use the same
facilities and resources in the course of conducting supervisory and regulatory
functions with respect to depository institutions and nondepository
institutions, or to integrate such functions.</text>
</subparagraph><subparagraph id="H05582AB9DACA4BE295E27B1F8FA0BBBD"><enum>(C)</enum><header>Accounting
requirements</header>
<clause id="HAE44FED34DEF40B5978F2757524923BC"><enum>(i)</enum><header>Accounting for
use of facilities and resources</header><text>The Agency shall keep a full and
complete accounting of all costs and expenses associated with the use of any
facility or resource used in the course of any function specified in
subparagraph (B) and shall allocate, in the manner provided in subparagraph
(D), any such costs and expenses incurred by the Agency—</text>
<subclause id="HBB7697093FAC4E7AA272CA25EA574FF1"><enum>(I)</enum><text>with respect to
depository institution covered persons, to the CFPA Depository Fund; and</text>
</subclause><subclause id="HF02AF4DDE067495DABD9004A004E51EB"><enum>(II)</enum><text>with respect to
nondepository covered persons, to the CFPA Nondepository fund.</text>
</subclause></clause></subparagraph><subparagraph id="H6F6DA74643E64AFF83D5E289AB389A80"><enum>(D)</enum><header>Allocation of
administrative expenses</header><text>Any personnel, administrative, or other
overhead expense of the Agency shall be allocated—</text>
<clause id="H04C363488CFB4434867DFB0255529C6B"><enum>(i)</enum><text>fully to the CFPA
Depository Fund if the expense was incurred directly as a result of the
Agency’s responsibilities solely with respect to depository institution covered
persons;</text>
</clause><clause id="H9BAFF25A37C541C7AEB924D2E3A88183"><enum>(ii)</enum><text>fully to the CFPA
Nondepository Fund, if the expense was incurred directly as a result of the
Agency’s responsibilities solely with respect to nondepository covered
persons;</text>
</clause><clause id="HF51D7C9807724390BEA710E0E9083FC1"><enum>(iii)</enum><text>between the CFPA
Depository Fund and the CFPA Nondepository Fund, in amounts reflecting the
relative degree to which the expense was incurred as a result of the activities
of depository institution covered persons, and nondepository covered persons;
and</text>
</clause><clause id="H3B399B43D0BE435DB983D771CC07D28B"><enum>(iv)</enum><text display-inline="yes-display-inline">if the Director is unable to make a
complete allocation under clause (i), (ii), or (iii), between the CFPA
Depository Fund and the CFPA Nondepository Fund, in amounts reflecting the
relative proportion that, as of the end of the preceding year—</text>
<subclause id="HE405D1564B644953B76DC318C57D1C53"><enum>(I)</enum><text>the aggregate
assets of all depository institution covered persons bears to the aggregate
assets of all covered persons; and</text>
</subclause><subclause id="H2D12F309B37F46F6B58F053B23DAB146"><enum>(II)</enum><text display-inline="yes-display-inline">the aggregate assets of all nondepository
covered persons bears to the aggregate assets of all covered persons.</text>
</subclause></clause></subparagraph><subparagraph id="HA94BFA1DEA864E2BAB6D3CAB9747DF46"><enum>(E)</enum><header>Agency
fund</header><text display-inline="yes-display-inline">The <quote>Agency
fund</quote> means the Consumer Financial Protection Agency Depository
Institution Fund established under subsection (d), and, the Consumer Financial
Protection Agency Nondepository Institution Fund established under subsection
(e), and the Consumer Financial Protection Agency Civil Penalty Fund
established under subsection (g).</text>
</subparagraph></paragraph><paragraph id="H6CC6572DD1DC41E0B52384D2DB4CA0F6"><enum>(2)</enum><header>Investment</header>
<subparagraph id="H56CE31FC98374592B9BA4CF7EC84E2F8"><enum>(A)</enum><header>Amounts in funds
may be invested</header><text display-inline="yes-display-inline">The Director
may request the Secretary to invest the portion of any Agency fund that, in the
Director’s judgment, is not required to meet the current needs of such
fund.</text>
</subparagraph><subparagraph id="H51B706B0E2F34F1C940E0C59AF391C9A"><enum>(B)</enum><header>Eligible
investments</header><text>Investments pursuant to subparagraph (A) 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 Agency fund involved, as determined by
the Director.</text>
</subparagraph><subparagraph id="H37B46F632B9740F4848F07FE8C67CFDE"><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 respective Agency Fund shall be
credited to and form a part of the respective Agency Fund.</text>
</subparagraph></paragraph><paragraph id="HABEA216E7E484E2A9DA88753A69BAFDB"><enum>(3)</enum><header>Use of
funds</header><text>Funds obtained by, transferred to, or credited to any
Agency fund shall be immediately available to the Agency, and remain available
until expended, to pay the expenses of the Agency in carrying out the duties
and responsibilities of the Director and the Agency, including the payment of
compensation of the Director and officers and employees of the Agency.</text>
</paragraph><paragraph id="HDF8B08BE0FC74F4BA812030EC3FA0AAE"><enum>(2)</enum><header>Fees,
assessments and other funds not government funds</header><text>Funds obtained
by or transferred to any Agency fund shall not be construed to be Government
funds or appropriated monies.</text>
</paragraph><paragraph id="HEB3A8FE219154D948F6F54D138437E22"><enum>(3)</enum><header>Amounts not
subject to apportionment</header><text>Notwithstanding any other provision of
law, amounts in any Agency fund 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="H2CC5DAA9254B43558A592E25F2319946"><enum>(g)</enum><header>Penalties and
fines</header>
<paragraph id="H68733C04C73442AB88B66DD4C76DED90"><enum>(1)</enum><header>Establishment of
victims relief fund</header><text>There is established in the Treasury of the
United States a fund to be known as the <quote>Consumer Financial Protection
Agency Civil Penalty Fund</quote> (hereafter in this section referred to as the
<quote>Civil Penalty Fund</quote>).</text>
</paragraph><paragraph id="H3DACDAC38B0843FEA54158C8FD24B02D"><enum>(2)</enum><header>Deposits</header><text>If
the Agency obtains a civil penalty against any person in any judicial or
administrative action under this title, any law or authority transferred under
subtitles F and H, or any enumerated consumer law, the Agency shall deposit
into the Civil Penalty Fund the amount of the penalty collected.</text>
</paragraph><paragraph id="H082814F2926A4658A73DB6F7DFBBCF1E"><enum>(3)</enum><header>Payment to
victims</header><text display-inline="yes-display-inline">Amounts in the Civil
Penalty Fund shall be available to the Director, without fiscal year
limitation, for payments to the victims of activities for which civil penalties
have been imposed under this title, the law and authorities transferred under
subtitles F and H, or any enumerated consumer law.</text>
</paragraph></subsection></section><section id="H0055B89E00244FA2B651925ED78D8EA8"><enum>4110.</enum><header>Amendments
relating to other administrative provisions</header>
<subsection id="HA1870103C4CE4F7D867E2B255A6E6A58"><enum>(a)</enum><header>Act of October
28, 1974</header><text display-inline="yes-display-inline">Section 111 of
Public Law 93–495 (12 U.S.C. 250) is amended by inserting <quote>the Consumer
Financial Protection Agency,</quote> after <quote>Federal Deposit Insurance
Corporation,</quote>.</text>
</subsection><subsection id="H9D470949590A4683A1804F9AFB3611A1"><enum>(b)</enum><header>Paperwork
Reduction Act</header><text display-inline="yes-display-inline">Section 2(5) of
the Paperwork Reduction Act (44 U.S.C. 3502(5)) by inserting <quote>the
Consumer Financial Protection Agency,</quote> after <quote>the Securities and
Exchange Commission,</quote>.</text>
</subsection></section><section id="HB8B3C01C84A843F0ADEE07540CEFE377"><enum>4111.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the date of the enactment of this title.</text>
</section></subtitle><subtitle id="H5B8351FA410C4B29AADA1E6DC0928FBD"><enum>B</enum><header>General Powers of
the Director and Agency</header>
<section id="H3EF4D4EB4A8A4F2AB43152BD88722530"><enum>4201.</enum><header>Mandate and
objectives</header>
<subsection id="HB81180926A91449990715376A8E93105"><enum>(a)</enum><header>Mandate</header><text>The
Director shall seek to promote transparency, simplicity, fairness,
accountability, and equal access in the market for consumer financial products
or services.</text>
</subsection><subsection id="H864B3475ECED44739340A95447F8E93C"><enum>(b)</enum><header>Objectives</header><text display-inline="yes-display-inline">The Director may exercise the authorities
granted in this title, in the enumerated consumer laws, and transferred under
subtitles F and H for the purposes of ensuring that, with respect to consumer
financial products or services—</text>
<paragraph id="H22CB3E08CCAB448188A37D54DA8C56E0"><enum>(1)</enum><text>consumers have and
can use the information they need to make responsible decisions about consumer
financial products or services;</text>
</paragraph><paragraph id="HDA212A5346824232A3E9915B4E6E4261"><enum>(2)</enum><text>consumers are
protected from abuse, unfairness, deception, and discrimination;</text>
</paragraph><paragraph id="HC3F817D778B74F7596B95B8689EBEFE8"><enum>(3)</enum><text>markets for
consumer financial products or services operate fairly and efficiently with
ample room for sustainable growth and innovation; and</text>
</paragraph><paragraph id="HF2E321A110EA4AD1BD2F549C6BD13CB1"><enum>(4)</enum><text>traditionally
underserved consumers and communities have equal access to responsible
financial services.</text>
</paragraph></subsection></section><section id="HB085A450288546F6A2C81F64495DA1EF"><enum>4202.</enum><header>Authorities</header>
<subsection id="H8C3D0F5C96B14408B198DD73A269FA20"><enum>(a)</enum><header>In
general</header><text>The Director may exercise the authorities granted in this
title, in the enumerated consumer laws, and transferred under subtitles F and
H, to administer, enforce, and otherwise implement the provisions of this
title, the authorities transferred in subtitles F and H, and the enumerated
consumer laws.</text>
</subsection><subsection id="H3560FE81049645D9A78C10BBD424D335"><enum>(b)</enum><header>Rulemaking,
orders, and guidance</header>
<paragraph id="H047F12E147044D6C982A81593E87A792"><enum>(1)</enum><header>In
general</header><text>The Director may prescribe regulations and issue orders
and guidance as may be necessary or appropriate to enable it to administer and
carry out the purposes and objectives of this title, the authorities
transferred under subtitles F and H, and the enumerated consumer laws, and to
prevent evasions of this title, any such authority, and any such law.</text>
</paragraph><paragraph id="H9124085267FB453DA13859C51B95C6B5"><enum>(2)</enum><header>Standards for
rulemaking</header><text>In prescribing a regulation under this title or
pursuant to the authorities transferred under subtitles F and H or the
enumerated consumer laws, the Director shall—</text>
<subparagraph id="HBCA8D7CA6C8B462EA43E5B4CC5A114A6"><enum>(A)</enum><text>consider the
potential benefits and costs to consumers and covered persons, including the
potential reduction of consumers’ access to consumer financial products or
services, resulting from such regulation; and</text>
</subparagraph><subparagraph id="HCBCB6994D2174EDB8A17DD9ACA521A93"><enum>(B)</enum><text display-inline="yes-display-inline">consult with the Federal banking agencies,
State bank supervisors, the Federal Trade Commission, or other Federal
agencies, as appropriate, regarding the consistency of a proposed regulation
with prudential, consumer protection, civil rights, market, or systemic
objectives administered by such agencies or supervisors.</text>
</subparagraph></paragraph><paragraph id="H5B196BE817C34140BAF92257FCCBEC02"><enum>(3)</enum><header>Exemptions</header>
<subparagraph id="HB27B136D0B434624BD7C9E081F057EA8"><enum>(A)</enum><header>In
general</header><text>The Director, by regulation or order, may conditionally
or unconditionally exempt any covered person, service provider, or any consumer
financial product or service or any class of covered persons, class of service
providers, or consumer financial products or services, from any provision of
this title, any enumerated consumer law, or from any regulation under any such
provision or law, as the Director deems 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="H16398FA4020A448083344C20129197D4"><enum>(B)</enum><header>Factors</header><text>In
issuing an exemption by regulation or order as permitted in subparagraph (A),
the Director shall as appropriate take into consideration the following:</text>
<clause id="H5C8DF53D5FDD4708B7E802B504E07F72"><enum>(i)</enum><text>The
total assets of the covered person.</text>
</clause><clause id="HCF1159C14F0A4FC2BB714E55F4BBE7A7"><enum>(ii)</enum><text>The
volume of transactions involving consumer financial products or services in
which the covered person engages.</text>
</clause><clause id="H4550332E2D8B451EB0D506FD4EC80D78"><enum>(iii)</enum><text>The extent to
which the covered person engages in 1 or more financial activities.</text>
</clause><clause id="H838CD8D49F7C45999FF9881FD8C88245"><enum>(iv)</enum><text>Existing laws or
regulations which are applicable to the consumer financial product or service
and the extent to which such laws or regulations provide consumers with
adequate protections.</text>
</clause></subparagraph><subparagraph id="H59096C83F0CB424BA4785DE0E96AD602"><enum>(C)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">No provision of
this section shall be construed as altering, amending, or affecting any
authority under sections 304(a), 304(i), 305(a), and 306(b) of the Home
Mortgage Disclosure Act of 1975 and sections 703(a)(1), 703(a)(2), 703(a)(3),
705(f), and 705(g) of the Equal Credit Opportunity Act for determining whether
a covered person should be provided an exemption.</text>
</subparagraph></paragraph></subsection><subsection id="H22AB91306378496D8A569071D306DB2D"><enum>(c)</enum><header>Examinations and
reports</header>
<paragraph id="HCA559AA11C2D48159327CDD764A3D7F8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided
under section 4203, the Director may on a periodic basis examine a covered
person or service provider, with respect to any consumer financial product or
service, for purposes of ensuring compliance with the requirements of this
title, the enumerated consumer laws, and any regulations prescribed by the
Director under this title or pursuant to the authorities transferred under
subtitles F and H, and enforcing compliance with such requirements.</text>
</paragraph><paragraph id="H944604C746DA4300963F59E4D230F5DE"><enum>(2)</enum><header>Examination
program</header><text display-inline="yes-display-inline">The Director shall
exercise any authority of the Director under paragraph (1) in a manner designed
to ensure that such authorities are exercised with respect to covered persons
or service providers, without regard to charter or corporate form, based on the
Director’s assessment of the risks posed to consumers in the relevant product
markets and geographic markets, and taking into consideration, as applicable,
the following factors:</text>
<subparagraph id="HE6FB472999044DC9A74C265FD369B1A9"><enum>(A)</enum><text>The asset size of
the covered persons.</text>
</subparagraph><subparagraph id="H59282C3DAFC844C4A8E535E86D4EEEC9"><enum>(B)</enum><text>The volume of
transactions involving consumer financial products or services in which the
covered persons engage.</text>
</subparagraph><subparagraph id="HEF91BF31C8BA46879AD964DBF47A1140"><enum>(C)</enum><text>The risks to
consumers created by the provision of such consumer financial products or
services.</text>
</subparagraph><subparagraph id="H4A157B162D6F44CBBEE7B04F8C6B831B"><enum>(D)</enum><text>In the case of
State-chartered institutions, the extent to which such institutions are subject
to oversight by State authorities for consumer protection.</text>
</subparagraph></paragraph><paragraph id="HCAAB76F4F57D417F980B14019806BB1C"><enum>(3)</enum><header>Coordination</header><text>The
Director shall coordinate the Agency’s supervisory activities with the
supervisory activities conducted by the Federal banking agencies and the State
bank supervisors, including establishing their respective schedules for
examining covered persons and requirements regarding reports to be submitted by
covered persons.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HB6D9268FA8964EB49C93CD552AC4BBE7"><enum>(4)</enum><header>Reports</header><text display-inline="yes-display-inline">The Director may require reports from a
covered person for purposes of ensuring compliance with the requirements of
this title, the enumerated consumers laws, and any regulation prescribed by the
Director under this title or pursuant to the authorities transferred under
subtitles F and H, and enforcing compliance with such requirements.</text>
</paragraph><paragraph id="HDC063C915AD3497D975612B8B86C9426"><enum>(5)</enum><header>Content of
reports</header><text>The reports authorized in paragraph (4) may include such
information as necessary to keep the Agency informed as to—</text>
<subparagraph id="H6DA42DF961854280B379736EA751BFFC"><enum>(A)</enum><text>the compliance
systems or procedures of the covered person or any affiliate thereof, with
applicable provisions of this title or any other law that the Agency has
jurisdiction to enforce; and</text>
</subparagraph><subparagraph id="H64BB0ADCFA764B5AB5321E85ED62D2D9"><enum>(B)</enum><text>matters related to
the provision of consumer financial products or services including the
servicing or maintenance of accounts or extensions of credit.</text>
</subparagraph></paragraph><paragraph id="H74E09BE814614589876FE92AF048E032"><enum>(6)</enum><header>Use of existing
reports</header><text>In general, the Agency shall, to the fullest extent
possible, use—</text>
<subparagraph id="H46534AEBBE01445EA2B8370A1D545A0C"><enum>(A)</enum><text display-inline="yes-display-inline">reports that a covered person, or any
affiliate thereof, or any service provider to such covered person or affiliate,
has provided or been required to provide to a Federal or State agency;
and</text>
</subparagraph><subparagraph id="HF5027DFD3DA54B87B53A3978D2B56221"><enum>(B)</enum><text>information that
has been reported publicly.</text>
</subparagraph></paragraph><paragraph id="HC7301CAAD57F44C791190B121C9DFF9F"><enum>(7)</enum><header>Access by the
agency to reports of other regulators</header>
<subparagraph id="H3D37FE02ABFD44FC91D21AE7340468F9"><enum>(A)</enum><header>Examination and
financial condition reports</header><text display-inline="yes-display-inline">Upon providing reasonable assurances of
confidentiality, the Agency shall have access to any report of examination or
financial condition, including a report containing data regarding consumer
complaints, made by a Federal banking agency or other Federal agency having
supervision of a covered person, or a service provider, (other than returns and
return information described in section 6103 of the Internal Revenue Code of
1986) and to all revisions made to any such report.</text>
</subparagraph><subparagraph id="HCA309040ED6946CBB6478305297B9F6D"><enum>(B)</enum><header>Provision of
other reports to agency</header><text>In addition to the reports described in
subparagraph (A), a Federal banking agency may, in its discretion, furnish to
the Agency any other report or other confidential supervisory information
concerning any insured depository institution, any credit union, or other
entity examined by such agency under authority of any Federal law.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF3CECE6DA3B14A54AEB6199756142FF9"><enum>(8)</enum><header>Access by other
regulators to reports of the agency</header>
<subparagraph id="H14B296D26F054B96837179BBDAE37E34"><enum>(A)</enum><header>Examination
reports</header><text display-inline="yes-display-inline">Upon providing
reasonable assurances of confidentiality, a Federal banking agency, a State
regulator, or any other Federal agency having supervision of a covered person
shall have access to any report of examination made by the Agency with respect
to the covered person or service provider, and to all revisions made to any
such report.</text>
</subparagraph><subparagraph id="H3323EEDB7529456AB0FB6AEF91DF4586"><enum>(B)</enum><header>Provision of
other reports to other regulators</header><text display-inline="yes-display-inline">In addition to the reports described in
paragraph (A), the Agency may, in the discretion of the Agency, furnish to a
Federal banking agency any other report or other confidential supervisory
information concerning any insured depository institution, any credit union, or
other entity examined by the Agency under authority of any Federal law.</text>
</subparagraph></paragraph><paragraph id="H027C065E9B864495975061A60BAB069E"><enum>(9)</enum><header>Preservation of
authority</header><text display-inline="yes-display-inline">No provision in
paragraph (3) shall be construed as preventing the Agency from conducting an
examination authorized by this title or under the authorities transferred under
subtitles F and H or pursuant to any enumerated consumer law. No provision of
this title shall be construed as limiting the authority of the Director to
require reports from a covered person, as permitted under paragraph (4),
regarding information owned or under the control of the covered person,
regardless of whether such information is maintained, stored, or processed by
another person.</text>
</paragraph><paragraph id="HA0608BCC46C140F69939F766B57B5349"><enum>(10)</enum><header>Reports of tax
law noncompliance</header><text display-inline="yes-display-inline">The
Director shall provide the Commissioner of Internal Revenue with any report of
examination or related information identifying possible tax law
noncompliance.</text>
</paragraph><paragraph id="H6FE3458ACB61487CA58BF55613BE7E7F"><enum>(11)</enum><header>Delegation</header>
<subparagraph id="HA950F5E298ED49E48478CC96D5D198F9"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director may
delegate the examination authorities of the Agency under this title to any
appropriate agency, as defined in section 4203, for any insured depository
institution or insured credit union that is not subject to section 4203 upon a
petition by an appropriate agency.</text>
</subparagraph><subparagraph id="HC06C81CD8C67493D9B65A5060E1E9055"><enum>(B)</enum><header>Standard for
delegation</header><text>The Director shall provide such delegation if, in the
Director’s sole discretion, the Director determines that—</text>
<clause id="HCB2439F1D4C74E68A1A84FD05CB20F65"><enum>(i)</enum><text>the
delegation is consistent with the public interest;</text>
</clause><clause id="H12B7FA824FBB464C93528348DFA7E9DB"><enum>(ii)</enum><text display-inline="yes-display-inline">the appropriate agency is capable of
enforcing compliance with this title, and with any regulation prescribed under
this title; and</text>
</clause><clause id="H917F3BE488BA4FCAAD0A49C91D178283"><enum>(iii)</enum><text>such capability
is comparable to or superior to the capability of the Agency, in terms of
expertise, demonstrated commitment, and overall effectiveness, in enforcing
such compliance.</text>
</clause></subparagraph><subparagraph id="HC7DE28296B4D4A9FAC21B4B30FE3B78D"><enum>(C)</enum><header>Effect of
delegation</header><text display-inline="yes-display-inline">The insured
depository institution or insured credit union shall be subject to the
examination process described in section 4203(b).</text>
</subparagraph><subparagraph id="HF853566466744E07A8279ED0C051D2D3"><enum>(D)</enum><header>No effect on
enforcement</header><text>The Director’s delegation authority under this
paragraph shall not apply to the Director’s enforcement responsibilities under
subsection (e).</text>
</subparagraph></paragraph></subsection><subsection id="H64191099743643639FB43BD3AD1A8174"><enum>(d)</enum><header>Exclusive
rulemaking and examination authority</header><text>Notwithstanding any other
provision of Federal law other than section 4203 and subsections (f) and (h) of
this section, to the extent that a Federal law authorizes the Director and
another Federal agency to prescribe regulations, issue guidance, conduct
examinations, or require reports under that law for purposes of assuring
compliance with this title, any enumerated consumer law, the laws for which
authorities were transferred under subtitles F and H, and any regulations
prescribed under this title or pursuant to any such authority, the Director
shall have the exclusive authority to prescribe regulations, issue guidance,
conduct examinations, require reports, or issue exemptions with regard to any
person subject to that law and with respect to any activity regulated under any
enumerated consumer law.</text>
</subsection><subsection id="H78CDD5820FEE4FEDA8343D01D34C0100"><enum>(e)</enum><header>Primary
enforcement authority</header>
<paragraph id="HCBFBEAFD4B9D457CB04E1DBCEEEB4453"><enum>(1)</enum><header>The agency to
have primary enforcement authority</header><text>To the extent that a Federal
law authorizes the Agency and another Federal agency to enforce that law, the
Agency shall have primary authority to enforce that Federal law with respect to
any person in accordance with this subsection.</text>
</paragraph><paragraph id="HB90AA3BE351349A39AAFBAF5CD32A369"><enum>(2)</enum><header>Coordination
with Federal Trade Commission</header>
<subparagraph id="H64C44B49412C4567832FA37DB1200B6C"><enum>(A)</enum><header>Notice</header><text display-inline="yes-display-inline">If the Commission is authorized to enforce
any Federal law described in paragraph (1), or a regulation prescribed under
any such Federal law, the Commission shall serve written notice to the Director
of any enforcement action at least 30 days prior to initiating such an
enforcement action, except that if exigent circumstances are present, the
Commission may provide notice immediately upon initiating such enforcement
action.</text>
</subparagraph><subparagraph id="H3B5135249FD445EEABA8744274A56EDB"><enum>(B)</enum><header>Intervention by
the Director</header><text display-inline="yes-display-inline">Upon receiving
any notice under subparagraph (A) with respect to an enforcement action, the
Director may intervene in such enforcement action and upon intervening—</text>
<clause id="HE331B75232404081A109C9CE870ECB7A"><enum>(i)</enum><text>be
heard on all matters arising in such enforcement action; and</text>
</clause><clause id="H1206558E27134D99A3AEA49359011720"><enum>(ii)</enum><text>file petitions
for appeal in such enforcement action.</text>
</clause></subparagraph><subparagraph id="H92AE34AC7AE846398DD17F80456B13B3"><enum>(C)</enum><header>Pendency of
Agency action</header><text display-inline="yes-display-inline">Whenever a
civil action has been instituted by or on behalf of the Agency for any
violation of any Federal law described in paragraph (1), or a regulation
prescribed under any such Federal law, the Commission may not, during the
pendency of that action instituted by or on behalf of the Agency, institute a
civil action under such law or regulation against any defendant named in the
Agency complaint in such action for any violation alleged in the Agency
complaint.</text>
</subparagraph><subparagraph id="HA91BD2DBE9E645E696718DE0BDCACB36"><enum>(D)</enum><header>Agreements
between Agencies</header>
<clause id="H7DE17FC73C91481E8084A14E4A4665F3"><enum>(i)</enum><header>Negotiations
authorized</header><text>The Director may negotiate an agreement with the
Commission to establish procedures to ensure that the enforcement actions of
the 2 agencies are appropriately coordinated.</text>
</clause><clause id="HF163959FCB9B49C4A4E7B4D17481DFF0"><enum>(ii)</enum><header>Scope of
negotiated agreement</header><text>The terms of any agreement negotiated
pursuant to clause (i) may modify or supersede the provisions of subparagraphs
(A), (B), and (C).</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H144730EC6D184E16AD257D322DD59DD0"><enum>(3)</enum><header>Coordination
with other federal agency</header>
<subparagraph id="H86E9CABCEDAF4C89A8257F752026035D"><enum>(A)</enum><header>Referral</header><text display-inline="yes-display-inline">Any Federal agency (other than the Federal
Trade Commission) that is authorized to enforce a Federal law described in
paragraph (1) may recommend in writing to the Director that the Agency initiate
an enforcement proceeding to the extent the Agency is authorized by that
Federal law or by this title. The recommendation shall be accompanied by a
written explanation of the concerns giving rise to the recommendation.</text>
</subparagraph><subparagraph id="HF49C3D78C42A46D8A8659F80176144F5"><enum>(B)</enum><header>Backstop
enforcement authority of other federal agency</header><text>If the Agency does
not, before the end of the 120-day period beginning on the date on which the
Director receives a recommendation under subparagraph (A), initiate an
enforcement proceeding, the other agency referred to in subparagraph (A) may
initiate an enforcement proceeding as permitted by that Federal law.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H69B1956E32B24DE2819F5B4C97BF0B67"><enum>(4)</enum><header>Institutions
subject to special examination and enforcement procedures</header><text display-inline="yes-display-inline">This subsection shall not apply to
institutions subject to section 4203.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H629E5374AFD14933B92E59213202C27B"><enum>(f)</enum><header>Preservation of
other authority</header>
<paragraph id="HE78F234E1867485DA8E6D790DF6BB213"><enum>(1)</enum><header>Attorney
General</header><text display-inline="yes-display-inline">No provision of this
title shall be construed as affecting any authority of the Attorney
General.</text>
</paragraph><paragraph id="HB9C31D3B1C9240869837E15734B1B36F"><enum>(2)</enum><header>Secretary of the
Treasury</header><text display-inline="yes-display-inline">No provision of this
title shall be construed as affecting any authority of the Secretary of the
Treasury, including with respect to prescribing regulations, initiating
enforcement proceedings, or taking other actions with respect to a person
providing tax planning or tax preparation services.</text>
</paragraph><paragraph id="H94C031A045E04125BC71F3A1A5EC1B29"><enum>(3)</enum><header>Fair Housing
Act</header><text display-inline="yes-display-inline">No provision of this
title shall be construed as affecting any authority arising under the Fair
Housing Act.</text>
</paragraph></subsection><subsection id="HC894F4D1241F4B12BEB6B9344D9D23AC"><enum>(g)</enum><header>Effect on other
authority</header><text>No provision of this section or section 4203 shall be
construed as modifying or limiting the authority of any appropriate Federal
banking agency or the Director or Agency to interpret, or take enforcement
action under, any law or regulation the interpretation or enforcement of which
is committed to the banking agency or the Director or Agency, which shall
include, in the case of the Director and the Agency, this title, the enumerated
consumer laws, and the regulations prescribed under this title or such
laws.</text>
</subsection><subsection id="H0B7C2B9A3D754384A2F454BFC7656D12"><enum>(h)</enum><header>Preservation of
Federal Trade Commission authority</header><text display-inline="yes-display-inline">No provision of this title shall be
construed as modifying, limiting, or otherwise affecting the authority of the
Federal Trade Commission under the Federal Trade Commission Act or other laws
other than the enumerated consumer laws.</text>
</subsection></section><section id="HEEF3AC8FCD384906BCFDCC16CD4B4B56"><enum>4203.</enum><header>Examination
and enforcement for small banks, thrifts, and credit unions</header><text display-inline="yes-display-inline"></text>
<subsection id="H8C036BD196284183A83A26E102A2E29B"><enum>(a)</enum><header>Scope of
institutions subject to this section</header>
<paragraph id="H6554AD655D7E460C8B564908DFC2206F"><enum>(1)</enum><header>Institutions
covered</header><text>This section shall apply to—</text>
<subparagraph id="H0BE9EE651F284B44BFBC1735766887B0"><enum>(A)</enum><text>any insured
depository institution with total assets of $10,000,000,000 or less; or</text>
</subparagraph><subparagraph id="HEB5E89874A4A4031B0A728B5BFB292B1"><enum>(B)</enum><text>any insured credit
union with total assets of $1,500,000,000 or less.</text>
</subparagraph></paragraph><paragraph id="H62CCBF126CA743039CA2F58DABCF6225"><enum>(2)</enum><header>Appropriate
agency</header><text>For purposes of this title, the term <quote>appropriate
agency</quote> means—</text>
<subparagraph id="H3CC62627CC7E47619ECBF2832FF64C1C"><enum>(A)</enum><text>in the case of an
insured depository institution, the appropriate Federal banking agency as such
term is defined in section 3 of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="H8EC129F518124F1BB57345AE6DE521D5"><enum>(B)</enum><text>in the case of an
insured credit union, the National Credit Union Administration.</text>
</subparagraph></paragraph></subsection><subsection id="HC43A7ED85FBD40FE9A84FCCD6147AE8C"><enum>(b)</enum><header>Examinations</header>
<paragraph id="HFF4AEBB01F204E1FA27E375A884FAE99"><enum>(1)</enum><header>In
general</header><text>The appropriate agency shall on a periodic basis examine,
or require reports from, an institution referred to in subsection (a) for
purposes of ensuring compliance with the requirements of this title, the
enumerated consumer laws, and any regulation prescribed by the Director under
this title or pursuant to the authorities transferred under subtitles F and H,
and enforcing compliance with such requirements.</text>
</paragraph><paragraph id="HBE0406F24D984140B205D8750EE5E5DE"><enum>(2)</enum><header>Agency role in
examinations</header>
<subparagraph id="H50592EA252A0415E8BEC00C1FE6DB83A"><enum>(A)</enum><text>The appropriate
agency shall provide all reports, records, and documentation related to the
examination process to the Agency on a timely and ongoing basis.</text>
</subparagraph><subparagraph id="H768A318E5FBC499CA00AD214A50DC645"><enum>(B)</enum><text>The Director and
Agency may, at its discretion, include an examiner on any examination conducted
under paragraph (1). The appropriate agency shall involve such Agency examiner
in the entire examination process, including setting the scope of an
examination, participating in the examination, and providing input on the
examination report, matters requiring attention and examination ratings.</text>
</subparagraph></paragraph></subsection><subsection id="HF6EB5E55068F4C8D8F499AF691E3EDC5"><enum>(c)</enum><header>Enforcement</header>
<paragraph id="H684A8CDB7FDB4B8BBAEDBA1E7C0BF368"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this title other
than this subsection, the appropriate agency shall have primary authority to
enforce violations identified at institutions referred to in subsection (a) of
any of the requirements of this title, the enumerated consumers laws, and any
regulation prescribed by the Director under this title or pursuant to the
authorities transferred under subtitles F and H.</text>
</paragraph><paragraph id="HBB435557FBDF45FCB7AF6285F7BF47D5"><enum>(2)</enum><header>Coordination
with appropriate agency</header>
<subparagraph id="HF440A3A83A3045B1A25FAE5B8387E528"><enum>(A)</enum><header>Referral</header>
<clause id="HCC51801B3A354B7A8CEAF9C4735E5878"><enum>(i)</enum><header>In
general</header><text>The Agency may recommend in writing to the appropriate
agency that the appropriate agency initiate an enforcement proceeding to the
extent the appropriate agency is authorized by that Federal law or by this
title.</text>
</clause><clause id="HDC20E3E5CAEA490D8FE38935D0893EC3"><enum>(ii)</enum><header>Explanation</header><text>Any
recommendation under clause (i) shall be accompanied by a written explanation
of the concerns giving rise to the recommendation.</text>
</clause></subparagraph><subparagraph id="H9783B807F6CA41F6A3597E555ED106BF"><enum>(B)</enum><header>Backstop
enforcement authority of agency</header><text>If the appropriate agency does
not, before the end of the 120-day period beginning on the date on which the
appropriate agency receives a recommendation under subparagraph (A), initiate
an enforcement proceeding, the Agency may initiate an enforcement proceeding as
permitted by Federal law.</text>
</subparagraph></paragraph></subsection><subsection id="HE8B63AE6C5264FA6AFB60310EAE28FA8"><enum>(d)</enum><header>Actions arising
out of consumer complaint system</header><text>Notwithstanding any provision of
this section, if through the consumer complaint system administered by the
Agency under section 4105(c)(3), the Director has reasonable cause to believe
that an institution referred to in subsection (a) demonstrates noncompliance
with any provision of this title, the enumerated consumer laws, or any
regulation prescribed by the Director under this title or pursuant to the
authorities transferred under subtitles F and H, the Director may directly
investigate such institution for such noncompliance and take any action
permitted under subtitle E that the Director deems appropriate.</text>
</subsection><subsection id="HC4142BE8B83C474FB21B26F829CFC889"><enum>(e)</enum><header>Removal of
appropriate agency for particular institution</header>
<paragraph id="H8BE11B5D64D9456C833DBD44C5A91BC4"><enum>(1)</enum><header>Heightened
supervision</header><text display-inline="yes-display-inline">The
Director—</text>
<subparagraph id="H30E3D601CD3F4A0FB8928571786110B2"><enum>(A)</enum><text>may provide notice
to an appropriate agency that the Director is considering issuing a removal
order under paragraph (2); and</text>
</subparagraph><subparagraph id="H140D042B3B034E77AEE88C83EB58F0C2"><enum>(B)</enum><text>shall have an
Agency examiner participate in the examination process under subsection (b) for
at least 1 examination cycle.</text>
</subparagraph></paragraph><paragraph id="H275AC7FFC0A1447B991264EF5A7E28B8"><enum>(2)</enum><header>Removal by
order</header><text display-inline="yes-display-inline">If, after the
completion of at least 1 examination cycle following the provision of notice to
an appropriate agency under paragraph (1), the Director determines in writing
that the appropriate agency has failed to adequately conduct consumer
compliance examinations or bring appropriate enforcement actions against an
institution referred to in subsection (a), the Director may order the removal
of the appropriate agency from its responsibilities under this section for such
institution.</text>
</paragraph><paragraph id="H22708CBE41FF4059A7DC0F4B74F40B09"><enum>(3)</enum><header>Agency authority
upon removal</header><text>Upon removal pursuant to paragraph (2), the Agency
shall examine and enforce against such institution as if the institution were
subject to section 4202.</text>
</paragraph><paragraph id="H38FB3B80B8284CE69FC657DC1518CAF4"><enum>(4)</enum><header>Effective
date</header><text display-inline="yes-display-inline">An order under paragraph
(2) shall take effect 30 days after a determination by the Secretary of the
Treasury pursuant to paragraphs (5) and (6).</text>
</paragraph><paragraph id="H26E098E4827041FEAA71FE1F50392B93"><enum>(5)</enum><header>Automatic
appeal</header><text>An order issued by the Director pursuant to paragraph (2)
shall be automatically appealed to the Secretary.</text>
</paragraph><paragraph id="H6FDAAE18B8E644239DED5797C9EB2CA7"><enum>(6)</enum><header>Decision by the
Secretary of the Treasury</header>
<subparagraph id="HE754BEA62F9B4A61AEE2F2BDC959A66E"><enum>(A)</enum><header>Determination</header><text display-inline="yes-display-inline">The order issued pursuant to paragraph (2)
shall be deemed affirmed unless the Secretary of the Treasury denies the
determination of the Director within 120 days of the issuance of the order
pursuant to paragraph (2).</text>
</subparagraph><subparagraph id="H5DD124D45B294A479BA6BC9A763E2ED4"><enum>(B)</enum><header>Rule of
construction</header><text>Nothing in subparagraph (A) shall be construed as
prohibiting the Secretary of the Treasury from making a determination to either
affirm or deny an order issued pursuant to paragraph (2) prior to the passage
of the time period in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H803EFE2A99F9469A9EB878E5F2B4E2F3"><enum>(7)</enum><header>Regulations</header><text display-inline="yes-display-inline">By the transfer date, the Secretary shall
issue regulations that establish the standards the Director shall apply in
making a determination to remove an appropriate agency and the process,
procedures, and standards for an appeal. Such standards shall require the
Director to consider at least the following in issuing an order removing an
appropriate agency for an institution referred to in subsection (a)(1):</text>
<subparagraph id="HD3DE1AFC3FC44749BFC72AB73E12C0AC"><enum>(A)</enum><text>Reports of
examination of such institution.</text>
</subparagraph><subparagraph id="H8CBE66865A5342BF94B94F224EBC3D02"><enum>(B)</enum><text>Any enforcement
actions taken by an appropriate agency against such institution and the results
of those actions.</text>
</subparagraph><subparagraph id="H62AFE6D02BCF4EB58B93639853F115AD"><enum>(C)</enum><text>Consumer
complaints issued against such institution.</text>
</subparagraph><subparagraph id="H851B1E98EBF7455D9416C8EEFC87D024"><enum>(D)</enum><text>Actions taken by
State attorneys general and private rights of action against such
institution.</text>
</subparagraph></paragraph></subsection><subsection id="H5D73BA4906A54EB4AE4B63E4DD792E6F"><enum>(f)</enum><header>Policies and
procedures</header><text>Within 180 days after the designated transfer date,
the Agency and the appropriate agency shall develop policies and procedures for
implementing this section.</text>
</subsection><subsection id="H98280F6ED97749C7A4C62E069578DB31"><enum>(g)</enum><header>Assessments</header>
<paragraph id="HC422043DCF5045A0B6718CB33419F3CB"><enum>(1)</enum><header>Limitation on
certain fees</header><text>The Agency shall not assess examination fees on an
institution referred to in subsection (a).</text>
</paragraph><paragraph id="H300464C5E87145669CE2F52BB25F7D34"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this section shall be construed as
preventing the appropriate agency from assessing fees on an institution
referred to in paragraph (1) to meet the appropriate agency’s expenses for
carrying out such examination and supervision responsibilities pursuant to this
section.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HA2FA653F7DEB4C868C586E3FBE4FA685" section-type="subsequent-section"><enum>4204.</enum><header>Simultaneous and
coordinated supervisory action</header>
<subsection id="H19C3E7EF60C04B0994EC7560A655164D"><enum>(a)</enum><header>Examinations</header><text display-inline="yes-display-inline">A Federal banking agency and the Agency
shall, with respect to each insured depository institution, credit union, or
other covered person supervised by the Federal banking agency and the Agency,
respectively—</text>
<paragraph id="HDA00FFCCBC4A4861A04F2C243B8B99B7"><enum>(1)</enum><text>coordinate the
scheduling of examinations of the insured depository institution, and credit
union, or other covered person;</text>
</paragraph><paragraph id="H261024994B1E45BD90F218C61CC7BA6D"><enum>(2)</enum><text display-inline="yes-display-inline">conduct simultaneous examinations of each
insured depository institution, credit union or other covered person, unless
such institution requests examinations to be conducted separately;</text>
</paragraph><paragraph id="H7BD2BB8C0E154DEF93589C9877E909DB"><enum>(3)</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>
</paragraph><paragraph id="HDA7E5F18626347CABDC6D165CD8F675A"><enum>(4)</enum><text>prior to issuing a
final report of examination or taking supervisory action, an agency shall take
into consideration concerns, if any, raised in the comments made by the other
agency.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H4FE9EA50271D4D4F99D6DFDD0CA0C430"><enum>(b)</enum><header>Coordination
with State bank supervisors</header><text>The Agency shall pursue arrangements
and agreements with State bank supervisors to coordinate examinations
consistent with subsection (a).</text>
</subsection><subsection id="H747B5F04033341C7A9B96ADB393976B8"><enum>(c)</enum><header>Resolution of
conflict in supervision</header>
<paragraph id="HA8D28A13DE8240FCA7A80966D492F1A8"><enum>(1)</enum><header>Request of
depository institution</header>
<subparagraph id="HBE808E105D624D2CAAA350148B02C213"><enum>(A)</enum><header>In
general</header><text>If the proposed material supervisory determinations of
the Agency and a Federal banking agency are conflicting, an insured depository
institution, credit union, or other covered person may request the agencies to
coordinate and present a joint statement of coordinated supervisory
action.</text>
</subparagraph><subparagraph id="H38BF0834A37F4389B1787CE0D5C2D2A3"><enum>(B)</enum><header>Limitation</header><text>A
request of an insured depository institution, credit union, or other covered
person shall not be used to appeal a supervisory rating or determination by the
Agency or a Federal banking agency.</text>
</subparagraph></paragraph><paragraph id="HA493623F1EF248618374711CD98A2522"><enum>(2)</enum><header>Joint
statement</header><text display-inline="yes-display-inline">The agencies
receiving a request from an insured depository institution, credit union, or
covered person under paragraph (1) shall provide a joint statement resolving
the conflict under such subparagraph before the end of the 30-day period
beginning on the date the agencies receive such request.</text>
</paragraph></subsection><subsection id="H37BA8B3196E74744AF60A43A856A0722"><enum>(d)</enum><header>Appeals to
governing panel</header>
<paragraph id="H13C84DEA773C434D82293E4A7EEA17A2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the agencies
receiving a request from an insured depository institution, credit union, or
covered person under subsection (c)(1) do not issue a joint statement under
subsection (c)(2), or if either agency takes or attempts to take any
supervisory action relating to the request for the joint statement without the
consent of the other agency, the insured depository institution, credit union,
or other covered person may institute an appeal to a governing panel under this
subsection.</text>
</paragraph><paragraph id="H23D2AAF556BF4B77B3DDC8E40493C004"><enum>(2)</enum><header>Timetable</header><text>Any
appeal under paragraph (1) with regard to a failure of agencies to issue a
joint statement shall be filed before the end of the 30-day period beginning at
the end of the 30-day period during which such joint statement was due under
subsection (c)(2).</text>
</paragraph></subsection><subsection id="H8A85C5303C7544568E44C0B43A45021F"><enum>(e)</enum><header>Composition of
governing panel</header><text>The governing panel for an appeal under this
section shall be composed of—</text>
<paragraph id="HE5590596D0A34CE69829E9A1BD2F4095"><enum>(1)</enum><text>2
individuals—</text>
<subparagraph id="HD46B2E16AAB84935AAEA53BF913625EB"><enum>(A)</enum><text>1 of whom is a
representative from the Agency;</text>
</subparagraph><subparagraph id="H596B70A4FFCE4F0A93321214AC18E2BA"><enum>(B)</enum><text>1 of whom is a
representative of the Federal banking agency which received the request to
which the appeal relates; and</text>
</subparagraph><subparagraph id="H62C6D14CA32746748FFB76F679B93C5A"><enum>(C)</enum><text>neither of
whom—</text>
<clause id="H5A7C6DFD02964A46B965B16B86C67303"><enum>(i)</enum><text>have
participated in the material supervisory determinations under appeal;
and</text>
</clause><clause id="HD0DC2EEB09974A15B7007E5A20D4E828"><enum>(ii)</enum><text display-inline="yes-display-inline">report directly or indirectly to the
individual who made the supervisory determinations under appeal; and</text>
</clause></subparagraph></paragraph><paragraph id="H40E355D66A6C4131A1C5C140256E486D"><enum>(2)</enum><text>1
individual who is a representative from—</text>
<subparagraph id="H16B966CBC4B542B0A7C8D61230B85CAB"><enum>(A)</enum><text>the Federal
banking agency that heads the Financial Institution Examination Council;
or</text>
</subparagraph><subparagraph id="HAF8605FF83C64E039E5E3D5D32A3238D"><enum>(B)</enum><text display-inline="yes-display-inline">if the Financial Institutions Examination
Council is headed by a Federal banking agency that is a party to the appeal,
the Federal banking agency that is next scheduled to head the Financial
Institutions Examination Council.</text>
</subparagraph></paragraph></subsection><subsection id="H8A2747AD51384577B5005CA5AFE31F1A"><enum>(f)</enum><header>Conduct of
appeal</header>
<paragraph id="HA545890D96964C52B2E46E29F2B33AB5"><enum>(1)</enum><header>Content of
filing appeal</header><text>The insured depository institution, credit union,
or other covered person which institutes an appeal under subsection (d)(1)
shall include in the filing of such appeal all the facts and legal arguments
pertaining to the matter appealed.</text>
</paragraph><paragraph id="H4AD77414C7694724BC2B80951AF45F2A"><enum>(2)</enum><header>Appearance</header><text display-inline="yes-display-inline">The insured depository institution, credit
union, or other covered person which institutes an appeal under this section
may appear before the governing panel in person or by telephone, through
counsel, employees, or representatives of, or for, such institution, credit
union, or other covered person.</text>
</paragraph><paragraph id="HC89667E1E2FF4019A3049ACE4AD74580"><enum>(3)</enum><header>Requests for
additional information</header><text>Any governing panel convened under this
section may request the insured depository institution, credit union, or other
covered person, the Agency, or the Federal banking agency to produce additional
information relevant to the appeal.</text>
</paragraph><paragraph id="H37765AB657334EFFAB700D8F3B36E856"><enum>(4)</enum><header>Final written
determinations </header><text display-inline="yes-display-inline">Any governing
panel convened under this section, by a majority vote of the members of the
panel, shall provide a final determination, in writing, within 30 days of the
filing of an informationally complete appeal, or such longer period as the
panel and the insured depository institution, credit union, or other covered
person may jointly agree.</text>
</paragraph><paragraph id="H2557A4C61F4B4821B8D657E8605440F0"><enum>(5)</enum><header>Public
information</header><text>A redacted copy of any determination by a governing
panel convened under this section shall be made public upon the issuance of
such determination.</text>
</paragraph></subsection><subsection id="H0D47BCCFF8B240D6960510385E396EF7"><enum>(g)</enum><header>Prohibition
against retaliation</header><text>The Director and the Federal banking agencies
shall prescribe regulations to provide safeguards from retaliation against any
insured depository institution, credit union, or other covered person which
institutes an appeal under this section, as well as against any officer or and
employee of any such institution, credit union, or other person.</text>
</subsection><subsection id="HA52E92E61F834013BE5A848766DD560D"><enum>(h)</enum><header>Material
supervisory determination defined</header><text>For purposes of this section,
the term <quote>material supervisory determination</quote>—</text>
<paragraph id="H77F9D16434A240498EF9EC5ED2B4783F"><enum>(1)</enum><text>includes any
action relating to any supervision or examinations; and</text>
</paragraph><paragraph id="HC11DDE3D22994535B14088F5202E1375"><enum>(2)</enum><text>does not
include—</text>
<subparagraph id="HEE04A0EF2FE949B38D99DA10D48C6FDF"><enum>(A)</enum><text>a determination by
any Federal banking agency 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 or section 212 of the Federal Credit Union Act,
as the case may be; or</text>
</subparagraph><subparagraph id="H399C98F282614B1B87889530960AD1D0"><enum>(B)</enum><text display-inline="yes-display-inline">any regulation or guidance, or order of
general applicability.</text>
</subparagraph></paragraph></subsection></section><section id="H1A0BE4637B394E2CB14EB50CE7ECBEC1"><enum>4205.</enum><header>Limitations on
authority of agency and director</header>
<subsection display-inline="no-display-inline" id="H2A30C895C0794D729668636288130782"><enum>(a)</enum><header> Exclusion for
merchants, retailers, and sellers of nonfinancial services</header>
<paragraph id="HB1B7F7B539144CE58DD030D2A6540670"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
provision of this title (other than paragraph (4)) and subject to paragraph
(2), the Director and the Agency may not exercise any rulemaking, supervisory,
enforcement or other authority, including authority to order assessments, under
this title with respect to—</text>
<subparagraph id="HABA970EEA84D48148F88219119105F20"><enum>(A)</enum><text display-inline="yes-display-inline">credit extended directly by a merchant,
retailer, or seller of nonfinancial services to a consumer, in a case in which
the good or service being provided is not itself a consumer financial product
or service, exclusively for the purpose of enabling that consumer to purchase
goods or services directly from the merchant, retailer, or seller of
nonfinancial services; or</text>
</subparagraph><subparagraph id="H0FABD0C827F44AC2B4396DC5E6980E61"><enum>(B)</enum><text display-inline="yes-display-inline">collection of debt, directly by the
merchant, retailer, or seller of nonfinancial services, arising from such
credit extended.</text>
</subparagraph></paragraph><paragraph id="H3BC1BB066223447EB3F8D80770E901DB"><enum>(2)</enum><header>Exception for
existing authority</header><text>The Director may exercise any rulemaking
authority regarding an extension of credit described in paragraph (1)(A) or the
collection of debt arising from such extension, as may be authorized by the
enumerated consumer laws or any law or authority transferred under subtitle F
or H.</text>
</paragraph><paragraph id="H1BACB86E8D2F47E78544426587D5D18D"><enum>(3)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">No provision of
this title shall be construed as modifying, limiting, or superseding the
authority of the Federal Trade Commission or any other agency with respect to
credit extended, or the collection of debt arising from such extension,
directly by a merchant, retailer, or seller of nonfinancial services to a
consumer exclusively for the purpose of enabling that consumer to purchase
goods or services directly from the merchant, retailer, or seller of
nonfinancial services.</text>
</paragraph><paragraph id="HBDEC145FFAB244648AE7FC506E5FE3F0"><enum>(4)</enum><header>Exclusion not
applicable to certain credit transactions</header><text>Paragraph (1) shall not
apply to—</text>
<subparagraph id="HBAD55E6BF963461BA978259B701A85EF"><enum>(A)</enum><text>any credit
transaction, including the collection of the debt arising from such extension,
in which the merchant, retailer, or seller of nonfinancial services assigns,
sells, or otherwise conveys such debt owed by the consumer to another person;
or</text>
</subparagraph><subparagraph id="H0AB38F771B7041DA9C230533EB1E78F3"><enum>(B)</enum><text>any credit
transaction—</text>
<clause id="HD5F4C277CE324129885DADE1A6D1C82F"><enum>(i)</enum><text>in
which the credit provided significantly exceeds the market value of the product
or service provided, and</text>
</clause><clause id="H9A871580D8114E1A95F4A9DDD7A4C489"><enum>(ii)</enum><text>with respect to
which the Director finds that the sale of the product or service is done as a
subterfuge so as to evade or circumvent the provisions of this title.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HDC02DE3055BC498794C71689740B00C5"><enum>(b)</enum><header>Exclusion for
persons regulated by the securities and exchange commission</header>
<paragraph id="H0B5DA69A036F4B9A860C55761AB321D7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No provision of this
title shall be construed as altering, amending, or affecting the authority of
the Securities and Exchange Commission or 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 the Securities and Exchange Commission or any securities
commission (or any agency or office performing like functions) of any State.
The Director and Agency shall have no authority to exercise any power to
enforce this title with respect to a person regulated by the Securities and
Exchange Commission or any securities commission (or any agency or office
performing like functions) of any State.</text>
</paragraph><paragraph id="H9B68436B8B7B44C39F6E524CBA8E9F03"><enum>(2)</enum><header>Consultation and
coordination</header><text>Notwithstanding paragraph (1), the Securities and
Exchange Commission shall consult and coordinate with the Director 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 Agency under this title or under any other
law.</text>
</paragraph></subsection><subsection id="H002B2A7B3F45407AA8E0AA68D297AABE"><enum>(c)</enum><header>Exclusion for
persons regulated by the commodity futures trading commission</header>
<paragraph id="HBAE4AB21AE1240CFA73BF8EE417CCDCB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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 Director and the Agency 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="HCF4D7C4663114AE8AD03F992ED937A33"><enum>(2)</enum><header>Consultation and
coordination</header><text>Notwithstanding paragraph (1), the Commodity Futures
Trading Commission shall consult and coordinate with the Director 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 Agency under this title or under any other law.</text>
</paragraph></subsection><subsection id="HF4A39981A3EB4EB0B2A2DF84DED0C8AE"><enum>(d)</enum><header>Exclusion for
persons regulated by a State insurance regulator</header>
<paragraph id="HF26DA0A9A74348E1AEB87EC7F2E249C5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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 any State
insurance regulator. Except as provided in paragraphs (2) and (3), the Agency
shall have no authority to exercise any power to enforce this title with
respect to a person regulated by any State insurance regulator.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H52F404A4BFA64F4FBBAB1FB34DFEEA46"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) shall not apply to any person described
in such paragraph to the extent such person is engaged in any financial
activity described in any subparagraph of section 4002(19) or is otherwise
subject to any of the enumerated consumer laws or the authorities transferred
under subtitle F or H.</text>
</paragraph><paragraph id="H41D54552CBF742A29AAD40FB66E2FDE6"><enum>(3)</enum><header>Preservation of
certain authorities</header><text display-inline="yes-display-inline">Nothing
in this title shall be construed as limiting the authority of the Director and
the Agency from exercising powers under this title with respect to the
provision by a covered person of a product or service, not otherwise subject to
this title, for or on behalf of a person regulated by a State insurance
regulator, in connection with a financial activity.</text>
</paragraph></subsection><subsection id="HA28AD330F8234743B3FA68A942FF0E38"><enum>(e)</enum><header>Exclusion for
persons regulated by the Federal Housing Finance Agency</header><text display-inline="yes-display-inline">No provision of this title shall be
construed as altering, amending, or affecting the authority of the Federal
Housing Finance Agency to adopt rules, initiate enforcement proceedings, or
take any other action with respect to a person regulated by the Federal Housing
Finance Agency. The Director and Agency shall have no authority to exercise any
power to enforce this title with respect to a person regulated by the Federal
Housing Agency. For purposes of this subsection, the term <quote>person
regulated by the Federal Housing Finance Agency</quote> means any Federal home
loan bank, and any joint office of 1 or more Federal home loan banks.</text>
</subsection><subsection id="H44B3F7EF97644364BE5D9282C5CED44F"><enum>(f)</enum><header>Exclusion for
qualified retirement or eligible deferred compensation plans and
arrangements</header>
<paragraph id="H1BF182EE103F4BFA83FCFA7A12D51F59"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HD3720CDF6E844C9C9BBBB0F690E9E3CF"><enum>(A)</enum><text>any retirement or
eligible deferred compensation plan or arrangement qualified under or meeting
the requirements of section 401(a), 403(a), 403(b), 457(b), 408 or 408A of the
Internal Revenue Code; or</text>
</subparagraph><subparagraph id="H11626C7685D54C4391F5D842DBFC7F45"><enum>(B)</enum><text>any educational
savings arrangement under section 529 of such Code.</text>
</subparagraph></paragraph><paragraph id="HA420A95459A2466B878EDD46BA12EE3D"><enum>(2)</enum><header>Limitation on
agency authority</header>
<subparagraph id="H36F375BDC97C45969808F232A815FC06"><enum>(A)</enum><header>In
general</header><text>The Director and the Agency may not exercise any power to
enforce this title with respect to services provided directly (or indirectly if
the services relate to the operation of such plan or arrangement) to—</text>
<clause id="H0A5EDE0F07FE4264AAE965D050061021"><enum>(i)</enum><text>any
retirement or eligible deferred compensation plan or arrangement qualified
under or meeting the requirements of section 401(a), 403(a), 403(b), 457(b),
408, or 408A of the Internal Revenue Code; or</text>
</clause><clause id="H9267DE6CBE9B4E92A4F08200659E958D"><enum>(ii)</enum><text>any
educational savings arrangement under section 529 of such Code.</text>
</clause></subparagraph><subparagraph id="HA8FAAD6AAA414D28802711B4BCEE50DA"><enum>(B)</enum><header>Services
defined</header><text>For purposes subparagraph (A), the term
<quote>services</quote> shall include, for example, services for custody and
investment of assets, administration, compliance, and participant
assistance.</text>
</subparagraph></paragraph></subsection><subsection id="H7F382C4C67494B479B73D617D396A10F"><enum>(g)</enum><header>Exclusion for
accountants, tax preparers, and attorneys</header>
<paragraph id="HA10FF6F90C5A4B5B992B221A85F9B56A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as permitted
in paragraph (2), the Director and the Agency may not exercise any rulemaking,
supervisory, enforcement or other authority, including authority to order
assessments, over—</text>
<subparagraph id="H7ABF7F772E814FB6B29D9D9C45EC4A64"><enum>(A)</enum><text display-inline="yes-display-inline">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
customary and usual accounting activities, including the provision of
accounting, tax, advisory, other services that are subject to the regulatory
authority of a state board of accountancy or a federal authority, or other
services that are incidental to such customary and usual accounting activities,
to the extent that such incidental services are not offered or provided by the
person separate and apart from such customary and usual accounting activities
and are not offered or provided to consumers who are not receiving such
customary and usual accounting activities;</text>
</subparagraph><subparagraph id="H74B69C0A045F4576A674A9B8730AAEA9"><enum>(B)</enum><text>any person other
than a person described in subparagraph (A) that performs income tax
preparation activities for consumers; or</text>
</subparagraph><subparagraph id="HB16B88CC2C884E6B813D8108E43264F9"><enum>(C)</enum><text display-inline="yes-display-inline">any individual who is providing legal
advice or services for which a license to practice law is required under the
law of the State in which the advice or services are provided and which are
performed within the scope of an attorney-client relationship established by an
agreement, but only to the extent of such legal advice or services.</text>
</subparagraph></paragraph><paragraph id="H8BB47F9FCCA44316926E1659FA940A9B"><enum>(2)</enum><header>No exclusion
with respect to registration of most attorneys</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), this
subsection shall not apply to any authority granted to the Director or the
Agency under section 4209 with respect to a licensed attorney, except to the
extent a licensed attorney is solely providing legal services in connection
with—</text>
<subparagraph id="H413F2E5384BD45FEB1181D7B0BD5C716"><enum>(A)</enum><text>the preparation
and filing of a bankruptcy petition; or</text>
</subparagraph><subparagraph id="HF93D2C8CAB314F968C396287B99EF623"><enum>(B)</enum><text>court proceedings
to avoid a foreclosure.</text>
</subparagraph></paragraph><paragraph id="H6232997FCFA148968F68DC1E3A85DE1D"><enum>(3)</enum><header>Description of
activities</header><text display-inline="yes-display-inline">Paragraph (1)
shall not apply to—</text>
<subparagraph id="H3251ECF3F43B4A3CA361523B09C3ED76"><enum>(A)</enum><text>any person
described in paragraph (1)(A) to the extent 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 a financial activity
described in any subparagraph of section 4002(19);</text>
</subparagraph><subparagraph id="H170DCF38B3D7482DABD96CCE489E5FC8"><enum>(B)</enum><text>any person
described in paragraph (1)(B) or (1)(C) to the extent such person is engaged in
any activity which is a financial activity described in any subparagraph of
section 4002(19); or</text>
</subparagraph><subparagraph id="H7EEDD992B0894AE0B9309A390F1ECC3B"><enum>(C)</enum><text>any person
described in paragraph (1)(A), (1)(B) or (1)(C) that is otherwise subject to
any of the enumerated consumer laws or the authorities transferred under
subtitle F or H.</text>
</subparagraph></paragraph></subsection><subsection id="H7CB5465E80E146F8B3C45A26FED1BDBB"><enum>(h)</enum><header>Exclusion for
real estate licensees</header>
<paragraph id="H3C4D37EED23D4CDAB24AE3AA9CE7AC17"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as permitted
in paragraph (2), the Director and the Agency may not exercise any rulemaking,
supervisory, enforcement or other authority, including authority to order
assessments, over a person that is licensed or registered as a real estate
broker, real estate agent, in accordance with State law, but only to the extent
that such person—</text>
<subparagraph id="H532CC2D5029345C7A0018FDDEC3C4435"><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="H26A06B5DC2534B4F8A461A5D09AECD6B"><enum>(B)</enum><text>brings together
parties interested in the sale, purchase, lease, rental, or exchange of real
property;</text>
</subparagraph><subparagraph id="H3FE8BF28F7EA4EB1AB4FB8BC255753E9"><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
providing financing with respect to any such transaction);</text>
</subparagraph><subparagraph id="H409A449C819B4EE78722B66627434C14"><enum>(D)</enum><text>engages in any
activity for which a person engaged in the activity is required to be
registered or licensed as a real estate agent or real estate broker under any
applicable law; or</text>
</subparagraph><subparagraph id="HDDB4593F029D4EFD86D766618D7ACB52"><enum>(E)</enum><text>offers to engage
in any activity, or act in any capacity, described in subparagraph (A), (B),
(C), or (D).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H9710312D9AB144FE9AE28A96DC67DDAD"><enum>(2)</enum><header>Description of
activities</header><text display-inline="yes-display-inline">Paragraph (1)
shall not apply to any person described in such paragraph to the extent such
person is engaged in any financial activity described in any subparagraph of
section 4002(19) or is otherwise subject to any of the enumerated consumer laws
or the authorities transferred under subtitle F or H.</text>
</paragraph></subsection><subsection id="HC5BF63E45C3549CAA7C8DCF46C4DC48B"><enum>(i)</enum><header>Exclusion for
auto dealers</header>
<paragraph id="H37E52E1D1044419AA20F1FF51428B338"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director and the
Agency may not exercise any rulemaking, supervisory, enforcement or any other
authority, including authority to order assessments, over—</text>
<subparagraph id="H55B5AD3D0BE84716BF672BE8F2048EB9"><enum>(A)</enum><text display-inline="yes-display-inline">a motor vehicle dealer that is primarily
engaged in the sale and servicing of motor vehicles, the leasing and servicing
of motor vehicles, or both; or</text>
</subparagraph><subparagraph id="H538C04C3CA9B460E8460221F2536C5C7"><enum>(B)</enum><text display-inline="yes-display-inline">a person that—</text>
<clause id="H2A658A339DDB46F8B087B94BEBAE35D1"><enum>(i)</enum><text display-inline="yes-display-inline">is controlled by, or is under common
control with, one or more motor vehicle dealers; and</text>
</clause><clause id="H5CCCDB0082274637916E4814807163C5"><enum>(ii)</enum><text display-inline="yes-display-inline">primarily engages in the extension of, or
arranging for the extension of, retail credit or retail leases involving motor
vehicles, where 90 percent of such extension, or arranging for such extension,
is made with respect to customers of one or more motor vehicle dealers that
control such person or with which such person is under common control.</text>
</clause></subparagraph></paragraph><paragraph id="HC26AB44CC02E4393BB07927CD13409E6"><enum>(2)</enum><header>Certain
functions excepted</header><text display-inline="yes-display-inline">The
provisions of paragraph (1) shall not apply to any person to the extent that
person—</text>
<subparagraph id="H5C0C609BA3FD4F0DA4A762ED375F71E4"><enum>(A)</enum><text display-inline="yes-display-inline">provides consumers with any services
related to residential mortgages; or</text>
</subparagraph><subparagraph id="HED3F27F0DFF14E0A9E56A527C265B305"><enum>(B)</enum><text display-inline="yes-display-inline">operates a line of business that involves
the extension of retail credit or retail leases involving motor vehicles, and
in which—</text>
<clause id="HDBFDC666D19544D8ABA88F4E072531AC"><enum>(i)</enum><text display-inline="yes-display-inline">the extension of retail credit or retail
leases is routinely provided directly to consumers; and</text>
</clause><clause id="H94B4B91ECFE74406A625726A3460E51E"><enum>(ii)</enum><text display-inline="yes-display-inline">the contract governing such extension of
retail credit or retail leases is not routinely assigned to a third party
finance or leasing source.</text>
</clause></subparagraph></paragraph><paragraph id="HC5857F62970D48C9A99549E94E5C25DA"><enum>(3)</enum><header>No impact on
prior authority</header><text display-inline="yes-display-inline">Nothing in
this subsection shall be construed to modify, limit, or supersede the
rulemaking or enforcement authority over motor vehicle dealers that could be
exercised by any Federal department or agency on the day prior to the enactment
of this title.</text>
</paragraph><paragraph id="HEA6DF297860E4D2081C5018C22FC99E7"><enum>(4)</enum><header>No transfer of
certain authority</header><text display-inline="yes-display-inline">Notwithstanding subtitle F or any other
provision of law under this title, the consumer financial protection functions
of the Board of Governors and the Federal Trade Commission shall not be
transferred to the Director or the Agency to the extent such functions are with
respect to a person described under paragraph (1).</text>
</paragraph><paragraph id="H5D5BFC33731A4712A9DBF1E3442072A6"><enum>(5)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph id="HAB15009CC7574C32A395D7F396E9C306"><enum>(A)</enum><header>Motor
vehicle</header><text display-inline="yes-display-inline">The term <quote>motor
vehicle</quote> means any self-propelled vehicle designed for transporting
persons or property on a street, highway, or other road.</text>
</subparagraph><subparagraph id="HB0FC48EB287840CDBAE76BD34A04CBEB"><enum>(B)</enum><header>Motor vehicle
dealer</header><text display-inline="yes-display-inline">The term <quote>motor
vehicle dealer</quote> means any person resident in the United States or any
territory of the United States, and licensed by a State, a territory of the
United States, or the District of Columbia to engage in the sale of motor
vehicles.</text>
</subparagraph></paragraph></subsection><subsection id="HD6DB6346FCC24ADF84AF3A7429F8CFA6"><enum>(j)</enum><header>No authority to
impose usury limit</header><text display-inline="yes-display-inline">No
provision of this title shall be construed as conferring authority on the
Director or the Agency 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="H056E70F7129E421C9F6EE68CC2FCBDFA"><enum>(k)</enum><header>Exclusion for
manufactured home retailers and modular home retailers</header>
<paragraph id="H23BE29DD3BFD40C7BCA54929049B7E31"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director and the
Agency may not exercise any rulemaking, supervisory, enforcement or other
authority, including authority to order assessments, over a person to the
extent such person—</text>
<subparagraph id="HA323B9BB117B4E89863FDDCF990AF919"><enum>(A)</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>
</subparagraph><subparagraph id="H889E6126FD7347589A323F61F9C18C48"><enum>(B)</enum><text>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>
</subparagraph><subparagraph id="H3665691C991440C2935CD3035EEB7A4E"><enum>(C)</enum><text>offers to engage
in any activity described in subparagraphs (A) or (B).</text>
</subparagraph></paragraph><paragraph id="H960F479D0FBA4EF4A7F05A64AD9B8B28"><enum>(2)</enum><header>Description of
activities</header><text>Paragraph (1) shall not apply to any person described
in such paragraph to the extent such person is engaged in any financial
activity described in any subparagraph of section 4002(19) or is otherwise
subject to any of the enumerated consumer laws or the authorities transferred
under subtitle F or H.</text>
</paragraph><paragraph id="HFEADA82CB1EC42759CD8D3C10D322291"><enum>(3)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection:</text>
<subparagraph id="HDB18DA97D32F46E4A4F331E458D8AF29"><enum>(A)</enum><header>Manufactured
home</header><text>The term <quote>manufactured home</quote> has the meaning
given such term in section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).</text>
</subparagraph><subparagraph id="HB2D2F9803475452794DC8AB24CB32D4E"><enum>(B)</enum><header>Modular
home</header><text>The term <quote>modular home</quote> means a house built in
a factory in two 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></section><section id="HA953C7660E7B4FA2962DDD0423E50C8D"><enum>4206.</enum><header>Collection of
information; confidentiality regulations</header>
<subsection id="HF0206F9F4C9F4AA1B7F751C6B37B0644"><enum>(a)</enum><header>Collection of
information</header>
<paragraph id="H82E84AB5F37D491AB9BC34ED63C0ED61"><enum>(1)</enum><header>In
general</header><text>In conducting research on the provision of consumer
financial products or services, the Director shall have the power to gather
information from time to time regarding the organization, business conduct, and
practices of covered persons or service providers.</text>
</paragraph><paragraph id="HB2A84EC4532042EF9E9B2453763ABAED"><enum>(2)</enum><header>Specific
authority</header><text>In order to gather such information, the Director shall
have the power—</text>
<subparagraph id="HD208FF0BB006455C87F2FD4FFE420CAE"><enum>(A)</enum><text>to gather and
compile information;</text>
</subparagraph><subparagraph id="H2A04C990AB114ED5BBBB0397EBD6667E"><enum>(B)</enum><text>to require persons
to file with the Agency, in such form and within such reasonable period of time
as the Director may prescribe, by regulation or order, annual or special
reports, or answers in writing to specific questions, furnishing information
the Director may require; and</text>
</subparagraph><subparagraph id="H4005913CA3BC48A9B7DDA3BC5EBC386F"><enum>(C)</enum><text>to make public
such information obtained by it under this section as is in the public interest
in reports or otherwise in the manner best suited for public information and
use.</text>
</subparagraph></paragraph></subsection><subsection id="H26DE66B3617F49B682363D27FAD928A7"><enum>(b)</enum><header>Confidentiality
regulations</header><text>The Director shall prescribe regulations regarding
the confidential treatment of information obtained from persons in connection
with the exercise of any authority of the Agency or Director under this title
and the enumerated consumer laws and the authorities transferred under
subtitles F and H.</text>
</subsection><subsection id="H139C39C117314F4C9693E33F611515EB"><enum>(c)</enum><header>Privacy
considerations</header><text display-inline="yes-display-inline">In collecting
information from any person, publicly releasing information held by the Agency,
or requiring covered persons to publicly report information, the Director and
the Agency shall take steps to ensure that proprietary, personal or
confidential consumer information that are protected from public disclosure
under section 552(b) or 552a of title 5, United States Code, or any other
provision of law are not made public under this title.</text>
</subsection></section><section id="H93A0AB709048461FA42BA4BD3B6DE59A"><enum>4207.</enum><header>Monitoring;
assessments of significant regulations; reports</header>
<subsection id="HEE2DF4A64353442392EE9B30B9393BDD"><enum>(a)</enum><header>Monitoring</header>
<paragraph id="HB7F460D5E34747608D804727528AB02E"><enum>(1)</enum><header>In
general</header><text>The Agency shall monitor for risks to consumers in the
provision of consumer financial products or services, including developments in
markets for such products or services.</text>
</paragraph><paragraph id="HEEBCA4DB2BAA47EBBEB6EFA69463A07D"><enum>(2)</enum><header>Means of
monitoring</header><text>Such monitoring may be conducted by examinations of
covered persons or service providers, analysis of reports obtained from covered
persons or service providers, assessment of consumer complaints, surveys and
interviews of covered persons, service providers, and consumers, and review of
available databases.</text>
</paragraph><paragraph id="H7A2378945B4F4A858D2370BF88208170"><enum>(3)</enum><header>Considerations</header><text>In
allocating the resources of the Agency to perform the monitoring required by
this section, the Director may consider, among other factors—</text>
<subparagraph id="H638EED0DF6CB413689F4110DA6EC90B0"><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="H010F8A7F75974600B60E13DF4E751A21"><enum>(B)</enum><text>consumers’
understanding of the risks of a type of consumer financial product or
service;</text>
</subparagraph><subparagraph id="H56995B9502134A429B054FEBD06C07D0"><enum>(C)</enum><text>the state of the
law that applies to the 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="H46B506255D6B4C75AF4263C4FF625B79"><enum>(D)</enum><text>rates of growth in
the provision of a consumer financial product or service;</text>
</subparagraph><subparagraph id="HA1FE61F5294348A7B4D867A8337F6BC2"><enum>(E)</enum><text>extent, if any, to
which the risks of a consumer financial product or service may
disproportionately affect traditionally underserved consumers, if any;
or</text>
</subparagraph><subparagraph id="H206708F6BD3B44C498959643484F9C68"><enum>(F)</enum><text>types, number, and
other pertinent characteristics of covered persons that provide the product or
service.</text>
</subparagraph></paragraph><paragraph id="H765EC330631E4360A5265D36AA4D151B"><enum>(4)</enum><header>Reports</header><text>The
Agency shall publish at least 1 report of significant findings of the
monitoring required by paragraph (1) in each calendar year, beginning in the
calendar year that is 1 year after the designated transfer date.</text>
</paragraph></subsection><subsection id="HF90FFDD08D654DE9BA85CBB3A94A3989"><enum>(b)</enum><header>Assessment of
significant regulations</header>
<paragraph id="HEB7CFE4674E7449586CA57240FDB7125"><enum>(1)</enum><header>In
general</header><text>The Agency shall conduct an assessment of each
significant regulation prescribed or order issued by the Director under this
title, under the authorities transferred under subtitles F and H or pursuant to
any enumerated consumer law that addresses, among other relevant factors, the
effectiveness of the regulation in meeting the purposes and objectives of this
title and the specific goals stated by the Director.</text>
</paragraph><paragraph id="H38D3F2A267664592A99DD41492ABB928"><enum>(2)</enum><header>Basis for
assessment</header><text>The assessment shall reflect available evidence and
any data that the Agency reasonably may collect.</text>
</paragraph><paragraph id="HFB717D495C6F4458A056E735D18354BB"><enum>(3)</enum><header>Reports</header><text>The
Agency shall publish a report of an assessment under this subsection not later
than 3 years after the effective date of the regulation or order, unless the
Director determines that 3 years is not sufficient time to study or review the
impact of the regulation, but in no event shall the Agency publish a report of
such assessment more than 5 years after the effective date of the regulation or
order.</text>
</paragraph><paragraph id="H59FC9290D4164CACAF928F4A7931A316"><enum>(4)</enum><header>Public commented
required</header><text display-inline="yes-display-inline">Before publishing a
report of its assessment, the Agency shall invite, with sufficient time
allotted, public comment on, and may hold public hearings on, recommendations
for modifying, expanding, or eliminating the newly adopted significant
regulation or order.</text>
</paragraph></subsection><subsection id="H1C5909773B474F8E9E5E7A1745329D61"><enum>(c)</enum><header>Information
gathering</header><text>In conducting any monitoring or assessment required by
this section, the Agency may gather information through a variety of methods,
including by conducting surveys or interviews of consumers.</text>
</subsection></section><section id="H0C68A188BF814971B3B8D6BE563DA6D8"><enum>4208.</enum><header>Authority to
restrict mandatory predispute arbitration</header>
<subsection id="H482029A3723841AD9ECC259F6C152945"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director, by
regulation, may prohibit or impose conditions or limitations on the use of any
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 Director finds that such a prohibition or imposition of
conditions or limitations are in the public interest and for the protection of
consumers.</text>
</subsection><subsection id="HBD28AB23894A4ABDA3F2AFB3D716939B"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, any regulation prescribed by the Director under
subsection (a) 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 Director.</text>
</subsection></section><section id="H79F1B46AD232493D96D5E9E0C82EAE0E"><enum>4209.</enum><header>Registration
and supervision of nondepository covered persons</header>
<subsection id="H04EB5B0CD94645D99D4C5D2FBBE3A5A2"><enum>(a)</enum><header>Risk-based
programs</header>
<paragraph id="H5EBB110CA0734860825FA963092DD89E"><enum>(1)</enum><header>In
general</header><text>The Agency shall develop risk-based programs to supervise
covered persons that are not credit unions, depository institutions, or persons
excluded under section 4205 by prescribing registration requirements, reporting
requirements, and examination standards and procedures.</text>
</paragraph><paragraph id="H1E02B28FCDB146B2B35236A5F7A9674D"><enum>(2)</enum><header>Basis for
programs</header><text>The risk-based supervisory programs established pursuant
to paragraph (1) shall be based on—</text>
<subparagraph id="H8E93F3832FC1415C8D3D9703DCE01D9D"><enum>(A)</enum><text>relevant
registration and reporting information about such covered persons, as
determined by the Agency; and</text>
</subparagraph><subparagraph id="H89EC48479C3845E4BE09F4206CCE2835"><enum>(B)</enum><text>the Agency’s
assessment of risks posed to consumers in the relevant geographic markets and
markets for consumer financial products and services.</text>
</subparagraph></paragraph></subsection><subsection id="H31D7773DBFF04B79A7AAE0E3C05C706A"><enum>(b)</enum><header>Registration</header>
<paragraph id="H240CC24608344879BCCD8B9BE30A7064"><enum>(1)</enum><header>In
general</header><text>The Director shall prescribe regulations regarding
registration requirements for covered persons that are not credit unions or
depository institutions.</text>
</paragraph><paragraph id="HD998AF333C574C87B2801C8A7146E319"><enum>(2)</enum><header>Consultation
with state agencies</header><text>In developing and implementing registration
requirements under this subsection, the Agency shall consult with State
agencies regarding requirements or systems for registration (including
coordinated or combined systems), where appropriate.</text>
</paragraph><paragraph id="HBA3B712756454311AF6B5D4FABBB3784"><enum>(3)</enum><header>Exception for
related persons</header><text>The Agency shall not impose requirements
regarding the registration of a related person.</text>
</paragraph><paragraph id="H1C71B7CAC15F4CAB80E0DA62C9FC09EE"><enum>(4)</enum><header>Registration
information</header><text>Subject to regulations prescribed by the Director,
the Agency shall publicly disclose the registration information about a covered
person which is not a bank holding company, credit union, or depository
institution for the purposes of facilitating the ability of consumers to
identify the covered person as registered with the Agency.</text>
</paragraph></subsection><subsection id="HD5A771B95F5D4C80BFACD1D38BDE0806"><enum>(c)</enum><header>Reporting
requirements</header>
<paragraph id="H5E4C264F49014E4BA0B40B2350EF5C37"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Agency may
require reports from covered persons that are not credit unions or depository
institutions, or service providers thereto, for the purposes of facilitating
supervision of such covered persons or service providers.</text>
</paragraph><paragraph id="H91C028CD28EC4CFAAC556FBE69C3655D"><enum>(2)</enum><header>Consistency of
reporting requirements and risk-based standards</header><text>The Agency shall
impose reporting requirements under this subsection that are consistent with
the risk-based standards developed and implemented under this section and the
registration information pertaining to the relevant types or classes of covered
persons.</text>
</paragraph><paragraph id="HFBA8763F2B724C84AFD356E9733CE69F"><enum>(3)</enum><header>Contents of
reports</header><text>Reporting requirements imposed under this paragraph may
include information regarding—</text>
<subparagraph id="H475FB2BEA1C0406A898797FD8F61CF76"><enum>(A)</enum><text>the nature of the
covered person’s business;</text>
</subparagraph><subparagraph id="H1C887D8EC7B74E849504ED7A8322E1F1"><enum>(B)</enum><text>the covered
person’s name, legal form, ownership and management structure, and related
persons;</text>
</subparagraph><subparagraph id="HFD95704607324BE0872E2E681CDEA1A2"><enum>(C)</enum><text>the covered
person’s locations of operation;</text>
</subparagraph><subparagraph id="HB17147673A1A4509B3552CBA75A0A29E"><enum>(D)</enum><text>the covered
person’s types and number of consumer financial products and services provided
by the covered person;</text>
</subparagraph><subparagraph id="H934EFCBA915C46D6AAC34EF21D613E63"><enum>(E)</enum><text>compliance with
any requirement imposed or enforced by the Agency, including any requirement
relating to registration, licensing, fees, or assessments; and</text>
</subparagraph><subparagraph id="H0E847E6969034896A4FBA69F3E6646F2"><enum>(F)</enum><text>the financial
condition of such covered person, including a related person, for the purpose
of assessing the ability of such person to perform its obligation to
consumers.</text>
</subparagraph></paragraph><paragraph id="H9EA50C37A95743AA8EBBBBF84A9C72E1"><enum>(4)</enum><header> Exception for
related persons</header><text display-inline="yes-display-inline">Other than
reports permitted under paragraph (3)(F) or in connection with a supervisory
action or examination or pursuant to the powers granted in subtitle E, the
Agency shall not impose requirements regarding reports of any related
person.</text>
</paragraph></subsection><subsection id="H315D64A7DCAC4492B7738857F48A69E1"><enum>(d)</enum><header>Examinations</header>
<paragraph id="H0A01FF9F3C3C4CD7839B1492823DD511"><enum>(1)</enum><header>Examinations
required</header><text>The Agency shall conduct examinations of covered persons
that are not credit unions or depository institutions as part of the programs
implemented under paragraphs (2) and (3) of section 4202(c).</text>
</paragraph><paragraph id="H76387CDF8CB9490981ABE4BB814500D7"><enum>(2)</enum><header>Examination
standards and procedures</header><text>The Director shall establish risk-based
standards and procedures for conducting examinations of covered persons
required to be examined under paragraph (1), including the frequency and scope
of such examinations, except that the Agency shall conduct examinations of such
covered persons that are determined to pose the highest risk to consumers based
on factors determined by the Director, such as the operations, sales practices,
or consumer financial products or services provided by such covered
persons.</text>
</paragraph></subsection><subsection id="H13C052E4C2A444928F2CC5C24B6CA729"><enum>(e)</enum><header>Authority to
collect information regarding fees or assessments</header><text>To the extent
permitted by Federal law, the Agency may obtain from the Secretary of the
Treasury information relating to a covered person which is not a bank holding
company, credit union, or depository institution, including information
regarding compliance with a reporting or registration requirement under the
subchapter II of chapter 53 of title 31, United States Code, for the purposes
of, and only to the extent necessary in, investigating, determining, or
enforcing compliance with a requirement relating to any fee or assessment
imposed by the Agency under this title.</text>
</subsection></section><section id="HAA0237B669C54D23A814F40FC7D94BD3"><enum>4210.</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="HE8CCA56E4E0C4B02965E2AC3F966FB8B"><enum>C</enum><header>Specific
Authorities</header>
<section id="HC6E51433B7AA4A7F84AAE993C7917DF9"><enum>4301.</enum><header>Prohibiting
unfair, deceptive, or abusive acts or practices</header>
<subsection id="HD55DBDD5287E459FAF262D101DB56E0F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Agency may take
any action authorized under subtitle E to prevent a person 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="H13F79CA6B896430C82F79805749F9CA0"><enum>(b)</enum><header>Regulations</header>
<paragraph id="H7741C3A77051483792027F445E60B822"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director may
prescribe regulations 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.</text>
</paragraph><paragraph id="H0BBBAB212E144A9D9278F50436297DBF"><enum>(2)</enum><header>Includes
prevention measures</header><text>Regulations prescribed under this section may
include requirements for the purpose of preventing such acts or
practices.</text>
</paragraph></subsection><subsection id="H66E72092FC894DEABE2BB9EF006D03AB"><enum>(c)</enum><header>Unfairness</header>
<paragraph id="H5B3DF533FCD8449A8C17E22F987C8A57"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director and the
Agency 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
Agency has a reasonable basis to conclude that the act or practice causes or is
likely to cause substantial injury to consumers which is not reasonably
avoidable by consumers and such substantial injury is not outweighed by
countervailing benefits to consumers or to competition.</text>
</paragraph><paragraph id="H1DDF8340084B4FBCA318C7A7E294B2FB"><enum>(2)</enum><header>Established
public policy as factor</header><text>In determining whether an act or practice
is unfair, the Agency may consider established public policies as evidence to
be considered with all other evidence.</text>
</paragraph></subsection><subsection id="HE9B3F42953F04AE585A026BBAF86ACEC"><enum>(d)</enum><header>Consultation</header><text display-inline="yes-display-inline">In prescribing any regulation under this
section, the Director shall consult with the Federal banking agencies, State
bank supervisors, the Federal Trade Commission, or other Federal agencies, as
appropriate, regarding the consistency of a proposed regulation with
prudential, consumer protection, civil rights, market, or systemic objectives
administered by such agencies or supervisors.</text>
</subsection></section><section id="H47A78830AA1940F6823D221A4E3A50FA"><enum>4302.</enum><header>Disclosures</header>
<subsection id="HD7F7E5A3484142D49358B21DE61A3E60"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director may
prescribe regulations to ensure the timely, appropriate and effective
disclosure to consumers of the costs, benefits, and risks associated with any
consumer financial product or service.</text>
</subsection><subsection id="H789CE68DA8854D57907ECFAE83F8B9D0"><enum>(b)</enum><header>Coordination
with other laws</header><text display-inline="yes-display-inline">In
prescribing regulations under subsection (a), the Director shall take into
account disclosure requirements under other laws in order to enhance consumer
compliance and reduce regulatory burden.</text>
</subsection><subsection id="H4127DE19FA8C407F9DED47DAE6535CB4"><enum>(c)</enum><header>Compliance</header>
<paragraph id="HBC45AE664016408B961E497C55659D63"><enum>(1)</enum><header>Model
disclosures</header><text>The Agency may provide model disclosures to
facilitate compliance with the requirements of regulations prescribed under
this section.</text>
</paragraph><paragraph id="H981FDBBE218A409F967172D254F71D39"><enum>(2)</enum><header>Per se
compliance</header><text>Compliance by a covered person with the model
disclosures issued by the Agency under this subsection shall per se constitute
compliance with the disclosure requirements of this section.</text>
</paragraph><paragraph id="H2EF63E813E4B4FB0A50A90672651EEE1"><enum>(3)</enum><header>Additional
guidance</header><text>The Agency may issue exemptions, no action letters, and
other guidance to promote compliance with disclosures requirements of
regulations prescribed under this section.</text>
</paragraph></subsection><subsection id="H425EEE4279B74394870BD51909E04965"><enum>(d)</enum><header>Combined
mortgage loan disclosure</header><text>Within 1 year after the designated
transfer date, the Director shall propose for public comment regulations and
model disclosures that combine the disclosures required under the Truth in
Lending Act and the Real Estate Settlement Procedures Act into a single,
integrated disclosure for mortgage loan transactions covered by those laws,
unless the Director determines that any proposal issued by the Board of
Governors and the Department of Housing and Urban Development carries out the
same purpose.</text>
</subsection></section><section id="H6278EAFB8603487A9113B41BD3A37D23"><enum>4303.</enum><header>Sales
practices</header><text display-inline="no-display-inline">The Director may
prescribe regulations and issue orders and guidance regarding the manner,
settings, and circumstances for the provision of any consumer financial
products or services to ensure that the risks, costs, and benefits of the
products or services, both initially and over the term of the products or
services, are fully and accurately represented to consumers.</text>
</section><section id="HCA6F224F746949D7BE3EBBE10829AF65"><enum>4304.</enum><header>Pilot
disclosures</header>
<subsection id="H2F29F313D45848E6A79C559AF3B736BF"><enum>(a)</enum><header>Pilot
disclosures</header><text display-inline="yes-display-inline">The Agency shall
establish standards and procedures for approval of pilot disclosures to be
provided or made available by a covered person to consumers in connection with
the provision of a consumer financial product or service, or the offering of a
consumer financial product or service.</text>
</subsection><subsection id="H23E884B9AF9644AABBDF3B7D634A71CA"><enum>(b)</enum><header>Standards</header><text>The
procedures shall provide that a pilot disclosure must be limited in time and
scope and reasonably designed to contribute materially to the understanding of
consumer awareness and understanding of, and responses to, disclosures or
communications about the risks, costs, and benefits of consumer financial
products or services.</text>
</subsection><subsection id="H64A493255AA044F882A9F7EB179AF6EF"><enum>(c)</enum><header>Transparency</header><text>The
procedures shall provide for public disclosure of pilots, but the Agency may
limit disclosure to the extent necessary to encourage covered persons to
conduct effective pilots.</text>
</subsection></section><section id="HE0C81627392B49B0847F32D45FC462FB"><enum>4305.</enum><header>Adopting
operational standards to deter unfair, deceptive, or abusive practices</header>
<subsection id="H0F233CF80F614E8ABE83206C4ABA4C39"><enum>(a)</enum><header>Authority To
prescribe standards</header><text>The States are encouraged to prescribe
standards applicable to covered persons who are not insured depository
institutions or credit unions, or service providers, to deter and detect
unfair, deceptive, abusive, fraudulent, or illegal transactions in the
provision of consumer financial products or services, including standards
for—</text>
<paragraph id="H52A40D27C6D04EA097DFB6D3B43A35DE"><enum>(1)</enum><text>background checks
for principals, officers, directors, or key personnel;</text>
</paragraph><paragraph id="HAC3359F73C784421BABCA15FCC5E233A"><enum>(2)</enum><text>registration,
licensing, or certification;</text>
</paragraph><paragraph id="H76B9EAE19C83435C980080DEB7EB1E86"><enum>(3)</enum><text>bond or other
appropriate financial requirements to provide reasonable assurance of ability
to perform its obligations to consumers;</text>
</paragraph><paragraph id="H88C2CBAB7C8C4B66BD90C254173FE1F3"><enum>(4)</enum><text>creating and
maintaining records of transactions or accounts; or</text>
</paragraph><paragraph id="HA4EF3CA43AFE487398E5CDCAF8CAC809"><enum>(5)</enum><text>procedures and
operations relating to the provision of, or maintenance of accounts for,
consumer financial products or services.</text>
</paragraph></subsection><subsection id="H21F60EED0D274B65B50C82BED29AE92E"><enum>(b)</enum><header>Agency authority
to prescribe standards</header>
<paragraph id="H5AD1F8DA82B4447A9062A54F8F94FEB0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director may
prescribe regulations establishing minimum standards under this section for any
class of covered persons other than covered persons which are subject to the
jurisdiction of a Federal banking agency or a State bank supervisor , or for
any service provider.</text>
</paragraph><paragraph id="HB9BDFABDABDA4A9ABC85F125F1EA1D23"><enum>(2)</enum><header>Registration and
licensing standards</header><text display-inline="yes-display-inline">In
addition to prescribing standards for the purposes described in subsection (a),
the Director may prescribe registration or licensing standards applicable to
covered persons for the purposes of imposing fees or assessments in accordance
with this title.</text>
</paragraph><paragraph id="HE8DE4E1F80C548D7976FAC3FB7BDA11D"><enum>(3)</enum><header>Enforcement of
standards</header><text>The Director may enforce under subtitle E compliance
with standards adopted by the Director or a State pursuant to this section for
covered persons or service providers operating in that State.</text>
</paragraph></subsection><subsection id="H40DC4DCC0C434EADAA9DBE0CE08B0D2C"><enum>(c)</enum><header>Consultation</header><text display-inline="yes-display-inline">In prescribing minimum standards under this
section, the Director shall consult with the Federal banking agencies, State
bank supervisors, the Federal Trade Commission, or other Federal agencies, as
appropriate, regarding the consistency of a proposed regulation with
prudential, consumer protection, civil rights, market, or systemic objectives
administered by such agencies or supervisors.</text>
</subsection></section><section id="H6F2D49834EA84AA1ACFFF01842AFF3E8"><enum>4306.</enum><header>Duties</header>
<subsection id="H0FB6883C319C4B7C907ADAE662C05B91"><enum>(a)</enum><header>In
general</header>
<paragraph id="HE6F6FA267BCF45AEB997F9B193AA4384"><enum>(1)</enum><header>Regulations
ensuring fair dealing with consumers</header><text>The Director shall prescribe
regulations imposing duties on a covered person, or an employee of a covered
person, or an agent or independent contractor for a covered person, who deals
or communicates directly with consumers in the provision of a consumer
financial product or service, as the Director deems appropriate or necessary to
ensure fair dealing with consumers.</text>
</paragraph><paragraph id="H948B56D04F43405E8569723E81552DFC"><enum>(2)</enum><header>Considerations
for duties</header><text>In prescribing such regulations, the Director shall
consider whether—</text>
<subparagraph id="HC548D5516FC841FB9529DC5395074610"><enum>(A)</enum><text>the covered
person, employee, agent, or independent contractor represents implicitly or
explicitly that the person, employee, agent, or contractor is acting in the
interest of the consumer with respect to any aspect of the transaction;</text>
</subparagraph><subparagraph id="HE2F20CBA490F4567AAB0EC9078980456"><enum>(B)</enum><text>the covered
person, employee, agent, or independent contractor provides the consumer with
advice with respect to any aspect of the transaction;</text>
</subparagraph><subparagraph id="H6821BD4E339246F083821F7CA8DA6CBA"><enum>(C)</enum><text>the consumer’s
reliance on or use of any advice from the covered person, employee, agent, or
independent contractor would be reasonable and justifiable under the
circumstances;</text>
</subparagraph><subparagraph id="H9921564B36984F9B892BA3513C014BBF"><enum>(D)</enum><text>the benefits to
consumers of imposing a particular duty would outweigh the costs; and</text>
</subparagraph><subparagraph id="HF916465CF9214F3490D102DB66C4252D"><enum>(E)</enum><text>any other factors
as the Director considers appropriate.</text>
</subparagraph></paragraph><paragraph id="H2D9A54AFEB844406B4FE11D3B52E4782"><enum>(3)</enum><header>Duties relating
to compensation practices</header>
<subparagraph id="H669F3B1EB68D4EF0A807F15C044E851A"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Director may
prescribe regulations establishing duties regarding compensation practices
applicable to a covered person, employee, agent, or independent contractor who
deals or communicates directly with a consumer in the provision of a consumer
financial product or service for the purpose of promoting fair dealing with
consumers.</text>
</subparagraph><subparagraph id="HEDA6B93029234922A32234170C201CDE"><enum>(B)</enum><header>No compensation
caps</header><text>The Director may not prescribe a limit on the total dollar
amount of compensation paid to any person.</text>
</subparagraph><subparagraph id="HF3D9FD82122B41838C006229B8A40A88"><enum>(C)</enum><header>Disparity
treatment prohibited</header><text display-inline="yes-display-inline">The
Director may not prescribe regulations that directly or indirectly disparately
treat, or are interpreted to disparately treat, or disparately impact any
entity that employs covered persons.</text>
</subparagraph></paragraph><paragraph id="H5488404631314DE7ABB321ADE210BEEB"><enum>(4)</enum><header>Requirement to
include disclaimer on public statements</header><text display-inline="yes-display-inline">The Director shall ensure that the Agency’s
website, and any statement made by the Director or the Agency to the public,
includes a disclaimer stating that the Agency does not endorse any particular
financial product or service and consumers are expected to exercise due
diligence in deciding what financial products and services are appropriate for
them.</text>
</paragraph></subsection><subsection id="H043D105AADC842C48F236ABDCE35EF2C"><enum>(b)</enum><header>Administrative
proceedings</header>
<paragraph id="H9B9E14011B054F2187EA0305596D83BB"><enum>(1)</enum><header>In
general</header><text>Any regulation prescribed by the Director under this
section shall be enforceable only by the Agency through an adjudication
proceeding under subtitle E or by a State regulator through an appropriate
administrative proceeding as permitted under State law.</text>
</paragraph><paragraph id="H586232FB1519466DB50FA8E7C2336304"><enum>(2)</enum><header>Exclusivity of
remedy</header><text>No action may be commenced in any court to enforce any
requirement of a regulation prescribed under this section, and no court may
exercise supplemental jurisdiction over a claim asserted under a regulation
prescribed under this section based on allegations or evidence of conduct that
otherwise may be subject to such regulation.</text>
</paragraph><paragraph id="H7044735EE94C4768BECAB3605B4E6134"><enum>(3)</enum><header>Rule of
construction</header><text>The Agency, the Attorney General, and any State
attorney general or State regulator shall not be precluded from enforcing any
other Federal or State law against a person with respect to conduct that may be
subject to a regulation prescribed by the Director under this section.</text>
</paragraph></subsection><subsection id="H29F2070CCA6C4FFDB18D0E7809A82562"><enum>(c)</enum><header>Exclusions</header><text>This
section shall not be construed as authorizing the Director to prescribe
regulations applicable to—</text>
<paragraph id="H2ED918F577A5453F8335FB4CA457C8FD"><enum>(1)</enum><text>an attorney
licensed to practice law and in compliance with the applicable rules and
standards of professional conduct, but only to the extent that the consumer
financial product or service provided is within the attorney-client
relationship with the consumer; or</text>
</paragraph><paragraph id="HC93F51EF24FF4CB3BEC063C752F86575"><enum>(2)</enum><text>any trustee,
custodian, or other person that holds a fiduciary duty in connection with a
trust, including a fiduciary duty to a grantor or beneficiary of a trust, that
is subject to and in compliance with the applicable law relating to such
trust.</text>
</paragraph></subsection></section><section id="HAB3C155D2BF94098B500FA37D76CF71F"><enum>4307.</enum><header>Consumer
rights to access information</header>
<subsection id="HC604A3D2A5364911AC03CB962A0E8805"><enum>(a)</enum><header>In
general</header><text>Subject to regulations prescribed by the Director, a
covered person shall make available to a consumer, in an electronic form usable
by the consumer, 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.</text>
</subsection><subsection id="HFCCC283808084094BA44B6FB93C542FE"><enum>(b)</enum><header>Exceptions</header><text>A
covered person shall not be required by this section to make available to the
consumer—</text>
<paragraph id="H58D60BDC91B64C0F8CF2C657E255177B"><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="H5DAB9B2C83E843DA938F2D3EA34AA744"><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="H15D5158C790D476AA689BC39BD17E1B0"><enum>(3)</enum><text display-inline="yes-display-inline">any information required to be kept
confidential by any other law (including section 6103 of the Internal Revenue
Code of 1986); or</text>
</paragraph><paragraph id="H009EDC493D904FF6AA04F457DBF0B612"><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="HCEF413D2B49449FC9BB14E517BDBF340"><enum>(c)</enum><header>No duty To
maintain records</header><text>No provision of this section shall be construed
as imposing any duty on a covered person to maintain or keep any information
about a consumer.</text>
</subsection><subsection id="H2281A6F90E084904A0FE54F7F4CA0B98"><enum>(d)</enum><header>Standardized
formats for data</header><text>The Director, by regulation, 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="H77A9EE4333904C74A883DA623BD4F958"><enum>(e)</enum><header>Consultation</header><text display-inline="yes-display-inline">The Director shall, when prescribing any
regulation under this section, consult with the Federal banking agencies, State
bank supervisors, the Federal Trade Commission, and the Commissioner of
Internal Revenue to ensure that the regulations—</text>
<paragraph id="H65D10BF1376A4689B864ABA4248F0A5F"><enum>(1)</enum><text>impose
substantively similar requirements on covered persons;</text>
</paragraph><paragraph id="H8295403F7387446BAC0F361AE026DC20"><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="H725EFA9C0ECE43FCA644C6553D516681"><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="H3DD44069DCF94BD1AC165EECFC86A6A1"><enum>4308.</enum><header>Prohibited
acts</header><text display-inline="no-display-inline">It shall be unlawful for
any person—</text>
<paragraph id="HFD8FAA1CE45945DCAED5DA850E719861"><enum>(1)</enum><text display-inline="yes-display-inline">to advertise, market, offer, sell, enforce,
or attempt to enforce, any term, agreement, change in terms, fee, or charge in
connection with a consumer financial product or service that is not in
conformity with this title or applicable regulation prescribed or order issued
by the Director or to engage in any unfair, deceptive, or abusive act or
practice, except that no person shall be held to have violated this subsection
solely by virtue of providing or selling time or space to a person placing an
advertisement;</text>
</paragraph><paragraph id="H420944012EA34D9EB97E2B0EC65ADB20"><enum>(2) </enum><text display-inline="yes-display-inline">to fail or refuse to pay any fee or
assessment imposed by the Agency under this title, to fail or refuse to permit
access to or copying of records, to fail or refuse to establish or maintain
records, or to fail or refuse to make reports or provide information to the
Agency, as required by this title, an enumerated consumer law, or pursuant to
the authorities transferred by subtitles F and H, or any regulation prescribed
or order issued by the Director this title or pursuant to any such authority;
or</text>
</paragraph><paragraph id="HAD8242AD8D3D4A67876F530F0C87E2F7"><enum>(3)</enum><text>to knowingly or
recklessly provide substantial assistance to another person in violation of the
provisions of section 4301, or any regulation prescribed or order issued under
such section, and any such person 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></section><section id="H17E329FE157A4B6EBB7D700C673A5966"><enum>4309.</enum><header>Treatment of
remittance transfers</header>
<subsection display-inline="no-display-inline" id="H18034B4EBFBE42A882277DEC16FE8CC6"><enum>(a)</enum><header>Disclosures
required for remittance transfers</header>
<paragraph id="H3223CB36F4A346A3A02DB65B668FE118"><enum>(1)</enum><header>In
general</header><text>Each remittance transfer provider shall make disclosures
to consumers, as specified by this section and by regulation prescribed by the
Director.</text>
</paragraph><paragraph id="HA40E7BB474CD438E9939C59A93EFF8A5"><enum>(2)</enum><header>Specific
disclosures</header><text>In addition to any other disclosures applicable under
this title, a remittance transfer provider shall—</text>
<subparagraph id="H460E316339B94713A968914969D7719A"><enum>(A)</enum><text>disclose clearly
and conspicuously, in writing and in a form that the consumer may keep, to each
consumer who requests information regarding the fees or exchange rate for a
remittance transfer, prior to the consumer making any payment in connection
with the transfer—</text>
<clause id="H0918CBD62F7546F0B965AD1F63E4B037"><enum>(i)</enum><text>the
total amount in United States dollars that will be required to be paid by the
consumer in connection with the remittance transfer;</text>
</clause><clause id="H3B7598A39E704522BDFF6794ED39075E"><enum>(ii)</enum><text>the
amount of currency that the designated recipient of the remittance transfer
will receive, using the values of the currency into which the funds will be
exchanged;</text>
</clause><clause id="H012DCFA428EE43E8BE4E05B2AC13B19F"><enum>(iii)</enum><text>the fee charged
by the remittance transfer provider for the remittance transfer;</text>
</clause><clause id="H73A116D4A6EF468790E14999039986AA"><enum>(iv)</enum><text>any
exchange rate to be used by the remittance transfer provider for the remittance
transfer, unless the exchange rate is not fixed on send;</text>
</clause><clause id="H6ED834DF57BF40D985898F1EF7EDA3DC"><enum>(v)</enum><text>the
amount of time for which the information specified in this subparagraph (A)
will be in effect;</text>
</clause><clause id="HB9CCD3477CCA42C1A676A6FC625C91F3"><enum>(vi)</enum><text>the
expected time interval within which the funds being transferred will be made
available to the recipient; and</text>
</clause><clause id="H29C409E603804F54B635269219FF61F5"><enum>(vii)</enum><text>the location
where the funds being transferred will be made available to the recipient if
the funds are to be made available only at one location, or if the remittance
transfer provider permits the recipient to choose from multiple locations where
the funds being transferred will be made available to the recipient, the
remittance transfer provider shall make available to the consumer or the
recipient a resource that lists such locations;</text>
</clause></subparagraph><subparagraph id="H45C13B62EB4747A6AF1B564D57B5FA48"><enum>(B)</enum><text>at the time at
which the consumer makes payment in connection with the remittance transfer, a
receipt in writing disclosing clearly and conspicuously—</text>
<clause id="H8C325F585AD342D7BB3A27503109AADE"><enum>(i)</enum><text>the
information described in subparagraph (A);</text>
</clause><clause id="HD2775F90530D489A9E1CAA290A30872A"><enum>(ii)</enum><text>the
expected time interval within which the funds being transferred will be made
available to the recipient, which shall be not more than ten days after the
date the consumer makes payment in connection with the remittance transfer
unless otherwise prohibited by applicable State or Federal law or the law of
another country, or as may be specified by the consumer so long as the consumer
has the choice to order that the funds be made available to the recipient not
more than ten days after the consumer makes payment in connection with the
remittance transfer;</text>
</clause><clause id="HE5DD74FA48614BEDAE018F49AF259671"><enum>(iii)</enum><text>the location
where the funds being transferred will be made available to the recipient if
the funds are to be made available only at one location, or if the remittance
transfer provider permits the recipient to choose from multiple locations where
the funds being transferred will be made available to the recipient, the
remittance transfer provider shall make available to the consumer or the
recipient a resource that lists such locations;</text>
</clause><clause id="HE32D5A7A24EA4E8090540C2A8F2D71B6"><enum>(iv)</enum><text>the
name and telephone number or address of the designated recipient, if provided
to the remittance transfer provider by the consumer;</text>
</clause><clause id="H6A05F614DA1F4F0491EBAAF7F83A7D26"><enum>(v)</enum><text>information about
the rights of the consumer under this section to cancel the remittance
transfer, to resolve errors and to receive refunds;</text>
</clause><clause id="H0410A1B56E0F46469DF163FC79F035AA"><enum>(vi)</enum><text>appropriate
contact information for the remittance transfer provider;</text>
</clause><clause id="HFA43BB42C4C94DC2BF4BB7DBC078BDE3"><enum>(vii)</enum><text>a
transaction reference number unique to that remittance transfer; and</text>
</clause><clause id="H31961BC3C8BE4E88814DE8E3F6597C45"><enum>(viii)</enum><text>information as
to when the exchange rate will be calculated (for example, when the funds are
received by the recipient), if the customer has been notified that the exchange
rate is not fixed on send;</text>
</clause></subparagraph><subparagraph id="H9958F9EC873946EC83D2524823781E05"><enum>(C)</enum><text>at the time at
which the consumer initiates the remittance transfer, offer to provide in
writing, prior to making any payment in connection with the transfer, the
information listed in subparagraph (A); and</text>
</subparagraph><subparagraph id="HEE3708C968614C9BB15F43FFA72BD3C2"><enum>(D)</enum><text>in the case of an
exchange rate not fixed on send, the remittance provider shall also disclose,
at the time at which the consumer initiates the remittance transfer, the range,
using the high and low rates, for the prior 30 day period, that the consumer
would have received if a representative amount had been exchanged by the
remittance transfer provider, as well as a clear and conspicuous notice that
the actual exchange rate may vary.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">If the
actual rate used for the transfer is known to the remittance provider, either
because such rate was set by the remittance provider itself or because the
remittance provider receives confirmation of the actual exchange rate used, the
remittance provider shall make available to consumers written or electronic
confirmation of the actual exchange rate used and the amount of currency that
the recipient or the remittance transfer received, using the values of the
currency into which the funds were exchanged. The Director shall within 2 years
after the date of the enactment of the Consumer Financial Protection Agency Act
of 2009 prescribe consumer disclosures for transfers with rates not fixed on
send that are functionally equivalent to those applicable to remittances where
the exchange rate is specified by the remittance transfer provider at the time
the consumer initiates the remittance transfer. To the greatest extent
possible, the Director shall ensure that functional equivalence will enable
remittance transfer providers to comply with all requirements in this title and
provide consumers with information sufficient to compare services providers, to
time their use of the product, to discover errors in transmission and to seek
remedies.</continuation-text></paragraph><paragraph id="HB6CB458C7FCF49B78974B6F990438249"><enum>(3)</enum><header>Exemption</header><text>Notwithstanding
requirements under paragraph (2)(A)(ii), (2)(A)(iv), or (2)(B)(i), no such
disclosure is required—</text>
<subparagraph id="H50DEA282F9EA4BA79411B60FD6AD8D72"><enum>(A)</enum><text>because of the
requirements of another law, including the law of another country;</text>
</subparagraph><subparagraph id="H37C3A3E229E0462E85750327828BD332"><enum>(B)</enum><text>because the
transfer is being routed through the Directo a México offered by the Federal
reserve banks; or</text>
</subparagraph><subparagraph id="H758EAD854ECC47479C385ACD0EE43C96"><enum>(C)</enum><text>because of any
other circumstance deemed permissible by regulation of the Director; If the
actual rate used for the transfer is known to the remittance provider, the
remittance provider shall make available to consumers written or electronic
confirmation 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.</text>
</subparagraph></paragraph><paragraph id="H21F6498E2A3F44CE8CF9110D5DC7F7C6"><enum>(4)</enum><header>Provision of
toll-free number and web access</header><text></text>
<subparagraph id="HF357080A1C454C3EA3E2C0C77ACA13FC"><enum>(A)</enum><text>In addition to
providing the disclosures required by this section to a consumer at a
remittance transfer provider location, a remittance transfer provider shall
provide a toll-free telephone number or local number, and an Internet website
that a consumer can access for which access no remittance transfer provider may
assess a charge, to obtain the information required by paragraph (2)(A) for
remittance transfers offered by that remittance transfer provider or
information about the status of a remittance transfer for which a consumer has
made payment.</text>
</subparagraph><subparagraph id="H10BE8402F92D40D7902F74C75A94BB0E"><enum>(B)</enum><text>A remittance
transfer provider that on an aggregate basis originates 30,000 or fewer
transfers on a calendar year basis (or such other amount as may be prescribed
by the Director) is not required to offer the web access prescribed in
subparagraph (A), but is required to provide a toll-free telephone number or
local number as prescribed in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H778F64FB4C484F50B2F565E0F3778739"><enum>(5)</enum><header>Alternative
methods of disclosure</header><text>Subject to subsection (e)(2), a remittance
transfer provider may—</text>
<subparagraph id="HD4206751D39C4C7CB539E739A49A4A01"><enum>(A)</enum><text>if the transaction
is conducted entirely by telephone (which shall include, but not be limited to,
a mobile telephone) satisfy the requirements of paragraph (2)(A) orally or, at
the option of the consumer, electronically through a message sent to the
consumer through any electronic means (including, but not limited to, an
electronic mail address or a mobile telephone) as designated by the
consumer;</text>
</subparagraph><subparagraph id="H2E84AF71F5CD4D929AA883B00005B9F1"><enum>(B)</enum><text>satisfy the
requirements of paragraph (2)(A) electronically if the transfer is initiated by
the consumer electronically through the remittance transfer provider’s website
or through any other electronic means; and</text>
</subparagraph><subparagraph id="H9F3917BD063A437086516ECB5A93FF7B"><enum>(C)</enum><text display-inline="yes-display-inline">satisfy the requirements of paragraph
(2)(B) by mailing (or transmitting electronically if the transfer is initiated
electronically by the consumer through the remittance transfer provider’s
website or the consumer otherwise consents in accordance with the provisions of
section 101 of the Electronic Signatures in Global and National Commerce Act)
the information required under such paragraph to the consumer not later than
one business day after the date on which the transaction is conducted, if the
transaction is conducted entirely by telephone (or electronically) and the
consumer requests a written receipt.</text>
</subparagraph></paragraph></subsection><subsection id="HA64188725B7E4525BD3ED5871F2E9A1A"><enum>(b)</enum><header>Written foreign
language disclosures</header><text></text>
<paragraph id="H5DC2EC8565C947BFBDFDDBAF643F41B3"><enum>(1)</enum><header>In
general</header><text>The disclosures required under subsections (a)(2)(A) and
(a)(2)(B)(i) shall be made in English and—</text>
<subparagraph id="H3EE1C3CFF5BF4DD1B2512AE9A71970BA"><enum>(A)</enum><text>at each remittance
transfer provider location, shall be made in the same languages principally
used by the remittance transfer provider, or any of its agents, to advertise,
solicit, or market its remittance transfers business, either orally or in
writing, at that location, if other than English, provided that such languages
are those for which the Director has issued model disclosures as provided in
subsection (g); or</text>
</subparagraph><subparagraph id="H408E98D682DD4F3197CE978EE3CFF80E"><enum>(B)</enum><text>on a remittance
transfer provider’s website, shall at a minimum be made in any other language
for which the Director has issued model disclosures as provided in subsection
(g) if the remittance transfer provider, or any of its agents, advertises,
solicits, or markets its remittance transfers business in such language.</text>
</subparagraph></paragraph><paragraph id="HB0A9A67E8FD14772895C52AB06475DCD"><enum>(2)</enum><header>Disputes
concerning terms</header><text>If a disclosure is required by this section to
be in English and another language, the English version of the disclosure shall
govern any dispute concerning the terms of the receipt. However, any
discrepancies between the English version and any other version due to the
translation of the receipt from English to another language including errors or
ambiguities shall be construed against the remittance transfer provider or its
agent and the remittance transfer provider or its agent shall be liable for any
damages caused by these discrepancies.</text>
</paragraph></subsection><subsection id="H67094B68222D455094C96CBD18CA148F"><enum>(c)</enum><header>Remittance
transfer cancellations, refunds, and errors</header>
<paragraph id="H290F5706C8924AC796ABF3E07838A421"><enum>(1)</enum><header>Cancellations</header><text></text>
<subparagraph id="H34A1DEAED0C94D17B6767A56934A93CC"><enum>(A)</enum><text>After receiving
the receipt required under subsection (a)(2)(B), a consumer may cancel the
currency transaction—</text>
<clause id="HFBD0AE07B5B64E9FA39ED3A627A4EEE2"><enum>(i)</enum><text>before leaving the
premises of the remittance transfer provider where the consumer received the
receipt, and</text>
</clause><clause id="H4D57A20E367849409B223CA45B0D6578"><enum>(ii)</enum><text>not
later than 30 minutes after the time the consumer initiated the remittance
transfer with the remittance transfer provider.</text>
</clause></subparagraph><subparagraph id="H2A0F66DF1ECE4FC78C213C92EDEC6BAF"><enum>(B)</enum><text>If a consumer
cancels the transaction, the remittance transfer provider shall immediately
refund to the consumer the fees paid and the currency to be transferred, and
issue a receipt indicating that the transaction has been cancelled.</text>
</subparagraph><subparagraph id="H719C008F47654A06900DB9D857B41EED"><enum>(C)</enum><text>A consumer may not
cancel a remittance transfer after the remittance transfer provider has sent
the funds to the recipient.</text>
</subparagraph><subparagraph id="HBA19699C5003487AA5F06F38E762932D"><enum>(D)</enum><text>A remittance
transfer provider shall not be required to provide a refund if providing a
refund would violate State or Federal law.</text>
</subparagraph></paragraph><paragraph id="H3A2DB5EDE8254FB0B36C64B65A00129E"><enum>(2)</enum><header>Refunds</header>
<subparagraph id="H1D22D28EDF814994B3F7DDD0A63014D3"><enum>(A)</enum><text>If a remittance
transfer provider receives written notice from the consumer within ten days of
the promised date of delivery of a remittance transfer that no amount of the
funds to be remitted was made available to the designated recipient in the
foreign country, the remittance transfer provider shall—</text>
<clause id="H5202474E58DE49AC8A8F7E26EB6EFDC5"><enum>(i)</enum><text>refund to the
consumer the total amount in U.S. dollars that was paid by the consumer in
connection with such remittance transfer;</text>
</clause><clause id="HE2ACA7F9F72842A78DAA13932267AFBE"><enum>(ii)</enum><text>promptly transmit
the remittance transfer in accordance with the terms in the written receipt
provided to the consumer pursuant to subsection (a)(2)(B);</text>
</clause><clause id="HD8A56938BA6E4290BE533B2C783E042B"><enum>(iii)</enum><text>provide such
other remedy, as determined appropriate by rule of the Director for the
protection of consumers; or</text>
</clause><clause id="H88E6F874FDB847F7B13ABC93247CCB40"><enum>(iv)</enum><text>demonstrate to
the consumer that the proceeds of the remittance transfer were made available
to the recipient of the remittance provider.</text>
</clause></subparagraph><subparagraph id="H93270AC762F74D9287C82D8311BEE1D8"><enum>(B)</enum><text>A remittance
transfer provider shall not be required to provide a refund if providing a
refund would violate State or Federal law.</text>
</subparagraph></paragraph><paragraph id="H35B7F2D5976B48DF9E940F5C73704FE9"><enum>(3)</enum><header>Error
resolution</header>
<subparagraph id="H551E87516B3D4BE9998583C2592FC175"><enum>(A)</enum><header>In
general</header><text>If a remittance transfer provider receives written notice
from the consumer within 60 days of the promised date of delivery that an error
occurred with respect to a remittance transfer, including that the full amount
of the funds to be remitted was not made available to the designated recipient
in the foreign country, the remittance transfer provider shall resolve the
error pursuant to this paragraph.</text>
</subparagraph><subparagraph id="HAD4DB7B19ACB47649EA32DB8FD34821F"><enum>(B)</enum><header>Remedies</header><text>Not
later than 120 days after the date of receipt of a notice from the consumer
pursuant to subparagraph (A), the remittance transfer provider shall—</text>
<clause id="H122B0B40131C42E4AC0DDCA4A46117BD"><enum>(i)</enum><text>as
applicable to the error and as designated by the consumer—</text>
<subclause id="H079FE40078A24050B7F1BE01EB84807A"><enum>(I)</enum><text>refund to the
consumer the total amount in U.S. dollars that was paid by the consumer in
connection with the remittance transfer that was not properly
transmitted;</text>
</subclause><subclause id="H29CEC99C28944EC6AAFE4270CC88FCA2"><enum>(II)</enum><text>make available to
the designated recipient, without additional cost to the designated recipient
or to the consumer, the amount appropriate to resolve the error;</text>
</subclause><subclause id="HFA93E9320F6B418BADC5432F6FE97F41"><enum>(III)</enum><text>provide such
other remedy, as determined appropriate by regulation of the Director for the
protection of consumers; or</text>
</subclause></clause><clause id="H4437FB86FC4548529A04BD9EC693BCFC"><enum>(ii)</enum><text>demonstrate to
the consumer that there was no error.</text>
</clause></subparagraph></paragraph><paragraph id="H368ED453133440759D20BCC80DD9078B"><enum>(4)</enum><header>Regulations</header><text>The
Director, in order to protect consumers, shall establish, by regulation, clear
and appropriate standards for remittance transfer providers with respect to
error resolution, cancellation and refunds.</text>
</paragraph></subsection><subsection id="H03D36A6CA65543A2A22169129D95056E"><enum>(d)</enum><header>Enforcement
authority</header><text>The Director shall have the sole authority to enforce
the provisions of this section, and any regulations established pursuant to
this section.</text>
</subsection><subsection id="HFC7C2FE3EBDA4536B4723D47EF12A6C1"><enum>(e)</enum><header>Applicability of
other provisions of law</header>
<paragraph id="H57E3647E82FD4DA190671E8D73C54C5F"><enum>(1)</enum><header>Applicability of
title 18 and title 31 provisions</header><text>A remittance transfer provider
that is a money transmitting business as defined in section 5330 of title 31,
United States Code, may provide remittance transfers only if such provider is
in compliance with the requirements of section 5330 of title 31, United States
Code, and section 1960 of title 18, United States Code, as applicable.</text>
</paragraph><paragraph id="H1C62D181B45940838BDC0465AC517232"><enum>(2)</enum><header>Rule of
construction</header><text>Nothing in this section shall be construed—</text>
<subparagraph id="H425A6E72B4C545D585903B242EFC3601"><enum>(A)</enum><text display-inline="yes-display-inline">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, or chapter 2 of title I of
Public Law 91–508, or any regulations promulgated thereunder; or</text>
</subparagraph><subparagraph id="HB0322087367E4542BCFCA1BF8020E2A2"><enum>(B)</enum><text>to cause any fund
transfer that would not otherwise be treated as such under paragraph (2) 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 regulation prescribed under such subparagraph.</text>
</subparagraph></paragraph></subsection><subsection id="HE46F06A179FA4BCD96FC16C41010F3B3"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H42423565044948B9A1CFB6C364B660BB"><enum>(1)</enum><header>Depository
institution</header><text>the term <quote>depository institution</quote> has
the same meaning as in section 3 of the Federal Deposit Insurance Act and
includes a credit union.</text>
</paragraph><paragraph id="H8482D7D5A6A34EC686DED8944DCDB316"><enum>(2)</enum><header>Not fixed on
send</header><text>The term <quote>not fixed on send</quote> when referring to
an exchange rate used in a remittance transfer means an exchange rate that is
not set by the remittance transfer provider at the time the consumer initiates
the remittance transfer.</text>
</paragraph><paragraph id="HC02237999C204EA89EF44D248C8D0BE6"><enum>(3)</enum><header>Remittance
transfer</header><text display-inline="yes-display-inline">The term
<quote>remittance transfer</quote> means the electronic (as defined in section
106(2) of the Electronic Signatures in Global and National Commerce Act)
transfer of funds at the request of a consumer located in any State to a person
in another country that is initiated by a remittance transfer provider, whether
or not the consumer is an account holder of the remittance transfer provider or
whether or not the remittance transfer is also an electronic fund transfer, as
defined in section 903 of the Electronic Fund Transfer Act.</text>
</paragraph><paragraph id="HF169E307CE234781A63FF9B452423EB2"><enum>(4)</enum><header>Remittance
transfer provider</header><text>The term <quote>remittance transfer
provider</quote> means any person or depository institution, or agent thereof,
that originates remittance transfers on behalf of consumers in the normal
course of its business, whether or not the consumer is an account holder of
that person or depository institution.</text>
</paragraph></subsection><subsection id="H0A4C4596770E4A848D3392E5D369F448"><enum>(g)</enum><header>Model
disclosures</header>
<paragraph id="H07D1FE5E4A2C443587453BCC067BA5F0"><enum>(1)</enum><header>Publication</header><text>Notwithstanding
any provisions of this title, the Director shall establish and publish model
disclosure forms to facilitate compliance with the disclosure requirements of
this section and to aid the consumer in understanding the transaction to which
the subject disclosure form relates.</text>
</paragraph><paragraph id="HF0F11F83B24F4CE0B06AACF62B1BECA4"><enum>(2)</enum><header>Languages to be
used in model disclosures</header><text>The Director shall make these
disclosures available within 1 year of the effective date of this title—</text>
<subparagraph id="HACF091C76AB9433C816EC72E93B51406"><enum>(A)</enum><text>in English,
and</text>
</subparagraph><subparagraph id="H44EF4F3A08F44C70841B70CA790207A0"><enum>(B)</enum><text>the ten most
frequently spoken languages in the United States, other than English, used by
consumers initiating remittance transfers, as may be determined by the
Director.</text>
</subparagraph></paragraph><paragraph id="HB9C7A4CC74544994AA0F5C5C9A5E14C5"><enum>(3)</enum><header>Use of automated
equipment</header><text>In establishing model forms under this subsection, the
Director shall consider the use by lessors of data processing or similar
automated equipment.</text>
</paragraph><paragraph id="H2E1FA069F18A4A4DA897D8D2B22C7FD0"><enum>(4)</enum><header>Use
optional</header><text>A remittance transfer provider may utilize a model
disclosure form established by the Director under this subsection for purposes
of compliance with this section, at the discretion of the remittance transfer
provider.</text>
</paragraph><paragraph id="H29B1A31E210445CF8AC1F306F459AE8D"><enum>(5)</enum><header>Effect of
use</header><text>Any remittance transfer provider that properly uses the
material aspects of any model disclosure form established by the Director under
this subsection shall be deemed to be in compliance with the disclosure
requirements to which the form relates.</text>
</paragraph></subsection><subsection id="HA3642B8FD17D4DD58B9143A9447A0BF0"><enum>(h)</enum><header>Regulation and
exemption authority</header><text display-inline="yes-display-inline">Notwithstanding any other provisions of
this title, the Director, in the sole discretion of the Director, in
consultation with relevant Federal and State government agencies may by
regulation exempt from one or more requirements of this section, any category
of remittance transfer provider if the Director determines that under
applicable Federal or State law that such category of remittance transfer
provider is subject to requirements substantially similar to those imposed
under this section or that such law gives greater protection and benefit to the
consumer, and that there is adequate provision for enforcement.</text>
</subsection><subsection id="H32E37CD284D04620962A36F0ACFC7098"><enum>(i)</enum><header>Applicability of
State law</header>
<paragraph id="H08B2107901AA4BF391D38296B74A4A21"><enum>(1)</enum><text>This section does
not annul, alter, affect, or exempt any person subject to the provisions of
this section from complying with other applicable Federal law and the laws of
any State relating to remittance transfers and remittance transfer providers,
except to the extent that those laws are inconsistent with the provisions of
this section, and then only to the extent of the inconsistency.</text>
</paragraph><paragraph id="H4812C893FF52487190517C3F11BD2387"><enum>(2)</enum><text>Notwithstanding
any other provisions of this title, the Director may determine whether such
inconsistencies exist. A State law is not inconsistent with this section if the
protection such law affords any consumer is greater than the protection
afforded by this section. If the Director determines that a State requirement
is inconsistent, remittance transfer providers shall incur no liability under
the law of that State for a good faith failure to comply with that law,
notwithstanding that such determination is subsequently amended, rescinded, or
determined by judicial or other authority to be invalid for any reason. This
section does not extend the applicability of any such law to any class of
persons or transactions to which it would not otherwise apply.</text>
</paragraph><paragraph id="HA7861CC437FE46CE881F743EFD6EC004"><enum>(3)</enum><text>This section does
not annul, alter, or affect the laws of any State relating to the licensing or
registration, supervision or examination of remittance transfer
providers.</text>
</paragraph><paragraph id="HFFA00CBF9DF3424188D384519EAAC329"><enum>(4)</enum><text>Nothing in this
section shall be construed as limiting the authority of a State attorney
general or State regulator to bring an action or other regulatory proceeding
arising solely under the law of that State.</text>
</paragraph></subsection><subsection id="H943C626A0EE04B0D9CE5D99C02026F61"><enum>(j)</enum><header>Federal Credit
Union Act amendment</header><text>Paragraph (12)(A) of section 107 of the
Federal Credit Union Act (12 U.S.C. 1757(12)(A)) is amended by inserting
<quote>and remittance transfers, as defined in section 4309 of the Consumer
Financial Protection Agency Act of 2009</quote> after <quote>and domestic
electronic fund transfers</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="HF6C57769B09D46A79A238E5D8D65B6D2"><enum>(k)</enum><header>Automated
clearinghouse system</header>
<paragraph id="H8855740EA1914038A2A91BEA900F04FA"><enum>(1)</enum><header>Expansion of
system</header><text>The Board of Governors of the Federal Reserve System shall
work with the Federal reserve banks to expand the use of the automated
clearinghouse system 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="HE3CCD174C0CF404CAAFE42D154A73B1E"><enum>(A)</enum><text>the volume and
dollar amount of remittance transfers to those countries;</text>
</subparagraph><subparagraph id="H558380FF13E9465EBD6A7086C4CDDB61"><enum>(B)</enum><text>the significance
of the volume of such transfers, relative to the external financial flows of
the receiving country; and</text>
</subparagraph><subparagraph id="HDF8E71A711824169B6080BCAD5B65141"><enum>(C)</enum><text>the feasibility of
such an expansion.</text>
</subparagraph></paragraph><paragraph id="HBD8B5BBF65F34D9680F63C4E0F4A0E71"><enum>(2)</enum><header>Report to the
Congress</header><text>Before the end of the 180-day period beginning on the
date of the enactment of this title, and on April 30 biennially thereafter, the
Board of Governors of the Federal Reserve System shall submit a report to the
Director, 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 section.</text>
</paragraph></subsection><subsection id="HCEF8A756DA744D49B2555CA6C2815CE4"><enum>(l)</enum><header>Regulatory
guidance on remittance transfers</header>
<paragraph id="H14778B8948C64E3E914000EF3A81DE00"><enum>(1)</enum><header>Provision of
guidelines to institutions</header><text>The Director shall provide guidelines
to all remittance transfer providers regarding—</text>
<subparagraph id="HFC546023937245A389B7094AC98844C2"><enum>(A)</enum><text>the offering of
low-cost remittance transfers;</text>
</subparagraph><subparagraph id="HBABABBCBC25B419F9635986782400EBE"><enum>(B)</enum><text>the availability
of agency services to remittance transfer providers;</text>
</subparagraph><subparagraph id="H8B042A6778714C28B909A3ACB50686A2"><enum>(C)</enum><text>compliance with
the provisions of this title; and</text>
</subparagraph><subparagraph id="H618D726EEC5C47F8B53892C6856E1EE9"><enum>(D)</enum><text>specific options
that allow remittance transfer providers to take advantage of automated
clearing systems, including the FedACH International Services offered by the
Board of Governors of the Federal Reserve System and the Federal reserve banks,
to transmit remittances at low cost.</text>
</subparagraph></paragraph><paragraph id="H3C83272464D64376BAA057E0BD3A1AF2"><enum>(2)</enum><header>Content of
guidelines</header><text>Guidelines provided to remittance transfer providers
under this section shall include—</text>
<subparagraph id="H0843DA6E466E416E90941F32D91D6831"><enum>(A)</enum><text>information as to
the methods of providing remittance transfer services;</text>
</subparagraph><subparagraph id="H4D6BAEE79EA846139B2086551B53DB39"><enum>(B)</enum><text>the potential
economic opportunities in providing low-cost remittance transfers; and</text>
</subparagraph><subparagraph id="HF9EAAC073B4B421884DB3AF0572DB20D"><enum>(C)</enum><text>the potential
value to depository institutions of broadening their financial bases to include
persons that use remittance transfers.</text>
</subparagraph></paragraph><paragraph id="H57AB8281A75641BEA23499537F8DD94A"><enum>(3)</enum><header>Assistance to
financial literacy commission</header><text>The Secretary of the Treasury and
each agency referred to in subsection (a) shall, as part of their duties as
members of the Financial Literacy and Education Commission, assist that
Commission in improving the financial literacy and education of consumers who
send remittances.</text>
</paragraph></subsection><subsection id="HD30EE1ACA1AC49F08E4E1F50D2E9BFE3"><enum>(m)</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 the enactment of this title, 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="H83419E01D4E042858FA8AB059B0A8DDB"><enum>(1)</enum><text>the manner in
which a consumer’s remittance history could be used to enhance a consumer’s
credit score;</text>
</paragraph><paragraph id="H78825DA08D5448FA9EC711FF18EECF9A"><enum>(2)</enum><text>the current legal
and business model barriers and impediments that impede the use of a consumer’s
remittance history to enhance the consumer’s credit score; and</text>
</paragraph><paragraph id="H71F4E9A0B5C44E9CA8BB2DEF7F3C6D27"><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 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
section s 919(a)(2)(D) and 919(a)(3) of the Electronic Fund Transfer Act (as
amended by subsection (a)).</text>
</paragraph></subsection><subsection id="H1BD80D6D096842139D1A72DE212B030C"><enum>(n)</enum><header>Effective
date</header><text>This section shall apply with respect to remittance
transfers made after the end of the 180-day period beginning on the date of the
enactment of this title.</text>
</subsection></section><section id="H9B19BDCF49ED453797BC9998C701DDEE"><enum>4310.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the designated transfer date.</text>
</section><section id="H34E4D062C98042A08AFF45E1687076C7"><enum>4311.</enum><header>No authority
to require the offering of financial products or services</header><text display-inline="no-display-inline">The Director may not prescribe any
regulation, issue any order or guidance, or take any other action, including
any enforcement action, the effect of which would be to require a covered
person to offer to any consumer a specific financial product or service.</text>
</section><section id="H1007A8869DB1491686B36F2F68B1677B"><enum>4312.</enum><header>Appraisal
independence requirements</header>
<subsection id="H4AC72E27DAFD4D83A9F8495DA6939B6F"><enum>(a)</enum><header>Promulgation of
new requirements</header><text display-inline="yes-display-inline">The Director
shall lead a Negotiated Rulemaking Committee under the Federal Advisory
Committee Act and the Negotiated Rulemaking Act to promulgate appraisal
independence requirements for residential loan purposes, and such Committee
shall promulgate such requirements not later than the end of the 60-day period
beginning on the date of the enactment of this title.</text>
</subsection><subsection id="HCDEA7973111E46BBBBDFF76D5325B797"><enum>(b)</enum><header>Certain
regulation requirements</header><text display-inline="yes-display-inline">Regulations promulgated by the Negotiated
Rulemaking Committee under this section—</text>
<paragraph id="H38A898D5C49E4D498EF2F243D58B31DC"><enum>(1)</enum><text>shall not prohibit
lenders, the Federal National Mortgage Association, or the Federal Home Loan
Mortgage Corporation from accepting any appraisal report completed by an
appraiser selected, retained, or compensated in any manner by a mortgage loan
originator—</text>
<subparagraph id="HC6C5A32ED0524C8BB4D44BFF224B537A"><enum>(A)</enum><text>licensed or
registered in accordance with section 1501 et seq. of the SAFE Mortgage
Licensing Act of 2008; and</text>
</subparagraph><subparagraph id="HDE231B7A78BA461B865F3C776EC050CF"><enum>(B)</enum><text>subject to State
or Federal laws that make it unlawful for a mortgage loan originator to make
any payment, threat, or promise, directly or indirectly, to any appraiser of a
property, for the purposes of influencing the independent judgment of the
appraiser with respect to the value of the property, except that nothing in
this section shall prohibit a person with an interest in a real estate
transaction from asking an appraiser to—</text>
<clause id="H420B1CAA83D442E88B85EE3C67013515"><enum>(i)</enum><text>consider
additional, appropriate property information;</text>
</clause><clause id="H8B5115EB4D224E03AC9574C164A3CAA8"><enum>(ii)</enum><text>provide further
detail, substantiation, or explanation for the appraiser’s value conclusion;
or</text>
</clause><clause id="H5E853E01EE244E42BBDA434A23D9C95F"><enum>(iii)</enum><text>correct errors
in the appraisal report; and</text>
</clause></subparagraph></paragraph><paragraph id="H4B6D8EDDC4D3480C972DF3C033573C95"><enum>(2)</enum><text>shall include a
requirement that lenders and their agents compensate appraisers at a rate that
is customary and reasonable for appraisal services performed in the market area
of the property being appraised.</text>
</paragraph></subsection><subsection id="HADFCDAD1E22F4371968E4668ED4D0485"><enum>(c)</enum><header>Sunset</header><text display-inline="yes-display-inline">Effective on the date the appraisal
independence requirements are promulgated pursuant to subsection (a), 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></section></subtitle><subtitle id="H6B9FC432579340C698B028226261FB5F"><enum>D</enum><header>Preservation of
State Law</header>
<section id="H437B6E77ACD24BD89BD4D47B675AD1D1"><enum>4401.</enum><header>Relation to
State law</header>
<subsection id="H865BBEA99CD04FA3B65E56EF27830394"><enum>(a)</enum><header>In
general</header>
<paragraph id="H94A892D143424D908B60840068FF04E8"><enum>(1)</enum><header>Rule of
construction</header><text>This title shall not be construed as annulling,
altering, or affecting, or exempting any person subject to the provisions of
this title from complying with, the laws, regulations, orders, or
interpretations, in effect in any State, except to the extent that such
statute, regulation, order, or interpretation is inconsistent with the
provisions of this title and then only to the extent of the
inconsistency.</text>
</paragraph><paragraph id="H6FE58224C52D4A93BACA6D1601284C08"><enum>(2)</enum><header>Greater
protection under state law</header><text display-inline="yes-display-inline">For the 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 such statute,
regulation, order, or interpretation affords 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 Agency on its
own motion or in response to a nonfrivolous petition initiated by any
interested person.</text>
</paragraph></subsection><subsection id="H86E7625535534EA0B5E829E1FAF8DB5B"><enum>(b)</enum><header>Relation to
other provisions of enumerated consumer laws that relate to state
law</header><text display-inline="yes-display-inline">No provision of this
title, except as provided in section 4803, 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></section><section id="H3D9D9F29E6F248EE9B4AE3F0DC83161B"><enum>4402.</enum><header>Preservation
of enforcement powers of States</header>
<subsection id="H69251883A89944E7B378149CF139AA98"><enum>(a)</enum><header>In
general</header>
<paragraph id="HBD3D6405A0F848868C73FAA7D3E51A14"><enum>(1)</enum><header>Action by
state</header><text>Any State attorney general may bring a civil action in the
name of such State, as parens patriae on behalf of natural persons residing in
such State, in any district court of the United States or State court having
jurisdiction of the defendant, to secure monetary or equitable relief for
violation of any provisions of this title or regulations issued
thereunder.</text>
</paragraph><paragraph id="H3E18B0C92DAA406190A65D42B90AEEDA"><enum>(2)</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="H3AF0488401E745CA844B438DE150699A"><enum>(b)</enum><header>Consultation
required</header>
<paragraph id="H3CACD2AB05D047AE90C71B11CEF71529"><enum>(1)</enum><header>Notice</header>
<subparagraph id="H7220ECE5275444F7A3F38D15E3413A61"><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 to enforce
any provision of this title, including any regulation prescribed by the
Director 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 Agency, or the Agency’s
designee.</text>
</subparagraph><subparagraph id="H75382706143F4FA8957D82E8895FCCEE"><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 Agency immediately upon instituting the action or
proceeding.</text>
</subparagraph><subparagraph id="HD37FBDE3F4C34081AD960BC0D96E03E7"><enum>(C)</enum><header>Contents of
notice</header><text>The notification required under this section shall, at a
minimum, describe—</text>
<clause id="HEA56B49107344C3FA814AA1D1240FE3C"><enum>(i)</enum><text>the
identity of the parties;</text>
</clause><clause id="H710E7CCDDB0842E796F4A68E9B5AE2F6"><enum>(ii)</enum><text>the
alleged facts underlying the proceeding; and</text>
</clause><clause id="H03B1F31B3AB143D294D16655C38E1C1C"><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 Director
or Agency or another Federal agency.</text>
</clause></subparagraph></paragraph><paragraph id="HBB00E477EA6F48B8B7809BC9CCB8EC70"><enum>(2)</enum><header>Agency
response</header><text>In any action described in paragraph (1), the Agency
may—</text>
<subparagraph id="HA52C3662A1054257B8ABA17FEED09C35"><enum>(A)</enum><text>intervene in the
action as a party;</text>
</subparagraph><subparagraph id="H8584D1BF5EA641528437AA1D1D83200F"><enum>(B)</enum><text>upon
intervening—</text>
<clause id="HBCB1B57A146B41E0838FD0F0B8F7F4B7"><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="HA1F1A55168D54FE5BE9D36E60934DFF7"><enum>(ii)</enum><text>be
heard on all matters arising in the action; and</text>
</clause></subparagraph><subparagraph id="H54367A303F004483932F5EB3689B60FE"><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="H8A68DD50C88745EA8DF7FCD99D7017FE"><enum>(c)</enum><header>Regulations</header><text>The
Director 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="H6F7D16E8D5F14B69B9A3A7853FB86719"><enum>(d)</enum><header>Preservation of
state authority</header>
<paragraph id="H67DFD7A8D70441B2BE1F53ED76AE4027"><enum>(1)</enum><header>State
claims</header><text display-inline="yes-display-inline">No provision of this
section shall be construed as limiting the authority of a State attorney
general or State regulator to bring an action or other regulatory proceeding
arising solely under the law of that State.</text>
</paragraph><paragraph id="HB6CF326C80584C8DAE259CDF01FB702D"><enum>(2)</enum><header>State securities
regulators</header><text display-inline="yes-display-inline">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="H27FD4D726FA3450F8571A580A1503143"><enum>(3)</enum><header>State insurance
regulators</header><text display-inline="yes-display-inline">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 id="HB34857B5E6594E30A91D051F2C87063D"><enum>4403.</enum><header>Preservation
of existing contracts</header><text display-inline="no-display-inline">This
title, and regulations, orders, guidance, and interpretations prescribed,
issued, and established by the Agency, 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 the enactment of this title, 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="H12DD7629262E4340AC0E487F0FD2F0CB"><enum>4404.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="HA6C2ACA9D42F434C9E330D1F9A6BF392"><enum>(a)</enum><header>In
general</header><text>Chapter one of title LXII of the Revised Statutes of the
United States (12 U.S.C. 21 et 1 seq.) is amended by inserting after section
5136B the following new section:</text>
<quoted-block id="H40B42315451941A18303E4CD41BF16A3" style="OLC">
<section id="H43A10CE12D014A699936F0A8D9E08859"><enum>5136C.</enum><header>State law
preemption standards for national banks and subsidiaries clarified</header>
<subsection id="HC671B039384841ED9779D2F7BDA2A154"><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="H80BBB41C3447441AA139340D882B09BC"><enum>(1)</enum><header>National
bank</header><text>The term <quote>national bank</quote> includes—</text>
<subparagraph id="H88660C2815764823AF04299555E08163"><enum>(A)</enum><text>any bank organized
under the laws of the United States; and</text>
</subparagraph><subparagraph id="H167874C564394EA8A217EA6EDA3EE562"><enum>(B)</enum><text>any Federal branch
established in accordance with the International Banking Act of 1978.</text>
</subparagraph></paragraph><paragraph id="H66C91903F85F4FB799BD51B4B9E3CACF"><enum>(2)</enum><header>State consumer
financial laws</header><text display-inline="yes-display-inline">The term
<quote>State consumer financial law</quote> means a State law that does not
directly or indirectly discriminate against national banks and that 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="H000A033DBA76498CB3FA017F10522097"><enum>(3)</enum><header>Other
definitions</header><text>The terms <quote>affiliate</quote>,
<quote>subsidiary</quote>, <quote>includes</quote>, and
<quote>including</quote> have the same meaning as in section 3 of the Federal
Deposit Insurance Act.</text>
</paragraph></subsection><subsection id="H85BCC4F125B04CCC808008A3006BDB83"><enum>(b)</enum><header>Preemption
standard</header>
<paragraph id="H8AAFC93244A0482289DB6FD0FBD1001F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">National banks shall
generally comply with State laws. State laws are preempted only if—</text>
<subparagraph id="H996D8F391BB24B7589F60D2E1CADFBC8"><enum>(A)</enum><text>application of a
state 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 id="HE5AB3E5B547A4180A7CD4C98231630EE"><enum>(B)</enum><text display-inline="yes-display-inline">the Comptroller of the Currency determines
by regulation or order on a case-by-case basis that a State law prevents or
significantly interferes with the ability of an insured depository institution
chartered as national bank to engage in the business of banking; or</text>
</subparagraph><subparagraph id="HF96385A1EAE143F5A62B955FA40899CE"><enum>(C)</enum><text>the State law is
preempted by Federal law other than this Act.</text>
</subparagraph></paragraph><paragraph id="H8E892268857E47E4A6FB322CC2667570"><enum>(2)</enum><header>Savings
clause</header><text>This Act does not preempt or alter the applicability of
any State law to any national bank subsidiary, affiliate, or other entity that
is not an insured depository institution chartered as a national bank.</text>
</paragraph><paragraph id="H6A999272E9B64182A5CA27DF24748F28"><enum>(3)</enum><header>Rule of
construction</header><text>This Act does not occupy the field in any area of
State law and a court shall review any claim that a State law is preempted by
this Act as a matter of law and without deference to any agency claim that a
State law is preempted under this Act.</text>
</paragraph><paragraph id="HBABDFAE7904A4E18BB87B1F43DAB5623"><enum>(4)</enum><header>Review of
preemption decisions</header><text>A court shall review any claim that a State
law is preempted by this Act as a matter of law and without deference to any
agency claim that a state law is preempted under this Act. Nothing in this
subsection shall affect the deference that a court affords to the Comptroller
of the Currency regarding the meaning or interpretation of the National Bank
Act or other Federal laws.</text>
</paragraph></subsection><subsection id="H715E833ACD8D41698587E76392C46789"><enum>(c)</enum><header>Substantial
evidence</header><text display-inline="yes-display-inline">No regulation 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 that the provision prevents or significantly interferes with
the national bank’s exercise of a power explicitly granted by the
Congress.</text>
</subsection><subsection id="HDED5A62F1FAB4002A2ED58A5560071DB"><enum>(d)</enum><header>Other Federal
laws</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, the Comptroller of the Currency may not prescribe
regulation pursuant to subsection (b)(1)(B) until the Comptroller of the
Currency, after consultation with the Consumer Financial Protection Agency,
makes a finding, in writing, that a Federal law provides a substantive
standard, applicable to a national bank, which regulates the particular
conduct, activity, or authority that is subject to such provision of the State
consumer financial law.</text>
</subsection><subsection id="H38D20F3546C44643AF9E9865487A97F3"><enum>(e)</enum><header>Periodic review
of preemption determinations</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 timely
propose to continue, amend or rescind it, as may be appropriate, in accordance
with the procedures set forth in subsections (a) and (b) of section 5244 (12
U.S.C. 43(a)–(b)).</text>
</subsection><subsection id="H0AA102CED8104677963616CDE0140500"><enum>(f)</enum><header>Application of
state consumer financial law to subsidiaries and
affiliates</header><text>Notwithstanding any provision of this title, a State
consumer financial law shall apply to a subsidiary or affiliate of 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></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H07ED67B33AC74566A740737C4C7208E9"><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="H687A5E051FA04E80BEA50FCFAECCCF95" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">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="HE1897002CD18408681F2C21947226B59"><enum>4405.</enum><header>Visitorial
standards</header><text display-inline="no-display-inline">Section 5136C of the
Revised Statutes of the United States (as added by section 4404) is amended by
adding at the end the following new subsections:</text>
<quoted-block id="H891AC53A49DA4EDBAD567DD3F650C2C6" style="OLC">
<subsection id="HFECD165218EA4967880413C3679453C9"><enum>(g)</enum><header>Visitorial
powers</header>
<paragraph id="H55FB879DE9D641DD915A47DD5C531478"><enum>(1)</enum><header>Rule of
construction</header><text>No provision of this title which relates to
visitorial powers or otherwise limits or restricts the supervisory,
examination, or regulatory 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 any
action in any court of appropriate jurisdiction—</text>
<subparagraph id="HB3FBFBD07339463DBF4236527C26C9F0"><enum>(A)</enum><text>to require a
national bank to produce records relative to the investigation of violations of
State consumer law, or Federal consumer laws;</text>
</subparagraph><subparagraph id="HCB4260D6FEE5437A98412AEAE5837D04"><enum>(B)</enum><text>to enforce any
applicable Federal or State law, as authorized by such law; or</text>
</subparagraph><subparagraph id="HD3A6C9E2371D4CAEB69B1B66DBF2E766"><enum>(C)</enum><text>on behalf of
residents of such State, to enforce any applicable provision of any Federal or
State law against a national bank, as authorized by such law, or to seek relief
and recover damages for such residents from any violation of any such law by
any national bank.</text>
</subparagraph></paragraph><paragraph id="H5C5A04F106E548D387B1639BB2345A30"><enum>(2)</enum><header>Consultation</header><text display-inline="yes-display-inline">The attorney general (or other chief law
enforcement officer) of any State shall consult with the head of the agency
responsible for chartering and regulating national banks before acting under
paragraph (1).</text>
</paragraph></subsection><subsection id="H40F11C85B05E41E7A60E7DA2CFE99B45"><enum>(h)</enum><header>Enforcement
actions</header><text display-inline="yes-display-inline">The ability of the
head of the agency responsible for chartering and regulating national banks to
bring an enforcement action under this title or section 5 of the Federal Trade
Commission Act shall not be construed as precluding private parties from
enforcing rights granted under Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H1DE6029E0F234AD1A229F8259B2B3C5E"><enum>4406.</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 is amended by inserting after subsection (h) (as added by section
4405) the following new subsection:</text>
<quoted-block id="H1FD8A5E4C81B44689C3CA7D75F9359D6" style="OLC">
<subsection id="H69F8A25E83FA43B09E4702E0A06462D7"><enum>(i)</enum><header>Clarification of
law applicable to nondepository institution subsidiaries and affiliates of
national banks</header>
<paragraph id="H03297F49F9D944879AC58BEB782051F2"><enum>(1)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<subparagraph id="H4AFC03879F5643FC91920B5925FFAC58"><enum>(A)</enum><header>Depository
institution, subsidiary, affiliate</header><text>The terms <quote>depository
institution</quote>, <quote>subsidiary</quote>, and <quote>affiliate</quote>
have the same meanings as in section 3 of the Federal Deposit Insurance
Act.</text>
</subparagraph><subparagraph id="H7BF4B9307AED4C1D8E3B9F7753C25350"><enum>(B)</enum><header>Nondepository
institution</header><text>The term <quote>nondepository institution</quote>
means any entity that is not a depository institution.</text>
</subparagraph></paragraph><paragraph id="HF22DA2E9A04E469585AF0B2B52028FBB"><enum>(2)</enum><header>In
general</header><text>No provision of this title shall be construed as
annulling, altering, or affecting the applicability of State law to any
nondepository institution, subsidiary, other affiliate, or agent of a national
bank.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA803E7AA3154422EA1461E369E06907D"><enum>4407.</enum><header>State law
preemption standards for Federal savings associations and subsidiaries
clarified</header>
<subsection id="H084BECD41F3748E099FA4262B212E06F"><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 id="HA54DFE48C6F44C20A17C9F53158A5E18" style="OLC">
<section id="H480944A1C0764B958A7CB247ED1D8176"><enum>6.</enum><header>State law
preemption standards for Federal savings associations clarified</header>
<subsection id="H16B77CB711754542BFF4D8B0E4AC4120"><enum>(a)</enum><header>State consumer
financial law defined</header><text display-inline="yes-display-inline">For
purposes of this section, the term <quote>State consumer financial law</quote>
means a State law that does not directly or indirectly discriminate against
Federal savings associations and that regulates the manner, content, or terms
and conditions of any financial transaction (as may be authorized for Federal
savings associations to engage in), or any account related thereto, with
respect to a consumer.</text>
</subsection><subsection id="HEA7B35ED467643DD93FE46F1EC9F57A1"><enum>(b)</enum><header>Preemption
standard</header>
<paragraph id="H90A90B6D6C254162B1D70B25984B9A64"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Federal savings
associations shall generally comply with State laws. State laws are preempted
only if—</text>
<subparagraph id="H8FF3244E638B4D90AE0A59B082EBA352"><enum>(A)</enum><text display-inline="yes-display-inline">application of a state law would have a
discriminatory effect on Federal savings associations in comparison with the
effect of the law on a bank chartered by that State;</text>
</subparagraph><subparagraph id="H3CCD343C353E49BF9007ACC7D4A6F138"><enum>(B)</enum><text display-inline="yes-display-inline">the Director of the Office of Thrift
Supervision determines by regulation or order on a case-by-case basis that a
State law prevents or significantly interferes with the ability of an insured
depository institution chartered as a Federal savings associations to engage in
the business of banking; or</text>
</subparagraph><subparagraph id="H5BBE97C81D1B457CBFF9211654D5540F"><enum>(C)</enum><text>the State law is
preempted by Federal law other than this Act.</text>
</subparagraph></paragraph><paragraph id="HBDFB028B94A74BAAAF1FA97782292152"><enum>(2)</enum><header>Savings
clause</header><text display-inline="yes-display-inline">This Act does not
preempt or alter the applicability of any State law to any Federal savings
associations subsidiary, affiliate, or other entity that is not an insured
depository institution chartered as a national bank.</text>
</paragraph><paragraph id="HC4D84BA5352A42F4B2CF0F5F421960FA"><enum>(3)</enum><header>Rule of
construction</header><text>This Act does not occupy the field in any area of
State law and a court shall review any claim that a State law is preempted by
this Act as a matter of law and without deference to any agency claim that a
State law is preempted under this Act.</text>
</paragraph><paragraph id="H2D0804E95B224EF785B9043132A2C34B"><enum>(4)</enum><header>Review of
preemption decisions</header><text display-inline="yes-display-inline">A court
shall review any claim that a State law is preempted by this Act as a matter of
law and without deference to any agency claim that a state law is preempted
under this Act. Nothing in this subsection shall affect the deference that a
court affords to the Director of the Office of Thrift Supervision regarding the
meaning or interpretation of the National Bank Act or other Federal
laws.</text>
</paragraph></subsection><subsection id="HB58F8D9C5E8A40C185103EBA28AF61A7"><enum>(c)</enum><header>Other Federal
law</header><text>Notwithstanding any other provision of law, the Director of
the Office of Thrift Supervision may not prescribe any regulation pursuant to
subsection (b)(1)(B) until such Director, after consultation with the Consumer
Financial Protection Agency, makes a finding, in writing, that a Federal law
provides a substantive standard, applicable to a Federal savings association,
which regulates the particular conduct, activity, or authority that is subject
to such provision of the State consumer financial law.</text>
</subsection><subsection id="H2903F7C7B5D14703B6EADC1FD130001D"><enum>(d)</enum><header>Substantial
evidence</header><text>No regulation prescribed by the Director of the Office
of Thrift Supervision issued under subsection (b)(1)(B) shall be interpreted or
applied so as to invalidate, or otherwise declare inapplicable to a Federal
savings association, the provision of the State consumer financial law unless
substantial evidence, made on the record of the proceeding, supports the
specific finding that the provision prevents or significantly interferes with
the Federal savings association’s exercise of a power explicitly granted by the
Congress.</text>
</subsection><subsection id="H2C66F4FCAD6843E98CCA15BEC891E684"><enum>(e)</enum><header>Periodic review
of preemption determinations</header><text display-inline="yes-display-inline">The Director of the Office of Thrift
Supervision 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 timely
propose to continue, amend or rescind it, as may be appropriate, in accordance
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>
</subsection><subsection id="H25F1E24F656340EA9CAC6389337153DE"><enum>(f)</enum><header>Application of
state consumer financial law to subsidiaries and
affiliates</header><text>Notwithstanding any provision of this Act, a State
consumer financial law shall apply to a subsidiary or affiliate of a Federal
savings association to the same extent that the State consumer financial law
applies to any person, corporation, or other entity subject to such State law
and consistent with Federal
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H08F10D9C36AC4F518156B1AEEE3DF7F5"><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 id="H002F01A1F6174E18929EFDB28D216941" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 6. State law preemption standards for
Federal savings associations
clarified.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HCD79AA77D9CE42F797D8C05ADCA8D25A"><enum>4408.</enum><header>Visitorial
standards</header><text display-inline="no-display-inline">Section 6 of the
Home Owners’ Loan Act (as added by section 4407 of this title) is amended by
adding at the end the following new subsections:</text>
<quoted-block id="HEC6A6CF0860E4F07BEDDF2E405736D78" style="OLC">
<subsection id="HFA78C34A56B3486EB4D181A8D5C8F970"><enum>(g)</enum><header>Visitorial
powers</header>
<paragraph id="H3D748604C5774C9DABA13CE4B7B41BFA"><enum>(1)</enum><header>In
general</header><text>No provision of this Act shall be construed as limiting
or restricting the authority of any attorney general (or other chief law
enforcement officer) of any State to bring any action in any court of
appropriate jurisdiction—</text>
<subparagraph id="HC08C46C075C04B70B8F7CD6741B05D80"><enum>(A)</enum><text>to require a
Federal savings association to produce records relative to the investigation of
violations of State consumer law, or Federal consumer laws;</text>
</subparagraph><subparagraph id="H5F33587DFF974C0C81140C16548266F5"><enum>(B)</enum><text>to enforce any
applicable Federal or State law, as authorized by such law; or</text>
</subparagraph><subparagraph id="HE6A88E965C994C24957C079794D48B3D"><enum>(C)</enum><text>on behalf of
residents of such State, to enforce any applicable provision of any Federal or
State law against a Federal savings association, as authorized by such law, or
to seek relief and recover damages for such residents from any violation of any
such law by any Federal savings association.</text>
</subparagraph></paragraph><paragraph id="H3E80D83118DC41F8A7F629010C65912E"><enum>(2)</enum><header>Consultation</header><text display-inline="yes-display-inline">The attorney general (or other chief law
enforcement officer) of any State shall consult with the Director or any
successor agency before acting under paragraph (1).</text>
</paragraph></subsection><subsection id="H45E9A8C1FBE54CE3863D08B4FB860A79"><enum>(h)</enum><header>Enforcement
actions</header><text display-inline="yes-display-inline">The ability of the
Director or any successor officer or agency to bring an enforcement action
under this Act or section 5 of the Federal Trade Commission Act shall not be
construed as precluding private parties from enforcing rights granted under
Federal or State law in the
courts.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9FEF350C338C4EB5971CD3C264D0E961"><enum>4409.</enum><header>Clarification
of law applicable to nondepository institution subsidiaries</header><text display-inline="no-display-inline">Section 6 of the Home Owners’ Loan Act is
amended by adding after subsection (h) (as added by section 4408) the following
new subsection:</text>
<quoted-block id="H590EB9AEC17043E39D4BB5ACC5116FEC" style="OLC">
<subsection id="HBB3DD261821541AFA3F5F062EB477D9A"><enum>(i)</enum><header>Clarification of
law applicable to nondepository institution subsidiaries and affiliates of
federal savings associations</header>
<paragraph id="HE0DD341D8ED249A18C80D67672AD5781"><enum>(1)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<subparagraph id="H4A3F326417334683B28B09F9552CF562"><enum>(A)</enum><header>Depository
institution, subsidiary, affiliate</header><text>The terms <quote>depository
institution</quote>, <quote>subsidiary</quote>, and <quote>affiliate</quote>
have the same meanings as in section 3 of the Federal Deposit Insurance
Act.</text>
</subparagraph><subparagraph id="HD1F1055C29E44BA1B9B781444B8F5CD2"><enum>(B)</enum><header>Nondepository
institution</header><text>The term <quote>nondepository institution</quote>
means any entity that is not a depository institution.</text>
</subparagraph></paragraph><paragraph id="HD5E0F0ED093B40DBA0633C5734E0D019"><enum>(2)</enum><header>In
general</header><text>No provision of this title shall be construed as
preempting the applicability of State law to any nondepository institution,
subsidiary, other affiliate, or agent of a Federal savings
association.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFBBADBBE47E14A31BD0142BF10A16076"><enum>4410.</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="H0B09258603BF4976AB2DF2B6DA36D4CF"><enum>E</enum><header>Enforcement
Powers</header>
<section id="H21AF2C81276648249D605AFE453E0ADF"><enum>4501.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following
definitions shall apply:</text>
<paragraph id="H754B05B3119A47E7985FC4904E86CEF7"><enum>(1)</enum><header>Civil
investigative demand and demand</header><text>The terms <quote>civil
investigative demand</quote> and <quote>demand</quote> mean any demand issued
by the Agency.</text>
</paragraph><paragraph id="HC8E3DE7FB43C468C86A4CED41C06D29E"><enum>(2)</enum><header>Agency
investigation</header><text>The term <quote>Agency investigation</quote> means
any inquiry conducted by an Agency investigator for the purpose of ascertaining
whether any person is or has been engaged in any conduct that violates this
title, any enumerated consumer law, or any regulation prescribed or order
issued by the Director under this title or under the authorities transferred
under subtitles F and H.</text>
</paragraph><paragraph id="H0221FA23774843089D0C17D05550CE49"><enum>(3)</enum><header>Agency
investigator</header><text>The term <quote>Agency investigator</quote> means
any attorney or investigator employed by the Agency who is charged with the
duty of enforcing or carrying into effect any provisions of this title, any
enumerated consumer law, the authorities transferred under subtitles F and H,
or any regulation prescribed or order issued under this title or pursuant to
any such authority by the Director.</text>
</paragraph><paragraph id="H829268473C164A189A0836E619C84E9F"><enum>(4)</enum><header>Custodian</header><text>The
term <quote>custodian</quote> means the custodian or any deputy custodian
designated by the Agency.</text>
</paragraph><paragraph id="HB405D9C8AD3E4B4D8EE5F2C3BB6A0CE0"><enum>(5)</enum><header>Documentary
material</header><text display-inline="yes-display-inline">The term
<quote>documentary material</quote> includes the original or any copy of any
book, document, record, report, memorandum, paper, communication, tabulation,
chart, log, electronic file, or other data or data compilations stored in any
medium.</text>
</paragraph><paragraph id="HDB8E954C3B1041348FF5893C127D2387"><enum>(6)</enum><header>Violation</header><text>The
term <quote>violation</quote> means any act or omission that, if proved, would
constitute a violation of any provision of this title, any enumerated consumer
law, any law for which authorities were transferred under subtitles F and H, or
of any regulation prescribed or order issued by the Director under this title
or pursuant to any such authority.</text>
</paragraph></section><section id="HCBBD0CD34DD2453F826C74371F7E5F0A"><enum>4502.</enum><header>Investigations
and administrative discovery</header>
<subsection id="HE2BAB1A736E0448A909992B050C52759"><enum>(a)</enum><header>Joint
investigations</header>
<paragraph id="H6D16D689C36240B59E52935972AE6400"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Agency or, where
appropriate, an Agency representative may engage in joint investigations and
requests for information.</text>
</paragraph><paragraph id="H1EE10FD0158544098D2A86E4EA9D1B30"><enum>(2)</enum><header>Fair
lending</header><text display-inline="yes-display-inline">The authority under
paragraph (1) includes matters relating to fair lending, and where appropriate,
joint investigations and requests for information with the Secretary of Housing
and Urban Development, the Attorney General, or both.”</text>
</paragraph></subsection><subsection id="H6336BBF8B8FA4090800CDD2903025D40"><enum>(b)</enum><header>Subpoenas</header>
<paragraph id="H3D1F2024DE20408F872E6722E2D1AA46"><enum>(1)</enum><header>In
general</header><text>The Agency or an Agency 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="HDD37740305404A7F9BDD1FD29FE52579"><enum>(2)</enum><header>Failure to
obey</header><text>In 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 Agency or an Agency investigator
and after notice to such person, shall have jurisdiction to issue an order
requiring such person to appear and give testimony or to appear and produce
documents or other material, or both.</text>
</paragraph><paragraph id="HA036A7B80B06499DBBC89816DEE61CE0"><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="H48FB4E0DC84D4C99A48596DD626904DC"><enum>(c)</enum><header>Demands</header>
<paragraph id="HFCD40AE56A8A42C88BBF0F544D40827B"><enum>(1)</enum><header>In
general</header><text>Whenever the Agency 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
Agency may, before the institution of any proceedings under this title or under
any enumerated consumer law or pursuant to the authorities transferred under
subtitles F and H, issue in writing, and cause to be served upon such person, a
civil investigative demand requiring such person to—</text>
<subparagraph id="H085FC090E4C24C6C9705AEB78CD83DE0"><enum>(A)</enum><text display-inline="yes-display-inline">produce such documentary material for
inspection and copying or reproduction in the form or medium requested by the
Agency;</text>
</subparagraph><subparagraph id="HED41DDE5E9C84EC7B9CCF14C31E7E649"><enum>(B)</enum><text>submit such
tangible things;</text>
</subparagraph><subparagraph id="H529CB28E96E34C96BF981281366FE799"><enum>(C)</enum><text>file written
reports or answers to questions;</text>
</subparagraph><subparagraph id="HEBAF86C0D0F243DEB82CE09EB2F46ADD"><enum>(D)</enum><text>give oral
testimony concerning documentary material or other information; or</text>
</subparagraph><subparagraph id="H63D4C7AB52DF42ABA78A69B687A5FA3A"><enum>(E)</enum><text>furnish any
combination of such material, answers, or testimony.</text>
</subparagraph></paragraph><paragraph id="H5203F04C147B4016B2E696350F1400B5"><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="HDF841697441646B6AD9986116B2DE3F5"><enum>(3)</enum><header>Production of
documents</header><text>Each civil investigative demand for the production of
documentary material shall—</text>
<subparagraph id="H81010037A849415B84A47F5F7F0BD8DB"><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="H17622A18FDCC4576A6723CDDA87FA967"><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="HF200C3A9B5844CC4848BC042F334B332"><enum>(C)</enum><text>identify the
custodian to whom such material shall be made available.</text>
</subparagraph></paragraph><paragraph id="HD86852684B7E44F49824486423814CE2"><enum>(4)</enum><header>Production of
things</header><text>Each civil investigative demand for the submission of
tangible things shall—</text>
<subparagraph id="HF2748C728BF04EA38C699F910796CC2A"><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="HC0B615851B0240D5B00E44EB90867AA1"><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="H280015A13A594C7D964EF151C4924770"><enum>(C)</enum><text>identify the
custodian to whom such things shall be submitted.</text>
</subparagraph></paragraph><paragraph id="HCFEF48CA6F15436E9A1392D014FD58F3"><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="H2ECF0C6DDD214AC091D3A25A5EA18291"><enum>(A)</enum><text>propound with
definiteness and certainty the reports to be produced or the questions to be
answered;</text>
</subparagraph><subparagraph id="H8F215C0ACB8E4C8286EB405E5E0440DB"><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="HF40E60EA80D5455A8E3567D9190387D6"><enum>(C)</enum><text>identify the
custodian to whom such reports or answers shall be submitted.</text>
</subparagraph></paragraph><paragraph id="H8662E4F91C444CB38BB54A56EF73C24F"><enum>(6)</enum><header>Oral
testimony</header><text>Each civil investigative demand for the giving of oral
testimony shall—</text>
<subparagraph id="HDD0B3D56FC404CABA43573C4507BC5A8"><enum>(A)</enum><text>prescribe a date,
time, and place at which oral testimony shall be commenced; and</text>
</subparagraph><subparagraph id="H8D1485096CCD4197BF2F9D87158060B1"><enum>(B)</enum><text>identify a Agency
investigator who shall conduct the investigation and the custodian to whom the
transcript of such investigation shall be submitted.</text>
</subparagraph></paragraph><paragraph id="HDAECD6BF79EC4780AF86DC006C2E9736"><enum>(7)</enum><header>Service</header>
<subparagraph id="HE2C845FAC3814A2AB4EA44B1E6B06501"><enum>(A)</enum><text>Any civil
investigative demand may be served by any Agency investigator at any place
within the territorial jurisdiction of any court of the United States.</text>
</subparagraph><subparagraph id="HB795394BF03A4B32B6106B79ED0344CA"><enum>(B)</enum><text>Any such demand or
any enforcement petition filed under this section may be served upon any person
who is not 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 in a foreign nation.</text>
</subparagraph><subparagraph id="H7F69E2A5174A4633A7FC8B9431340A63"><enum>(C)</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>
</subparagraph></paragraph><paragraph id="H2955C6F2C19F497E8D796CAFA4B7F881"><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="H6361CF2087C14DDA977BC82E8672FC42"><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="H8F4D66B2F2FC48AD9E9485F3E49858F9"><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="H5B1E842E7602457AA0FEEC1B2D253661"><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 its principal office
or place of business.</text>
</subparagraph></paragraph><paragraph id="H9BBFC0C696964AF2B936A03EAE6397CF"><enum>(9)</enum><header>Proof of
service</header>
<subparagraph id="H9F3EB03C58264FFEB03C02E029EBF708"><enum>(A)</enum><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="HD14EA15AF71841E7ADE333D4A0F63E4C"><enum>(B)</enum><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="HDF30049EA5104211B04ACBF6DEA2F112"><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="H3D56170CD4964C5A94D44340266BCA1B"><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="H021804BFDAF948488B6A382F85F4C151"><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="H2901C6468FEE4A1A99C20EAFC41EE0CC"><enum>(13)</enum><header>Testimony</header>
<subparagraph id="H39F6CF89C6B4485A8567D2C13CF1CED5"><enum>(A)</enum><header>Procedure</header>
<clause id="HA6EBC045BF8F4EA1BAFE0BF66690635E"><enum>(i)</enum><header>Oath and
recordation</header><text>Any Agency investigator 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
investigator, record the testimony of the witness.</text>
</clause><clause id="HDAA83F3BB64344409ADEC0F0B3BFD242"><enum>(ii)</enum><header>Transcriptions</header><text>The
testimony shall be taken stenographically and transcribed.</text>
</clause><clause id="HB7D9683B46734B3CBEDD5C6B4734E310"><enum>(iii)</enum><header>Copy to
custodian</header><text>After the testimony is fully transcribed, the Agency
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="H37C564EFD1734F51A63EAE2421594D65"><enum>(B)</enum><header>Parties
present</header><text display-inline="yes-display-inline">Any Agency
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 such person, the officer before whom the
testimony is to be taken, an investigator or representative of an agency with
which the Agency is engaged in a joint investigation, and any stenographer
taking such testimony.</text>
</subparagraph><subparagraph id="H1A6F6DE8DC60449E9A8E1E8D8B178C1E"><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 Agency investigator before whom the oral testimony of
such person is to be taken and such person.</text>
</subparagraph><subparagraph id="H17E890404D02472C9F8F004E51DC7539"><enum>(D)</enum><header>Attorney
representation</header>
<clause id="HF63F4862FD2B47C38D0F9C24B85F9457"><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="HE5DDD9465A174989AE2F2C7247B44437"><enum>(ii)</enum><header>Confidential
advice</header><text>The attorney may advise the person summoned, 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="HAC132E34B04340CBB91C00102A5719A0"><enum>(iii)</enum><header>Objections</header><text>The
person summoned or the attorney may object on the record to any question, in
whole or in part, and shall briefly state for the record the reason for the
objection.</text>
</clause><clause id="H47D7F60E19494A6B9624D56D56F45C97"><enum>(iv)</enum><header>Refusal to
answer</header><text display-inline="yes-display-inline">An objection may
properly be made, received, and entered upon the record when it is claimed that
the person summoned 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 shall not otherwise interrupt the oral
examination, directly or through such person’s attorney.</text>
</clause><clause id="H81F651ED59384E5A97AB825DB6D7F8B5"><enum>(v)</enum><header>Petition for
order</header><text>If such person refuses to answer any question, the Agency
may petition the district court of the United States pursuant to this section
for an order compelling such person to answer such question.</text>
</clause><clause id="H5AF1BB3BCE1D4F5FA0594666ABAF7E68"><enum>(vi)</enum><header>Basis for
compelling testimony</header><text>If such person refuses to answer any
question 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>
</clause></subparagraph><subparagraph id="H4D6FA5C84DB34F74BF5A6E1011955147"><enum>(E)</enum><header>Transcripts</header>
<clause id="H839AB873E0E3448D8E95B1DE2FD06F11"><enum>(i)</enum><header>Right to
examine</header><text>After the testimony of any witness is fully transcribed,
the Agency investigator shall afford the witness (who may be accompanied by an
attorney) a reasonable opportunity to examine the transcript.</text>
</clause><clause id="H0F53A8E0EE284FD2AEC319AD39FCA352"><enum>(ii)</enum><header>Reading the
transcript</header><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="H036BC4F8C471427C801D27F39FA5379E"><enum>(iii)</enum><header>Request for
changes</header><text>Any changes in form or substance which the witness
desires to make shall be entered and identified upon the transcript by the
Agency investigator with a statement of the reasons given by the witness for
making such changes.</text>
</clause><clause id="H024DA197552D4CD280CEF243F00E77FF"><enum>(iv)</enum><header>Signature</header><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.</text>
</clause><clause id="HF93DB264B2784FF784AC87638AA1DA95"><enum>(v)</enum><header>Agency action in
lieu of signature</header><text>If the transcript is not signed by the witness
during the 30-day period following the date upon which the witness is first
afforded a reasonable opportunity to examine it, the Agency 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="H148F9A9A0D754867B3AC315976B6B62F"><enum>(F)</enum><header>Certification by
investigator</header><text>The Agency investigator shall certify on the
transcript that the witness was duly sworn by the investigator and that the
transcript is a true record of the testimony given by the witness, and the
Agency investigator shall promptly deliver the transcript or send it by
registered or certified mail to the custodian.</text>
</subparagraph><subparagraph id="H3FABBE87F7FA44FF8FC915D81070343A"><enum>(G)</enum><header>Copy of
transcript</header><text>The Agency investigator shall furnish a copy of the
transcript (upon payment of reasonable charges for the transcript) to the
witness only, except that the Agency may for good cause limit such witness to
inspection of the official transcript of the testimony of such witness.</text>
</subparagraph><subparagraph id="HB4D3DFF7A51E419CAC105B125C60BD8F"><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="H4262A97587404342AB0BC21AD7B0DC4A"><enum>(d)</enum><header>Confidential
treatment of demand material</header>
<paragraph id="HB5B3C4BFD0A44880A84037023EF49087"><enum>(1)</enum><header>In
general</header><text>Materials received as a result of a civil investigative
demand shall be subject to requirements and procedures regarding
confidentiality, in accordance with regulations established by the
Director.</text>
</paragraph><paragraph id="HF62FAED8D1B94EE681314D65E9C22FD1"><enum>(2)</enum><header>Disclosure to
congress</header><text>No regulation established by the Director regarding the
confidentiality of materials submitted to, or otherwise obtained by, the Agency
shall be intended to prevent disclosure to either House of the Congress or to
an appropriate committee of the Congress, except that the Director may
prescribe regulations allowing prior notice to any party that owns or otherwise
provided the material to the Agency and has designated such material as
confidential.</text>
</paragraph></subsection><subsection id="H715FF4F70BE94FD981FE0455EEC09DA1"><enum>(e)</enum><header>Petition for
enforcement</header>
<paragraph id="H74C95AED94B84B7B847FC0DA772F75BD"><enum>(1)</enum><header>In
general</header><text>Whenever any person fails to comply with any civil
investigative demand duly served upon such person 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 Agency, through such officers or attorneys as the Director 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="H8EA635512333405B96079DD501F71E56"><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="HC5C929117C104DDA86842BCE4EC70E10"><enum>(f)</enum><header>Petition for
order modifying or setting aside demand</header>
<paragraph id="H2C2DB2D7CB5747678ABDF77F261FE168"><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 Agency
investigator named in the demand, such person may file with the Agency a
petition for an order by the Agency modifying or setting aside the
demand.</text>
</paragraph><paragraph id="H4361305BA8CB48648550905455E31A6B"><enum>(2)</enum><header>Compliance
during pendency</header><text>The time permitted for compliance with the demand
in whole or in part, as deemed proper and ordered by the Agency, shall not run
during the pendency of such petition at the Agency, except that such person
shall comply with any portions of the demand not sought to be modified or set
aside.</text>
</paragraph><paragraph id="H054AB9B4D27F48F09772F4816E246F4A"><enum>(3)</enum><header>Specific
grounds</header><text>Such petition shall specify each ground upon which the
petitioner relies in seeking such 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="H7517912DEC5D4B01846B522AADEE8E5E"><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 such custodian by this section or regulation prescribed by the
Director.</text>
</subsection><subsection id="H2727346476154E92BF02E52E46095692"><enum>(h)</enum><header>Jurisdiction of
court</header>
<paragraph id="H22345F05D99E47F29C659F886C0CD54B"><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 into effect the provisions of this section.</text>
</paragraph><paragraph id="H76AA593F056144B28A9861132DE0F956"><enum>(2)</enum><header>Appeal</header><text>Any
final order so entered shall be subject to appeal pursuant to section 1291 of
title 28, United States Code.</text>
</paragraph></subsection></section><section id="H54AD6A0C7794464685588EB1E59CEB86"><enum>4503.</enum><header>Hearings and
adjudication proceedings</header>
<subsection id="HE1EBB75805904D538322B1FD2F2C2AA8"><enum>(a)</enum><header>In
general</header><text>The Agency may 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="HC934429A322945CC96CB54804C12AA7A"><enum>(1)</enum><text>the provisions of
this title, including any regulations prescribed by the Director under this
title; and</text>
</paragraph><paragraph id="H09B21495D78C4095B617C858A114E72D"><enum>(2)</enum><text>any other Federal
law that the Agency is authorized to enforce, including an enumerated consumer
law, and any regulations or order prescribed thereunder, unless such Federal
law specifically limits the Agency from conducting a hearing or adjudication
proceeding and only to the extent of such limitation.</text>
</paragraph></subsection><subsection id="HB169652C62F5442EA053042BC039ADAD"><enum>(b)</enum><header>Special rules
for cease-and-desist proceedings</header>
<paragraph id="HE96FD138EE34405FA154141045893DD2"><enum>(1)</enum><header>Issuance</header>
<subparagraph id="H8CAFA805CB194431970ACF6903671ECB"><enum>(A)</enum><header>Notice of
charges</header><text display-inline="yes-display-inline">If, in the opinion of
the Agency, any covered person or service provider is engaging or has engaged
in an activity that violates a law, regulation, or any condition imposed in
writing on the person by the Agency, the Agency may issue and serve upon the
person a notice of charges with respect to such violation.</text>
</subparagraph><subparagraph id="HBE35CB6EDED3407E81BAEB86A9B57F52"><enum>(B)</enum><header>Contents of
notice</header><text>The notice shall contain a statement of the facts
constituting any alleged violation and shall fix a time and place at which a
hearing will be held to determine whether an order to cease-and-desist there
from should issue against the person.</text>
</subparagraph><subparagraph id="HD771903228644518B5E4908F9093FC77"><enum>(C)</enum><header>Time of
hearing</header><text>A hearing under this subsection shall be fixed for a date
not earlier than 30 days nor later than 60 days after service of such notice
unless an earlier or a later date is set by the Agency at the request of any
party so served.</text>
</subparagraph><subparagraph id="H4FB37D713FA64C81828497F10750E0AC"><enum>(D)</enum><header>Nonappearance
deemed to be consent to order</header><text>Unless the party or parties so
served shall appear at the hearing personally or by a duly authorized
representative, they shall be deemed to have consented to the issuance of the
cease-and-desist order.</text>
</subparagraph><subparagraph id="HF7F243C5AB1B4434AB0EC876F4342915"><enum>(E)</enum><header>Issuance of
order</header><text>In the event of such consent, or if upon the record made at
any such hearing, the Agency shall find that any violation specified in the
notice of charges has been established, the Agency may issue and serve upon the
person an order to cease-and-desist from any such violation or practice.</text>
</subparagraph><subparagraph id="H4EDF2AD9595B4CCEB24CD63FD683B0FB"><enum>(F)</enum><header>Includes
requirement for corrective action</header><text>Such order may, by provisions
which may be mandatory or otherwise, require the person to cease-and-desist
from the same, and, further, to take affirmative action to correct the
conditions resulting from any such violation.</text>
</subparagraph></paragraph><paragraph id="HB9E7BB6EAA714BE98FAC4CCB98D03F1B"><enum>(2)</enum><header>Effectiveness of
order</header><text>A cease-and-desist order shall take effect at the end of
the 30-day period beginning on the date of the service of such order upon the
covered person or service provider concerned (except in the case of a
cease-and-desist order issued upon consent, which shall take effect at the time
specified therein), and shall remain effective and enforceable as provided
therein, except to such extent as it is stayed, modified, terminated, or set
aside by action of the Agency or a reviewing court.</text>
</paragraph><paragraph id="H9E53B1AFF4314070BE2C42E793EAA12C"><enum>(3)</enum><header>Decision and
appeal</header>
<subparagraph id="H6DC3929639A44A728B1B03B9A4D0A668"><enum>(A)</enum><header>Place of and
procedures for hearing</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 home office 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.</text>
</subparagraph><subparagraph id="HBCBA0C85F619436CBCF4F8636609698C"><enum>(B)</enum><header>Time limit for
decision</header><text>After such hearing, and within 90 days after the Agency
has notified the parties that the case has been submitted to it for final
decision, the Agency shall—</text>
<clause id="H0AD21D70833E41298BD69E17A0F147FE"><enum>(i)</enum><text>render its
decision (which shall include findings of fact upon which its decision is
predicated) and shall issue; and</text>
</clause><clause id="HD3118CB200B84AFFAE06F3466D351971"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HDAC51FAB443648F7AC5DD485C3717742"><enum>(C)</enum><header>Modification of
order generally</header><text>Unless a petition for review is timely filed in a
court of appeals of the United States, as hereinafter provided in paragraph
(4), and thereafter until the record in the proceeding has been filed as so
provided, the Agency may at any time, upon such notice and in such manner as it
shall deem proper, modify, terminate, or set aside any such order.</text>
</subparagraph><subparagraph id="HBFDCB97058F4452BBA81D3AD1C4F0349"><enum>(D)</enum><header>Modification of
order after filing record on appeal</header><text>Upon such filing of the
record, the Agency may modify, terminate, or set aside any such order with
permission of the court.</text>
</subparagraph></paragraph><paragraph id="HA5DEA75297524B519DBC0E76E9948723"><enum>(4)</enum><header>Appeal to court
of appeals</header>
<subparagraph id="H3C23E410183A40CCBC165A47D2F09D00"><enum>(A)</enum><header>In
general</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 Agency
be modified, terminated, or set aside.</text>
</subparagraph><subparagraph id="H5D526A9F25A844CDB1AEFF3480278AF3"><enum>(B)</enum><header>Transmittal of
copy to the Agency</header><text>A copy of such petition shall be forthwith
transmitted by the clerk of the court to the Agency, and thereupon the Agency
shall file in the court the record in the proceeding, as provided in section
2112 of title 28 of the United States Code.</text>
</subparagraph><subparagraph id="H322E49F8556A45099C4321C971931FC8"><enum>(C)</enum><header>Jurisdiction of
court</header><text>Upon the filing of a petition under subparagraph (A), 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
Agency.</text>
</subparagraph><subparagraph id="H7DF95F84C43E48D4AAE2BE33C088B18A"><enum>(D)</enum><header>Scope of
review</header><text>Review of such proceedings shall be had as provided in
chapter 7 of title 5 of the United States Code.</text>
</subparagraph><subparagraph id="H5615B35D613046468EEA85410E4981AF"><enum>(E)</enum><header>Finality</header><text>The
judgment and decree of the court shall be final, except that the same shall be
subject to review by the Supreme Court upon certiorari, as provided in section
1254 of title 28 of the United States Code.</text>
</subparagraph></paragraph><paragraph id="H27624C9D53F947AA86CDF494C709D18B"><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 Agency.</text>
</paragraph></subsection><subsection id="H32C50C3E16024BFD8CE4512DE3A7E70F"><enum>(c)</enum><header>Special rules
for temporary cease-and-desist proceedings</header>
<paragraph id="HE0EC6E6150A04FD1A77C66B4637B6C39"><enum>(1)</enum><header>Issuance</header>
<subparagraph id="H62527C59C5A34BE296B8140BA0F0FC6D"><enum>(A)</enum><header>In
general</header><text>Whenever the Agency 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 of such violation, 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 Agency 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.</text>
</subparagraph><subparagraph id="H95D6284885B5485CBC8C01E389268B08"><enum>(B)</enum><header>Other
requirements</header><text>Any temporary order issued under this paragraph may
include any requirement authorized under this subtitle.</text>
</subparagraph><subparagraph id="H4836B4A10D864E6DA8BC049E16916068"><enum>(C)</enum><header>Effect date of
order</header><text display-inline="yes-display-inline">Any temporary order
issued under this paragraph shall take effect upon service upon the person and,
unless set aside, limited, or suspended by a court in proceedings authorized by
paragraph (2) of this subsection, shall remain effective and enforceable
pending the completion of the administrative proceedings pursuant to such
notice and until such time as the Agency shall dismiss the charges specified in
such notice, or if a cease-and-desist order is issued against the person, until
the effective date of such order.</text>
</subparagraph></paragraph><paragraph id="HCA6C19C1520F407B8AA1FFDC9B70998B"><enum>(2)</enum><header>Appeal</header><text>Within
10 days after the person 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 home office 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="H937C3560A22E44A8BE3A26BF42B42059"><enum>(3)</enum><header>Incomplete or
inaccurate records</header>
<subparagraph id="HCF03CDA32D7B49EAA6FB2CC424039A2F"><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 a person’s
books and records are so incomplete or inaccurate that the Agency 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 Agency may issue a temporary order
requiring—</text>
<clause id="H7D0087C88AB343749D3089EA00DBCBAC"><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="H16E8A40099774D0FAE24952DE32F619F"><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="HF184A8FC7B6B47C788FE34F65D50EDDC"><enum>(B)</enum><header>Effective
period</header><text>Any temporary order issued under subparagraph (A)—</text>
<clause id="HF9B99E2CA24C47FD887DEA87661D6FDC"><enum>(i)</enum><text>shall take effect
upon service; and</text>
</clause><clause id="H6ECB604F70974401BA78905A7C1FC09C"><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="H2E6D171773C94E3C9C2B6E86EC0F914F"><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="H4C0A4EBBC4C64A36AFF899ACC80278C7"><enum>(II)</enum><text>the date the
Agency determines, by examination or otherwise, that the person’s books and
records are accurate and reflect the financial condition of the person.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HEB4E2AD9AE494CF8B852293012BA094F"><enum>(d)</enum><header>Special rules
for enforcement of orders</header>
<paragraph id="HC133AAF123A243318898C97752B42EC3"><enum>(1)</enum><header>In
general</header><text>The Agency may in its discretion apply to the United
States district court within the jurisdiction of which the principal office 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="H892218BA087C4FBF9663B1FE8AC246EA"><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="H7684CD0C08B24648A5005D5AE38C31B8"><enum>(e)</enum><header>Regulations</header><text>The
Director shall prescribe regulations establishing such procedures as may be
necessary to carry out this section.</text>
</subsection></section><section id="H976CD47309AC439D96DBE3E594FD5437"><enum>4504.</enum><header>Litigation
authority</header>
<subsection id="HF25F53363F5D49D382A8ED7BC3E791EC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">If any person
violates a provision of this title, any enumerated consumer law, any law for
which authorities were transferred under subtitles F and H, or any regulation
prescribed or order issued by the Director under this title or pursuant to any
such authority, the Agency may commence a civil action against such person to
impose a civil penalty and to seek all appropriate legal and equitable relief
including a permanent or temporary injunction as permitted by law.</text>
</subsection><subsection id="HCE05395D763E4BAE958469046A81A3D9"><enum>(b)</enum><header>Representation</header><text>The
Agency may act in its own name and through its own attorneys in enforcing any
provision of this title, regulations under this title, or any other law or
regulation, or in any action, suit, or proceeding to which the Agency is a
party.</text>
</subsection><subsection id="HCE3C3610608848598C7F6EF7013318A8"><enum>(c)</enum><header>Compromise of
actions</header><text>The Agency may compromise or settle any action if such
compromise is approved by the court.</text>
</subsection><subsection id="H6EF927308D81417DBEFB7B32C0DAFC5E"><enum>(d)</enum><header>Notice to the
attorney general</header><text>When commencing a civil action under this title,
any enumerated consumer law, any law for which authorities were transferred
under subtitles F and H, or any regulation thereunder, the Agency shall notify
the Attorney General.</text>
</subsection><subsection id="H44B0FDD9D6094D2BBD34E200DE808644"><enum>(e)</enum><header>Appearance
before the supreme court</header><text>The Agency may represent itself in its
own name before the Supreme Court of the United States, if—</text>
<paragraph id="HA4539AE48B4C4FB4BE71074CD78F2B73"><enum>(1)</enum><text>the Agency 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</text>
</paragraph><paragraph id="HE819FB07BA4E482693281616DAF41A1C"><enum>(2)</enum><text>the Attorney
General concurs with such request or fails to take action within 60 days of the
Agency’s request.</text>
</paragraph></subsection><subsection id="H47280F1D9DA44273A14CE44866E65783"><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 this title, any enumerated consumer law, any law for which
authorities were transferred under subtitles F and H, or any regulation
prescribed or order issued by the Director under this title or pursuant to any
such authority.</text>
</subsection><subsection id="H02118A7E93EA407A8BD2470C6A6E0FD3"><enum>(g)</enum><header>Time for
bringing action</header>
<paragraph id="HBCF4E1A28DF445A7BD285B5E15F99690"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
permitted by law or equity, no action may be brought under this title more than
3 years after the date of the discovery of the violation to which an action
relates.</text>
</paragraph><paragraph id="H6683B9D0C1CC4A9CBDCBC6F3C86964A4"><enum>(2)</enum><header>Limitations
under other federal laws</header>
<subparagraph id="H72F3EF0C6C9A4215BD8278000BA6E0EB"><enum>(A)</enum><text>For purposes of
this section, an action arising under this title shall not include claims
arising solely under enumerated consumer laws.</text>
</subparagraph><subparagraph id="HD4F2CCD151014A91A86FDEC39C5562E4"><enum>(B)</enum><text>In any action
arising solely under an enumerated consumer law, the Agency may commence,
defend, or intervene in the action in accordance with the requirements of that
law, as applicable.</text>
</subparagraph><subparagraph id="H0E078791325049699D15944A436F3062"><enum>(C)</enum><text>In any action
arising solely under the laws for which authorities were transferred by
subtitles F and H, the Agency may commence, defend, or intervene in the action
in accordance with the requirements of that law, as applicable.</text>
</subparagraph></paragraph></subsection></section><section id="HE456BA35C8BD421B89E606F5A449D9A7"><enum>4505.</enum><header>Relief
available</header>
<subsection id="HE27BCF2476F84B4C8DB1D17EFB6D2CC4"><enum>(a)</enum><header>Administrative
proceedings or court actions</header>
<paragraph id="H53F84B7F19B244EAB488FAC0AF9655D0"><enum>(1)</enum><header>Jurisdiction</header><text>The
court (or Agency, as the case may be) in an action or adjudication proceeding
brought under this title, any enumerated consumer law, or any law for which
authorities were transferred by subtitles F and H, shall have jurisdiction to
grant any appropriate legal or equitable relief with respect to a violation of
this title, any enumerated consumer law, and any law for which authorities were
transferred by subtitles F and H, including a violation of a regulation
prescribed or order issued under this title, any enumerated consumer law and
any law for which authorities were transferred by subtitles F and H.</text>
</paragraph><paragraph id="H6043C8E76F994900B52F45C468843AC7"><enum>(2)</enum><header>Relief</header><text>Such
relief may include—</text>
<subparagraph id="H43C9F9CF8B0F4D7ABDCC234436133B53"><enum>(A)</enum><text>rescission or
reformation of contracts;</text>
</subparagraph><subparagraph id="H75CDC9541FF44162A4CA2DBFD3128385"><enum>(B)</enum><text>refund of moneys
or return of real property;</text>
</subparagraph><subparagraph id="H7866E7CF66A34CE8988418164DE6B9F1"><enum>(C)</enum><text>restitution;</text>
</subparagraph><subparagraph id="HDF46E7CF821947EFAF0A96AF7EAFFA03"><enum>(D)</enum><text>disgorgement or
compensation for unjust enrichment;</text>
</subparagraph><subparagraph id="HF0EE88153DC143599E9405FE94047716"><enum>(E)</enum><text>payment of
damages;</text>
</subparagraph><subparagraph id="HBEC10DF8537C401FA1038D67561416EE"><enum>(F)</enum><text>public
notification regarding the violation, including the costs of
notification;</text>
</subparagraph><subparagraph id="H70D883FAF9A14072AD9F394301E5D775"><enum>(G)</enum><text>limits on the
activities or functions of the person; and</text>
</subparagraph><subparagraph id="HBB86D212E8A84691B8AE62905F1959E2"><enum>(H)</enum><text>civil money
penalties under subsection (c).</text>
</subparagraph></paragraph><paragraph id="H729A1B577C8D43CC84DDBB8550FD9CD0"><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="HBDA09D111FE34959950A55E4A3C9C8A3"><enum>(b)</enum><header>Recovery of
costs</header><text>In any action brought by the Agency, a State attorney
general, or a State bank supervisor to enforce any provision of this title, any
enumerated consumer law, any law for which authorities were transferred by
subtitles F and H, or any regulation prescribed or order issued by the Director
under this title or pursuant to any such authority, the Agency, State attorney
general, or State bank supervisor may recover the costs incurred by such
Agency, attorney general, or supervisor in connection with prosecuting such
action if the Agency, State attorney general, or State bank supervisors (as the
case may be) is the prevailing party in the action.</text>
</subsection><subsection id="H198B6FF517EF432BBC46A18BD0FE26AD"><enum>(c)</enum><header>Civil money
penalty in court and administrative actions</header>
<paragraph id="H9EEE1F0F48044E74B1297187913159C6"><enum>(1)</enum><text display-inline="yes-display-inline">Any person that violates, through any act
or omission, any provision of this title, any enumerated consumer law, or any
regulation prescribed or order issued by the Director under this title shall
forfeit and pay a civil penalty pursuant to this subsection determined as
follows:</text>
<subparagraph id="H6F4D757E6622477B936CDE5F3C008713"><enum>(A)</enum><header>First
tier</header><text display-inline="yes-display-inline">For any violation of any
law, regulation, final order or condition imposed in writing by the Agency, or
for any failure to pay any fee or assessment imposed by the Agency (including
any fee or assessment for which a related person may be liable), a civil
penalty shall not exceed $5,000 for each day during which such violation
continues.</text>
</subparagraph><subparagraph id="HE0C828B46589475B9FFEEF4A82FCAC90"><enum>(B)</enum><header>Second
tier</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (A), for any violation of a regulation prescribed under section 4306
or for any person that recklessly engages in a violation of this title, any
enumerated consumer law, or any regulation prescribed or order issued by the
Director under this title, relating to the provision of an alternative consumer
financial product or service, a civil penalty shall not exceed $25,000 for each
day during which such violation continues.</text>
</subparagraph><subparagraph id="H03646185A23F4BAC9549D838D1154BFC"><enum>(C)</enum><header>Third
tier</header><text display-inline="yes-display-inline">Notwithstanding
subparagraphs (A) and (B), for any person that knowingly violates this title,
any enumerated consumer law, or any regulation prescribed or order issued by
the Director under this title, a civil penalty shall not exceed $1,000,000 for
each day during which such violation continues.</text>
</subparagraph></paragraph><paragraph id="HB1635BBAF7434019B1DD40C9C2AC1AE7"><enum>(2)</enum><header>Mitigating
factors</header><text>In determining the amount of any penalty assessed under
paragraph (1), the Agency or the court shall take into account the
appropriateness of the penalty with respect to—</text>
<subparagraph id="H29FF91CBE0B6436FB0874A003A00D956"><enum>(A)</enum><text>the size of
financial resources and good faith of the person charged;</text>
</subparagraph><subparagraph id="H7B4A3683E5BA492FAED89F04974D8B4A"><enum>(B)</enum><text>the gravity of the
violation or failure to pay;</text>
</subparagraph><subparagraph id="H1E1AD5D3258F415B808ADE6115E354CA"><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="HF6F17C52E3A44D689CC1B312CB3C5984"><enum>(D)</enum><text>the history of
previous violations; and</text>
</subparagraph><subparagraph id="H2CBC82BAD9F547808CADA6594FB6B647"><enum>(E)</enum><text>such other matters
as justice may require.</text>
</subparagraph></paragraph><paragraph id="H50B5EAE74FF64921ABA60DABF4425954"><enum>(3)</enum><header>Authority to
modify or remit penalty</header><text>The Agency may compromise, modify, or
remit any penalty which may be assessed or had already been assessed under
paragraph (1). 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="HC9D092BA08334FC1954D798D857941B5"><enum>(4)</enum><header>Notice and
hearing</header><text display-inline="yes-display-inline">No civil penalty may
be assessed with respect to a violation of this title, any enumerated consumer
law, or any regulation prescribed or order issued by the Director,
unless—</text>
<subparagraph id="H47DA265CBC2D4CC8A9FBE519250E4E4A"><enum>(A)</enum><text>the Agency gives
notice and an opportunity for a hearing to the person accused of the violation;
or</text>
</subparagraph><subparagraph id="H11724D56351C4B7AACC779260F0FDBBF"><enum>(B)</enum><text>the appropriate
court has ordered such assessment and entered judgment in favor of the
Agency.</text>
</subparagraph></paragraph></subsection></section><section id="H033909898918499E9A8249C1AFA77859"><enum>4506.</enum><header>Referrals for
criminal proceedings</header><text display-inline="no-display-inline">Whenever
the Agency obtains evidence that any person, either domestic or foreign, has
engaged in conduct that may constitute a violation of Federal criminal law, the
Agency may transmit such evidence to the Attorney General, who may institute
criminal proceedings under appropriate law. No provision of this section shall
be construed as affecting any other authority of the Agency to disclose
information.</text>
</section><section id="H3B8EF17E9B984B5F9B03A43B516D8C8F"><enum>4507.</enum><header>Employee
protection</header>
<subsection id="H4FD544B8909D4E92823B105FF2D53087"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 employee’s initiative or in the
ordinary course of the employee’s duties (or any person acting pursuant to a
request of the employee)—</text>
<paragraph id="HEC6E689C7D6F49BB826032EE2CC7C493"><enum>(1)</enum><text>has provided
information to the Agency or to any other State, local, or Federal Government
authority or law enforcement official information relating to any violation of,
or any act or omission the employee reasonably believes to be a violation of
any provision of this title or any other law that is subject to the
jurisdiction of the Agency, or any regulation, order, standard, or prohibition
prescribed by the Director;</text>
</paragraph><paragraph id="HAAE6A79F9D3A4F0FA51702B64713B0AB"><enum>(2)</enum><text>has testified or
is about to testify in any proceeding resulting from the administration or
enforcement of any provision of this title or any other law that is subject to
the jurisdiction of the Agency, or any regulation, order, standard, or
prohibition prescribed by the Director;</text>
</paragraph><paragraph id="H917CE047157B420F8D5F7D69916900E3"><enum>(3)</enum><text>has filed or
instituted, or has caused to be filed or instituted, any proceeding under any
enumerated consumer law or any law for which authorities were transferred by
subtitles F and H; or</text>
</paragraph><paragraph id="HA2C94D1961874CF983643B281C664B55"><enum>(4)</enum><text>has 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, regulation, order, standard, or prohibition, subject to the
jurisdiction of, or enforceable by, the Agency.</text>
</paragraph></subsection><subsection id="H2D52820195DB4CCB81277D7FE06E7FBB"><enum>(b)</enum><header>Covered employee
defined</header><text display-inline="yes-display-inline">For the purposes of
this section, the term <quote>covered employee</quote> means any individual
performing tasks related to the provision of a financial product or service to
a consumer.</text>
</subsection><subsection id="H76D5D4F0C416458091187E580A00627C"><enum>(c)</enum><header>Timetables</header>
<paragraph id="HDEF006D26DFB4C2CA6C90F156FFCD47E"><enum>(1)</enum><header>Filing
complaint</header><text>Any individual who believes that such individual has
been discharged or otherwise discriminated against by any person in violation
of subsection (a) may, before the end of the 180-day period beginning on the
date on which such violation occurs, file (or have any person file on behalf of
such individual) a complaint with the Secretary of Labor (hereafter in this
subsection referred to as the <quote>Secretary</quote>, notwithstanding section
4002(34)) alleging such discharge or discrimination and identifying the person
responsible for such act.</text>
</paragraph><paragraph id="H32E62A139411403CBB65D312ED62B659"><enum>(2)</enum><header>Secretary’s
action on receipt of complaint</header><text>Upon receipt of a complaint by any
individual under paragraph (1), the Secretary shall notify, in writing, the
person named in the complaint who is alleged to have committed the violation
of—</text>
<subparagraph id="HCD0115216E5846A1859ADDBF0F042C2D"><enum>(A)</enum><text>the filing of the
complaint;</text>
</subparagraph><subparagraph id="H84304D50D1D84008BD8B341A145332F5"><enum>(B)</enum><text>the allegations
contained in the complaint;</text>
</subparagraph><subparagraph id="H94291EB6203C469190FDCBAA5861B220"><enum>(C)</enum><text>the substance of
the evidence supporting the complaint; and</text>
</subparagraph><subparagraph id="H6500FBD78FBD40D8AE82BFA3148E59D2"><enum>(D)</enum><text>the opportunities
that will be afforded to such person under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="H61587BE0F9DF4C4E97A1E16BBC47358D"><enum>(3)</enum><header>Investigation,
hearing, and orders</header>
<subparagraph id="H1E3DBF3E6D984CCF97EE4E08FA4D66C2"><enum>(A)</enum><header>Findings</header><text>Not
later than 60 days after the date of receipt of a complaint filed under
paragraph (1) and after affording the individual filing the complaint and the
person named in the complaint who is alleged to have committed the violation an
opportunity to submit to the Secretary a written response to the complaint and
an opportunity to meet with a representative of the Secretary to present
statements from witnesses, the Secretary shall initiate an investigation and
determine whether there is reasonable cause to believe that the complaint has
merit and notify, in writing, the complainant and the person alleged to have
committed a violation of subsection (a) of the Secretary’s findings.</text>
</subparagraph><subparagraph id="H42E5B342C55244DAB72A5019D986F78D"><enum>(B)</enum><header>Preliminary
order</header><text>If the Secretary concludes that there is reasonable cause
to believe that a violation of subsection (a) has occurred, the Secretary shall
accompany the Secretary’s findings with a preliminary order providing the
relief prescribed by paragraph (3)(B).</text>
</subparagraph><subparagraph id="H6409417731164567919AC09EB0AD0C77"><enum>(C)</enum><header>Objections to
findings or preliminary order</header><text>Not later than 30 days after the
date of notification of findings under subparagraph (A), 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.</text>
</subparagraph><subparagraph id="HD0D099368E614F35B3C4C3AE047A8CD8"><enum>(D)</enum><header>Objections do
not constitute a stay</header><text>The filing of objections under subparagraph
(C) shall not operate to stay any reinstatement remedy contained in the
preliminary order.</text>
</subparagraph><subparagraph id="HB9720C275B7B4CBC9EC9F05DD0DE4281"><enum>(E)</enum><header>Expeditious
hearing</header><text>Any hearing requested under subparagraph (C) shall be
conducted expeditiously.</text>
</subparagraph><subparagraph id="H35954DED8DFD4E449E39C9E4471012A2"><enum>(F)</enum><header>Finality of
order</header><text>If a hearing is not requested under subparagraph (C) with
respect to any findings of the Secretary under subparagraph (A) within the
30-day period described in subparagraph (C), the preliminary order shall be
deemed a final order that is not subject to judicial review.</text>
</subparagraph></paragraph><paragraph id="H55CCA16EDB024B619EC3DDEFBA6A07E0"><enum>(4)</enum><header>Standards for
determination</header>
<subparagraph id="H0181A39AB58041229AA83D6E21772BF5"><enum>(A)</enum><header>Prima facie
evidence of contribution</header><text>The Secretary shall dismiss a complaint
filed under paragraph (1) and shall not conduct an investigation otherwise
required under paragraph (3)(A) unless the individual filing the complaint
makes a prima facie showing that any behavior described in paragraph (1), (2),
(3), or (4) of subsection (a) was a contributing factor in the unfavorable
personnel action alleged in the complaint.</text>
</subparagraph><subparagraph id="HAA38871C2984467FAE2D113CFBC7373B"><enum>(B)</enum><header>Prohibition on
investigation in case of clear and convincing evidence of independent
basis</header><text>Notwithstanding a finding by the Secretary that the
complainant has made the showing required under subparagraph (A), no
investigation otherwise required under paragraph (3) 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="H11A2B79271604B0F84B696B947063923"><enum>(C)</enum><header>Contributing
factor requirement</header><text display-inline="yes-display-inline">The
Secretary may determine that a violation of subsection (a) has occurred only if
the complainant demonstrates that any behavior described in paragraph (1), (2),
(3), or (4) of subsection (a) was a contributing factor in the unfavorable
personnel action alleged in the complaint.</text>
</subparagraph><subparagraph id="H296AD5B4DFEB4DA29A2AD8709B234167"><enum>(D)</enum><header>Prohibition on
final order in case of clear and convincing evidence of independent
basis</header><text>Relief may not be ordered under paragraph (3) 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="H3A6503026FA542929FB2A024BFFEC600"><enum>(5)</enum><header>Final
order</header>
<subparagraph id="H9AE0E064BBE8452F9AA0408474AA3A86"><enum>(A)</enum><header>In
general</header><text>Not later than 120 days after the date of conclusion of
any hearing under paragraph (3), the Secretary shall issue a final order
providing the relief prescribed by this subsection or denying the
complaint.</text>
</subparagraph><subparagraph id="H5D6D770EB6E94030BC87DF00826EA4C5"><enum>(B)</enum><header>Settlement
agreement</header><text>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, the complainant, and the person
alleged to have committed the violation.</text>
</subparagraph><subparagraph id="HF7E8D5C6BC474D718E7D1793DE315123"><enum>(C)</enum><header>Contents of
order</header><text>If, in response to a complaint filed under paragraph (1),
the Secretary determines that a violation of subsection (a) has occurred, the
Secretary shall order the person who committed such violation—</text>
<clause id="H64C26668578E4D2AB02A842723A3D2C1"><enum>(i)</enum><text>to
take affirmative action to abate the violation;</text>
</clause><clause id="HFCCB9EEB2CFC4336A13E6E1B38BC752D"><enum>(ii)</enum><text>to
reinstate the complainant to such individual’s former position together with
compensation (including back pay) and restore the terms, conditions, and
privileges associated with such individual’s employment; and</text>
</clause><clause id="H9E5D06E9BC5F4FF199B1C5D6A0860400"><enum>(iii)</enum><text>to
provide compensatory damages to the complainant.</text>
</clause></subparagraph><subparagraph id="H471C9897EC284AC6B618EFF5E307CFE8"><enum>(D)</enum><header>Costs and
attorneys fees</header><text>If an order is issued under this paragraph, the
Secretary, 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 attorneys’ and expert witness fees) reasonably
incurred, as determined by the Secretary, by the complainant for, or in
connection with, the bringing of the complaint upon which the order was
issued.</text>
</subparagraph><subparagraph id="H5AB646A99C8E40C9AA995DC349D3965B"><enum>(E)</enum><header>Frivolous or bad
faith complaints</header><text>If the Secretary finds that a complaint under
paragraph (1) is frivolous or has been brought in bad faith, the Secretary may
award to the prevailing employer a reasonable attorneys’ fee, not exceeding
$1,000, to be paid by the complainant.</text>
</subparagraph></paragraph><paragraph id="HACCD221072894E0DAAF4CA0EDF3B527F"><enum>(6)</enum><header>De novo action
on claim</header>
<subparagraph id="H2E05633494684CFC9CC0F332BBD96082"><enum>(A)</enum><header>Action at law or
equity</header><text>If the Secretary has not issued a final decision within
210 days after the filing of the complaint, or within 90 days after receiving a
written determination, the complainant who filed such complaint may bring an
action at law or equity for de novo review in the appropriate district court of
the United States.</text>
</subparagraph><subparagraph id="HA4651459BAC44E5C9FC3CA172A44EEC9"><enum>(B)</enum><header>Jury
trial</header><text>At the request of either party to an action brought under
subparagraph (A), such action shall be tried by the court with a jury.</text>
</subparagraph><subparagraph id="H332A6E68340E41FA82DAC5AB2FF080E0"><enum>(C)</enum><header>Standards for
determination</header><text>The standards for determination established under
paragraph (4) shall apply in any action under this paragraph.</text>
</subparagraph><subparagraph id="HA4C0BD0BCCBC4A0AA6391F6229558192"><enum>(D)</enum><header>Relief</header><text display-inline="yes-display-inline">The court shall have jurisdiction to grant
all relief, including injunctive relief and compensatory damages , that
necessary to make the complainant who sought de novo review whole,
including—</text>
<clause id="H58F768C21E72449F825EE35317493E68"><enum>(i)</enum><text>reinstatement with
the same seniority status that the complainant would have had, but for the
discharge or discrimination;</text>
</clause><clause id="H77C4CF0A97964393AB05033C0137279D"><enum>(ii)</enum><text>the
amount of back pay, with interest; and</text>
</clause><clause id="HD8211E59875242F1B09B571FD8623EF8"><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><subparagraph commented="no" id="HDCCBA292EAF4464A86BCDE9230F87D4E"><enum>(E)</enum><header>Not
reviewable</header><text>The decision of the court shall be final without
further review.</text>
</subparagraph></paragraph><paragraph id="H270C2ACAC04747C1A238FF507B3D04EE"><enum>(7)</enum><header>Judicial review
of final order</header>
<subparagraph id="H85CD45E369D24FAF8B21215EEB481BF5"><enum>(A)</enum><header>In
general</header><text>Unless a complainant brings a de novo action under
paragraph (6), any person adversely affected or aggrieved by a final order
issued under paragraph (5) may obtain 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.</text>
</subparagraph><subparagraph id="HC3E23E20AB07490280DC01AA576A9F38"><enum>(B)</enum><header>Statute of
limitation </header><text>Any petition for review of a final order under
subsection shall be filed not later than 60 days after the date of the issuance
of the final order by the Secretary.</text>
</subparagraph><subparagraph id="H4A33FB46CBA34CCD9256D7A293DFCC85"><enum>(C)</enum><header>Standards for
review</header><text>The standards for review established under chapter 7 of
title 5, United States Code, shall apply in any review of a final order under
this paragraph.</text>
</subparagraph><subparagraph id="HF84568C9D4A845099656A18C94E3E2CC"><enum>(D)</enum><header>Effect of
proceedings as stay</header><text display-inline="yes-display-inline">The
commencement of proceedings under this paragraph shall not operate as a stay of
the final order of the Secretary under review, unless so ordered by the
court.</text>
</subparagraph><subparagraph id="HF587DBD22CA84BBDA7BFC06F293B043C"><enum>(E)</enum><header>Limitation on
effect of other proceedings</header><text>Except as provided in paragraph (6)
and this paragraph, an order of the Secretary with respect to which review
could have been obtained under subparagraph (A) shall not be subject to
judicial review in any criminal or other civil proceeding.</text>
</subparagraph></paragraph><paragraph id="H3382F555F12242D78EE89FD815B45B68"><enum>(8)</enum><header>Enforcement of
orders by secretary</header>
<subparagraph id="H498C95A24ADB401C85CB217A9B06D735"><enum>(A)</enum><header>In
general</header><text>Whenever any person has failed to comply with an order
issued under paragraph (5), the Secretary may file a civil action in the United
States district court for the district in which the violation was found to
occur, or in the United States district court for the District of Columbia, to
enforce such order.</text>
</subparagraph><subparagraph id="HBAB5A47A607A42D2BD8428C15638CB50"><enum>(B)</enum><header>Relief</header><text>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></paragraph><paragraph id="HE73FA6CD5454420F93EBA62DDBF58746"><enum>(9)</enum><header>Enforcement of
order by aggrieved party </header>
<subparagraph id="H57C30DD595794C5D8C1A86084D3858C9"><enum>(A)</enum><header>In
general</header><text>A person on whose behalf an order was issued under
paragraph (5) may commence a civil action against the person to whom such order
was issued to require compliance with such order.</text>
</subparagraph><subparagraph id="H1345AB6E11A1495AA467EBEEE35D45A8"><enum>(B)</enum><header>Relief</header><text>The
court, in issuing any final order under this paragraph, may award costs of
litigation (including reasonable attorneys’ and expert witness fees) to any
party whenever the court determines such award is appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H899BAA370BC8422EB01650FA9CD3BC6B"><enum>(d)</enum><header>Action in nature
of mandamus</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>
</subsection><subsection id="H7A9115CA5EFC42E59AF0E861431ACD4F"><enum>(e)</enum><header>Unenforceability
of certain agreements</header>
<paragraph id="H4AE48354304C4190B875180FC9A3FFED"><enum>(1)</enum><header>No waiver of
rights and remedies</header><text>Notwithstanding any law and except as
provided under paragraph (3), 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="H7E230A6627674496B56EE739B101B8A0"><enum>(2)</enum><header>Predispute
arbitration agreements</header><text>Notwithstanding any law and except as
provided under paragraph (3), no predispute arbitration agreement shall be
valid or enforceable and to the extent the agreement requires arbitration of a
dispute arising under this section.</text>
</paragraph><paragraph id="H62E7D8943A4A47628B6E422734FCA90F"><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)(2)
unless the Director determines by regulation that such provision is
inconsistent with the purposes of this title.</text>
</paragraph></subsection></section><section id="HB7D9380D968B4F5DB003B5B2B7DCF7AA"><enum>4508.</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="H75776DED962F4EDDA5F628B2C127C85A"><enum>F</enum><header>Transfer of
Functions and Personnel; Transitional Provisions</header>
<section id="HCE1939CEC2054EC3AD74EACFBC7F3D3B"><enum>4601.</enum><header>Transfer of
certain functions</header>
<subsection id="HDE008F1603464D7287B6EDB36F6086A2"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b), consumer financial
protection functions are transferred as follows:</text>
<paragraph id="H4E7AEFD1219B4E86A0F254A3714B3E35"><enum>(1)</enum><header>Board of
governors</header>
<subparagraph id="H749D2F5DB189419DAF8EEF7201C54903"><enum>(A)</enum><header>Transfer of
functions</header><text>All consumer financial protection functions of the
Board of Governors are transferred to the Director.</text>
</subparagraph><subparagraph id="H9F36B4CEC69B4D3BA02C598AFB63133B"><enum>(B)</enum><header>Board of
governors’ authority</header><text display-inline="yes-display-inline">The
Director 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="H4538AB7736D346F989B3511BA1F6214C"><enum>(2)</enum><header>Comptroller of
the currency</header>
<subparagraph id="HBCD32838CC924AC9BDC24319EE4BA2FA"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">All consumer
financial protection functions of the Comptroller of the Currency are
transferred to the Director.</text>
</subparagraph><subparagraph id="H7B2BDA76E33D42A79F43C570C9872603"><enum>(B)</enum><header>Comptroller’s
authority</header><text display-inline="yes-display-inline">The Director 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="H6910101448F8437D9A3121E50EE341B3"><enum>(3)</enum><header>Director of the
office of thrift supervision</header>
<subparagraph id="HD160B7F4C9DE4952AF1CFEA0CA7F1A3F"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">All consumer
financial protection functions of the Director of the Office of Thrift
Supervision are transferred to the Director.</text>
</subparagraph><subparagraph id="HE4FADD071974473B8E72221C2448BDD8"><enum>(B)</enum><header>Director’s
authority</header><text display-inline="yes-display-inline">The Director 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="H8FDBC78DFC6646BAA2A64E1AAAD0DAAB"><enum>(4)</enum><header>Federal deposit
insurance corporation</header>
<subparagraph id="H9AF772957ABA4A219CBDA6D7C6DE470B"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">All consumer
financial protection functions of the Federal Deposit Insurance Corporation are
transferred to the Director.</text>
</subparagraph><subparagraph id="H55A1FF3FD3BD49D2B296404D780E6419"><enum>(B)</enum><header>Corporation’s
authority</header><text display-inline="yes-display-inline">The Director 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="HA2B899DD32BE4499AA8DC6EC0AB60FA0"><enum>(5)</enum><header>Federal trade
commission</header>
<subparagraph id="HB9CE1D7EF4B54180A5B0185033EE9B38"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">Except as provided
in subparagraph (C), the consumer financial protection functions of the Federal
Trade Commission that are contained within the enumerated consumer laws are
transferred to the Agency, except as provided in section 4202(e).</text>
</subparagraph><subparagraph id="HBB3FD0900E374B2385175A24326AE0D1"><enum>(B)</enum><header>Commission’s
authority</header><text>Except as provided in subparagraph (C), the Director
shall have all powers and duties that were vested in the Federal Trade
Commission, relating to consumer financial protection functions, on the day
before the designated transfer date.</text>
</subparagraph><subparagraph id="H662592C6E64F4CDD854BF970854807DB"><enum>(C)</enum><header>Continuation of
certain Commission authorities</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) and (B),
the Federal Trade Commission shall continue to enforce the following provisions
of law and prescribe regulations under such provisions:</text>
<clause id="HB5FAC5ED00AA4824A6A2FFFDDB8C2BEB"><enum>(i)</enum><text>The
Credit Repair Organizations Act.</text>
</clause><clause id="HE926591481F048B29CB659F343253E5D"><enum>(ii)</enum><text display-inline="yes-display-inline">Section 5 of the Federal Trade Commission
Act.</text>
</clause><clause id="H19E925C3CDB846AD99ABED79848EB2BC"><enum>(iii)</enum><text display-inline="yes-display-inline">The Telemarketing and Consumer Fraud and
Abuse Prevention Act.</text>
</clause></subparagraph></paragraph><paragraph id="H11B58F1E4B4142C68E5A6E5073DBD501"><enum>(6)</enum><header>National credit
union administration</header>
<subparagraph id="H50817F56FEE242518C2DCA66CCE287A5"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">All consumer
financial protection functions of the National Credit Union Administration are
transferred to the Director.</text>
</subparagraph><subparagraph id="HCB002CB05A58471FB8D9B88312A9EBE1"><enum>(B)</enum><header>National credit
union administration’s authority</header><text display-inline="yes-display-inline">The Director 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="H2584E38165674ED98D431523B022FBDB"><enum>(7)</enum><header>Secretary of
housing and urban development</header>
<subparagraph id="H6363B352B67343A6B0E0E05276C0DC59"><enum>(A)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">All consumer
protection functions of the Secretary of Housing and Urban Development relating
to the Real Estate Settlement Procedures Act of 1974 and the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 are transferred to the
Director.</text>
</subparagraph><subparagraph id="H394F11B9B0C343BBB651B9B78C401F70"><enum>(B)</enum><header>Secretary of
hud’s authority</header><text display-inline="yes-display-inline">The Director
shall have all powers and duties that were vested in the Secretary of Housing
and Urban Development relating to the Real Estate Settlement Procedures Act of
1974 and the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, on
the day before the designated transfer date</text>
</subparagraph></paragraph></subsection><subsection id="H1166E7C8BCC447AC90F9824F7C49A6F3"><enum>(b)</enum><header>Transfers of
functions subject to backstop enforcement authority remaining with transferor
agencies</header><text>The transfers of functions in subsection (a) shall not
affect the authority of the agencies identified in subsection (a) from
initiating enforcement proceedings under the circumstances described in section
4202(e)(3).</text>
</subsection><subsection id="HE4BC01763AD34B88B84CCDBF32D7CE80"><enum>(c)</enum><header>Termination of
authority of transferor agencies To collect fees for consumer financial
protection purposes</header><text>Authorities of the agencies identified in
subsection (a) to assess and collect fees to cover the cost of conducting
consumer financial protection functions shall terminate on the day before the
designated transfer date.</text>
</subsection><subsection id="H66666D39DD5C455882DDE64F6CDC8C22"><enum>(d)</enum><header>Consumer
financial protection functions defined</header><text display-inline="yes-display-inline">For purposes of this subtitle, the term
<quote>consumer financial protection functions</quote> means research,
rulemaking, issuance of orders or guidance, supervision, examination, and
enforcement activities, powers, and duties relating to the provision of
consumer financial products or services, including the authority to assess and
collect fees for those purposes, except that such term shall not include any
such function relating to an agency's responsibilities under the Community
Reinvestment Act of 1977.</text>
</subsection><subsection id="H02024F322E8349BCA470723205FEA1B4"><enum>(e)</enum><header>Effective
date</header><text>Subsections (a) and (b) shall take effect on the designated
transfer date.</text>
</subsection></section><section id="HA0D1D2C312B544B09A2E5F5C21A05AA1"><enum>4602.</enum><header>Designated
transfer date</header>
<subsection id="H4C621B807656429F9FB9C9127C9D15CA"><enum>(a)</enum><header>In
general</header><text>Not later than 60 days after the date of the enactment of
this title, the Secretary—</text>
<paragraph id="H3D66E0542D804DBC90FEB73E26FF7F71"><enum>(1)</enum><text display-inline="yes-display-inline">shall, 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 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 Director
under section 4601; and</text>
</paragraph><paragraph id="H55FF841C89D942A085584FED6F1B28B0"><enum>(2)</enum><text>shall publish
notice of that designation in the Federal Register.</text>
</paragraph></subsection><subsection id="H99F6C03975E549AA8B0C3540BDA13177"><enum>(b)</enum><header>Changing
designation</header><text>The Secretary—</text>
<paragraph id="H3C641F992EB14E809877D4F7B94CEAEB"><enum>(1)</enum><text display-inline="yes-display-inline">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 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="H7BB9FDB7799E407EB78A154A660F1778"><enum>(2)</enum><text>shall publish
notice of any changed designation in the Federal Register.</text>
</paragraph></subsection><subsection id="HCEE1346142964DA7B01F509B93316367"><enum>(c)</enum><header>Permissible
dates</header>
<paragraph id="HEACC35D18E9B44B38D048433619586B6"><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 18 months
after the date of the enactment of this title.</text>
</paragraph><paragraph id="HE01F5BDF11E64410894836906A25571C"><enum>(2)</enum><header>Extension of
time</header><text>The Secretary may designate a date that is later than 18
months after the date of the enactment of this title if the Secretary transmits
to appropriate committees of Congress—</text>
<subparagraph id="HB31566AC9FEC470588A943DFB88322E9"><enum>(A)</enum><text>a written
determination that orderly implementation of this title is not feasible on the
date that is 18 months after the date of the enactment of this title;</text>
</subparagraph><subparagraph id="H272BA2F5578B4E648D9296AC48F47600"><enum>(B)</enum><text>an explanation of
why an extension is necessary for the orderly implementation of this title;
and</text>
</subparagraph><subparagraph id="H55B53FE75ED24BBB9057B17ACDD1994D"><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="HC7B9470AF2CB4083AF722E40966FF0AA"><enum>(3)</enum><header>Extension
limited</header><text>In no case shall any date designated under this section
be later than 24 months after the date of the enactment of this title.</text>
</paragraph></subsection></section><section id="H6EA44E6C7F4B44B880582C904136E1E1"><enum>4603.</enum><header>Savings
provisions</header>
<subsection id="HF9F2BC910F124EE0A0BA16C6F9DC66B2"><enum>(a)</enum><header>Board of
governors</header>
<paragraph id="HAAF91B6621E6401994D901C0ED8CD132"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(1) shall 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="H4F82FDE39D004268B189DCEC27556BFE"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any consumer financial protection function of the Board of Governors
transferred to the Director by this title; and</text>
</subparagraph><subparagraph id="H44875968915C4C3DAE226DC19C0F55C8"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H503806F974A140CA8E561937906E9898"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
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 Director by this title, except that
the Director 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="H9305D6B53F8E4E97B742064519703135"><enum>(b)</enum><header>Federal deposit
insurance corporation</header>
<paragraph id="H81E60905549842C89569D43EA4B3DB5C"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(4) shall 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="H23E3043B7E094B7BB1263F6749505655"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any consumer financial protection function of the Federal Deposit Insurance
Corporation transferred to the Director by this title; and</text>
</subparagraph><subparagraph id="H688AC0C75FFA4C42BCEC0847CFC5616E"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HF173D516DDE447C9BAB10A4A5C7A0293"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
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
Director by this title, except that the Director 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="H6FFC4A0B97F5458AB816834201B094CD"><enum>(c)</enum><header>Federal trade
commission</header>
<paragraph id="H628BE54CB5B1406AADDFFDFE2ECCEBC1"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(5) shall not
affect the validity of any right, duty, or obligation of the United States, the
Federal Trade Commission, or any other person, that—</text>
<subparagraph id="H9AA71396F6D64170B07110B05EE8C42A"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any consumer financial protection function of the Federal Trade Commission
transferred to the Director by this title; and</text>
</subparagraph><subparagraph id="HF577D954E4004E00A30147974F775537"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HCE859FEC05244ED99F00A30A9BCF3AEE"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
abate any proceeding commenced by or against the Federal Trade Commission
before the designated transfer date with respect to any consumer financial
protection function of the Federal Trade Commission transferred to the Director
by this title, except that the Director shall be substituted for the Federal
Trade Commission as a party to any such proceeding as of the designated
transfer date.</text>
</paragraph></subsection><subsection id="H16A87278D4D54A51BB6DCD2F347A036C"><enum>(d)</enum><header>National credit
union administration</header>
<paragraph id="H50D89163405F4D51B224B0C8BFF45BA8"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(6) shall 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="H5A6DBE3F7407459CBFB9E688321AA5E8"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any consumer financial protection function of the National Credit Union
Administration transferred to the Director by this title; and</text>
</subparagraph><subparagraph id="H48F5215C50B1496F981394E4E6D680B9"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H2D9457A7F17640E986412ADF864A07DF"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
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
Director by this title, except that the Director 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="H240DC855996A468B83A33CC984CF03D8"><enum>(e)</enum><header>Comptroller of
the Currency</header>
<paragraph id="H572ECBACAD4F45588C9A280177C0EB70"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(2) shall 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="H33A4056B597C4DB19C6E0C842903F7E3"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any consumer financial protection function of the Comptroller of the
Currency transferred to the Director by this title; and</text>
</subparagraph><subparagraph id="HA762436B3DC5494BA54B0011A148ABAD"><enum>(B)</enum><text>existed on the day
before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="H68E4942E46844FA385AA716BF78D2A7D"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
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 Director by this title before the designated transfer date, except that the
Director 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="H003F794D619141E3A19570BE0E4E5FE8"><enum>(f)</enum><header>Director of the
office of thrift supervision</header>
<paragraph id="H1E0F469B6E2E4F219A08D319251A2D3F"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text>Section 4601(a)(3) 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—</text>
<subparagraph id="H117BB8CD69AD4686B51BCED586256F70"><enum>(A)</enum><text display-inline="yes-display-inline">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 Director by this title; and</text>
</subparagraph><subparagraph id="HAB3D55C07D80489FA21E64ABCE88D645"><enum>(B)</enum><text>that existed on
the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HB2BA0881FDAC4BF98ADC153A45DE0688"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
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 Director by this title before the designated
transfer date, except that the Director 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="H34360B5D24844928BEC267D4C6AFF093"><enum>(g)</enum><header>Secretary of
housing and urban development</header>
<paragraph id="HF1ADD2266B834182801F13169946847B"><enum>(1)</enum><header>Existing rights,
duties, and obligations not affected</header><text display-inline="yes-display-inline">Section 4601(a)(7) shall not affect the
validity of any right, duty, or obligation of the United States, the Secretary
of Housing and Urban Development, the Department of Housing and Urban
Development, or any other person, that—</text>
<subparagraph id="H1C5C3F1804314E2487853F1E806B3F65"><enum>(A)</enum><text display-inline="yes-display-inline">arises under any provision of law relating
to any function of the Secretary of Housing and Urban Development under the
Real Estate Settlement Procedures Act of 1974 and the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 transferred to the Director by
this title; and</text>
</subparagraph><subparagraph id="HEC8E298A487944C6B547D4E25599E809"><enum>(B)</enum><text>that existed on
the day before the designated transfer date.</text>
</subparagraph></paragraph><paragraph id="HF2CC9856F8434155AAA83F965D400BF0"><enum>(2)</enum><header>Continuation of
suits</header><text display-inline="yes-display-inline">this title shall not
abate any proceeding commenced by or against the Secretary 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 Housing and
Urban Development transferred to the Director by this title before the
designated transfer date, except that the Director shall be substituted for the
Secretary of Housing and Urban Development (or such Department) as a party to
any such proceeding as of the designated transfer date.</text>
</paragraph></subsection><subsection id="H9BA4D8503FE044A4A466D6AEDDC0E9E3"><enum>(h)</enum><header>Continuation of
existing orders, regulations, determinations, agreements, and
resolutions</header><text display-inline="yes-display-inline">All orders,
resolutions, determinations, agreements, and regulations that have been issued,
made, prescribed, or allowed to become effective by the Board of Governors (or
any Federal reserve bank), the Federal Deposit Insurance Corporation, the
Federal Trade Commission, the National Credit Union Administration, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Secretary of Housing and Urban Development, 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 according to the terms of
those orders, resolutions, determinations, agreements, and regulations, and
shall be enforceable by or against the Director until modified, terminated, set
aside, or superseded in accordance with applicable law by the Director, by any
court of competent jurisdiction, or by operation of law.</text>
</subsection><subsection id="H9A9CAB6BF313423A8F64930601D27FC9"><enum>(i)</enum><header>Identification
of regulations continued</header><text display-inline="yes-display-inline">Not
later than the designated transfer date, the Director—</text>
<paragraph id="H979DE5C21D834935B424E34A761E5469"><enum>(1)</enum><text display-inline="yes-display-inline">shall, after 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, and the Secretary of Housing
and Urban Development identify the regulations continued under subsection (g)
that will be enforced by the Director; and</text>
</paragraph><paragraph id="HC69273875F8C48E9A2FE831B90A073E9"><enum>(2)</enum><text>shall publish a
list of such regulations in the Federal Register.</text>
</paragraph></subsection><subsection id="HB5B95C9CAD1246A6962B0F5F292187FD"><enum>(j)</enum><header>Status of
regulations proposed or not yet effective</header>
<paragraph id="H41493B27A8B34FFBB4238BE8931F9BE1"><enum>(1)</enum><header>Proposed
regulations</header><text display-inline="yes-display-inline">Any proposed
regulation of the Board of Governors, the Federal Deposit Insurance
Corporation, the Federal Trade Commission, the National Credit Union
Administration, the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, or the Secretary of Housing and Urban Development which
that agency, in performing consumer financial protection functions transferred
by this title, has proposed before the designated transfer date but has not
published as a final regulation before that date, shall be deemed to be a
proposed regulation of the Director.</text>
</paragraph><paragraph id="H53A39012DE664411A8BDBF2D0BA48FC2"><enum>(2)</enum><header>Regulations not
yet effective</header><text display-inline="yes-display-inline">Any interim or
final regulation of Board of Governors, the Federal Deposit Insurance
Corporation, the Federal Trade Commission, the National Credit Union
Administration, the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, or the Secretary of Housing and Urban Development 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 take effect as a regulation of the
Director according to its terms.</text>
</paragraph></subsection></section><section id="H848F4813EAC146B1815AB257B1CF3F99"><enum>4604.</enum><header>Transfer of
certain personnel</header>
<subsection id="HC285D185A263460F8AC281FDEB2A7DEC"><enum>(a)</enum><header>In
general</header>
<paragraph id="H7DDA353FEB7344C5B87BD7394FA583AB"><enum>(1)</enum><header>Certain federal
reserve system employees transferred</header>
<subparagraph id="HBACAA113EFBC493785478890CDD1CEA7"><enum>(A)</enum><header>Identifying
employees for transfer</header><text display-inline="yes-display-inline">The
Director and the Board of Governors shall—</text>
<clause id="H8094DCAEE60343799C5F8CB3BFEC5543"><enum>(i)</enum><text display-inline="yes-display-inline">jointly determine the number of employees
of the Board necessary to perform or support the consumer financial protection
functions of the Board of Governors that are transferred to the Director by
this title; and</text>
</clause><clause id="H3B0AFF5490F4469C8B0DAD0E382DCB6B"><enum>(ii)</enum><text display-inline="yes-display-inline">consistent with the number determined under
clause (i), jointly identify employees of the Board of Governors for transfer
to the Agency in a manner that the Director and the Board of Governors, in
their sole discretion, deem equitable.</text>
</clause></subparagraph><subparagraph id="H248C305820A346D6840F4B183EA3D916"><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 Agency for
employment.</text>
</subparagraph><subparagraph id="HA183044FEA1D467492CCCECE57EF768C"><enum>(C)</enum><header>Federal reserve
bank employees</header><text>Employees of any Federal reserve bank who, on the
day before the designated transfer date, 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="HB98E7C69567947958ADEC3D7AC791182"><enum>(2)</enum><header>Certain fdic
employees transferred</header>
<subparagraph id="H7A1641B700E64C1F9CCDD14FE1BEF6EA"><enum>(A)</enum><header>Identifying
employees for transfer</header><text display-inline="yes-display-inline">The
Director and the Board of Directors of the Federal Deposit Insurance
Corporation shall—</text>
<clause id="H28EAE67CAF01485C96D08FF1FD6CB5B4"><enum>(i)</enum><text display-inline="yes-display-inline">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 Director by
this title; and</text>
</clause><clause id="H0B84247F17234B1BAF6D0A938A5AE165"><enum>(ii)</enum><text display-inline="yes-display-inline">consistent with the number determined under
clause (i), jointly identify employees of the Corporation for transfer to the
Agency in a manner that the Director and the Board of Directors of the
Corporation, in their discretion, deem equitable.</text>
</clause></subparagraph><subparagraph id="H48060CB35C7044409097D3345E29E1F6"><enum>(B)</enum><header>Identified
employees transferred</header><text>All employees of the Corporation identified
under subparagraph (A)(ii) shall be transferred to the Agency for
employment.</text>
</subparagraph></paragraph><paragraph id="HECA9DE98088F4CF5A8EAF4F618D0C530"><enum>(3)</enum><header>Certain ncua
employees transferred</header>
<subparagraph id="H868EAB503F92423999A218D09BA44C9B"><enum>(A)</enum><header>Identifying
employees for transfer</header><text display-inline="yes-display-inline">The
Director and the National Credit Union Administration Board shall—</text>
<clause id="H43F3D6FB1C9B497EAA075711786C87A3"><enum>(i)</enum><text display-inline="yes-display-inline">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 Director by this title; and</text>
</clause><clause id="H5ACF62540D7C4BF3A7B741DF6BEE237E"><enum>(ii)</enum><text display-inline="yes-display-inline">consistent with the number determined under
clause (i), jointly identify employees of the National Credit Union
Administration for transfer to the Agency in a manner that the Director and the
National Credit Union Administration Board, in their discretion, deem
equitable.</text>
</clause></subparagraph><subparagraph id="H29F0141D40BA412A85E9E9BF656589A9"><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 Agency for employment.</text>
</subparagraph></paragraph><paragraph id="H69EFB39F1F3649048F610A5E20FD793C"><enum>(4)</enum><header>Certain hud
employees transferred</header>
<subparagraph id="HEA38FDE18CC645B286AAF7BA52944340"><enum>(A)</enum><header>Identifying
employees for transfer</header><text display-inline="yes-display-inline">The
Director and the Secretary of Housing and Urban Development shall—</text>
<clause id="H58E3EB9480BF42ABA31DE5BA8FA49787"><enum>(i)</enum><text display-inline="yes-display-inline">jointly determine the number of employees
of the Department of Housing and Urban Development necessary to perform or
support the consumer financial protection functions of the Secretary of Housing
and Urban Development that are transferred to the Director by this title;
and</text>
</clause><clause id="H041E891379D54F63AF67C9B4AB93A5B8"><enum>(ii)</enum><text display-inline="yes-display-inline">consistent with the number determined under
clause (i), jointly identify employees of the Department of Housing and Urban
Development for transfer to the Agency in a manner that the Director and the
Secretary of Housing and Urban Development, in their discretion, deem
equitable.</text>
</clause></subparagraph><subparagraph id="H556708B5885C4D65A0BCE7CFC146D888"><enum>(B)</enum><header>Identified
employees transferred</header><text display-inline="yes-display-inline">All
employees of the Department of Housing and Urban Development identified under
subparagraph (A)(ii) shall be transferred to the Agency for employment.</text>
</subparagraph></paragraph><paragraph id="HFFF6A15DB5E741E285E344D19C483FFC"><enum>(5)</enum><header>Appointment
authority for excepted service and senior executive service
transferred</header>
<subparagraph id="H976BA2BEDF1542F79E7E825884045D17"><enum>(A)</enum><header>In
general</header><text>In the case of employees occupying positions in the
excepted service or the Senior Executive Service, any appointment authority
established pursuant to law or regulations of the Director of the Office of
Personnel Management for filling such positions shall be transferred, subject
to subparagraph (B).</text>
</subparagraph><subparagraph id="HD6B63D637B874B92B81675D630405DBC"><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 to such subparagraph) 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="HBFA7DF937F3A4C528296D44675CB8C5D"><enum>(b)</enum><header>Timing of
transfers and position assignments</header><text>Each employee to be
transferred under this section shall—</text>
<paragraph id="H0F716BE287294214B1E4004B94CF5DEC"><enum>(1)</enum><text>be transferred not
later than 90 days after the designated transfer date; and</text>
</paragraph><paragraph id="H268DB1C627AA441DBB67B3C5845AA4E4"><enum>(2)</enum><text>receive notice of
such employee’s position assignment not later than 120 days after the effective
date of the employee’s transfer.</text>
</paragraph></subsection><subsection id="H29D2232B852C41DEB1C475B2500BE676"><enum>(c)</enum><header>Transfer of
function</header>
<paragraph id="H77EA1BEA088C4792A2C78D2F4AC5A12A"><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="H891DBED13C05436F8A9B4B49ADC1338F"><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="H4C2F4D7E8C7F4141A6CED1B794469EDB"><enum>(d)</enum><header>Equal status and
tenure positions</header>
<paragraph id="HAFD8AE38BCB4485E8F7B6EDE2C763CF7"><enum>(1)</enum><header>Employees
transferred from fdic, ftc, hud, ncua, occ, and ots</header><text display-inline="yes-display-inline">Each employee transferred from the Federal
Deposit Insurance Corporation, the Federal Trade Commission, 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 Agency with the same status and tenure as
he or she held on the day before the designated transfer date.</text>
</paragraph><paragraph id="H52A0934737344C5D9F57D30D44DF5A71"><enum>(2)</enum><header>Employees
transferred from the federal reserve system</header>
<subparagraph id="HF431869DE4B54483B368ACBFF96082C3"><enum>(A)</enum><header>Comparability</header><text>Each
employee transferred from the Board of Governors or from a Federal reserve bank
shall be placed in a position with the same status and tenure as that of
employees transferring to the Agency from the Office of the Comptroller of the
Currency who perform similar functions and have similar periods of
service.</text>
</subparagraph><subparagraph id="H8972249820E8491982C92674ADCCB93F"><enum>(B)</enum><header>Service periods
credited</header><text>For purposes of this paragraph, periods of service with
the Board of Governors or a Federal reserve bank shall be credited as periods
of service with a Federal agency.</text>
</subparagraph></paragraph></subsection><subsection id="H0A9791A2E5F54C06A5757415F104C7ED"><enum>(e)</enum><header>Additional
certification requirements limited</header><text>Examiners transferred to the
Agency shall not be subject to any additional certification requirements before
being placed in a comparable examiner’s position at the Agency examining the
same types of institutions as the transferred examiners examined before such
examiners were transferred.</text>
</subsection><subsection id="H9E572B9DEC8349778BD2B79112E002DB"><enum>(f)</enum><header>Personnel
actions limited</header>
<paragraph id="H739999EF0F80427CB32CE86915701258"><enum>(1)</enum><header>5-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 shall not, during the 5-year period beginning on the designated transfer
date, be involuntarily separated, or involuntarily reassigned outside such
transferred employee’s local locality pay area as defined by the Director of
the Office of Personnel Management.</text>
</paragraph><paragraph id="H71E98B9D48274B7A96BA23942633ED91"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) shall not be construed as limiting the right of the Director to—</text>
<subparagraph id="H74724F02E1754A958AAF872D767E4FD5"><enum>(A)</enum><text>separate an
employee for cause or for unacceptable performance;</text>
</subparagraph><subparagraph id="HB8B4F1E9E72B4E8693C428C7D2BCB657"><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="H22D797B2A47140FB947FFBA65046AB71"><enum>(C)</enum><text>reassign a
supervisory employee outside such employee’s locality pay area as defined by
the Director of the Office of Personnel Management when the Director determines
that the reassignment is necessary for the efficient operation of the
Agency.</text>
</subparagraph></paragraph></subsection><subsection id="H08E56A81589443CFA26E20E873CBA13C"><enum>(g)</enum><header>Pay</header>
<paragraph id="HF541FBC90F6941559581DE52D509E0C2"><enum>(1)</enum><header>1-year
protection</header><text>Except as provided in paragraph (2), each transferred
employee shall, during the 1-year period beginning on the designated transfer
date, receive pay at a rate not less than the basic rate of pay (including any
geographic differential) that the employee received during the 1-year period
immediately before the transfer.</text>
</paragraph><paragraph id="HE2C90E851608474E881853840B19E266"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) shall not be construed as limiting the right of the Agency to reduce the
rate of basic pay of a transferred employee—</text>
<subparagraph id="H9D779B41C7504E9786BE0DA7192E0260"><enum>(A)</enum><text>for cause;</text>
</subparagraph><subparagraph id="H5AB06CCDBE3B4B13B89A2FF83BB6DCE3"><enum>(B)</enum><text>for unacceptable
performance; or</text>
</subparagraph><subparagraph id="HF7A3ADC4B38D434EBF55362092C64CB2"><enum>(C)</enum><text>with the
employee’s consent.</text>
</subparagraph></paragraph><paragraph id="HCBB4BECB0DB64BCB8200DC659941F82B"><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 Agency.</text>
</paragraph><paragraph id="H9B6C3C851DAF47B0843414E2AF9D624B"><enum>(4)</enum><header>Pay increases
permitted</header><text>Paragraph (1) shall not be construed as limiting the
authority of the Agency to increase a transferred employee’s pay.</text>
</paragraph></subsection><subsection id="H309123EBA55E4365B69BCFD49E21364A"><enum>(h)</enum><header>Reorganization</header>
<paragraph id="H55FD47BBB60E4938A5223ABC5F3D81E9"><enum>(1)</enum><header>Between 1st and
3rd year</header>
<subparagraph id="H4F885EF3EE294653B8590671047CF3D6"><enum>(A)</enum><header>In
general</header><text>If the Agency determines, during the period beginning 1
year after the designated transfer date and ending 3 years after the designated
transfer date, that a reorganization of the staff of the Agency is
required—</text>
<clause id="HF31FD7AF09E74B0D875A59F2DB06BF1C"><enum>(i)</enum><text>that
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>
</clause><clause id="H79FA17B721F3406481F1AC425211DD47"><enum>(ii)</enum><text>before the
reorganization occurs, all employees in the same locality pay area as defined
by the Director of the Office of Personnel Management shall be placed in a
uniform position classification system; and</text>
</clause><clause id="HA74FE232247645FD9689D974F750031B"><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 Agency shall—</text>
<subclause id="H361D19CAF09840E3B5C2ECDBAF2E596B"><enum>(I)</enum><text>establish
competitive areas (as that term is defined in regulations issued by the
Director of 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="H52EF14457DBC447C8C42CE92662328B8"><enum>(II)</enum><text>establish
competitive levels (as that term is defined in regulations issued by the
Director of 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="HEFEAA72747E545AC924EBD213EBF54DF"><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 Agency as employees appointed to
positions in the competitive service.</text>
</subclause></clause></subparagraph><subparagraph id="H436718CA01194844B787604451B821D0"><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="HDB5AC094D7CA4468BE551B1D5FACFFD7"><enum>(2)</enum><header>After 3rd
year</header>
<subparagraph id="H31C5EE05983B468B964EABAABA42D7F0"><enum>(A)</enum><header>In
general</header><text>If the Agency determines, at any time after the 3-year
period beginning on the designated transfer date, that a reorganization of the
staff of the Agency 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 Agency 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="H29059418FDE64D84B6ADFFD5A9412EE4"><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="H1DC9EAE0FAD24381916D91BB86532A61"><enum>(i)</enum><header>Benefits</header>
<paragraph id="H1E80EDECE8934875B8952D6A8E9F0AA3"><enum>(1)</enum><header>Retirement
benefits for transferred employees</header>
<subparagraph id="H21F643080D8749BC97CD584BAF9F3FA6"><enum>(A)</enum><header>In
general</header>
<clause id="HF7A40B45DE034043B4B48473272FE52D"><enum>(i)</enum><header>Continuation of
existing retirement plan</header><text>Except as provided in subparagraph (B),
each transferred employee shall remain enrolled in such employee’s existing
retirement plan as long as the employee remains employed by the Agency.</text>
</clause><clause id="HA6B61709BBBB4931BB97EE9871B36434"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Director shall pay any employer contributions to
the existing retirement plan of each transferred employee as required under
that plan.</text>
</clause></subparagraph><subparagraph id="H4D4601340CB7403F967BA83ED00BAD8D"><enum>(B)</enum><header>Option for
employees transferred from federal reserve system to be subject to federal
employee retirement program</header>
<clause id="H0ADDDBA822DA4728AC4B05012CEC4561"><enum>(i)</enum><header>Election</header><text>Any
transferred employee who was enrolled in a Federal Reserve System retirement
plan on the day before the date of the employee’s transfer to the Agency may,
during the period beginning 6 months after the designated transfer date and
ending 1 year after the designated transfer date, elect to be subject to the
Federal employee retirement program.</text>
</clause><clause id="HFA2E8E3F80554451915A6757E3860666"><enum>(ii)</enum><header>Effective date
of coverage</header><text>For any employee making an election under clause (i),
coverage by the Federal employee retirement program shall begin 1 year after
the designated transfer date.</text>
</clause></subparagraph><subparagraph id="H432A966F8AA94C01BA3A28AB9977C3E0"><enum>(C)</enum><header>Agency
participation in federal reserve system retirement plan</header>
<clause id="HDDDA9A669F684E48BA87799619D0718C"><enum>(i)</enum><header>Separate account
in federal reserve system retirement plan established</header><text>A separate
account in the Federal Reserve System retirement plan shall be established for
Agency employees who do not make the election under subparagraph (B).</text>
</clause><clause id="H32E8FEB911B1420CA0C864F4E09476EA"><enum>(ii)</enum><header>Funds
attributable to transferred employees remaining in federal reserve system
retirement plan transferred</header><text>The proportionate share of funds in
the Federal Reserve System retirement plan, including the proportionate share
of any funding surplus in that plan, attributable to a transferred employee who
does not make the election under subparagraph (B), shall be transferred to the
account established under clause (i).</text>
</clause><clause id="H7C7E9380B3C64E2EA8FDBC6BAC36606B"><enum>(iii)</enum><header>Employer
contributions deposited</header><text>The Director shall deposit into the
account established under clause (i) the employer contributions that the Agency
makes on behalf of employees who do not make the election under subparagraph
(B).</text>
</clause><clause id="H83B797CC67EC446C87154FD7C6F47483"><enum>(iv)</enum><header>Account
administration</header><text>The Director shall administer the account
established under clause (i) as a participating employer in the Federal Reserve
System retirement plan.</text>
</clause></subparagraph><subparagraph id="H68DC01922B0449A2877ED77AB53AB9E7"><enum>(D)</enum><header>Definitions</header><text>For
purposes of this paragraph, the following definitions shall apply:</text>
<clause id="HA2A0F5D1305F43CB916020EE85B39F1A"><enum>(i)</enum><header>Existing
retirement plan</header><text>The term <quote>existing retirement plan</quote>
means, with respect to any employee transferred under this section, the
particular retirement plan (including the Financial Institutions Retirement
Fund) and any associated thrift savings plan of the agency or Federal reserve
bank from which the employee was transferred, which the employee was enrolled
in on the day before the designated transfer date.</text>
</clause><clause id="H50FC0E43DBE843FCBF73A127F5D3B778"><enum>(ii)</enum><header>Federal
employee retirement plan</header><text>The term <quote>Federal employee
retirement program</quote> means the retirement program for Federal employees
established by chapters 83 and 84 of title 5, United States Code.</text>
</clause></subparagraph></paragraph><paragraph id="H498EA91083044116869E0158D9761956"><enum>(2)</enum><header>Benefits other
than retirement benefits for transferred employees</header>
<subparagraph id="H59FFE759D4464D6EAC246673A2F254C4"><enum>(A)</enum><header>During 1st
year</header>
<clause id="H87BDE2B652FB44EE80F86A5E89C0AD02"><enum>(i)</enum><header>Existing plans
continue</header><text>Each transferred employee 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
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="H2CDB3A466F114EBD8E6A5B356F7A6141"><enum>(ii)</enum><header>Employer’s
contribution</header><text>The Director 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="H2E4E8690E5A44C78B1A03B007CB6F926"><enum>(B)</enum><header>Dental, vision,
or life insurance after 1st year</header><text>If, after the 1-year period
beginning on the designated transfer date, the Director decides not to continue
participation in any dental, vision, or life insurance program of an agency or
bank from which employees transferred, a transferred employee who is a member
of such a program may, before the Director’s decision takes effect, elect to
enroll, without regard to any regularly scheduled open season, in—</text>
<clause id="H6400A837FBE34833A1E883484B2F104E"><enum>(i)</enum><text>the
enhanced dental benefits established by chapter 89A of title 5, United States
Code;</text>
</clause><clause id="H91565141E64149A48DE967670FA9259A"><enum>(ii)</enum><text>the
enhanced vision benefits established by chapter 89B of title 5, United States
Code; and</text>
</clause><clause id="HF595DC8282B444958A662398D7538F54"><enum>(iii)</enum><text>the Federal
Employees Group Life Insurance Program established by chapter 87 of title 5,
United States Code, without regard to any requirement of insurability.</text>
</clause></subparagraph><subparagraph id="HF22160EFB4D3469E9B0AEDEB75CAFCA7"><enum>(C)</enum><header>Long-term care
insurance after 1st year</header><text>If, after the 1-year period beginning on
the designated transfer date, the Director decides not to continue
participation in any long-term care insurance program of an agency or bank from
which employees transferred, a transferred employee who is a member of such a
program may, before the Director’s decision takes effect, elect to apply for
coverage under the Federal Long Term Care Insurance Program established by
chapter 90 of title 5, United States Code, under the underwriting requirements
applicable to a new active workforce member (as defined in Part 875, title 5,
Code of Federal Regulations).</text>
</subparagraph><subparagraph id="HB025AE95CAC046A3BDEC074EC214E646"><enum>(D)</enum><header>Employee’s
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="H5D1D2EB608C1426585179AFD56D72CEB"><enum>(E)</enum><header>Additional
funding</header><text>The Director 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 Director and the Director of 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.</text>
</subparagraph><subparagraph id="H90076289E3E54CD2BCFEC98E0DA01673"><enum>(F)</enum><header>Credit for time
enrolled in other plans</header><text display-inline="yes-display-inline">For
employees transferred under this section, enrollment in a health benefits plan
administered by the Comptroller of the Currency, the Director of the Office of
Thrift Supervision, the Federal Deposit Insurance Corporation, the National
Credit Union Administration, the Board of Governors, the Secretary of Housing
and Urban Development, or a Federal reserve bank, 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="H66C4A0EF2BE3452C8CE9911F5CBA4DB0"><enum>(G)</enum><header>Special
provisions to ensure continuation of life insurance benefits</header>
<clause id="H7FE4C0AA0284406781ECCDEF236FA9F4"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">An annuitant (as
defined in section 8901(3) of title 5, United States Code) who is enrolled in a
life insurance plan administered by the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Federal Trade
Commission, the Secretary of Housing and Urban Development, the National Credit
Union Administration, the Comptroller of the Currency, or the Director of the
Office of Thrift Supervision 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 Agency, without regard to any regularly scheduled open
season and requirement of insurability.</text>
</clause><clause id="H56FFFDC0218D4E2399BA018A6DF19106"><enum>(ii)</enum><header>Employee’s
contribution</header><text>An individual enrolled in a life insurance plan
under this clause shall pay any employee contribution required by the
plan.</text>
</clause><clause id="HDC830A9289844BE88037E98718799356"><enum>(iii)</enum><header>Additional
funding</header><text>The Director 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 Director and the Director of 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="HE405C34162044CC9AEB6F4646BAE175C"><enum>(iv)</enum><header>Credit for time
enrolled in other plans</header><text display-inline="yes-display-inline">For
employees transferred under this section, enrollment in a life insurance plan
administered by the Board of Governors, the Federal Deposit Insurance
Corporation, the Federal Trade Commission, the Secretary of Housing and Urban
Development, the National Credit Union Administration, the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, or a Federal
reserve bank 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></subsection><subsection id="HAF275DA6F3D74B8E97C7715D76834D5A"><enum>(j)</enum><header>Implementation
of uniform pay and classification system</header><text>Not later than 2 years
after the designated transfer date, the Director shall implement a uniform pay
and classification system for all transferred employees.</text>
</subsection><subsection id="HC942A25C583741B6BA41B012651DC265"><enum>(k)</enum><header>Equitable
treatment</header><text>In administering the provisions of this section, the
Director—</text>
<paragraph id="HB810AB1D396F4FAAA342FE834AB8BA7D"><enum>(1)</enum><text display-inline="yes-display-inline">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 Federal Trade Commission, the Secretary 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="H6E910B32B0C94807AAF115815B984D1B"><enum>(2)</enum><text display-inline="yes-display-inline">may take such action as is appropriate in
individual cases so that employees transferred under this section receive
equitable treatment, with respect to those employees’ 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, including the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal
Trade Commission, 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="H00694E02C051450FB4C2D24E3D39DDA3"><enum>(l)</enum><header>Implementation</header><text>In
implementing the provisions of this section, the Director shall work with the
Director of the Office of Personnel Management and other entities with
expertise in matters related to employment to ensure a fair and orderly
transition for affected employees.</text>
</subsection></section><section id="H1963B6513CCF4B6EB026495CC047F04E"><enum>4605.</enum><header>Incidental
transfers</header>
<subsection id="H856FE7BA20C44255B876A65A5894B272"><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="HAB39263FCFCF45B1B8EF605882972C9F"><enum>(b)</enum><header>Sunset</header><text>The
authority provided in this section shall terminate 5 years after the date of
the enactment of this title.</text>
</subsection></section><section id="HB8913F2979BF444A95D2EA0AA9068E17"><enum>4606.</enum><header>Interim
authority of the Secretary</header>
<subsection id="H137D86E1134D4FAEA18CF4CFA7021A41"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to perform the functions of
the Director under this subtitle until the appointment of the Director is
confirmed by the Senate in accordance with section 4102.</text>
</subsection><subsection id="H3188A266C869483B87936A237631B236"><enum>(b)</enum><header>Interim
administrative services by the department of the treasury</header><text>The
Secretary of the Treasury may provide administrative services necessary to
support the Agency before the designated transfer date.</text>
</subsection><subsection id="H2D102D6F4FBF499195CEE21EBF9CE993"><enum>(c)</enum><header>Interim funding
for the department of the treasury</header><text>For the purposes of carrying
out the authorities granted in this section, there are appropriated to the
Secretary of the Treasury such sums as are necessary. Notwithstanding any other
provision of law, such amounts 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>
</subsection></section></subtitle><subtitle id="H0D279020439F44608161696565F79F22"><enum>G</enum><header>Regulatory
Improvements</header>
<section display-inline="no-display-inline" id="HE2526DE24E694A6A801E4EA939399F6D"><enum>4701.</enum><header>Collection of
deposit account data</header>
<subsection id="H7F1BF73E4DDF45A7AC035DBCABBA6006"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">The purpose of this section is to promote
awareness and understanding of the access of individuals and communities to
financial services, and to identify business and community development needs
and opportunities.</text>
</subsection><subsection id="HE74224A1719A4FA49DA0E5B9FE822769"><enum>(b)</enum><header>In
general</header>
<paragraph id="H00B08302008244859AFE06839FE99992"><enum>(1)</enum><header>Records
required</header><text>For each branch, automated teller machine at which
deposits are accepted, and other deposit taking service facility with respect
to any financial institution, the financial institution shall maintain records
of the number and dollar amounts of deposit accounts of customers.</text>
</paragraph><paragraph id="HED8FBBE2A642451B90CB83C61D41DE3E"><enum>(2)</enum><header>Geo-coded
addresses of depositors</header><text>The customers’ addresses maintained
pursuant to paragraph (1) shall be geo-coded so that data shall be collected
regarding the census tracts of the residence or business location of the
customers.</text>
</paragraph><paragraph id="HA1E9B26AC7B94FDE9A3B91F1E0D3058F"><enum>(3)</enum><header>Identification
of depositor type</header><text>In maintaining records on any deposit account
under this section, the financial institution shall also record whether the
deposit account is for a residential or commercial customer.</text>
</paragraph><paragraph id="HAC7AF9B5947C4EC984E9FA8CD2403A41"><enum>(4)</enum><header>Public
availability</header>
<subparagraph id="H38E22453692048D99E33AEFF54EA07DC"><enum>(A)</enum><header>In
general</header><text>The following information shall be publicly available on
an annual basis—</text>
<clause id="H31F8F06331E84C489DA74904F0FFE810"><enum>(i)</enum><text>the
address and census tracts of each branch, automated teller machine at which
deposits are accepted, and other deposit taking service facility with respect
to any financial institution;</text>
</clause><clause id="H4E21CC2D493C4FC9AA132D9E05739C65"><enum>(ii)</enum><text>the
type of deposit account including whether the account was a checking or savings
account; and</text>
</clause><clause id="H00B63DA086DE4D7F91FB8D2D0C5A6AFE"><enum>(iii)</enum><text>data on the
number and dollar amounts of the accounts, presented by census tract location
of the residential and commercial customers.</text>
</clause><clause id="HFB234C59C74C479CB90C1A447BDDBA36"><enum>(iv)</enum><text display-inline="yes-display-inline">any other data deemed appropriate by the
Director.</text>
</clause></subparagraph><subparagraph id="HD048721A39484932A252588D3DBCD79B"><enum>(B)</enum><header>Protection of
identity</header><text>In the publicly available data, any personally
identifiable data element shall be removed so as to protect the identities of
the commercial and residential customers.</text>
</subparagraph></paragraph></subsection><subsection id="H0D49AC1936C949E3A0B995AE334409D5"><enum>(c)</enum><header>Availability of
information</header>
<paragraph id="HD082D6C300A7465C881CA209E39B6BC6"><enum>(1)</enum><header>Submission to
agencies</header><text>The data required to be compiled and maintained under
this section by any financial institution shall be submitted annually to the
Agency, or to a Federal banking agency, in accordance with regulations
prescribed by the Director.</text>
</paragraph><paragraph id="HAA899D29021540C5A9A49B7A4C405059"><enum>(2)</enum><header>Availability of
information</header><text>Information compiled and maintained under this
section shall be retained for not less than 3 years after the date of
preparation and shall be made available to the public, upon request, in the
form required under regulations prescribed by the Director.</text>
</paragraph></subsection><subsection id="HA72610D787624695B42243911B2EC79E"><enum>(d)</enum><header>Agency
use</header><text>The Director—</text>
<paragraph id="H599DBA91EFF04262B80F2F8249D8EEEF"><enum>(1)</enum><text>shall assess the
distribution of residential and commercial accounts at such financial
institution across income and minority level of census tracts; and</text>
</paragraph><paragraph id="HA2A4412EFF394DA8A490EE70C0E976A8"><enum>(2)</enum><text>may use the data
for any other purpose as permitted by law.</text>
</paragraph></subsection><subsection id="H5C9A1738232D44F589ADE451E4CB5B1F"><enum>(e)</enum><header>Regulations and
guidance</header>
<paragraph id="H10814E85A76B470DAF6ABC2F3FB383B3"><enum>(1)</enum><header>In
general</header><text>The Director shall prescribe such regulations and issue
guidance as may be necessary to carry out, enforce, and compile data pursuant
to this section.</text>
</paragraph><paragraph id="HE8C4B9B997FF48D481FBB8E98CB320AE"><enum>(2)</enum><header>Data compilation
regulations</header><text>The Director shall prescribe regulations regarding
the provision of data compiled under this section to the Federal banking
agencies to carry out the purposes of this section and shall issue guidance to
financial institutions regarding measures to facilitate compliance with the
this section and the requirements of regulations prescribed under this
section.</text>
</paragraph></subsection><subsection id="H35D8DF71DF5D4DA8B4719BD1989730FD"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H0BF241BB54E4401A9E3E401BDA8023E1"><enum>(1)</enum><header>Agency</header><text>The
term <quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><paragraph id="H0358340A51784046AB16571ECA9270C8"><enum>(2)</enum><header>Credit
union</header><text>The term <quote>credit union</quote> means a Federal credit
union or a State-chartered credit union (as such terms are defined in section
101 of the Federal Credit Union Act).</text>
</paragraph><paragraph id="HDF9E76A1284F44A8AE26EE0F8C3BE354"><enum>(3)</enum><header>Deposit
account</header><text>The term <quote>deposit account</quote> includes any
checking account, savings account, credit union share account, and other type
of account as defined by the Director.</text>
</paragraph><paragraph id="H97519FFD4492406D8B4B5B02401007A5"><enum>(4)</enum><header>Director</header><text>The
term <quote>Director</quote> means the Director of the Agency.</text>
</paragraph><paragraph id="HC94D102FA3B6462DB9441A7A24934F45"><enum>(5)</enum><header>Federal banking
agency</header><text>The term “Federal banking agency” means the Board of
Governors of the Federal Reserve System, the head of the agency responsible for
chartering and regulating national banks, the Director of the Office of Thrift
Supervision, the Federal Deposit Insurance Corporation, and the National Credit
Union Administration; and the term <quote>Federal banking agencies</quote>
means all of those agencies.</text>
</paragraph><paragraph id="H6D45AE5481574DE38465C3AB44260584"><enum>(6)</enum><header>Financial
institution</header><text>The term <quote>financial institution</quote>—</text>
<subparagraph id="H3EAD776C07924283BA3C11D38B81D0D5"><enum>(A)</enum><text>has the meaning
given to the term <quote>insured depository institution</quote> in section
3(c)(2) of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="H960B60CFD43F409DB5C5CF9F9532E092"><enum>(B)</enum><text>includes any
credit union.</text>
</subparagraph></paragraph></subsection><subsection id="HBC185BF83F104E6A8296BA72A1D92CBD"><enum>(g)</enum><header>Effective
date</header><text>This section shall take effect on the designated transfer
date.</text>
</subsection></section><section id="H830BB6AECF4A46A5AD9488C1BC2E8DDD"><enum>4702.</enum><header>Small business
data collection</header>
<subsection id="HE2BB77A064F44051BC92222FFE6EDFEC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.) is amended by inserting after section
704A the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA168860DD41D4D8E943455CE6256A0A8" style="USC">
<section id="H846C76504AA048FE85DB52E17F9FE8E2"><enum>704B.</enum><header>Small business
loan data collection</header>
<subsection id="H607B933C035C47DFBF21C1CBDB9CA6E3"><enum>(a)</enum><header>Purpose</header><text display-inline="yes-display-inline">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- and minority-owned small
businesses.</text>
</subsection><subsection id="H681C3CBFB53244B4A92812AA1E9900B3"><enum>(b)</enum><header>In
general</header><text>Subject to the requirements of this section, in the case
of any application to a financial institution for credit for a small business,
the financial institution shall—</text>
<paragraph id="H1683E2552C25446C9C2156804ACC226D"><enum>(1)</enum><text>inquire whether
the business is a women- or minority-owned 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="H382EAA4E29F34451A8FDF9317001C047"><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="H30D9D390BC844263803ACBF9DE0103B6"><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="HE6537A6F93D3474B98D1094AE506E6C0"><enum>(d)</enum><header>No access by
underwriters</header>
<paragraph id="H1629A2726E784247B621FF225B0E2C75"><enum>(1)</enum><header>In
general</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="HEB84C1033FF649FE95E75EC485874439"><enum>(2)</enum><header>Exception</header><text>If
a financial institution determines that 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 will provide
notice to the applicant of the access of the underwriter to this information,
along with notice that the financial institution may not discriminate on this
basis of this information.</text>
</paragraph></subsection><subsection id="HBC0E1CC1340A451A98CB5E1961600B9F"><enum>(e)</enum><header>Form and manner
of information</header>
<paragraph id="H319C67CB125E4098A746D56D5A9F52B5"><enum>(1)</enum><header>In
general</header><text>Each financial institution shall compile and maintain, in
accordance with regulations of the Agency, a record of the information provided
by any loan applicant pursuant to a request under subsection (b).</text>
</paragraph><paragraph id="HC9E509871D294F2E91AF3F1D25C87542"><enum>(2)</enum><header>Itemization</header><text>Information
compiled and maintained under paragraph (1) shall also be itemized in order to
clearly and conspicuously disclose the following:</text>
<subparagraph id="H47F3A5FA8C054905A3F78C173943079F"><enum>(A)</enum><text>The number of the
application and the date the application was received.</text>
</subparagraph><subparagraph id="HF49E9155599943BAB9CB80014EA3F206"><enum>(B)</enum><text>The type and
purpose of the loan or other credit being applied for.</text>
</subparagraph><subparagraph id="H232C31858F0843D3A6E5A66DA9A0CF03"><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="HC8FC66431F214303BDFAC5288C2F4C36"><enum>(D)</enum><text>The type of action
taken with respect to such application and the date of such action.</text>
</subparagraph><subparagraph id="H5CA591FBDDDF4CF78267F757858165CF"><enum>(E)</enum><text>The census tract
in which is located the principal place of business of the small business loan
applicant.</text>
</subparagraph><subparagraph id="H3E710F8E2CF149488C72AB86A617BD33"><enum>(F)</enum><text>The gross annual
revenue of the business in the last fiscal year of the small business loan
applicant preceding the date of the application.</text>
</subparagraph><subparagraph id="H6CA900896D1549B0BE600CBC3326592B"><enum>(G)</enum><text>The race, sex, and
ethnicity of the principal owners of the business.</text>
</subparagraph><subparagraph id="HE3193862D44F40E3B4B09318FF1A15AD"><enum>(H)</enum><text>Any additional
data the Agency determines would aid in fulfilling the purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="HBEAB0131C8204E6595AFB01893649CDC"><enum>(3)</enum><header>Inclusion of
personally identifiable information prohibited</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, and any other personally identifiable information
concerning any individual who is, or is connected with, the small business loan
applicant.</text>
</paragraph><paragraph id="HAEFE672BA06D4FCAB0E9027B7B8F186D"><enum>(4)</enum><header>Discretion to
delete or modify publicly available data</header><text>The Agency may, in the
discretion of the Agency, delete or modify data collected under this section
which is or will be available to the public if the Agency determines that the
deletion or modification of the data would advance a compelling privacy
interest.</text>
</paragraph></subsection><subsection id="H375A08D696E844A99EF641E49EA5893E"><enum>(f)</enum><header>Availability of
information</header>
<paragraph id="HE74DAD0E929F40D4A9CCFDF13A2F3321"><enum>(1)</enum><header>Submission to
agency</header><text>The data required to be compiled and maintained under this
section by any financial institution shall be submitted annually to the
Agency.</text>
</paragraph><paragraph id="H093A31970E7F48F7A6E6AFE4B686447E"><enum>(2)</enum><header>Availability of
information</header>
<subparagraph id="HABF117B9410340C098CC3574E685FC45"><enum>(A)</enum><header>In
general</header><text>Information compiled and maintained under this section
shall be retained for not less than 3 years after the date of preparation and
shall be made available to the public, upon request, in the form required under
regulations prescribed by the Agency.</text>
</subparagraph><subparagraph id="H0C4AC292BA4C4C69891C4CF99EB5A44A"><enum>(B)</enum><header>Annual
disclosure to the public</header><text display-inline="yes-display-inline">In
addition to the availability by request under subparagraph (A) of data compiled
and maintained under this section, the Agency shall annually provide such data
to the public.</text>
</subparagraph><subparagraph id="HEA56493C8A4D4BE697AAAB432EEC8F4D"><enum>(C)</enum><header>Procedures</header><text display-inline="yes-display-inline">The procedures for disclosing data compiled
and maintained under this section to the public shall be determined by the
Agency by regulation.</text>
</subparagraph></paragraph><paragraph id="H1FF8E6909E86486790BDD2DD3CB3E9FE"><enum>(3)</enum><header>Compilation of
aggregate data</header>
<subparagraph id="HD0572F5661AE426BA4480447644B278E"><enum>(A)</enum><header>In
general</header><text>The Agency may, in the discretion of the Agency, compile
for the Agency’s own use compilations of aggregate data.</text>
</subparagraph><subparagraph id="H1A137CC434BA4212B93933A6AC42207E"><enum>(B)</enum><header>Public
availability of aggregate data</header><text display-inline="yes-display-inline">The Agency may, in the discretion of the
Agency, make public compilations of aggregate data in such manner as the Agency
may determine to be appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HCCBEC80EFA3849DE884A67B29AA740F4"><enum>(g)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="HCC50D1B04DB2446997B09B93F683EF2C"><enum>(1)</enum><header>Financial
institution</header><text>The term <quote>financial institution</quote> 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="HAE60D2B8E61E448093919CDE0013E881"><enum>(2)</enum><header>Minority-owned
business</header><text>The term <quote>minority-owned business</quote> means a
business—</text>
<subparagraph id="H5ADAD49516AA44ACBA797963E501BE13"><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="HBACC2E0BC1DC46708C92C4D290BDAF31"><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="H3DF3414A2DA94F6A847527C710B968C1"><enum>(3)</enum><header>Women-owned
business</header><text>The term <quote>women-owned business</quote> means a
business—</text>
<subparagraph id="HEDC5D4350F3E4E45A424E38C89A6AD6F"><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="H69995F8397B140BBA81816DA9B81E9C1"><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><paragraph id="H3CC51E1CAE004F40BC261166D6072E6A"><enum>(4)</enum><header>Minority</header><text>The
term <quote>minority</quote> has the meaning given to such term by section
1204(c)(3) of the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989.</text>
</paragraph><paragraph id="HD309AEA063F042F1AFAC23F8A7566820"><enum>(5)</enum><header>Small business
loan</header><text>The term ‘small business loan’ shall be defined by the
Agency, which may take into account—</text>
<subparagraph id="HEE6836ABAD4B46769E46522173FF8B68"><enum>(A)</enum><text>the gross revenues
of the borrower;</text>
</subparagraph><subparagraph id="HC17ED4ED39BF4140AF8BA858CA350C87"><enum>(B)</enum><text>the total number
of employees of the borrower;</text>
</subparagraph><subparagraph id="H296E967B6B784187A70E72EBA0ED2691"><enum>(C)</enum><text>the industry in
which the borrower has its primary operations; and</text>
</subparagraph><subparagraph id="HFEAF4DE6EF6246388A5436C6ECD1E838"><enum>(D)</enum><text>the size of the
loan.</text>
</subparagraph></paragraph></subsection><subsection id="H56BA7DBDFB9B4C84B084AC7954FDE1AE"><enum>(h)</enum><header>Agency
action</header>
<paragraph id="H42DC1DB7590B4CB8BCA68446FCE0246C"><enum>(1)</enum><header>In
general</header><text>The Agency shall prescribe such regulations and issue
such guidance as may be necessary to carry out, enforce, and compile data
pursuant to this section.</text>
</paragraph><paragraph id="H4358AA38EAC34BE38DD4213685539B2A"><enum>(2)</enum><header>Exceptions</header><text>The
Agency, by regulation or order, may adopt exceptions to any requirement of this
section and may, conditionally or unconditionally, exempt any financial
institution or class of institutions from the requirements of this section as
the Agency determines to be necessary or appropriate to carry out the purposes
and objectives of this section.</text>
</paragraph><paragraph id="H7E480BD7F8274D36A4C3A5FAD4FA518C"><enum>(3)</enum><header>Guidance</header><text>The
Agency 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- or
minority-owned for the purposes of this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5B0830B3E6D145929E8EB9D70A4E9407"><enum>(b)</enum><header>Technical and
conforming amendment</header><text display-inline="yes-display-inline">Section
701(b) of the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is
amended—</text>
<paragraph id="H66E78D37B161435A90BE763721DA3F93"><enum>(1)</enum><text>by striking
<quote>or</quote> after the semicolon at the end of paragraph (3);</text>
</paragraph><paragraph id="H42BD0A37B5344F48AF331BBF7554C164"><enum>(2)</enum><text>by striking the
period at the end of paragraph (4) and inserting <quote>; or</quote>;
and</text>
</paragraph><paragraph id="H39A86D2ACB674B3891974BBDE059BCAA"><enum>(3)</enum><text>by inserting after
paragraph (4), the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H087A85FE88C3447680B38FC5B785C089" style="OLC">
<paragraph id="H97B19A825A7E4276A609B95818D1B0C1"><enum>(5)</enum><text display-inline="yes-display-inline">to make an inquiry under section 704B in
accordance with the requirements of such
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H438E96FAC2FF44CC9A3ACB5B62A8DF68"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for the Equal Credit Opportunity 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="H17722DED5AC945CFB21CEB14FC4D5036" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">704<enum-in-header>B</enum-in-header>.
Small business loan data
collection.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2AB0CA4DF9E1473C9970054A2E83AFF3"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the designated transfer date.</text>
</subsection></section><section id="H3EFDA935E7EE4E29A8274A6AE5BB3A04"><enum>4703.</enum><header>Annual
financial autopsy</header>
<subsection id="HAC4756F17CB9443392FA28F2559BE3CF"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">Not later than March
31 of each calendar year, the Director shall—</text>
<paragraph id="H5BAF480D9F774F57A94F3ED1F7ED5C93"><enum>(1)</enum><text display-inline="yes-display-inline">conduct a scientific sampling of
foreclosures and bankruptcies during the previous calendar year in each State
or territory of the United States; and</text>
</paragraph><paragraph id="HF25828687A2D4169B2B3A735E85F859A"><enum>(2)</enum><text>identify any
underlying causes of such bankruptcies or foreclosures, including any specific
financial products or services that have been the cause of substantial numbers
of such bankruptcies or foreclosures.</text>
</paragraph></subsection><subsection id="HE372BEFCB8E144E0A83A5F726E2B9FD7"><enum>(b)</enum><header>Report</header><text>After
the completion of each study required under subsection (a), the Director shall
submit a report to the Congress containing—</text>
<paragraph id="H5B24B94EB71E472AB28BC5B2A77F1DFE"><enum>(1)</enum><text>any conclusions
made by the Director in carrying out such study;</text>
</paragraph><paragraph id="H1FEAAD2E66CB446B9B304CA9AC62FD93"><enum>(2)</enum><text display-inline="yes-display-inline">any specific financial products or services
that the Director has identified to have caused a substantial number of
bankruptcies or foreclosures, as well as which companies or individuals
provided such financial products or services; and</text>
</paragraph><paragraph id="HE5370CF4C3DB4783BB62D4642C76080E"><enum>(3)</enum><text>any
recommendations the Director has for legislation that would reduce the
underlying causes of bankruptcies and foreclosures identified in such
study.</text>
</paragraph></subsection></section></subtitle><subtitle id="HF902343C93404860B58847B53CDB31C6"><enum>H</enum><header>Conforming
Amendments</header>
<section id="HC6DDD294276044C9841EE7EF9727E291"><enum>4801.</enum><header>Amendments to
the Inspector General Act of 1978</header>
<subsection id="HB8FACB40F2264DC0960F5D7B2CFFE1C9"><enum>(a)</enum><header>Establishment</header><text>Section
8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by
inserting <quote>the Consumer Financial Protection Agency,</quote> before
<quote>the Consumer Product Safety Commission,</quote>.</text>
</subsection><subsection id="HE4657C2942A54849A45D97B6EFBF6AB1"><enum>(b)</enum><header>Effective
date</header><text>This section shall take effect on the date of the enactment
of this title.</text>
</subsection></section><section id="H7D2FF947BACE4B6196DF6B2E93045E71"><enum>4802.</enum><header>Amendments to
the Privacy Act of 1974</header>
<subsection id="HC77E319AFFC84DC792B8E799627296B6"><enum>(a)</enum><header>Applicability</header><text>Section
552a of title 5, United States Code, is amended by adding at the end the
following new subsection:</text>
<quoted-block id="H0728E01776454DF594C4D5646F711789" style="OLC">
<subsection id="HF11F8428F3974E689C5061A87C7C2CF2"><enum>(w)</enum><header>Applicability to
consumer financial protection agency</header><text>Except as provided in the
Consumer Financial Protection Agency Act of 2009, this section shall apply with
respect to the Consumer Financial Protection
Agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H227DFC4CCBD84D47984086BA8B8BDBD0"><enum>(b)</enum><header>Effective
date</header><text>This section shall take effect on the date of the enactment
of this title.</text>
</subsection></section><section id="HF61D755765544DCFA737907181D87A64"><enum>4803.</enum><header>Amendments to
the Alternative Mortgage Transaction Parity Act of 1982</header>
<subsection id="H45529F3203D14E34A38C2DA08A6E49C0"><enum>(a)</enum><header>Section
803<enum-in-header>(1)</enum-in-header></header><text>Section 803(1) of the
Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3802(1)) is
amended by striking paragraphs (B) and (C).</text>
</subsection><subsection id="HC279EA94C7DC4E15BF49AE0C9BACA580"><enum>(b)</enum><header>Section
804<enum-in-header>(a)</enum-in-header></header><text>Section 804(a) of the
Alternative Mortgage Transaction Parity Act of l982 (12 U.S.C. 3803(a)) is
amended—</text>
<paragraph display-inline="no-display-inline" id="H48ED6D044F7F4DD69BC5E1E8BC71FF0A"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraphs (1), (2), and (3), by
inserting <quote>on or before the designated transfer date, as determined in
section 4602 of the Consumer Financial Protection Agency Act of 2009</quote>
after <quote>transactions made</quote> each place such term appears;</text>
</paragraph><paragraph id="H95051BB57AD24ABDA8847FAAC79A2843"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HB4894D92D35A4EEB8C33F22A46978B25"><enum>(3)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="HE7ED9A7DEB224E5FB94BEE2D73B3C3A1"><enum>(4)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HC1A66A6DDD9146F3BB90E4983A8E65F7" style="OLC">
<paragraph id="HA08A14C1B74144FBA2E3FB2AF78E4B4C"><enum>(4)</enum><text>with respect to
transactions made after the designated transfer date, as determined in section
4602 of the Consumer Financial Protection Agency Act of 2009, only in
accordance with regulations governing alternative mortgage transactions as
issued by the Consumer Financial Protection Agency for federally chartered
housing creditors, in accordance with the rulemaking authority granted to the
Consumer Financial Protection Agency with regard to federally chartered housing
creditors under laws other than this
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HAB224F8B03984FDB9F8C8325D09F6D5B"><enum>(c)</enum><header>Section
804</header><text display-inline="yes-display-inline">Section 804 of the
Alternative Mortgage Transaction Parity Act of l982 (12 U.S.C. 3803) is
amended—</text>
<paragraph id="H50FD1D34FA664E0182E6D58F3E2A4068"><enum>(1)</enum><text>by striking
subsection (c) and inserting the following new subsection:</text>
<quoted-block id="HD555E67DE3F841CA8A6F23A850CC630A" style="OLC">
<subsection id="H1BEB1A1587E343BDBE889F8DF3DBAAD8"><enum>(c)</enum><header>Effect of state
law</header>
<paragraph id="H68CB2E24EDA64453892258E3678415D7"><enum>(1)</enum><header>In
general</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.</text>
</paragraph><paragraph id="H0C2087FDBBFC47789FC8B7D6E8906CAB"><enum>(2)</enum><header>Rule of
construction</header><text>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>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD295222AAD10455DB1BCD471FD7160B7"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="HBC8C2ECF6991425CB69B0FA4A8B9CEF6" style="OLC">
<subsection id="HC8CC5CD777554D0F874D1783F90CA9FB"><enum>(d)</enum><header>Duties of
Consumer Financial Protection Agency</header><text>The Consumer Financial
Protection Agency shall—</text>
<paragraph id="H6DFAC7A361D64EC7A4AE1270D1062DDC"><enum>(1)</enum><text>review the
regulations identified by the Comptroller of the Currency, the National Credit
Union Administration, and the Director of the Office of Thrift Supervision (as
those regulations exist on the designated transfer date, as determined in
section 4602 of the Consumer Financial Protection Agency Act of 2009) as
applicable under paragraphs (1), (2), and (3) of subsection (a);</text>
</paragraph><paragraph id="H2BD5F2EE2F86445888A4941074D6FE70"><enum>(2)</enum><text>determine whether
such regulations are fair and not deceptive and otherwise meet the objectives
of section 4201 of the Consumer Financial Protection Agency Act of 2009;
and</text>
</paragraph><paragraph id="HC5AFA1AAD3744ED0909316971FE3E6B0"><enum>(3)</enum><text>prescribe
regulations under subsection (a)(4) after the designated transfer date, as
determined under such
Act.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9A7F29D01C564C049AAB6ECA44DF5408"><enum>(d)</enum><header>Effective date
and scope of application</header>
<paragraph id="H252DA6C73B4243C881EFA0162F55A96D"><enum>(1)</enum><header>Effective
date</header><text display-inline="yes-display-inline">This section shall take
effect on the designated transfer date.</text>
</paragraph><paragraph id="H14CC7245C6194B28A1E0168B1AD157CF"><enum>(2)</enum><header>Scope of
application</header><text>The amendments made by subsection (a) shall not
affect any transaction covered by the Alternative Mortgage Transaction Parity
Act of l982 which is entered into on or before the designated transfer
date.</text>
</paragraph></subsection></section><section id="HBF647B051CC842958FE2A32513A1C23C"><enum>4804.</enum><header>Amendments to
the Consumer Credit Protection Act</header>
<subsection id="H062D4F2E9390457EA64FD1CC00F51D5D"><enum>(a)</enum><header>Truth in Lending
Act</header>
<paragraph id="H8ACCF8155B4B48AB83C0D90501F8CDEA"><enum>(1)</enum><header>Section
103</header><text>Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is
amended by striking subsection (b) and inserting the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA50454D4D5DB4D6E93DBBFF7D58CC5B7" style="OLC">
<subsection id="H3E79032F68674478AA8D52675FC3E0DA"><enum>(b)</enum><header>Agency
definitions</header>
<paragraph id="H55BBBA98916B4865B14394F8F38C7102"><enum>(1)</enum><header>Board</header><text display-inline="yes-display-inline">The term <quote>Board</quote> means the
<quote>Board of Governors of the Federal Reserve System</quote>.</text>
</paragraph><paragraph id="H6A40992621EC409587019B74D809F548"><enum>(2)</enum><header>Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection
Agency.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H191869037C7947439BBB38147E5C17CE"><enum>(2)</enum><header>Universal
amendment relating to Board of Governors of the Federal Reserve System</header>
<subparagraph id="HD5941E49A0674921BF42F94532AAE515"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the Truth in
Lending Act (15 U.S.C. 1601 et seq.) is amended by striking
<quote>Board</quote> each place such term appears, including in chapters 4 and
5 relating to credit billing and consumer leases, and inserting
<quote>Agency</quote>.</text>
</subparagraph><subparagraph id="H12F6C2667104493BA1933C61948DBE63"><enum>(B)</enum><header>Exceptions</header><text>The
amendment described in subparagraph (A) shall not apply to sections 108(a) (as
amended by paragraph (4)) and 140(d).</text>
</subparagraph></paragraph><paragraph id="HD67EAFC77F3146A2B2DDBFAAF3F842C0"><enum>(3)</enum><header>Section
105</header><text>Section 105(b) of the Truth in Lending Act (15 U.S.C.
1604(b)) is amended by striking the first sentence and inserting the following:
<quote>The Agency shall publish a single, integrated disclosure for mortgage
loan transactions, including real estate settlement cost statements, which
include the disclosure requirements of this title, in conjunction with the
disclosure requirements of the Real Estate Settlement Procedures Act that,
taken together, may apply to transactions subject to both or either law. The
purpose of such model disclosure shall be to facilitate compliance with the
disclosure requirements of those titles, 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="HC28DF18323B24D08B9D1BE00D1BE0431"><enum>(4)</enum><header>Section
108</header><text>Section 108 of the Truth in Lending Act (15 U.S.C. 1607) is
amended—</text>
<subparagraph id="HA5F41DD89AD3442B9A0C07D9A0DDC77A"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following new subsection:</text>
<quoted-block id="H02A3C6F79FD7410A89AD581711AD99F3" style="OLC">
<subsection id="HB3BC65C97F004347914FF9ED4E945A93"><enum>(a)</enum><header>Enforcing
agencies</header><text>Subject to section 4202 of the Consumer Financial
Protection Agency Act of 2009, compliance with the requirements imposed under
this title shall be enforced as follows:</text>
<paragraph id="H9FA0AD8A92D946B5A4FE0E0DCDF9AC4A"><enum>(1)</enum><text>Under section 8 of
the Federal Deposit Insurance Act, in the case of—</text>
<subparagraph id="HC23031D5E55E43C0A75E67C8A2BBEDF2"><enum>(A)</enum><text display-inline="yes-display-inline">national banks, and Federal branches and
Federal agencies of foreign banks, by the head of the agency responsible for
chartering and regulating national banks;</text>
</subparagraph><subparagraph id="HDD363B4ECA5D42B0A43C9F3A537C5586"><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
25(a) of the Federal Reserve Act, by the Board;</text>
</subparagraph><subparagraph id="H3976E5B188154E8CB704AE3496663732"><enum>(C)</enum><text display-inline="yes-display-inline">depository institution insured by the
Federal Deposit Insurance Corporation (other than members of the Federal
Reserve System, Federal savings associations, and savings and loan holding
companies) and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation; and</text>
</subparagraph><subparagraph id="HD40EDA12F21347D59AD22FC232C8679F"><enum>(D)</enum><text>Federal savings
associations and savings and loan holding companies, by the Director of the
Office of Thrift Supervision.</text>
</subparagraph></paragraph><paragraph id="HAD52E44B2E5B48C8A8B690A0CB2D98AB"><enum>(2)</enum><text>Under subtitle E
of the Consumer Financial Protection Agency Act of 2009, by the Agency.</text>
</paragraph><paragraph id="H2D5E7A0076FC486FAFA091CC5614BAEB"><enum>(3)</enum><text>Under the Federal
Credit Union Act, by the head of the agency responsible for chartering and
regulating Federal credit unions.</text>
</paragraph><paragraph id="HB34290EB30CB49A19220D92D2A9B85CE"><enum>(4)</enum><text>Under 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="H378FB27E3E9B4D1F8A4EE9CE82FDEF93"><enum>(5)</enum><text>Under 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="H39F5CF1A3B1F4525A8FCFC0E2BA2A6B1"><enum>(6)</enum><text>Under 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.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0F7E31513E454C7D996FBDB5EAA9805B"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (c) and inserting
the following new subsection:</text>
<quoted-block id="H4837133416984C36A66F671C2E813739" style="OLC">
<subsection id="H47F84F92554640A3A024C8D97A033F22"><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 subsection (a) and
subject to section 4202 of the Consumer Financial Protection Agency Act of
2009, the Federal Trade Commission shall 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 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 in the Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H3A81E47B631E4A0FB99A0FE2576BBB10"><enum>(5)</enum><header>Universal
amendment relating to the Federal Trade Commission</header>
<subparagraph id="H37CCFE0EB27F457FB71B50846DEFDFBB"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the Truth in
Lending Act (15 U.S.C. 1601 et seq.) is amended by striking <quote>Federal
Trade Commission</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</subparagraph><subparagraph id="HEDF20683752748D88F8C59B1AB346429"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The amendment described in subparagraph (A)
shall not apply to sections 108(c) (as amended by paragraph (4)) and 129(m) (as
amended by paragraph (7)).</text>
</subparagraph></paragraph><paragraph id="H69986DF8465F4065AE9F0E510E6C6B41"><enum>(6)</enum><header>Section
127</header><text>Subparagraph (C) of section 127(b)(11) of the Truth in
Lending Act (15 U.S.C. 1637(b)(11)) is amended to read as follows:</text>
<quoted-block id="H53665FF5A3724C44B4F12C623C3A0BC0" style="OLC">
<subparagraph id="H4CD810ED7521480182D236E854F4E51E"><enum>(C)</enum><text>Notwithstanding
subparagraphs (A) and (B), in the case of a creditor with respect to which
compliance with this title is enforced by the Agency, the following statement,
in a prominent location on the front of the billing statement, disclosed
clearly and conspicuously: <quote>Minimum Payment Warning: Making only the
required minimum payment will increase the interest you pay and the time it
takes to repay your balance. For example, making only the typical 5 percent
minimum monthly payment on a balance of $300 at an interest rate of 17 percent
would take 24 months to repay the balance in full. For an estimate of the time
it would take to repay your balance, making only minimum monthly payments, call
the Consumer Financial Protection Agency at this toll-free number:_________
[the blank space to be filled in by the creditor].</quote> A creditor who is
subject to this subparagraph shall not be subject to subparagraph (A) or
(B).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE3D6C5C3270E4C8799B33B2532735FFF"><enum>(7)</enum><header>Section
129</header><text>Section 129(m) of the Truth in Lending Act (15 U.S.C.
1639(m)) is amended to read as follows:</text>
<quoted-block id="H3FAA977EA1004ED180229CBD68846DA3" style="OLC">
<subsection id="H189095BFFFD14EEF8BAF10BC13F27291"><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 Agency pursuant to subsection (l)(2) of this section shall be
treated as a violation of a regulation 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>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2CB186690AF046BC8DEFFCB4EB1BE4C1"><enum>(b)</enum><header>Fair Credit
Reporting Act</header>
<paragraph id="H4F5700FDAC614EC7B5EFAFEDB7F000F6"><enum>(1)</enum><header>Section
603</header><text>Section 603 of the Fair Credit Reporting Act (15 U.S.C.
1681a) is amended—</text>
<subparagraph id="HA433E1A9DCD64D2B8FEEC3C436D72EC4"><enum>(A)</enum><text>by redesignating
subsections (w) and (x) as subsections (x) and (y), respectively; and</text>
</subparagraph><subparagraph id="H3D9FCC30458D46218A26ADB543926C72"><enum>(B)</enum><text>by inserting after
subsection (v) the following new subsection:</text>
<quoted-block id="H82F54DBBA6F44242BCD7914B473A4713" style="OLC">
<subsection id="HE5E2C4EB82E848058DA893EC52CA2DF9"><enum>(w)</enum><header>Agency</header><text>The
term <quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H78D81E43CD7240C6871A0F8C9A90E745"><enum>(2)</enum><header>Universal
amendments relating to the Federal Trade Commission</header><text>Other than in
connection with the amendment made by paragraph (7)(A), the Fair Credit
Reporting Act (15 U.S.C. 1681a) is amended—</text>
<subparagraph id="HCF7B4D19745A4393AFCE66F6781AB2D2"><enum>(A)</enum><text>by striking
<quote>Federal Trade Commission</quote> each place such term appears and
inserting <quote>Agency</quote>;</text>
</subparagraph><subparagraph id="H9965847EDBC24048AAB1E67C770C5AA2"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Commission</quote> each
place such term appears (other than in connection with the term amended in
subparagraph (A)) and inserting <quote>Agency</quote>; and</text>
</subparagraph><subparagraph id="HAE11C0D007D74020AE2A61974CAD11C0"><enum>(C)</enum><text>by striking
<quote>Federal banking agencies, the National Credit Union Administration, and
the Commission shall jointly</quote> each place such term appears in sections
605(h)(2) and 623(a)(8)(A) and inserting <quote>Agency shall</quote>.</text>
</subparagraph></paragraph><paragraph id="H4617A9CAB1D04DBF86FB18E0C97E3075"><enum>(3)</enum><header>Section
603</header><text>Section 603(k)(2) of the Fair Credit Reporting Act (15 U.S.C.
1681a(k)(2)) is amended by striking <quote>Board of Governors of the Federal
Reserve System</quote> and inserting <quote>Agency</quote>.</text>
</paragraph><paragraph id="HBBF0A6A4B3BC4318B4B2B811C1C86CD4"><enum>(4)</enum><header>Section
604</header><text>Subsection 604(g) of the Fair Credit Reporting Act (15 U.S.C.
1681b(g)) is amended—</text>
<subparagraph id="HEF5F7AF529014A93A476467C29C5F8A1"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraph (C) of paragraph
(3) and inserting the following new subparagraph:</text>
<quoted-block id="HCBB0E477DC504E07B14CDE6BC2617EAC" style="OLC">
<subparagraph id="H1BFD9948C8284CC3B51529447ACBC9D1"><enum>(C)</enum><text>as otherwise
determined to be necessary and appropriate, by regulation or order and subject
to paragraph (6), by the Agency (with respect to any covered person subject to
the jurisdiction of such agency under paragraph (2) of section 621(b)), 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="H6FA932DD74A54A9094A50D858FFA39B0"><enum>(B)</enum><text display-inline="yes-display-inline">by striking paragraph (5) and inserting the
following new paragraph:</text>
<quoted-block id="HA3A1E44E6DA44A80A1E8316F35E100FC" style="OLC">
<paragraph id="HC09EE39F4F304375B938F7ED10595224"><enum>(5)</enum><header>Regulations
required</header><text>The Agency 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>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCBAAEC18289B432785DC4601301944B1"><enum>(5)</enum><header>Section
611</header><text>Section 611(e)(2) of the Fair Credit Reporting Act (15
U.S.C.1681i(e)(2)) is amended to read as follows:</text>
<quoted-block id="H2859CD3EFD4F4FD38855A29D57E2C9C9" style="OLC">
<paragraph id="HB0A954B12AAB4657B7CA812C33B46CAC"><enum>(2)</enum><header>Exclusion</header><text>Complaints
received or obtained by the Agency pursuant to its investigative authority
under the Consumer Financial Protection Agency Act of 2009 shall not be subject
to paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H60CC8EFEC15F4D43A918A6DB1C6CDDF2"><enum>(6)</enum><header>Section
615</header><text>Section 615(h)(6)(A) of the Fair Credit Reporting Act (15
U.S.C. 1681m(h)(6)(A)) is amended to read as follows:</text>
<quoted-block id="H350242F447D64053BAFC3255F3F6493C" style="OLC">
<subparagraph id="H4E927E86B65F429BBA00DB4AEF7E894C"><enum>(A)</enum><header>Rules
required</header><text>The Agency shall prescribe
rules.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3C70A4FC6BF54D039DD519F1EB178900"><enum>(7)</enum><header>Section
621</header><text>Section 621 of the Fair Credit Reporting Act (15 U.S.C.
1681s) is amended—</text>
<subparagraph id="H81925B604A6144C386C1F5DF870EFDE3"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following new subsection:</text>
<quoted-block id="H5E9CE814B6504E44AE17B012C67DBB95" style="OLC">
<subsection id="HA3FCC1E4D4AB46BBBC886A00374B2C64"><enum>(a)</enum><header>Enforcement by
Federal Trade Commission</header>
<paragraph id="H9FED267E540C4DC1A612A4578E33AF96"><enum>(1)</enum><header>In
general</header><text>Subject to section 4202 of the Consumer Financial
Protection Agency Act of 2009, compliance with the requirements imposed under
this title shall be enforced under the Federal Trade Commission Act by the
Federal Trade Commission 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 subsection (b) hereof. 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 and
shall be subject to enforcement by the Federal Trade Commission under section
5(b) of such Act with respect to any consumer reporting agency or person
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 in the Federal Trade Commission Act. The Federal
Trade Commission shall have such procedural, investigative, and enforcement
powers (subject to section 4202 of the Consumer Financial Protection Agency Act
of 2009), 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 thereof were part of this title.</text>
</paragraph><paragraph id="HDDC89B81039F4CCD8829BB98222A0A46"><enum>(2)</enum><header>Civil money
penalties</header>
<subparagraph id="H32EDD09C8A624595B781878FDB8A74B7"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to section
4202 of the Consumer Financial Protection Agency Act of 2009, in the event of a
knowing violation, which constitutes a pattern or practice of violations of
this title, the 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="H000C8605D921413AB36B8963F9D2457D"><enum>(B)</enum><header>Factors in
determining 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 prior such conduct, ability to pay, effect on
ability to continue to do business, and such other matters as justice may
require.</text>
</subparagraph></paragraph><paragraph id="HDB337D744A3343869886A7343326E84B"><enum>(3)</enum><header>Exception</header><text display-inline="yes-display-inline">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 or the Agency, as the case may be, 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>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0038D2A5B0FE41DE845EDD2C3566E564"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting
the following new subsection:</text>
<quoted-block id="HC6576D1373184FE3A8E8E40774AC5B6C" style="OLC">
<subsection id="H5FCBFAB6B13D4942B47B92852C16F693"><enum>(b)</enum><header>Enforcement by
other agencies</header><text>Subject to section 4202 of the Consumer Financial
Protection Agency Act of 2009, 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 subsection (d) of
section 615 shall be enforced as follows:</text>
<paragraph id="H6C1D76A5055945E9BFACF351E128AC59"><enum>(1)</enum><text>Under section 8 of
the Federal Deposit Insurance Act, in the case of—</text>
<subparagraph id="HE5C389FA5E6943E0BE5DA0DA830A6E9A"><enum>(A)</enum><text>national banks,
and Federal branches and Federal agencies of foreign banks, by the head of the
agency responsible for chartering and regulating national banks;</text>
</subparagraph><subparagraph id="H36637F61D20843E48AC871DA8F2308C0"><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, by the Board of Governors of the Federal
Reserve System;</text>
</subparagraph><subparagraph id="H1069EE929317416CA45754ADABC71A75"><enum>(C)</enum><text display-inline="yes-display-inline">banks insured by the Federal Deposit
Insurance Corporation (other than members of the Federal Reserve System,
Federal savings associations, and savings and loan holding companies) and
insured State branches of foreign banks, by the Board of Directors of the
Federal Deposit Insurance Corporation; and</text>
</subparagraph><subparagraph id="HF0950083FF354F43913AE83A75DE1EDA"><enum>(D)</enum><text>Federal savings
associations and savings and loan holding companies, by the Director of the
Office of Thrift Supervision.</text>
</subparagraph></paragraph><paragraph id="HE18F7D06DD234E13BBF0AEBA12C0150E"><enum>(2)</enum><text>Under subtitle E
of the Consumer Financial Protection Agency Act of 2009, by the Agency in the
case of a covered person under that Act.</text>
</paragraph><paragraph id="HBF735E995E28421581066CDA6490CCF3"><enum>(3)</enum><text>Under the Federal
Credit Union Act, by the National Credit Union Administration Board with
respect to any Federal credit union.</text>
</paragraph><paragraph id="H47B566EF068E4E63AADF4F046AFB0B74"><enum>(4)</enum><text>Under 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>
</paragraph><paragraph id="HE0106FCE22874588A27C3E3CFDE16915"><enum>(5)</enum><text>Under 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="H474BB2DFAEAB48188EA55B630C56CAC0"><enum>(6)</enum><text>Under 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="H2F1C83DFCBAB498E8809A6146C7903FB"><enum>(7)</enum><text display-inline="yes-display-inline">Under the Commodity Exchange Act, with
respect to a person subject to the jurisdiction of the Commodity Futures
Trading Commission.</text>
</paragraph><paragraph id="H1210D5859DE04AE3B6F22A01B4FA58CD"><enum>(8)</enum><text display-inline="yes-display-inline">Under the Federal securities law and any
other laws subject to the jurisdiction of the Securities and Exchange
Commission, with respect to a person subject to the jurisdiction of the
Securities and Exchange Commission.</text>
</paragraph><continuation-text continuation-text-level="subsection">Any term
used in paragraph (1) that is not defined in this title or otherwise defined in
section 3(s) of the Federal Deposit Insurance Act shall have the meaning given
to such term in section 1(b) of the International Banking Act of
1978.</continuation-text></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HB52FF288BBA94509832B89BB1545BABB"><enum>(C)</enum><text>by striking
subsection (e) and inserting the following new subsection:</text>
<quoted-block id="H5887D46D6C20454582C6EB51542D1203" style="OLC">
<subsection id="H6ED2A7F95554402FAEF1B42AD98A1896"><enum>(e)</enum><header>Regulatory
authority</header><text>The Agency shall prescribe such regulations as
necessary to carry out the purposes of this Act with respect to a covered
person described in subsection (b).</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H64DB78A544594A3D936880DDB4CB7D6C"><enum>(D)</enum><text>in the heading of
subsection (g) by striking <quote><header-in-text level="subsection" style="OLC">FTC</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph id="H8B04B5243F8B447281BA81A2BB3BA469"><enum>(8)</enum><header>Section
623</header><text>Section 623 of the Fair Credit Reporting Act (15 U.S.C.
1681s–2) is amended—</text>
<subparagraph id="H0E1CBB76A8424146B6676853391E66E1"><enum>(A)</enum><text>by amending
subparagraph (a)(7)(D) to read as follows:</text>
<quoted-block id="HBAC01D1C2E4A411DBDE0F56686B41DEA" style="OLC">
<subparagraph id="H06551248DAAD4E5199197DC3C6362087"><enum>(D)</enum><header>Model
disclosure</header>
<clause id="HBE5DC94798CA4851A4FC4F8F3C28EB85"><enum>(i)</enum><header>Duty of agency
to prepare</header><text>The Agency shall prescribe a brief model disclosure a
financial institution may use to comply with subparagraph (A), which shall not
exceed 30 words.</text>
</clause><clause id="H5F6309B2C1044A3C9C5F944A68EF5A92"><enum>(ii)</enum><header>Use of model
not required</header><text>No provision of this paragraph shall be construed as
requiring a financial institution to use any such model form prescribed by the
Agency.</text>
</clause><clause id="H2433D6A16B6E4FB993DABF2A8A79D1A7"><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 such
model form prescribed by the Agency, 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="HD39A700726B041FA932CE2C4B2776501"><enum>(B)</enum><text>by amending
subsection (e) to read as follows:</text>
<quoted-block id="H1EBE6919D10347A6839FAC9D345E5FE3" style="OLC">
<subsection id="HFF23D519C85E4E66AF2E7CC12DC976D1"><enum>(e)</enum><header>Accuracy
guidelines and regulations required</header>
<paragraph id="HA80510FCF6E84946B8B22451D5AC7DC6"><enum>(1)</enum><header>Guidelines</header><text>The
Agency shall, with respect to the entities that are subject to its enforcement
authority under section 621—</text>
<subparagraph id="H17B9482043B542D49126491890C2DFEC"><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="HD96A3685AA1A4A8493A33164A9BDECFA"><enum>(B)</enum><text>prescribe
regulations requiring each person that furnishes information to a consumer
reporting agency to establish reasonable policies and procedures or
implementing the guidelines established pursuant to subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="HAE07699EF27F4E4496E6DA3FB17A8FD6"><enum>(2)</enum><header>Criteria</header><text>In
developing the guidelines required by paragraph (1)(A), the Agency
shall—</text>
<subparagraph id="HB405086B446F4A6E9BCA475367CED4DD"><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="HF1A2370071EA4703BD71C16146FE9DCD"><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="H0148B78AE6A34DD79CA7CE95BDB335E5"><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="HBFFD67EBBA91407C81E77505AB4B0DA8"><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></subsection><subsection id="HD15AD0FD39EB4BC08906E6D27A78F996"><enum>(c)</enum><header>Equal Credit
Opportunity Act</header>
<paragraph id="H17A84BA163DF4A64838BBDC21AB79E1B"><enum>(1)</enum><header>Section
701</header><text display-inline="yes-display-inline">Section 701 of the Equal
Credit Opportunity Act (15 U.S.C. 1691) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="HDEF12EDAB509448AB33765FABCF67476"><enum>(2)</enum><header>Section
702</header><text>Section 702(c) of the Equal Credit Opportunity Act (15 U.S.C.
1691a) is amended to read as follows:</text>
<quoted-block id="H5855AAA1CEA04949BFA9C5AA94E12846" style="OLC">
<subsection id="HDA387C89E7504CEC8A7E9402EC7EB48F"><enum>(c)</enum><text>The term
<quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H856922CBCFB64D9D88ABFEC4086305F7"><enum>(3)</enum><header>Section
703</header><text display-inline="yes-display-inline">Section 703 of the Equal
Credit Opportunity Act (15 U.S.C. 1691b) is amended—</text>
<subparagraph id="H2AFE12B025E74346A62753CAFAA1A4CA"><enum>(A)</enum><text>by striking
subsection (b);</text>
</subparagraph><subparagraph id="H12C9D5C4539348F9BE4687A80315DA09"><enum>(B)</enum><text>in subsection
(a)—</text>
<clause id="H30874A4C5345480E945A69653BF35A3A"><enum>(i)</enum><text>by
striking <quote>(1)</quote>; and</text>
</clause><clause id="H1AD2638EB918479D88BF3507617AF045"><enum>(ii)</enum><text>by
redesignating paragraphs (2), (3), (4), and (5) as subsections (b), (c), (d),
and (e), respectively;</text>
</clause></subparagraph><subparagraph id="H58F07071D4614E6D9CE18905C609EBE3"><enum>(C)</enum><text>in subsection (c)
(as so redesignated)—</text>
<clause id="H9400B2C6546B47CE91581437988FCBD9"><enum>(i)</enum><text>by
striking <quote>paragraph (2)</quote> and inserting <quote>subsection
(b)</quote>; and</text>
</clause><clause id="H2B610F0DCDF1430CA766CC55680EF53D"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>such paragraph</quote>
and inserting <quote>such subsection</quote>;</text>
</clause></subparagraph><subparagraph id="H00546194C8EC45589D19C77ECF3C839D"><enum>(D)</enum><text>in subsection (d)
(as so redesignated)—</text>
<clause id="HD9E97D4999804D0096D06A8EF58D6C32"><enum>(i)</enum><text>by
striking <quote>subsection</quote> and inserting <quote>section</quote>’</text>
</clause><clause id="H901A420DFF5947A18EE0C3D6720D6C97"><enum>(ii)</enum><text>by
striking <quote>Act</quote> and inserting <quote>title</quote>; and</text>
</clause><clause id="H6737431DC80B425CB2F04FFD7C6435F5"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>this paragraph</quote>
and inserting <quote>this subsection</quote>; and</text>
</clause></subparagraph><subparagraph id="H6AC35BB5C1DA4209A0C6C52FEDC67450"><enum>(E)</enum><text display-inline="yes-display-inline">by striking <quote>Board</quote> each place
such term appears in such section and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="HC72F378AF6D94B5591346F6289D5A408"><enum>(4)</enum><header>Section
704</header><text>Section 704 of the Equal Credit Opportunity Act (15 U.S.C.
1691c) is amended—</text>
<subparagraph id="H1CF95A6C8956468DB88AE9BEB89A966A"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="HF955B7EF6C3046E38F0FAC90B57B7780"><enum>(i)</enum><text>in
the matter preceding paragraph (1), by striking <quote>Compliance</quote> and
inserting <quote>Subject to section 4202 of the Consumer Financial Protection
Agency Act of 2009, compliance</quote>;</text>
</clause><clause id="H5E6F1FC0FB4344438465165EEE49A7AA"><enum>(ii)</enum><text>in
paragraph (1)(A), by striking <quote>Office of the Comptroller of the
Currency</quote> and inserting <quote>head of the agency responsible for
chartering and regulating national banks</quote>;</text>
</clause><clause display-inline="no-display-inline" id="H7EF47A73B9674B8280E125C13E163AEC"><enum>(iii)</enum><text>in paragraph
(1)(B), by striking <quote>and</quote> after the semicolon;</text>
</clause><clause id="H2595D1B0F85C4CF29919EB8710D86CF3"><enum>(iv)</enum><text>in
paragraph (1)(C), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause id="H71D6AFA1416548AEB3070AF17E305C67"><enum>(v)</enum><text>by
inserting after subparagraph (C) of paragraph (1) the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HCB6E6895A31041F0BC3109E5DE133439" style="OLC">
<subparagraph id="HF69D65D09EEE423390EE888A34B1BCAA"><enum>(D)</enum><text display-inline="yes-display-inline">savings associations and savings and loan
holding companies by the Director of the Office of Thrift
Supervision;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HBA260C93666C4653B63BDA839B03C142"><enum>(vi)</enum><text>by
amending paragraph (2) to read as follows:</text>
<quoted-block id="H20BCCCDF3A4C4051BFE51429C4415EA6" style="OLC">
<paragraph id="H756605B8B06C487C818BA81B04808402"><enum>(2)</enum><text>Subtitle E of the
Consumer Financial Protection Agency Act of 2009, by the
Agency.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HB1B3771662F6423AA4C5270BCE8A9553"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following new subsection:</text>
<quoted-block id="H26B6E92A725A4B9596B5C3D432A43A0D" style="OLC">
<subsection id="HC2F82B888E4F4851A5F9A663D1505E64"><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 subsection (a) and
subject to section 4202 of the Consumer Financial Protection Agency Act of
2009, the Federal Trade Commission shall 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 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 in the Federal Trade Commission Act, including the
power to enforce any regulation prescribed by the Director 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="HC65F820C161D410DBD568F25CEB71577"><enum>(C)</enum><text>in subsection (d),
by striking <quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="HDDFB163D044049A2871711F4CA1F423C"><enum>(5)</enum><header>Section
704<enum-in-header>A</enum-in-header></header><text>Section 704A(a)(1) of the
Equal Credit Opportunity Act (15 U.S.C. 1691c–1(a)(1)) is amended in by
striking <quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</paragraph><paragraph id="HCE97209D9E53420DB6A285FFB93FDB86"><enum>(6)</enum><header>Section
705</header><text>Section 705 of the Equal Credit Opportunity Act (15 U.S.C.
1691d) is amended—</text>
<subparagraph id="H6345FF90EC644DD4B76C72587188D8FA"><enum>(A)</enum><text>in subsection (f),
by striking <quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>; and</text>
</subparagraph><subparagraph id="HC7E78F1F684143BFA86FFB90A3F71654"><enum>(B)</enum><text>in subsection (g),
by striking <quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="HBFBEA3EC3D64420CB99D0EB6CF6C7A39"><enum>(7)</enum><header>Section
706</header><text>Section 706 of the Equal Credit Opportunity Act (15 U.S.C.
1691e) is amended—</text>
<subparagraph id="HFFCEF8FB6AA14A8CB5A3610986500BD2"><enum>(A)</enum><text>in subsection
(e)—</text>
<clause id="H343B1798B7B14A22A2E2E61FF03A4E2E"><enum>(i)</enum><text>by
striking <quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>; and</text>
</clause><clause id="H09BC8F67696647898495ED0C38277A67"><enum>(ii)</enum><text>by
striking <quote>Federal Reserve System</quote> and inserting <quote>Consumer
Financial Protection Agency</quote>;</text>
</clause></subparagraph><subparagraph id="HBCB0B2BDB2124973951F1554957D67E6"><enum>(B)</enum><text>in subsection (f),
by striking <quote>two years</quote> each place such term appears and inserting
<quote>5 years</quote>;</text>
</subparagraph><subparagraph id="H4B77A1F58CA5458385A52839929CF326"><enum>(C)</enum><text>in subsection
(g)—</text>
<clause id="HEA675B0A9BF14D1487725BDD0EC3DCE4"><enum>(i)</enum><text>by
striking <quote>The agencies having</quote>, in the 1st sentence, and inserting
<quote>The Agency and the agencies having</quote></text>
</clause><clause id="HD6A33D168BA44070AB7890EDABBF5135"><enum>(ii)</enum><text>by
striking <quote>Each agency referred</quote>, in the 2nd sentence, and
inserting <quote>The Agency and each agency referred</quote>;</text>
</clause><clause id="HB342086E9A334983AB1527D25CBEE649"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>Each such
agency</quote>, in the 3rd sentence, and inserting <quote>The Agency and each
such agency</quote>; and</text>
</clause><clause id="H74649BAA43124BCE9D34A4B485170B30"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking <quote>whenever the
agency</quote> in the 3rd sentence, and inserting <quote>whenever the Agency or
an agency having responsibility for administrative enforcement under section
704</quote>; and</text>
</clause></subparagraph><subparagraph id="H9614FD0D4484486AB1E26C9534C37FC0"><enum>(D)</enum><text>in subsection
(k)—</text>
<clause id="H5F6ED1A5FC77440695B81ED559244FA1"><enum>(i)</enum><text>by
striking <quote>Whenever an agency</quote> and inserting <quote>Whenever the
Agency or an agency</quote>; and</text>
</clause><clause id="HC171C06AC4874416AEA96C0B018D334C"><enum>(ii)</enum><text>by
striking <quote>the agency shall notify</quote> and inserting <quote>the
Agency, or an agency referred to in any such paragraph, as the case may be,
shall notify</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="H75E5C34C997F4DFAB83EAD9E718B264F"><enum>(8)</enum><header>Section
707</header><text>Section 707 of the Equal Credit Opportunity Act (15 U.S.C.
1691f) is amended by striking <quote>Board</quote> each place such term appears
and inserting <quote>Agency</quote>.</text>
</paragraph></subsection><subsection id="HE9C6ECE917AB4554BA16B0392D831C55"><enum>(d)</enum><header>Fair Debt
Collection Practices Act</header>
<paragraph id="HC84244706FBA4E3BA61775A638D01096"><enum>(1)</enum><header>Section
803</header><text>Section 803 of the Fair Debt Collection Practices Act (15
U.S.C. 1692a) is amended—</text>
<subparagraph id="H9401F13B67B748019B9E00BA2F6CEAD6"><enum>(A)</enum><text>by redesignating
paragraphs (1), (2), (3), (4), (5), (6), (7), and (8) as paragraphs (2), (3),
(4), (5), (6), (7), (8), and (9), respectively; and</text>
</subparagraph><subparagraph id="H5F86CC82307D4F30AD2C0DE38C467717"><enum>(B)</enum><text>by inserting
before paragraph (2) (as so redesignated) the following new paragraph:</text>
<quoted-block id="HA23A30E869D244A492845F0A9DA6382A" style="OLC">
<paragraph id="HCCDB24B09F6F4DC9B853340641244AA8"><enum>(1)</enum><text>The term
<quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H3B363BB8DF01463AA15E6412390CA6C4"><enum>(2)</enum><header>Section
813</header><text>Section 813(e) of the Fair Debt Collection Practices Act (15
U.S.C. 1692k(e)) is amended by striking <quote>Commission</quote> and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="H36F9D7E1CBEC45058A073FE6BC0BE713"><enum>(3)</enum><header>Section
814</header><text>Section 814 of the Fair Debt Collection Practices Act (15
U.S.C. 1692l) is amended—</text>
<subparagraph id="H4A1B81F7AB214DE89C2A532C1C0EEEEE"><enum>(A)</enum><text>by striking
subsection (a) and inserting the following new subsection:</text>
<quoted-block id="H42129153DDBD4A96B373F07D154B20BB" style="OLC">
<subsection id="H6846E1D118904F6887587EB7FC00D5A2"><enum>(a)</enum><header>Federal Trade
Commission</header><text>Subject to section 4202 of the Consumer Financial
Protection Agency Act of 2009, compliance with this title shall be enforced by
the Commission, except to the extent that enforcement of the requirements
imposed under this title is specifically committed to another agency under
subsection (b). For purpose of the exercise by the Commission of its functions
and powers under the Federal Trade Commission Act, 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 Commission under the Federal Trade
Commission Act are available to the 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 in 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>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HAED5719ED6054383BBE6D78B383836EC"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="H2EEF184E34A241D18C6058FBD1B36637"><enum>(i)</enum><text>in
the matter preceding paragraph (1), by striking <quote>Compliance</quote> and
inserting <quote><header-in-text level="subsection" style="OLC">Enforcement by
other agency.—</header-in-text>Subject to section 4202 of the Consumer
Financial Protection Agency Act of 2009, compliance</quote>.</text>
</clause><clause id="HF0F6796455BD48C2BD52FE53B35D75A2"><enum>(ii)</enum><text>in
paragraph (1)(A), by striking <quote>Office of the Comptroller of the
Currency;</quote> and inserting <quote>head of the agency responsible for
chartering and regulating national banks;</quote>;</text>
</clause><clause id="HC6246DF8CA1948649FE69AB30C887DE7"><enum>(iii)</enum><text>in
paragraph (1)(B), by striking <quote>and</quote> after the semicolon;</text>
</clause><clause id="H4001DB1387334CAD9E73903A7BEE96A6"><enum>(iv)</enum><text>in
paragraph (1)(C), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause id="H2D5DFDB6FBD44C5D8D7D0AC704451EC1"><enum>(v)</enum><text>by
inserting after subparagraph (C) of paragraph (1) the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H0EB8E60802B8436BA3B6D5CC90BDC4FA" style="OLC">
<subparagraph id="HBF7584FE474746698665E52138B36D41"><enum>(D)</enum><text display-inline="yes-display-inline">savings associations and savings and loan
holding companies by the Director of the Office of Thrift
Supervision;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HB721607669614E2E9F357517E8A8C9C9"><enum>(vi)</enum><text>by
striking paragraph (2) and inserting the following new paragraph:</text>
<quoted-block id="HBD193D1143BE4E548234A2F6969503F8" style="OLC">
<paragraph id="HE3F568B6854846D9BDC993015661870C"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Agency Act of 2009, by the
Agency;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HA8A74B7971634830A2F6929493FB9B22"><enum>(C)</enum><text>by striking
subsection (d) and inserting the following new subsection:.</text>
<quoted-block display-inline="no-display-inline" id="H5A54581549804E4CA724B31057ED2D9A" style="OLC">
<subsection id="HBC156417D9B14AACA6F7DA80CE088B61"><enum>(d)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Agency may prescribe regulations with
respect to the collection of debts by any debt
collector.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H3D1409C712464F80ABC370C2C562575E"><enum>(4)</enum><header>Section
815</header><text>Section 815 (15 U.S.C. 1692m) is amended—</text>
<subparagraph id="H051495DFD7F74B74AA33C6599BD11314"><enum>(A)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="USC">Commission</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="USC">Agency</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H41DE35756CE9474096EBBB6CC7C0CA45"><enum>(B)</enum><text>by striking
<quote>Commission</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="H12D209C678EB472F8CB7993265AABCC2"><enum>(5)</enum><header>Section
817</header><text display-inline="yes-display-inline">Section 817 (15 U.S.C.
1692o) is amended by striking <quote>Commission</quote> each place such term
appears and inserting <quote>Agency</quote>.</text>
</paragraph></subsection><subsection id="H4C4F0870560D4F55BD3729BD5E827E3A"><enum>(e)</enum><header>Electronic Fund
Transfer Act</header>
<paragraph id="H61078E360DC845DABE9816912CFE0B6E"><enum>(1)</enum><header>Section
903</header><text>Section 903 of the Electronic Fund Transfer Act (15 U.S.C.
1693a) is amended—</text>
<subparagraph id="H958585871E8B449781AB34BB25D348EC"><enum>(A)</enum><text>by striking
paragraph (3) and inserting the following new paragraph:</text>
<quoted-block id="H24550A7106C2460EA8654A31C53EE0CE" style="OLC">
<paragraph id="H9C75CA77C93F43D88738BA8DC61E3C91"><enum>(3)</enum><text>the term
<quote>Agency</quote> means the Consumer Financial Protection
Agency;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H8233B7DB9AFD4E3B86D03D9E372BD35F"><enum>(B)</enum><text>in paragraph (6),
by striking <quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="HFEC8ACCED712486BBE5EFF01C166F896"><enum>(2)</enum><header>Section
904</header><text display-inline="yes-display-inline">Section 904 of the
Electronic Fund Transfer Act (15 U.S.C. 1693b) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="H6905B79449814458B0B5274D22F53A3D"><enum>(3)</enum><header>Section
905</header><text display-inline="yes-display-inline">Section 905 of the
Electronic Fund Transfer Act (15 U.S.C. 1693c) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="HCFECDA0CE44941739AE5E1D829944871"><enum>(4)</enum><header>Section
906</header><text>Section 906(b) of the Electronic Fund Transfer Act (15 U.S.C.
1693d(b)) is amended by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="HE9659E08308C4D3B9283061E8C28F793"><enum>(5)</enum><header>Section
907</header><text>Section 907(b) of the Electronic Fund Transfer Act (15 U.S.C.
1693e(b)) is amended by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="HD73BE6FA9B8F4EEFA534A279DB579C04"><enum>(6)</enum><header>Section
908</header><text>Section 908(f)(7) of the Electronic Fund Transfer Act (15
U.S.C. 1693f(f)(7)) is amended by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="HBFB001DEA9154C5BA156CA1A4B95EF00"><enum>(7)</enum><header>Section
910</header><text>Section 910(a)(1)(E) of the Electronic Fund Transfer Act (15
U.S.C. 1693h(a)(1)(E)) is amended by striking <quote>Board</quote> and
inserting <quote>Agency</quote>.</text>
</paragraph><paragraph id="H6004B11494004B388EE423E08506E4E5"><enum>(8)</enum><header>Section
911</header><text>Section 911(b)(3) of the Electronic Fund Transfer Act (15
U.S.C. 1693i(b)(3) is amended by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="H4BEA1685274F48BAA91100D558A5DD47"><enum>(9)</enum><header>Section
915</header><text>Section 915(d) of the Electronic Fund Transfer Act (15 U.S.C.
1693m(d)) is amended—</text>
<subparagraph display-inline="no-display-inline" id="H362A1D4B0FCB46F48614000F4B9A3A60"><enum>(A)</enum><text>by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>; and</text>
</subparagraph><subparagraph id="H31F78ED3935B4820A719CA1F6DCA5AFA"><enum>(B)</enum><text>by striking
<quote>Federal Reserve System</quote> and inserting <quote>Consumer Financial
Protection Agency</quote>.</text>
</subparagraph></paragraph><paragraph id="H0A63326A70AE4248A75ED9B308630098"><enum>(10)</enum><header>Section
917</header><text>Section 917 of the Electronic Fund Transfer Act (15 U.S.C.
1693o) is amended—</text>
<subparagraph id="H7D16F00A7A4A46908A86FCD4A7F2E702"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H13993211B77345BE860E2F04CA610070"><enum>(i)</enum><text>by
striking <quote>Compliance</quote> and inserting <quote>Subject to section 4202
of the Consumer Financial Protection Agency Act of 2009,
compliance</quote>;</text>
</clause><clause id="H9DF180B77D3F46A1A514EF5FED252CD4"><enum>(ii)</enum><text>in
paragraph (1)(A), by striking <quote>Office of the Comptroller of the
Currency</quote> and inserting <quote>head of the agency responsible for
chartering and regulating national banks</quote>; and</text>
</clause><clause id="H8FB2AC5CADD34D748481FB9EA547EF98"><enum>(iii)</enum><text>by
striking paragraph (2) and inserting:</text>
<quoted-block id="H0750A8B99C2E4DAA81E6825E59A24541" style="OLC">
<paragraph id="H209035937B51419DA1974264004B5380"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Agency Act of 2009, by the
Agency;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H3336DE8707414EF484C1C6E7D4E4343C"><enum>(B)</enum><text>by striking
subsection (c) and inserting the following new subsection:</text>
<quoted-block id="H09410D3671EB4718B3E442E3092A4043" style="OLC">
<subsection id="H8EAC64D0C4EF4748B313335062C0A169"><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 subsection (a) and
subject to section 4202 of the Consumer Financial Protection Agency Act of
2009, the Federal Trade Commission shall 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 Commission to
enforce compliance by any person subject to the jurisdiction of the Commission
with the requirements imposed under this title, irrespective of whether that
person is engaged in commerce or meets any other jurisdictional tests in the
Federal Trade Commission
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H798483AD4E7640CD842FDFD7D120FF87"><enum>(11)</enum><header>Section
918</header><text display-inline="yes-display-inline">Section 918 of the
Electronic Fund Transfer Act (15 U.S.C. 1693p) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="H7FB5A903425B4911A0385C6C125DA505"><enum>(12)</enum><header>Section
919</header><text display-inline="yes-display-inline">Section 919 of the
Electronic Fund Transfer Act (15 U.S.C. 1693q) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph><paragraph id="H738198CC8A7849BAA23177B753458024"><enum>(13)</enum><header>Section
920</header><text display-inline="yes-display-inline">Section 920 of the
Electronic Fund Transfer Act (15 U.S.C. 1693r) is amended by striking
<quote>Board</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph></subsection><subsection id="HCAF0B65DCF584DA2AED589AB061E82BC"><enum>(f)</enum><header>Amendments to
HOEPA relating to the Truth in Lending Act</header><text>Section 158 of the
Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601 nt.) (relating
to hearings on home equity lending) is amended—</text>
<paragraph id="H99BBA3C3AAC940C1896B40B81786A92E"><enum>(1)</enum><text>in subsection (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>Consumer Financial Protection Agency, in consultation with the
Advisory Board to the Agency</quote>; and</text>
</paragraph><paragraph id="HCE35B6036041408F8C73EB0185037947"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>Board
of Governors of the Federal Reserve System</quote> and inserting
<quote>Consumer Financial Protection Agency</quote>.</text>
</paragraph></subsection><subsection id="H4732383410584FEBAD0E4DF244E063E7"><enum>(g)</enum><header>Amendment to the
Fair and Accurate Credit Transactions Act of 2003 relating to the Fair Credit
Reporting Act</header><text display-inline="yes-display-inline">Section
214(b)(1) of the Fair and Accurate Credit Transactions Act of 2003 (15 U.S.C.
1681s–3 nt.) is amended by striking <quote>The Federal banking agencies, the
National Credit Union Administration, and the Commission, with respect to the
entities that are subject to their respective enforcement authority under
section 621 of the Fair Credit Reporting Act and</quote> and inserting
<quote>The Consumer Financial Protection Agency, with respect to a person
subject to the enforcement authority of the Agency, the Commodity Futures
Trading Commission, and</quote>.</text>
</subsection></section><section id="H737D830C63A54FC99898619ACB58A8FD"><enum>4805.</enum><header>Amendments to
the Expedited Funds Availability Act</header>
<subsection id="H95A56093FE844C10856EAEC9322537BA"><enum>(a)</enum><header>Section
605</header><text display-inline="yes-display-inline">Section 605(f)(1) of the
Expedited Funds Availability Act (12 U.S.C. 4004(f)(1)) is amended by inserting
<quote>, in consultation with the Director of the Consumer Financial Protection
Agency,</quote>after <quote>Board</quote>.</text>
</subsection><subsection id="H1A5D197807934960A261049A473F57FA"><enum>(b)</enum><header>Section
609</header><text display-inline="yes-display-inline">Section 609(a) of the
Expedited Funds Availability Act (12 U.S.C. 4008(a)) is amended by inserting
<quote>, in consultation with the Director of the Consumer Financial Protection
Agency,</quote>after <quote>Board</quote>.</text>
</subsection></section><section id="H602234F009A54B85B7728F75D17B1BCB"><enum>4806.</enum><header>Amendments to
the Federal Deposit Insurance Act</header>
<subsection id="HB8DF5E47A2F54B3C9B2EC7038C821B50"><enum>(a)</enum><header>Section
8</header><text>Section 8(t) the Federal Deposit Insurance Act (12 U.S.C.
1818(t)), as amended by section 1111(b)(2), is further amended by adding at the
end the following new paragraph:</text>
<quoted-block id="HC6B16B8CE53F4904AB8EBE56457C0FF8" style="OLC">
<paragraph id="H6976596F0C3B494EBEA6C8DACB08024E"><enum>(7)</enum><header>Referral to
consumer financial protection commission</header><text>Each appropriate Federal
banking agency shall make a referral to the Consumer Financial Protection
Agency when the Federal banking agency has a reasonable belief that a violation
of an enumerated consumer law, as defined in section 4202(e)(2) of the Consumer
Financial Protection Agency Act of 2009, by any insured depository institution
or institution-affiliated party within the jurisdiction of that appropriate
Federal banking
agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H30E401F14CE2460B84EE86E60219E044"><enum>(b)</enum><header>Section
43</header><text>Section 43 of the Federal Deposit Insurance Act (12 U.S.C.
1831t) is amended—</text>
<paragraph id="H058E1CA4331940AD82B10670571DA547"><enum>(1)</enum><text>in subsection (c),
by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Agency</quote>;</text>
</paragraph><paragraph id="H7B8D3CB9C9444673B7074622CF6C5166"><enum>(2)</enum><text>in subsection (d),
by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Agency</quote>;</text>
</paragraph><paragraph id="H66C0F841A2A547329E93EEC46DC003CA"><enum>(3)</enum><text>in subsection
(e)—</text>
<subparagraph id="H289B81A6EB5F4BBEA244B61221BA2637"><enum>(A)</enum><text>in paragraph
(2)(B), by striking <quote>Federal Trade Commission</quote> and inserting
<quote>Agency</quote>; and</text>
</subparagraph><subparagraph id="HB63E5614526445E29D1462B5E562F535"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HC2D09B1E0C1E483088654BFE3892DC07" style="OLC">
<paragraph id="H3E8B564F21AA40819A545F541F3D75FD"><enum>(5)</enum><header>Agency</header><text>The
term <quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H5E39B9CDE57541F4A7203A8EFA6BE71E"><enum>(c)</enum><header>Section
43<enum-in-header>(f)</enum-in-header></header><text>Section 43(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1831t(f)) is amended—</text>
<paragraph id="H84CDDB68D25A437A922538E1F20599A1"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="H6F3E63FCB60F428FA149FFA7A63759C2" style="OLC">
<paragraph id="H256005AD5E2C4F9C889B367E4C13FCEB"><enum>(1)</enum><header>Limited
enforcement authority</header><text display-inline="yes-display-inline">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 Agency Act of 2009 by the Agency with respect to any person (and
without regard to the provision of a consumer financial product or
service).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF680AFD8D03D4076BBBE7C9C69F92A82"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking subparagraph
(C) and inserting the following new subparagraph:</text>
<quoted-block id="H9AA212453384401CA8AB85A548FD0B48" style="OLC">
<subparagraph id="H934AFCA0892D4310A94709BC4E6055B0"><enum>(C)</enum><header>Limitation on
state action while federal action pending</header><text>If the Agency has
instituted an enforcement action for a violation of this section, no
appropriate State supervisory may, during the pendency of such action, bring an
action under this section against any defendant named in the complaint of the
Agency for any violation of this section that is alleged in that
complaint.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H830C889EBECC4D468AA4080DB7D75014"><enum>4807.</enum><header>Amendments to
the Gramm-Leach-Bliley Act</header>
<subsection id="H3F5A00C0021A4225A88630DEAD0E36A9"><enum>(a)</enum><header>Section
504</header><text>Section 504(a)(1) of the Gramm-Leach-Bliley Act (15 U.S.C.
6804(a)(1)) is amended—</text>
<paragraph id="H7D4D6EDF9A494F46B0F2619AE42A79B7"><enum>(1)</enum><text>by striking
<quote>The Federal banking agencies, the National Credit Union Administration,
the Secretary of the Treasury,</quote> and inserting <quote>The Consumer
Financial Protection Agency and</quote>; and</text>
</paragraph><paragraph id="H59545CC7AD1242309953923E1E443A70"><enum>(2)</enum><text>by striking
<quote>, and the Federal Trade Commission</quote>.</text>
</paragraph></subsection><subsection id="H0DC636A2595042EC9466636642CD69DA"><enum>(b)</enum><header>Section
505</header>
<paragraph id="H84C7A0AEAAFF480FAD89DB5F5141BF9F"><enum>(1)</enum><text>Section 505(a) of
the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)) is amended—</text>
<subparagraph id="H7B1B127DFD2540C9A36C9AED907BF1B9"><enum>(A)</enum><text>in the matter
preceding paragraph (1), by striking <quote>This subtitle and the regulations
prescribed thereunder shall be enforced by</quote> and inserting <quote>Subject
to section 4202 of the Consumer Financial Protection Agency Act of 2009, this
subtitle and the regulations prescribed under this title shall be enforced by
the Consumer Financial Protection Agency,</quote>; and</text>
</subparagraph><subparagraph id="HDA76922D57B545FB96D4526BB868D970"><enum>(B)</enum><text>by inserting after
paragraph (7) the following new paragraph:</text>
<quoted-block id="H2A57413EE56B4910A49A346F389855AC" style="OLC">
<paragraph id="H70C9AB6C215646E6914448BAFF8FFDA8"><enum>(8)</enum><text>Under the Consumer
Financial Protection Agency Act of 2009, by the Consumer Financial Protection
Agency in the case of financial institutions and other covered persons and
service providers subject to the jurisdiction of the Agency under that Act, but
not with respect to the standards under section
501.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H555927E71842468F9576E9E1E1C69D98"><enum>(2)</enum><text>Section 505(b)(1)
of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(b)(1)) is amended by inserting
<quote>, other than the Consumer Financial Protection Agency,</quote> after
<quote>described in subsection (a)</quote>.</text>
</paragraph></subsection></section><section id="H2956F4296CC04A7DB9792704B1E35D79"><enum>4808.</enum><header>Amendments to
the Home Mortgage Disclosure Act of 1975</header>
<subsection id="H2F7668E0530F4969823368444F81D706"><enum>(a)</enum><header>Section
303</header><text>Section 303 of the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2802) is amended—</text>
<paragraph id="HFB49A989CC6B42F0831523298065A73F"><enum>(1)</enum><text>by redesignating
paragraphs (1), (2), (3), (4), (5), and (6) as paragraphs (2), (3), (4), (5),
(6), and (7), respectively; and</text>
</paragraph><paragraph id="HF5C8D11693B6494F990C8546526BBBE0"><enum>(2)</enum><text>by inserting
before paragraph (2) (as so redesignated) the following new paragraph:</text>
<quoted-block id="H34C99B4397C742C2A016C191344E3201" style="OLC">
<paragraph id="H6AA6ED5F1EC0482E92D4FEDE6BC1C303"><enum>(1)</enum><text>The term
<quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H40EFDFB323CE48F6A7D1D38D876EEF56"><enum>(b)</enum><header>Universal
amendment relating to Agency</header><text>Except as provided in subsections
(c), (d), (e), and (f), the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2801–11) is amended by striking <quote>Board</quote> each place such term
appears and inserting <quote>Agency</quote>.</text>
</subsection><subsection id="HDC29B99FDC44403889A4BA22E518A064"><enum>(c)</enum><header>Section
304</header><text>Section 304 of the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2803(h)) is amended—</text>
<paragraph id="HD74FE510871E4712B83DA809D37B0589"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="HFD959E9705D74843A2D38D9E18CF6A8E"><enum>(A)</enum><text>by striking
<quote>and</quote> after the semicolon at the end of paragraph (3);</text>
</subparagraph><subparagraph id="H9D476B5DA87D415FB3C574A0A0849F4B"><enum>(B)</enum><text>by striking
<quote>and gender</quote> in paragraph (4), and inserting <quote>age, and
gender</quote>;</text>
</subparagraph><subparagraph id="HAC8171313DAF44AFBB585C84FB1B2E6D"><enum>(C)</enum><text display-inline="yes-display-inline">by striking the period at the end of
paragraph (4) and inserting a semicolon; and</text>
</subparagraph><subparagraph id="HE5655C6A94444C11ABE86B38571F227F"><enum>(D)</enum><text>by inserting after
paragraph (4) the following new paragraphs:</text>
<quoted-block id="HF70DBD2200E84C7ABBA36D418178322B" style="OLC">
<paragraph id="H343511D9B2C446A8A618DC73A50D455F"><enum>(5)</enum><text>the number and
dollar amount of mortgage loans grouped according to the following
measurements:</text>
<subparagraph id="HBD4631D0194B4057887A7AB6F71C950E"><enum>(A)</enum><text>the total points
and fees payable at origination in connection with the mortgage as determined
by the Agency, taking into account section 103(aa)(4) of the Truth in Lending
Act (15 U.S.C. 1602(aa)(4));</text>
</subparagraph><subparagraph id="H19AF94D8E3EC42F8BD7F229CFABFD6B9"><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="H0CF76AB9B1E64776BE5D429562C118EA"><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="H874ECE761CAB405EA63F82FE0A1798E8"><enum>(D)</enum><text>such other
information as the Agency may require; and</text>
</subparagraph></paragraph><paragraph id="HE05A4B72973644CAB3491AECA104E4E2"><enum>(6)</enum><text>the number and
dollar amount of mortgage loans and completed applications grouped according to
the following measurements:</text>
<subparagraph id="H661E177F354C46D9A9E825D043BB42F7"><enum>(A)</enum><text>the value of the
real property pledged or proposed to be pledged as collateral;</text>
</subparagraph><subparagraph id="H1A7A4AB7F1AC42A7A78EA7A88CE55A2B"><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="H583A25D0FF124B8DBC638FACE06B0264"><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="H46BCF91A99764D5494A3BE2F69154948"><enum>(D)</enum><text>the actual or
proposed term in months of the mortgage loan;</text>
</subparagraph><subparagraph id="HD0CF79BB87374487A2DF0BAF2B43B3F2"><enum>(E)</enum><text>the channel
through which application was made, including retail, broker, and other
relevant categories;</text>
</subparagraph><subparagraph id="H229A1A0823FF483ABF9DA22B5F9931DD"><enum>(F)</enum><text>as the Agency may
determine to be appropriate, a unique identifier that identifies the loan
originator as set forth in section 1503 of the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008;</text>
</subparagraph><subparagraph id="H9F50547C8C144DE2A6698636C3190B30"><enum>(G)</enum><text>as the Agency may
determine to be appropriate, a universal loan identifier;</text>
</subparagraph><subparagraph id="H9754CF3A5A6341E8815B9049DA011966"><enum>(H)</enum><text>as the Agency 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="H23799FB8DB704395A25C7D0BBE66F1A4"><enum>(I)</enum><text display-inline="yes-display-inline">the credit score of mortgage applicants and
mortgagors in such form as the Agency may prescribe, except that the Agency
shall modify or require modification of credit score data that is or will be
available to the public to protect the compelling privacy interest of the
mortgage applicant or mortgagors; and</text>
</subparagraph><subparagraph id="H03384CBD956F4F4E87D19C00CC78DA75"><enum>(J)</enum><text>such other
information as the Agency may
require.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H406E7714BDFA45DAA24FF22C196CBC02"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (h) and inserting
the following new subsection:</text>
<quoted-block id="HEC29FBABDBC84590B34FD3AAEAE36201" style="OLC">
<subsection id="H9C4AEA31981B494D8D2F6B75656B0ACC"><enum>(h)</enum><header>Submission to
agencies</header>
<paragraph id="HB637037578BF415AB22F6FD909E25D23"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The data required to
be disclosed under subsection (b) shall be submitted to the Agency or to the
appropriate agency for any institution reporting under this title, in
accordance with regulations prescribed by the Agency. Institutions will not be
required to report new data required under section 4808(c) before the first
January 1 that occurs after the end of the 9-month period beginning on the date
that regulations prescribed by the Agency are prescribed in final form.</text>
</paragraph><paragraph id="HE6B1530DB8E6434589C94A3F15B9CBFA"><enum>(2)</enum><header>Regulations</header><text>Notwithstanding
the requirement of section 304(a)(2)(A) for disclosure by census tract, the
Agency, in cooperation with other appropriate regulators, including—</text>
<subparagraph id="H26B83D458EF2432097A5AE0054CE7972"><enum>(A)</enum><text>the head of the
agency responsible for chartering and regulating national banks for national
banks and Federal branches, Federal agencies of foreign banks, and savings
associations;</text>
</subparagraph><subparagraph id="HF27272D74F094B76B2C937F25E45B072"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation for depository institutions insured by the
Federal Deposit Insurance Corporation (other than members of the Federal
Reserve System, Federal savings associations, and savings and loan holding
companies) and insured State branches of foreign banks;</text>
</subparagraph><subparagraph id="H6E6FD3453EB941D399530C1383E01C02"><enum>(C)</enum><text>the Director of
the Office of Thrift Supervision for Federal savings associations and savings
and loan holding companies;</text>
</subparagraph><subparagraph id="H495DC7D459F3484B9A407FC694AFCAF3"><enum>(D)</enum><text>the National
Credit Union Administration Board for credit unions; and</text>
</subparagraph><subparagraph id="H8302E5C2B25448AEA6E3816383132EEB"><enum>(E)</enum><text>the Secretary of
Housing and Urban Development for other lending institutions not regulated by
an agency referred to in subparagraphs (A), (B), (C), or (D),</text>
</subparagraph><continuation-text continuation-text-level="paragraph">shall
develop regulations prescribing the format for such disclosures, the method for
submission of the data to the appropriate regulatory agency, and the procedures
for disclosing the information to the public.</continuation-text></paragraph><paragraph id="HE8391C3908ED47DF8DD27E9F09ACA574"><enum>(3)</enum><header>Required
disclosures</header><text>The regulations prescribed under paragraph (2) shall
require the collection of data required to be disclosed under subsection (b)
with respect to loans sold by each institution reporting under this title, and,
in addition, shall require disclosure of the class of the purchaser of such
loans.</text>
</paragraph><paragraph id="H4A8DEFA2FA494E5B8682CB079BEC949D"><enum>(4)</enum><header>Additional data
or explanations</header><text>Any reporting institution may submit in writing
to the Agency or to the appropriate agency such additional data or explanations
as it deems relevant to the decision to originate or purchase mortgage
loans.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6218F31DDEDE41F99F6648FFBBD5F30F"><enum>(3)</enum><text>in subsection (i),
by striking <quote>subsection (b)(4)</quote> and inserting <quote>paragraphs
(4), (5), and (6) of subsection (b)</quote>;</text>
</paragraph><paragraph id="H6966D43D2E3441CBA8CF959C0909B477"><enum>(4)</enum><text>in subsection
(j)—</text>
<subparagraph id="H3518F5BC21E342B2BF32CC3A0E63BB1E"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(as</quote> where such
term appears in paragraph (1) and inserting <quote>(containing loan-level and
application-level information relating to disclosures required under
subsections (a) and (b) and as otherwise</quote>;</text>
</subparagraph><subparagraph id="H2186D22A441D4ED483890DC1DCFCF985"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>in the format in which
such information is maintained by the institution</quote> where such term
appears in paragraph (2)(A), and inserting <quote>in such formats as the Agency
may require</quote>; and</text>
</subparagraph><subparagraph id="H179DA69061B04E5694CAF20069B37D69"><enum>(C)</enum><text>by striking
paragraph (3) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H85314231B46E432DAE2C82E11F388BE5" style="OLC">
<paragraph id="HE0E177CFF30D4FCEA691F6B7311A77A7"><enum>(3)</enum><header>Change of form
not required</header><text display-inline="yes-display-inline">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 Agency may require.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5980BBE8DD3546D1B0F81E651A170A6E"><enum>(5)</enum><text>by striking
paragraph (2) of subsection (m) and inserting the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H623A88862F3C48A887DD9D959811BC85" style="OLC">
<paragraph id="HA2D0EF19631045BABE576278F30A5884"><enum>(2)</enum><header>Form of
information</header><text display-inline="yes-display-inline">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
Agency may
require.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC85A27B762B845A082BB9B0D2AC5E3B7"><enum>(d)</enum><header>Section
305</header><text>Section 305 of the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2804) is amended—</text>
<paragraph id="H76E4DFD176F9478A9FB409E72B96F53A"><enum>(1)</enum><text>by striking
subsection (b) and inserting the following new subsection:</text>
<quoted-block id="H68C254D949C24443B3E219A97A4D193A" style="OLC">
<subsection id="H7A9C9C7082BD4ACD87B24DDEAA651F36"><enum>(b)</enum><header>Powers of
certain other agencies</header><text>Compliance with the requirements imposed
under this title shall be enforced under—</text>
<paragraph id="H1BF5C12945604E77AD8518B981F5D004"><enum>(1)</enum><text>section 8 of the
Federal Deposit Insurance Act, in the case of—</text>
<subparagraph id="H6D41DD76AFDF4B948695C1FAD4B0146D"><enum>(A)</enum><text>national banks,
and Federal branches and Federal agencies of foreign banks, by the head of the
agency responsible for chartering and regulating national banks;</text>
</subparagraph><subparagraph id="HB6828D2C99DD4791BE5BA4E5A24537AF"><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
25(a) of the Federal Reserve Act, by the Board;</text>
</subparagraph><subparagraph id="HC889F3387C404FC7A9AC65A83DE760C7"><enum>(C)</enum><text>depository
institutions insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System, Federal savings associations, and
savings and loan holding companies) and insured State branches of foreign
banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
and</text>
</subparagraph><subparagraph id="H2CCE440568E94F6089A87E2B805D7CF6"><enum>(D)</enum><text display-inline="yes-display-inline">Federal savings associations, and savings
and loan holding companies, by the Director of the Office of Thrift
Supervision;</text>
</subparagraph></paragraph><paragraph id="H2AB6EDB1C53E4AD6A4182FB87796673A"><enum>(2)</enum><text>subtitle E of the
Consumer Financial Protection Agency Act of 2009, by the Agency;</text>
</paragraph><paragraph id="H8FD81EEE80614B1DB4C2A78B861685F5"><enum>(3)</enum><text>the Federal Credit
Union Act, by the Administrator of the National Credit Union Administration
with respect to any credit union; and</text>
</paragraph><paragraph id="HDFDD7576482B42C0B0B46D9112E3CD88"><enum>(4)</enum><text>other lending
institutions, by the Secretary of Housing and Urban Development. 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 meaning given to them in section 1(b) of the International Banking Act
of 1978 (12 U.S.C. 3101).</text>
</paragraph><continuation-text continuation-text-level="subsection">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 meaning given to them in section 1(b) of the International Banking Act
of 1978.</continuation-text></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFA470587C8FB4FA4A976F4D456EFF78C"><enum>(2)</enum><text>by inserting at
the end of section 305 the following new subsection:</text>
<quoted-block id="H45330D4D29AB42EF94EE83657583D277" style="OLC">
<subsection id="H51FBFF2A66FC43969CE4D726F0F886C7"><enum>(d)</enum><header>Overall
enforcement authority of the consumer financial protection
agency</header><text>Subject to section 4202 of the Consumer Financial
Protection Agency Act of 2009, enforcement of the requirements imposed under
this title is committed to each of the agencies under subsection (b). The
Agency may exercise its authorities under the Consumer Financial Protection
Agency Act of 2009 to exercise principal authority to examine and enforce
compliance by any person with the requirements under this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC7D7493220604A5EB432F9BB0AC24DE4"><enum>(e)</enum><header>Section
306</header><text>Subsection 306(b) of the Home Mortgage Disclosure Act of 1975
(12 U.S.C. 2805(b)) is amended to read as follows:</text>
<quoted-block id="H8C5886FBA80945F5A932674ADCFDB0ED" style="OLC">
<subsection id="H4DF6DA0702244B54BFB9E0A8AA7663E3"><enum>(b)</enum><text>The Agency may, by
regulation, exempt from the requirements of this title any State chartered
depository institution within any State or subdivision of any state if the
Agency determines that, under the law of such State or subdivision, that
institution is subject to requirements 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
head of the agency responsible for chartering and regulating national banks
under section 8 of the Federal Deposit Insurance Act in the case of national
banks and savings association the deposits of which are insured by the Federal
Deposit Insurance
Corporation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC03BC4920B844CDB97C2F716316C6CC9"><enum>(f)</enum><header>Section
307</header><text>Section 307 of the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2806) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5521D83F1A404AB687B8956E15CA5674" style="OLC">
<section id="H03AD4973EE3E46958C3AFC744A11E9DD"><enum>307.</enum><header>Research and
improved methods</header>
<subsection id="HAF5F6E7BDB514E9982BFEB66BD42A5DD"><enum>(a)</enum><header>Enhanced
compliance in economical manner</header>
<paragraph id="H37F5FA2BE38F479495A2BD043426E7B3"><enum>(1)</enum><header>In
general</header><text>The Director of the Consumer Financial Protection Agency,
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 Consumer Financial
Protection Agency 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="H3E40B47979C0442ABBBEB4481653C426"><enum>(2)</enum><header>Authorization of
appropriation</header><text>There is authorized to be appropriated such sums as
may be necessary to carry out this subsection.</text>
</paragraph><paragraph id="H3652D34FF3714E4E91C14DE4C21D7EBD"><enum>(3)</enum><header>Authority of
agency</header><text>The Director of the Consumer Financial Protection Agency
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 display-inline="no-display-inline" id="HD7858263B60748B8ADA66B69F3FE28E7"><enum>(b)</enum><header>Recommendations
to the Congress</header><text>The Director of the Consumer Financial Protection
Agency shall recommend to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate such additional legislation as the Director of the Consumer Financial
Protection Agency deems appropriate to carry out the purpose of this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="H52DEBDA3F75F4D04ADC46D8345144EA1"><enum>4809.</enum><header>Amendments to
division D of the Omnibus Appropriations Act, 2009</header>
<subsection commented="no" id="H2C22824789D0451499FC465F53062F1E"><enum>(a)</enum><text>Section 626(a) of
title VI of division D of the Omnibus Appropriations Act, 2009 (15 U.S.C. 1638
nt.) (as amended by the Credit Card Accountability Responsibility and
Disclosure Act of 2009) is amended—</text>
<paragraph commented="no" id="H106E6566015D4C76877BD4ED58E18571"><enum>(1)</enum><text>by striking by
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="H33A31414A64643AEA2D58F4167E0CE2A" style="OLC">
<paragraph commented="no" display-inline="yes-display-inline" id="H615C6D7EB52A41AE9D845A716CD0F654"><enum>“(1)</enum><text>The Director of
the Consumer Financial Protection Agency shall have authority to prescribe
regulations 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 regulation prescribed under this subsection
shall be treated as a violation of a regulation prohibiting unfair, deceptive,
or abusive acts or practices under the Consumer Financial Protection Agency Act
of
2009.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HEFD96AE6E73049E996AF7938AE7EE4A4"><enum>(2)</enum><text>by striking
paragraph (2);</text>
</paragraph><paragraph commented="no" id="H7E10C2BCFCD6482A8CD36C41786A153F"><enum>(3)</enum><text>by striking
paragraph (3); and</text>
</paragraph><paragraph commented="no" id="HD6CE33AD4087489AAD9451EC0094B20F"><enum>(4)</enum><text>by striking
paragraph (4) and inserting the following new paragraph:</text>
<quoted-block id="HEE00F6094357435D8257F7C764000B14" style="OLC">
<paragraph commented="no" id="H7FEEF0438EFF47D28CA84785289268EC" indent="up1"><enum>(2)</enum><text>The Director of the Consumer
Financial Protection Agency shall enforce the regulations 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 Agency Act of 2009 were incorporated into
and made part of this
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HAEDA194C234E4F53BE20A3706BE49333"><enum>(b)</enum><text display-inline="yes-display-inline">Section 626(b) of title VI of division D of
the Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 nt.) (as amended by the
Credit Card Accountability Responsibility and Disclosure Act of 2009) is
amended by striking <quote>primary Federal regulator</quote> each place it
appears and inserting <quote>Consumer Financial Protection
Agency</quote>.</text>
</subsection></section><section id="HA1DD43BD530B409C9769CA42882E325C"><enum>4810.</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="HF17B2A81ED6246AAAED75E22396FC929"><enum>(1)</enum><text>in the matter
preceding paragraph (1) of subsection (a), by striking
<quote>Compliance</quote> and inserting <quote>Subject to section 4202 of the
Consumer Financial Protection Agency Act of 2009, compliance</quote>;</text>
</paragraph><paragraph id="H683CCD094E3F48789CC8E39D5C38B4D9"><enum>(2)</enum><text>in subsection
(a)(2), by striking <quote>and</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="H88F6F2C63ED24D75B2661230B010EC45"><enum>(3)</enum><text>in subsection
(a)(3), by striking the period at the end and inserting <quote>;
and</quote>;</text>
</paragraph><paragraph id="H34DB5C1FEA8F4531B585D145BE46F0AD"><enum>(4)</enum><text>by inserting after
subsection (a)(3), the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H385DCDB5B03041828C658FA4485F67BA" style="OLC">
<paragraph id="H4B0CDBB29CAA443993C81938659B9E91"><enum>(4)
</enum><text display-inline="yes-display-inline">subtitle E of the Consumer
Financial Protection Agency Act of 2009, by the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>;
and.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA177AE0E5E3B4F6BA845B4B6FF937965"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by inserting <quote>,
subject to section 4202 of the Consumer Financial Protection Agency Act of
2009</quote> before the period at the end.</text>
</paragraph></section><section id="HD2206145ED7C49ABA92D3F3B8328DAE8"><enum>4811.</enum><header>Amendments to
the Real Estate Settlement Procedures Act of 1974</header>
<subsection id="HF4D4F2E7BD8C4149B5A264F85CDAE3C0"><enum>(a)</enum><header>Section
3</header><text>Section 3 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2602) is amended—</text>
<paragraph id="HFBBF1833EDFA4A978CE1F957E058EF35"><enum>(1)</enum><text>in paragraph (7),
by striking <quote>and</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="H0E2DFAB0E7574B1D9EFBD282B0B67C90"><enum>(2)</enum><text>in paragraph (8),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H12260973F8274D49B1F1E012F4789EE4"><enum>(3)</enum><text>by adding at the
end the following new paragraph</text>
<quoted-block id="H53BD51CE839D41ECA77477589ABE3D82" style="OLC">
<paragraph id="H3033E63B7A5C4619B02E158CEAD1CC0D"><enum>(9)</enum><text>the term
<quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3E0EAEEB464A4836AA463C4D400856C7"><enum>(b)</enum><header>Section
4</header><text display-inline="yes-display-inline">Section 4 of the Real
Estate Settlement Procedures Act of 1974 (12 U.S.C. 2603) is amended—</text>
<paragraph id="HD4595919257C4EB8AACC4E05265204C1"><enum>(1)</enum><text>in subsection (a),
by striking the first sentence and inserting the following: <quote>The Agency
shall publish a single, integrated disclosure for mortgage loan transactions,
including real estate settlement cost statements, which include the disclosure
requirements of this title, in conjunction with the disclosure requirements of
the Truth in Lending Act (15 U.S.C. 1601 note et seq.) that, taken together,
may apply to transactions subject to both or either law. The purpose of such
model disclosure shall be to facilitate compliance with the disclosure
requirements of those titles, 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="HEF1778D3C52A4260A5FE38A9ECC746E0"><enum>(2)</enum><text>by striking
<quote>Secretary</quote> each place such term appears and inserting
<quote>Agency</quote>; and</text>
</paragraph><paragraph id="HD5D648B206314FFEAFAD8ACF312CCC13"><enum>(3)</enum><text>by striking
<quote>form</quote> each place such term appears and inserting
<quote>forms</quote>.</text>
</paragraph></subsection><subsection id="HC7E05EFA845F4D979ED64B7C15B00D51"><enum>(c)</enum><header>Section
5</header><text>Section 5 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2604) is amended—</text>
<paragraph id="HEC9EB04744AD4A538196249030A4CBCD"><enum>(1)</enum><text>by striking
<quote>Secretary</quote> each place such term appears, and inserting
<quote>Agency</quote>; and</text>
</paragraph><paragraph id="HCF1DA7A7F67A476FBD378A7639F5A59A"><enum>(2)</enum><text>by striking the
first sentence of subsection (a), and inserting <quote>The Agency shall prepare
and distribute booklets jointly complying with the requirements of the Truth in
Lending Act (15 U.S.C. 1601 note et seq.) 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>
</paragraph></subsection><subsection id="HEDADEA5F0C154F8C830CF3F78B897635"><enum>(d)</enum><header>Section
6</header><text>Section 6(j)(3) of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2605(j)(3)) is amended—</text>
<paragraph id="HBF6795BDC650409FB3C98010FBFD5821"><enum>(1)</enum><text>by striking
<quote>Secretary</quote> and inserting <quote>Director of the Agency</quote>;
and</text>
</paragraph><paragraph id="HC107D08A39EF400C86032A2CE01B18E3"><enum>(2)</enum><text>by striking
<quote>by regulations that shall take effect not later than April 20,
1991,</quote> and inserting <quote>by regulation,</quote>.</text>
</paragraph></subsection><subsection id="HC8E493158300462BA26872F70A7AAC29"><enum>(e)</enum><header>Section
7</header><text>Section 7 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2606) is amended by striking <quote>Secretary</quote> and inserting
<quote>the Director of the Agency</quote>.</text>
</subsection><subsection id="H2D827AE9270A482B8F19941F59DC6155"><enum>(f)</enum><header>Section
8</header><text>Section 8 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2607) is amended—</text>
<paragraph id="H0B588FCB72634CA58E146EF26B57D120"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(5), by striking
<quote>prescribed by the Secretary</quote> and inserting <quote>prescribed by
the Director of the Agency</quote>; and</text>
</paragraph><paragraph id="HC4F683918FC14210B2B46392297C1EF4"><enum>(2)</enum><text>in subsection
(d)(4)—</text>
<subparagraph id="H2215B5E0EC534A6383A62CAD30F1A457"><enum>(A)</enum><text>by striking
<quote>The Secretary,</quote> and inserting <quote>The Agency, the
Secretary,</quote>; and</text>
</subparagraph><subparagraph id="HAFCE94DF0AF24D78A2181B6C2772A8CF"><enum>(B)</enum><text>by adding at the
end the following new sentence:<quote>However, to the extent that a Federal law
authorizes the Agency and other Federal and State agencies to enforce or
administer the law, the Agency shall have primary authority to enforce or
administer that Federal law in accordance with section 4202 of the Consumer
Financial Protection Agency Act of 2009.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H6874B2458FC6416491533339296DF6D7"><enum>(g)</enum><header>Section
10</header><text>Section 10(d) of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2609(d)) is amended by striking <quote>Secretary</quote> and
inserting <quote>Agency</quote>.</text>
</subsection><subsection id="HB7929A5F4DDA4D7A8DE1A590353084B5"><enum>(h)</enum><header>Section
16</header><text>Section 16 of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2614) is amended by inserting <quote>the Agency,</quote> before
<quote>the Secretary</quote>.</text>
</subsection><subsection id="HAD420E856F224EB88A125423740B9FD8"><enum>(i)</enum><header>Section
18</header><text>Section 18 of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2616) is amended by striking <quote>Secretary</quote> each
place such term appears and inserting <quote>Agency</quote>.</text>
</subsection><subsection id="H7F7E36E962CA489BB92B8672325C11E1"><enum>(j)</enum><header>Section
19</header><text>Section 19 of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2617) is amended—</text>
<paragraph id="H5C411AB56AF54184B344AFD41CB74165"><enum>(1)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="traditional">secretary</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="traditional">agency</header-in-text></quote>; and</text>
</paragraph><paragraph id="HA3916016D0064A4DB6FF5522FBB354CA"><enum>(2)</enum><text>by striking
<quote>Secretary</quote> each place such term appears and inserting
<quote>Agency</quote>.</text>
</paragraph></subsection></section><section id="HB210A58A593C423AB7668B334CB05AF9"><enum>4812.</enum><header>Amendments to
the Right to Financial Privacy Act of 1978</header>
<subsection id="H0E8A84E7B999494B94A74E548AC82801"><enum>(a)</enum><header>Amendments to
section 1101</header><text>Section 1101 of the Right to Financial Privacy Act
of 1978 (12 U.S.C. 3401) is amended—</text>
<paragraph id="H6069555450A84B0D9C44258E0B077C5C"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="H480C57FF2E67454D800085C73140FFBF" style="OLC">
<paragraph id="HE030338EAE19471F8AC1719BBE0C1D35"><enum>(1)</enum><text><quote>financial
institution</quote> means any bank, savings association, card issuer as defined
in section 103(n) of the Truth in Lending Act, credit union, or consumer
finance institution located in any State or territory of the United States, the
District of Columbia, Puerto Rico, Guam, American Samoa, or the Virgin
Islands;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H727B02F6ACBF4E2D927E8E37055E10FE"><enum>(2)</enum><text>in paragraph (7),
by inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block id="H37916C8A90DF425CBD65F09B752B0CA7" style="OLC">
<subparagraph id="HBE080A1DC1A446ACBCDDFC4D802B393E"><enum>(B)</enum><text>the Consumer
Financial Protection
Agency;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H92E55FE2AA2847A4B0F729DAC84310D7"><enum>(b)</enum><header>Amendments to
section 1112</header><text>Section 1112(e) of the Right to Financial Privacy
Act of 1978 (12 U.S.C. 3412) is amended by striking <quote>and the Commodity
Futures Trading Commission is permitted</quote> and inserting <quote>the
Commodity Futures Trading Commission, and the Consumer Financial Protection
Agency is permitted</quote>.</text>
</subsection><subsection id="H3E9A31DE122A47458009D69A46E682BF"><enum>(c)</enum><header>Amendments to
section 1113</header><text>Section 1113 of the Right to Financial Privacy Act
of 1978 (12 U.S.C. 3413) is amended by adding at the end the following new
subsection—</text>
<quoted-block id="H20DD13180117424BB213BDD3DF743B2E" style="OLC">
<subsection id="HEEB03D74FB334536BC196F4D14195D78"><enum>(r)</enum><header>Disclosure to
the consumer financial protection agency</header><text>Nothing in this chapter
shall apply to the examination by or disclosure to the Consumer Financial
Protection Agency 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>
</subsection></section><section id="HA3FFDF63BC414432B63417738DADD01F"><enum>4813.</enum><header>Amendments to
the Secure and Fair Enforcement for Mortgage Licensing Act of 2008</header>
<subsection id="HDCA33BC76F224FCB9ADABAA6CF2AF787"><enum>(a)</enum><header>Section
1503</header><text display-inline="yes-display-inline">Section 1503 of the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5102)
is amended—</text>
<paragraph id="HEFEEF7F94EE24D23AD27FBA479E2465E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (9);</text>
</paragraph><paragraph id="H51D6E216CF3841F2A358C7F4F8E9C0A2"><enum>(2)</enum><text>by redesignating
paragraph (1) as paragraph (4), and transferring paragraph (4) (as so
redesignated) and inserting such paragraph after paragraph (3) (as added by
paragraph (5));</text>
</paragraph><paragraph id="HB166320B48C14290805C74C273015EAB"><enum>(3)</enum><text>by redesignating
paragraphs (3), (4), (5), (6), (7), (8), (10), (11), and (12) as paragraphs
(5), (6), (7), (8), (9), (10), (11), (12), and (13), respectively;</text>
</paragraph><paragraph id="H6968F27F107E4DFCB110645B68AD69D4"><enum>(4)</enum><text>by inserting
before paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCE0327FB375B477884DB0EFE7943D337" style="OLC">
<paragraph id="H45A7358AEA89481EA013B5F7835D9154"><enum>(1)</enum><header>Agency</header><text display-inline="yes-display-inline">The term <quote>Agency</quote> means the
Consumer Financial Protection Agency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6391091BBF7E457DB42760E46AC6D051"><enum>(5)</enum><text display-inline="yes-display-inline">by inserting after paragraph (2) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5CE704B5E5664E24A146F720E1ADBE3F" style="OLC">
<paragraph id="H243CED68540945CF85A3A5994C9D5096"><enum>(3)</enum><header>Director</header><text display-inline="yes-display-inline">The term <quote>Director</quote> means the
Director of the
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9A26BB8024494861BC09E7040EF74409"><enum>(b)</enum><header>Universal
amendments relating to Agency</header><text display-inline="yes-display-inline">The Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is amended—</text>
<paragraph id="H3638D881B64D402885A0DCBBB40182C0"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Federal banking
agencies</quote> each place such term appears (other than in subsection (a)(4)
(as so redesignated by subsection (a), relating to the definition of Federal
banking agencies) or in connection with a reference that is specifically
amended by another provision of this section) and inserting
<quote>Agency</quote>; and</text>
</paragraph><paragraph id="H37D32AE9CAB3419ABBD67F0129DD8A42"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place such term appears (other than in connection with a reference that is
specifically amended by another provision of this section) and inserting
<quote>Director</quote>.</text>
</paragraph></subsection><subsection id="H7FF070D0BE9745DCBA8428C1AC6E966C"><enum>(c)</enum><header>Section
1507</header><text display-inline="yes-display-inline">Section 1507 of the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5106)
is amended—</text>
<paragraph id="H2A7EDD1CA8F741C9B841C3AD54BBFAAF"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HF639D3F72D1E41AC95F95A7BE9B27021"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block id="HBD4DE61D73624A37BB96FC93388FCB46" style="OLC">
<paragraph id="H4BC9481757F64F4FB5B4029C159BC3A6"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Agency shall
develop and maintain a system for registering employees of any 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 July 30,
2010.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H47F7B09485084610ADBC5F99D8784C45"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>appropriate Federal
banking agency and the Farm Credit Administration</quote> in paragraph (2) and
inserting <quote>Agency</quote>; and</text>
</subparagraph></paragraph><paragraph id="HF8F99CDFA51141A0AD3D1175B2D0ACF5"><enum>(2)</enum><text>in subsection (b),
by striking <quote>Federal banking agencies, through the Financial Institutions
Examination Council, and the Farm Credit Administration</quote> each place such
term appears and inserting <quote>Agency</quote>.</text>
</paragraph></subsection><subsection id="H7ADFCB908418497DAD96624A38328625"><enum>(d)</enum><header>Section
1508</header>
<paragraph id="H7B46B1CF491C48288929299E35BF47BD"><enum>(1)</enum><header>In
general</header><text>Section 1508 of the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (12 U.S.C. 5107) is amended by adding at the end
the following new subsection—</text>
<quoted-block id="H6EFF2212587241BE8508F70F2EA3D40C" style="OLC">
<subsection id="H12678E1D5A9F4BF6B5BBFA91C251232F"><enum>(f)</enum><header>Regulations</header>
<paragraph id="H215D321F838C48A19CBC1D55A2658CC9"><enum>(1)</enum><header>In
general</header><text>The Agency may prescribe 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="H9C021C322F004271B6C79ACE9B04B726"><enum>(2)</enum><header>Factors taken
into account</header><text>Such regulations 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 consumers’ access to affordable and sustainable mortgage
loans.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE5CD9F93BA50436D87D17FF9545E5AE3"><enum>(2)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The heading for
section 1508 of the Secure and Fair Enforcement for Mortgage Licensing Act of
2008 is amended by striking <quote><header-in-text level="section" style="OLC">Secretary of Housing and Urban Development</header-in-text></quote>
and inserting <quote><header-in-text level="section" style="OLC">Consumer
Financial Protection Agency</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H62E6AC7D838646A78617EAAF3C7D6F70"><enum>(e)</enum><header>Section
1510</header><text display-inline="yes-display-inline">Section 1510 of the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5109)
is amended to read as follows:</text>
<quoted-block id="HBA68BAEF75114045B59AAE134450F1F0" style="OLC">
<section id="H33584D37A753465D82823DFE9EC2425D"><enum>1510.</enum><header>Fees</header><text display-inline="no-display-inline">The Agency 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>
</subsection><subsection id="HC0D78C10118D457EB47715E604C90A62"><enum>(f)</enum><header>Section
1513</header><text display-inline="yes-display-inline">Section 1513 of the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5112)
is amended to read as follows:</text>
<quoted-block id="HF25EAC61D3604C7880C99509C2F54E71" style="OLC">
<section id="HE2655ED0DB9C4E78AE784356ED51BBD3"><enum>1513.</enum><header>Liability
provisions</header><text display-inline="no-display-inline">The Agency, 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 by 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>.</after-quoted-block></quoted-block>
</subsection><subsection id="H263137FF31554159AB5EC79E616D3E61"><enum>(g)</enum><header>Section
1514</header><text>The heading for section 1514 of the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5113) is amended 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 Agency</header-in-text></quote>.</text>
</subsection></section><section id="HF62339E725C444668965FD3F581CFA1F"><enum>4814.</enum><header>Amendments to
the Truth in Savings Act</header>
<subsection id="H032464AB9E5341529F5A8965D845F526"><enum>(a)</enum><header>Section
263</header><text>Section 263 of the Truth in Savings Act (12 U.S.C. 4302) is
amended in subsection (b) by striking <quote>Board</quote> each place such term
appears and inserting <quote>Agency</quote>.</text>
</subsection><subsection id="H95E22F0658184C2C8A132C04943EBDC4"><enum>(b)</enum><header>Section
265</header><text display-inline="yes-display-inline">Section 265 of the Truth
in Savings Act (12 U.S.C. 4304) is amended by striking <quote>Board</quote>
each place such term appears and inserting <quote>Agency</quote>.</text>
</subsection><subsection id="HF2637FA5FD024BADBE281DC6540CB15E"><enum>(c)</enum><header>Section
266</header><text>Section 266(e) of the Truth in Savings Act is amended (12
U.S.C. 4305) by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</subsection><subsection id="H74D1393370BB4AC2B62EA2A05335CBE0"><enum>(d)</enum><header>Section
269</header><text display-inline="yes-display-inline">Section 269 of the Truth
in Savings Act (12 U.S.C. 4308) is amended by striking <quote>Board</quote>
each place such term appears and inserting <quote>Agency</quote>.</text>
</subsection><subsection id="HABC10F78B66F468F92DEB52A88B56483"><enum>(e)</enum><header>Section
270</header><text>Section 270 of the Truth in Savings Act (12 U.S.C. 4309) is
amended—</text>
<paragraph id="H70F05F3A97054713AAC3721A16D173A1"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HC292C0A94124494A8E83CF98FFD4058F"><enum>(A)</enum><text>by striking
<quote>Compliance</quote> and inserting <quote>Subject to section 4202 of the
Consumer Financial Protection Agency Act of 2009, compliance</quote>;</text>
</subparagraph><subparagraph id="H600964F9323F4C0FBF79F42A118E7072"><enum>(B)</enum><text>by striking
subparagraph (A) of paragraph (1) and inserting the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H69310370B5404D26A8274D392F093923" style="OLC">
<subparagraph id="H9ACFCB6D540C405D840D51B60FF02554"><enum>(A)</enum><text display-inline="yes-display-inline">by the head of the agency responsible for
chartering and regulating national banks for national banks, and Federal
branches and Federal agencies of foreign
banks;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HE730A5E4DAC44015AA8C3E9E19DFDFF5"><enum>(C)</enum><text>by adding at the
end, the following new paragraph:</text>
<quoted-block id="H855F8783DBA644E58BDAAA3FFAF8A86A" style="OLC">
<paragraph id="H5BE81D445EA54531ABDD77E38F799827"><enum>(3)</enum><text>subtitle E of the
Consumer Financial Protection Agency Act of 2009, by the
Agency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H7CD195884F3542E0A3B2C1DC81F2C14A"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="H4CBC3DE051004CABA1AAEC73515C778D"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">board</header-in-text></quote> and insert <quote><header-in-text level="subsection" style="OLC">agency</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="HBB0921CCABF646B89EF3B8EAD6600823"><enum>(B)</enum><text>by striking
<quote>Board</quote> and inserting <quote>Agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HAB10CE5C5036482380BFDB8A4F8C84AD"><enum>(f)</enum><header>Section
272</header><text>Section 272 of the Truth in Savings Act (12 U.S.C. 4311) is
amended—</text>
<paragraph id="H8386524AC91040E1B108583D23018582"><enum>(1)</enum><text>in subsection (a),
by striking <quote>Board</quote> and inserting <quote>Agency</quote>;
and</text>
</paragraph><paragraph id="H524F5AD716D047B681F39176F32E49E8"><enum>(2)</enum><text>in subsection (b),
by striking <quote>regulation prescribed by the Board</quote> each place such
term appears and inserting <quote>regulation prescribed by the
Agency</quote>.</text>
</paragraph></subsection><subsection id="H0811EB4A8C314DC49ABBCA6BCD935BA4"><enum>(g)</enum><header>Section
273</header><text>Section 273 of the Truth in Savings Act (12 U.S.C. 4312) is
amended in the last sentence by striking <quote>Board</quote> and inserting
<quote>Agency</quote>.</text>
</subsection><subsection id="H43BA4F638C5F438DA0342F1FAD9EEFFE"><enum>(h)</enum><header>Section
274</header><text>Section 274 of the Truth in Savings Act (12 U.S.C. 4313) is
amended—</text>
<paragraph id="HA154D18E2C2C4C15AF7D57BA2F91D35D"><enum>(1)</enum><text>in paragraph (2)
by striking <quote>Board</quote> and inserting <quote>Agency</quote>;
and</text>
</paragraph><paragraph id="H59F071721D7041B6B00B9D32E28999B7"><enum>(2)</enum><text>by striking
paragraph (4) and inserting the following new paragraph:</text>
<quoted-block id="H0208DF4BCE7D47CABAB02EB1137FEE9B" style="OLC">
<paragraph id="H621795D041AA414CB843663F73B6B9C5"><enum>(4)</enum><header>Agency</header><text>The
term <quote>Agency</quote> means the Consumer Financial Protection
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H8FEFCF26BFC14827B00AAB4FC6006549"><enum>4815.</enum><header>Amendments to
the Telemarketing and Consumer Fraud and Abuse Prevention Act</header>
<subsection id="HBA9F9F3E86BD4C9CBC4ACE9DB6E295D0"><enum>(a)</enum><header>Section
3</header><text display-inline="yes-display-inline">Section 3 of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6102) is
amended—</text>
<paragraph id="HC12593EF700049A29D1A2D3F3E3CE656"><enum>(1)</enum><text>in subsection (b),
by inserting after the 2nd sentence <quote>In prescribing a regulation under
this Act that relates to the provision of a consumer financial product or
service that is subject to the Consumer Financial Protection Agency Act,
including any enumerated consumer law thereunder, the Commission shall consult
with the Consumer Financial Protection Agency regarding the consistency of a
proposed regulation with standards, purposes, or objectives administered by the
Consumer Financial Protection Agency.</quote>; and</text>
</paragraph><paragraph id="H615ECDA6293548FA837F4AA0BF2AEBAB"><enum>(2)</enum><text>in subsection (c),
by adding at the end <quote>Any violation of any regulation prescribed under
subsection (a) committed by a person subject to the Consumer Financial
Protection Agency Act shall be treated as a violation of a regulation under
section 4301 of the Consumer Financial Protection Agency Act regarding unfair,
deceptive, or abusive acts or practices.</quote>.</text>
</paragraph></subsection><subsection id="HBAC49782D4FF45D388005E66C954E8AC"><enum>(b)</enum><header>Amendments to
section 4</header><text display-inline="yes-display-inline">Section 4(d) of the
Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6103(d))
is amended—</text>
<paragraph id="H7E65F3115058409D9E511788C4A4D85B"><enum>(1)</enum><text>in the subsection
heading, by inserting after <quote><header-in-text level="subsection" style="OLC">commission</header-in-text></quote> the following:
<quote><header-in-text level="subsection" style="OLC">or the consumer financial
protection agency</header-in-text></quote>; and</text>
</paragraph><paragraph id="H9DF90969D7694838B79B77158F1A1CCD"><enum>(2)</enum><text>by inserting after
<quote>Commission</quote> each place such term appears <quote>or the Consumer
Financial Protection Agency</quote>.</text>
</paragraph></subsection><subsection id="H8AAB036063094365B2B0BCA0DEE35F14"><enum>(c)</enum><header>Amendments to
section 5</header><text display-inline="yes-display-inline">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 such term
appears <quote>or the Consumer Financial Protection Agency</quote>.</text>
</subsection><subsection id="HAD362DE4EA0F4602ABDB5E8FDFA0ED6D"><enum>(d)</enum><header>Amendment to
section 6</header><text display-inline="yes-display-inline">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 new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2F12523A75A7473F8BF5E61819433A0E" style="OLC">
<subsection id="HDACAC21AB9094A1C996D477EC9D25BE2"><enum>(d)</enum><header>Enforcement by
Consumer Financial Protection Agency</header><text display-inline="yes-display-inline">Except as otherwise provided in sections
3(d), 3(e), 4, and 5, this Act shall be enforced by the Consumer Financial
Protection Agency under subtitle E of the Consumer Financial Protection Agency
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H833B03F112C04E13BF3387A3FC5C9B92"><enum>4816.</enum><header>Membership in
Financial Literacy and Education Commission</header><text display-inline="no-display-inline">Section 513(c)(1) of the Financial Literacy
and Education Improvement Act (20 U.S.C. 9702(c)(1)) is amended—</text>
<paragraph id="H92210860C95746D086B34D2A979398DB"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HADDC5C158311442E900B3AEC06A58C0D"><enum>(2)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</paragraph><paragraph id="HB7FB88C7389048B3AF3523FA46153C1F"><enum>(3)</enum><text>by inserting after
subparagraph (B) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4E264830DDEC47679350B41901EFA122" style="OLC">
<subparagraph id="H236A7734AA3744E899D7414DEBAF29C4"><enum>(C)</enum><text display-inline="yes-display-inline">the Director of the Consumer Financial
Protection Agency;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HF2DDD0043EF74ABB999FFB86411A73BF"><enum>4817.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
sections 4803 through 4815 shall take effect on the designated transfer
date.</text>
</section></subtitle><subtitle commented="no" id="HD1AA13B8BC2D43CEB90FE3BAF6E8FEF2"><enum>I</enum><header>Improvements to
the Federal Trade Commission Act</header>
<section commented="no" id="HA141795800944572BFFE69FBD82E0AB4" section-type="subsequent-section"><enum>4901.</enum><header>Amendments to the
Federal Trade Commission Act</header>
<subsection commented="no" id="HFF54CED96FA946029785F29DC6D3248F"><enum>(a)</enum><text>Section 5(m)(1)(A)
of the Federal Trade Commission Act (15 U.S.C. 45(m)(1)(A)) is amended—</text>
<paragraph commented="no" id="HABE9FAEDFE5C4504B5F6BFD5BD95F9F0"><enum>(1)</enum><text>by inserting
<quote>this Act or</quote> after <quote>violates</quote> the first place such
term appears; and</text>
</paragraph><paragraph commented="no" id="H6A93BBFC93FC41A1881FAEB49A4E8E86"><enum>(2)</enum><text>by inserting
<quote>a violation of this Act or is</quote> before
<quote>prohibited</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H6DF4E17ACC22402286ED28800B3F4FC4"><enum>(b)</enum><text>Section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) is amended by adding at the end
thereof the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H37176B0F2EF64E7E8FCFD9BEAA111923" style="OLC">
<subsection commented="no" id="H51EC8C0D0752487B9CDDF2273102A2E1"><enum>(o)</enum><header>Unlawful
assistance</header><text display-inline="yes-display-inline">It is unlawful for
any person, knowingly or recklessly, to provide substantial assistance to
another in violating any provision of this Act or of any other Act enforceable
by the Commission that relates to unfair or deceptive acts or practices. Any
such violation shall constitute an unfair or deceptive act or practice
described in section 5(a)(1) of this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H9AF1F05046B24E5584DC24A66F62108D"><enum>(c)</enum><text display-inline="yes-display-inline">Section 18 of the Federal Trade Commission
Act (15 U.S.C. 57a(b)) is amended—</text>
<paragraph commented="no" id="H463F274B6A334F34BEE75F7C75163987"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subsection (b) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HD4CA505F07A74DB7878FB696EB1B21B8" style="OLC">
<subsection commented="no" id="H2D9BE3188E8D4F69868BCA69392E5AEE"><enum>(b)</enum><header>Procedure
applicable</header><text display-inline="yes-display-inline">When prescribing a
rule under subsection (a)(1)(B) of this section, the Commission shall proceed
in accordance with section 553 of Title 5 (without regard to any reference in
such section to sections 556 and 557 of such
title).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H2C141E896463456D89AD1E3B1F4A03E7"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H2F3072B15D7F4F1F9A775A0F34FCAC3F"><enum>(A)</enum><text>in subsection (d), by
striking all that precedes paragraph (3);</text>
</subparagraph><subparagraph commented="no" id="H2C1D7920DFD945B7AA305AD1402029A6" indent="up1"><enum>(B)</enum><text>by striking subsections (c), (f), (i),
and (j); and</text>
</subparagraph><subparagraph commented="no" id="H5373BB166F6B4EC597FEEAA6EB65D039" indent="up1"><enum>(C)</enum><text>by redesignating subsections (e), (g)
and (h) as subsections (d), (e) and (f);</text>
</subparagraph></paragraph><paragraph commented="no" id="H64D40A4111294EA686F293B774D78FA9"><enum>(3)</enum><text>by redesignating
paragraph (3) of subsection (d) as subsection (c); and</text>
</paragraph><paragraph commented="no" id="HC15B57AA563D4C5F8969652D6E181168"><enum>(4)</enum><text>in subsection (d)
(as redesignated)—</text>
<subparagraph commented="no" id="HA86C862E333A44F1AB947B9F16CC72BE"><enum>(A)</enum><text>in paragraph
(1)(B), by striking <quote>the transcript required by subsection
(c)(5),</quote>;</text>
</subparagraph><subparagraph commented="no" id="H511EA2D206A540608E184060A7A6229E"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>error)</quote> all that follows and inserting
<quote>error).</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H31435C8C3C204CB2A438E8C9CF1EFCAE"><enum>(C)</enum><text>in paragraph (5),
by striking subparagraph (C).</text>
</subparagraph></paragraph></subsection></section></subtitle><enum>V</enum><header>Capital
Markets</header>
<subtitle id="HF7AAB3487FBD4F8BAB386D72877DEB68"><enum>A</enum><header>Private Fund
Investment Advisers Registration Act</header>
<section id="HE8FD2649B2914D618FE965F6C1D20779" section-type="subsequent-section"><enum>5001.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Private Fund Investment Advisers Registration Act of
2009</quote>.</text>
</section><section id="H5801F154D7914CC2969225ACF6345652"><enum>5002.</enum><header>Definitions</header><text display-inline="no-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
new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H041FBA6FDDFE481E972A988153AD6F1D" style="OLC">
<paragraph id="H673E96C341D54281B2DE68A75C73070D"><enum>(29)</enum><header>Private
fund</header><text>The term <quote>private fund</quote> means an issuer that
would be an investment company under section 3(a) of the Investment Company Act
of 1940 (15 U.S.C. 80a-3(a)) but for the exception provided from that
definition by either section 3(c)(1) or section 3(c)(7) of such Act.</text>
</paragraph><paragraph id="H85D590A2AC2E49DAABEA5656A2868B05"><enum>(30)</enum><header>Foreign private
fund adviser</header><text display-inline="yes-display-inline">The term
<quote>foreign private fund adviser</quote> means an investment adviser
who—</text>
<subparagraph id="H41BBCC19524D494AB4888039D5275E01"><enum>(A)</enum><text>has no place of
business in the United States;</text>
</subparagraph><subparagraph id="HB0ABB017588E4995B555CD5A8F19EE90"><enum>(B)</enum><text>during the
preceding 12 months has had—</text>
<clause id="HFFFA1F336B644CA79BF0D401EE1A0937"><enum>(i)</enum><text>fewer than 15
clients in the United States; and</text>
</clause><clause id="H59E81B20521B4BFEB2C70633B7358BCB"><enum>(ii)</enum><text display-inline="yes-display-inline">assets under management attributable to
clients in the United States of less than $25,000,000, or such higher amount as
the Commission may, by rule, deem appropriate in the public interest or for the
protection of investors; and</text>
</clause></subparagraph><subparagraph id="H20733249719A409A889B973C1D59488E"><enum>(C)</enum><text display-inline="yes-display-inline">neither holds itself out generally to the
public in the United States as an investment adviser, nor acts as an investment
adviser to any 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 (15 U.S.C. 80a-53)
and has not withdrawn such
election.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2B46BAD195A144639F5122C290069C32"><enum>5003.</enum><header>Elimination of
private adviser exemption; Limited exemption for foreign private fund 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="H7665339D89E5444780E6A937B295AA78"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>,
except an investment adviser who acts as an investment adviser to any private
fund,</quote> after <quote>any investment adviser</quote>;</text>
</paragraph><paragraph id="HCE2DBF46D0DA4722A13B8C82CBFA4955"><enum>(2)</enum><text>by amending
paragraph (3) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFF847D600D7E4B6F8C611E38FCF359CC" style="OLC">
<paragraph id="H5A9FF4D34F1745918DF3599DA8EC5675"><enum>(3)</enum><text display-inline="yes-display-inline">any investment adviser that is a foreign
private fund
adviser;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HECC091F711094A2C91C935341EF665A5"><enum>(3)</enum><text>in paragraph (5),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H72CB760B063049FA93CBEDD6821E2D0B"><enum>(4)</enum><text>in paragraph
(6)—</text>
<subparagraph id="H28D94803268A450EA5C16BAE93EBB185"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>or</quote>;</text>
</subparagraph><subparagraph id="H985FA1460DAE4C5188BC0F6F908AFD42"><enum>(B)</enum><text>in subparagraph
(B), by striking the period at the end and adding <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="H0D7882D29DA3464FB435E277664D0712"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H22B22B62F32A4DDB94A65184AC2C7E1C" style="OLC">
<subparagraph id="H5EBBF594EA934350B912B4E04E220CBF"><enum>(C)</enum><text display-inline="yes-display-inline">a private fund;
or</text>
</subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2DBA466A1F3A4FB3A6D4AE774EA2D727"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD3C58ECAD87D4D7190945C22FF9588B0" style="traditional">
<paragraph id="HCA98F5505B964BF5A399C8F773FDBC9B"><enum>(7)</enum><text display-inline="yes-display-inline">any investment adviser who solely
advises—</text>
<subparagraph id="H346D91CEC3CA4B909B6C8177C686F79C"><enum>(A)</enum><text>small business
investment companies licensed under the Small Business Investment Act of
1958;</text>
</subparagraph><subparagraph id="H738EBE021E7C463CA2E630ADD98278FD"><enum>(B)</enum><text>entities that have
received from the Small Business Administration notice to proceed to qualify
for a license, which notice or license has not been revoked; or</text>
</subparagraph><subparagraph id="HED8874176E2E4955BAEBAB3B533D9763"><enum>(C)</enum><text>applicants,
related to one or more licensed small business investment companies covered in
subparagraph (A), that have applied for another license, which application
remains
pending.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HB6A474F5DAE945CCBE8C51920743E07E"><enum>5004.</enum><header>Collection of
systemic risk data</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="H36BEFB494EAA4452B7B2542D4BC36409"><enum>(1)</enum><text>by redesignating
subsections (b) and (c) as subsections (c) and (d), respectively; and</text>
</paragraph><paragraph id="HE77D925040274398A5CBC7ED2DF425BD"><enum>(2)</enum><text>by inserting after
subsection (a) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H119152482A97428B881E42978E027212" style="OLC">
<subsection id="H4F5C7DECA91F49F1A3A3D88283881E36"><enum>(b)</enum><header>Records and
reports of private funds</header>
<paragraph id="HAD77EFC906DD409CA162AD6E0F21F49A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission is
authorized to require any investment adviser registered under this Act to
maintain such records of and file with the Commission such reports regarding
private funds advised by the investment adviser as are necessary or appropriate
in the public interest and for the protection of investors or for the
assessment of systemic risk as the Commission determines in consultation with
the Board of Governors of the Federal Reserve System. The Commission is
authorized to provide or make available to the Board of Governors of the
Federal Reserve System, and to any other entity that the Commission identifies
as having systemic risk responsibility, those reports or records or the
information contained therein. The records and reports of any private fund, to
which any such investment adviser provides investment advice, maintained or
filed by an investment adviser registered under this Act, shall be deemed to be
the records and reports of the investment adviser.</text>
</paragraph><paragraph id="HDDDBA45997C14810A808D9A58B4EDA38"><enum>(2)</enum><header>Required
information</header><text display-inline="yes-display-inline">The records and
reports required to be maintained or filed with the Commission under this
subsection shall include, for each private fund advised by the investment
adviser—</text>
<subparagraph id="HEA6E1A2B700A4A3A85218885234BFBD6"><enum>(A)</enum><text>the amount of
assets under management;</text>
</subparagraph><subparagraph id="H757D18178EE544EA8D7B9018497A0562"><enum>(B)</enum><text>the use of
leverage (including off-balance sheet leverage);</text>
</subparagraph><subparagraph id="H82A4CDE96CC14A02A8D8D5A54257DEBE"><enum>(C)</enum><text>counterparty
credit risk exposures;</text>
</subparagraph><subparagraph id="H1B4FE674926B433090EF7C5E13B4FEAC"><enum>(D)</enum><text>trading and
investment positions;</text>
</subparagraph><subparagraph id="HF63127DF6B4A40939FFE749B0BBA5465"><enum>(E)</enum><text>trading practices;
and</text>
</subparagraph><subparagraph id="H2591A29B13684776AE2238D9A81AF7C5"><enum>(F)</enum><text>such other
information as the Commission, in consultation with the Board of Governors of
the Federal Reserve System, determines necessary or appropriate in the public
interest and for the protection of investors or for the assessment of systemic
risk.</text>
</subparagraph></paragraph><paragraph id="HFCA70DC7CA8641849F57DD7D783C3AEA"><enum>(3)</enum><header>Optional
information</header><text display-inline="yes-display-inline">The Commission
may require the reporting of such additional information from private fund
advisers as the Commission determines necessary. In making such determination,
the Commission, taking into account the public interest and potential to
contribute to systemic risk, may set different reporting requirements for
different classes of private fund advisers, based on the particular types or
sizes of private funds advised by such advisers.</text>
</paragraph><paragraph id="HFB8B0DEFE94F49EDB358F25667FAE46F"><enum>(4)</enum><header>Maintenance of
records</header><text display-inline="yes-display-inline">An investment adviser
registered under this Act is required to maintain and keep such records of
private funds advised by the investment adviser for such period or periods as
the Commission, by rule or regulation, may prescribe as necessary or
appropriate in the public interest and for the protection of investors or for
the assessment of systemic risk.</text>
</paragraph><paragraph id="HEB18341E5C97434CA918DCD30DDE6BD7"><enum>(5)</enum><header>Examination of
records</header>
<subparagraph id="HA11ED24FB3D1464AA1A6D6A7E0547735"><enum>(A)</enum><header>Periodic and
special examinations</header><text display-inline="yes-display-inline">All
records of a private fund maintained by an investment adviser registered under
this Act shall be subject at any time and from time to time to such periodic,
special, and other examinations by the Commission, or any member or
representative thereof, as the Commission may prescribe.</text>
</subparagraph><subparagraph id="H3F18AFD7D45048DBBF7A3A5CBD0BC32A"><enum>(B)</enum><header>Availability of
records</header><text>An investment adviser registered under this Act shall
make available to the Commission or its representatives 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="H354C9882CE3B4B3DB9329FFFCDC43910"><enum>(6)</enum><header>Information
sharing</header><text display-inline="yes-display-inline">The Commission shall
make available to the Board of Governors of the Federal Reserve System, and to
any other entity that the Commission identifies as having systemic risk
responsibility, copies of all reports, documents, records, and information
filed with or provided to the Commission by an investment adviser under this
subsection as the Board, or such other entity, may consider necessary for the
purpose of assessing the systemic risk of a private fund. All such reports,
documents, records, and information obtained by the Board, or such other
entity, from the Commission under this subsection shall be kept confidential in
a manner consistent with confidentiality established by the Commission pursuant
to paragraph (8).</text>
</paragraph><paragraph id="HA7949990FCE142A0BCC273A9BB93554C"><enum>(7)</enum><header>Disclosures of
certain private fund information</header><text display-inline="yes-display-inline">An investment adviser registered under this
Act shall provide such reports, records, and other documents to investors,
prospective investors, counterparties, and creditors, of any private fund
advised by the investment adviser as the Commission, by rule or regulation, may
prescribe as necessary or appropriate in the public interest and for the
protection of investors or for the assessment of systemic risk.</text>
</paragraph><paragraph id="H9F50EA24DF0D47438B5D23EFC82801B2"><enum>(8)</enum><header>Confidentiality
of reports</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of law, the Commission shall not be compelled to disclose
any report or information contained therein required to be filed with the
Commission under this subsection. Nothing in this paragraph shall authorize 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 or any self-regulatory organization requesting the report or
information for purposes within the scope of its jurisdiction, or complying
with an order of a court of the United States in an action brought by the
United States or the Commission. For purposes of section 552 of title 5, United
States Code, this paragraph shall be considered a statute described in
subsection (b)(3)(B) of such
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HABABED5A14794071B25A05E501FFFD3F"><enum>5005.</enum><header>Elimination of
disclosure provision</header><text display-inline="no-display-inline">Section
210 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-10) is amended by
striking subsection (c).</text>
</section><section id="H68060DA14B26405CB49D0D1C671A57ED"><enum>5006.</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 new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1755242EE4FE4A9B91A7F07531A00E21" style="OLC">
<subsection id="H95B7B2D883A140DAA7CBB9A4C9EFDE81"><enum>(l)</enum><header>Exemption of and
reporting by venture capital fund advisers</header><text display-inline="yes-display-inline">The Commission shall identify and define
the term <quote>venture capital fund</quote> and shall provide an adviser to
such a fund an exemption from the registration requirements under this section
(excluding any such fund whose adviser is exempt from registration pursuant to
paragraph (7) of subsection (b)). 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 id="HA060936FDB63401488DFBC9E135BC853"><enum>5007.</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), as amended by section 5006, is further amended by
adding at the end the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="HBABF3AC501E84F79AC3CB27AC915E587" style="OLC">
<subsection id="H7E56EFA5752E4028B2DEA2999165129A"><enum>(m)</enum><header>Exemption of and
reporting by certain private fund advisers</header>
<paragraph id="H0A22FFCDDE0B4F91BFD992A314E361F9"><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 private funds has
assets under management in the United States of less than $150,000,000.</text>
</paragraph><paragraph id="HE8614A8884F84BAAB7421E791E6E407E"><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 id="H9433F50960AF48A0832A5CC21025BEB9"><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="H09190976BA1D42189FC16B09201F3C46"><enum>5008.</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="HD1E9683932B24E26838FB53DFF3A4947"><enum>(1)</enum><text>by amending
subsection (a) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEA72D8A92DD041C69326AD48500AA9F8" style="OLC">
<subsection id="HF82678503DBF4A358EF1B97C0DA6F3BB"><enum>(a)</enum><text display-inline="yes-display-inline">The Commission shall have authority from
time to time to make, issue, amend, and rescind such rules and regulations and
such orders as are necessary or appropriate to the exercise of the functions
and powers conferred upon the Commission elsewhere in this title, including
rules and regulations defining technical, trade, and other terms used in this
title. For the purposes of its rules and regulations, the Commission
may—</text>
<paragraph id="H0BEAF010856046C0BFCFD9A8EAE8A895"><enum>(1)</enum><text display-inline="yes-display-inline">classify persons and matters within its
jurisdiction based upon, but not limited to—</text>
<subparagraph id="H07341DF4C1764764B66AF67953AA3DD9"><enum>(A)</enum><text>size;</text>
</subparagraph><subparagraph id="HCA696E12155A4D66B0D7492624B52AF7"><enum>(B)</enum><text>scope;</text>
</subparagraph><subparagraph id="HC2A1F3DEA9DD4193AC67A0B9064F3F0B"><enum>(C)</enum><text>business
model;</text>
</subparagraph><subparagraph id="HD59D8D0BC8864D8BAE1369EC6234D0DD"><enum>(D)</enum><text>compensation
scheme; or</text>
</subparagraph><subparagraph id="H5C32A19D1943480B847DA1866E6E21A7"><enum>(E)</enum><text>potential to
create or increase systemic risk;</text>
</subparagraph></paragraph><paragraph id="H8192C425A1894C5DA9CB0E90F39BA005"><enum>(2)</enum><text>prescribe
different requirements for different classes of persons or matters; and</text>
</paragraph><paragraph id="H4682233FE9F347F7B1FD09E5FE602E05"><enum>(3)</enum><text display-inline="yes-display-inline">ascribe different meanings to terms
(including the term <quote>client</quote>, except the Commission shall not
ascribe a meaning to the term <quote>client</quote> 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) used in different
sections of this title as the Commission determines necessary to effect the
purposes of this title.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7A1AC35DD549481E97416642D5A06341"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE45F939FF8DB415AAEEE607621F2C140" style="OLC">
<subsection id="H7CBB38B104464B2283588B2687B0AFC5"><enum>(e)</enum><text display-inline="yes-display-inline">The Commission and the Commodity Futures
Trading Commission shall, after consultation with the Board of Governors of the
Federal Reserve System, within 12 months after the date of enactment of the
Private Fund Investment Advisers Registration Act of 2009, jointly promulgate
rules to establish the form and content of the reports required to be filed
with the Commission under sections 203(l) and 204(b) and with the Commodity
Futures Trading Commission by investment advisers that are registered both
under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) and the
Commodity Exchange Act (7 U.S.C. 1 et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H68B1B3674CCE488291875064F231D05F"><enum>5009.</enum><header>GAO
study</header>
<subsection id="HD7B41782D5B54402B2A7C1AF19EDB55F"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall carry out a study to assess the annual costs
on industry members and their investors due to the registration requirements
and ongoing reporting requirements under this subtitle and the amendments made
by this subtitle.</text>
</subsection><subsection id="H215F0444CC67421D8ABE2818F4732C29"><enum>(b)</enum><header>Report to the
Congress</header><text>Not later than the end of the 2-year period beginning on
the date of the enactment of this title, the Comptroller General of the United
States shall submit a report to the Congress containing the findings and
determinations made by the Comptroller General in carrying out the study
required under subsection (a).</text>
</subsection></section><section display-inline="no-display-inline" id="H1AC3CF3866AF42968EB792F00B765ED5" section-type="subsequent-section"><enum>5010.</enum><header>Effective date;
Transition period</header>
<subsection id="H6997D3F0C4DC4055AC792028FA0F88E2"><enum>(a)</enum><header>Effective
date</header><text display-inline="yes-display-inline">This subtitle, and the
amendments made by this subtitle, shall take effect with respect to investment
advisers after the end of the 1-year period beginning on the date of the
enactment of this title.</text>
</subsection><subsection id="H28D43D7995BC4DE4ABF6D7E2203BE137"><enum>(b)</enum><header>Transition
period</header><text>The Securities and Exchange Commission shall prescribe
rules and regulations to permit an investment adviser who will be required to
register with the Securities and Exchange Commission by reason of this subtitle
with the option of registering with the Securities and Exchange Commission
before the date described under subsection (a).</text>
</subsection></section><section id="H061280A13C3B4DFBA67167B2294768D9"><enum>5011.</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 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, not later than one year after the date of the
enactment of the Private Fund Investment Advisers Registration Act of 2009, and
every 5 years thereafter, adjust for the effects of inflation on such test. Any
such adjustment that is not a multiple of $1,000 shall be rounded to the
nearest multiple of $1,000.</quote>.</text>
</section></subtitle><subtitle commented="no" id="HA8D1B6FDE0754AC19CF3C1570DA42618"><enum>B</enum><header>Accountability and
Transparency in Rating Agencies Act</header>
<section commented="no" id="H9A480F686A80462897642610A37DD1DF" section-type="subsequent-section"><enum>6001.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Accountability and
Transparency in Rating Agencies Act</short-title> of 2009</quote>.</text>
</section><section commented="no" id="HA04572DF7A944AB697F976A53503C20A"><enum>6002.</enum><header>Enhanced
regulation of nationally recognized statistical rating
organizations</header><text display-inline="no-display-inline">Section 15E of
the Securities Exchange Act of 1934 (15 U.S.C. 78o–7) is amended—</text>
<paragraph commented="no" id="HA13D71A3B0614A6E8F9F1EA0CBD2E160"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" id="H7A49E9E474CD4F1EBDBD88E9A4D5065C"><enum>(A)</enum><text>in paragraph
(1)(A), by striking <quote>furnish to</quote> and inserting <quote>file
with</quote>;</text>
</subparagraph><subparagraph commented="no" id="H466ED6F34D2D4C3D87293C442FE6EF7C"><enum>(B)</enum><text>in paragraph
(2)(A), by striking <quote>furnished to</quote> and inserting <quote>filed
with</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H5BB09149141146D1B80E9D5A953A7FAB"><enum>(C)</enum><text>in paragraph
(2)(B)(i)(II), by striking <quote>furnished to</quote> and inserting
<quote>filed with</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="HEA208D04281A44B0A6F5C366663B327D"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph commented="no" id="H01E7B2553C224E03A12CAC283B439210"><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="H659C6EB5C9004BDB88C6264580657845"><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="H62A38EAD7E174E95A6A13DE7820551BF"><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 commented="no" id="HDDC3E291FD7549578705BF04D1802F13"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph commented="no" id="HB1BB1F2D30F84857960BE093CAD72593"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (2)—</text>
<clause commented="no" id="H2E7F878D29834E2DA2A3DC912B9CAC57"><enum>(i)</enum><text>in the second
sentence by inserting <quote>including the requirements of this
section,</quote> after <quote>Notwithstanding any other provision of
law,</quote>; and</text>
</clause><clause commented="no" id="HBEDF802A5BA642AEB0540CECB273B60B"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting before the period at the end
of the last sentence <quote>, provided that this paragraph does not afford a
defense against any action or proceeding brought by the Commission to enforce
the antifraud provision of the securities laws</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="H3D0588810C8D4EDEAA92B6390EC3ED51"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H7817807534CE4BEBA76C262B4CD37F46" style="OLC">
<paragraph commented="no" id="H36756A9943F54FF6930DC84ADC4D03A3"><enum>(3)</enum><header>Review of
internal processes for determining credit ratings</header>
<subparagraph commented="no" id="H899BE2FBBAB14672B1206D692238DAED"><enum>(A)</enum><header>In
general</header><text>The Commission shall examine credit ratings issued by,
and the policies, procedures, and methodologies employed by, each nationally
recognized statistical rating organization to review whether—</text>
<clause commented="no" id="H25A4CC1B404E45DDB8AF6190CF6E676D"><enum>(i)</enum><text>the nationally
recognized statistical rating organization has established and documented a
system of internal controls, due diligence and implementation of methodologies
for determining credit ratings, taking into consideration such factors as the
Commission may prescribe by rule;</text>
</clause><clause commented="no" id="H2B1BA949B6AA423DAC49C59447A145E5"><enum>(ii)</enum><text>the nationally
recognized statistical rating organization adheres to such system; and</text>
</clause><clause commented="no" id="H12FFE84FCEE548A0B975B67C9D635AAC"><enum>(iii)</enum><text>the public
disclosures of the nationally recognized statistical rating organization
required under this section about its credit ratings, methodologies, and
procedures are consistent with such system.</text>
</clause></subparagraph><subparagraph commented="no" id="H4447235B893B403FA29FA2672CDE9789"><enum>(B)</enum><header>Manner and
frequency</header><text>The Commission shall conduct reviews required by this
paragraph no less frequently than annually in a manner to be determined by the
Commission.</text>
</subparagraph></paragraph><paragraph commented="no" id="H0C64DE6D978942F29969C56CFB0A3B41"><enum>(4)</enum><header>Provision of
information to the commission</header><text>Each nationally recognized
statistical rating organization shall make available and maintain such records
and information, for such a period of time, as the Commission may prescribe, by
rule, as necessary for the Commission to conduct the reviews under paragraph
(3).</text>
</paragraph><paragraph commented="no" id="HF14891BD5DF349459489820D113B34F8"><enum>(5)</enum><header>Disclosures with
respect to structured securities</header>
<subparagraph commented="no" id="H6CBF3B62235C4007BC8044F533EA2F45"><enum>(A)</enum><header>Regulations
required</header><text display-inline="yes-display-inline">The rules and
regulations prescribed by the Commission pursuant to this section with respect
to nationally recognized statistical rating organizations shall, with respect
to the procedures and methodologies by which any nationally recognized
statistical rating organization determines credit ratings for structured
securities—</text>
<clause commented="no" id="HFCF2C91733C74BCBB558FA83A895591E"><enum>(i)</enum><text display-inline="yes-display-inline">specify the information required to be
disclosed to such rating organizations by the sponsor, issuers, and
underwriters of such structured securities on the collateral underlying such
structured securities; and</text>
</clause><clause commented="no" id="H587EA7BE6D0D4460A9E1381D734FD787"><enum>(ii)</enum><text display-inline="yes-display-inline">establish and implement procedures to
collect and disclose information about the processes used by such sponsor,
issuers, and underwriters to assess the accuracy and integrity of their data
and fraud detection.</text>
</clause></subparagraph><subparagraph commented="no" id="H941FA021E47F451593EAC794BB3EBF0C"><enum>(B)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this paragraph, the
Commission shall, by rule or regulation, define the term <quote>structured
securities</quote> as appropriate in the public interest and for the protection
of investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="HDE0B4D2A848145BD97964506E5E02034"><enum>(6)</enum><header>Historical
default rate disclosures</header><text display-inline="yes-display-inline">The
rules and regulations prescribed by the Commission pursuant to this section
with respect to nationally recognized statistical rating organizations shall
require each nationally recognized statistical rating organization to establish
and maintain, on a publicly accessible Internet site, a facility to disclose,
in a central database, the historical default rates of all classes of financial
products rated by such organization.</text>
</paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H3EC3CE90392D4B199B58D262AC26A070"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph commented="no" id="H6E8BB2B2073B405E859CB7446DA6A9B2"><enum>(A)</enum><text>in the heading, by
inserting <quote><header-in-text level="subsection" style="OLC">Fine,</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Censure,</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="H457E57FED90949CB8F8991093E9A38B8"><enum>(B)</enum><text>by striking
<quote>shall censure</quote> and all that follows through
<quote>revocation</quote> and inserting the following: <quote>shall censure,
fine in accordance with section 21B(a), place limitations on the activities,
functions, or operations of, suspend for a period not exceeding 12 months, or
revoke the registration of any nationally recognized statistical rating
organization (or 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 nationally recognized
statistical rating organization, the Commission, by order, shall censure, fine
in accordance with section 21B(a), place limitations on the activities or
functions of such person, suspend for a period not exceeding 12 months, or bar
such person from being associated with a nationally recognized statistical
rating organization), if the Commission finds, on the record after notice and
opportunity for hearing, that such censure, fine, placing of limitations, bar,
suspension, or revocation</quote>;</text>
</subparagraph><subparagraph commented="no" id="HC517DD366BD447D2A2E0CAD9C10058AD"><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 commented="no" id="HD161E3FBCD88419CA9B66E4585FCD3FA"><enum>(D)</enum><text>in paragraph
(4)—</text>
<clause commented="no" id="HAC942FA31AE341CB8FEAD3BE434C65ED"><enum>(i)</enum><text>by striking
<quote>furnish</quote> and inserting <quote>file</quote>;</text>
</clause><clause commented="no" id="HC8239848AD704B66B24772F027114D5B"><enum>(ii)</enum><text>by striking
<quote>or</quote> at the end;</text>
</clause></subparagraph><subparagraph commented="no" id="HFBDC478C08DA44769076244099B3444F"><enum>(E)</enum><text>in paragraph (5),
by striking the period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph commented="no" id="HBCA0F3D8999F4BB2A305122DA4471169"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HFA07E548AB074508A5174D20FB535BA4" style="OLC">
<paragraph commented="no" id="H24CDAA99B26946709B285C46EB798593"><enum>(6)</enum><text display-inline="yes-display-inline">has failed reasonably to supervise another
person who commits a violation of the securities laws, the rules or regulations
thereunder, or any rules of the Municipal Securities Rulemaking Board if such
other person is subject to his or her supervision, except that no person shall
be deemed to have failed reasonably to supervise any other person under this
paragraph, if—</text>
<subparagraph commented="no" id="H41BA562071184CFE9EC6D61921CCD130"><enum>(A)</enum><text>there have been
established procedures, and a system for applying such procedures, which would
reasonably be expected to prevent and detect, insofar as practicable, any such
violation by such other person, and</text>
</subparagraph><subparagraph commented="no" id="HBABBD1A6FDCB4BB6BA01677F7BF2DB5C"><enum>(B)</enum><text display-inline="yes-display-inline">such person has reasonably discharged the
duties and obligations incumbent upon him or her by reason of such procedures
and system without reasonable cause to believe that such procedures and system
were not being complied with; or</text>
</subparagraph></paragraph><paragraph commented="no" id="H9F061850F3EF4620A62A58413C59FE41"><enum>(7)</enum><text>fails to conduct
sufficient surveillance to ensure that credit ratings remain current and
reliable, as applicable.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H2757A17E6F0648C5B0BD377B2ED5737E"><enum>(5)</enum><text>in subsection
(e)—</text>
<subparagraph commented="no" id="H8B7FD9B0BA644924BA1929D2F7B83B3E"><enum>(A)</enum><text>by striking
paragraph (1); and</text>
</subparagraph><subparagraph commented="no" id="H76BADE7E5F5B40F499B11D4A1CFDF0BF"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>(2) <header-in-text level="paragraph" style="OLC">Commission
Authority</header-in-text>.—</quote> and moving the text of such paragraph to
follow the heading of subsection (e);</text>
</subparagraph></paragraph><paragraph commented="no" id="HF8377EF228084DF28583530866722413"><enum>(6)</enum><text>by amending
subsection (h) to read as follows:</text>
<quoted-block id="H5605D917FC86468D867B33D29A383DF3" style="OLC">
<subsection commented="no" id="H84EADD3623924F95A223104CA062CFA0"><enum>(h)</enum><header>Corporate
governance, organization, and management of conflicts of interest</header>
<paragraph commented="no" id="H1CE12A5B6E2B4EE39BD4D033F4EFC118"><enum>(1)</enum><header>Board of
directors</header>
<subparagraph commented="no" id="HA8BF76A53CEF4E9988CAA857CFEA2235"><enum>(A)</enum><header>In
general</header><text>Each nationally recognized statistical rating
organization or its ultimate holding company shall have a board of
directors.</text>
</subparagraph><subparagraph commented="no" id="H6BCAC7DB9D7643469D66265809192CC1"><enum>(B)</enum><header>Independent
directors</header><text>At least <fraction>1/3</fraction> of such board, but no
less than 2 of the members of the board of directors, shall be independent
directors. In order to be considered independent for purposes of this
subsection, a director of a nationally recognized statistical rating
organization may not, other than in his or her capacity as a member of the
board of directors or any committee thereof—</text>
<clause commented="no" id="H90426F2EF5BB48AA90BDCE01E2644214"><enum>(i)</enum><text>accept any
consulting, advisory, or other compensatory fee from the nationally recognized
statistical rating organization; or</text>
</clause><clause commented="no" id="HBE454F1D9D974840803F152B3537F59E"><enum>(ii)</enum><text>be a person
associated with the nationally recognized statistical rating organization or
with any affiliated company thereof.</text>
</clause></subparagraph><subparagraph commented="no" id="H4F2BE72792C642A09E654C42C583AF21"><enum>(C)</enum><header>Compensation and
term</header><text>The compensation of the independent directors 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 exceeding 5 years and shall not be
renewable.</text>
</subparagraph><subparagraph commented="no" id="H95356A7EF8D3479CB712D40E93AD8081"><enum>(D)</enum><header>Duties</header><text>In
addition to the overall responsibility of the board of directors, the board
shall oversee—</text>
<clause commented="no" id="H12EB1D4B4F9A4E7691FF9072955C75F2"><enum>(i)</enum><text>the establishment,
maintenance, and enforcement of policies and procedures for determining credit
ratings;</text>
</clause><clause commented="no" id="HA7D724DD8CA74CEBAC3FEB70BD238606"><enum>(ii)</enum><text>the
establishment, maintenance, and enforcement of policies and procedures to
address, manage, and disclose any conflicts of interest;</text>
</clause><clause commented="no" id="HB1F021937A574A8082C8FF7571C0DE28"><enum>(iii)</enum><text>the
effectiveness of the internal control system with respect to policies and
procedures for determining credit ratings; and</text>
</clause><clause commented="no" id="HD3A85F8C5DB64FDB912E793E91CF9EA9"><enum>(iv)</enum><text>the compensation
and promotion policies and practices of the nationally recognized statistical
rating organization.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H035D77FF45A14150A99E216E3649A9BC"><enum>(2)</enum><header>Organization
policies and procedures</header><text>Each nationally recognized statistical
rating organization shall establish, maintain, and enforce written policies and
procedures reasonably designed, taking into consideration the nature of the
business of the nationally recognized statistical rating organization and
affiliated persons and affiliated companies thereof, to address, manage, and
disclose any conflicts of interest that can arise from such business.</text>
</paragraph><paragraph commented="no" id="HFBA5BC4AA441465B96FA0B06040A626E"><enum>(3)</enum><header>Commission
rules</header><text>The Commission shall issue rules to prohibit, or require
the management and disclosure of, any conflicts of interest relating to the
issuance of credit ratings by a nationally recognized statistical rating
organization, including rules regarding—</text>
<subparagraph commented="no" id="HB15266238B9F4BB59F5A73E0A9AD2648"><enum>(A)</enum><text>conflicts of
interest relating to the manner in which a nationally recognized statistical
rating organization is compensated by the obligor, or any affiliate of the
obligor, for issuing credit ratings or providing related services;</text>
</subparagraph><subparagraph commented="no" id="H683DDC5E11B24DF7B38E3DDFBABD640A"><enum>(B)</enum><text>conflicts of
interest relating to business relationships, ownership interests, and
affiliations of nationally recognized statistical rating organization board
members with obligors, or any other financial or personal interests between a
nationally recognized statistical rating organization, or any person associated
with such nationally recognized statistical rating organization, and the
obligor, or any affiliate of the obligor;</text>
</subparagraph><subparagraph commented="no" id="H0E958CC2E1A64148A05AC2E13B16A2EB"><enum>(C)</enum><text display-inline="yes-display-inline">conflicts of interest relating to any
affiliation of a nationally recognized statistical rating organization, or any
person associated with such nationally recognized statistical rating
organization, with any person who underwrites securities, money market
instruments, or other instruments that are the subject of a credit
rating;</text>
</subparagraph><subparagraph commented="no" id="HA00F873F32D741F3BDBDA3CD889E6EF3"><enum>(D)</enum><text display-inline="yes-display-inline">a requirement that each nationally
recognized statistical rating organization disclose on such organization’s
website a consolidated report at the end of each fiscal year that shows—</text>
<clause commented="no" id="H83708B04DD0C4EA4AE61138C47264E5F"><enum>(i)</enum><text display-inline="yes-display-inline">the percent of net revenue earned by the
nationally recognized statistical rating organization or an affiliate of a
nationally recognized statistical rating organization, or any person associated
with a nationally recognized statistical rating organization, to the extent
determined appropriate by the Commission, for that fiscal year for providing
services and products other than credit rating services to each person who paid
for a credit rating; and</text>
</clause><clause commented="no" id="H8927E120643D478685A97767CF513709"><enum>(ii)</enum><text display-inline="yes-display-inline">the relative standing of each person who
paid for a credit rating that was outstanding as of the end of the fiscal year
in terms of the amount of net revenue earned by the nationally recognized
statistical rating organization attributable to each such person and classified
by the highest 5, 10, 25, and 50 percentiles and lowest 50 and 25
percentiles;</text>
</clause></subparagraph><subparagraph commented="no" id="H02C2EC904CBE49C1BB9FD41FDC3AAF15"><enum>(E)</enum><text>the establishment
of a system of payment for credit ratings issued by each nationally recognized
statistical rating organization that requires that payments are structured in a
manner designed to ensure that the nationally recognized statistical rating
organization conducts accurate and reliable surveillance of credit ratings over
time, as applicable, and that incentives for reliable credit ratings are in
place;</text>
</subparagraph><subparagraph commented="no" id="H3231105470374C3DBA9AF042FF54AC90"><enum>(F)</enum><text display-inline="yes-display-inline">a requirement that a nationally recognized
statistical rating organization disclose with the publication of a credit
rating the type and number of credit ratings it has provided to the person
being rated or affiliates of such person, the fees it has billed for the credit
rating, and the aggregate amount of net revenue earned by the nationally
recognized statistical rating organization in the preceding 2 fiscal years
attributable to the person being rated and its affiliates; and</text>
</subparagraph><subparagraph commented="no" id="H23A590DDF107409EB9A191C9BF81A7A6"><enum>(G)</enum><text>any other
potential conflict of interest, as the Commission determines necessary or
appropriate in the public interest or for the protection of investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC362895D22F146AD9D9BD1275AB969F1"><enum>(4)</enum><header>Look-back
requirement</header>
<subparagraph commented="no" id="H63AE4665F05C433291754D5FF3E0409E"><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="H8A7D2CC0E5C0433495486156D3FF4025"><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="HA84154E4EB334860B9A51EB83DCAF436"><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="H7778D27C871F4439B77250B7C6B0E077"><enum>(B)</enum><header>Review by
commission</header>
<clause commented="no" id="H7F4BCB425D5E45AB888FA80829704D98"><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="H30F9B2DC164548E38E28D607EC7FF20D"><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="H1CF9AA7132F84130B83D0FFA2C7390F9"><enum>(I)</enum><text>not less
frequently than annually; and</text>
</subclause><subclause commented="no" id="H272F96134BBA4C449E313BE00D27EB11"><enum>(II)</enum><text>whenever such
policies are materially modified or amended.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H2A5744B6E023402FBB4237D99742F212"><enum>(5)</enum><header>Report to
Commission on certain employment transitions</header>
<subparagraph commented="no" id="H4FE0A418CF7C40499DA0D6291354423C"><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="H0617B757820642F895B8992591F79495"><enum>(i)</enum><text>was a senior
officer of such organization;</text>
</clause><clause commented="no" id="H76B0A380598C4DE2AF00EC5B75D4FD69"><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="HC424C09DAC9E4B1F905022D761EFF900"><enum>(iii)</enum><text display-inline="yes-display-inline">supervised an employee described in clause
(ii).</text>
</clause></subparagraph><subparagraph commented="no" id="H521C713F439144ECB6D6B8F65A9FEC0F"><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></subsection><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H4D62C31D721C4D0AA4085E8181EFB8B4"><enum>(7)</enum><text>by amending
subsection (j) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF6DBB2DA00704270A9D79C8B44347326" style="OLC">
<subsection commented="no" id="H976C7A82E3764D4BA686BD1BF1AA1F02"><enum>(j)</enum><header>Designation of
compliance officer</header>
<paragraph commented="no" id="HE8453BC173A94D4388D714E4C9CE94A5"><enum>(1)</enum><header>In
general</header><text>Each nationally recognized statistical rating
organization shall designate an individual to serve as a compliance
officer.</text>
</paragraph><paragraph commented="no" id="H243608C144974F29BB6257733FF503F1"><enum>(2)</enum><header>Duties</header><text>The
compliance officer shall—</text>
<subparagraph commented="no" id="HB091E3FCCD97479886ADD8C9566EA980"><enum>(A)</enum><text>report directly to
the board of the nationally recognized statistical rating organization;</text>
</subparagraph><subparagraph commented="no" id="HCCC68A18EB3044BDBCB6B8D688EDE1F5"><enum>(B)</enum><text>review compliance
with policies and procedures to manage conflicts of interest and assess the
risk that the compliance (or lack of such compliance) may compromise the
integrity of the credit rating process;</text>
</subparagraph><subparagraph commented="no" id="H3BCC761890214C81A98D9BB4BB837716"><enum>(C)</enum><text display-inline="yes-display-inline">review compliance with the internal control
system with respect to the procedures and methodologies for determining credit
ratings, including qualitative methodologies and quantitative inputs used in
the rating process, and assess the risk that such internal control system is
reasonably designed to ensure the integrity and quality of the credit rating
process;</text>
</subparagraph><subparagraph commented="no" id="H60A996935DEE44FEAA5877C0D3CA7A1C"><enum>(D)</enum><text>in consultation
with the board of the nationally recognized statistical rating organization,
resolve any conflicts of interest that may arise;</text>
</subparagraph><subparagraph commented="no" id="H52DF10D5433845CAB19988C174031DF0"><enum>(E)</enum><text>be responsible for
administering the policies and procedures required to be established pursuant
to this section;</text>
</subparagraph><subparagraph commented="no" id="H7B6345D7CD6C4744921EB866483D7C16"><enum>(F)</enum><text>ensure compliance
with securities laws and the rules and regulations issued thereunder, including
rules prescribed by the Commission pursuant to this section; and</text>
</subparagraph><subparagraph commented="no" id="HFAA55BC1171B4E8A8E8843DDC6ABCAD4"><enum>(G)</enum><text display-inline="yes-display-inline">establish procedures—</text>
<clause commented="no" id="H33EC48708EA241AB87DD17F3830CE393"><enum>(i)</enum><text>for the receipt,
retention, and treatment of complaints regarding credit ratings, models,
methodologies, and compliance with the securities laws and the policies and
procedures required under this section;</text>
</clause><clause commented="no" id="HC90E98EBD5604E508C60018B458CED32"><enum>(ii)</enum><text display-inline="yes-display-inline">for the receipt, retention, and treatment
of confidential, anonymous complaints by employees, obligors, issuers, and
investors;</text>
</clause><clause commented="no" id="HD4B86AF904B94C56ACB3D44FC18A1E70"><enum>(iii)</enum><text>for the
remediation of non-compliance issues found during compliance office reviews,
the reviews required under paragraph (7), internal or external audit findings,
self-reported errors, or through validated complaints; and</text>
</clause><clause commented="no" id="H9E27DB6723CA40FC8E559AC254DF0731"><enum>(iv)</enum><text display-inline="yes-display-inline">designed so that ratings that the
nationally recognized statistical rating organization disseminates reflect
consideration of all information in a manner generally consistent with the
nationally recognized statistical rating organization’s published rating
methodology, including information which is provided, received, or otherwise
obtained from obligor, issuer and non-issuer sources, such as investors, the
media, and other interested or informed parties.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H162DE602477B4B7EBFB4688A585461C3"><enum>(3)</enum><header>Limitations</header><text>The
compliance officer shall not, while serving in that capacity—</text>
<subparagraph commented="no" id="HACD2CF8F456B428EAFB9F94EEC760833"><enum>(A)</enum><text>determine credit
ratings;</text>
</subparagraph><subparagraph commented="no" id="H3B7A873AC6E947DC8C90E77BBE7CB459"><enum>(B)</enum><text display-inline="yes-display-inline">participate in the establishment of the
procedures and methodologies or the qualitative methodologies and quantitative
inputs used to determine credit ratings;</text>
</subparagraph><subparagraph commented="no" id="HDDC1A0BD8A2B45F498C32E3595045506"><enum>(C)</enum><text>perform marketing
or sales functions; or</text>
</subparagraph><subparagraph commented="no" id="H137324D8B0A14C2492C30CCB05BE90E8"><enum>(D)</enum><text>participate in
establishing compensation levels, other than for employees working for the
compliance officer.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD7ED8C6E71D04F9CBDE310086D31C195"><enum>(4)</enum><header>Annual reports
required</header><text>The compliance officer shall annually prepare and sign a
report on the compliance of the nationally recognized statistical rating
organization with the securities laws and such organization’s internal policies
and procedures, including its code of ethics and conflict of interest policies,
in accordance with rules prescribed by the Commission. Such compliance report
shall accompany the financial reports of the nationally recognized statistical
rating organization that are required to be filed with the Commission pursuant
to this section and shall include a certification that, under penalty of law,
the report is accurate and complete.</text>
</paragraph><paragraph commented="no" id="H89C7499A675A47C78C5FA274E0FB43B5"><enum>(5)</enum><header>Compensation</header><text display-inline="yes-display-inline">The compensation of the compliance officer
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 the officer’s judgment.</text>
</paragraph></subsection><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HDEA18E09669D4887A0FC3E1AFAA2A364"><enum>(8)</enum><text>in subsection
(k)—</text>
<subparagraph commented="no" id="H83CD4E089D0742A981526CF59782B9C5"><enum>(A)</enum><text>by striking
<quote>, on a confidential basis,</quote>;</text>
</subparagraph><subparagraph commented="no" id="H5CB900EECE0F4BF2BCD70EDFFF7EF730"><enum>(B)</enum><text>by striking
<quote>furnish to</quote> and inserting <quote>file with</quote>;</text>
</subparagraph><subparagraph commented="no" id="HA90F87E4A2DB4511B0F52F64501270C6"><enum>(C)</enum><text>by striking
<quote>Each nationally</quote> and inserting the following:</text>
<quoted-block id="H2B59AB07CED249209F914B26F702323C" style="OLC">
<paragraph commented="no" id="H8A7F43B2FBF743D7B43C674B4D892C17"><enum>(1)</enum><header>In
general</header><text>Each nationally</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H83791EA501404AECB52F78A77748BBF4"><enum>(D)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HF1E3A2CCD1F9472DA26AEB3BA0F4DD38" style="OLC">
<paragraph commented="no" id="H2D5AD4A798CA420780C6FEED0C4C2DE6"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The Commission may treat as confidential
any information provided by a nationally recognized statistical rating
organization under this section consistent with applicable Federal laws or
Commission
rules.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H2A7127B7AA9F4D4A87EC4F46B12F5276"><enum>(9)</enum><text display-inline="yes-display-inline">in subsection (l)(2)(A)(i), by striking
<quote>furnished</quote> and inserting <quote>filed</quote>;</text>
</paragraph><paragraph commented="no" id="H119762E94624445EB3A69CDBED2C14FA"><enum>(10)</enum><text>by amending
subsection (p) to read as follows:</text>
<quoted-block id="H65C0DCADE2D947EE87BA388719072C57" style="OLC">
<subsection commented="no" id="HD7F22E4ECB474A04ACE5D784AEB0BF7B"><enum>(p)</enum><header>Establishment of
SEC office</header>
<paragraph commented="no" id="H132F8D4ADE374C299C1FC5A3A374BC58"><enum>(1)</enum><header>In
general</header><text>The Commission shall establish an office that administers
the rules of the Commission with respect to the practices of nationally
recognized statistical rating organizations.</text>
</paragraph><paragraph commented="no" id="H886B63B2B7BA46C48BAED73F185D7AB8"><enum>(2)</enum><header>Staffing</header><text display-inline="yes-display-inline">The office of the Commission established
under this subsection shall be staffed sufficiently to carry out fully the
requirements of this section.</text>
</paragraph><paragraph commented="no" id="H6E64422614494CE7A566849668F45188"><enum>(3)</enum><header>Rulemaking
authority</header><text>The Commission shall—</text>
<subparagraph commented="no" id="H94DFF2AE4D7843658DD1F3B9FC530CCA"><enum>(A)</enum><text>establish, by
rule, fines and other penalties for any nationally recognized statistical
rating organization that violates the applicable requirements of this title;
and</text>
</subparagraph><subparagraph commented="no" id="H95DC00DBA06545EBAFFF95F48067FC28"><enum>(B)</enum><text>issue such rules
as may be necessary to carry out this section with respect to nationally
recognized statistical rating
organizations.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H2EB29A53FC5549CFAC005A9D5D1B084D"><enum>(11)</enum><text>by adding after
subsection (p) the following new subsections:</text>
<quoted-block id="HCF142955B24C48C7A34FF767724C2664" style="OLC">
<subsection commented="no" id="HA4264CA2F4674CDE89DFB56D9C8B1E0F"><enum>(q)</enum><header>Transparency of
ratings performance</header>
<paragraph commented="no" id="H7CB40FCEAB4E4ACDAAD1888F026DA4A4"><enum>(1)</enum><header>Rulemaking
required</header><text>The Commission shall, by rule, require each nationally
recognized statistical rating organization to publicly disclose information on
initial ratings and subsequent changes to such ratings for the purpose of
providing a gauge of the performance of ratings and allowing investors to
compare performance of ratings by different nationally recognized statistical
rating organizations.</text>
</paragraph><paragraph commented="no" id="HC87CEA227AB04E55B450C5FA2C202A22"><enum>(2)</enum><header>Content</header><text>The
rules of the Commission under this subsection shall require, at a minimum,
disclosures that—</text>
<subparagraph commented="no" id="HA8EA09E3991640C6ACFE3464573DDE77"><enum>(A)</enum><text>are comparable
among nationally recognized statistical rating organizations, so that investors
can compare rating performance across rating organizations;</text>
</subparagraph><subparagraph commented="no" id="H2762612F125E46DFB93A503578FFAF72"><enum>(B)</enum><text>are clear and
informative for a wide range of investor sophistication;</text>
</subparagraph><subparagraph commented="no" id="H7AF43F3A5F6B4022A9698158FE43165C"><enum>(C)</enum><text>include
performance information over a range of years and for a variety of classes of
credit ratings, as determined by the Commission;</text>
</subparagraph><subparagraph commented="no" id="H6B761956D4284ED3AFF4BFD8C8F8BDAF"><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 written
form when requested by investors; and</text>
</subparagraph><subparagraph commented="no" id="H859D116F219640E1BC547116358D58BC"><enum>(E)</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 commented="no" id="H6A6F3293C265496B9C7F9125BC71E83B"><enum>(r)</enum><header>Credit ratings
methodologies</header>
<paragraph commented="no" id="HFCC2096C545B4B7AA2C99D1DAF8B8C8B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
prescribe rules, in the public interest and for the protection of investors,
that require each nationally recognized statistical rating organization to
establish, maintain, and enforce written procedures and methodologies and an
internal control system with respect to such procedures and methodologies that
are reasonably designed to—</text>
<subparagraph commented="no" id="H72F8375B1D1A4A68B027E9AE20B176A7"><enum>(A)</enum><text display-inline="yes-display-inline">ensure that credit ratings are determined
using procedures and methodologies, including qualitative methodologies and
quantitative inputs that are determined in accordance with the policies and
procedures of the nationally recognized statistical rating organization for
developing and modifying credit rating procedures and methodologies;</text>
</subparagraph><subparagraph commented="no" id="H79F7DAF14ADC43A597DE6EA909D57D21"><enum>(B)</enum><text display-inline="yes-display-inline">ensure that when major changes to credit
rating procedures and methodologies, including to qualitative methodologies and
quantitative inputs, are made, that the changes are applied consistently to all
credit ratings to which the changed procedures and methodologies apply and, to
the extent the changes are made to credit rating surveillance procedures and
methodologies, they are applied to current credit ratings within a time period
to be determined by the Commission by rule, and that the reason for the change
is publicly disclosed;</text>
</subparagraph><subparagraph commented="no" id="H74D8C3170A654276AD6361C5D8556BDE"><enum>(C)</enum><text display-inline="yes-display-inline">notify persons who have access to the
credit ratings of the nationally recognized statistical rating organization,
regardless of whether they are made readily accessible for free or a reasonable
fee, of the procedure or methodology, including qualitative methodologies and
quantitative inputs, used with respect to a particular credit rating;</text>
</subparagraph><subparagraph commented="no" id="H00B8FAA100F042E99D64D188F82AE939"><enum>(D)</enum><text display-inline="yes-display-inline">notify persons who have access to the
credit ratings of the nationally recognized statistical rating organization,
regardless of whether they are made readily accessible for free or a reasonable
fee, when a change is made to a procedure or methodology, including to
qualitative methodologies and quantitative inputs, or an error is identified in
a procedure or methodology that may result in credit rating actions, and the
likelihood of the change resulting in current credit ratings being subject to
rating actions; and</text>
</subparagraph><subparagraph commented="no" id="H71B28B2457D543488917FF7F36E81E37"><enum>(E)</enum><text display-inline="yes-display-inline">use credit rating symbols that distinguish
credit ratings for structured products from credit ratings for other products
that the Commission determines appropriate or necessary in the public interest
and for the protection of investors.</text>
</subparagraph></paragraph><paragraph commented="no" id="H52051182CF7E4AE6BF7F0D3C1BF115D8"><enum>(2)</enum><header>Rating clarity
and consistency</header>
<subparagraph commented="no" id="H351C9E509038413C9541190F0018F1D6"><enum>(A)</enum><header>Commission
obligation</header><text>Subject to subparagraphs (B) and (C), the Commission
shall require, by rule, each nationally recognized statistical rating
organization to establish, maintain, and enforce written policies and
procedures reasonably designed—</text>
<clause commented="no" id="H52421719D7F14AB5AA02F018CC2351C6"><enum>(i)</enum><text>with respect to
credit ratings of securities and money market instruments, to assess the risk
that investors in securities and money market instruments may not receive
payment in accordance with the terms of such securities and instruments;</text>
</clause><clause commented="no" id="H2BC41AEE421A4CB9B7374BCC7C93675F"><enum>(ii)</enum><text>to define clearly
any credit rating symbol used by that organization; and</text>
</clause><clause commented="no" id="H52E097A1673946938676F3ACBC48B6B0"><enum>(iii)</enum><text>to apply such
credit rating symbol in a consistent manner for all types of securities and
money market instruments.</text>
</clause></subparagraph><subparagraph commented="no" id="H2D12EF40814943168C13572BE8FA4FCD"><enum>(B)</enum><header>Additional
credit factors</header><text>Nothing in subparagraph (A)—</text>
<clause commented="no" id="H1356410C50FC4AB5AD57EF82B0E4DA76"><enum>(i)</enum><text>prohibits a
nationally recognized statistical rating organization from using additional
credit factors that are documented and disclosed by the organization and that
have a demonstrated impact on the risk an investor in a security or money
market instrument will not receive repayment in accordance with the terms of
issuance;</text>
</clause><clause commented="no" id="H967D96D9A465473BB2530340B1D4BEEA"><enum>(ii)</enum><text>prohibits a
nationally recognized statistical rating organization from considering credit
factors that are unique to municipal securities; or</text>
</clause><clause commented="no" id="HA3FABDD335C94A07B099BFB7B0C0B082"><enum>(iii)</enum><text display-inline="yes-display-inline">prohibits a nationally recognized
statistical rating organization from using an additional symbol with respect to
the ratings described in subparagraph (A)(i) for the purpose of distinguishing
the ratings of a certain type of security or money market instrument from
ratings of any other types of securities or money market instruments.</text>
</clause></subparagraph><subparagraph commented="no" id="H92611B7AC7DE4FDBA68BF31CB563F254"><enum>(C)</enum><header>Complementary
ratings</header><text>The Commission shall not impose any requirement under
subparagraph (A) that prevents nationally recognized statistical rating
organizations from establishing ratings that are complementary to the ratings
described in subparagraph (A)(i) and that are created to measure a discrete
aspect of the security’s or instrument’s risk.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H220B33EC000141E3A6B2C6782C0EAF63"><enum>(s)</enum><header>Transparency of
credit rating methodologies and information reviewed</header>
<paragraph commented="no" id="H3EB2D5AF51DE41B7AE17446C9C62A7A9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall
require, by rule, a nationally recognized statistical rating organization to
include with the publication of each credit rating regardless of whether the
credit rating is made readily accessible for free or a reasonable fee a form
that discloses information about the assumptions underlying the procedures and
methodologies used, and the data relied on, to determine the credit rating in
the format prescribed in paragraph (2) and containing the information described
in paragraph (3).</text>
</paragraph><paragraph commented="no" id="HEC62C7D1D607403FA5B15065827F4F65"><enum>(2)</enum><header>Format</header><text>The
Commission shall prescribe a form for use under paragraph (1) that—</text>
<subparagraph commented="no" id="H366C9E2959AB4C5E941FBD6DB3AB01AD"><enum>(A)</enum><text>is designed in a
user-friendly and helpful manner for investors to understand the information
contained in the report;</text>
</subparagraph><subparagraph commented="no" id="HFBEBD1560DAC4034B34B987C488C0B3E"><enum>(B)</enum><text>requires the
nationally recognized statistical rating organization to provide the content,
as required by paragraph (3), in a manner that is directly comparable across
securities; and</text>
</subparagraph><subparagraph commented="no" id="H6D63CFA6327E4B3D85FCAE3C3FB33023"><enum>(C)</enum><text display-inline="yes-display-inline">the nationally recognized statistical
rating organization certifies the information on the form as true and
accurate.</text>
</subparagraph></paragraph><paragraph commented="no" id="H97F37929EA194FA282D714A25849EFC3"><enum>(3)</enum><header>Content</header><text display-inline="yes-display-inline">The Commission shall prescribe a form that
requires a nationally recognized statistical rating organization to disclose
—</text>
<subparagraph commented="no" id="H48DD4C37F1A84EC993AC00BAE58D9BAD"><enum>(A)</enum><text display-inline="yes-display-inline">the main assumptions included in
constructing procedures and methodologies, including qualitative methodologies
and quantitative inputs and assumptions about the correlation of defaults
across underlying assets used in rating certain structured products;</text>
</subparagraph><subparagraph commented="no" id="H45386CBD041845E285051A28C91143A0"><enum>(B)</enum><text>the potential
shortcomings of the credit ratings, and the types of risks not measured in the
credit ratings that the nationally recognized statistical rating organization
is not commenting on, such as liquidity, market, and other risks;</text>
</subparagraph><subparagraph commented="no" id="HE61CDBF61040490BB8F066DF47334ECB"><enum>(C)</enum><text>information on the
certainty of the rating, including information on the reliability, accuracy,
and quality of the data relied on in determining the ultimate credit rating and
a statement on the extent to which key data inputs for the credit rating were
reliable or limited, including any limits on the reach of historical data,
limits in accessibility to certain documents or other forms of information that
would have better informed the credit rating, and the completeness of certain
information considered;</text>
</subparagraph><subparagraph commented="no" id="H0B065DE5B73449DB91386CF81B5A00C9"><enum>(D)</enum><text>whether and to
what extent third party due diligence services have been utilized, and a
description of the information that such third party reviewed in conducting due
diligence services;</text>
</subparagraph><subparagraph commented="no" id="H00F77D60D5034ED9ACD4A68E043BD6F9"><enum>(E)</enum><text>a description of
relevant data about any obligor, issuer, security, or money market instrument
that was used and relied on for the purpose of determining the credit
rating;</text>
</subparagraph><subparagraph commented="no" id="H1F6E1EA6237343BE83FF95988E32944F"><enum>(F)</enum><text>a statement
containing an overall assessment of the quality of information available and
considered in producing a credit rating for a security in relation to the
quality of information available to the nationally recognized statistical
rating organization in rating similar obligors, securities, or money market
instruments;</text>
</subparagraph><subparagraph commented="no" id="H7E93581A7B764B988607B04904B8C0E4"><enum>(G)</enum><text>an explanation or
measure of the potential volatility for the credit rating, including any
factors that might lead to a change in the credit rating, and the extent of the
change that might be anticipated under different conditions;</text>
</subparagraph><subparagraph commented="no" id="H0156E2C2A8AB4774AD11B4D170A5BAA7"><enum>(H)</enum><text>information on the
content of the credit rating, including—</text>
<clause commented="no" id="HFB767F4D1C2D4BD7AABCD5D423E7474A"><enum>(i)</enum><text>the expected
default probability; and</text>
</clause><clause commented="no" id="H1161E4B26EF0488E99884DB923847348"><enum>(ii)</enum><text>the loss given
default;</text>
</clause></subparagraph><subparagraph commented="no" id="HDD61A09118F4448CB229D337969E427C"><enum>(I)</enum><text display-inline="yes-display-inline">information on the sensitivity of the
rating to assumptions made by the nationally recognized statistical rating
organization, including—</text>
<clause commented="no" id="HED02A6A951CF4BF48AA06C8E868571CE"><enum>(i)</enum><text display-inline="yes-display-inline">5 assumptions made in the ratings process
that, without accounting for any other factor, would have the greatest impact
on a rating if such assumptions were proven false or inaccurate; and</text>
</clause><clause commented="no" id="HEF43089303364A91A728DB5BBCE5D1E8"><enum>(ii)</enum><text display-inline="yes-display-inline">an analysis, using concrete examples, on
how each of the 5 assumptions identified under clause (i) impacts a
rating.</text>
</clause></subparagraph><subparagraph commented="no" id="H0DC401BFBFAC4FDB83F8C2CA05970854"><enum>(J)</enum><text>where 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>
</subparagraph><subparagraph commented="no" id="H7B61ACE7CBB14288963A52D6918FF786"><enum>(K)</enum><text>such additional
information as may be required by the Commission.</text>
</subparagraph></paragraph><paragraph commented="no" id="HBE5F250B7C1D4176894D4E38B51E6009"><enum>(4)</enum><header>Due diligence
services</header><text display-inline="yes-display-inline"></text>
<subparagraph commented="no" id="HD4E055497953498C8C6F8A1ABA1261BF"><enum>(A)</enum><header>Certification
required</header><text display-inline="yes-display-inline">In any case in which
third-party due diligence services are employed by a nationally recognized
statistical rating organization or an issuer, underwriter, or sponsor in
connection with the issuance of a credit rating, the firm providing the due
diligence services shall provide to the nationally recognized statistical
rating organization written certification of such due diligence, which shall be
subject to review by the Commission, and the issuer, underwriter, or sponsor
shall provide any reports issued by the provider of such due diligence services
to the nationally recognized statistical rating organization.</text>
</subparagraph><subparagraph commented="no" id="HF2DA6E1CB5B144F8A8BE27C3D9776A60"><enum>(B)</enum><header>Format and
content</header><text>The Commission shall establish the appropriate format and
content for written certifications required under subparagraph (A) to ensure
that providers of due diligence services have conducted a thorough review of
data, documentation, and other relevant information necessary for the
nationally recognized statistical rating organization to provide a reliable
rating.</text>
</subparagraph><subparagraph commented="no" id="HECF9EDAA42A64C16A0B02736DD22D6FB"><enum>(C)</enum><header>Disclosure of
certification</header><text display-inline="yes-display-inline">The Commission
shall adopt rules requiring a nationally recognized statistical rating
organization to disclose to persons who have access to the credit ratings of
the nationally recognized statistical rating organization regardless of whether
they are made readily accessible for free or a reasonable fee the certification
described in subparagraph (A) with the publication of the applicable credit
rating in a manner that may permit the persons to determine the adequacy and
level of due diligence services provided by the third party.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H4253B69C4FB54FDFAFF46A456FB8DB91"><enum>(t)</enum><header>Prohibited
activities</header><text>Beginning 180 days from the date of enactment of the
Accountability, Reliability, and Transparency in Rating Agencies Act, it shall
be unlawful for a nationally recognized statistical rating organization, or an
affiliate of a nationally recognized statistical rating organization, or any
person associated with a nationally recognized statistical rating organization,
that provides a credit rating for an issuer, underwriter, or placement agent of
a security to provide any non-rating service, including—</text>
<paragraph commented="no" id="H072F3C5EACBE4488A99E45D3C25D52ED"><enum>(1)</enum><text>risk management
advisory services;</text>
</paragraph><paragraph commented="no" id="HD65D8FDEAF4848BE9C9DB482F2AC7E03"><enum>(2)</enum><text>advice or
consultation relating to any merger, sales, or disposition of assets of the
issuer;</text>
</paragraph><paragraph commented="no" id="HE35AC7A69E9F4741AD2811C893068CC2"><enum>(3)</enum><text>ancillary
assistance, advice, or consulting services unrelated to any specific credit
rating issuance; and</text>
</paragraph><paragraph commented="no" id="H1571E66785434C23BD4A16CF1FE341E7"><enum>(4)</enum><text>such further
activities or services as the Commission may determine as necessary or
appropriate in the public interest or for the protection of
investors.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="HA279FF34EAAD4A44B6CA1FE785C18064"><enum>6003.</enum><header>Standards for
private actions</header>
<subsection commented="no" id="H6FDDC892CD94484C8AB7017C17451762"><enum>(a)</enum><header>In
general</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 by
inserting before the period at the end of the following: <quote>, and in the
case of an action brought under this title for money damages against a
nationally recognized statistical rating organization, it shall be sufficient
for purposes of pleading any required state of mind for purposes of such action
that the complaint shall state with particularity facts giving rise to a strong
inference that the nationally recognized statistical rating organization
knowingly or recklessly violated the securities laws</quote>.</text>
</subsection><subsection commented="no" id="H8DC2B12CB5B84498955AFCF0ECF43DF1"><enum>(b)</enum><header>Pleading
standard</header><text display-inline="yes-display-inline">Section 15E(m) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o-7(m)) amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H123517F45CF4477B9D26FE3C1203BA6A" style="OLC">
<subsection commented="no" id="H69957BEC8F4C44A79FC70BCDE4CE57F9"><enum>(m)</enum><header>application of
enforcement provisions; pleading standard in private rights of
action</header><text display-inline="yes-display-inline">Statements made by
nationally recognized statistical rating organizations shall not be deemed
forward looking statements for purposes of section 21E. In any private right of
action commenced against a nationally recognized statistical rating
organization under this title, the same pleading standards with respect to
knowledge and recklessness shall apply to the nationally recognized statistical
rating organization as would apply to any other person in the same or a similar
private right of action against such
person.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="HB5C47D2408EA4F22BF4799A9979AD009"><enum>6004.</enum><header>Issuer
disclosure of preliminary ratings</header><text display-inline="no-display-inline">The Securities and Exchange Commission shall
adopt rules under authority of the Securities Act of 1933 (15 U.S.C. 77a, et
seq.) to require issuers to disclose preliminary credit ratings received from
nationally recognized statistical rating agencies on structured products and
all forms of corporate debt.</text>
</section><section commented="no" id="H050A1FDF95A74F6297A27A3BA110A89F"><enum>6005.</enum><header>Change to
designation</header><text display-inline="no-display-inline">The Securities Act
of 1933 and the Securities Exchange Act of 1934 are each amended by striking
<quote>nationally recognized statistical rating</quote> each place it appears
and inserting <quote>nationally registered statistical rating</quote>.</text>
</section><section commented="no" id="H1F77621190BC44599A6550F1A9F024C4"><enum>6006.</enum><header>Timeline for
regulations</header><text display-inline="no-display-inline">Unless otherwise
specified in this subtitle, the Securities and Exchange Commission shall adopt
rules and regulations, as required by the amendments made by this subtitle, not
later than 365 days after the date of enactment.</text>
</section><section commented="no" id="H36287618F44641ED9B7041B7B7D9F8AF"><enum>6007.</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 commented="no" id="H5997055DA4CD48DEBF3D627C52D5EFB0"><enum>6008.</enum><header>Advisory
Board</header>
<subsection commented="no" id="H41F5CFE9C2D94C69B85D69A49B72999E"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
the enactment of this subtitle, the Securities and Exchange Commission shall
establish an advisory board to be known as the Credit Ratings Agency Advisory
Board (in this section referred to as <quote>the Board</quote>).</text>
</subsection><subsection commented="no" id="H772DC1A90543477081EBFF5D83711F97"><enum>(b)</enum><header>Appointment and
terms of service</header><text>The Board shall consist of 7 members appointed
by the Commission, no more than 2 of whom may be former employees of a credit
rating agency. Members of the Board shall be prominent individuals of integrity
and reputation who have a demonstrated commitment to the interests of investors
and the public, and an understanding of the role that credit ratings play to a
broad range of investors. Terms of service shall be staggered as determined by
the Commission.</text>
</subsection><subsection commented="no" id="HA3966A7151934C749949AD2761BC9DFD"><enum>(c)</enum><header>Duties</header><text>The
Board shall—</text>
<paragraph commented="no" id="H1DB6DAAADE65483E85002730D2788CEB"><enum>(1)</enum><text>advise the
Commission concerning the rules and regulations required by the amendments made
by this subtitle;</text>
</paragraph><paragraph commented="no" id="H6F78959E4CC34F6B994EDFB22EA43F32"><enum>(2)</enum><text display-inline="yes-display-inline">ensure that the Commission properly and
fully executes its oversight functions and responsibilities with the respect to
nationally recognized statistical rating organizations and individual
participants; and</text>
</paragraph><paragraph commented="no" id="H9A2149EF0CC1402EAF34AE7D8B52181C"><enum>(3)</enum><text display-inline="yes-display-inline">issue an annual report to Congress
detailing its work and recommending any additional Congressional actions
necessary to aid the Commission and such additional reports from time to time
as appropriate when it feels that the Commission is not properly executing its
oversight functions.</text>
</paragraph></subsection></section><section commented="no" id="H5007444185134269B1448800DE6F52DE"><enum>6009.</enum><header>Removal of
statutory references to credit ratings</header>
<subsection commented="no" id="H5036331D50324AB88CB1BD3564FC6544"><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="H330B178D961240E19A2E64136B53F45A"><enum>(1)</enum><text>in section
28(d)—</text>
<subparagraph commented="no" id="HA38B1CE8D6FE498780C2F28C607E1A77"><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="HA936380D0A1A4F149C3A2339ADD06A01"><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="H77D518F4EBE1494DB21F20CACB796387"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>not of investment grade</quote>;</text>
</subparagraph><subparagraph commented="no" id="H20E08F2554984EC397F421CEA7327448"><enum>(D)</enum><text>by striking
paragraph (3) and redesignating paragraph (4) as paragraph (3); and</text>
</subparagraph><subparagraph commented="no" id="H5D16EB90B5C04C66B6F8927E0DFE6202"><enum>(E)</enum><text>in paragraph (3)
(as so redesignated)—</text>
<clause commented="no" id="H7FE2BF40146A450090A41AC3C8DD78E5"><enum>(i)</enum><text>by striking
subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively; and</text>
</clause><clause commented="no" id="H5CB477DF557244F2B605D60EC1E1B183"><enum>(ii)</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>;</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H95B499D4063F48E7836E824F2156BA37"><enum>(2)</enum><text>in section
28(e)—</text>
<subparagraph commented="no" id="H9DBEDDEE4EC0488389E174B81BE88676"><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="HDAD08AE3C8D8488494C8011A2774AFCA"><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="H029A36CCB26945BBA1CA55A4E4F6219C"><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>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="H5E70538D27684D189350E8F9C9294388"><enum>(3)</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></subsection><subsection commented="no" id="H107A056DDFBA4952AC03026EAC529E5E"><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—</text>
<paragraph commented="no" id="H05174101499F4ABDA60B1F5FD8224D12"><enum>(1)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="OLC">by
rating organization</header-in-text></quote>; and</text>
</paragraph><paragraph commented="no" id="HB13AFAD0BC464F399597803C49C75088"><enum>(2)</enum><text>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>
</paragraph></subsection><subsection commented="no" id="H85657FA889454F64816E9B7E3F9E4822"><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 that the Commission shall adopt</quote>.</text>
</subsection><subsection commented="no" id="HBF1556D0EE7D4F278B08F362DC436984"><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="HE9383C787D7F4BA0B624725D8254B5F7"><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="H77F6C9783BF342C6A72928760967CFB4"><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="HDD3B78E78EC946DFBF26D47668135DD9"><enum>(3)</enum><text>subsection (a)(3),
by amending subparagraph (A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD738D7369BAB4001865BD0BAFCC851FF" style="OLC">
<subparagraph commented="no" id="HC9C26B269A8D41A3B1D3BCFAD198887F"><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="H2006EFA33778490498F4E16D3721BE15"><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="HC48FDB4F1C7544B9B830514DCA0E45EE"><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="H8DC50A3032BF449792940D35F900FB59"><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="HD9E585056FD74A77A12729FF17A62C10"><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 defined by the
Commission</quote>; and</text>
</paragraph><paragraph commented="no" id="H84AC4D2F80334BADAEA7F7689B684607"><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 defined by the Commission</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H5323FF49B5724ECDB93AAD7B50B972FE"><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>rating</quote> and
inserting <quote>worthiness</quote>.</text>
</subsection><subsection commented="no" id="HB352F61017C34A29BF2DEFFE854B5574"><enum>(g)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect after
the end of the 6-month period beginning on the date of the enactment of this
subtitle.</text>
</subsection></section><section commented="no" id="HFB928092F980433DB3C142B92B4B8EA6"><enum>6010.</enum><header>Review of
reliance on ratings</header>
<subsection commented="no" id="H8FB707BAAD0748E78B56FD6339DBCAC1"><enum>(a)</enum><header>Agency
Review</header>
<paragraph commented="no" id="HC7B59CD994CA4F97B932370C85BFCEB3"><enum>(1)</enum><header>Review</header><text>Not
later than 1 year after the date of the enactment of this subtitle, each
Federal agency listed in paragraph (4) shall, to the extent applicable,
review—</text>
<subparagraph commented="no" id="HEEAD43920C9343629D0DF8651C401C23"><enum>(A)</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>
</subparagraph><subparagraph commented="no" id="H58D99E9C6F4146FB8852D704AF3F35BB"><enum>(B)</enum><text display-inline="yes-display-inline">any references to or requirements in such
regulations regarding credit ratings.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC1B07AFF23AF4403A395D93675D4EDDE"><enum>(2)</enum><header>Modifications
required</header><text>Each such agency shall modify any such regulations
identified by the review conducted under paragraph (1) 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>
</paragraph><paragraph commented="no" id="H45092B4AECB04C008F08A45CAA84A0BC"><enum>(3)</enum><header>Report</header><text>Upon
conclusion of the review required under paragraph (1), each Federal agency
listed in paragraph (4) shall transmit a report to Congress containing a
description of any modification of any regulation such agency made pursuant to
paragraph (2).</text>
</paragraph><paragraph commented="no" id="HD3F206C41B444FA1979E5C8862BE5232"><enum>(4)</enum><header>Applicable
agencies</header><text>The agencies required to conduct the review and report
required by this subsection are—</text>
<subparagraph commented="no" id="H8E7548A438E544279DCAE4D387C77400"><enum>(A)</enum><text display-inline="yes-display-inline">the Securities and Exchange
Commission;</text>
</subparagraph><subparagraph commented="no" id="HBD9C73F3E383456AB731791CBFEE2209"><enum>(B)</enum><text>the Federal
Deposit Insurance Corporation;</text>
</subparagraph><subparagraph commented="no" id="H9CDA2CD3C85A4B20954230D926768A10"><enum>(C)</enum><text>the Office of
Thrift Supervision;</text>
</subparagraph><subparagraph commented="no" id="HD8892CEA6EAC49D39A43A8A252C63E5D"><enum>(D)</enum><text>the Office of the
Comptroller of the Currency;</text>
</subparagraph><subparagraph commented="no" id="HDA2D39DCD1F5408B8B7370417516E0E2"><enum>(E)</enum><text>the Board of
Governors of the Federal Reserve;</text>
</subparagraph><subparagraph commented="no" id="H697F9BF9BDCB41CC86A002EB507C0AFF"><enum>(F)</enum><text>the National
Credit Union Administration; and</text>
</subparagraph><subparagraph commented="no" id="H7F68340C503643638A4D98ED235B5B69"><enum>(G)</enum><text>the Federal
Housing Finance Agency.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H932BE6F0C12F477E85F9801189EF1948"><enum>(b)</enum><header>GAO review of
other agencies</header>
<paragraph commented="no" id="HEE5E48333E724FC7AB8DB14BAF971344"><enum>(1)</enum><header>Review</header><text>The
Comptroller General shall conduct a comprehensive review of the use of credit
ratings by Federal agencies other than those listed in subsection (a)(3),
including an analysis of the provisions of law or regulation applicable to each
such agency that refer to and require the use of credit ratings by the agency,
and the policies and practices of each agency with respect to credit
ratings.</text>
</paragraph><paragraph commented="no" id="HCD2047908C4642188478E84E9EBA626F"><enum>(2)</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 shall transmit to Congress
a report on the findings of the study conducted pursuant to paragraph (1),
including recommendations for any legislation or rulemaking necessary or
appropriate in order for such agencies to reduce their reliance on credit
ratings.</text>
</paragraph></subsection></section><section commented="no" id="H739B8121FA394E6181EE724913C748D0"><enum>6011.</enum><header>Publication of
rating histories on the EDGAR system</header><text display-inline="no-display-inline">Not later than 180 days after the date of
the enactment of this subtitle, the Securities and Exchange Commission shall
revise its rules in section 240.17g-2(a) and (d) of title 17, Code of Federal
Regulations, to require that the random sample of ratings histories of credit
ratings required under such rules to be disclosed on the website of a
nationally recognized statistical rating organization also be provided to the
Commission in a format consistent with publication by the Commission on the
EDGAR system.</text>
</section><section commented="no" id="H0C2724004A7044ABBBF33ECDBCC1ED88"><enum>6012.</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 commented="no" id="H5EDCC079F63B4CDFB6ED1B3D132291E5"><enum>6013.</enum><header>Studies</header>
<subsection commented="no" id="HFBEA49BD0D024D92BDEB87DE2BF777F4"><enum>(a)</enum><header>GAO
Study</header>
<paragraph commented="no" id="HDC9F21B32EEA426A9C305CA44F120B8A"><enum>(1)</enum><header>In
general</header><text>The Comptroller General shall conduct a study of—</text>
<subparagraph commented="no" id="H7581D435729347C28955F5A67E88C6F7"><enum>(A)</enum><text>the implementation
of this subtitle and the amendments made by this subtitle by the Securities and
Exchange Commission;</text>
</subparagraph><subparagraph commented="no" id="HDC0056A6CFA244048B10C2F3BE650155"><enum>(B)</enum><text>the
appropriateness of relying on ratings for use in Federal, State, and local
securities and banking regulations, including for determining capital
requirements; and</text>
</subparagraph><subparagraph commented="no" id="H52FA0F69BA39410888EC2BBCA4F4C992"><enum>(C)</enum><text>the effect of
liability in private actions arising under the Securities Exchange Act of
1934;</text>
</subparagraph><subparagraph commented="no" id="H09301DC2E74B4B08AA1AC3790585B819"><enum>(D)</enum><text>alternative means
for compensating credit rating agencies that would create incentives for
accurate credit ratings and what, if any, statutory changes would be required
to permit or facilitate the use of such alternative means of compensation;
and</text>
</subparagraph><subparagraph commented="no" id="H6B7AEE4932754F3E9553987ABB22C4DA"><enum>(E)</enum><text>alternative
methodologies to assess credit risk, including market-based measures.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA7FACE8940B24A4EBD7C6805058525BC"><enum>(2)</enum><header>Report</header><text>Not
later than 30 months after the date of enactment of this subtitle, the
Comptroller General shall submit to Congress and the Securities Exchange
Commission, a report containing the findings under the study required by
subsection (a).</text>
</paragraph></subsection><subsection commented="no" id="HE6E25490C6AF41368C9977944E7D1CF7"><enum>(b)</enum><header>SEC Study on
assigning credit rating agencies on a rotating basis</header><text>The
Securities and Exchange Commission shall undertake a study on creating a system
whereby nationally recognized statistical rating organizations are assigned on
a rotating basis to issuers and obligors seeking a credit rating. Not later
than 1 year after the date of enactment of this subtitle, the Securities and
Exchange Commission shall transmit to Congress a report containing the findings
of the study.</text>
</subsection><subsection commented="no" id="HA469D32E4DE64F21BF63BBD102032081"><enum>(c)</enum><header>SEC Study on
effect of new requirements on NRSRO registration</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study on the effect of the amendments made by section 2 on
credit rating agencies seeking to register as nationally recognized statistical
rating organizations, including whether the new requirements in such amendments
deter credit rating agencies from registering as nationally recognized
statistical rating organizations. Not later than 1 year after the date of
enactment of this subtitle, the Commission shall transmit 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 findings of
such study.</text>
</subsection><subsection commented="no" id="H107D9E85EEDC4949A96780766CB45057"><enum>(d)</enum><header>Study of credit
ratings of different classes of bonds</header>
<paragraph commented="no" id="H6A899D30A7774E4C9BDBEAF2110A0026"><enum>(1)</enum><header>Study</header><text>The
Securities and Exchange Commission shall conduct a study of the treatment of
different classes of bonds (municipal versus corporate) by the nationally
recognized statistical rating organizations. Such study shall examine—</text>
<subparagraph commented="no" id="H68309D4448E44CB6BDC727630D0EAE51"><enum>(A)</enum><text display-inline="yes-display-inline">whether there are fundamental differences
in the treatment of different classes of bonds by such rating organizations
that cause some classes of bonds to suffer from undue discrimination;</text>
</subparagraph><subparagraph commented="no" id="H796307BC5ED94D0D86BD29FC2A94393B"><enum>(B)</enum><text display-inline="yes-display-inline">if there are such differences, what are the
causes of such differences and how can they be alleviated;</text>
</subparagraph><subparagraph commented="no" id="HA09E4598794E4AB8B22E8AF1860A9384"><enum>(C)</enum><text display-inline="yes-display-inline">whether there are factors other than risk
of loss that are appropriate for the credit ratings agencies to consider when
rating bonds, and do those factors vary across different sectors</text>
</subparagraph><subparagraph commented="no" id="H584D3E72316841D49CCA4B71AC6890C7"><enum>(D)</enum><text display-inline="yes-display-inline">the types of financing arrangement used by
municipal issuers</text>
</subparagraph><subparagraph commented="no" id="H314BA60A20D042B6AF092402A234C4D4"><enum>(E)</enum><text display-inline="yes-display-inline">the differing legal and regulatory regimes
governing disclosures for corporate bonds and municipal bonds;</text>
</subparagraph><subparagraph commented="no" id="H6128752BB29D47D7A98418C1BAFDC46F"><enum>(F)</enum><text>the extent to
which retail investors could be disadvantaged by a single ratings scale;
and</text>
</subparagraph><subparagraph commented="no" id="HAFC84186315F450BA4074708B3C330B3"><enum>(G)</enum><text>practices,
policies, and methodologies by the nationally recognized statistical rating
organizations with respect to rating municipal bonds.</text>
</subparagraph></paragraph><paragraph commented="no" id="HEE6C634FBB244B9DA563D086478EA0BC"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Within 6 months after the date of enactment
of this subtitle, the Securities and Exchange Commission shall submit a report
on the results of the study required by paragraph (1) to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Development of the Senate. Such report shall
include as assessment of each of the issues and subjects described in
subparagraphs (A) through (G) of paragraph (1).</text>
</paragraph></subsection><subsection commented="no" id="H5749BF8F64BE4CBF8AC7627EFD83EFD5"><enum>(e)</enum><header>SEC study on
Meaningful Multi Digit Rating Symbols</header>
<paragraph commented="no" id="H5EA6E962E608419D9290C79E16CC236F"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study on the feasibility and desirability of implementing a
standardized rating system whereby ratings symbols contain multiple characters,
each representing a range of default probabilities and loss expectations under
standardized and increasingly severe levels of market stress. The study shall
optimize the definitions of the symbols to maximize their overall usefulness
for users of credit ratings.</text>
</paragraph><paragraph commented="no" id="H4CB444C145AE4BF1AF9CCFAADC6BBED1"><enum>(2)</enum><header>Initial example
for guidance</header><text display-inline="yes-display-inline">An example to
provide initial guidance for the study is a ratings symbol consisting of three
digits, each of which corresponds to default probabilities under different
levels of market stress as follows:</text>
<subparagraph commented="no" id="H471EE0D1EF4848FA81D0300D25183397"><enum>(A)</enum><text display-inline="yes-display-inline">The first digit represents the default
probability under <quote>normal</quote> market stress, characterized by normal
economic fluctuations in addition to a 5 percent decline in asset value and 2
percent increase in unemployment.</text>
</subparagraph><subparagraph commented="no" id="H2896C461FDC441509FB735046A4E6CC6"><enum>(B)</enum><text display-inline="yes-display-inline">The second digit represents the default
probability under more severe market stress, characterized a 20 percent decline
in asset value and 5 percent increase in unemployment.</text>
</subparagraph><subparagraph commented="no" id="H1B3ADE11EBE04AB5827712A3900BB7BA"><enum>(C)</enum><text display-inline="yes-display-inline">The third digit represents the default
probability under extreme market stress, characterized by a 50 percent decline
in asset value and 10 percent increase in unemployment.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC5201CD86FD24CE0A38FDB8C1E3B861B"><enum>(3)</enum><header>Report</header><text>Not
later than 1 year after the date of the enactment of this subtitle, the
Commission shall transmit to Congress a report of the study conducted pursuant
to paragraph (1), including recommendations on whether the system similar to
that described in paragraph (2) should be implemented and, if so, any necessary
legislation required to implement such a system.</text>
</paragraph></subsection><subsection commented="no" id="HC01CBB0470474C89AE99A1908BB94204"><enum>(f)</enum><header>SEC Study on
ratings standardization</header>
<paragraph commented="no" id="H106A274192D047E2B80CCE595CCD9BE1"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Securities and
Exchange Commission shall undertake a study on the feasability and desirability
of—</text>
<subparagraph commented="no" id="H6CA65C79A5CC4EF5B84057D7BB188BAE"><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="H808A8BB8C13244628DD492BFA776D564"><enum>(B)</enum><text>standardizing the
market stress conditions under which ratings are evaluated;</text>
</subparagraph><subparagraph commented="no" id="H11FD61BF9EAA45978472FF229325BB57"><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="H79C0E0D65FAC4B5F9D64FCE08649CF29"><enum>(D)</enum><text display-inline="yes-display-inline">standardizing credit rating terminology
across asset classes, so that named ratings shall 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="H89FB638AE3E2416F95F7B97FA44286CA"><enum>(2)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this subtitle, the Securities
and Exchange Commission shall transmit to Congress a report containing the
findings of the study and the recommendations of the Commission.</text>
</paragraph></subsection></section></subtitle><subtitle id="HA08A79349BC5440193530B33027FF56A"><enum>C</enum><header>Investor
Protection Act</header>
<section id="HF4F00203C7D64F0BA5FEE65A0E7000E1" section-type="subsequent-section"><enum>7001.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Investor Protection Act of 2009</quote>.</text>
</section><part id="H7291FD4DAA9745B188FE5B4C8A3E27B7"><enum>1</enum><header>Disclosure</header>
<section id="H14BD4E288F394F489E1F9B8E67F2B638"><enum>7101.</enum><header>Investor
Advisory Committee established</header><text display-inline="no-display-inline">The Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) is amended by adding after section 4C the following new
section:</text>
<quoted-block id="H0F431AF91DD042D58B0C9CC9818ECE10" style="OLC">
<section id="HC4222BDDA44C4710AA55959FA3707935"><enum>4D.</enum><header>Investor
Advisory Committee</header>
<subsection id="H001BAC4304F248B78C6EBD5F7D13A609"><enum>(a)</enum><header>Establishment
and purpose</header><text display-inline="yes-display-inline">There is
established an Investor Advisory Committee (in this section referred to as the
<quote>Committee</quote>) to advise and consult with the Commission on—</text>
<paragraph id="HA829BDC78C6948FD9D288B7002A75C33"><enum>(1)</enum><text>regulatory
priorities and issues regarding new products, trading strategies, fee
structures and the effectiveness of disclosures;</text>
</paragraph><paragraph id="HD51205BF76144DCEA935A2A2FF1274B7"><enum>(2)</enum><text>initiatives to
protect investor interest; and</text>
</paragraph><paragraph id="HD9A87A312907471CB7E14627B7104556"><enum>(3)</enum><text>initiatives to
promote investor confidence in the integrity of the marketplace.</text>
</paragraph></subsection><subsection id="HA64BF9E30E174621BE25297C4BDD7115"><enum>(b)</enum><header>Membership</header>
<paragraph id="H9297A65EE65B45668D4E0C44F98A8F34"><enum>(1)</enum><header>Appointment</header><text>The
Chairman of the Commission shall appoint the members of the Committee, which
members shall—</text>
<subparagraph id="H385A75FA20D74A9AB51B90AB360EC592"><enum>(A)</enum><text>represent the
interests of individual investors;</text>
</subparagraph><subparagraph id="H3A09EADC3EBD4215B47EC5FB093436AB"><enum>(B)</enum><text>represent the
interests of institutional investors; and</text>
</subparagraph><subparagraph commented="no" id="H3E9AE44FB0054B6AA1622735D60C6126"><enum>(C)</enum><text>use a wide range
of investment approaches.</text>
</subparagraph></paragraph><paragraph id="HD2A03C6076304400B72313D571523727"><enum>(2)</enum><header>Members not
commission employees</header><text>Members shall not be considered employees or
agents of the Commission solely because of membership on the Committee.</text>
</paragraph></subsection><subsection id="HC7545B78D8144A95916D2AECB45163FB"><enum>(c)</enum><header>Meetings</header><text>The
Committee shall meet from time to time at the call of the Commission, but, at a
minimum, shall meet at least twice each year.</text>
</subsection><subsection id="H0748E25588F34544B1B4B604CFA3202C"><enum>(d)</enum><header>Compensation and
travel expenses</header><text display-inline="yes-display-inline">Members of
the Committee who are not full-time employees of the United States
shall—</text>
<paragraph id="H0861207A39AC40FDA3D4405675F1F1FD"><enum>(1)</enum><text>be entitled to
receive compensation at a rate fixed by the Commission while attending meetings
of the Committee, including travel time; and</text>
</paragraph><paragraph id="HB33FCD600F074921A4DBE6E71BC43AB4"><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><subsection id="H78A939D92E0943A1AAC23B634602A0B5"><enum>(e)</enum><header>Committee
findings</header><text display-inline="yes-display-inline">Nothing in this
section requires the Commission to accept, agree, or act upon the findings or
recommendations of the Committee.</text>
</subsection><subsection id="H92B668B12152444CACDF09A2123D897B"><enum>(f)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to the Commission such sums as are necessary for
the activities of the
Committee.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8280A22885184F0FA043AE73901B48ED"><enum>7102.</enum><header>Clarification
of the Commission’s authority to engage in consumer testing</header>
<subsection id="HBBF9D67C5B754DF6A34626E297723D65"><enum>(a)</enum><header>Amendment to
Securities Act of 1933</header><text>Section 19 of the Securities Act of 1933
(15 U.S.C. 77s) is amended by adding at the end the following new
subsection:</text>
<quoted-block id="H3F35A6EF1B2644269A67FC8D6672ECAD" style="OLC">
<subsection id="H84B46863FBBD49E89D22B1E12F58E759"><enum>(e)</enum><text>For the purposes
of evaluating its rules and programs and for considering, proposing, adopting,
or engaging in rules or programs, the Commission is authorized to gather
information, communicate with investors or other members of the public, and
engage in such temporary or experimental programs as the Commission in its
discretion determines is in the public interest or for the protection of
investors. The Commission may delegate to its staff some or all of the
authority conferred by this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H16B8314C00DE42229B7BA041FE268B72"><enum>(b)</enum><header>Amendment to
Securities Exchange Act of 1934</header><text>Section 23 of the Securities
Exchange Act of 1934 (15 U.S.C. 78w) is amended by redesignating subsections
(b), (c), and (d) as subsections (c), (d), and (e), respectively, and inserting
after subsection (a) the following:</text>
<quoted-block id="HA36345E537C0418690E80C4923AE7BB3" style="OLC">
<subsection id="HB815BDDBC1634D9EB7B21D5224A83D86"><enum>(b)</enum><text>For the purposes
of evaluating its rules and programs and for considering proposing, adopting,
or engaging in rules or programs, the Commission is authorized to gather
information, communicate with investors or other members of the public, and
engage in such temporary or experimental programs as the Commission in its
discretion determines is in the public interest or for the protection of
investors. The Commission may delegate to its staff some or all of the
authority conferred by this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDC9801499E7A4BC988147AA8CD4E7BC8"><enum>(c)</enum><header>Amendment to
Investment Company Act of 1940</header><text>Section 38 of the Investment
Company Act of 1940 (15 U.S.C. 80a–38) is amended by adding at the end the
following new subsection:</text>
<quoted-block id="HAD622A51EDD647418BE8C97934724D19" style="OLC">
<subsection id="H431E2578866C4D46B56B26825F290058"><enum>(d)</enum><header>Gathering
information</header><text>For the purposes of evaluating its rules and programs
and for considering proposing, adopting, or engaging in rules or programs, the
Commission is authorized to gather information, communicate with investors or
other members of the public, and engage in such temporary or experimental
programs as the Commission in its discretion determines is in the public
interest or for the protection of investors. The Commission may delegate to its
staff some or all of the authority conferred by this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H09661EC1F5A04DCC9890E361FA993767"><enum>(d)</enum><header>Amendment to the
Investment Advisers Act of 1940</header><text>Section 211 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–11) (as amended by section 5008(2)) is
further amended by adding at the end the following new subsection:</text>
<quoted-block id="H6CFC3A8AD31C4977BF28FC061C389B27" style="OLC">
<subsection id="H7DF91353DC3C4CFC88481442F1589803"><enum>(f)</enum><text>For the purposes
of evaluating its rules and programs and for considering proposing, adopting,
or engaging in rules or programs, the Commission is authorized to gather
information, communicate with investors or other members of the public, and
engage in such temporary or experimental programs as the Commission in its
discretion determines is in the public interest or for the protection of
investors. The Commission may delegate to its staff some or all of the
authority conferred by this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H62AAFAC9FB28457BAFBBADB259B799CD"><enum>7103.</enum><header>Establishment
of a fiduciary duty for brokers, dealers, and investment advisers, and
harmonization of regulation</header>
<subsection id="H5C01255A634F4B648A914F359D6FFFEA"><enum>(a)</enum><header>In
general</header>
<paragraph id="H1B32A8CD391B4FC2BBD39C593872257F"><enum>(1)</enum><header>Securities
Exchange Act of 1934</header><text>Section 15 of the Securities Exchange Act of
1934 (15 U.S.C. 78o) (as amended by section 1951(c)) is further amended by
adding at the end the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="HE1DB4E14E9764E2B84BB8E40A4A3362A" style="OLC">
<subsection id="H1D68483EBFE6426D8E576E2BDEBAB376"><enum>(m)</enum><header>Standard of
conduct</header>
<paragraph id="HF681F34BD3C64C7785E3023513950AD9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this Act or the Investment Advisers Act of 1940, the
Commission shall 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 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.</text>
</paragraph><paragraph id="H0D31B81A82EA44479C7E887234E2072E"><enum>(2)</enum><header>Disclosure of
range of products offered</header><text display-inline="yes-display-inline">Where a broker or dealer sells only
proprietary or other limited range of products, as determined by the
Commission, the Commission shall 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><paragraph id="H55D0B860583B4F72BB4F286A37F6C134"><enum>(3)</enum><header>Retail customer
defined</header><text display-inline="yes-display-inline">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="H91667E66DC5D4CB2B579EA1FEAE992F0"><enum>(A)</enum><text>receives
personalized investment advice about securities from a broker or dealer;
and</text>
</subparagraph><subparagraph id="HB07950C71A4340C3BB99F78902C5225A"><enum>(B)</enum><text>uses such advice
primarily for personal, family, or household purposes.</text>
</subparagraph></paragraph></subsection><subsection id="H64856D7591454C4CB088217C9E4266BE"><enum>(n)</enum><header>Other
matters</header><text display-inline="yes-display-inline">The Commission
shall—</text>
<paragraph id="H6EB9F599AA3B427984277FB829C1A8FE"><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="H904EB24AB76D425887292E87B44ED5F0"><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="HE637991ABB4441E5ACB30FBF3F145C8E"><enum>(3)</enum><header>Investment
Advisers Act of 1940</header><text>Section 211 of the Investment Advisers Act
of 1940, as amended by section 7102(d), is further amended by adding at the end
the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H5B357B0503BA4F24ACC3D56992FE2D80" style="OLC">
<subsection id="HE33C890E435B4A61A7C9799FCFC10C94"><enum>(g)</enum><header>Standard of
conduct</header>
<paragraph id="H9D1082A065B947289EC2A0ED275FC344"><enum>(1)</enum><header>In
general</header><text>The Commission shall 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 <quote>customer</quote> 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="H91662E6FF8D7461F8DFA368108F67F52"><enum>(2)</enum><header>Retail customer
defined</header><text display-inline="yes-display-inline">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="H05A1F613892C4F37876A628B4B3A5526"><enum>(A)</enum><text>receives
personalized investment advice about securities from a broker, dealer, or
investment adviser; and</text>
</subparagraph><subparagraph id="HC57E40437B604085811125BBBF3DB218"><enum>(B)</enum><text>uses such advice
primarily for personal, family, or household purposes.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HA4003922CA0B46079F9AB99FDF80E321"><enum>(h)</enum><header>Other
matters</header><text display-inline="yes-display-inline">The Commission
shall—</text>
<paragraph id="H3B3C1069EF4E49B8A0EC20996CEF4D00"><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="H0ECCA15138E441BDBE9492295246A197"><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="H257398DD703441A68BCDACD16EE55E2D"><enum>(b)</enum><header>Harmonization of
enforcement</header>
<paragraph id="HA8BB2244445E40E98797C571B5B32FAC"><enum>(1)</enum><header>Securities
Exchange Act of 1934</header><text>Section 15 of the Securities Exchange Act of
1934, as amended by subsection (a)(1), is further amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H7929C6D568364F1D99CB82557677E3DC" style="OLC">
<subsection id="H01CB1B26E67149279D62C7EA44580463"><enum>(o)</enum><header>Harmonization of
enforcement</header><text display-inline="yes-display-inline">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="H0A74A8C3E6874A1C85412F9458D7C5F2"><enum>(1)</enum><text display-inline="yes-display-inline">the enforcement authority of the Commission
with respect to such violations provided under this Act, and</text>
</paragraph><paragraph id="H397B142EC4B4480BB7EDE7C4716A0B92"><enum>(2)</enum><text display-inline="yes-display-inline">the enforcement authority of the Commission
with respect to violations of the standard of conduct applicable to an
investment advisor 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="HBDC1F2C2564447C0B8556AD9E071A280"><enum>(2)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">Section
211 of the Investment Advisers Act of 1940, as amended by subsection (a)(2), is
further amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0B72AD9E70A442DF927F485A4A4460A4" style="OLC">
<subsection id="H4C17889DCB52431DA97B0E3EEA4FCC71"><enum>(i)</enum><header>Harmonization of
enforcement</header><text display-inline="yes-display-inline">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="H358924CD7BE94F529E1DFB45675D739A"><enum>(1)</enum><text display-inline="yes-display-inline">the enforcement authority of the Commission
with respect to such violations provided under this Act, and</text>
</paragraph><paragraph id="H46AD760772A14AB48530E8007C02612B"><enum>(2)</enum><text display-inline="yes-display-inline">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 advisor 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 id="HA9CB4DF44E6B40709709B6FE5D7B2ACD"><enum>7104.</enum><header>Commission
study on disclosure to retail customers before purchase of products or
services</header>
<subsection id="H95A43E9A35FD4FCDB7C648A1025EF463"><enum>(a)</enum><header>Study
required</header><text>Prior to proposing any rules or regulations pursuant to
subsection (b)(1) regarding the manner in which investment products or services
are sold or provided in the United States to retail customers or the
information that must be provided to retail customers prior to the purchase of
such products or services, and within 180 days after the date of the enactment
of this subtitle, the Securities and Exchange Commission shall publish a study
that examines—</text>
<paragraph id="H36694EB19879453DB8E9FC8121A8E695"><enum>(1)</enum><text display-inline="yes-display-inline">the nature of a <quote>retail
customer</quote>, taking into consideration the definition in section 15(k) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o), as amended by section 7103
of this subtitle;</text>
</paragraph><paragraph id="HBCAFCC3C4FEE46D3A34994479F0C3D15"><enum>(2)</enum><text>the range of
products and services sold or provided to retail customers, and the sellers or
providers of such products and services, that are within the Commission’s
jurisdiction;</text>
</paragraph><paragraph id="HA48DFDF61BEA4C0BA771AB433C687AD8"><enum>(3)</enum><text>how such products
and services are sold or provided to retail customers, the fees charged for
such products and services, and the conflicts of interest that may arise during
the sales process or provision of services;</text>
</paragraph><paragraph id="HB5B977C4A39F4CED92BDA27EB8CBE2B3"><enum>(4)</enum><text>information that
retail customers should receive prior to purchasing each product or service,
and the appropriate person or entity to provide such information; and</text>
</paragraph><paragraph id="H9883B33F22374CC08D4FBF91B445664A"><enum>(5)</enum><text>ways to ensure
that, where possible, reasonably similar products and services are subject to
similar regulatory treatment, including with respect to information that must
be provided to retail customers prior to the purchase of such products or
services and how such information is provided.</text>
</paragraph></subsection><subsection id="H33BC140BF94B45F4A10D54AB77BB00BD"><enum>(b)</enum><header>Rulemaking</header>
<paragraph id="HE116CD9C4CAD45C78494420CBB5B286B"><enum>(1)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of the
Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Investment Company Act of
1940 (15 U.S.C. 80a–1 et seq.), following completion of the study required by
subsection (a), the Commission is authorized to promulgate rules to require
that the appropriate persons or entities provide designated documents or
information to retail customers prior to the purchase of identified investment
products or services. Any such rules shall—</text>
<subparagraph id="HD68871D232244A06A0E642DBB3C9DAF7"><enum>(A)</enum><text>take into account
the findings of the study conducted pursuant to subsection (a);</text>
</subparagraph><subparagraph id="H7FA088AAD2AE43E09C96131542AA9451"><enum>(B)</enum><text display-inline="yes-display-inline">take into consideration, to the extent
possible, the need for such documents and information to be consistent and
comparable across investment products or services sold or provided to retail
customers; and</text>
</subparagraph><subparagraph id="H6344BCD4D9AB4F209A8C43FD44627318"><enum>(C)</enum><text display-inline="yes-display-inline">reduce, to the extent possible, disruptions
to the purchase process for investment products and services sold or provided
to retail customers, by means such as permitting required disclosures to be
made via the Internet.</text>
</subparagraph></paragraph><paragraph id="HCEC4A7FA088F4078B1283CD9AFF254CC"><enum>(2)</enum><text>Notwithstanding
paragraph (1), the Commission is authorized to promulgate rules in connection
with—</text>
<subparagraph id="HBAC86ED4A30244E3981A975A5896E174"><enum>(A)</enum><text>the implementation
of section 7103; and</text>
</subparagraph><subparagraph id="H5E158C5CE37649AD8CBBBC12D5B567F7"><enum>(B)</enum><text>disclosure to
retail customers other than in connection with the purchase of investment
products or services.</text>
</subparagraph></paragraph></subsection></section><section id="H7AA78A6C3B0247718D0CA4B6C610B708"><enum>7105.</enum><header>Beneficial
ownership and short-swing profit reporting</header>
<subsection id="H22973D75A8FC43D986DAD6872BC0B83B"><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 id="HABB1ED9334074FF0B0EA6F198FBDBB3C"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)(1)—</text>
<subparagraph id="H27411468676C4A6B9B3C689EA12EA1C8"><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 id="H3795D02C6B8D457CA6E6BF68263555FD"><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 id="H0C6F049B46D249E4B48DEC9703875F2A"><enum>(2)</enum><text>in subsection
(d)(2)—</text>
<subparagraph id="HDCA1CE6689FD4FBDA9BAD69091409C2B"><enum>(A)</enum><text>by striking
<quote>in the statements to the issuer and the exchange, and</quote>;
and</text>
</subparagraph><subparagraph id="H25ADA23F67B94B78AF17131FAD38E871"><enum>(B)</enum><text>by striking
<quote>shall be transmitted to the issuer and the exchange and</quote>;</text>
</subparagraph></paragraph><paragraph id="HBF6BAF3E5A324521A93F3D90B2A55E56"><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 id="H1076FA0D9319478D86E55D8EEBC73CF4"><enum>(4)</enum><text>in subsection
(g)(2)—</text>
<subparagraph id="HE11356315D5A4743AED75AD4F3AA2558"><enum>(A)</enum><text>by striking
<quote>sent to the issuer and</quote>; and</text>
</subparagraph><subparagraph id="H62782C8C521243A59A41C860FB40F693"><enum>(B)</enum><text>by striking
<quote>shall be transmitted to the issuer and</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H324246CE2D16445ABB6ED620D9ABD1BE"><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 id="H1B617EBEF4EF458C821041BB8D203D13"><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 id="H4791A95F8FDB446D95C96E3CC999F9A1"><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 id="H935E22F9BC984799B86598879E07D943"><enum>7106.</enum><header>Revision to
recordkeeping rules</header>
<subsection id="HB87A956C8E7F4FC0ACE817928965A247"><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 id="H6A0AF222D37C4226909005157D8E3EC9"><enum>(1)</enum><text>in subsection
(a)(1), by adding at the end the following: <quote>Each person with custody or
use of a registered investment company’s securities, deposits, or credits shall
maintain and preserve all records that relate to the person’s custody or use of
the registered investment company’s securities, deposits, or credits for such
period or periods as the Commission, by rules and regulations, may prescribe as
necessary or appropriate in the public interest or for the protection of
investors.</quote>; and</text>
</paragraph><paragraph id="HEF05CCEF20B24411B80EEEB8863BCC86"><enum>(2)</enum><text>in subsection (b),
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2166786DEB6040C99BB639B0B164D869" style="OLC">
<paragraph id="H81A033105F3243B0B6596949EC3F04CA"><enum>(4)</enum><header>Records of
persons with custody or use</header>
<subparagraph id="HC5AFF20A47274C64AD698816A24CB605"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (1), records of persons with custody or use of a registered
investment company’s securities, deposits, or credits, 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 id="H836953FB5AE548E0B611AF9685B7E353"><enum>(B)</enum><header>Certain persons
subject to other regulation</header><text>Persons 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 the Commission with a detailed listing, in
writing, of the registered investment company’s securities, deposits, or
credits within such person’s custody or
use.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6B3F34DC65A047BC8B193B45B7CAC569"><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="H4674865D1F714648A459ACE926470623" style="OLC">
<subsection id="H8E91046463CF4375A5599D2C58D74A63"><enum>(d)</enum><header>Records of
persons with custody or use</header>
<paragraph id="H39E88DEFAE6F49969BB2D76FCCA210A9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Records of persons
with custody or use of a client’s securities, deposits, or credits, 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 id="HCA7D99CB78FF4FF99AA108DB5590645C"><enum>(2)</enum><header>Certain persons
subject to other regulation</header><text>Persons 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 client’s securities, deposits, or credits within such person’s
custody or
use.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H027C44333CE04571BA599028C081716D"><enum>7107.</enum><header>Study on
enhancing investment advisor examinations</header>
<subsection id="H9BCA70EB3AC24187ADA91CB49CF156F5"><enum>(a)</enum><header>Study
required</header>
<paragraph id="H0B40801C8E9F4D6FBB5180983607A2DA"><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 id="H75601C2620F145E4ADA737521CB291AA"><enum>(2)</enum><header>Areas of
consideration</header><text>The study required by this subsection shall
examine—</text>
<subparagraph id="HB829F3D3BA334280B1B768AFDEFC6F3B"><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 id="H9E4F587A162B46BF875669299C65F7E1"><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 id="H65DC5E70603A45D7A7B567870EBA15BB"><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 id="H1B36092127D64A05AC2292C3EA476D5C"><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="H332D904779CB42B891A3BE0CCD724E0C"><enum>7108.</enum><header>GAO study of
financial planning</header>
<subsection id="H98E04FDEEDBF44B49D9BE0A752AE9884"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall conduct a study on the regulation and
oversight of financial planning. The study shall consider—</text>
<paragraph id="H2B9BC48B69EA4604A3DE364BDBC0E127"><enum>(1)</enum><text>the unique role of
financial planners in providing comprehensive advice in investment planning,
income tax planning, education planning, retirement planning, estate planning,
risk management, and other areas with respect to the management of financial
resources; and</text>
</paragraph><paragraph id="H377FAA7C009648A7AADA64734616CEF0"><enum>(2)</enum><text>any gaps in the
regulation of financial planners given existing State and Federal regulation of
financial planning activities and the need to provide related consumer
protections for such financial planning activities.</text>
</paragraph></subsection><subsection id="H7CD1F4165DDE4C46B059D147C8695A26"><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 subtitle, the Comptroller
General of the United States shall submit to the Congress a report containing
the findings and determinations made by the Comptroller General in carrying out
the study required under subsection (a), including recommendations for the
appropriate regulation of, or standards for, financial planners as a profession
and how such regulations or standards should be established.</text>
</subsection></section></part><part id="H19E7C5B188DD4758B1CFDC197CA3F780"><enum>2</enum><header>Enforcement and
Remedies</header>
<section id="H9E5ECD0B3C7E4AD38D62F2AB66DA4BDE"><enum>7201.</enum><header>Authority to
restrict mandatory pre-dispute arbitration</header>
<subsection id="H278AC07F39AB45579BB74167EBFCC23B"><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 section 7103, is further
amended by adding at the end the following new subsection:</text>
<quoted-block id="HD6F85DAC7AAD4983AF5E46B13E308243" style="OLC">
<subsection id="H1C3888E2BB8442DEA150E94B08D2295E"><enum>(p)</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 id="H9F4EFE6580E64422ABEC1E995B2CA0DB"><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="H48B8231A8196447FBEB027222459B380" style="OLC">
<subsection id="HFF4F8DE2CCC5407A82761F903033E135"><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="H2AD829988B5A450EA66721D6FC5A548E"><enum>7202.</enum><header>Comptroller
General study to review securities arbitration system</header>
<subsection id="HEE09C49B93A442CB80647F56CEF21D48"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study to review—</text>
<paragraph id="H4488CB908DA442EBA7CD5EBA12FF6AB9"><enum>(1)</enum><text display-inline="yes-display-inline">the costs to parties of an arbitration
proceeding using the arbitration system operated by the Financial Industry
Regulatory Authority and overseen by the Securities and Exchange Commission as
compared to litigation;</text>
</paragraph><paragraph id="HFE90F2F2255B45EF8F224B40BDC75AC0"><enum>(2)</enum><text display-inline="yes-display-inline">the percentage of recovery of the total
amount of a claim in an arbitration proceeding using the arbitration system
operated by the Financial Industry Regulatory Authority and overseen by the
Securities and Exchange Commission; and</text>
</paragraph><paragraph id="H4AC7907E67D347C4B83B8427E0A5B1DF"><enum>(3)</enum><text display-inline="yes-display-inline">other additional issues as may be raised
during the course of the study conducted under this subsection.</text>
</paragraph></subsection><subsection id="H8F6A63B045F74D78BF95833A072D1C57"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
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), including in such
report recommendations for improvements to the arbitration system referenced in
such subsection.</text>
</subsection></section><section id="H6DCF1CBB880D46778B983686A44F8BBF"><enum>7203.</enum><header>Whistleblower
protection</header>
<subsection id="HFF647013BEAD447BA77168B5A3007EF4"><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 adding after section
21E the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H293B5324C4E0431CA2ECC24168E9058F" style="OLC">
<section id="H219C6B731FB54477A8C79D09CC806CB7"><enum>21F.</enum><header>Securities
whistleblower incentives and protection</header>
<subsection id="HA5FAC1FEB08341D090DD77854C3410EF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In any judicial or
administrative action brought by the Commission under the securities laws that
results in monetary sanctions exceeding $1,000,000, the Commission, under
regulations prescribed by the Commission and subject to subsection (b), may pay
an award or awards not exceeding an amount equal to 30 percent, in total, of
the monetary sanctions imposed in the action or related actions to one or more
whistleblowers who voluntarily provided original information to the Commission
that led to the successful enforcement of the action. Any amount payable under
the preceding sentence shall be paid from the fund described in subsection
(f).</text>
</subsection><subsection id="H5338B897501E4983B13B94FE35849425"><enum>(b)</enum><header>Determination of
amount of award; denial of award</header>
<paragraph id="HB1FC50FE0E304E4D80E7EEF282DF1F84"><enum>(1)</enum><header>Determination of
amount of award</header><text display-inline="yes-display-inline">The
determination of the amount of an award, within the limit specified in
subsection (a), shall be in the sole discretion of the Commission. The
Commission may take into account the significance of the whistleblower’s
information to the success of the judicial or administrative action described
in subsection (a), the degree of assistance provided by the whistleblower and
any legal representative of the whistleblower in such action, the Commission’s
programmatic interest in deterring violations of the securities laws by making
awards to whistleblowers who provide information that leads to the successful
enforcement of such laws, and such additional factors as the Commission may
establish by rules or regulations.</text>
</paragraph><paragraph id="HE0352DBD2EE64DC2A634CD3E8E39AE60"><enum>(2)</enum><header>Denial of
award</header><text display-inline="yes-display-inline">No award under
subsection (a) shall be made—</text>
<subparagraph id="H2E502935329E43648CCE561E261A153E"><enum>(A)</enum><text>to any
whistleblower who is, or was at the time he or she acquired the original
information submitted to the Commission, a member, officer, or employee of any
appropriate regulatory agency, the Department of Justice, the Public Company
Accounting Oversight Board, or a self-regulatory organization;</text>
</subparagraph><subparagraph id="H3D3A9F36B14F49B386CF6957DF1D57A4"><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; or</text>
</subparagraph><subparagraph id="H7AE6110B1CDB4D5AB0445D5D9C28BC5F"><enum>(C)</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="H33A40DB30DCD4AFDA7EF8BE01457B7B3"><enum>(c)</enum><header>Representation</header>
<paragraph id="H9B03033BBC534887904914CDBDC417B8"><enum>(1)</enum><header>Permitted
representation</header><text display-inline="yes-display-inline">Any
whistleblower who makes a claim for an award under subsection (a) may be
represented by counsel.</text>
</paragraph><paragraph id="H35C4EF6300744F68A3F9C217A33175E6"><enum>(2)</enum><header>Required
representation</header><text display-inline="yes-display-inline">Any
whistleblower who makes a claim for an award under subsection (a) must be
represented by counsel if the whistleblower submits the information upon which
the claim is based anonymously. Prior to the payment of an award, the
whistleblower must disclose his or her identity and provide such other
information as the Commission may require.</text>
</paragraph></subsection><subsection id="H084AB99A7CA141F898AB23981EF0C1B4"><enum>(d)</enum><header>No contract
necessary</header><text display-inline="yes-display-inline">No contract with
the Commission is necessary for any whistleblower to receive an award under
subsection (a), unless the Commission, by rule or regulation, so
requires.</text>
</subsection><subsection id="H8F39BC3DC7A244E69362DD123BB42DC8"><enum>(e)</enum><header>Appeals</header><text>Any
determinations under this section, including whether, to whom, or in what
amounts to make awards, shall be in the sole discretion of the Commission, and
any such determinations shall be final and not subject to judicial
review.</text>
</subsection><subsection id="HF0CC3923F23B4A0B8FA163561FEB961D"><enum>(f)</enum><header>Investor
protection fund</header>
<paragraph id="HD366B6663BFA405BB4B8E03AD076AE35"><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> (referred to in this section as the
<quote>Fund</quote>).</text>
</paragraph><paragraph id="H9AD500AC9B594FFC98D5EC8993393282"><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 the following
purposes:</text>
<subparagraph commented="no" id="H57A7641CBE9A47638E4D878B2F6A7849"><enum>(A)</enum><text>Paying awards to
whistleblowers as provided in subsection (a).</text>
</subparagraph><subparagraph commented="no" id="H156F847FC3264C2EBEE19FE2BD306E99"><enum>(B)</enum><text>Funding investor
education initiatives designed to help investors protect themselves against
securities fraud or other violations of the securities laws, or the rules and
regulations thereunder.</text>
</subparagraph></paragraph><paragraph id="H1ED7E92CFA74431EAAA20FA4C579C25D"><enum>(3)</enum><header>Deposits and
credits</header><text>There shall be deposited into or credited to the
Fund—</text>
<subparagraph id="H2449CB1871D94D5ABB8000EDC17F750B"><enum>(A)</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 pursuant to section 308 of the Sarbanes-Oxley
Act of 2002 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 $100,000,000;</text>
</subparagraph><subparagraph id="H340713EF464840998633A7A3E2A89B41"><enum>(B)</enum><text>any monetary
sanction added to a disgorgement fund or other fund pursuant to section 308 of
the Sarbanes-Oxley Act of 2002 that is not distributed to the victims for whom
the disgorgement fund or other fund was established, unless the balance of the
Fund at the time the determination is made not to distribute the monetary
sanction to such victims exceeds $100,000,000; and</text>
</subparagraph><subparagraph id="H13216818440A41C8B169FA2D61A23630"><enum>(C)</enum><text>all income from
investments made under paragraph (4).</text>
</subparagraph></paragraph><paragraph id="H9E7B5B91876B43F5BB896AB09CA81E2A"><enum>(4)</enum><header>Investments</header>
<subparagraph id="HEA46E91BC80948A390E368CE106EADA1"><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="HAFA4063846C74EABB7E53F040738E4C0"><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="H177C780D6521420F8C5264CCCD022C02"><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="H36E5821112084925991E2914AFD16012"><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 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="H4B64157598FD44D696FEE3E640DDDB52"><enum>(A)</enum><text>the Commission’s
whistleblower award program under this section, including a description of the
number of awards that were granted and the types of cases in which awards were
granted during the preceding fiscal year;</text>
</subparagraph><subparagraph id="H50E1D8718AF34D2B96EC4F0E12F0A9EB"><enum>(B)</enum><text>investor education
initiatives described in paragraph (2)(B) that were funded by the Fund during
the preceding fiscal year;</text>
</subparagraph><subparagraph id="HF5A2055D906B4DF4AE44D97736C5E60F"><enum>(C)</enum><text>the balance of the
Fund at the beginning of the preceding fiscal year;</text>
</subparagraph><subparagraph id="HEC79EBA272DD412BA5CA259BDF52A574"><enum>(D)</enum><text>the amounts
deposited into or credited to the Fund during the preceding fiscal year;</text>
</subparagraph><subparagraph id="H27B409F89D734677A0DA0FC9742253AB"><enum>(E)</enum><text>the amount of
earnings on investments of amounts in the Fund during the preceding fiscal
year;</text>
</subparagraph><subparagraph id="H10E1079F4A48451183C8D5AD0D29E899"><enum>(F)</enum><text>the amount paid
from the Fund during the preceding fiscal year to whistleblowers pursuant to
subsection (a);</text>
</subparagraph><subparagraph id="H0A8E0083A2324F6993086BC4B9131393"><enum>(G)</enum><text>the amount paid
from the Fund during the preceding fiscal year for investor education
initiatives described in paragraph (1)(B);</text>
</subparagraph><subparagraph id="H81B14AA38097407AAA24DC25650EC6F3"><enum>(H)</enum><text>the balance of the
Fund at the end of the preceding fiscal year; and</text>
</subparagraph><subparagraph id="H66D87634E37B4527BF6125DAF7E39160"><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="HBD9DE8400AD0480B9F589C3D45C0EE72"><enum>(g)</enum><header>Protection of
whistleblowers</header>
<paragraph id="HCC2E13E3434C4F93AE5779DB8F2BC08F"><enum>(1)</enum><header>Prohibition
against retaliation</header>
<subparagraph id="HB995014E510840C19F088FF49FF8AA3F"><enum>(A)</enum><header>In
general</header><text>No employer may discharge, demote, suspend, threaten,
harass, or in any other manner discriminate against an employee, contractor, or
agent in the terms and conditions of employment because of any lawful act done
by the employee, contractor, or agent in providing information to the
Commission in accordance with subsection (a), or in assisting in any
investigation or judicial or administrative action of the Commission based upon
or related to such information.</text>
</subparagraph><subparagraph id="HAEFEA9FFE92B41BDAB1A2A581AE807D4"><enum>(B)</enum><header>Enforcement</header>
<clause id="HF06D152835474B7AB5946EE2BCF5DDD2"><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="H756771DC0F04484B88D381E5CFBA4775"><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="H3DD787765A6E4471ACC62DEF2A7F35EF"><enum>(iii)</enum><header>Statute of
limitations</header><text>An action under this subsection may not be brought
more than 6 years after the date on which the violation of subparagraph (A)
occurred, or 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), but in no event after 10 years after
the date on which the violation occurs.</text>
</clause></subparagraph><subparagraph id="H86ED9FEFF0C64257AAC69F885ACF9EA8"><enum>(C)</enum><header>Relief</header><text display-inline="yes-display-inline">An employee, contractor, or agent
prevailing in any action brought under subparagraph (B) shall be entitled to
all relief necessary to make that employee, contractor, or agent whole,
including reinstatement with the same seniority status that the employee,
contractor, or agent would have had, but for the discrimination, 2 times the
amount of back pay, with interest, and compensation for any special damages
sustained as a result of the discrimination, including litigation costs, expert
witness fees, and reasonable attorneys’ fees.</text>
</subparagraph></paragraph><paragraph id="H50BEB69E9CAF4662A562A71004E71104"><enum>(2)</enum><header>Confidentiality</header>
<subparagraph id="H26F26B9C1ECE44C3B360612A85C21117"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), all information
provided to the Commission by a whistleblower shall be confidential and
privileged as an evidentiary matter (and shall not be subject to civil
discovery or other legal process) in any proceeding in any Federal or State
court or administrative agency, and shall be exempt from disclosure, in the
hands of an agency or establishment of the Federal Government, under the
Freedom of Information Act (5 U.S.C. 552), or otherwise, unless and until
required to be disclosed to a defendant or respondent in connection with a
proceeding instituted by the Commission or any entity described in subparagraph
(B). 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. Nothing herein is intended to limit the Attorney General’s ability 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="H0A4CDD5F2838408D917B94A11CF3D515"><enum>(B)</enum><header>Availability to
government agencies</header><text>Without the loss of its status as
confidential and privileged 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 protect investors, be made available to—</text>
<clause id="H2300E73476734AA685FBE979DF2A41A2"><enum>(i)</enum><text>the Attorney
General of the United States,</text>
</clause><clause id="HD742A146A29E4606B235174ECA53DD62"><enum>(ii)</enum><text>an appropriate
regulatory authority,</text>
</clause><clause id="HD5ADC9F7148541CEB29766950CB11201"><enum>(iii)</enum><text>a
self-regulatory organization,</text>
</clause><clause id="H2D0F424B1514471B90BCD9F9C45B2335"><enum>(iv)</enum><text display-inline="yes-display-inline">the Public Company Accounting Oversight
Board,</text>
</clause><clause id="H42A7D6C25B024A05B9F7A9A6EDB9E537"><enum>(v)</enum><text>State attorneys
general in connection with any criminal investigation, and</text>
</clause><clause id="H922EC7F7325049FBA2B8B6C6597211A8"><enum>(vi)</enum><text>any appropriate
State regulatory authority,</text>
</clause><continuation-text continuation-text-level="subparagraph">each of
which shall maintain such information as confidential and privileged, in
accordance with the requirements in subparagraph (A).</continuation-text></subparagraph></paragraph><paragraph id="H8DC0DF8AA6CD40AEB0F4C91129FA546D"><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="HC4015D89365F4C6AB7B93A53DA6EDC6B"><enum>(h)</enum><header>Provision of
false information</header><text display-inline="yes-display-inline">Any
whistleblower who knowingly and willfully makes any false, fictitious, or
fraudulent statement or representation, or 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="HA6890F94AF734E5992F8149C4173A2FD"><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.</text>
</subsection><subsection id="H3F624F4918544E4F9FB9DECBC7398B55"><enum>(j)</enum><header>Definitions</header><text>For
purposes of this section, the following terms have the following
meanings:</text>
<paragraph id="H6A8763241AB84B09905C9A5BEE3DA8E9"><enum>(1)</enum><header>Original
information</header><text>The term <quote>original information</quote> means
information that—</text>
<subparagraph id="H4F802D1C83E54C54B732155A7616FE86"><enum>(A)</enum><text>is based on the
direct and independent knowledge or analysis of a whistleblower;</text>
</subparagraph><subparagraph id="HB9DA076CE2034933AB7E1512B4981E09"><enum>(B)</enum><text>is not known to
the Commission from any other source, unless the whistleblower is the initial
source of the information; and</text>
</subparagraph><subparagraph id="HAE51B730E7FD42058964454D24446773"><enum>(C)</enum><text>is not based on
allegations in a judicial or administrative hearing, in a governmental report,
hearing, audit, or investigation, or from the news media, unless the
whistleblower is the initial source of the information that resulted in the
judicial or administrative hearing, governmental report, hearing, audit, or
investigation, or the news media’s report on the allegations.</text>
</subparagraph></paragraph><paragraph id="H53B38187F3AB482EA8391220EF848DBD"><enum>(2)</enum><header>Monetary
sanctions</header><text>The term <quote>monetary sanctions</quote>, when used
with respect to any judicial or administrative action, means any monies,
including but not limited to penalties, disgorgement, and interest, ordered to
be paid, and 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>
</paragraph><paragraph id="HED2A40A2829E404AB5143F8BABBF92D8"><enum>(3)</enum><header>Related
action</header><text>The term <quote>related action</quote>, 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 subsection (g)(2)(B) that is based upon the same
original information provided by a whistleblower pursuant to subsection (a)
that led to the successful enforcement of the Commission action.</text>
</paragraph><paragraph id="H94EC286DAF0447DF9486E56364C02647"><enum>(4)</enum><header>Whistleblower</header><text>The
term <quote>whistleblower</quote> means an individual, or two or more
individuals acting jointly, who submit information to the Commission as
provided in this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDF13BBD29239475BAB8498E998151E6E"><enum>(b)</enum><header>Administration
and enforcement</header><text display-inline="yes-display-inline">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 added by subsection (a). Such office shall
report annually to Congress on its activities, whistleblower complaints, and
the response of the Commission to such complaints.</text>
</subsection></section><section id="HA19D83A4D8514556BA5BBB1ABDFCA484"><enum>7204.</enum><header>Conforming
amendments for whistleblower protection</header>
<subsection id="HAD768150B5B6412CA088CF209352A0E5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Each of the following
provisions is amended by inserting <quote>and section 21F of the Securities
Exchange Act of 1934” after “the Sarbanes-Oxley Act of 2002</quote>:</text>
<paragraph id="H57C4F4BAB4A047729E3711768AD2BF03"><enum>(1)</enum><text>Section
20(d)(3)(A) of the Securities Act of 1933 (15 U.S.C. 77t(d)(3)(A)).</text>
</paragraph><paragraph id="H28939D87D75742F48F7349171C17B9CD"><enum>(2)</enum><text display-inline="yes-display-inline">Section 42(e)(3)(A) of the Investment
Company Act of 1940 (15 U.S.C. 80a–41(e)(3)(A)).</text>
</paragraph><paragraph id="HCBDAC1101E164C4F9F96452F0585FC93"><enum>(3)</enum><text display-inline="yes-display-inline">Section 209(e)(3)(A) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–9(e)(3)(A)).</text>
</paragraph></subsection><subsection id="H434F5F8D51554603AE10909A3782A0E5"><enum>(b)</enum><header>Securities
Exchange Act</header><text>The Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.) is amended—</text>
<paragraph id="HB9B30107AC324FE78D5413A8A2C6BFD1"><enum>(1)</enum><text display-inline="yes-display-inline">in section 21(d)(3)(C)(i) (15 U.S.C.
78u(d)(3)(C)(i)), by inserting <quote>and section 21F of this title</quote>
after <quote>the Sarbanes-Oxley Act of 2002</quote>;</text>
</paragraph><paragraph id="H36E52D96CAA841979AFCDFAD60EEE38C"><enum>(2)</enum><text>in section
21A(d)(1) (15 U.S.C. 78u–1(d)(1))—</text>
<subparagraph id="H6CA242C0B7F24D6A87EF508AB7F66D00"><enum>(A)</enum><text>by striking
<quote>(subject to subsection (e))</quote>; and</text>
</subparagraph><subparagraph id="HD7EFE6B9307940C38A3C6EB2D383F200"><enum>(B)</enum><text>by inserting
<quote>and section 21F of this title</quote> after <quote>the Sarbanes-Oxley
Act of 2002</quote>; and</text>
</subparagraph></paragraph><paragraph id="HF7A7974060564D36804FC54AF307BA7E"><enum>(3)</enum><text>in section 21A, by
striking subsection (e) and redesignating subsections (f) and (g) as subsection
(e) and (f), respectively.</text>
</paragraph></subsection></section><section id="HAF123AC3E9664E939D663463FA1482E5"><enum>7205.</enum><header>Implementation
and transition provisions for whistleblower protections</header>
<subsection id="H845A60E1A9F442E7A1786C16B346A283"><enum>(a)</enum><header>Implementing
rules</header><text>The Securities and Exchange Commission shall issue final
regulations implementing the provisions of section 21F of the Securities
Exchange Act of 1934, as added by this part, no later than 270 days after the
date of enactment of this subtitle.</text>
</subsection><subsection id="H9DBA9323C9EE40C9B4A585652D0EFF99"><enum>(b)</enum><header>Original
information</header><text>Information submitted to the Commission by a
whistleblower in accordance with regulations implementing the provisions of
section 21F of the Securities Exchange Act of 1934, as added by this part,
shall not lose its status as original information, as defined in subsection
(i)(1) of such section, solely because the whistleblower submitted such
information prior to the effective date of such regulations, provided such
information was submitted after the date of enactment of this subtitle, or
related to insider trading violations for which a bounty could have been paid
at the time such information was submitted.</text>
</subsection><subsection id="H468F444FDD5B414694914235C8AB5B9D"><enum>(c)</enum><header>Awards</header><text display-inline="yes-display-inline">A whistleblower may receive an award
pursuant to section 21F of the Securities Exchange Act of 1934, as added by
this part, 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></section><section id="H48F3BB5FBB494FCD8E7C532AA6DB8AF7"><enum>7206.</enum><header>Collateral
bars</header>
<subsection id="H7BBF856D236343FEADBA3D6A63B3B981"><enum>(a)</enum><header>Section 15 of
the Securities Exchange Act of 1934</header><text display-inline="yes-display-inline">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, transfer agent, or nationally recognized statistical rating
organization,</quote>.</text>
</subsection><subsection id="H17995FB662F0476DB96819532C214131"><enum>(b)</enum><header>Section 15B of
the Securities Exchange Act of 1934</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, transfer agent, or nationally recognized
statistical rating organization,</quote>.</text>
</subsection><subsection id="HD47F22AA72844451ACCF46250B528531"><enum>(c)</enum><header>Section 17A of
the Securities Exchange Act of 1934</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, or nationally recognized
statistical rating organization,</quote>.</text>
</subsection><subsection id="HD3C32BDAAA1D4CC7AD69094F8547BDB2"><enum>(d)</enum><header>Section 203 of
the 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, transfer agent, or nationally recognized
statistical rating organization,</quote>.</text>
</subsection></section><section id="HE11678D89995445B908EE3D660A6CA67"><enum>7207.</enum><header>Aiding and
abetting authority under the Securities Act and the Investment Company
Act</header>
<subsection id="H20BD8A267F234D47BC46381F51409E16"><enum>(a)</enum><header>Under the
securities act of 1933</header><text>Section 15 of the Securities Act of 1933
(15 U.S.C. 77o) is amended—</text>
<paragraph id="H25BE86B480D94159A0781A88945CEF09"><enum>(1)</enum><text>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 id="H0267D93D3EEB4824910FD5DD433D5E40"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9EF168B11A44456792829FAD047A7AD2" style="OLC">
<subsection id="HD9F61F0F7B9948E9B25C725F5B010555"><enum>(b)</enum><header>Prosecution of
persons who aid and abet violations</header><text>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 id="HEEF9D6D57465442BB037372D47082EA3"><enum>(c)</enum><header>Under the
Investment Company Act of 1940</header><text>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="H13406DD83D2B47B28A884AB7C71B1946" style="traditional">
<subsection id="H61BC0B2F8F084E2288EC3F2FE8DCF56A"><enum>(b)</enum><text>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 id="HFFA4F8F78937414A991BFC13257817A0"><enum>7208.</enum><header>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 subsections:</text>
<quoted-block id="HF071475E8EEB4CC28B94401979F8FBDA" style="OLC">
<subsection id="H94DDEDB5A852444FA869718C74D8C183"><enum>(f)</enum><header>Aiding and
abetting</header><text>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><subsection id="HA2C31E90997340B6BE465AC6F3D7FFF0"><enum>(g)</enum><header>enforcement by
national securities associations</header><text display-inline="yes-display-inline">The Commission may permit or require a
national securities association registered under the Securities Exchange Act of
1934 to enforce compliance by its members and persons associated with its
members with the provisions of this Act, the rules and regulations thereunder,
and to adopt such rules (subject to any rule or order of the Commission
pursuant to the Securities Exchange Act of 1934) as the association may deem
necessary and in the public interest to further the purposes of this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H59418BE40F0C4261A20E5982F41FA6C0"><enum>7209.</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 (as added by
section 7101) the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H2FE564A01BCF43A9A8D7ABC46C123102" style="OLC">
<section id="H0105621279F54C1CB2130883804CBD8F"><enum>4E.</enum><header>Deadline for
completing enforcement investigations and compliance examinations and
inspections</header>
<subsection id="H5C443A2DF94540EBA39D3463268A2ED7"><enum>(a)</enum><header>Enforcement
investigations</header>
<paragraph id="H98F47DCCC4B341E6A9DF844ABDCB1E8A"><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 id="H4A065AE8FFF14F53BB1751E1706B4995"><enum>(2)</enum><header>Exceptions for
certain complex actions</header><text>Notwithstanding paragraph (1), if the
head of any division or office within the Commission or his 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 head of any
division or office within the Commission or his 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 head
of any division or office within the Commission or his 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 head of any division or
office within the Commission or his 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 id="H2C7D66E46D724900BD26F121F879B99D"><enum>(b)</enum><header>Compliance
examinations and inspections</header>
<paragraph id="HFE5F772BC1D84980BA4FFAD2157A1F22"><enum>(1)</enum><header>In
general</header><text>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 without findings or that the staff
requests the entity undertake corrective action.</text>
</paragraph><paragraph id="HF6613AA7995547B293BFEA5BBF9BAB0F"><enum>(2)</enum><header>Exception for
certain complex actions</header><text>Notwithstanding paragraph (1), if the
head of any division or office within the Commission 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 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 id="H9518DE2FC319478188E7450CB9D36862"><enum>7210.</enum><header>Nationwide
service of subpoenas</header>
<subsection id="H9DD22FD3C5254D6AAD62D275D30EF91F"><enum>(a)</enum><header>Securities Act
of 1933</header><text display-inline="yes-display-inline">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, subpoenas issued to compel the attendance of witnesses 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.</quote>.</text>
</subsection><subsection id="HD9E3A492266E4B7F8274E015EC2422A1"><enum>(b)</enum><header>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 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, subpoenas issued to compel the
attendance of witnesses 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.</quote>.</text>
</subsection><subsection id="HD455B6051A444FD69FA75A96BF612C0D"><enum>(c)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">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, subpoenas issued to compel the
attendance of witnesses 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.</quote>.</text>
</subsection><subsection id="HDBB19083459D42EF8BA0B158321EA153"><enum>(d)</enum><header>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 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, subpoenas issued to compel the
attendance of witnesses 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.</quote>.</text>
</subsection></section><section id="H45D2030E94C64716B6D0BB889EB04DE8"><enum>7211.</enum><header>Authority to
impose civil penalties in cease and desist proceedings</header>
<subsection id="H5211CA734F0547A0A243F6E91DC2998B"><enum>(a)</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="HAB63F741A4204ECE8817CB7E4324F7B8" style="OLC">
<subsection id="HC60C314CC68C4FFF8871D14753042885"><enum>(g)</enum><header>Authority to
impose money penalties</header>
<paragraph id="HD2B585AEC9054915885159DFAB5C042D"><enum>(1)</enum><header>Grounds for
imposing</header><text>In any cease-and-desist proceeding under subsection (a),
the Commission may impose a civil penalty on a person if it finds, on the
record after notice and opportunity for hearing, that—</text>
<subparagraph id="H9884F83670D949D4927DD4080B0088DF"><enum>(A)</enum><text>such
person—</text>
<clause id="H2C465C6D511E4CFFAC6FC9FFA1E7004C"><enum>(i)</enum><text>is
violating or has violated any provision of this title, or any rule or
regulation thereunder; or</text>
</clause><clause id="HC78C4CA25C4D4050834491388874166B"><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 id="HA42C736942E547EDA7F11A9A410FA460"><enum>(B)</enum><text>such penalty is in
the public interest.</text>
</subparagraph></paragraph><paragraph id="HBE426361AE2E42C5ABA32BDDD2755F30"><enum>(2)</enum><header>Maximum amount
of penalty</header>
<subparagraph id="H7402A85C569C4FDC82737D2B9D8FD724"><enum>(A)</enum><header>First
tier</header><text>The maximum amount of 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 id="HC1B4402FD9D34F71B13426BAB779649B"><enum>(B)</enum><header>Second
tier</header><text>Notwithstanding paragraph (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 id="H223E14D443AB456E8C0C4B8648C95044"><enum>(C)</enum><header>Third
tier</header><text>Notwithstanding paragraphs (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 id="HC82CD06B5FEB41B5B4F82AD1E524230F"><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 id="HDD168D68E1944C689D14DBF847933DA5"><enum>(ii)</enum><text>such act or
omission directly or indirectly resulted in substantial losses or created a
significant risk of substantial losses to other persons or resulted in
substantial pecuniary gain to the person who committed the act or
omission.</text>
</clause></subparagraph></paragraph><paragraph id="H36C6BABDBBCD47E6AB7AF9B0150180EE"><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 respondent’s ability 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 such
person’s ability to continue in business and the collectability of a penalty,
taking into account any other claims of the United States or third parties upon
such person’s assets and the amount of such person’s
assets.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4283D9A8CED34D6B963745F247265C74"><enum>(b)</enum><header>Under the
Securities Exchange Act of 1934</header><text>Subsection (a) of section 21B of
the Securities Exchange Act of 1934 (15 U.S.C. 78u–2(a)) is amended—</text>
<paragraph id="H79C4261BE2B3497B86A1844F27C0DD35"><enum>(1)</enum><text>by striking
<quote>(a) <header-in-text level="subsection" style="OLC">Commission Authority
To Assess Money Penalties</header-in-text>.—In any proceeding</quote> and
inserting the following:</text>
<quoted-block id="H421EC9F1DE4C45F4B76FEC002C08A2C8" style="OLC">
<subsection id="H5BAE7335E1AA4418AEA69DBE7675FF8F"><enum>(a)</enum><header>Commission
authority To assess money penalties</header>
<paragraph id="HDE662E482F6D42A1B88417B43C2ED7D1"><enum>(1)</enum><header>In
general</header><text>In any
proceeding</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4803BA864B1449A8858581A8C81A101D"><enum>(2)</enum><text>by redesignating
paragraphs (1) through (4) of such subsection as subparagraphs (A) through (D),
respectively, and moving such redesignated subparagraphs and the matter
following such subparagraphs 2 ems to the right; and</text>
</paragraph><paragraph id="HAC1EA8F0AC4D4ACBA2C2FF1D32A7CACB"><enum>(3)</enum><text>by adding at the
end of such subsection the following new paragraph:</text>
<quoted-block id="H2DE5C3E2D2BD4AF89C267FF03C8BE36D" style="OLC">
<paragraph id="HE5F46A42C5A4482F9C3070406458D350"><enum>(2)</enum><header>Cease-and-desist
proceedings</header><text>In any proceeding instituted pursuant to section 21C
of this title against any person, the Commission may impose a civil penalty if
it finds, on the record after notice and opportunity for hearing, that such
person—</text>
<subparagraph id="H09781673BD694673A6B32EE71F9C713A"><enum>(A)</enum><text>is violating or
has violated any provision of this title, or any rule or regulation thereunder;
or</text>
</subparagraph><subparagraph id="HBA6B6AA30AEB4193A44D644A84032BDB"><enum>(B)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
thereunder.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4797D51CCA2741CFA590F293F4BDBF59"><enum>(c)</enum><header>Under the
Investment Company Act of 1940</header><text>Paragraph (1) of section 9(d) of
the Investment Company Act of 1940 (15 U.S.C. 80a–9(d)(1)) is amended—</text>
<paragraph id="H3899756A31964394B15C7B8C8B36169E"><enum>(1)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">Authority of
commission</header-in-text>.—In any proceeding</quote> and inserting the
following:</text>
<quoted-block id="H1A4BA7AB61C241A0AC35C0175BCA08A2" style="OLC">
<paragraph id="H45EE6951EF9843B1BBA895D4BE60C227"><enum>(1)</enum><header>Authority of
commission</header>
<subparagraph id="H89E64A1FC6E04641A7AC40D8DC9D33E3"><enum>(A)</enum><header>In
general</header><text>In any
proceeding</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4DBFD460735F40E69EACA5A2966A66F3"><enum>(2)</enum><text>by redesignating
subparagraphs (A) through (C) of such paragraph as clauses (i) through (iii),
respectively, and by moving such redesignated clauses and the matter following
such subparagraphs 2 ems to the right; and</text>
</paragraph><paragraph id="H3E01988DF792414BB49B433DF8EC95FB"><enum>(3)</enum><text>by adding at the
end of such paragraph the following new subparagraph:</text>
<quoted-block id="HCD377BCA425D44389FC33ED06EAE60DE" style="OLC">
<subparagraph id="H866E8D9E26254301A2BD230CCB19375A"><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 it finds,
on the record after notice and opportunity for hearing, that such
person—</text>
<clause id="H7E94505F0D1E4E0191D42B1FD4FB6654"><enum>(i)</enum><text>is
violating or has violated any provision of this title, or any rule or
regulation thereunder; or</text>
</clause><clause id="HBE2EC0E9E0604AAAA712CA4EA6EBCBD5"><enum>(ii)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
thereunder.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFB55F348D0974ED2B5ADDF6F3C8BEDF6"><enum>(d)</enum><header>Under the
Investment Advisers Act of 1940</header><text>Paragraph (1) of section 203(i)
of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(i)(1)) is
amended—</text>
<paragraph id="HA7F658C05BE443119AD83814C8726A6C"><enum>(1)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">Authority of
commission</header-in-text>.—In any proceeding</quote> and inserting the
following:</text>
<quoted-block id="H2558F63FAD1D427DA96F5A064CDDDCAC" style="OLC">
<paragraph id="H47A3BC1C0DC848778141ED5AADA16939"><enum>(1)</enum><header>Authority of
commission</header>
<subparagraph id="H3BF59E40B5C849D9A426D93262FC72DB"><enum>(A)</enum><header>In
general</header><text>In any
proceeding</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H46E62A7581D8403F8E8DEA0DA9696F33"><enum>(2)</enum><text>by redesignating
subparagraphs (A) through (D) of such paragraph as clauses (i) through (iv),
respectively, and moving such redesignated clauses and the matter following
such subparagraphs 2 ems to the right; and</text>
</paragraph><paragraph id="H97856327FE0642C1BDD8D657F136E082"><enum>(3)</enum><text>by adding at the
end of such paragraph the following new subparagraph:</text>
<quoted-block id="H67893AE3E258448EB4C9F126ED1731AF" style="OLC">
<subparagraph id="HDDECB6DDA03648FF95A2F8303AD795E4"><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 it finds,
on the record after notice and opportunity for hearing, that such
person—</text>
<clause id="H3BA51EAAECFB47388ABA9FC85A80BA85"><enum>(i)</enum><text>is
violating or has violated any provision of this title, or any rule or
regulation thereunder; or</text>
</clause><clause id="H6F3C366997374C4F861B98436F4539B2"><enum>(ii)</enum><text>is or was a cause
of the violation of any provision of this title, or any rule or regulation
thereunder.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H97E34DB45CFB4AD388A64A765E8678E7" section-type="subsequent-section"><enum>7212.</enum><header>Formerly associated
persons</header>
<subsection id="H8575B5A2EB9E433695D375A483C1EDFD"><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 misconduct was, a
member or employee</quote>.</text>
</subsection><subsection id="H77CCD95099AA40D8A277AB6833AB4383"><enum>(b)</enum><header>Person
associated with a government securities broker or dealer</header><text>Section
15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o–5) is amended—</text>
<paragraph id="H406298164F0849C7BDBD638C113E5671"><enum>(1)</enum><text>in subsection
(c)(1)(C), by striking <quote>or seeking to become associated,</quote> and
inserting <quote>seeking to become associated, or, at the time of the alleged
misconduct, associated or seeking to become associated</quote>;</text>
</paragraph><paragraph id="H3CA85EAA6AEC473FAEB2CBB10319CC6C"><enum>(2)</enum><text>in subsection
(c)(2)(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>
</paragraph><paragraph id="HC648D96FCD264605B372BD229B6F597B"><enum>(3)</enum><text>in subsection
(c)(2)(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>
</paragraph></subsection><subsection id="H91C044BDEEAD4707A5E938864DA99E8C"><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 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="HCE0B33447DB846689F3EE3CAF9356534"><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 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="H97040679DA904E318E88E6CC9F9B6B77"><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="H170BB9F24B7E47CFA6D3DBCBC14AA99F"><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="H8DE41C9CC9F3462281F6AAC18AFB496B"><enum>(2)</enum><text>by striking
<quote>such officer or director</quote> and inserting <quote>such
person</quote>.</text>
</paragraph></subsection><subsection id="HBEBC4D09C611453EB9E57B8198A37DD9"><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="H258CFEA33D3E460888CE5CB51044A0BC"><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="HDBFD371DB3C042FEA5B106C5DA6C1571"><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="H29C174D65BFE4D338E640AE1EB086551"><enum>(g)</enum><header>Person
associated with a public accounting firm</header>
<paragraph id="H2DEC8D8CC6274B7AAC35C0DCE25F4CEA"><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 new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H055CD7D07A604F079C806623652383B8" style="OLC">
<subparagraph id="HBAC2CD0BCE67400E935FD20F89C20D2A"><enum>(C)</enum><header>Investigative
and enforcement authority</header><text display-inline="yes-display-inline">For
purposes of the provisions of sections 3(c), 101(c), 105, and 107(c) and Board
or Commission rules 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—</text>
<clause id="HC382DEFB9E174500B0203CF6E8373005"><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, while such person was
associated or seeking to become associated with a registered public accounting
firm; and</text>
</clause><clause id="H074C2BC4E91E49E4AC8653C081850D4E"><enum>(ii)</enum><text>the authority to
commence a proceeding under section 105(c)(1), or impose disciplinary sanctions
under section 105(c)(4), against such person shall apply only on—</text>
<subclause id="H6C9221D7BA614E9FA35ABFC8C6A31893"><enum>(I)</enum><text>the basis of
conduct occurring while such person was associated or seeking to become
associated with a registered public accounting firm; or</text>
</subclause><subclause id="HBE41D52EADD246A1BE5B1DD4AC4619F8"><enum>(II)</enum><text display-inline="yes-display-inline">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="H518C4B248F1E4CE281D58F0C396D0CF7"><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="H73E907AE57984225AF49F476D64D8E09"><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="H557529CD82764464A62BB795B407AC10"><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="HD5D194A3D4C34712A8262F9288C58C7E"><enum>(2)</enum><text>in subparagraph
(B)—</text>
<subparagraph id="H68C4C78F0BFA4076A1B3F5C1BEC21CCC"><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="H5DFAE56A1B8D4C448FDE2C19C9144F5F"><enum>(B)</enum><text>by striking
<quote>any other person</quote> and inserting <quote>any associated
person</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H65EE5B033612487CB39C5D74810B2444"><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="H0FBBC51D2E4F42928EDABB49261BD836"><enum>7213.</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 id="H1810B49E403240C7AEF236DD7F31692E"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively;</text>
</paragraph><paragraph id="H82592D65EE134A1C8CD394BE6C886CC5"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (e), as redesignated, by
striking <quote>as provided in subsection (e)</quote> and inserting <quote>as
provided in subsection (f)</quote>; and</text>
</paragraph><paragraph id="HA353866EFAD74BB783CD0366582222A6"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subsection (c) the
following new subsection:</text>
<quoted-block id="H1E71837FBE274CEB95D2F8F2F55D9722" style="OLC">
<subsection id="H7ED0F8653CEE4B27BAEBBC12643D24B1"><enum>(d)</enum><header>Sharing
privileged information with other authorities</header>
<paragraph id="H084F6233AAA7442FA94192EBA8A4C258"><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="H7B1A9187746C46BCB823EA31BD007587"><enum>(A)</enum><text>any agency (as
defined in section 6 of title 18, United States Code);</text>
</subparagraph><subparagraph id="H2688597FF5E04F27AA2E6B91A2B02A3C"><enum>(B)</enum><text>any foreign
securities authority;</text>
</subparagraph><subparagraph id="HAD5D3404CCFA48EBA0D102EE7F939137"><enum>(C)</enum><text display-inline="yes-display-inline">the Public Company Accounting Oversight
Board;</text>
</subparagraph><subparagraph id="H84351CFE6F744B7C817BC2FBDA014F8F"><enum>(D)</enum><text>any
self-regulatory organization;</text>
</subparagraph><subparagraph id="H862410C69DBD4CC0ABBD4779708AFE6A"><enum>(E)</enum><text>any foreign law
enforcement authority; or</text>
</subparagraph><subparagraph id="H668C620B704B40E9949F4473BFC27050"><enum>(F)</enum><text>any State
securities or law enforcement authority.</text>
</subparagraph></paragraph><paragraph id="H973579C4B9AC4E3D9338A7E33A8E7C4B"><enum>(2)</enum><header>Non-disclosure
of privileged information provided to the commission</header><text>Except as
provided in subsection (f), 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="HF48B3D81D4F84F268AD8C54DA1177913"><enum>(3)</enum><header>Non-waiver of
privileged information provided to the commission</header>
<subparagraph id="HE5BF36EF19C74016BD352E026CA3FA4D"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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="HC111182984854502BCC981CBFFA000B7"><enum>(B)</enum><header>Exception with
respect to certain actions</header><text display-inline="yes-display-inline">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="HCCB46B73405343FAA795C54E1276DDA3"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this subsection:</text>
<subparagraph id="H3ED2DDDC64AE4B7ABC6D6BA278C4823A"><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,
foreign, or State law.</text>
</subparagraph><subparagraph id="H6546414C0524443B893EF0DAE8CEA25B"><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.</text>
</subparagraph><subparagraph id="HA154AD112EA44D9FA5E12FD6FCBA7BCF"><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="H47A07C955D1A49B08A8BBB028D9FF8B0"><enum>7214.</enum><header>Expanded
access to grand jury material</header>
<subsection id="HE712DA131B55432BB86C7FA421050062"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title VI of the
Sarbanes-Oxley Act of 2002 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H4AA28E1124AC4E458B6008C08CAA1C81" style="OLC">
<section id="H5B47E4FE24A64D8DA710585DE6009C11"><enum>605.</enum><header>Access to grand
jury information</header>
<subsection id="H98C1BC5394DD451289838117BF529C08"><enum>(a)</enum><header>Disclosure</header>
<paragraph id="H8BDB8D16A1A04F8E8BCB6CA01BDA92BA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Upon motion of an
attorney for the government, a court may direct disclosure of matters occurring
before a grand jury during an investigation of conduct that may constitute a
violation of any provision of the securities laws to the Commission for use in
relation to any matter within the jurisdiction of the Commission.</text>
</paragraph><paragraph id="HC4A378F136E445AFB21004601ADF83ED"><enum>(2)</enum><header>Substantial need
required</header><text display-inline="yes-display-inline">A court may issue an
order under paragraph (1) only upon a finding of a substantial need in the
public interest.</text>
</paragraph></subsection><subsection id="H269B6D24D58B49CAB86A5C18388DE86F"><enum>(b)</enum><header>Use of
matter</header><text display-inline="yes-display-inline">A person to whom a
matter has been disclosed under this section shall not use such matter other
than for the purpose for which such disclosure was authorized.</text>
</subsection><subsection id="HEA3EA5216E504C6BB83C0E354886E595"><enum>(c)</enum><header>Definitions</header><text>As
used in this section, the terms <quote>attorney for the government</quote> and
<quote>grand jury information</quote> have the meanings given to those terms in
section 3322 of title 18, United States
Code.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H677054EB2C6A47FAB0EDD0A4CB6127ED"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of contents in section 1(b) of the
Sarbanes-Oxley Act of 2002 is amended by inserting after the item relating to
section 604 the following:</text>
<quoted-block display-inline="no-display-inline" id="H09AF097B533449AA983E852AA70F188D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 605. Access to grand jury
information.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD2955FB13639426B8F12EE5291F80471"><enum>7215.</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 “or recklessly” after
“knowingly”.</text>
</section><section id="H0DAB1B836D24425C987701A749D128D1"><enum>7216.</enum><header>Extraterritorial
jurisdiction of the antifraud provisions of the Federal securities
laws</header>
<subsection id="H33357A6C68CF4D9DB314739EF99B7C32"><enum>(a)</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="H43D8A7CACC7043ADAB175FFA5BB25040" style="OLC">
<subsection id="H5CD12338AEB14E8D9851BCF7E428DE8E"><enum>(c)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The jurisdiction
of the district courts of the United States and the United States courts of any
Territory described under subsection (a) includes violations of section 17(a),
and all suits in equity and actions at law under that section,
involving—</text>
<paragraph id="H3FFFDD35788E4F6AACA3A399077AA5AB"><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 id="H9DFB1E86A0D94F0888F4E0E767351ED5"><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>
</subsection><subsection id="HE385AE111B7B44588A26B068FE80CD5D"><enum>(b)</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>
<paragraph id="H518DCC88BD474A4C9153C196BD3A25D1"><enum>(1)</enum><text>by striking
<quote>The district</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5F1E8A78B3C446249CF7E58614A10D74" style="OLC">
<subsection id="HE309451F92954E90B702D22373F32F74"><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>
</paragraph><paragraph id="H744095C2CB3A4019B9DAFF024B1191CF"><enum>(2)</enum><text>by inserting at
the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H87C8A328EBD5436882E24504ADD4073B" style="OLC">
<subsection id="H305B457BAC434369948D46819F79FF92"><enum>(b)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The jurisdiction
of the district courts of the United States and the United States courts of any
Territory or other place subject to the jurisdiction of the United States
described under subsection (a) includes violations of the antifraud provisions
of this title, and all suits in equity and actions at law under those
provisions, involving—</text>
<paragraph id="H1B1D1898A58049219B6AF3EB1A65153B"><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 id="H9783AF82CEE14843B9C6C2D05D5338BD"><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></subsection><subsection id="H93D957D19AB64599AEAD691734A728C7"><enum>(c)</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>
<paragraph display-inline="no-display-inline" id="H70FC8263CFFC4937964AD1366A92067D"><enum>(1)</enum><text>by striking
<quote>The district</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE4C6C51AA711417F9C7775B7E8D507E1" style="OLC">
<subsection id="H769FF2F1772E4B399A89381CF352AB62"><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>
</paragraph><paragraph id="H01A95D62083B446AA257671056CA7A5A"><enum>(2)</enum><text>by inserting at
the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6DE77532437D41BE99394D2E3A030514" style="OLC">
<subsection id="H20DD6A5D81924CAF9B4EAE0C5C575E49"><enum>(b)</enum><header>Extraterritorial
jurisdiction</header><text display-inline="yes-display-inline">The jurisdiction
of the district courts of the United States and the United States courts of any
Territory or other place subject to the jurisdiction of the United States
described under subsection (a) includes violations of section 206, and all
suits in equity and actions at law under that section, involving—</text>
<paragraph id="H1FC86FCA892441DC8BDB6B0D15D4F02E"><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 id="HEA41E434D19B4C8896B3AAD74BFC5AA5"><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></subsection></section><section id="HDF81CB088FC542D780AFD99F694C3E9F"><enum>7217.</enum><header>Fidelity
bonding</header><text display-inline="no-display-inline">Section 17(g) of the
Investment Company Act of 1940 (15 U.S.C. 80a–17(g)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H905C300DE597442A9A04D329BFACA5C9" style="OLC">
<subsection id="HA97893FC6C3349E99CD2F7F5CEBC34E9"><enum>(g)</enum><header>Fidelity
bonding</header>
<paragraph id="HB5A0EED1A71447D4945609925D0B5FCF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission is
authorized to require that a registered management company provide and maintain
a fidelity bond against loss as to any officer or employee who has access to
securities or funds of the company, either directly or through authority to
draw upon such funds or to direct generally the disposition of such securities
(unless the officer or employee has such access solely through his position as
an officer or employee of a bank), in such form and amount as the Commission
may prescribe by rule, regulation, or order for the protection of
investors.</text>
</paragraph><paragraph id="H11CFA49790C246D7BDE713AB38E2E17D"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection:</text>
<subparagraph id="H8A978C0138DD4058AF8A44885B0A5E1F"><enum>(A)</enum><header>Management
company</header><text display-inline="yes-display-inline">The term
<quote>management company</quote> has the meaning given such term under section
4 of the Investment Company Act of 1940.</text>
</subparagraph><subparagraph id="HAEDEADF60F524303B133DBFBBF80E21C"><enum>(B)</enum><header>Officer or
employee</header><text>The term <term>officer or employee</term> means—</text>
<clause id="HC455C45A05C743C1AADEB62354617A25"><enum>(i)</enum><text>any officer or
employee of the management company; and;</text>
</clause><clause id="H56631D6F607948C09DE15E5D8A068429"><enum>(ii)</enum><text display-inline="yes-display-inline">any officer or employee of any investment
adviser to the management company, or of any affiliated company of any such
investment adviser, as the Commission may prescribe by rule, regulation, or
order for the protection of investors.</text>
</clause></subparagraph><subparagraph id="HDB2BDC4835034A338702390E8E68F657"><enum>(C)</enum><header>Other
definitions</header><text display-inline="yes-display-inline">The terms
<quote>affiliated company</quote> and <quote>investment adviser</quote> shall
have the meaning given such terms under section 2 of the Investment Company Act
of
1940.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HF98491175A1147E8809FC1813FC0152A"><enum>7218.</enum><header>Enhanced SEC
authority to conduct surveillance and risk assessment</header>
<subsection id="HDAD93049273A4D1B95E4A62291A6643A"><enum>(a)</enum><header>Securities
Exchange Act of 1934 amendments</header><text display-inline="yes-display-inline">Section 17(b) of the Securities Exchange
Act of 1934 (15 U.S.C. 78q(b)) is amended by adding at the end the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3390FB87E6874527B2D6E905A915DA92" style="OLC">
<paragraph id="HE53B973948044D968D4BA1960F833CC4"><enum>(5)</enum><header>Surveillance and
risk assessment</header><text display-inline="yes-display-inline">All persons
described in subsection (a) of this section are subject at any time, or from
time to time, to such reasonable periodic, special, or other information and
document requests by representatives of the Commission as the Commission by
rule or order deems necessary or appropriate to conduct surveillance or risk
assessments of the securities markets, persons registered with the Commission
under this title, or otherwise in furtherance of the purposes of this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H21B62C8352B44D7A892ACE273E0B3286"><enum>(b)</enum><header>Investment
Company Act of 1940 amendments</header><text display-inline="yes-display-inline">Section 31(b) of the Investment Company Act
of 1940 (15 U.S.C. 80a–30(b)), as amended by section 7106(a)(2), is further
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H21D2D5E72AE44EF3A8971D9532FB6301" style="OLC">
<paragraph id="H35DE6E28D99649F59457985DE2C00E77"><enum>(5)</enum><header>Surveillance and
risk assessment</header><text display-inline="yes-display-inline">All persons
described in paragraph (1) are subject at any time, or from time to time, to
such reasonable periodic, special, or other information and document requests
by representatives of the Commission as the Commission by rule or order deems
necessary or appropriate to conduct surveillance or risk assessments of the
securities markets, persons registered with the Commission under this title, or
otherwise in furtherance of the purposes of this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE88032DC93D34379A8DABBCF9C1FE2D2"><enum>(c)</enum><header>Investment
Advisers Act of 1940 amendments</header><text>Section 204 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b–4), as amended by section 7106(b), is
further amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H59877F15C586474194D81373A8822B0C" style="OLC">
<subsection id="H62B078566DA5493CB2A4A7D969A9413F"><enum>(e)</enum><header>Surveillance and
risk assessment</header><text display-inline="yes-display-inline">All persons
described in subsection (a) are subject at any time, or from time to time, to
such reasonable periodic, special, or other information and document requests
by representatives of the Commission as the Commission by rule or order deems
necessary or appropriate to conduct surveillance or risk assessments of the
securities markets, persons registered with the Commission under this title, or
otherwise in furtherance of the purposes of this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H40E8AA22656446B98CDB2F54187607D2"><enum>7219.</enum><header>Investment
company examinations</header><text display-inline="no-display-inline">Section
31(b)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a–30) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3E9D05D7FD764D2EB4A9AB784E2FE9E5" style="OLC">
<paragraph id="HE944D6FD99464F3AA5767416194735F8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">All records of each
registered investment company, and each underwriter, broker, dealer, or
investment adviser that is a majority-owned subsidiary of such a company, shall
be subject at any time, or from time to time, to such reasonable periodic,
special, or other examinations by representatives of the Commission as the
Commission deems necessary or appropriate in the public interest or for the
protection of
investors.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H990ADACA504C4E1E991142DBE4B7C387"><enum>7220.</enum><header>Control person
liability under the Securities Exchange Act</header><text display-inline="no-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>
</section><section id="H84C0C3FE972B47A4B27F0C1AA444F64C"><enum>7221.</enum><header>Enhanced
application of anti-fraud 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="H34ECCD6A1EE941C3A198CCB8FD6623FD"><enum>(1)</enum><text>in section
9—</text>
<subparagraph id="HC1910BCCF4B44E06870C75FC91EDFCA2"><enum>(A)</enum><text>by striking
<quote>registered on a national securities exchange</quote> each place it
appears and inserting <quote>other than a government security</quote>;</text>
</subparagraph><subparagraph id="HB4B9CC92F0A142F5BF80F89C089995E9"><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="H645A93AE4DDD4D979056FD8283CD070E"><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="HE9F35EC4764B4300B60E38DB9212CA45"><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 id="HBCC3AD1C39AE48C8BD95BCA98EB49C9C"><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 id="HD914993D997C4D689354E2D7B9331BDD"><enum>7222.</enum><header>SEC authority
to issue rules on proxy access</header><text display-inline="no-display-inline">Section 14(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78n(a)) is amended—</text>
<paragraph id="H5D991B7676FC4E08B45D1FF17D0AF891"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> after <quote>(a)</quote>; and</text>
</paragraph><paragraph id="H44E5D5A8FD69471F816C0D9A70F9A57F"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H299818AD5AAE4B66A759E3F0D7CB3313" style="traditional">
<paragraph id="HD146789484634E3BBADCEF7DAE501541" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The authority of the Commission to
prescribe rules and regulations under paragraph (1) includes rules and
regulations that require the inclusion and set procedures relating to the
inclusion, in a solicitation of a proxy or consent or authorization by or on
behalf of an issuer, of a nominee or nominees submitted by shareholders to
serve on the issuer’s board of
directors.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></part><part id="HAEB48D3F922E45E68CEE0884C653C3E2"><enum>3</enum><header>Commission funding
and organization</header>
<section commented="no" id="H397F02C711BF4564B6D424138C4C7190"><enum>7301.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">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="H492DC444CC824456935DAA1BF841705B" style="OLC">
<section commented="no" id="HF6B6E35C61B94A308FF4A0FEE582A50D"><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 commented="no" id="HD46D71C0A5654DC6A2ED1232C7B83D5B"><enum>(1)</enum><text>for fiscal year
2010, $1,115,000,000;</text>
</paragraph><paragraph commented="no" id="H08D9E7BD55284D7AAB28E9B53B45253A"><enum>(2)</enum><text>for fiscal year
2011, $1,300,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDAB02E2A6E1649E8A7C52DD19E26467A"><enum>(3)</enum><text>for fiscal year
2012, $1,500,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0A5F11D242D4C32BB1BB15D6F7FCCE3"><enum>(4)</enum><text>for fiscal year
2013, $1,750,000,000;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E1E3103036146DDBC983EAAFCB58745"><enum>(5)</enum><text>for fiscal year
2014, $2,000,000,000; and</text>
</paragraph><paragraph id="H3739DCE12CC243B5AF56D2C017FB0162"><enum>(6)</enum><text>for fiscal year
2015,
$2,250,000,000.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H54300DCB53494DEFA60C4F7D107707DB"><enum>7302.</enum><header>Investment
adviser regulation funding</header><text display-inline="no-display-inline">Section 203 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–3) (as amended by sections 5006 and 5007) is further
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HBB685E12238A40C09EF656F06782C236" style="OLC">
<subsection id="H28D682241CB14866BD16CC2059575975"><enum>(o)</enum><header>Annual
assessment</header>
<paragraph id="H3DD80DBB60D34E7986B0754B0EA580FC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission shall,
in accordance with this subsection, promulgate rules pursuant to which it may
collect from investment advisers required to register with the Commission under
this title, fees designed to help recover the cost of inspections and
examinations of registered investment advisers conducted by the Commission
pursuant to this title.</text>
</paragraph><paragraph id="H5C392915601F4F96B9875A3767DD5366"><enum>(2)</enum><header>Fee payment
required</header><text>An investment adviser shall, at the time of registration
with the Commission, and each fiscal year thereafter during which such adviser
is so registered, pay to the Commission a fair and reasonable fee determined by
the Commission. In determining such fee, the Commission shall consider
objective factors such as—</text>
<subparagraph id="H013F351491FF46129CF6BFB06BF965C3"><enum>(A)</enum><text>the investment
adviser’s size;</text>
</subparagraph><subparagraph id="HACAAEAEC16DC439088F3B14F9A6ED3E5"><enum>(B)</enum><text>the number of
clients of the investment adviser;</text>
</subparagraph><subparagraph id="H73FCCD0B38C44109BF121395A00D73DF"><enum>(C)</enum><text>the types of
clients of the investment adviser; and</text>
</subparagraph><subparagraph id="H86B5C67EE4204EE18F8C90D1FE6AE969"><enum>(D)</enum><text>such other
relevant factors as the Commission determines to be appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" id="H435905AC9A34406BA3546EBB3C476A1A"><enum>(3)</enum><header>Amount and use
of fees</header>
<subparagraph commented="no" id="HDA8C403E6D5548658B14CE275C36467E"><enum>(A)</enum><header>Minimum
aggregate amount</header><text display-inline="yes-display-inline">The
aggregate amount of fees determined by the Commission under this subsection for
any fiscal year shall be greater than the amount the Commission spent on
inspections and examinations of registered investment advisers during the 2009
fiscal year.</text>
</subparagraph><subparagraph commented="no" id="HDF1FE9BD053F4DFFB7E98849428932AB"><enum>(B)</enum><header>Excess
fees</header><text>The Commission may retain any excess fees collected under
this subsection during a fiscal year for application towards the costs of
inspections and examinations of investment advisers in future fiscal
years.</text>
</subparagraph></paragraph><paragraph id="H5734B103A2B243B988952AE964D2141B"><enum>(4)</enum><header>Review and
adjustment of fees</header><text>The Commission may review fee rates
established pursuant to this section before the end of any fiscal year and make
any appropriate adjustments prior to collecting any such fee in the following
fiscal year.</text>
</paragraph><paragraph id="H283F349556ED45D5B7E24456271C9144"><enum>(5)</enum><header>Penalty
fee</header><text display-inline="yes-display-inline">The Commission shall
prescribe by rule or regulation an additional fee to be assessed as a penalty
for late payment of fees required by this subsection.</text>
</paragraph><paragraph id="HB25961AA8BA34B31B85B52410B285D0B"><enum>(6)</enum><header>Judicial
review</header><text>Increases or decreases in fees made pursuant to this
section shall not be subject to judicial
review.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H66A230ED50314C8A8AD2B3EA8632766C"><enum>7303.</enum><header>Amendments to
section 31 of the Securities Exchange Act of 1934</header><text display-inline="no-display-inline">Section 31 of the Securities Exchange Act of
1934 (15 U.S.C. 78ee) is amended—</text>
<paragraph id="H4687FF9210854A14923E51119AD1AC2A"><enum>(1)</enum><text>in subsection
(e)(2), by striking <quote>September 30</quote> and inserting <quote>September
25</quote>;</text>
</paragraph><paragraph id="HA82A041E9190439C8B42AFD4E0FE25CC"><enum>(2)</enum><text>in subsection (g),
by striking <quote>April 30</quote> and inserting <quote>August 31</quote>;
and</text>
</paragraph><paragraph id="H40D29AC10CB14AEB8AEE3C36F99D3925"><enum>(3)</enum><text>in subsection
(j)(2)—</text>
<subparagraph id="H8B636FAFA69D483D804E8C85D56EFF4E"><enum>(A)</enum><text>by striking
<quote>5 months</quote> and inserting <quote>4 months</quote>; and</text>
</subparagraph><subparagraph id="HE4D4D80FF48D4FCA80CD0A54FC6646B9"><enum>(B)</enum><text>by striking
<quote>(including fees collected during such 5-month period and assessments
collected under subsection (d))</quote> and inserting <quote>(including fees
estimated to be collected under subsections (b) and (c) prior to the effective
date of the uniform adjusted rate and assessments estimated to be collected
under subsection (d))</quote>.</text>
</subparagraph></paragraph></section><section id="H47F38FEEA9464A3EB886A771C3967D6A"><enum>7304.</enum><header>Commission
organizational study and reform</header>
<subsection id="HDE9FB97596BD43DDA21A6CA07B840C87"><enum>(a)</enum><header>Study
required</header>
<paragraph id="HB1CC5C3BDBC44282AEE9C8174DBACE56"><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 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 id="HBE6E0582530648848A554BB907EDC8FD"><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 id="H284A9D96F88341CCAE56355515A095EA"><enum>(A)</enum><text display-inline="yes-display-inline">the possible elimination of unnecessary or
redundant units at the SEC;</text>
</subparagraph><subparagraph id="HD2C29B2448404163A09C0A19A600200B"><enum>(B)</enum><text>improving
communications between SEC offices and divisions;</text>
</subparagraph><subparagraph id="H9EC716944B414B7491B13E64D4996B28"><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 id="HC282F99276D3483ABA2FC8713EBAD618"><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 id="HFF0FC9290E3E479994CFEE972E6B1076"><enum>(E)</enum><text>the SEC’s hiring
authorities, workplace policies, and personal practices, including—</text>
<clause id="H2812B062F2C54CD38F679D8C97F01543"><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 id="H1C05756F6956431B8D3CAAAFCEFF44EE"><enum>(ii)</enum><text>whether there is
a need for further pay reforms;</text>
</clause><clause id="H8BB6EC53E36B4C48AD71DD75925769E8"><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 id="H6FDD599A0F2047D4BD9A5037BC781C84"><enum>(iv)</enum><text>the
application of civil service laws by the SEC;</text>
</clause></subparagraph><subparagraph id="H10271A38620949388AEB3E9F02373BCB"><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 id="H27A6C1284DC746EC8EA5D92E60D63668"><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 id="HAEEF1646BFF14326A7C407DD6F823F63"><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 id="HA83E2062BE454BEE9C416F44E1F65DE7"><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);</text>
</paragraph><paragraph id="H5120CF7CCF3047C9BCA6331E2E01202C"><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 it reports
to perform their statutorily or otherwise mandated missions.</text>
</paragraph></subsection><subsection id="HBB2025CC06B9439192FC88DDCCE5746B"><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 id="HFA5F2EE9A15846A19A19B50453F6978D"><enum>7305.</enum><header>Capital
Markets Safety Board</header><text display-inline="no-display-inline">There is
established within the Securities and Exchange Commission an office to be known
as the Capital Markets Safety Board whose purpose shall be to conduct
investigations, at the direction of the Commission, of failed institutions
registered with the Commission, to determine what caused such institutions to
fail. Upon the conclusion of an investigation, the Board shall make available
on the Commission’s website a report of its findings, including recommendations
regarding how others can avoid similar mistakes. No information that may
compromise an ongoing Federal investigation shall be made available in any such
report.</text>
</section><section id="HE82AFB7CEBBD4A69BC0DBE90A39DD4BF"><enum>7306.</enum><header>Report on
implementation of <quote>post-Madoff reforms</quote></header>
<subsection id="HAD5B2A6D255D4DE68667FE170950E711"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 6
months after the date of the enactment of this subtitle, the Securities and
Exchange Commission shall provide 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 describing the implementation of reforms
outlined by the Commission in the wake of the discovery of fraud by Bernie
Madoff.</text>
</subsection><subsection id="H711ED581F8854E9DA8E28BAED0DE72B5"><enum>(b)</enum><header>Contents of
report</header><text>The report required by subsection (a) shall include an
analysis of—</text>
<paragraph id="HC3ACC30EB50B49FFBEA887680A25D6D4"><enum>(1)</enum><text>how many of the
post-Madoff reforms have been implemented and to what extent; and</text>
</paragraph><paragraph id="HA18126EAB87C43B692B6F7E573646089"><enum>(2)</enum><text>whether there is
overlap between any of the Commission’s reform proposals and those recommended
by the Inspector General of the Commission.</text>
</paragraph></subsection><subsection id="HAC0FAA55FA324DA09858C4DC09E1680A"><enum>(c)</enum><header>Publication of
report</header><text>The Commission and the Committees referred to in
subsection (a) shall publish the report required by such subsection on their
Web sites.</text>
</subsection></section><section id="H9626E95ECBEA4BB1ADD4D84320ABACE1"><enum>7307.</enum><header>Joint Advisory
Committee</header><text display-inline="no-display-inline">The Securities and
Exchange Commission and the Commodities Futures Trading Commission may jointly
form and operate a joint advisory committee composed of members of each
Commission and industry experts and participants. The purposes of such an
advisory committee include—</text>
<paragraph id="H6951D056494344B8B3D6C19F9DF3E01F"><enum>(1)</enum><text>considering and
developing solutions to emerging and ongoing issues of common interest in the
futures and securities markets;</text>
</paragraph><paragraph id="HD0998438B7284B5292ACA5199A5289BB"><enum>(2)</enum><text>identifying
emerging regulatory risks and assess and quantify their implications for
investors and other market participants, and provide recommendations for
solutions;</text>
</paragraph><paragraph id="H5DFFB670EB4C4A1A80E93DF6695D760E"><enum>(3)</enum><text>serving as a
vehicle for discussion and communication on regulatory issues of mutual
concerns affecting each Commission, the regulated markets, and the industry
generally; and</text>
</paragraph><paragraph id="H54699C731DAD4F56ACB92126A04723E2"><enum>(4)</enum><text>reporting
regularly to each Commission and to Congress on its activities.</text>
</paragraph></section></part><part id="H27267C7E5E1243598AF866E5ABCEC5A8"><enum>4</enum><header>Additional
Commission reforms</header>
<section id="H3BF76CD7049648168528A332AD9CD297"><enum>7401.</enum><header>Regulation of
securities lending</header><text display-inline="no-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 new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H970298985CE14DEAA90234EBFA378E66" style="OLC">
<subsection id="H507B8B8FC9F54A51837847C98F72EEA5"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HEB17B0E9317E4FD8AAD3E312E83CDB3E"><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>
</paragraph><paragraph id="H6FBA72C8CE874A55B2B2E3504765ED78" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Nothing in paragraph (1) shall be construed
to limit the authority of an appropriate Federal banking agency (as defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(q))), the
National Credit Union Administration, or any other Federal department or agency
identified under law as having a systemic risk responsibility from prescribing
rules or regulations to impose restrictions on 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>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC15BEFA99DD24D639292E9F6DD410BD0"><enum>7402.</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="H8E186A4D08FD4368B4E072B562C3BFFF"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>missing, lost, counterfeit, or stolen securities</quote> and inserting
<quote>securities that are missing, lost, counterfeit, stolen, cancelled, or
any other category of securities as the Commission, by rule, may
prescribe</quote>; and</text>
</paragraph><paragraph id="HF7AAE1DD32B143D0B6F878E8B5FC9557"><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 id="H178A476736B14960A80E9B176C9E5086"><enum>7403.</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 id="H424DE62B23A6441BB38EE6A75FC48DB3"><enum>(1)</enum><text>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" id="H54BCAE1CFD064C29B920B6BFB7DEFE98"><enum>(2)</enum><text>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 id="H98FDC85CE5234E698E55B46DEF949185"><enum>7404.</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="H9E34091C58C14589B84FE05E69B2E736"><enum>7405.</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—</text>
<paragraph id="H036CB9E550304524AFA8CC2DD9944F97"><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="H1F39B303FA7343988A266C6D00C60486"><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="H055B0E0A7E454A7EA553C01E1D1A816A"><enum>(3)</enum><text>by striking
<quote>to</quote> after <quote>in any way</quote>.</text>
</paragraph></section><section id="H8F04E070BE3742C09D02BF968C500D5A"><enum>7406.</enum><header>Conforming
amendments for the repeal of the Public Utility Holding Company Act of
1935</header>
<subsection id="H6DDE4D29D104415CACD3A048C80D64BB"><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="H204FE61F263D49F8B881D5C92081E81A"><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>; and</text>
</paragraph><paragraph id="H03A88EDAB9E549F49C31BF1E18E4E27B"><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="H989C2E17ABD54EC18EF8F397D1787A6A" style="OLC">
<paragraph id="H615B925FB0DA408FBAF44A1F708C3971"><enum>(7)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>emergency</term> means—</text>
<subparagraph id="HC2E52A9B550C4E64A62EA449F945C9D4"><enum>(A)</enum><text>a major market
disturbance characterized by or constituting—</text>
<clause id="H5380DB6381D349CC89B646F766760AE1"><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="H9035BA5AFEE1434C87761D0EFEA7B580"><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="HE056818CF09847B8A25BED98795FB028"><enum>(B)</enum><text>a major
disturbance that substantially disrupts, or threatens to substantially
disrupt—</text>
<clause id="H09421BB1D4F64ECDABCD09E1EE3F9E44"><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="H8FDDD20E08FD4E2894899DD5AC300950"><enum>(ii)</enum><text>the transmission
or processing of securities
transactions.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7758A23E2CED4948B07574255422A693"><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="H8A9C25C91B4C42DEA78A0F6DB452DA4C"><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="HAB6AAED5FE764119ACE5ECA396DC78CF"><enum>(1)</enum><text display-inline="yes-display-inline">in section 303 (15 U.S.C. 77ccc), by
amending paragraph (17) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEDB3D91392AF46A28AC7E1754E870179" style="OLC">
<paragraph id="H1CF606A7A61E400CA27402DD93780626"><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="H441C79B6F4A441FB86A65A4E61BC449A"><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 it appears
and inserting <quote>Securities Act of 1933 or the Securities Exchange Act of
1934</quote>;</text>
</paragraph><paragraph id="HEE9B8F06EDE144BBABB7D56F92CC14B6"><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="HB0A2237282D14CFD8F420DCCBA3DF238"><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="HD3725D3E04234D20B8BED8531DEEB710"><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="HBA1365B96FD148F98591A877A803637C"><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="H2F20ADF59F6E478F99392C18BEDB4BFF"><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="H9DE859BF09654CC2B533BE388BA79E60"><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="H2AEBC9D59596446AB16526108F083F87"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3(c) (15 U.S.C. 80a–3(c)), by
amending paragraph (8) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0334B35B45C141A883C87DA0678D9B23" style="OLC">
<paragraph id="HB1A43619F02243A3A182CE19AD7F3ADE"><enum>(8)</enum><text>[Repealed]</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4AC6ECB0AB0A4C10BE6C35427E46805C"><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="H2083DA2813F24BD5AF10D97E114354EF"><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 id="HC4399B778D3D498DA51FDB3D1E66879F"><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="H5004C8ADF6CD424CB409B16768F793CC"><enum>7407.</enum><header>Promoting
transparency in financial reporting</header>
<subsection id="H0EAB35BBDBFD46969DF7A58DE70EF76A"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="HB4ECEA92CD4942AAB4118E3DA100C167"><enum>(1)</enum><text>Transparent and
clear financial reporting is integral to the continued growth and strength of
our capital markets and the confidence of investors.</text>
</paragraph><paragraph id="H762815B5575D46CC90A2035925347A2D"><enum>(2)</enum><text>The increasing
detail and volume of accounting, auditing, and reporting guidance pose a major
challenge.</text>
</paragraph><paragraph id="HFA93CF79EF3842CE8BAF27589D69712C"><enum>(3)</enum><text>The complexity of
accounting and auditing standards in the United States has added to the costs
and effort involved in financial reporting.</text>
</paragraph></subsection><subsection id="HEE3F35C2B8D44118B93CE2DCBF2A328C"><enum>(b)</enum><header>Testimony
required on reducing complexity in financial reporting</header><text>The
Securities and Exchange Commission, the Public Company Accounting Oversight
Board, and the standard setting body designated pursuant to section 19(b) of
the Securities Act of 1933 shall annually provide oral testimony by their
respective Chairpersons or a designee of the Chairperson, beginning in 2010,
and for 5 years thereafter, to the Committee on Financial Services of the House
of Representatives on their efforts to reduce the complexity in financial
reporting to provide more accurate and clear financial information to
investors, including—</text>
<paragraph id="HC9024ED9FE3C428A90E6C7E502241EC0"><enum>(1)</enum><text>reassessing
complex and outdated accounting standards;</text>
</paragraph><paragraph id="H0DB72462D27E438C8D5120914BDA5B3B"><enum>(2)</enum><text>improving the
understandability, consistency, and overall usability of the existing
accounting and auditing literature;</text>
</paragraph><paragraph id="HF2EF291BD24442E59B63850AA5CCABB4"><enum>(3)</enum><text>developing
principles-based accounting standards;</text>
</paragraph><paragraph id="H78B75047FFCE4801A9D7CF50864506B4"><enum>(4)</enum><text>encouraging the
use and acceptance of interactive data; and</text>
</paragraph><paragraph id="H9FEFB2865DCA4944A590B48E3F04300A"><enum>(5)</enum><text>promoting
disclosures in <quote>plain English</quote>.</text>
</paragraph></subsection></section><section id="H34F5F74628A74EB6B1BC38E17DCE120A"><enum>7408.</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="H7BCEC2D19AF04C7883E89E1EF7C9156A"><enum>7409.</enum><header>Protecting
confidentiality of materials submitted to the Commission</header>
<subsection id="H8CD6C0E3449045F2ACF4403AA00E8DD3"><enum>(a)</enum><header>Securities
Exchange Act of 1934</header><text>Section 17(i) of the Securities Exchange Act
of 1934 (as amended by section 1314(2)) is amended to read as follows:</text>
<quoted-block id="H6FE726CE3E93419A9C5F952D9015D1E3" style="OLC">
<subsection id="H1E9132EDDCF04007BC21E6E86114F7AE"><enum>(i)</enum><header>Authority To
limit disclosure of information</header>
<paragraph id="H22E0D334D6FA46F79D6247BD35AF920C"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any information, documents,
records, or reports that relate to an examination, surveillance, or risk
assessment of a person subject to or described in this section, or the
financial or operational condition of such persons, or any information supplied
to the Commission by any domestic or foreign regulatory agency or
self-regulatory organization that relates to the financial or operational
condition of such persons, of any associated person of such persons, or any
affiliate of an investment bank holding company.</text>
</paragraph><paragraph id="HE51C157328C74EABAFF3F33D4D7CFE5C"><enum>(2)</enum><header>Certain
exceptions</header><text display-inline="yes-display-inline">Nothing in this
subsection shall authorize the Commission to withhold information from the
Congress, prevent the Commission from complying with a request for information
from any other Federal department or agency, the Public Company Accounting
Oversight Board, or any self-regulatory organization requesting the information
for purposes within the scope of its jurisdiction, or prevent the Commission
from complying with an order of a court of the United States in an action
brought by the United States or the Commission against a person subject to or
described in this section to produce information, documents, records, or
reports relating directly to the examination, surveillance, or risk assessment
of that person or the financial or operational condition of that person or an
associated or affiliated person of that person.</text>
</paragraph><paragraph id="H680A0E037F33480C908AC6F9563EE139"><enum>(3)</enum><header>Treatment under
section 552 of title 5, United States Code</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 that section.</text>
</paragraph><paragraph id="H6BDB4B4A7EB743ABAB56C4F3D0E1717D"><enum>(4)</enum><header>Certain
information to be confidential</header><text>In prescribing regulations to
carry out the requirements of this subsection, the Commission shall designate
information described in or obtained pursuant to subparagraphs (A), (B), and
(C) of subsection (i)(3) as confidential information for purposes of section
24(b)(2) of this
title.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA5C4145E871B4A988F4814D01AA8EF1D"><enum>(b)</enum><header>Investment
Company Act of 1940</header><text>Section 31(b) of the Investment Company Act
of 1940 (15 U.S.C. 80a–30(b)), as amended by sections 7106(a)(2) and
7218(b)(4), is further amended by adding at the end the following new
paragraph:</text>
<quoted-block id="HDEBD353F62CA4FADB553D10B0F5936C8" style="OLC">
<paragraph id="HE74D2EBCDB7C428EB60B1E327FE7253F"><enum>(6)</enum><header>Confidentiality</header>
<subparagraph id="H158F63B1FF20469CB8E6159B372EB778"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any information, documents,
records, or reports that relate to an examination, surveillance, or risk
assessment of a person subject to or described in this section.</text>
</subparagraph><subparagraph id="H317F586233874D6185D4F776D069A3E8"><enum>(B)</enum><header>Certain
exceptions</header><text display-inline="yes-display-inline">Nothing in this
subsection shall authorize the Commission to withhold information from the
Congress, prevent the Commission from complying with a request for information
from any other Federal department or agency, or the Public Company Accounting
Oversight Board requesting the information for purposes within the scope of its
jurisdiction, or prevent the Commission from complying with an order of a court
of the United States in an action brought by the United States or the
Commission against a person subject to or described in this section to produce
information, documents, records, or reports relating directly to the
examination of that person or the financial or operational condition of that
person or an associated or affiliated person of that person.</text>
</subparagraph><subparagraph id="H542BD347D58A4145A61CBC9B41C5CF63"><enum>(C)</enum><header>Treatment under
section 552 of title 5, United States Code</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 that
section.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC5F28408BA45417C8031749FBFAA43EF"><enum>(c)</enum><header>Investment
Advisers Act of 1940</header><text>Section 204 of the Investment Advisers Act
of 1940 (15 U.S.C. 80b–4), as amended by sections 7106(b) and 7218(c), is
further amended by adding at the end the following new subsection:</text>
<quoted-block id="HC956225CDBE245F7BB0503458F10FF00" style="OLC">
<subsection commented="no" id="H3F6B8376B55E4DD49D34085F70843C85"><enum>(f)</enum><header>Confidentiality</header>
<paragraph id="HCBFFD0D50C8C4F75890006616970A7D0"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any information, documents,
records, or reports that relate to an examination of a person subject to or
described in this section.</text>
</paragraph><paragraph id="H50103BC6D32343BF907763E3E0ED4531"><enum>(2)</enum><header>Certain
exceptions</header><text display-inline="yes-display-inline">Nothing in this
subsection shall authorize the Commission to withhold information from
Congress, prevent the Commission from complying with a request for information
from any other Federal department or agency, the Public Company Accounting
Oversight Board, or a self-regulatory organization requesting the information
for purposes within the scope of its jurisdiction, or prevent the Commission
from complying with an order of a court of the United States in an action
brought by the United States or the Commission against a person subject to or
described in this section to produce information, documents, records, or
reports relating directly to the examination of that person or the financial or
operational condition of that person or an associated or affiliated person of
that person.</text>
</paragraph><paragraph id="H952E506B3B46482380D8F71A9E1982DF"><enum>(3)</enum><header>Treatment under
section 552 of title 5, United States Code</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 that
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H79739D74984C44E5AE3EFCCAEA44BC0C"><enum>7410.</enum><header>Technical
corrections</header>
<subsection id="HC2AE5D9F1B074BD6A5E038EEEBC8507D"><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="HAEF9CA68B1774E4FA7378EF8894C50BD"><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="H3C5248CD2A384A0F9D73B08BBB2AF07F"><enum>(2)</enum><text display-inline="yes-display-inline">in the matter following paragraph (5) of
section 11(a), by striking <quote>earning statement</quote> and inserting
<quote>earnings statement</quote>.</text>
</paragraph><paragraph id="H203F52CEB0BD4EDFA0F4372735DE4F3B"><enum>(3)</enum><text display-inline="yes-display-inline">in section 18(b)(1)(C) (15 U.S.C.
77r(b)(1)(C)), by striking <quote>is a security</quote> and inserting <quote>a
security</quote>;</text>
</paragraph><paragraph id="H43C4BB6C45A94301A015251AB0EFCB6D"><enum>(4)</enum><text display-inline="yes-display-inline">in section 18(c)(2)(B)(i) (15 U.S.C.
77r(c)(2)(B)(i)), by striking <quote>State, or</quote> and inserting
<quote>State or</quote>;</text>
</paragraph><paragraph id="H57D75B907E2747BF81DCBEF9232EE538"><enum>(5)</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="H1B6EA2F70FEB486FA30EA2C18D501992"><enum>(6)</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="H252C6C524C3B49A7A60EAC32E97F844A"><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. 78 et seq.) is amended—</text>
<paragraph id="H9BE8A7790D3845E8B6EC4CEAA2349943"><enum>(1)</enum><text>in section 2(1)(a)
(15 U.S.C. 78b(1)(a)), by striking <quote>affected</quote> and inserting
<quote>effected</quote>;</text>
</paragraph><paragraph id="H5C295E211FAF4B76BAB2A5AD703D7E37"><enum>(2)</enum><text display-inline="yes-display-inline">in section 3(a)(55)(A) (15 U.S.C.
78c(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
Act</quote>;</text>
</paragraph><paragraph id="HCC6EC9828EC14857A8D8ADE4490A0389"><enum>(3)</enum><text display-inline="yes-display-inline">in section 3(g) (15 U.S.C. 78c(g)), by
striking <quote>company, account person, or entity</quote> and inserting
<quote>company, account, person, or entity</quote>;</text>
</paragraph><paragraph id="H3443564521174ABF939E236EC552D2A9"><enum>(4)</enum><text display-inline="yes-display-inline">in section 10A(i)(1)(B)(i) (15 U.S.C.
78j–1(i)(1)(B)(i)), by striking <quote>nonaudit</quote> and inserting
<quote>non-audit</quote>;</text>
</paragraph><paragraph id="H2F861FFFABE949909EF56DFE8BDD2CC3"><enum>(5)</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="H97FFFA55A9584AE09D9709218655441D"><enum>(6)</enum><text display-inline="yes-display-inline">in section 15(b)(1) (15 U.S.C.
78o(b)(1))—</text>
<subparagraph id="H1A7BC9C343BD46F88B10E6D9BC4EC9C1"><enum>(A)</enum><text>by striking the
sentence beginning <quote>The order granting</quote> and ending <quote>from
such membership.</quote> in subparagraph (B); and</text>
</subparagraph><subparagraph id="H341652C3D2204DD99B296FE6BE420D12"><enum>(B)</enum><text>by inserting such
sentence in the matter following such subparagraph after <quote>are
satisfied.</quote>;</text>
</subparagraph></paragraph><paragraph id="HE413AD31F30E4215BEA1F40875907892"><enum>(7)</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="HCF99345B30B946058E25DC151C39FE46"><enum>(A)</enum><text>by redesignating
clauses (i) and (ii) as subparagraphs (A) and (B), respectively;</text>
</subparagraph><subparagraph id="HEFD64B64F9054809BE7D617F46000575"><enum>(B)</enum><text>by striking the
sentence beginning <quote>The order granting</quote> and ending <quote>from
such membership.</quote> in such subparagraph (B), as redesignated; and</text>
</subparagraph><subparagraph id="H6063754925634F00B93524DCCFEA1EA4"><enum>(C)</enum><text>by inserting such
sentence in the matter following such redesignated subparagraph after
<quote>are satisfied.</quote>;</text>
</subparagraph></paragraph><paragraph id="HFEF36E40803E443CAB406B633256F696"><enum>(8)</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="HD151E177D65D48E48ACE55C81846D5DC"><enum>(9)</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="H5C50DD93049842D7920C7AEF99DCF9BD"><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="H1CE0F25804504BB093930988718857DF"><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>;</text>
</paragraph><paragraph id="HCDA353B028ED4C78BFFD6E8123097BF1"><enum>(2)</enum><text display-inline="yes-display-inline">in section 313(a)(4) (15 U.S.C.
77mmm(a)(4)) by striking <quote>subsection (b) of section 311</quote> and
inserting <quote>section 311(b)</quote>; and</text>
</paragraph><paragraph id="H602ABCE60CB745FCBA26C42BE2CF6EE1"><enum>(3)</enum><text display-inline="yes-display-inline">in section 317(a)(1) (15 U.S.C.
77qqq(a)(1)), by striking <quote>(1),</quote> and inserting
<quote>(1)</quote>.</text>
</paragraph></subsection><subsection id="HFA10593449F04461A645B6F87FD255E0"><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="H2852E2E15616449FA537841A97B0E1F1"><enum>(1)</enum><text display-inline="yes-display-inline">in section 2(a)(19)(B) (15 U.S.C.
80a–2(a)(19)(B)) by striking <quote>clause (vi)</quote> both places it appears
in the last two sentences and inserting <quote>clause (vii)</quote>;</text>
</paragraph><paragraph id="HDD668EA322884B93B84F54349A88CC68"><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 inserting <quote>or</quote> after the semicolon at the
end;</text>
</paragraph><paragraph id="H53128F19299340FB9219D89C3FB0C20C"><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="HE5E7581993094C66908B2E7F9268D870"><enum>(4)</enum><text display-inline="yes-display-inline">in section 13(a)(3) (15 U.S.C.
80a–13(a)(3)), by inserting <quote>or</quote> after the semicolon at the
end;</text>
</paragraph><paragraph id="H31804F1BD70140419F5EC5043CD478C4"><enum>(5)</enum><text display-inline="yes-display-inline">in section 17(f)(4) (15 U.S.C.
80a–17(f)(4)), by striking <quote>No such member</quote> and inserting
<quote>No member of a national securities exchange</quote>;</text>
</paragraph><paragraph id="HF925785B17B348BC99D3A88D8DD10508"><enum>(6)</enum><text display-inline="yes-display-inline">in section 17(f)(6) (15 U.S.C.
80a–17(f)(6)), by striking <quote>company may serve</quote> and inserting
<quote>company, may serve</quote>; and</text>
</paragraph><paragraph id="HC7C48E52BC474BA3B48CB261E1FEABDE"><enum>(7)</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="H1A555BE1CB8A447FB67ACC1B40B45A66"><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="H000C271AEF6B411EA4352AED2B79B21F"><enum>(B)</enum><text>by striking
<quote>clause (A) or (B) of that section</quote> and inserting <quote>section
205(b)(1) or (2)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H7F122406989F453E9A7DF2C4BBD28593"><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="HEA4DD079965F4634AA0844D06C11D231"><enum>(1)</enum><text display-inline="yes-display-inline">in each of the following sections, by
striking <quote>principal business office</quote> or <quote>principal place of
business</quote> (whichever and wherever it appears) and inserting
<quote>principal office and place of business</quote>: sections 203(c)(1)(A),
203(k)(4)(B), 213(a), 222(b), and 222(c) (15 U.S.C. 80b–3(c)(1)(A),
80b–3(k)(4)(B), 80b–13(a), 80b–18a(b), and 80b–18a(c)); and</text>
</paragraph><paragraph id="H386304AC46B348FBAA9981AEF173221C"><enum>(2)</enum><text display-inline="yes-display-inline">in section 206(3) (15 U.S.C. 80b–6(3)), by
inserting <quote>or</quote> after the semicolon at the end.</text>
</paragraph></subsection></section><section id="H66951BD6BA1F4EE7B82A3C41D640995C"><enum>7411.</enum><header>Municipal
securities</header><text display-inline="no-display-inline">Section 15B(b) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o–4(b)) is amended—</text>
<paragraph id="H4775900A48834E4CA18F2EDF06AF15CB"><enum>(1)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H92C245155BE84C25B9CB54EC81DA8117" style="OLC">
<paragraph id="HC0B5E75D2110451FB9D8B9161C62744C"><enum>(1)</enum><header>Composition of
the Municipal Securities Rulemaking Board</header><text display-inline="yes-display-inline">Not later than October 1, 2010, the
Municipal Securities Rulemaking Board (hereinafter in this section referred to
as the <quote>Board</quote>), shall be composed of members which shall perform
the duties set forth in this section and shall consist of—</text>
<subparagraph id="H4467DD280A1943AC954BCDE5017B72D9"><enum>(A)</enum><text>a majority of
independent public representatives, at least one of whom shall be
representative of investors in municipal securities and at least one of whom
shall be representative of issuers of municipal securities (which members are
hereinafter referred to as <quote>public representatives</quote>);</text>
</subparagraph><subparagraph id="H88A1003DCCBC411F80C1637A98F0725D"><enum>(B)</enum><text>at least one
individual who is representative of municipal securities brokers and municipal
securities dealers which are not banks or subsidiaries or departments or
divisions of banks (which members are hereinafter referred to as
<quote>broker-dealer representatives</quote>); and</text>
</subparagraph><subparagraph id="HEBDB75CD0DD54746A70A5CFFB5839498"><enum>(C)</enum><text>at least one
individual who is 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>).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H92061088ED954A4AA6D53E743779E635"><enum>(2)</enum><text>by amending
paragraph (2)(B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H39444551894A4504B106E617E76DAE3E" style="OLC">
<subparagraph id="HAAF4A7B723F940D38E3A2CDC286A22F0" 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 municipal securities brokers and municipal
securities dealers. Such rules—</text>
<clause id="HDBD360C84A9C4A0C99BDC183F83AB01B"><enum>(i)</enum><text>shall establish requirements
regarding the independence of public representatives;</text>
</clause><clause id="H20D80847D651446CBC6CD04712B09195"><enum>(ii)</enum><text>shall provide that the number of
public representatives of the Board shall at all times exceed the total number
of broker-dealer representatives and bank representatives;</text>
</clause><clause id="H0B1014BB5D0A4505B6860D5B705EEB87"><enum>(iii)</enum><text display-inline="yes-display-inline">shall establish minimum knowledge,
experience, and other appropriate qualifications for individuals to serve as
public representatives, which may include, among other things, prior work
experience in the securities, municipal finance, or municipal securities
industries;</text>
</clause><clause id="H5F9FBF3F72F74E4A87EB2CFED71A0D2F"><enum>(iv)</enum><text>shall specify the term members
shall serve; and</text>
</clause><clause id="HAD679146E05F4F088024A273466F0ADB"><enum>(v)</enum><text>may increase or decrease the number
of members which shall constitute the whole Board, but in no case may such
number be an even
number.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD8084283FD464F2B95E4C1153BAC9D8C"><enum>7412.</enum><header>Interested
person definition</header><text display-inline="no-display-inline">Section
2(a)(19)(A) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)(19)(A))
is amended—</text>
<paragraph id="HE0259CE21A5442B0908F33A1BB2C696E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking clauses (v) and (vi);</text>
</paragraph><paragraph id="H8DCB0E4C00244568853FE6EA8761AE63"><enum>(2)</enum><text>by inserting after
clause (iv) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HD0F676224A6849369859EAC6E9DC9A6A" style="OLC">
<clause id="H9770C49778F348BB95455091C40DD9E4"><enum>(v)</enum><text display-inline="yes-display-inline">any natural person who is a member of a
class of persons who the Commission, by rule or regulation, determines are
unlikely to exercise an appropriate degree of independence as a result
of—</text>
<subclause id="H0055920E702F4FAFAA56991C7510686D"><enum>(I)</enum><text>a material
business or professional relationship with such company or any affiliated
person of such company; or</text>
</subclause><subclause id="H6C2D113A07724BEA8614A47AEBB54750"><enum>(II)</enum><text>a close familial
relationship with any natural person who is an affiliated person of such
company;</text>
</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBDD350A689864FAC849CEF038A4614DE"><enum>(3)</enum><text>by redesignating
clause (vii) as clause (vi); and</text>
</paragraph><paragraph id="H81E8149AA68A4F40B662747E1965A482"><enum>(4)</enum><text>in clause (vi), as
redesignated, by striking <quote>two completed fiscal years</quote> and
inserting <quote>five completed fiscal years</quote>.</text>
</paragraph></section><section id="H058A83BB0E7F4E2EA1804D8F563C46D3"><enum>7413.</enum><header>Rulemaking
authority to protect redeeming investors</header><text display-inline="no-display-inline">Section 22(e) of the Investment Company Act
of 1940 (15 U.S.C. 80a–22(e)) is amended by adding at the end the following:
<quote>The Commission may, by rules and regulations, limit the extent to which
a registered open-end investment company may own, hold, or invest in illiquid
securities or other illiquid property.</quote>.</text>
</section><section id="H7F0A6B3AFA74406FB36AE54B29D636DE"><enum>7414.</enum><header>Study on SEC
revolving door</header>
<subsection id="HF675FBFADD2B43D89FF5950ED03C2CA0"><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 id="H292C2832C5E647C7ADE98FE4502592D3"><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 id="H424FE69AD453403FA3688CA3FDE2B494"><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 id="H942CBF33E5B24DC5AE1B727860BFFDFB"><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 id="H5F5B8371450E442BAC9C86E01A9AC25D"><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 id="HFD2D1783870249498D226BFF2307D06A"><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 id="HF1EA630583B7404F8E06EAB21CAE4F82"><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 id="HA4F34799E2D04DC1A1DBD008D34D603D"><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 have
engaged in information sharing or assisted such institutions in circumventing
Federal rules and regulations while employed by such Commission;</text>
</paragraph><paragraph id="H96F8B45BAF9F4A478B1E22CA9C8C87E6"><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 id="H141B8B8DA49F415F8AFB632EB4B4D1F8"><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 id="H37E4BF195E7247CD91ED9F246EA11F05"><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><section id="H16EA43F092AD4136B6C11448F4648BCB"><enum>7415.</enum><header>Study on
internal control evaluation and reporting cost burdens on smaller
issuers</header>
<subsection id="HA48D40E9CF024218898595B3FDA0D161"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Government
Accountability Office and the Securities and Exchange Commission shall each
conduct a study evaluating the costs and benefits of complying with section
404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. § 7262(b)) on issuers who
are not accelerated or large accelerated filers as defined by Commission Rule
12b-2. The study shall—</text>
<paragraph id="H0339F9DC63914319B38C8D1AAEFA68F3"><enum>(1)</enum><text>include
recommendations, administrative reforms, and legislative proposals on
implementation steps that could be taken to reduce compliance burdens on these
issuers; and</text>
</paragraph><paragraph id="H2019748E740A47819AD1A3B7F538D9CE"><enum>(2)</enum><text>determine the
efficacy of the Securities and Exchange Commission’s measures to limit the cost
of compliance on smaller issuers.</text>
</paragraph></subsection><subsection id="HA70BB12FD27048C19491BB414C54497F"><enum>(b)</enum><header>Reports
required</header><text display-inline="yes-display-inline">On or before June 1,
2010, the Government Accountability Office and the Securities and Exchange
Commission shall submit separate reports to Congress containing the findings
and conclusions of the studies required under subsection (a), together with
such recommendations for regulatory, legislative, or administrative action as
may be appropriate.</text>
</subsection><subsection id="HB29D91433DBF45EA817FF8AB800732B5"><enum>(c)</enum><header>Effective date
contingent on reports</header><text display-inline="yes-display-inline">Requirements under section 404(b) of the
Sarbanes-Oxley Act of 2002 on issuers described under subsection (a) shall not
become effective until the results of the report are delivered, but in no case
before June 1, 2011.</text>
</subsection></section><section commented="no" id="H7DF76E5BED4C4F45B36EF6C88C879095" section-type="section-one"><enum>7416.</enum><header>Analysis of rule regarding
smaller reporting companies</header>
<subsection commented="no" id="H53101308FF5D4F7BA84E2D958CA2D136"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph commented="no" id="H80A3415F15934E6A82AD0F8757AEE60E"><enum>(1)</enum><text>Many small
businesses in cutting-edge technology sectors require significant capital
investment to develop new technologies related to clean energy, drug treatments
for terminal diseases and food production in hunger-stricken areas of the
World.</text>
</paragraph><paragraph commented="no" id="HBC261EF37F374D4C8F60F3BC94C45412"><enum>(2)</enum><text>Many technology
companies conducting research do not meet the definition of <quote>smaller
reporting company</quote> under the Securities and Exchange Commission’s Rule
12b–2 due to unusually high public floats despite low or zero revenue.</text>
</paragraph><paragraph commented="no" id="HFD063143C4B14D8B906E217A7C9ECA8E"><enum>(3)</enum><text>The Final Report
of the Advisory Committee on Smaller Public Companies to the Securities and
Exchange Commission recommended that a company with a market capitalization of
less than about $787,000,000 be considered a smallcap company and that the
Commission provide exemptions from section 404(b) of the Sarbanes-Oxley Act to
companies with less than $250,000,000 in annual revenues.</text>
</paragraph></subsection><subsection commented="no" id="HA6EDC63BA5144E3D842D0B6B22424041"><enum>(b)</enum><header>Study of using
revenue as criteria to define smaller reporting company</header><text display-inline="yes-display-inline">The Securities and Exchange Commission
shall conduct a study of the inclusion of revenue as a criteria used in
defining smaller reporting company as defined under the Commission’s Rule 12b-2
to account for smaller public companies with public floats less than
$700,000,000 and revenues less than $250,000,000. Not later than 180 days after
the date of enactment of this subtitle, the Commission shall provide the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing and Urban Affairs of the Senate a report of the
findings of the study.</text>
</subsection></section><section id="H16A8228B30834A6E8E09698A7C5944A4"><enum>7417.</enum><header>Financial
Reporting Forum</header>
<subsection id="H5E631E093D9F464EAC5F88219C201FEB"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is hereby established a Financial
Reporting Forum (hereinafter referred to as the <quote>Forum</quote>), which
shall consist of—</text>
<paragraph id="H57774CC124684A57ADA843A66A207C5B"><enum>(1)</enum><text display-inline="yes-display-inline">the Chairman of the Securities Exchange
Commission (hereinafter referred to as the <quote>SEC</quote>);</text>
</paragraph><paragraph id="H6DF3C2F524F0452BAE0D89DDE9285291"><enum>(2)</enum><text display-inline="yes-display-inline">the head of the Financial Accounting
Standards Board;</text>
</paragraph><paragraph id="H56C7D8B577CD40968BB1FC2087942B72"><enum>(3)</enum><text display-inline="yes-display-inline">the Chairman of the Public Company
Accounting Oversight Board;</text>
</paragraph><paragraph id="HB13186B2DABB46DFB05C2DDFE8A3BA82"><enum>(4)</enum><text display-inline="yes-display-inline">the head of each appropriate Federal
banking agency, as such term is defined under section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q));</text>
</paragraph><paragraph id="HE2269EA885BA48C9B571FEE77E12A757"><enum>(5)</enum><text display-inline="yes-display-inline">the Administrator of the National Credit
Union Administration;</text>
</paragraph><paragraph id="H8A6856C0A7D046A2A3D19A1C23EDDD0D"><enum>(6)</enum><text>the Secretary of
the Treasury;</text>
</paragraph><paragraph id="HE390502CFC1942A7B039C4061338A7AC"><enum>(7)</enum><text display-inline="yes-display-inline">a representative of a non-financial
institution, appointed by the SEC;</text>
</paragraph><paragraph id="H96B73505D27F43249A2651FEC6F5C454"><enum>(8)</enum><text>a
representative of a financial institution, appointed by the SEC;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HD6E1D5EC8E5B4FB0A7245262397634B5"><enum>(9)</enum><text display-inline="yes-display-inline">a representative of auditors, appointed by
the SEC; and</text>
</paragraph><paragraph display-inline="no-display-inline" id="HDA1B84D4C35048F286BDCF26A30F4138"><enum>(10)</enum><text display-inline="yes-display-inline">a representative of investors, appointed by
the SEC.</text>
</paragraph></subsection><subsection id="H87CD77CDB4E941B3B4B0248B7535CF1E"><enum>(b)</enum><header>Meetings</header><text>The
Forum shall meet no less often than quarterly.</text>
</subsection><subsection id="HE7991EF4B4DE441A9AFBDC0266373ED7"><enum>(c)</enum><header>Duties</header><text display-inline="yes-display-inline">The Forum shall meet to discuss immediate
and long-term issues critical to financial reporting.</text>
</subsection><subsection id="H6CA342D119C84B289B758C88E4A01C15"><enum>(d)</enum><header>Reporting</header><text>The
Forum shall issue an annual report to the Congress detailing any determinations
or findings made by the Forum during the previous year, including any
legislative recommendations the Forum may have related to financial reporting
matters.</text>
</subsection></section><section id="HAFCF576386934E02B360D7DDE2162B48"><enum>7418.</enum><header>Investment
advisers subject to State authorities</header><text display-inline="no-display-inline">Section 203A(a) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b–3a(a)) is amended—</text>
<paragraph id="H8AB3C26B97614277A5CB44146D0921C7"><enum>(1)</enum><text>by redesignating
paragraph (2) as paragraph (3); and</text>
</paragraph><paragraph id="H2D79DA40346142AAB5B5D6F4F90AFF29"><enum>(2)</enum><text>by inserting after
paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBC782D7F84584E88A090B0E08F39BD0C" style="OLC">
<paragraph id="H85DF46A34FE444B99E83B8AE70406252"><enum>(2)</enum><header>Treatment of
certain mid-sized investment advisers</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), an
investment adviser that—</text>
<subparagraph id="H30D0E422D8124FB49B96D3335C07AD36"><enum>(A)</enum><text>is regulated and
examined, or required to be regulated and examined, by a State; and</text>
</subparagraph><subparagraph id="H9641D9B7E996487E90726CEFBE0CAD72"><enum>(B)</enum><text>has assets under
management between—</text>
<clause id="HD040B83ECEAF4853898FFE62DD5BE56C"><enum>(i)</enum><text display-inline="yes-display-inline">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>
</clause><clause id="H777C34B42E0E47FAB1356ABC478B8DCA"><enum>(ii)</enum><text display-inline="yes-display-inline">$100,000,000, or such higher amount as the
Commission may, by rule, deem appropriate in accordance with the purposes of
this title,</text>
</clause><continuation-text continuation-text-level="subparagraph">shall
register with, and be subject to examination by, such State. The Commission
shall publish a list of the States that regulate and examine, or require
regulation and examination of, investment advisers to which the requirements of
this paragraph
apply.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HAF28367A48B84F96AA4E2B45E84ADC58"><enum>7419.</enum><header>Custodial
requirements</header><text display-inline="no-display-inline">Not later than
180 days after the date of the enactment of this subtitle, the Securities and
Exchange Commission shall adopt a rule pursuant to its authority under section
211(a) of the Investment Advisers Act of 1940 making it unlawful under section
206(4) of such Act for an investment adviser registered under the Act to have
custody of funds or securities of a client the value of which exceeds
$10,000,000, subject to such exception the Commission determines in such rule
are in the public interest and consistent with the protection of investors,
unless—</text>
<paragraph id="H2C5F7D860584453D8CD4A8AE59BB5BFD"><enum>(1)</enum><text>the funds and
securities are maintained with a qualified custodian either in a separate
account for each client under the client’s name, or in accounts that contain
only client funds and securities under the name of the investment adviser as
agent or trustee for the client; and</text>
</paragraph><paragraph id="HA6F943DD7597405F821C96509E104166"><enum>(2)</enum><text>the qualified
custodian does not directly or indirectly provide investment advice with
respect to such funds or securities.</text>
</paragraph></section><section id="H9C4AAC3AA0EA4F7EAF4F2CBFE9DA81E9"><enum>7420.</enum><header>Ombudsman</header>
<subsection id="H8C32B75D4E764BA78D660D4787F3ECCF"><enum>(a)</enum><header>Appointment</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this subtitle, the Chairman of the Securities and Exchange
Commission shall appoint an Ombudsman who shall report directly to the
Chairman.</text>
</subsection><subsection id="H26C4035648BA43AC80FFAC99D40FBF01"><enum>(b)</enum><header>Duties</header><text>The
Ombudsman appointed under subsection (a) shall—</text>
<paragraph id="H032CA50586B0425AB92F5B73D1BC28E8"><enum>(1)</enum><text>act as a liaison
between the Commission and any affected person with respect to any problem such
person may have in dealing with the Commission resulting from the regulatory
activities of the Commission;</text>
</paragraph><paragraph id="H60616EF21E3143989B4DA6583636F354"><enum>(2)</enum><text>review and make
recommendations regarding Commission policies and procedures to encourage
persons to present questions to the Commission regarding compliance with
Federal securities laws; and</text>
</paragraph><paragraph id="H391917036A934FDD97D35CD259691EC0"><enum>(3)</enum><text>maintain
confidentiality of communications between such persons and the
Ombudsman.</text>
</paragraph></subsection><subsection id="HCB42214564AB4661A2FAF32BD4E3F56F"><enum>(c)</enum><header>Limitation</header><text>In
carrying out the duties under subsection (b), the Ombudsman shall utilize
personnel of the Commission to the extent practicable. Nothing in this section
shall be construed as replacing, altering, or diminishing the activities of any
ombudsman or similar office in any other agency.</text>
</subsection><subsection id="H572DD3EF78F74AFBAB173E064B4F5419"><enum>(d)</enum><header>Report</header><text>Each
year, the Ombudsman shall submit a report to the Commission for inclusion in
the annual report that describes the activities and evaluates the effectiveness
of the Ombudsman during the preceding year. In that report, the Ombudsman shall
include solicited comments and evaluations from registrants in regards to the
effectiveness of the Ombudsman.</text>
</subsection></section></part><part id="HEB6CF0C701AB4558A10FC09F36C46C9B"><enum>5</enum><header>Securities
Investor Protection Act amendments</header>
<section commented="no" id="H4518A347C06E460C8731C81170B0FAF4"><enum>7501.</enum><header>Increasing the
minimum assessment paid by SIPC members</header><text display-inline="no-display-inline">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>
</section><section id="H272CA9D9633B43BAA950E6A08B23CF60"><enum>7502.</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 by striking <quote>of
not to exceed $1,000,000,000</quote> and inserting <quote>the lesser of
$2,500,000,000 or the target amount of the SIPC Fund specified in the bylaws of
SIPC</quote>.</text>
</section><section id="H215CAE3861A64C6D9CFE4797C534246C"><enum>7503.</enum><header>Increasing the
cash limit of protection</header><text display-inline="no-display-inline">Section 9 of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff–3) is amended—</text>
<paragraph id="H3BE9F2B8CC3547AFA72000DBFA617399"><enum>(1)</enum><text>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 id="HD156DA1D90424F48B621A99FF2130B8D"><enum>(2)</enum><text>by adding the
following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H29B99CAFBB404A4DACC366EC36E06A53" style="OLC">
<subsection id="HC149A887676043728495C42763CBEEBF"><enum>(d)</enum><header>Standard maximum
cash advance amount defined</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>standard maximum cash advance amount</quote> means $250,000, as such
amount may be adjusted after March 31, 2010, as provided under subsection
(e).</text>
</subsection><subsection id="HBF13838672D34FFF8F60FB3C6FF4B30B"><enum>(e)</enum><header>Inflation
adjustment</header>
<paragraph id="H24D9B010A87748DF8347CFD6F59EB4E1"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No later than April
1, 2010, 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 id="HB276314C8E4047FF836D0B40F4A28078"><enum>(A)</enum><text>$250,000
multiplied by,</text>
</subparagraph><subparagraph id="H3C967853C6C2412D9BDC96064A16B533"><enum>(B)</enum><text>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 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 id="HF55E904093FF4345B39B5039297B641A"><enum>(2)</enum><header>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 id="H096B3EDC21B34108B5EC5422FC267ED3"><enum>(3)</enum><header>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 id="H709037E8F63A494591F3176F258F275C"><enum>(A)</enum><text>the Commission
shall publish in the Federal Register the standard maximum cash advance amount;
and</text>
</subparagraph><subparagraph id="H5CD18AB89B654465B6AD8264F9A9F90E"><enum>(B)</enum><text display-inline="yes-display-inline">the Board of Directors of SIPC shall submit
a report to the Congress containing stating the standard maximum cash advance
amount.</text>
</subparagraph></paragraph><paragraph id="H04EB8A6D8A4F4D5E99E8B91949AD042B"><enum>(4)</enum><header>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 id="HFAB77A7DA3AE452EADD0C2E712DCB4E9"><enum>(5)</enum><header>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 id="HD7F8B42A96D24B0F9C1D16141AB7A6D0"><enum>(A)</enum><text>the overall state
of the fund and the economic conditions affecting members of SIPC;</text>
</subparagraph><subparagraph id="HE7FC2C550C9048E793DD57D2F6815A47"><enum>(B)</enum><text>the potential
problems affecting members of SIPC; and</text>
</subparagraph><subparagraph id="HF140A02B006342A3BCB8C2EA814DE35E"><enum>(C)</enum><text>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></section><section id="HD00518E2946D47A8ABDEB245FB5F78CE"><enum>7504.</enum><header>SIPC as
trustee in SIPA liquidation proceedings</header><text display-inline="no-display-inline">Section 5(b)(3) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78eee(b)(3)) is amended—</text>
<paragraph id="H7C1B0ACB9C3141ED9BC2B2258E2F85EA"><enum>(1)</enum><text>by striking
<quote>SIPC has determined that the liabilities of the debtor to unsecured
general creditors and to subordinated lenders appear to aggregate less than
$750,000 and that</quote>; and</text>
</paragraph><paragraph id="H5CF04D35EDA549ABB9EBD363BC93C9FD"><enum>(2)</enum><text>by striking
<quote>five hundred</quote> and inserting <quote>five thousand</quote>.</text>
</paragraph></section><section id="H68C2F8A811CC4991A5EED305A5CBB944"><enum>7505.</enum><header>Insiders
ineligible for SIPC advances</header><text display-inline="no-display-inline">Section 9(a)(4) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff–3(a)(4)) is amended by inserting
<quote>an insider,</quote> after <quote>or net profits of the
debtor,</quote>.</text>
</section><section id="H1B06C55473C94A59B12B861712E257A3"><enum>7506.</enum><header>Eligibility
for direct payment procedure</header><text display-inline="no-display-inline">Section 10(a)(4) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff–4(a)(4)) is amended by striking
<quote>$250,000</quote> and inserting <quote>$850,000</quote>.</text>
</section><section id="HE4FF1527D04C466C915D3467F31F8993"><enum>7507.</enum><header>Increasing the
fine for prohibited acts under SIPA</header><text display-inline="no-display-inline">Section 14(c) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78jjj(c)) is amended—</text>
<paragraph id="HE53DDB079AD64E6497F771FB890CD9A2"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>$50,000</quote> and inserting <quote>$250,000</quote>;
and</text>
</paragraph><paragraph id="H38EE0A731935413888727B2F7C53C096"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>$50,000</quote> and inserting
<quote>$250,000</quote>.</text>
</paragraph></section><section id="HEB0F9482A89E414397261D7E3B8B322F"><enum>7508.</enum><header>Penalty for
misrepresentation of SIPC membership or protection</header><text display-inline="no-display-inline">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="HF82692D4E1594664B04DEEB899DAB040" style="OLC">
<subsection id="H9DEF43B3B8554372938AC41AB50E9246"><enum>(d)</enum><header>Misrepresentation
of SIPC membership or protection</header>
<paragraph id="H30BA482E5729404EA390DFE23E0ED4E0"><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 five years.</text>
</paragraph><paragraph id="HB59F66C3B81148A09A1A9054337854FF"><enum>(2)</enum><header>Internet service
providers</header><text>Any Internet service provider that, on or through a
system or network controlled or operated by the Internet service provider,
transmits, routes, provides connections for, or stores any material containing
any misrepresentation of the kind prohibited in paragraph (1) shall be liable
for any damages caused thereby, including damages suffered by SIPC, if the
Internet service provider—</text>
<subparagraph id="HF888FB0D344E472AA632015219008994"><enum>(A)</enum><text>has actual
knowledge that the material contains a misrepresentation of the kind prohibited
in paragraph (1), or</text>
</subparagraph><subparagraph id="H9E146BBB618C47EAA74BEBC33DDA56D0"><enum>(B)</enum><text>in the absence of
actual knowledge, is aware of facts or circumstances from which it is apparent
that the material contains a misrepresentation of the kind prohibited in
paragraph (1), and</text>
</subparagraph><continuation-text continuation-text-level="paragraph">upon
obtaining such knowledge or awareness, fails to act expeditiously to remove, or
disable access to, the material.</continuation-text></paragraph><paragraph id="HAA0BD247FE0D49D0B77FE1A43C2FA461"><enum>(3)</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) or (2). 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>
</section><section id="HD6252A724A3248D6B52756402C6A0321"><enum>7509.</enum><header>Futures held
in a portfolio margin securities account protection</header>
<subsection id="H7D9CE3940E7047C19B86AFA5F05E70BE"><enum>(a)</enum><header>SIPC
Advances</header><text display-inline="yes-display-inline">Section 9(a)(1) of
the Securities Investor Protection Act of 1970 (15 U.S.C. 78fff–3(a)(1)) is
amended by inserting <quote>or options on futures contracts</quote> after
<quote>claim for securities</quote>.</text>
</subsection><subsection id="HF5C8E916ED6D49C0BDF07CB06CE1CD1B"><enum>(b)</enum><header>Definitions</header><text>Section
16 of such Act (15 U.S.C. 78lll) is amended—</text>
<paragraph id="H7580B8B563BA449299ECE04A70C51C80"><enum>(1)</enum><text>by amending
paragraph (2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE8DF11D2D6DC45C0880C9F65D9776E93" style="OLC">
<paragraph id="H28769F4DE4844F3D87C1E58A4A4B57DB"><enum>(2)</enum><header>Customer</header>
<subparagraph id="HABA348885FA94784B3DE0386056A9D9C"><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. The term <quote>customer</quote> includes any
person who has a claim against the debtor arising out of sales or conversions
of such securities.</text>
</subparagraph><subparagraph id="H25FF81797CB54570B2EA7BBCED705BF7"><enum>(B)</enum><header>Included
persons</header><text>The term <term>customer</term> includes—</text>
<clause id="H1EF6624DFAC34D6A82DAEB5280FF1BE9"><enum>(i)</enum><text>any person who has
deposited cash with the debtor for the purpose of purchasing securities;
and</text>
</clause><clause id="H230CAA223B294ABBBFF01882C195DA32"><enum>(ii)</enum><text display-inline="yes-display-inline">any person who has a claim against the
debtor for, or a claim against the debtor arising out of sales or conversions
of, 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.</text>
</clause></subparagraph><subparagraph id="H959ACCF765674F0E899464D5E206A69C"><enum>(C)</enum><header>Excluded
persons</header><text>The term <term>customer</term> does not include—</text>
<clause id="HFC7DFC11E65C43A1B72D032E6523981D"><enum>(i)</enum><text>any person to the
extent that the claim of such person arises out of transactions with a foreign
subsidiary of a member of SIPC;</text>
</clause><clause id="H4640CBBAB1C2494CBF7515AFAA1F52FC"><enum>(ii)</enum><text>any person to the
extent that 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; or</text>
</clause><clause id="H12D2D020E25147B6BFE588772DA466C7"><enum>(iii)</enum><text display-inline="yes-display-inline">any person to the extent such person has a
claim relating to any open repurchase or open reverse repurchase
agreement.</text>
</clause><continuation-text continuation-text-level="subparagraph">For
purposes of this paragraph, the term <quote>repurchase agreement</quote> means
the sale of a security at a specified price with a simultaneous agreement or
obligation to repurchase the security at a specified price on a specified
future
date.</continuation-text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCD7F9B07539A4805A41C401F13BF12FF"><enum>(2)</enum><text>in paragraph (4),
by inserting after the first sentence the following new sentence: <quote>In the
case of portfolio margining accounts of customers that are carried as
securities accounts pursuant to a portfolio margining program approved by the
Commission, such term shall also include futures contracts and options on
futures contracts received, acquired, or held by or for the account of a debtor
from or for such accounts, and the proceeds thereof.</quote>;</text>
</paragraph><paragraph id="H199B1A79F69446DEA5890F0006F47F77"><enum>(3)</enum><text>in paragraph (9),
by inserting before <quote>Such term</quote> in the matter following
subparagraph (L) the following: <quote>The term includes revenues earned by a
broker or dealer in connection with transactions in customers’ portfolio
margining accounts carried as securities accounts pursuant to a portfolio
margining program approved by the Commission.</quote>; and</text>
</paragraph><paragraph id="HA06FE16F340B418B83A9608975BFD873"><enum>(4)</enum><text>in paragraph
(11)—</text>
<subparagraph id="HC8B35F1561E6482CBFD91FEDF0E1F3EF"><enum>(A)</enum><text>by amending
subparagraph (A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6FB4FCC560FF47028460C2AD6F8F0275" style="OLC">
<subparagraph id="HBB199DC664DC430E8F521980EF0B81CE"><enum>(A)</enum><text display-inline="yes-display-inline">calculating the sum which would have been
owed by the debtor to such customer if the debtor had liquidated, by sale or
purchase on the filing date—</text>
<clause id="H0545D8E4EEC7470E8061FA7EE6AAE637"><enum>(i)</enum><text>all securities
positions of such customer (other than customer name securities reclaimed by
such customer); and</text>
</clause><clause id="H3FE387BEF67249D6A113D5A6211E5E6B"><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;
minus</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H16C0B204FAB846A8B474B6E9FFF754F5"><enum>(B)</enum><text>by inserting
before <quote>In determining</quote> in the matter following subparagraph (C)
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 for the mark-to-market (variation)
payments due with respect to such contract as of the filing date, and such
claim shall be treated as a claim for cash.</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="HA57FBA91C7574267AF9333340358CF13"><enum>7510.</enum><header>Study and
report on the feasibility of risk-based assessments for SIPC members</header>
<subsection id="H82A18410AE7D4CFEB624DCD7754CC5C2"><enum>(a)</enum><header>Study
required</header><text>The Comptroller General of the United States shall
conduct a study on whether the Securities Investor Protection Corporation
(hereafter in this section referred to as <quote>SIPC</quote>) should be
required to impose assessments, on its member brokers and dealers, based on
risk for the purpose of adequately maintaining the SIPC Fund.</text>
</subsection><subsection id="HD86D2C9A93DD4B47843CC67984F38836"><enum>(b)</enum><header>Content</header><text>The
Comptroller General in conducting this study shall—</text>
<paragraph id="H33F45EC2247248E2AF9241F24A0B549B"><enum>(1)</enum><text>identify and
examine available approaches, including modeling, to measure broker and dealer
operational risk;</text>
</paragraph><paragraph id="HB094C935BFC641A285B800864431E34B"><enum>(2)</enum><text>analyze whether
the available approaches to measure broker and dealer operational risk can be
used in managing the aggregate risk to the SIPC Fund;</text>
</paragraph><paragraph id="H8D45286ABEE644A4BE3AF0CAE7AB8C36"><enum>(3)</enum><text>explore whether
objective measures like the volume of assets of the SIPC member, previous
enforcement and compliance actions taken by regulatory bodies against the SIPC
member, or the number of years the SIPC member has been in operation, among
other factors, can be used to assess the probability the fund will incur a loss
with respect to the SIPC member;</text>
</paragraph><paragraph id="H65DA465B42F441E39CF90B1D8785436D"><enum>(4)</enum><text>examine the impact
that risk-based assessments could have on large and small brokers and dealers;
and</text>
</paragraph><paragraph id="H453AB78CC01842A1A6B2D9DC2507174D"><enum>(5)</enum><text>examine the impact
that risk-based assessments could have on institutional and retail brokers and
dealers.</text>
</paragraph></subsection><subsection id="H0A06FD71BFAC482B8EFC33470A15F9EC"><enum>(c)</enum><header>Consultation</header><text>The
Comptroller General in planning and conducting this study shall consult with
the Securities and Exchange Commission, the Federal Deposit Insurance
Corporation, SIPC, the Financial Industry Regulatory Authority, and any other
public or private sector organization that the Comptroller General considers
appropriate.</text>
</subsection><subsection id="H9F518DFED4124EFC8D368E663BBC4A4B"><enum>(d)</enum><header>Report
required</header><text>Not later than one year after the date of enactment of
this subtitle, the Comptroller general shall submit a report of 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.</text>
</subsection></section><section commented="no" id="H88050AC6C199480082B2C412BF2F1B61"><enum>7511.</enum><header>Budgetary
treatment of Commission loans to SIPC</header><text display-inline="no-display-inline">Section 4(g) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78ddd(g)) is amended by adding at the end the
following: <quote>Any loan made by the Commission to SIPC under this subsection
shall not be considered to result in a new direct loan obligation or a new loan
guarantee commitment for purposes of section 504 of the Federal Credit Reform
Act of 1990.</quote>.</text>
</section></part><part id="HA60F6927322D4CD48F44900D1086D9FC"><enum>6</enum><header>Sarbanes-Oxley Act
Amendments</header>
<section id="HEF4CA8FA55E346C0B6AEA02E28D9220B"><enum>7601.</enum><header>Public Company
Accounting Oversight Board oversight of auditors of brokers and
dealers</header>
<subsection id="H2E29BDBFC08444DD8ABE38514BF0024F"><enum>(a)</enum><header>Definitions</header><paragraph commented="no" display-inline="yes-display-inline" id="H5022F22E0EC4457A9E16D60831BCEBE8"><enum>(1)</enum><text>Title I of the
Sarbanes-Oxley Act of 2002 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H4323607399694DCC928C36C65B0D9D78" style="OLC">
<section id="HDC79D947FF6E41409E8C0236689CDAEC"><enum>110.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this title, and
notwithstanding section 2:</text>
<paragraph id="HD98115AF1E5445208456770D1294E12E"><enum>(1)</enum><header>Audit</header><text display-inline="yes-display-inline">The term <quote>audit</quote> means an
examination of the financial statements, reports, documents, procedures or
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
(or, for the period preceding the adoption of applicable rules of the Board
under section 103, in accordance with then-applicable generally accepted
auditing and related standards for such purposes), for the purpose of
expressing an opinion on such financial statements, reports, documents,
procedures or controls, or notices.</text>
</paragraph><paragraph id="H01644F86F0F84F51B4A9739632E180A1"><enum>(2)</enum><header>Audit
report</header><text display-inline="yes-display-inline">The term <quote>audit
report</quote> means a document, report, notice, or other record—</text>
<subparagraph id="HB85AA1F81FEE4907A6B5BCA9511362F2"><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="HDE8BD76BE07343429EF1044D02D08672"><enum>(B)</enum><text>in which a public
accounting firm either—</text>
<clause id="HABF18B36E8EA4C0C94AF0AD055A8042E"><enum>(i)</enum><text>sets forth the
opinion of that firm regarding a financial statement, report, notice, other
document, procedures, or controls; or</text>
</clause><clause id="H321182EA40D846E7B57260F6BBADC807"><enum>(ii)</enum><text>asserts that no
such opinion can be expressed.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H7475240C2AC341F08E1DEF047517B113"><enum>(3)</enum><header>Professional
standards</header><text>The term <quote>professional standards</quote>
means—</text>
<subparagraph id="H987FAB0D3E42457397F28CD6AC61627E"><enum>(A)</enum><text>accounting
principles that are—</text>
<clause id="H1915DDB6A7F14EE78AB5635F8AE0FEA1"><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="H19F7F7A40B4A48CD8F58F0BF821FB48A"><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="H0E5A2BF97E524347A2FF1AF8624657D4"><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="H7CEC06E2F91A4883AF5863F81B084121"><enum>(i)</enum><text>relate to the
preparation or issuance of audit reports for issuers, brokers, or dealers;
and</text>
</clause><clause id="H44F940E175AF4F1C8A9A6C7A22441D2F"><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="HC6DD42A74FF847CA842AB902843CDE2F"><enum>(4)</enum><header>Broker</header><text display-inline="yes-display-inline">The term <quote>broker</quote> 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="H473396EA75FE48E580DF8CA87A597E73"><enum>(5)</enum><header>Dealer</header><text display-inline="yes-display-inline">The term <quote>dealer</quote> 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 id="HFB74BEB25723458EA8E1D36A71BB10E4"><enum>(6)</enum><header>Self-regulatory
organization</header><text display-inline="yes-display-inline">The term
<quote>self-regulatory organization</quote> has the same meaning as in section
3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(26)).</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8FC2F7175707475688BC12D4A0210320" indent="up1"><enum>(2)</enum><text>The table of sections in section 1(b)
of such Act is amended, by inserting after the item relating to section 109 the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="HBF87ED1A7AF34DB2BBBAAA8B5E08F843" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 110.
Definitions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF18DAA7DBF3A43C09C3CEF1D85FB38F6"><enum>(b)</enum><header>Establishment
and Administration of the Public Company Accounting Oversight
Board</header><text>Section 101 of such Act is amended—</text>
<paragraph id="HC0CC1CFB665A42C6A14C2B785680DCD0"><enum>(1)</enum><text>by striking
<quote>issuers</quote> each place it appears and inserting <quote>issuers,
brokers, and dealers</quote>;</text>
</paragraph><paragraph id="H3EB50E08F29E4602899F6475A3D8607D"><enum>(2)</enum><text>in subsection (a),
by striking <quote>public companies</quote> and inserting
<quote>companies</quote>; and</text>
</paragraph><paragraph id="H08DC770943004FDC9D493932FC360973"><enum>(3)</enum><text>in subsection (a),
by striking <quote>for companies the securities of which are sold to, and held
by and for, public investors</quote>.</text>
</paragraph></subsection><subsection id="HD2B86F13D87D4A10938EE6FF6CBAF931"><enum>(c)</enum><header>Registration
with the Board</header><text display-inline="yes-display-inline">Section 102 of
such Act is amended—</text>
<paragraph id="HF31C177F3B7440E18ED141EBBAF52075"><enum>(1)</enum><text>in subsection (a),
by striking <quote>Beginning 180 days after the date of the determination of
the Commission under section 101(d), it</quote> and inserting
<quote>It</quote>;</text>
</paragraph><paragraph id="HB1F8B27673994070A5930D1DAB45B6DC"><enum>(2)</enum><text>in subsections (a)
and (b)(2)(G), by striking <quote>issuer</quote> each place it appears and
inserting <quote>issuer, broker, or dealer</quote>; and</text>
</paragraph><paragraph id="H57FC5065C1304ACC8ADBD232F6543340"><enum>(3)</enum><text>in subsection
(b)(2)(A), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, and dealers</quote>.</text>
</paragraph></subsection><subsection id="H9B50AF73F07A441F9D671475E5050662"><enum>(d)</enum><header>Auditing and
independence</header><text>Section 103(a) of such Act is amended—</text>
<paragraph id="H0249857313AB4CD08FB07BC0985BBED7"><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="H937582800FA049E59B51D50854ABBDA1"><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="H3FE262F7494A4BE9BEA9C880526ADE32"><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="H96806F2C46384469A70A656563853D95"><enum>(e)</enum><header>Inspections of
registered public accounting firms</header><text>Section 104 of such Act is
amended—</text>
<paragraph id="HBBF0572408CF4D53B0B8BA9244D5FF27"><enum>(1)</enum><text>in subsection (a),
by striking <quote>issuers</quote> and inserting <quote>issuers, brokers, and
dealers</quote>;</text>
</paragraph><paragraph id="H2AF5A335D83D4900BED374A73AB48131"><enum>(2)</enum><text>in subsection
(b)(1)(A)—</text>
<subparagraph id="H6C3D695BE77B40BD923490F40E6C75C8"><enum>(A)</enum><text>by striking
<quote>audit reports</quote> and inserting <quote>audit reports on annual
financial statements</quote>; and</text>
</subparagraph><subparagraph id="H9A95DEBBBC7A4660A9EB06FC36C16D93"><enum>(B)</enum><text>by striking
<quote>and</quote>;</text>
</subparagraph></paragraph><paragraph id="HC76CEB5624F249299330FC592DFD1165"><enum>(3)</enum><text>in subsection
(b)(1)(B)—</text>
<subparagraph id="H498EBB5BDDDE4302B5C70D47748ADB5B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>audit reports</quote>
and inserting <quote>audit reports on annual financial statements</quote>;
and</text>
</subparagraph><subparagraph id="HD7C405EE9734413CB6C1CFCEFCE94C21"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>; and</quote>; and</text>
</subparagraph></paragraph><paragraph id="H00F232D79C864319984C0B60A924573E"><enum>(4)</enum><text>by adding at the
end of subsection (b)(1) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H78107521B92543E997F443B7BC055756" style="OLC">
<subparagraph id="H07EE83FCC06B4A74BCEFCEED01DA51ED"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to each registered public
accounting firm that regularly provides audit reports and is not described
under subparagraph (A) or (B), on a basis to be determined by the Board, by
rule, consistent with the public interest and protection of
investors.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBC6E8262E9F345F8BACF526FD55DF7A1"><enum>(f)</enum><header>Investigations
and disciplinary proceedings</header><text>Section 105(c)(7)(B) of such Act is
amended—</text>
<paragraph id="H71B85FF9DC6C4D18A7C3F5CDB363C5C3"><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="H2D939074CF4A495A9D6B717E039D736A"><enum>(2)</enum><text>by striking
<quote>any issuer</quote> each place it appears and inserting <quote>any
issuer, broker, or dealer</quote>; and</text>
</paragraph><paragraph id="H96037D93977A498A94E7B12BCB7AE919"><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="H1C6560EDAE7B448DA5D08E534003E8B3"><enum>(g)</enum><header>Foreign public
accounting firms</header><text>Section 106 of such Act is amended—</text>
<paragraph id="H65B8FA0E3F734E748FEB059789273602"><enum>(1)</enum><text>in subsection
(a)(1), by striking <quote>issuer</quote> and inserting <quote>issuer, broker,
or dealer</quote>; and</text>
</paragraph><paragraph id="H32CFEC18FB0E4F5BAA1A90AD9C14A2FE"><enum>(2)</enum><text>in subsection
(a)(2), by striking <quote>issuers</quote> and inserting <quote>issuers,
brokers, or dealers</quote>.</text>
</paragraph></subsection><subsection id="HF57D688FA66744F9BD3AA70514D08EA8"><enum>(h)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 109 of such Act is amended—</text>
<paragraph display-inline="no-display-inline" id="HD81723D7E07F4CEAA93D0C797DCA4BF4"><enum>(1)</enum><text>in subsection
(c)(2), by striking <quote>subsection (i)</quote> and inserting
<quote>subsection (j)</quote>;</text>
</paragraph><paragraph id="H952298867A014AB39DB4060CA233D25F"><enum>(2)</enum><text>in subsection
(d)(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 and brokers and dealers, as
appropriate</quote>;</text>
</paragraph><paragraph id="HE082FC0DC8264187A869CB59CBFB73CD"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d), by inserting at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H49A2D71F35D4445AB7FD066B35802181" style="OLC">
<paragraph id="HA09535EC98EE4DE4896842B63EE5AA65"><enum>(3)</enum><header>Brokers and
dealers</header><text display-inline="yes-display-inline">The rules of the
Board under paragraph (1) shall provide that the allocation, assessment, and
collection by the Board (or an agent appointed by the Board) of the fee
established under paragraph (1) with respect to brokers and dealers shall not
begin until the first day of the first full fiscal year beginning after the
date of the enactment of this
paragraph.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H74CC4B763587465FBFB45138A283EE1D"><enum>(4)</enum><text>by redesignating
subsections (h), (i), and (j) as subsections (i), (j), and (k), respectively;
and</text>
</paragraph><paragraph id="H8B676BCBBEE44F459FDDA377F2460C1C"><enum>(5)</enum><text>by inserting after
subsection (g) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H545D634C1CAF4016AEEA52E1FDEDDA22" style="OLC">
<subsection id="HEFC4BDC3E65E4E1EBF51E08AB9A2F11B"><enum>(h)</enum><header>Allocation of
accounting support fees among brokers and dealers</header>
<paragraph id="H65303210F8E546DBA326DAF7195DC921"><enum>(1)</enum><header>In
general</header><text>Any amount due from brokers and dealers (or a particular
class of such brokers and dealers) under this section to fund the budget of the
Board shall be allocated among and payable by such brokers and dealers (or such
brokers and dealers in a particular class, as applicable). A broker or dealer’s
allocation shall be in proportion to the broker or dealer’s net capital
compared to the total net capital of all brokers and dealer, in accordance with
the rules of the Board.</text>
</paragraph><paragraph id="HFFA42ABB66B24AF289C83CA5D8A2E386"><enum>(2)</enum><header>Obligation to
pay</header><text display-inline="yes-display-inline">Every broker or dealer
shall pay the share of a reasonable annual accounting support fee or fees
allocated to such broker or dealer under this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2E97CA87D92E419E8BE0A4D7163DCD5E"><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 is amended—</text>
<paragraph id="H472531AA0F3749E39442A7FDE4F57205"><enum>(1)</enum><text>by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and</text>
</paragraph><paragraph id="H098E54639F574DFCB9B8CE9190F9566C"><enum>(2)</enum><text>by inserting after
clause (i) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H008F026CF8BC42B18AD5FB3AF8529FD4" style="OLC">
<clause id="HA36649FD3F3C4EA29958727546212B2F"><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 subject to the jurisdiction of such self-regulatory
organization;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H63A2C0C382B64B79A465556C66F1197E"><enum>(j)</enum><header>Use of documents
related to an inspection or investigation</header><text>Section
105(b)(5)(B)(ii) of such Act is amended—</text>
<paragraph id="HD81F4BE578A64D59B005F54406CDDC13"><enum>(1)</enum><text>in subclause
(III), by striking <quote>and</quote>;</text>
</paragraph><paragraph id="H6E820A9E52774B25B30609306F7A137D"><enum>(2)</enum><text>in subclause (IV),
by striking the comma and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="H5F0DBD47ECF744E191D5A32DD4D47C40"><enum>(3)</enum><text>by inserting after
subclause (IV) the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H1BB5C81A8142426C9ED9B6F60E3B2B21" style="OLC">
<subclause id="H6EF10DAB104E498CA53CC65B383C399D"><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 subject to the
jurisdiction of such self-regulatory
organization,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H184CBB11E4D94B7AA06D348C9A714DA3"><enum>7602.</enum><header>Foreign
regulatory information sharing</header>
<subsection id="H86A825ED110F471A9B89CC04C2C716D8"><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 inserting after paragraph (16) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HFE86B9A5F7A748FAA0766BC96D7BD436" style="OLC">
<paragraph id="HEE57ADC66D7548AB9E2460E2FFC1F0B8"><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="H299337EA5B604231B3831AFAB006DF60"><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="HA3967ACEB32A4B57B87BB914BF90E2CE" style="OLC">
<subparagraph id="HBF17F306C97C433489B44678E5D1FB8A"><enum>(C)</enum><header>Availability to
foreign oversight authorities</header><text display-inline="yes-display-inline">When in the Board’s discretion it is
necessary to accomplish the purposes of this Act or to protect investors, and
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 within the inspection authority, or other regulatory or
law enforcement jurisdiction, of a foreign auditor oversight authority may be
made available to the foreign auditor oversight authority if the foreign
auditor oversight authority provides such assurances of confidentiality as the
Board determines
appropriate.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6E53E6300D764768BCB1A457CD2E42F0"><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 id="HB6827BC52F7C4EA5AA0BD28EAE493ACD"><enum>7603.</enum><header>Expansion of
audit information to be produced and exchanged with foreign
counterparts</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="HEE7B2FBFF3AA4BEDA6E2FB48887D5374"><enum>(1)</enum><text>by amending
subsection (b) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD530C70F403147AD83C55761F9A47CF5" style="OLC">
<subsection id="H94D92178726A40869E881074CACF3F47"><enum>(b)</enum><header>Production of
documents</header>
<paragraph id="H0FFDE8D9154D4480AC854DFA21CDA65A"><enum>(1)</enum><header>Production by
foreign firms</header><text display-inline="yes-display-inline">If a foreign
public accounting firm issues an audit report, performs audit work, conducts
interim reviews, or performs material services upon which a registered public
accounting firm relies in the conduct of an audit or interim review, the
foreign public accounting firm shall produce its audit work papers and all
other documents related to any such audit work or interim review to the
Commission or the Board when requested by the Commission or the Board and the
foreign public accounting firm shall be subject to the jurisdiction of the
courts of the United States for purposes of enforcement of any request of such
documents.</text>
</paragraph><paragraph id="H2DD0C3D4E9544ACEA9B5BCC194ABA1FF"><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="H1395CD8E17C747F8AF063D22F92CA1D3"><enum>(A)</enum><text>produce the
foreign public accounting firm’s audit work papers 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="H0E5FEAC2E32343C4A7F0F1DF7E899387"><enum>(B)</enum><text>secure the
agreement of any foreign public accounting firm to such production, as a
condition of its reliance on the work of that foreign public accounting
firm.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6A84DB0BB4A24911BC6D82A39FC4C81F"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subsection (d) as
subsection (g); and</text>
</paragraph><paragraph id="H55EFF12EFE3749FA8B17A96D26B3F1D8"><enum>(3)</enum><text>by inserting after
subsection (c) the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="H8FBD86A93F584742BEC93D8CD5FE1624" style="OLC">
<subsection id="H169C1CFB31B04E3FABD75FC340E5A2DD"><enum>(d)</enum><header>Service of
requests or process</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 firm a written irrevocable
consent and power of attorney that designates the domestic firm as an agent
upon whom may be served any process, pleadings, or other papers in any action
brought to enforce this section. Any foreign public accounting firm that issues
an audit report, performs audit work, performs interim reviews, or performs
other material services upon which a registered public accounting firm relies
in the conduct of an audit or interim review, shall designate to the Commission
or the Board an agent in the United States upon whom may be served any process,
pleading, or other papers in any action brought to enforce this section or any
request by the Commission or the Board under this section.</text>
</subsection><subsection id="HD6D0D896AE1246B5A36749D16B1CBC14"><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 a violation of this
Act.</text>
</subsection><subsection id="H46B499EDA063416CBAFB4FD0C0046B05"><enum>(f)</enum><header>Other means of
satisfying production obligations</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
section, the staff of the Commission or Board may allow foreign public
accounting firms subject to this section to meet production obligations under
this section though alternate means, such as through foreign counterparts of
the Commission or
Board.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H93557098E1054807A3B34B216107B906"><enum>7604.</enum><header>Conforming
amendment related to registration</header><text display-inline="no-display-inline">Section 102(b)(3)(A) of the Sarbanes-Oxley
Act of 2002 (15 U.S. Code 7212(b)(3)(A)) is amended by striking <quote>by the
Board</quote> and inserting <quote>by the Commission or the
Board</quote>.</text>
</section><section id="H2E78C379B0CA4A0DB16B17E1EF98124E"><enum>7605.</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="H68C0BDA4B34F45FB8B62A2736A6A5ED4"><enum>(1)</enum><text>by amending
subsection (a) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HCC5919A18BD04118B93EE610CC23BD15" style="OLC">
<subsection id="H4AEE4C2A3CC54F26B4D4E5DAD2DA56FD"><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 (as such term is defined in
section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47)),
the Commission obtains a civil penalty against any person for a violation of
such laws or the rules and regulations thereunder, or such person agrees in
settlement of any such action to such civil penalty, the amount of such civil
penalty or settlement 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="HFB7E8B606CC64940A3DD01DAE69A1EFB"><enum>(2)</enum><text>in subsection (b),
by—</text>
<subparagraph id="H421D9B6B8FAC412A98604AF0264217E4"><enum>(A)</enum><text>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="HDE73B86443BF477FA9C2E702F8172F2A"><enum>(B)</enum><text>striking <quote>in
the disgorgement fund</quote> and inserting <quote>in such fund</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H8DDD70A3DE5846F2A9A53965290F4292"><enum>(3)</enum><text>by striking
subsection (e).</text>
</paragraph></section><section id="HD700AFCE8AB94B988D16B0DCCACB0C17"><enum>7606.</enum><header>Exemption for
nonaccelerated filers</header>
<subsection id="H9754367E452546C79BF2DB832BB4CBEE"><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="H7E9F6A1B99F04F9980FAF93F3B1E05F2" style="OLC">
<subsection id="H0BDE923F7CA8450D99972EBC8971F198"><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 not an accelerated filer within the meaning 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 id="H75C3D00EF8CD45E1B672D8A59120E2D5"><enum>(b)</enum><header>Study</header><text display-inline="yes-display-inline">The Securities and Exchange Commission and
the Comptroller General shall jointly 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 180 days after the date of the enactment of
this subtitle, the Commission and the Comptroller General shall transmit a
report of such study to Congress.</text>
</subsection></section><section id="HA3765333226D44EE82BCF556D1D06929"><enum>7607.</enum><header>Whistleblower
protection against retaliation by a subsidiary of an issuer</header><text display-inline="no-display-inline">Section 1514A(a) 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>(15 U.S.C.
78o(d)),</quote>.</text>
</section><section id="H32DFF7CED9674051B7EBFC05C3816334"><enum>7608.</enum><header>Congressional
access to information</header><text display-inline="no-display-inline">Section
101 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="HC03B01397A0D4E7E8AAAB18941985B4A" style="OLC">
<subsection id="H4B432A7C70404424AAFE557D65B045B4"><enum>(i)</enum><header>Congressional
access to information</header><text display-inline="yes-display-inline">Nothing
in this section shall—</text>
<paragraph id="H6DA4A5FF4D0244CD90D45A5481750E40"><enum>(1)</enum><text>affect the Boards
obligations, if any, to provide access to records under the Right to Financial
Privacy Act; or</text>
</paragraph><paragraph id="H6A3EB8D24C5C4E518D93D0E29251948F"><enum>(2)</enum><text display-inline="yes-display-inline">authorize the Board to withhold information
from Congress or prevent the Board from complying with an order of a court of
the United States in an action commenced by the United States or the
Board.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H713CDBC4C05D4B0FB4C31C2FBE85E278"><enum>7609.</enum><header>Creation of
ombudsman for the PCAOB</header>
<subsection id="H491D875637E3449E81172D4CB1B2727B"><enum>(a)</enum><header>Ombudsman</header><text display-inline="yes-display-inline">Title I of the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7211 et seq.), as amended by section 7601(a)(1), is further amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H83F02D1668E74144BA595A222FADD768" style="OLC">
<section id="HD8651B6A0DAE47D89852142D6F8DEA4C"><enum>111.</enum><header>Ombudsman</header>
<subsection id="H747F6D078AD44E4987F1B80D83A604D5"><enum>(a)</enum><header>Establishment
Required</header><text display-inline="yes-display-inline">Not later than 180
days after the date of enactment of the Investor Protection Act, the Board
shall appoint an ombudsman for the Board. The Ombudsman shall report directly
to the Chairman.</text>
</subsection><subsection id="HC3E17502E23343C7B756E3EBB3839893"><enum>(b)</enum><header>Duties of
Ombudsman</header><text>The ombudsman appointed in accordance with subsection
(a) for the Board shall—</text>
<paragraph id="H26B90E169697428AB0593156E02C01EA"><enum>(1)</enum><text>act as a liaison
between the Board and—</text>
<subparagraph id="HF23C8ADAC3904C0E866BB84DFE2A73F2"><enum>(A)</enum><text>any registered
public accounting firm or issuer with respect to issues or disputes concerning
the preparation or issuance of any audit report with respect to that issuer;
and</text>
</subparagraph><subparagraph id="H7E0DE8814C404DACBF3A95347438F404"><enum>(B)</enum><text>any affected
registered public accounting firm or issuer with respect to—</text>
<clause id="H85581DCF32DE474DBFA296DED06BECDB"><enum>(i)</enum><text>any problem such
firm or issuer may have in dealing with the Board resulting from the regulatory
activities of the Board, particularly with regard to the implementation of
section 404; and</text>
</clause><clause id="H623EB0087CCC4AAE83D2ED7F1E45ECFB"><enum>(ii)</enum><text>issues caused by
the relationships of registered public accounting firms and issuers generally;
and</text>
</clause></subparagraph></paragraph><paragraph id="H82D15A05B70A402DBB21CA8C4DFFF17A"><enum>(2)</enum><text>assure that
safeguards exist to encourage complainants to come forward and to preserve
confidentiality; and</text>
</paragraph><paragraph id="H55C029EFF7404F20B00FD53F9511F181"><enum>(3)</enum><text>carry out such
activities, and any other activities assigned by the Board, in accordance with
guidelines prescribed by the
Board.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H180C46DFA74B4BE5850B107582D3FE7B"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of sections in section 1(b) of such Act is
amended, by inserting after the item relating to section 110 (as added by
section 601(a)(2)) the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD2CDED0C1FE44D6493106F9981AB29DE" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 111.
Ombudsman.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5E04C2E67E3F453D8E68E6B7E6728AA9"><enum>7610.</enum><header>Auditing
Oversight Board</header><text display-inline="no-display-inline">The
Sarbanes-Oxley Act of 2002 is amended—</text>
<paragraph id="H8E5D4BCB3B164F6FA59C59B93FFC559F"><enum>(1)</enum><text>in section
2(a)(5), by striking <quote>Public Company Accounting Oversight Board</quote>
and inserting <quote>Auditing Oversight Board</quote>;</text>
</paragraph><paragraph id="H88EF1431FF3349C5BB929CD4FFB25EBA"><enum>(2)</enum><text display-inline="yes-display-inline">in section 101(a), by striking
<quote>Public Company Accounting Oversight Board</quote> and inserting
<quote>Auditing Oversight Board</quote>; and</text>
</paragraph><paragraph id="HB1B66AB04651476C9D16566AAF19F0BD"><enum>(3)</enum><text display-inline="yes-display-inline">in the heading of title I, by striking
<quote><header-in-text level="title" style="OLC">Public Company Accounting
Oversight Board</header-in-text></quote> and inserting <quote><header-in-text level="title" style="OLC">Auditing Oversight
Board</header-in-text></quote>.</text>
</paragraph></section></part><part id="H8FD89CD500A34E538ED1EB0270935FD2"><enum>7</enum><header>Senior
Investment Protection</header>
<section id="HEE4F8BADAC6E4BF3A390A8854BBA4D8F"><enum>7701.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph id="HD1EAE964A6F14C178584A59B9A81289C"><enum>(1)</enum><text>many seniors are
targeted by salespersons and advisers using misleading certifications and
professional designations;</text>
</paragraph><paragraph id="H33110970D3884A5C8523AC9413A94FFF"><enum>(2)</enum><text>many
certifications and professional designations used by salespersons and advisers
represent limited training or expertise, and may in fact be of no value with
respect to advising seniors on financial and estate planning matters, and far
too often, such designations are obtained simply by attending a weekend seminar
and passing an open book, multiple choice test;</text>
</paragraph><paragraph id="H4E9461A2924646E693D152778167FFA5"><enum>(3)</enum><text>many seniors have
lost their life savings because salespersons and advisers holding a misleading
designation have steered them toward products that were unsuitable for them,
given their retirement needs and life expectancies;</text>
</paragraph><paragraph id="HDE5847099B5B4B2B9E9AC2F3303E6BAE"><enum>(4)</enum><text>seniors have a
right to clearly know whether they are working with a qualified adviser who
understands the products and is working in their best interest or a
self-interested salesperson or adviser advocating particular products;
and</text>
</paragraph><paragraph id="H7EDC9A06198543A7A3A8A15F68D4FC30"><enum>(5)</enum><text>many existing
State laws and enforcement measures addressing the use of certifications,
professional designations, and suitability standards in selling financial
products to seniors are inadequate to protect senior investors from
salespersons and advisers using such designations.</text>
</paragraph></section><section id="H91559D7FD19640F4B1D3A5AF0A280140"><enum>7702.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this part:</text>
<paragraph id="HBBD8563A3C9F4CE6A898FCD64163D6EA"><enum>(1)</enum><header>Misleading
designation</header><text>The term <term>misleading designation</term>—</text>
<subparagraph id="HA0DDF50E52B94377991EB4576FA862D3"><enum>(A)</enum><text>means the use of a
purported certification, professional designation, or other credential, that
indicates or implies that a salesperson or adviser has special certification or
training in advising or servicing seniors; and</text>
</subparagraph><subparagraph id="HCEC48C804E824B8D8DB13EF6132058E9"><enum>(B)</enum><text>does not include
any legitimate certification, professional designation, license, or other
credential, if—</text>
<clause id="H424649B7FCF54892A4AD18A33327D3B7"><enum>(i)</enum><text>it
has been offered by an academic institution having regional accreditation;
or</text>
</clause><clause id="H21DBD213761640C382F01E401767A9A4"><enum>(ii)</enum><text display-inline="yes-display-inline">it meets the standards for certifications,
licenses, and professional designations outlined by the North American
Securities Administrators Association (in this part referred to as the
<quote>NASAA</quote>) Model Rule on the Use of Senior-Specific Certifications
and Professional Designations, as in effect on the date of the enactment of
this subtitle, or any successor thereto, or it was issued by or obtained from
any State.</text>
</clause></subparagraph></paragraph><paragraph id="H62BF0BF8E352493C8BFF2207937FE356"><enum>(2)</enum><header>Financial
product</header><text>The term <term>financial product</term> means securities,
insurance products (including insurance products which pay a return, whether
fixed or variable), and bank and loan products.</text>
</paragraph><paragraph id="H14571463EE3548B18199C5DD60F6BEB2"><enum>(3)</enum><header>Misleading or
fraudulent marketing</header><text>The term <term>misleading or fraudulent
marketing</term> means the use of a misleading designation when selling to or
advising a senior about the sale of a financial product.</text>
</paragraph><paragraph id="HDDC7F07E7EDC42129D69DCCF464AC23E"><enum>(4)</enum><header>Senior</header><text>The
term <term>senior</term> means any individual who has attained the age of 62
years or more.</text>
</paragraph><paragraph id="H771DD44011474A8B9DBDE65C43904750"><enum>(5)</enum><header>State</header><text>The
term <term>State</term> means each of the 50 States, the District of Columbia,
and the unincorporated territories of Puerto Rico and the U.S. Virgin
Islands.</text>
</paragraph></section><section id="H8B0375829DC44226ACBA139802DF6F08"><enum>7703.</enum><header>Grants to
States for enhanced protection of seniors from being mislead by false
designations</header>
<subsection id="HA19660CEDECA4AF8A61300C01DEDD36F"><enum>(a)</enum><header>Grant
program</header><text>The Securities and Exchange Commission (in this part
referred to as the <term>Commission</term>)—</text>
<paragraph id="HC6318F6DBD914EFCB129B58BBCD58331"><enum>(1)</enum><text>shall establish a
program in accordance with this part to provide grants to States—</text>
<subparagraph id="HB266F6B7359B415F83810A9F151F5E50"><enum>(A)</enum><text>to investigate and
prosecute misleading and fraudulent marketing practices; or</text>
</subparagraph><subparagraph id="H89F24EE53EB447EB8CDB9140AE52E442"><enum>(B)</enum><text>to develop
educational materials and training aimed at reducing misleading and fraudulent
marketing of financial products toward seniors; and</text>
</subparagraph></paragraph><paragraph id="H7FB9E2EC36A6431D9CACC79AB9321C63"><enum>(2)</enum><text>may establish such
performance objectives, reporting requirements, and application procedures for
States and State agencies receiving grants under this part as the Commission
determines are necessary to carry out and assess the effectiveness of the
program under this part.</text>
</paragraph></subsection><subsection id="H8A53C6BDFD9B47139AD9B004A575E18C"><enum>(b)</enum><header>Use of grant
amounts</header><text>A grant under this part may be used (including through
subgrants) by the State or the appropriate State agency designated by the
State—</text>
<paragraph id="HFE1FDAB5E11A4893A5EE3BA6BB713BDE"><enum>(1)</enum><text>to fund additional
staff to identify, investigate, and prosecute (through civil, administrative,
or criminal enforcement actions) cases involving misleading or fraudulent
marketing of financial products to seniors;</text>
</paragraph><paragraph id="H7A891B94E8E842EC8D5E21C963B385B5"><enum>(2)</enum><text>to fund
technology, equipment, and training for regulators, prosecutors, and law
enforcement in order to identify salespersons and advisers who target seniors
through the use of misleading designations;</text>
</paragraph><paragraph id="HA2E0E04993D94BF08D02717FA9A3CDA6"><enum>(3)</enum><text>to fund
technology, equipment, and training for prosecutors to increase the successful
prosecution of those targeting seniors with the use of misleading
designations;</text>
</paragraph><paragraph id="H5C0B00D3BAF3428CBC5E709524BAAB9A"><enum>(4)</enum><text>to provide
educational materials and training to regulators on the appropriateness of the
use of designations by salespersons and advisers of financial products;</text>
</paragraph><paragraph id="H23E470F889324C3BBBDD591B5B6B55C8"><enum>(5)</enum><text>to provide
educational materials and training to seniors to increase their awareness and
understanding of designations; and</text>
</paragraph><paragraph id="H95FB061973F64DEFBCF2B9E1D6285A3C"><enum>(6)</enum><text>to develop
comprehensive plans to combat misleading or fraudulent marketing of financial
products to seniors.</text>
</paragraph></subsection><subsection id="H1754E774018A40689D9259B7DBAF6D23"><enum>(c)</enum><header>Grant
requirements</header>
<paragraph id="H03987910C69249B8AC910CADE43DD875"><enum>(1)</enum><header>Maximum</header><text>The
amount of a grant under this part may not exceed $500,000 per fiscal year per
State, if all requirements of paragraphs (2), (3), (4), and (5) are met. Such
amount shall be limited to $100,000 per fiscal year per State in any case in
which the State meets the requirements of—</text>
<subparagraph id="HC3EC4BFB99B7432692E77BAB815BD467"><enum>(A)</enum><text>paragraphs (2) and
(3), but not each of paragraphs (4) and (5); or</text>
</subparagraph><subparagraph id="H2E733B692FDC477EA5F5367C16A8DEB3"><enum>(B)</enum><text>paragraphs (4) and
(5), but not each of paragraphs (2) and (3).</text>
</subparagraph></paragraph><paragraph id="HE255C35D641244828FD313773E7A6D8F"><enum>(2)</enum><header>Standard
designation rules for securities</header><text>A State shall have adopted rules
on the appropriate use of designations in the offer or sale of securities or
investment advice, which shall meet or exceed the minimum requirements of the
NASAA Model Rule on the Use of Senior-Specific Certifications and Professional
Designations, as in effect on the date of the enactment of this subtitle, or
any successor thereto.</text>
</paragraph><paragraph id="H9BE83B50C0C64B7C86922090E3945D2B"><enum>(3)</enum><header>Suitability
rules for securities</header><text>A State shall have adopted standard rules on
the suitability requirements in the sale of securities, which shall, to the
extent practicable, conform to the minimum requirements on suitability imposed
by self-regulatory organization rules under the securities laws (as defined in
section 3 of the Securities Exchange Act of 1934).</text>
</paragraph><paragraph id="H165370F2AECF42779381D01FD43B373C"><enum>(4)</enum><header>Standard
designation rules for insurance products</header><text>A State shall have
adopted standard rules on the appropriate use of designations in the sale of
insurance products, which shall, 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, as in effect on the
date of the enactment of this subtitle, or any successor thereto.</text>
</paragraph><paragraph id="HE2D369179F714D75872A26B9AD73BE56"><enum>(5)</enum><header>Suitability and
supervision rules for annuity products</header>
<subparagraph id="H9AE61A4EC85F4C81A6D864C811656A37"><enum>(A)</enum><header>In
general</header><text>A State shall have adopted rules governing insurer
supervision of, suitability of, and insurer and insurance producer conduct
relating to, the sale of annuity products, including fixed and index
annuities.</text>
</subparagraph><subparagraph id="H75CB0179D6C54213A3F4F10AF15262AB"><enum>(B)</enum><header>Annuity products
criteria</header><text>The rules required by subparagraph (A) shall, to the
extent practicable, provide—</text>
<clause id="H4281FC8BB84545ACAE86771DF6BD7F8F"><enum>(i)</enum><text>that
insurers, and insurance producers are responsible for, and liable for penalties
for, the suitability of each recommended annuity transaction;</text>
</clause><clause id="HD59B22E3AC214DB3A2185E955933ADD0"><enum>(ii)</enum><text>that insurers and
insurance producers are required to apply a standard for determining the
suitability of each recommended annuity transaction, including fixed and index
annuities, that is at least as protective of the interests of the consumer as
rule 2821(b) of the Financial Industry Regulatory Authority (in this paragraph
referred to as <quote>FINRA</quote>), as in effect on the date of the enactment
of this subtitle, or any successor to such rule;</text>
</clause><clause id="H40347EB2D7E14FF7BAAF4C422FF0E23E"><enum>(iii)</enum><text>that insurers
and insurance producers are required to maintain a process for review of the
suitability, and approval or disapproval, of each recommended annuity
transaction that is at least as protective of the interests of the consumer as
the principal review required under rule 2821(c) of FINRA, as in effect on the
date of the enactment of this subtitle, or any successor to such rule;</text>
</clause><clause id="HB7B5E90EAE6942F7935E29523728164B"><enum>(iv)</enum><text>that insurers and
insurance producers are required to maintain processes for the supervision of
direct annuity sales and insurance producer-recommended annuity sales
(including procedures for the insurer to obtain and confirm consumer
suitability information and for the insurer to confirm consumer understanding
of the annuity transaction) that are at least as protective of the interests of
the consumer as member broker and dealer supervision requirements of FINRA, as
in effect on the date of the enactment of this subtitle, or any successor to
such requirements;</text>
</clause><clause id="H388C47EB6702489CAFFD33E01E430C7D"><enum>(v)</enum><text>that
insurers are required to verify that each insurance producer successfully
completes, and each insurance producer is required to receive, training
designed to ensure that the insurance producer is competent to recommend each
class of annuity;</text>
</clause><clause id="HB62D379F56384344803E3AF6973AE315"><enum>(vi)</enum><text>that insurers are
required to verify that insurance producers receive, and insurance producers
are required to receive, training regarding the features of each offered
annuity product, to an extent that is at least as protective of the interests
of the consumer as the FINRA firm element training requirements, as in effect
on the date of the enactment of this subtitle, or any successor to such
requirements;</text>
</clause><clause id="HFEF5560642B845ECB25467FAF3142F4E"><enum>(vii)</enum><text>for coordination
of such rules with the rules of FINRA governing member brokers, dealers, and
security representatives, to the extent appropriate, consistent with protecting
the interests of consumers, for State insurance regulators to rely on, or to
avoid duplication of FINRA rules; and</text>
</clause><clause id="H01B5DFCCED084DE2BF50F90C565A3986"><enum>(viii)</enum><text>for exemption
from such rules only if such exemption is consistent with the protection of
consumers.</text>
</clause></subparagraph></paragraph></subsection></section><section id="H6C5DBD151F5749DEA9B01CC63012C987"><enum>7704.</enum><header>Applications</header><text display-inline="no-display-inline">To be eligible for a grant under this part,
the State or appropriate State agency shall submit to the Commission a proposal
to use the grant money to protect seniors from misleading or fraudulent
marketing techniques in the offer and sale of financial products, which
application shall—</text>
<paragraph id="HA7AE41D44BBE444AB1F590426A19C74E"><enum>(1)</enum><text>identify the scope
of the problem;</text>
</paragraph><paragraph id="H25E440B523014381BA87CD091E82ADAE"><enum>(2)</enum><text>describe how the
proposed program will help to protect seniors from misleading or fraudulent
marketing in the sale of financial products, including, at a minimum—</text>
<subparagraph id="H28DDCEF792BD4BA4AA733D88AB9A86F1"><enum>(A)</enum><text>by proactively
identifying senior victims of misleading and fraudulent marketing in the offer
and sale of financial products;</text>
</subparagraph><subparagraph id="H0A4E54C3AB1443B98641AD6A1D7D5271"><enum>(B)</enum><text>how the proposed
program can assist in the investigation and prosecution of those using
misleading or fraudulent marketing in the offer and sale of financial products
to seniors; and</text>
</subparagraph><subparagraph id="H439A667ED4C6441A9F1425E97DEFE9E3"><enum>(C)</enum><text>how the proposed
program can help discourage and reduce future cases of misleading or fraudulent
marketing in the offer and sale of financial products to seniors; and</text>
</subparagraph></paragraph><paragraph id="H4FBDA571F89A485EB3314386FF1530CF"><enum>(3)</enum><text>describe how the
proposed program is to be integrated with other existing State efforts.</text>
</paragraph></section><section id="H4391158D7FBA450CA73745B2847582BD"><enum>7705.</enum><header>Length of
participation</header><text display-inline="no-display-inline">A State
receiving a grant under this part shall be provided assistance funds for a
period of 3 years, after which the State may reapply for additional
funding.</text>
</section><section id="H0F51ED9A4AD349798E2F6C43E2C154EE"><enum>7706.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated to carry out this part, $8,000,000 for each of
the fiscal years 2011 through 2015.</text>
</section></part><part id="HB58FAE7D6E0F4460BB2C269F05463A30"><enum>8</enum><header>Registration of
Municipal Financial Advisors</header>
<section id="H9B0254BA9F4C45378DFD3EC1B3DFBD0B"><enum>7801.</enum><header>Municipal
financial adviser registration requirement</header>
<subsection id="H08B57BE015804804820DD2250EFCF296"><enum>(a)</enum><header>In
general</header><text>The Securities Exchange Act of 1934 (as amended by
section 3204) is amended by inserting after section 15F (15 U.S.C. 78o–7) the
following new section:</text>
<quoted-block id="HEA239540E765476494C9661F1ACD871E" style="OLC">
<section id="HDF5549BFCE4B46C99FAE6FB4C9DE9A11"><enum>15G.</enum><header>Municipal
financial adviser registration requirement</header>
<subsection id="HD7329E16B00C4ADD9EF880DB28F69B34"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HD0F78A91E892421EA8C1D8570C1B02AA"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HCE81AE0EA1CC44749E1C5E98967927AD"><enum>(A)</enum><text display-inline="yes-display-inline">It shall be unlawful for any person to make
use of the mails or any means or instrumentality of interstate commerce to act
as a municipal financial adviser unless such person is registered as a
municipal financial adviser in accordance with subsection (b).</text>
</subparagraph><subparagraph id="HF38EF27044964FBAA053BE203323D5F2" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to a
natural person associated with a municipal financial adviser, as long as such
adviser is registered in accordance with subsection (b) and is not a natural
person.</text>
</subparagraph></paragraph><paragraph id="H7697B517C8394CC38D990D95789BB304" indent="up1"><enum>(2)</enum><text>The Commission, by rule or order, as
it deems consistent with the public interest and the protection of investors,
may conditionally or unconditionally exempt from paragraph (1) of this section
any municipal financial adviser or class of municipal financial advisers
specified in such rule or order.</text>
</paragraph></subsection><subsection id="H4469D19AD9D847FBBEABC9408D6BC6DD"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HA2557D8A948041B8A689D9F80D37A6EC"><enum>(1)</enum><text>A municipal financial
adviser may be registered by filing with the Commission an application for
registration in such form and containing such information and documents
concerning such municipal financial adviser and any persons associated with
such municipal financial adviser as the Commission, by rule, may prescribe as
necessary or appropriate in the public interest or for the protection of
investors. Within 45 days of the date of the filing of such application (or
within such longer period as to which the applicant consents), the Commission
shall—</text>
<subparagraph id="H48D4B3F5C5A041D58602A0BD57D17221" indent="up2"><enum>(A)</enum><text>by order grant registration,
or</text>
</subparagraph><subparagraph id="H484AFF2044864D6B99756E84A2523EAF" indent="up2"><enum>(B)</enum><text>institute proceedings to determine
whether registration should be denied. Such proceedings shall include notice of
the grounds for denial under consideration and opportunity for hearing and
shall be concluded within 120 days of the date of the filing of the application
for registration. At the conclusion of such proceedings, the Commission, by
order, shall grant or deny such registration. The Commission may extend the
time for conclusion of such proceedings for up to 90 days if it finds good
cause for such extension and publishes its reasons for so finding or for such
longer period as to which the applicant consents.</text>
</subparagraph><continuation-text continuation-text-level="paragraph" indent="subsection">The Commission shall grant such registration if the
Commission finds that the requirements of this section are satisfied. The
Commission shall deny such registration if it does not make such a finding or
if it finds that if the applicant were so registered, its registration would be
subject to suspension or revocation under paragraph (4).</continuation-text></paragraph><paragraph id="H730964DA5C844929A758B24DA9A90D19" indent="up1"><enum>(2)</enum><text>An application for registration of a
municipal financial adviser to be formed or organized may be made by a
municipal financial adviser to which the municipal financial adviser to be
formed or organized is to be the successor. Such application, in such form as
the Commission, by rule, may prescribe, shall contain such information and
documents concerning the applicant, the successor, and any persons associated
with the applicant or the successor, as the Commission, by rule, may prescribe
as necessary or appropriate in the public interest or for the protection of
investors. The grant or denial of registration to such an applicant shall be in
accordance with the procedures set forth in paragraph (1) of this subsection.
If the Commission grants such registration, the registration shall terminate on
the 45th day after the effective date thereof, unless prior thereto the
successor shall, in accordance with such rules and regulations as the
Commission may prescribe, adopt the application for registration as its
own.</text>
</paragraph><paragraph id="HB8FB8810E4BA41FEB83FAE824C7A144B" indent="up1"><enum>(3)</enum><text>Any provision of this title (other
than section 5 and subsection (a) of this section) which prohibits any act,
practice, or course of business if the mails or any means or instrumentality of
interstate commerce is used in connection therewith shall also prohibit any
such act, practice, or course of business by any registered municipal financial
adviser or any person acting on behalf of such a municipal financial adviser,
irrespective of any use of the mails or any means or instrumentality of
interstate commerce in connection therewith.</text>
</paragraph><paragraph id="HD5C0867BE3DE4295A3A84377E1EBE9AC" indent="up1"><enum>(4)</enum><text>The Commission, by order, shall
censure, place limitations on the activities, functions, or operations of,
suspend for a period not exceeding 12 months, or revoke the registration of any
municipal financial adviser if it finds, on the record after notice and
opportunity for hearing, that such censure, placing of limitations, suspension,
or revocation is in the public interest and that such municipal financial
adviser, whether prior or subsequent to becoming such, or any person associated
with such municipal financial adviser, whether prior or subsequent to becoming
so associated—</text>
<subparagraph id="HAF999BE0B87442BFAC62A7D7E7AD2E72"><enum>(A)</enum><text>has willfully made or caused to be
made in any application for registration or report required to be filed with
the Commission or with any other appropriate regulatory agency under this
title, or in any proceeding before the Commission with respect to registration,
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, or has
omitted to state in any such application or report any material fact which is
required to be stated therein;</text>
</subparagraph><subparagraph id="H08560CA3AC34431CB152FB409DFC0D27"><enum>(B)</enum><text>has been convicted within 10 years
preceding the filing of any application for registration or at any time
thereafter of any felony or misdemeanor or of a substantially equivalent crime
by a foreign court of competent jurisdiction which the Commission finds—</text>
<clause id="H7F15EDE2DF094BABA84E4BE5934B9BC2"><enum>(i)</enum><text>involves the purchase or sale of
any security, the taking of a false oath, the making of a false report,
bribery, perjury, burglary, any substantially equivalent activity however
denominated by the laws of the relevant foreign government, or conspiracy to
commit any such offense;</text>
</clause><clause id="HB0046805C91B4109A644FEC0C13A32FE"><enum>(ii)</enum><text>arises out of the conduct of the
business of a municipal financial adviser, broker, dealer, municipal securities
dealer, government securities broker, government securities dealer, investment
adviser, bank, insurance company, fiduciary, transfer agent, nationally
recognized statistical rating organization, foreign person performing a
function substantially equivalent to any of the above, or entity or person
required to be registered under the Commodity Exchange Act (7 U.S.C. 1 et seq.)
or any substantially equivalent foreign statute or regulation;</text>
</clause><clause id="H601940711E164F9096930B19E70986DD"><enum>(iii)</enum><text>involves the larceny, theft,
robbery, extortion, forgery, counterfeiting, fraudulent concealment,
embezzlement, fraudulent conversion, or misappropriation of funds, or
securities, or substantially equivalent activity however denominated by the
laws of the relevant foreign government; or</text>
</clause><clause id="HCBA46BC00EC441D99E2BE3DF1316D722"><enum>(iv)</enum><text>involves the violation of section
152, 1341, 1342, or 1343 or chapter 25 or 47 of title 18, or a violation of a
substantially equivalent foreign statute;</text>
</clause></subparagraph><subparagraph id="H8B1845212D7A4149B5DE10158E3DDF6C"><enum>(C)</enum><text>is permanently or temporarily enjoined
by order, judgment, or decree of any court of competent jurisdiction from
acting as a municipal financial adviser, investment adviser, underwriter,
broker, dealer, municipal securities dealer, government securities broker,
government securities dealer, transfer agent, nationally recognized statistical
rating organization, foreign person performing a function substantially
equivalent to any of the above, or entity or person required to be registered
under the Commodity Exchange Act or any substantially equivalent foreign
statute or regulation, or as an affiliated person or employee of any investment
company, bank, insurance company, foreign entity substantially equivalent to
any of the above, or entity or person required to be registered under the
Commodity Exchange Act or any substantially equivalent foreign statute or
regulation or from engaging in or continuing any conduct or practice in
connection with any such activity, or in connection with the purchase or sale
of any security;</text>
</subparagraph><subparagraph id="H4C3F4C5E01A34A218EAC901214239F63"><enum>(D)</enum><text>has willfully violated any provision
of the Securities Act of 1933, the Investment Advisers Act of 1940, the
Investment Company Act of 1940, the Commodity Exchange Act, this title, the
rules or regulations under any of such statutes, or is unable to comply with
any such provision;</text>
</subparagraph><subparagraph id="HBA499C83AF334982B497ED1BE7FD5646"><enum>(E)</enum><text>has willfully aided, abetted,
counseled, commanded, induced, or procured the violation by any other person of
any provision of the Securities Act of 1933, the Investment Advisers Act of
1940, the Investment Company Act of 1940, the Commodity Exchange Act, this
title, the rules or regulations under any of such statutes, or has failed
reasonably to supervise, with a view to preventing violations of the provisions
of such statutes, rules, and regulations, another person who commits such a
violation, if such other person is subject to his supervision. For the purposes
of this subparagraph, no person shall be deemed to have failed reasonably to
supervise any other person, if—</text>
<clause id="H44C8E8EC0D15474F939398F210A4106F"><enum>(i)</enum><text>there have been established
procedures, and a system for applying such procedures, which would reasonably
be expected to prevent and detect, insofar as practicable, any such violation
by such other person, and</text>
</clause><clause id="H2255499520424759A869AB817F2A0DFF"><enum>(ii)</enum><text>such person has reasonably
discharged the duties and obligations incumbent upon him by reason of such
procedures and system without reasonable cause to believe that such procedures
and system were not being complied with;</text>
</clause></subparagraph><subparagraph id="H6B844E550BE9407CBE5B138691A67097"><enum>(F)</enum><text>is subject to any order of the
Commission barring or suspending the right of the person to be associated with
a municipal financial adviser;</text>
</subparagraph><subparagraph id="H2B39BB5E47654F62B47DD74289DA84F6"><enum>(G)</enum><text>has been found by a foreign financial
regulatory authority to have—</text>
<clause id="HA258B4613EEB4FD7AD2BCF17E475F2A0"><enum>(i)</enum><text>made or caused to be made in any
application for registration or report required to be filed with a foreign
financial regulatory authority, or in any proceeding before a foreign financial
regulatory authority with respect to registration, any statement that 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, or has omitted to state in any
application or report to the foreign financial regulatory authority any
material fact that is required to be stated therein;</text>
</clause><clause id="H5560CD587FD34074AD27D01F2C32FD50"><enum>(ii)</enum><text>violated any foreign statute or
regulation regarding transactions in securities, or contracts of sale of a
commodity for future delivery, traded on or subject to the rules of a contract
market or any board of trade; or</text>
</clause><clause id="H42B538C758184DDB9F0DB8EE2C84743D"><enum>(iii)</enum><text>aided, abetted, counseled,
commanded, induced, or procured the violation by any person of any provision of
any statutory provisions enacted by a foreign government, or rules or
regulations thereunder, empowering a foreign financial regulatory authority
regarding transactions in securities, or contracts of sale of a commodity for
future delivery, traded on or subject to the rules of a contract market or any
board of trade, or has been found, by a foreign financial regulatory authority,
to have failed reasonably to supervise, with a view to preventing violations of
such statutory provisions, rules, and regulations, another person who commits
such a violation, if such other person is subject to his supervision; or</text>
</clause></subparagraph><subparagraph id="H9DA05200A2364637B7C658096D319657"><enum>(H)</enum><text>is subject to any final order of a
State securities commission (or any agency or officer performing like
functions), State authority that supervises or examines banks, savings
associations, or credit unions, State insurance commission (or any agency or
office performing like functions), an appropriate Federal banking agency (as
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(q))),
or the National Credit Union Administration, that—</text>
<clause id="H03236AD885C5435BBF39ED02B7BC74A3"><enum>(i)</enum><text>bars such person from association
with an entity regulated by such commission, authority, agency, or officer, or
from engaging in the business of securities, insurance, banking, savings
association activities, or credit union activities; or</text>
</clause><clause id="H28B16CB6089C4E1AACD232073A15B784"><enum>(ii)</enum><text>constitutes a final order based on
violations of any laws or regulations that prohibit fraudulent, manipulative,
or deceptive conduct.</text>
</clause></subparagraph></paragraph><paragraph id="H4E7D691040B046DB805D1BD08BE3735D" indent="up1"><enum>(5)</enum><text>Pending final determination whether
any registration under this subsection shall be revoked, the Commission, by
order, may suspend such registration, if such suspension appears to the
Commission, after notice and opportunity for hearing, to be necessary or
appropriate in the public interest or for the protection of investors. Any
registered municipal financial adviser may, upon such terms and conditions as
the Commission deems necessary or appropriate in the public interest or for the
protection of investors, withdraw from registration by filing a written notice
of withdrawal with the Commission. If the Commission finds that any registered
municipal financial adviser is no longer in existence or has ceased to do
business as a municipal financial adviser, the Commission, by order, shall
cancel the registration of such municipal financial adviser.</text>
</paragraph><paragraph id="H13DF85E8294A4950977B3874B9390F24" indent="up1"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H0C7A028C3AAB44D8B878CF53F274470F"><enum>(A)</enum><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 municipal financial adviser, 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 municipal financial adviser, 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>
<clause id="H3323FBA8D17F48DF94BDED18578ACA64" indent="up1"><enum>(i)</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 this subsection;</text>
</clause><clause id="H25C777E30EA2438F9983BD9C2B2293E5" indent="up1"><enum>(ii)</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 paragraph; or</text>
</clause><clause id="H7B590F074AFB43C8B52BA132BB63FEBC" indent="up1"><enum>(iii)</enum><text>is enjoined from any action,
conduct, or practice specified in subparagraph (C) of such paragraph
(4).</text>
</clause></subparagraph><subparagraph id="H7FEA8F10038D4A1C8C8C0EDB722B7CC0" indent="up1"><enum>(B)</enum><text>It shall be unlawful—</text>
<clause id="H997E76457290432A808FE161055C2BA1"><enum>(i)</enum><text>for any person as to whom an order
under subparagraph (A) is in effect, without the consent of the Commission,
willfully to become, or to be, associated with a municipal financial adviser in
contravention of such order; or</text>
</clause><clause id="H4C3825E5EAD34035B33787A34B163DF1"><enum>(ii)</enum><text>for any municipal financial adviser
to permit such a person, without the consent of the Commission, to become or
remain, a person associated with the municipal financial adviser in
contravention of such order, if such municipal financial adviser knew, or in
the exercise of reasonable care should have known, of such order.</text>
</clause></subparagraph></paragraph><paragraph id="H58840404C2A1443A93B6C0BB1AA9F60F" indent="up1"><enum>(7)</enum><text>No registered municipal financial
adviser shall act as such unless it meets such standards of operational
capability and such municipal financial adviser and all natural persons
associated with such municipal financial adviser meet such standards of
training, experience, competence, and such other qualifications as the
Commission finds necessary or appropriate in the public interest or for the
protection of investors. The Commission shall establish such standards by rules
and regulations, which may—</text>
<subparagraph id="HFDB9B13A2BCC433393644597770322B6"><enum>(A)</enum><text>specify that all or any portion of
such standards shall be applicable to any class of municipal financial advisers
and persons associated with municipal financial advisers;</text>
</subparagraph><subparagraph id="H3659A0417B5844F58ED7D3736A2AF096"><enum>(B)</enum><text>require persons in any such class to
pass tests prescribed in accordance with such rules and regulations, which
tests shall, with respect to any class of partners, officers, or supervisory
employees (which latter term may be defined by the Commission’s rules and
regulations) engaged in the management of the municipal financial adviser,
include questions relating to bookkeeping, accounting, supervision of
employees, maintenance of records, and other appropriate matters; and</text>
</subparagraph><subparagraph id="HC77360DEF1C04B53A6F861634FA7A7BB"><enum>(C)</enum><text>provide that persons in any such class
other than municipal financial advisers and partners, officers, and supervisory
employees of municipal financial advisers, may be qualified solely on the basis
of compliance with such standards of training and such other qualifications as
the Commission finds appropriate.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
Commission, by rule, may prescribe reasonable fees and charges to defray its
costs in carrying out this paragraph, including, but not limited to, fees for
any test administered by it or under its direction.</continuation-text></paragraph></subsection><subsection id="H5D8539601FC54E88B2D4BB0D788C3D12"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H2DDD6FB6624F44ECB1095C8A019A606D"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAEC6465A813C4B3A95764A928D336E98"><enum>(A)</enum><text>No municipal financial
adviser shall make use of the mails or any means or instrumentality of
interstate commerce in connection with which such municipal financial adviser
engages in any fraudulent, deceptive, or manipulative act or practice or
violates such rules and regulations regarding conflicts of interest or fair
practices, including but not limited to rules and regulations related to
political contributions, as the Commission shall prescribe in the public
interest or for the protection of investors or to maintain fair and orderly
markets.</text>
</subparagraph><subparagraph id="HC526C3C3CC1E4657BEBF04383AF385E8" indent="up2"><enum>(B)</enum><text>The Commission shall, for the
purposes of this paragraph as the Commission finds necessary or appropriate in
the public interest or for the protection of investors, by rules and
regulations define, and prescribe means reasonably designed to prevent, such
acts and practices as are fraudulent, deceptive, or manipulative.</text>
</subparagraph></paragraph><paragraph id="H5D060CF32AE245B2ABACBA0B77391650" indent="up1"><enum>(2)</enum><text>If the Commission finds, after notice
and opportunity for a hearing, that any person subject to the provisions of
this section or any rule or regulation thereunder has failed to comply with any
such provision, rule, or regulation in any material respect, the Commission may
publish its findings and issue an order requiring such person, and any person
who was a cause of the failure to comply due to an act or omission the person
knew or should have known would contribute to the failure to comply, to comply,
or to take steps to effect compliance, with such provision or such rule or
regulation thereunder upon such terms and conditions and within such time as
the Commission may specify in such order.</text>
</paragraph></subsection><subsection id="H0845ABAE62E94C0DB1BAB07C9BD0BEB3"><enum>(d)</enum><text>Every registered
municipal financial adviser shall establish, maintain, and enforce written
policies and procedures reasonably designed, taking into consideration the
nature of such municipal financial adviser’s business, to prevent the misuse in
violation of this title, or the rules or regulations thereunder, of material,
nonpublic information by such municipal financial adviser or any person
associated with such municipal financial adviser. The Commission, as it deems
necessary or appropriate in the public interest or for the protection of
investors, shall adopt rules or regulations to require specific policies or
procedures reasonably designed to prevent misuse in violation of this title (or
the rules or regulations thereunder) of material, nonpublic information.</text>
</subsection><subsection id="HC45FD7EB8BC44F31BFED958673DA3F56"><enum>(e)</enum><text>A municipal
financial adviser and any person associated with such municipal financial
adviser shall be deemed to have a fiduciary duty to any municipal securities
issuer for whom such municipal financial adviser acts as a municipal financial
adviser. A municipal financial adviser may not engage in any act, practice, or
course of business which is not consistent with a municipal financial adviser’s
fiduciary duty. The Commission shall, for the purposes of this paragraph, by
rules and regulations define, and prescribe means reasonably designed to
prevent, such acts, practices, and courses of business as are not consistent
with a municipal financial adviser’s fiduciary duty to its
clients.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9E288C84B6DC4405BE4ACF44F710B092"><enum>(b)</enum><header>Definition</header><text>Section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) (as amended by
section 3201(6)) is amended by adding at the end the following new
paragraphs:</text>
<quoted-block id="H0FFCA1086701449AA21E9D95D5FA5C23" style="OLC">
<paragraph id="H67CEB20A2D0043A8832939AD7CA258C6"><enum>(78)</enum><header>Municipal
financial adviser</header>
<subparagraph id="H9FA4B30E800C489895E36E50CEE2CFBC"><enum>(A)</enum><text>The term
<quote>municipal financial adviser</quote> means a person who, for
compensation, engages in the business of—</text>
<clause id="HDC75DC18F7204AF6B4A9651C5820F7A0"><enum>(i)</enum><text>providing advice
to a municipal securities issuer with respect to—</text>
<subclause id="HA10A29120C734F86BA0B774578B8F4E7"><enum>(I)</enum><text>the issuance or
proposed issuance of securities, including any remarketing of municipal
securities directly or indirectly by or on behalf of a municipal securities
issuer;</text>
</subclause><subclause id="H001C66C2A3D74DA7B4E2465DC2D21FF3"><enum>(II)</enum><text>the investment of
proceeds from securities issued by such municipal securities issuer;</text>
</subclause><subclause id="H30D898C891C844F1B152891808F36605"><enum>(III)</enum><text>the hedging of
any risks associated with subclauses (I) or (II), including advice as to swap
agreements (as defined in section 206A of the Gramm-Leach-Bliley Act regardless
of whether the counterparties constitute eligible contract participants);
or</text>
</subclause><subclause id="H034D01BE86804305977096C8796D3A93"><enum>(IV)</enum><text display-inline="yes-display-inline">preparation of disclosure documents in
connection with the issuance, proposed issuance, or previous issuance of
securities issued by a municipal securities issuer, including, without
limitation, official statements and documents prepared in connection with a
written agreement or contract for the benefit of holders of such securities
described in section 240.15c2–12 of title 17, Code of Federal
Regulations;</text>
</subclause></clause><clause id="HF818551AF2D9484EBAE418C8009D208A"><enum>(ii)</enum><text>assisting a
municipal securities issuer in selecting or negotiating guaranteed investment
contracts or other investment products; or</text>
</clause><clause id="H5B93BC35D2574573970A3752143F38B6"><enum>(iii)</enum><text>assisting any
municipal securities issuer in the primary offering of securities not involving
a public offering.</text>
</clause></subparagraph><subparagraph id="H73705D3B5249415C902D5433F66761DB"><enum>(B)</enum><text>Such term does not
include—</text>
<clause id="H721E010C14DD40A19A229F6DFF70F0F4"><enum>(i)</enum><text>an
attorney, if the attorney is offering advice or providing services that are of
a traditional legal nature;</text>
</clause><clause id="H7CD80AED3493431580BA1C7237E244A0"><enum>(ii)</enum><text>a
nationally recognized statistical rating organization to the extent it is
involved in the process of developing credit ratings;</text>
</clause><clause id="H057798941DFD4F3084E392E6180CFCDE"><enum>(iii)</enum><text>a registered
broker-dealer when acting as an underwriter, as such term is defined in section
2(a)(11) of the Securities Act of 1933 (15 U.S.C. section 77b(a)(11));
or</text>
</clause><clause id="HB9E6EA905D734B988F3A4B49EFD2B6C0"><enum>(iv)</enum><text>a
State or any political subdivision thereof.</text>
</clause></subparagraph></paragraph><paragraph id="H9337E7B556F545CEB546B4731D5C00C2"><enum>(79)</enum><header>Municipal
securities issuer</header><text>The term <quote>municipal securities
issuer</quote> means—</text>
<subparagraph id="H0E2AFD4BA14048569CBB37BAD536A770"><enum>(A)</enum><text>any entity that
has the ability to issue a security the interest on which is excludable from
gross income under section 103 of the Internal Revenue Code of 1986 and the
regulations thereunder; or</text>
</subparagraph><subparagraph id="H3643CCD7EA3E42C9B2F93BC048174F78"><enum>(B)</enum><text>any person who
receives the proceeds generated from the issuance of municipal
securities.</text>
</subparagraph></paragraph><paragraph id="H6DB7A1CB504F44FABAC14A0DA5561A92"><enum>(80)</enum><header>Person
associated with a municipal financial adviser; associated person of a municipal
financial adviser</header><text>The term <quote>person associated with a
municipal financial adviser</quote> or <quote>associated person of a municipal
financial adviser</quote> means any partner, officer, director, or branch
manager of such municipal financial adviser (or any person occupying a similar
status or performing similar functions), any person directly or indirectly
controlling, controlled by, or under common control with such municipal
financial adviser, or any employee of such municipal financial adviser, except
that any person associated with a municipal financial adviser whose functions
are solely clerical or ministerial shall not be included in the meaning of such
term for purposes of section 15G(b) (other than paragraph (6)
thereof).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="HBB3E18EEAEEB4AE4AB564AA19486CDD4"><enum>7802.</enum><header>Conforming
amendments</header>
<subsection id="HF495B487FD2D445EAF92A7A6A6B04584"><enum>(a)</enum><header>Securities
Exchange Act of 1934 </header><text>The Securities Exchange Act of 1934 is
amended—</text>
<paragraph id="H01E046A6CAC244219F10369279D20DFA"><enum>(1)</enum><text>in section
15(b)(4)(B)(ii) (15 U.S.C. 78o(b)(4)(B)(ii)), by inserting <quote>municipal
finance adviser,</quote> after <quote>nationally recognized statistical rating
organization,</quote>;</text>
</paragraph><paragraph id="HB70B8CECD01743D4982569D9E31BE005"><enum>(2)</enum><text>in section
15(b)(4)(C) (15 U.S.C. 78o(b)(4)(C)), by inserting <quote>municipal finance
adviser,</quote> after <quote>nationally recognized statistical rating
organization,</quote>; and</text>
</paragraph><paragraph id="HC41F8E9975F04C40ADC3DEEBBA5A8309"><enum>(3)</enum><text>in section
17(a)(1) (15 U.S.C. 78q(a)(1)), by inserting <quote>registered municipal
financial adviser,</quote> after <quote>nationally recognized statistical
rating organization,</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H7F52EF59D73E481791ECC353CEED9D79"><enum>(b)</enum><header>Investment
Company Act of 1940</header><text display-inline="yes-display-inline">The
Investment Company Act of 1940 is amended—</text>
<paragraph commented="no" id="H28C5E955BEA54EE0B82A7730BC4E320C"><enum>(1)</enum><text>in section 2(a)
(15 U.S.C. 80a–2(a)), by inserting at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD45B1E6351F64971BBC3F8C3D5E43512" style="OLC">
<paragraph commented="no" id="HAFCCC5245BA749F49BAB7DA5734E5252"><enum>(54)</enum><text display-inline="yes-display-inline">The term <quote>municipal finance
adviser</quote> has the same meaning as in section 3 of the Securities Exchange
Act of
1934.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HAF8CB481DDB44A339EC9B7E5BCD51F75"><enum>(2)</enum><text>in section 9(a)(1)
(15 U.S.C. 80a–9(a)(1)), by inserting <quote>municipal finance adviser,</quote>
after <quote>credit rating agency,</quote>; and</text>
</paragraph><paragraph commented="no" id="HB628AA45AD374BD6B784426D98E88AD9"><enum>(3)</enum><text>in section 9(a)(2)
(15 U.S.C. 80a–9(a)(2)), by inserting <quote>municipal finance adviser,</quote>
after <quote>credit rating agency,</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HF29C093AAB514D47B6BEC3A7998F8D31"><enum>(c)</enum><header>Investment
Advisers Act of 1940</header><text display-inline="yes-display-inline">The
Investment Advisers Act of 1940 is amended—</text>
<paragraph id="H3E9F336393DF4837B43178B2B4B7EDB1"><enum>(1)</enum><text>in section 202(a)
(15 U.S.C. 80b–2(a)), by inserting at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2854E6FB475F40338A2C0D6716DEE217" style="OLC">
<paragraph commented="no" id="H74AD676CFB334522A25EAB92C4340E7D"><enum>(31)</enum><text display-inline="yes-display-inline">The term <quote>municipal finance
adviser</quote> has the same meaning as in section 3 of the Securities Exchange
Act of 1934.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H8A882CDF37A6478B9D4C194C0EFD54E9"><enum>(2)</enum><text>in section
203(e)(2)(B) (15 U.S.C. 80b–3(e)(2)(B)), by inserting <quote>municipal finance
adviser,</quote> after <quote>credit rating agency,</quote>; and</text>
</paragraph><paragraph commented="no" id="HD04545057C2A40468AFAFFB82C0D0A91"><enum>(3)</enum><text>in section
203(e)(4) (15 U.S.C. 80b–3(e)(4)) is amended by inserting <quote>municipal
finance adviser,</quote> after <quote>credit rating agency,</quote>.</text>
</paragraph></subsection></section><section id="H2662E5F80E674724A3A3848D81757338"><enum>7803.</enum><header>Effective
dates</header>
<subsection id="H88A839242B04403599F1B0CD2E550D0D"><enum>(a)</enum><header>In
general</header><text>The amendments made by this part shall take effect 30
days after the date of the enactment of this subtitle.</text>
</subsection><subsection id="H5A73901FC1E34D7D853D68E5D5F9331E"><enum>(b)</enum><header>Effective date
and requirements for regulations</header><text>Notwithstanding subsection (a),
the Securities and Exchange Commission shall, within 120 days after the date of
the enactment of this subtitle, publish for notice and public comment such
regulations as are initially required to implement this part, and shall take
final action with respect to such regulations not later than 270 days after the
date of enactment of this subtitle.</text>
</subsection><subsection id="HB0DC8272DCB142B497CED7905B3E563E"><enum>(c)</enum><header>Registration
date</header><text>No person may continue to act as a municipal financial
adviser, as such term is defined in section 3(a)(65) of the Securities Exchange
Act of 1934 (as added by this part), after 30 days after the date the
regulations described in subsection (b) become effective unless such person has
been registered as required by the amendment made by section 7701 of this
part.</text>
</subsection></section></part></subtitle><enum>VI</enum><header>Federal Insurance
Office</header>
<section commented="no" id="HD1965BE40DA0499D8BC0BCAEF9D0EACA" section-type="subsequent-section"><enum>8001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Federal Insurance Office Act of
2009</short-title></quote>.</text>
</section><section id="HA1D11D923445426FA6CA7717E7C615B0"><enum>8002.</enum><header>Federal
Insurance Office established</header>
<subsection id="HA5ACD3AA0FDD44B28CDAB0D5E0431E1D"><enum>(a)</enum><header>Establishment of
Office</header><text>Subchapter I of chapter 3 of title 31, United States Code,
is amended—</text>
<paragraph id="HC89037F3F3E449A383A84A8FC3AE76C1"><enum>(1)</enum><text>by transferring
and inserting section 312 after section 313;</text>
</paragraph><paragraph id="H30DEBC90493A455499AB033B3DB357F6"><enum>(2)</enum><text>by redesignating
sections 313 and 312 (as so transferred) as sections 312 and 315, respectively;
and</text>
</paragraph><paragraph id="HE2CCF27EEF7B4830A43D002D44009CB5"><enum>(3)</enum><text>by inserting after
section 312 (as so redesignated) the following new sections:</text>
<quoted-block id="HF7D4973D71594EEAA053B8216A8ACC19" style="OLC">
<section id="H0C46AEEEFE104B8487CE4F4031C169F5"><enum>313.</enum><header>Federal
Insurance Office</header>
<subsection id="HACF7DD0D566F4F4DBB80E79234AFF96F"><enum>(a)</enum><header>Establishment of
Office</header><text>There is established the Federal Insurance Office as an
office in the Department of the Treasury.</text>
</subsection><subsection id="H1E1D8303274B428A9079C90872BF50C8"><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 such Director shall be a career reserved
position in the Senior Executive Service.</text>
</subsection><subsection id="H1874420FAD404B50A1E3E71A9215C1FC"><enum>(c)</enum><header>Functions</header>
<paragraph id="H7A9BC094C6C34F5A9849416BEE975FE4"><enum>(1)</enum><header>Authority
pursuant to direction of Secretary</header><text>The Office shall have the
authority, pursuant to the direction of the Secretary, as follows:</text>
<subparagraph id="H89B8D5D619BF45D0A9EA5EC3D72ACFDF"><enum>(A)</enum><text display-inline="yes-display-inline">To monitor the insurance industry to gain
expertise.</text>
</subparagraph><subparagraph id="H5B3922E284A747A2A60AC2E5D5BD95BC"><enum>(B)</enum><text>To identify 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 commented="no" id="HC808FD80762B425A94E2FFD67EF76CA9"><enum>(C)</enum><text display-inline="yes-display-inline">To recommend to the Financial Services
Oversight Council that it designate an insurer, including its affiliates, as an
entity subject to stricter standards.</text>
</subparagraph><subparagraph id="HB35A0D3B9A6D4BD585D1020070F17A54"><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="HF32A9E4D2E1945A0B2B88E3D9B3FE616"><enum>(E)</enum><text display-inline="yes-display-inline">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 any successor organization and
assisting the Secretary in negotiating covered agreements.</text>
</subparagraph><subparagraph id="H4AE3D194DB1F4EE79F284240FEF65FED"><enum>(F)</enum><text>To determine, in
accordance with subsection (f), whether State insurance measures are preempted
by covered agreements.</text>
</subparagraph><subparagraph id="HDE6D8C1444FD4CD6AAC1E8DFB645CDAF"><enum>(G)</enum><text>To consult with
the States regarding insurance matters of national importance and prudential
insurance matters of international importance.</text>
</subparagraph><subparagraph id="H181E5DE154D64A319F566B62C3A90A64"><enum>(H)</enum><text>To perform such
other related duties and authorities as may be assigned to it by the
Secretary.</text>
</subparagraph></paragraph><paragraph id="H22BC2F6B73DD4CCAB5E46211E1BCCC11"><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></subsection><subsection id="H600C6BD1B7144EE0900393A0357DDA52"><enum>(d)</enum><header>Scope</header><text>The
authority of the Office shall extend to all lines of insurance except health
insurance, as determined by the Secretary based on section 2791 of the Public
Health Service Act (42 U.S.C. 300gg-91).</text>
</subsection><subsection id="HEC5836E7F2EA49E1A3AE5208A43F1D9E"><enum>(e)</enum><header>Gathering of
information</header>
<paragraph id="HE1953C78415F4D289AA10413954D3F7E"><enum>(1)</enum><header>General</header><text>In
carrying out its functions under subsection (c), the Office may request,
receive, and collect data and information on and from the insurance industry
and insurers, enter into information-sharing agreements, analyze and
disseminate data and information, and issue reports regarding all lines of
insurance except health insurance.</text>
</paragraph><paragraph id="HFB9C01A4926F47D09D193FF8A5486729"><enum>(2)</enum><header>Collection of
information from insurers and affiliates</header><text display-inline="yes-display-inline">Except as provided in paragraph (3) and
subject to paragraph (4), the Office may require an insurer, or affiliate of an
insurer, to submit such data or information that the Office may reasonably
require in carrying out its functions under subsection (c). Notwithstanding
subsection (p) and for the purposes of this paragraph only, the term
<quote>insurer</quote> means any entity that is authorized to write insurance
or reinsure risks and issue contracts or policies in one or more States.</text>
</paragraph><paragraph id="HB49B28086ED14353A9B04D5A6A4E6856"><enum>(3)</enum><header>Exception for
small insurers</header><text display-inline="yes-display-inline">Paragraph (2)
shall not apply with respect to any insurer or affiliate thereof that meets a
minimum size threshold that may be established by the Office by order or rule.
Such threshold shall be appropriate to the particular request and need for the
data or information.</text>
</paragraph><paragraph id="H6262F66A28BC45B6AB1BB7B264206767"><enum>(4)</enum><header>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, or 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, or 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="HC7AA3FA59F1F47F99010691B2049D3BE"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="H23AA2FEC2F21402CA6E2F557CDABBE8B"><enum>(A)</enum><text>The submission of
any non-publicly 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="HE239231E293F4A49ACB6A27BA33C35FB"><enum>(B)</enum><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 non-publicly 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="H152483A4A55C474A9625477978BF005B"><enum>(C)</enum><text display-inline="yes-display-inline">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 shall comply with
applicable Federal law and that 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>
</subparagraph><subparagraph id="HB050C89218FD4F36BFF2CBBB7DDD729A"><enum>(D)</enum><text display-inline="yes-display-inline">Section 552 of title 5, United States Code,
shall apply to any data or information submitted by an insurer or affiliate of
an insurer.</text>
</subparagraph></paragraph></subsection><subsection id="H979112985B4A43F199C958C84A864245"><enum>(f)</enum><header>Preemption of
State insurance measures</header>
<paragraph id="H552DEC38146E46E08729239364C18A08"><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="H478CE11D82264F5C8861961A63612AB5"><enum>(A)</enum><text>directly 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, admitted, or otherwise authorized in that
State; and</text>
</subparagraph><subparagraph id="H63240C11BEF04B8989FE395A640204EB"><enum>(B)</enum><text>is inconsistent
with a covered agreement that is entered into on a date after the date of the
enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="H63B30FC98D0E4D298FD0AFAA71351F1A"><enum>(2)</enum><header>Determination</header>
<subparagraph id="H99FA3B5A41754C32B5F871DFBCBFF1DC"><enum>(A)</enum><header>Notice of
potential inconsistency</header><text>Before making any determination of
inconsistency, the Director shall—</text>
<clause id="HC518010FE322431C9651B850FF355FA2"><enum>(i)</enum><text display-inline="yes-display-inline">notify and consult with the appropriate
State regarding any potential inconsistency or preemption;</text>
</clause><clause id="H1890C9361B2C4D95ABF13C90FF8CF998"><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="HBDFA88B16E584D2FAACB91195735906B"><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="H78171F63794B4266B62C44BCC0530420"><enum>(iv)</enum><text>provide
interested parties a reasonable opportunity to submit written comments to the
Office;</text>
</clause><clause id="H18F84EA24CAA4E1A80E9CD2D757BDDAE"><enum>(v)</enum><text display-inline="yes-display-inline">consider the effect of preemption
on—</text>
<subclause id="H29FC43C79A754953A1754C315AC81ECA"><enum>(I)</enum><text>the protection of
policyholders and policy claimants;</text>
</subclause><subclause id="HB0EC6A87691045A4A92C47C316656055"><enum>(II)</enum><text>the maintenance
of the safety, soundness, integrity, and financial responsibility of any entity
involved in the business of insurance or insurance operations;</text>
</subclause><subclause id="H2FD7DDEF28DE43D6B54D6DAC37A4000F"><enum>(III)</enum><text>ensuring the
integrity and stability of the United States financial system; and</text>
</subclause><subclause id="H052362AE0F384B259662688455A5B522"><enum>(IV)</enum><text>the creation of a
gap or void in financial or market conduct regulation of any entity involved in
the business of insurance or insurance operations in the United States;
and</text>
</subclause></clause><clause id="HDBA6BF7B63F1493CB6C79C1F9F0C8AE7"><enum>(vi)</enum><text>consider any
comments received.</text>
</clause><continuation-text continuation-text-level="subparagraph">The
Director shall provide the notifications required under clauses (i), (ii), and
(iii) contemporaneously.</continuation-text></subparagraph><subparagraph id="H6CD4A58146BA4F65862E3F463F40D678"><enum>(B)</enum><header>Scope of
review</header><text display-inline="yes-display-inline">For purposes of this
section, the Director’s determination of State insurance measures shall be
limited to the subject matter of the prudential measures applicable to the
business of insurance contained within the covered agreement involved.</text>
</subparagraph><subparagraph id="H9845525D532048388FE9C00499FC5A60"><enum>(C)</enum><header>Notice of
determination of inconsistency</header><text>Upon making any determination of
inconsistency, the Director shall—</text>
<clause id="HF23D4155F18B4F76A5D34D87DB16466D"><enum>(i)</enum><text>notify the
appropriate State of the determination and the extent of the
inconsistency;</text>
</clause><clause id="HA5403FDF04884332BE69E71AD01E6120"><enum>(ii)</enum><text display-inline="yes-display-inline">establish a reasonable period of time,
which shall not be shorter than 90 days, before the determination shall become
effective; and</text>
</clause><clause id="H9768E04A839D497CBB6B22F7787C8AFB"><enum>(iii)</enum><text>notify the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate of the
inconsistency.</text>
</clause></subparagraph></paragraph><paragraph id="H33D648C6FF9B4A65A5DD017BF1D2816D"><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 the determination of inconsistency still
exists, the determination shall become effective and the Director shall—</text>
<subparagraph id="HDD4F0A4DC33F4234BD0FD407184134B4"><enum>(A)</enum><text>cause to be
published notice in the Federal Register that the preemption has become
effective, as well as the effective date; and</text>
</subparagraph><subparagraph id="H6449676D37E7453C8BBDEF71F2CE7A34"><enum>(B)</enum><text>notify the
appropriate State.</text>
</subparagraph></paragraph><paragraph id="H5376AE9F42C14AA8900727C091392B0D"><enum>(4)</enum><header>Limitation</header><text>No
State may enforce a State insurance measure to the extent that it has been
preempted under this subsection.</text>
</paragraph></subsection><subsection id="H2347F20C0BF94CDAA93A27D01BAADB9D"><enum>(g)</enum><header>Applicability of
Administrative Procedure Act</header><text display-inline="yes-display-inline">Determinations of inconsistency 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="H0C4868364D714592BF5C7A49057CCFC0"><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="H90ED5755A625416A87BA569173DFFA19"><enum>(i)</enum><header>Consultation</header><text>The
Director shall consult with State insurance regulators, individually and
collectively, to the extent the Director determines appropriate, in carrying
out the functions of the Office.</text>
</subsection><subsection id="H3E7AE34BEB064C6E900A4D88F24A9BC2"><enum>(j)</enum><header>Savings
provisions</header><text>Nothing in this section shall—</text>
<paragraph id="H0E8DECEFF3A74D0A8BBBB8E61E6EFF25"><enum>(1)</enum><text>preempt any State
insurance measure that governs any insurer’s rates, premiums, underwriting or
sales practices, or State coverage requirements for insurance, or to the
application of the antitrust laws of any State to the business of
insurance;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H5BC3274755234C72BA8543FA08B60F0F"><enum>(2)</enum><text display-inline="yes-display-inline">preempt any State insurance measure
governing the capital or solvency of an insurer, except to the extent that such
State insurance measure directly results in less favorable treatment of a
non-United States insurer than a United States insurer;</text>
</paragraph><paragraph commented="no" id="H9883E66F8C8F4F94B266D02BE7EB292B"><enum>(3)</enum><text>be construed to
alter, amend, or limit the responsibility of the Consumer Financial Protection
Agency;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H8FACCD92EBBB48689AE6CE8A16D87210"><enum>(4)</enum><text display-inline="yes-display-inline">preempt any State insurance measure because
of inconsistency with any agreement that is not a covered agreement (as such
term in defined in subsection (p)); or</text>
</paragraph><paragraph id="H6FABA42FB95D449AB57F09523CAC87E2"><enum>(5)</enum><text>affect the
preemption of any State insurance measure otherwise inconsistent with and
preempted by Federal law.</text>
</paragraph></subsection><subsection id="H77EBDD8CCE144097997EF765C3755F30"><enum>(k)</enum><header>Retention of
existing State regulatory authority</header><text display-inline="yes-display-inline">Nothing in this section or section 314
shall be construed to establish a general supervisory or regulatory authority
of the Office or the Department of the Treasury over the business of
insurance.</text>
</subsection><subsection display-inline="no-display-inline" id="HA26ED3FE3E544621A3AADA8A3224A1B7"><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 multi-national regulatory committees
and to preempt State measures to affect uniformity with international
regulatory agreements.</text>
</subsection><subsection id="H8782424590684CDE851DCFF4A6F88D63"><enum>(m)</enum><header>Retention of
authority of United States Trade Representative</header><text display-inline="yes-display-inline">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="H797D925E224F4D1FA379EDD5CEBBD96F"><enum>(n)</enum><header>Reports to
Congress</header>
<paragraph id="H6852C70F27064DCDA40915F5556C3818"><enum>(1)</enum><header>Annual
report</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 the insurance industry,
any actions taken by the office pursuant to subsection (f) (regarding
preemption of inconsistent State insurance measures).</text>
</paragraph><paragraph id="H6007051270C24EFB8896FB45EDAD6B0C"><enum>(2)</enum><header>Other
reports</header><text display-inline="yes-display-inline">The Director shall
submit to the President and the Committees referred to in paragraph (1) any
other information or reports as deemed relevant by the Director or as requested
by the Chairman or Ranking Member of any of such Committees.</text>
</paragraph></subsection><subsection id="H3261D5B630974C86884AD28BD245B81B"><enum>(o)</enum><header>Use of existing
resources</header><text>To carry out this section, the Office may employ
personnel, facilities, and other Department of the Treasury resources available
to the Secretary and the Secretary shall dedicate specific personnel to the
Office.</text>
</subsection><subsection id="H124AB97323D1420C8BD9DAE03C6897D6"><enum>(p)</enum><header>Definitions</header><text>For
purposes of this section and section 314, the following definitions shall
apply:</text>
<paragraph id="H80B860EDAA564784971D02DA77EAB37B"><enum>(1)</enum><header>Affiliate</header><text>The
term <quote>affiliate</quote> means, with respect to an insurer, any person
that controls, is controlled by, or is under common control with the
insurer.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HB6ADECA1535341F19A2A35822865799E"><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
recognition agreement that—</text>
<subparagraph id="HBCFD3E4DBA1446B88054F0210FEE24FC"><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="HCF47D6CC9B844F098DE73B85EE6AAC3F"><enum>(B)</enum><text>provides for
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="H386676AE56184F098F384C4CA114E3EB"><enum>(3)</enum><header>Determination of
inconsistency</header><text>The term <quote>determination of
inconsistency</quote> means a determination that a State insurance measure is
preempted under subsection (f).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD59AB0CA7F9D4A69A2100B35E0083F17"><enum>(4)</enum><header>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="H0250D4D792D1423EB92B12D2B58D29EF"><enum>(5)</enum><header>Insurer</header><text>The
term <quote>insurer</quote> means any person engaged in the business of
insurance, including reinsurance.</text>
</paragraph><paragraph id="HFF4A20E067DC4006B1320C1E5EBEC0BF"><enum>(6)</enum><header>Non-united
states insurer</header><text>The term <quote>non-United States insurer</quote>
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="HAB98F7A3D630456286288FCFFDA22F20"><enum>(7)</enum><header>Office</header><text>The
term <quote>Office</quote> means the Federal Insurance Office established by
this section.</text>
</paragraph><paragraph id="HFD0CE6799CA1462991FD557BD9221C07"><enum>(8)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="HFB43615CB6084127958AFD4DB6F1F429"><enum>(9)</enum><header>State</header><text>The
term <quote>State</quote> 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.</text>
</paragraph><paragraph id="H495E194679454E1684CDC96D6F653431"><enum>(10)</enum><header>State insurance
measure</header><text>The term <quote>State insurance measure</quote> 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="HB6DEACF09D6A4761B80938781430CB8D"><enum>(11)</enum><header>State insurance
regulator</header><text>The term <quote>State insurance regulator</quote> means
any State regulatory authority responsible for the supervision of
insurers.</text>
</paragraph><paragraph id="H540E394723214EE886ACC2863A3BA331"><enum>(12)</enum><header>United states
insurer</header><text>The term <quote>United States insurer</quote>
means—</text>
<subparagraph id="H3BCA63CB251A4266BE96F72191834C56"><enum>(A)</enum><text>an insurer that is
organized under the laws of a State; or</text>
</subparagraph><subparagraph id="HDAC3E9C26AC94AE9B3C35BE4A773F03D"><enum>(B)</enum><text>a United States
branch of a non-United States insurer.</text>
</subparagraph></paragraph></subsection><subsection id="HD7B545FB1E144391A2A2553BD6C80F2D"><enum>(q)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated for the
Office such sums as may be necessary for each fiscal year.</text>
</subsection></section><section display-inline="no-display-inline" id="H12BCE20DD6C7481789F2E018067A941B" section-type="subsequent-section"><enum>314.</enum><header>Covered
agreements</header>
<subsection id="H1A47538621FD4725BEE5E4CFE6ECD570"><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 display-inline="no-display-inline" id="H92C34FD0687E44ED940958962DC62858"><enum>(b)</enum><header>Requirements for
consultation with Congress</header>
<paragraph id="HE592E516C1FC46E8A3778F21F86F400A"><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="H24263BFBC7E24239B8B0714FFFC1ADEA"><enum>(2)</enum><header>Scope</header><text>The
consultation described in paragraph (1) shall include consultation with respect
to—</text>
<subparagraph id="HF85FB715230F427E8006D56CCACE975A"><enum>(A)</enum><text>the nature of the
agreement;</text>
</subparagraph><subparagraph id="H771561F4595744098CFC89644B9EEFE1"><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="HB68B805830404440A203E8ECDE32D233"><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="HFF43617185B8417E9654DD1BAE64AF86"><enum>(c)</enum><header>Submission and
layover provisions</header><text display-inline="yes-display-inline">A covered
agreement under subsection (a) may enter into force with respect to the United
States only if—</text>
<paragraph id="H4A4664FFE4814578919640199526E828"><enum>(1)</enum><text display-inline="yes-display-inline">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="HADD4780ADB734233A090CDB336FA7DDA"><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="HE6878F07E8624CF08EEF9A4BD524962C"><enum>(b)</enum><header>Duties of
Secretary</header><text>Section 321(a) of title 31, United States Code, is
amended—</text>
<paragraph id="HABF174FA3B2641B8B9361B6C2A960A52"><enum>(1)</enum><text>in paragraph (7),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HD29E526C5BCE491F863492EB681A087E"><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="H37C0DDFF0A5B43758698C6939E7ADFEA"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H52B7C214714F42F9AE84CF3CA1FE7503" style="OLC">
<paragraph id="HBB3C6877AFBC4A789326D36A86572CAB"><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 display-inline="no-display-inline" id="H58A944C32C32495C9AE3581B1B796DC7"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">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="H114623A3016C4670880CB5DDDF4A6338" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 312. Terrorism and Financial
Intelligence.</toc-entry>
<toc-entry level="section">Sec. 313. Federal Insurance
Office.</toc-entry>
<toc-entry level="section">Sec. 314. Covered agreements.</toc-entry>
<toc-entry level="section">Sec. 315. Continuing in
office.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5521A01770C2493C9E43F58A20F09597"><enum>8003.</enum><header>Report on
global reinsurance market</header><text display-inline="no-display-inline">Not
later than September 30, 2011, the Director of the Federal Insurance Office
appointed under section 313(b) of title 31, United States Code (as amended by
section 8002(a)(3) of this title) 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 describing the breadth and scope of
the global reinsurance market and the critical role such market plays in
supporting insurance in the United States.</text>
</section><section id="H2B1E3B0B719140F2A2B78DF55E1D1F23"><enum>8004.</enum><header>Study on
modernization and improvement of insurance regulation in the United
States</header>
<subsection id="H1BD57887D32442FAAFB23B25599F1CE3"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Director of the Federal Insurance
Office appointed under section 313(b) of title 31, United States Code (as
amended by section 8002(a)(3) of this title) shall conduct a study on how to
modernize and improve the system of insurance regulation in the United States.
Such study shall include consideration of the following:</text>
<paragraph id="H6C23A0F85FB44364B5F8A636711AD581"><enum>(1)</enum><text>Effective systemic
risk regulation with respect to insurance.</text>
</paragraph><paragraph id="H0F6FE1F3F5444446BE9E18F49882C799"><enum>(2)</enum><text>Strong capital
standards and an appropriate match between capital allocation and liabilities
for all risk.</text>
</paragraph><paragraph id="H81737F9D5EC8484E861C3C4608CD1E09"><enum>(3)</enum><text>Meaningful and
consistent consumer protection for insurance products and practices.</text>
</paragraph><paragraph id="H53C5AC8B74BC437284DAD5DEBE8BA117"><enum>(4)</enum><text>Increased national
uniformity through either a Federal charter or effective action by the
States.</text>
</paragraph><paragraph id="HB5E786F26B534684B4A8435A5B05AA86"><enum>(5)</enum><text>Improved and
broadened regulation of insurance companies and affiliates on a consolidated
basis, including affiliates outside of the traditional insurance
business.</text>
</paragraph><paragraph id="HB7F5B626DDE643459FE23F04289D3A0F"><enum>(6)</enum><text>International
coordination.</text>
</paragraph></subsection><subsection id="H208AE9F2EB964F1F8F8B91E1C9177CA7"><enum>(b)</enum><header>Report</header><text>Not
later than one year after the date of the enactment of this Act, 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 a report containing—</text>
<paragraph id="H97F3165C5C6546A3AD2937F2B75CAEBD"><enum>(1)</enum><text>the results of the
study conducted under subsection (a); and</text>
</paragraph><paragraph id="HB15F44EE8CE545E3AC93149A35542225"><enum>(2)</enum><text>any legislative,
administrative, or regulatory recommendations that the Director considers
appropriate to modernize and improve the system of insurance regulation in the
United States.</text>
</paragraph></subsection><subsection id="HFB9509C93A7D4D41A1172574C1F09D54"><enum>(c)</enum><header>Consultation</header><text>In
carrying out subsections (a) and (b), the Director shall consult with State
insurance commissioners, consumer organizations, representatives of the
insurance industry, policyholders, and other persons, as the Director considers
appropriate.</text>
</subsection></section>